Economic Snapshot. Money Market Review. Equity Market Review. Key Economic Indicators. Fund Manager s Report - June 2014 Company s Message

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2 s Report - June 2014 Company s Message During the period under review, the country witnessed a high political drama, an ongoing operation in northern areas and in metropolitan city of the country, an uneven economic recovery, an uncertainty of the upcoming monetary policy and aftershocks of the budget. However the market managed to absorb these shocks and shed merely 85 points during the said month. This market behavior highlighted the importance of not only being invested, but also of taking a balanced approach. We strongly believe that patient, long term investing is the best path to financial success and time and again markets have confirmed the risk to investors of remaining on the sidelines. Those who steadfastly invested in a diversified portfolio were rewarded. Those who were indecisive or tried to time the market missed another opportunity to improve their financial position. Yet market performance remains stubbornly tied to political outcomes. From a global point of view, in recent years, the central bank policy has been a dominant factor in generating asset appreciation and aiding global economic recovery. Today, the impact of monetary policy tools on economic growth is diminishing, portending greater volatility, given the unpredictability of political activity in many parts of the world. As the past month highlighted, political instability remains elevated and investor confidence is likely to be tested further in the coming months. Exacerbating the political crises is the slow pace of economic recovery. The next stage in expanding economic and market growth depends upon the willingness and ability of government to provide leadership. To strengthen markets and, in particular, tackle persistent unemployment, political leaders must look beyond monetary policy and enact fiscal and economic reforms that address the structural challenges to the economy and the investment landscape. The government is yet to act on the most promising opportunities in investment to meet the massive need for infrastructure and the energy revolution. Yet action on this front remains elusive, if not ambiguous. During the month of June, Inflation partially absorbed the impact of food inflation of Ramzan, as June CPI stood at 8.22% with average inflation stood at 8.6%. Next month is crucial as not only CPI will show a full impact of the Ramzan but also lots of street political activity is expected on the roads of Islamabad. On the international front: Political unrest and armed encounters in Ukraine, Syria and Iraq has pushed the prices of Gold to $ 1323 and Oil to $ 104. The conflict will take time and blood to settle. Events unfolding in Iraq over recent weeks have provided an unfriendly and gruesome reminder of the geopolitical risks that investors continually face. With Iraq being the seventh-largest oil producer, oil markets predictably rallied 4% as the gravity of the situation became evident. In addition, concerns of an oil shock to the economy led US and European equity markets to sell off, albeit briefly, and gold markets to rally. We believe it s our responsibility to help investors of all sizes, to succeed in the New World of Investing. We were built to provide the global market insight, breadth of capabilities, unbiased investment advice and deep risk management expertise these times require. Investing with PRIMUS gives you access to every asset class and investment style, as well as extensive market intelligence and risk analysis, to help build the dynamic, diverse portfolios flexible with the changing times. When you invest with PRIMUS, you invest with confidence. We believe in a disciplined and methodical approach to investing. It is the foundation of everything we do and the best way to create long term value for investors. PRIMUS is one of the top mutual fund companies in Pakistan whose strength and credibility have made it one of the most respected financial institutions. We will do our best to reflect all this in positioning the savings and investments you have entrusted to us to manage. We will be emphasizing the importance of economic growth and work very hard to identify opportunities that remain attractive. We will seek to navigate this environment for you by maintaining a higher degree of operational agility and a solid dose of resilience. Thank you for the trust you have placed in us. We value your confidence, and will continue to work diligently to meet your expectations. If you have any query regarding any of your PRIMUS funds investments please contact your account manager at We also invite you to visit our website to learn more about our fund, views and thought leadership. Economic Snapshot Last month of the fiscal year marked itself with heightened political activities including launch of military operation in north Waziristan after militant attack on the Karachi airport and rallies from the PTI and Pakistan Awami Tehreek after the Lahore incident. On the economic front, the budget projections for FY15 remained in the lime light during the month. The total budget outlay revealed by the government is PKR 3.94trn, 10% higher YoY, PSDP allocation has been increased to PKR 525bn, up 24% YoY, fiscal deficit is targeted at 4.9% of the GDP against 5.8% in FY13 and new tax measure of PKR 231bn were introduced. GIDC has also been increased for different sectors, mainly hurting fertilizers, textiles and cements. Apart from that, the government successfully initiated its privatization program and offloaded 19.8% shareholding in UBL and 5% shareholding in PPL with overwhelming response from local and foreign investors. of USD 542mn were raised during the secondary offering of the UBL & PPL. CPI inflation during the month under review was registered at 8.22% as compared to 8.34% in the month of May. On MoM basis, the inflation rose by 0.61%, while cumulative inflation for FY14 stood at 8.62%, higher than government s target of 8%. In addition to soft CPI numbers, external account also performed well in 11MFY14 as external account posted a surplus of USD 5.7bn during that period mainly owing to proceeds from Eurobond issue. Issuance of Eurobond also helped in building foreign exchange reserves of the country, which were recorded at USD 14.26bn in the week ending 20th June 14. Remittances received from oversees Pakistanis registered a growth of 12.37% during the period 11MFY14 and reached USD 14.3bn as compared to 12.75bn in the same period last year. Foreign investments of the country also showed improvement from the last year as FDI increased to USD 1.36bn during 11MFY14 as compared to USD 1.32bn in the corresponding period last year, while net inflow from FIPI increased to USD mn as compared to USD mn in the same period last year. Going forward, the continuation of privatization program of government will further result in higher foreign investment as well as higher foreign exchange reserves and overall economy is expected to perform better with gradual improvements. Money Market Review SBP conducted two auctions during the month. Target of the first auction (12 June) was 250 billion against which SBP accepted PKR 95.6 billion. Cut off for the 3-month, 6-month and 1 year were %, % and 9.99% respectively. Target for the second auction (26 June) was 200 billion against which SBP accepted PKR 43 billion. Cut off for the 3-month, 6-month and 1 year were %, % and 9.99% respectively. SBP also conducted PIB auction on 19 June with a target of PKR 30 billion and accepted amount was 204 billion. Cut off for the 3, 5, and 10 years PIB came at %, % and % respectively. Equity Market Review The KSE-100 index completed another fiscal year with outstanding performance; the index earned a return of 41% (42% in USD terms) in FY14 after posting a return of 52% in FY13 and beating the regional peers by hefty 32%. However, during the month of June, the market remained volatile and closed flat at 29, points, posting a slight decline of 0.3% MoM. The key reasons for heightened volatility during the month were lack of clarity on certain measures announced in the Budget of FY15, political instability and launch of military operation in North Waziristan after a terrorist attack on Jinnah International Airport in Karachi. On a positive note, the government initiated its privatization of State owned organizations where government s remaining 19.8% stake in UBL and 5% shareholding (70mn shares) of PPL were successfully auctioned through secondary offering, where UBL was oversubscribed by 30% and PPL was oversubscribed by almost 100% due to heavy participation of local as well foreign investors. Sector wise performance of the index showed mixed trend. Top performers were multi utilities (8.2% MoM), Autos (7.7% MoM, after the announcement of Yellow cab scheme by Punjab Government worth PKR 25bn), Construction & Materials (5.2% MoM, based on expected increase in dispatches after the initiation of Dasu Dam project), Oil & Gas (3.6% MoM), While under performers include Telecoms (-6.8% MoM, after abolition of ICH), Chemicals (-5.9% MoM, on hike in GIDC) and electricity (-0.1% MoM). Going forward, we expect market activity to remain subdued as trading volumes usually decline in the month of Ramadan. Upcoming privatization of other state owned organizations as well as corporate results may provide positive triggers for the market. Key Economic Indicators Jun-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 External Sector Indicators Overall Balance of Payments USD million (129) 211 (261) 916 1, ,398 n.a Current Account Balance USD million (163) 173 (473) 164 (156) (111) (147) n.a Exports USD million 2,009 2, ,074 2,152 4,197 2,088 n.a Imports USD million 3,174 3, ,136 3,382 3,278 3,591 n.a Worker's Remittances USD million 1,165 1,385 1,246 1,210 1,337 1,216 1,438 n.a Foreign Direct Investment USD million n.a Foreign Portfolio Investment USD million , n.a Forex Reserves USD billion Exchange Rate against PKR USD Month Avg Inflation Indicators General CPI YoY change 5.9% 9.2% 7.9% 7.9% 8.5% 9.2% 8.3% 8.2% Food CPI YoY change 7.9% 9.3% 7.2% 7.6% 9.3% 9.9% 7.4% 7.4% Core (NFNE) YoY change 7.8% 8.2% 8.0% 7.8% 7.6% 8.5% 8.7% 8.7% Core (Trimmed) YoY change 6.8% 8.7% 8.2% 8.1% 8.1% 9.0% 8.3% 7.9% Monetary Growth Broad Money (M2) YoY growth 17.1% 14.4% 13.1% 12.9% 11.9% 12.7% 11.5% 12.3% GoP's Borrowing from SBP YoY growth 29.4% 69.1% 77.1% 64.2% 35.1% 32.2% 7.7% 19.2% Pvt. Sector Credit YoY growth -0.6% 1.9% 3.8% 4.4% 4.0% 5.3% 8.1% 7.9% Interest Rates SBP Policy Rate Current 9.00% Month KIBOR Month Avg. 9.39% 10.15% 10.19% 10.13% 10.18% 10.20% 10.17% 10.17% 12 Month KIBOR Month Avg. 9.68% 10.48% 10.47% 10.43% 10.47% 10.45% 10.44% 10.45% 3 Month T-Bill Yield Month Avg. 9.30% 10.12% 9.97% 9.95% 10.01% 9.97% 9.96% 9.95% 6 Month T-Bill Yield Month Avg. 9.16% 10.15% 9.99% 9.97% % 9.98% 1 12 Month T-Bill Yield Month Avg. 9.16% 10.22% 10.01% 9.99% % 10.05% 10 Year PIB Yield Month Avg % 12.75% 12.81% 12.80% 12.81% 12.81% 12.85% 13.01% n.a.=not Available Source: SBP, MoF, PBS

3 Daily Reserve Fund s Report - June 2014 s Review PDRF generated an annualized return of 8.94% versus the benchmark return of 8.48% for the month of June, an outperformance of 46bps. The fund recorded YTD return of 8.91% compared to its benchmark return of 8.43% (an outperformance of 48bps). The weighted average time to maturity of the portfolio is 53 days. We positioned 50% T-bill portfolio in order to take full advantage of any yield curve movement which attributed in decent mark-to-market gains. Further, the placement with DFIs and Banks constituted 21.66% and 27.99% of net assets respectively, at a premium to policy rate. We intend to maintain exposure in longer duration maturities and take advantage of any movement in the yield curve. The objective of the fund is to generate consistent returns with minimal risk by investing primarily in Government Securities, cash and near cash instruments Placements with Banks 27.68% Placements with DFIs 21.42% M. Ali Kazmi Weighted Average Maturity (days) Sharpe Ratio * Information Ratio Standard Deviation * * Annualized Money Market AA+ by PACRA 50% 3 months PKRV + 3 months average deposit rate of AA & above rated Banks 1st January % 0% (Front-end) 0% (Back-end) Low Risk Islamabad Stock Exchange Deloitte Pakistan Chief Investment Officer 3, % s Placements with DFIs Placements with Banks receivables 0.39% 21.42% 27.68% 49.83% 0.69% Credit Quality of Portfolio (as % of total assets) AAA (Government Securities) 49.83% AAA 0.10% AA % AA 13.14% NR ( receivables) 0.69% *Simple Annualized **Morning Star 0.69% 0.39% Placements with Banks 13.95% 1.27% 23.71% ***Average of reporting period n.a = not applicable 49.83% Placements with DFIs 25.33% 35.74% 23.71% 25.33% 13.95% 35.74% 1.27% 35.74% 20.88% 28.16% 13.95% 1.27% PDRF PDRF* PDRF** *** FYTD FYTD Since Inception 9.52% 9.31% 8.28% 8.91% 8.43% May % 8.89% 8.52% 8.94% 9.31% 8.48% - - * Please note that WWF liability for PRIMUS Daily Reserve Fund till the close of financial year ended June 30, 2013 since inception will be borne by the management company * The scheme has maintained provision against Worker s Welfare Fund s liability to the tune of Rs.8,566,713, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs / 0.29% enhancing the YTD return to 9.20% p.a 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% PDRF Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14

4 PIML Income Fund (PIML-IF) (formerly; PRIMUS Cash Fund PCF) s Report - June 2014 s Review PIML Income Fund generated a return of 9.21% (an improvement of 1766bps over the previous month), against the benchmark return of 9.29% for the month of June, a mere underperformance of 0.08%. The progress in performance was primarily attributed to better yields on the bond portfolio which contributes to around 69% of net assets. At month end, government securities constituted around 94% (T-bills 25.04% & PIBs 68.62% of net asset) compared to 95% holding in May. The portfolio duration of the fund is 519 days. We intend to maintain longer portfolio duration in anticipation of improvement in PKRV spreads between medium to long term government securities, creating an opportunity of capital gains, thus translating into competitive returns. The objective of the fund is to generate consistent returns with minimal risk by investing primarily in Government Securities, cash and near cash instruments Income Scheme M. Ali Kazmi Weighted Average Maturity (days) Sharpe Ratio * Information Ratio Standard Deviation * * Annualized A+ 70% 6 month Kibor & 30% average of 6 month deposit rate of 3 banks rated AA- and above 17th April % 0% (Front-end) 0% (Back-end) Low Risk Karachi Stock Exchange M.Yousuf Adil Saleem & Co. Chartered Accountants Chief Investment Officer 4, % The scheme has maintained provision against Worker s Welfare Fund s liability to the tune of Rs. 10,184,775, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs / 0.24% enhancing the YTD return to 8.48% p.a Placements with Banks 2.50% Placements with DFIs 2.45% PIBs 67.00% 24.45% receivables 3.60% 2.55% 0.29% 69.44% 25.08% 2.64% Credit Quality of Portfolio (as % of total assets) AAA (Government Securities) 91.45% 94.52% AAA 0.28% AA+ 0.01% AA 4.95% 2.55% NR ( receivables) 3.60% 2.64% PIML IF PIML IF* PIML IF** *** FYTD FYTD Since Inception 8.81% 8.49% 9.44% 8.24% 9.46% May % -8.13% 9.30% 9.21% 9.61% 9.29% *Simple Annualized **Morning Star Placements with Banks 2.50% 3.60% 2.45% 24.45% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% Placements with Banks 2.55% 2.64% 0.29% 25.08% ***Average of reporting period n.a = not applicable PIF PIBs 67.00% PIBs 69.44%

5 Strategic Multi Asset Fund s Report - June 2014 s Review The Fund generated a return of -0.68%, compared to its benchmark return of 0.08%. We increased our exposure in equities from 59.06% of net assets to 66.51% of net assets in the outgoing month. The underperformance of the Fund has primarily been due to the looming circular debt, which has negatively affected Oil Marketing Companies and Independent Power Producers. The objective of PIML-SMAF, an open-end balanced scheme, is offering retail and institutional clients a product that aims to maximize return and minimize risk. For this purpose, a balanced portfolio is created that has an optimal mix of equity, debt securities and commodity % 10.88% Equity Securities 61.98% Balanced Fund N/A 23rd August % p.a. 2% (Front-end) 0% (Back-end) Moderate to High Karachi Stock Exchange Deloitte Pakistan M. Samir Malik, CFA M. Ali Kazmi Chief Investment Officer M. Samir Malik, CFA Head of Equity Sharpe Ratio ^^ Standard Deviation *^^ 9.08% Treynor Ratio^^ Beta^^ R-Square**^^^ 50.28% Value at Risk 0.94% 3M PKRV yield used as Risk Free rate. ^^ The look back period is 210 working days (Since inception). * Annualized. **^R Square measures the correlation between the benchmark and the fund KSE 100 index, 3 month PKRV and Daily Closing Pakistan Rupee Spot Gold Prices at the Pakistan Mercantile Exchange Limited (PMEX) based on the weighted average exposure of the scheme to eqquity, debt and gold future contracts during the period under review The scheme has maintained provision against Worker s Welfare Fund s liability to the tune of Rs. 185,117 if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs / 0.16% enhancing the YTD return to 9.43% p.a Equity Securities 61.98% 10.88% PIB 16.17% Others Including Receiveables 10.97% Credit Quality of Portfolio (as % of total assets) AAA (Government Securities) 16.17% AAA 0.01% AA & Above 4.94% AA- 5.93% NR (includes equity investments) 72.96% Since Inception 9.27% 18.80%** May % 1.88%** -0.68% 0.08%** *Absolute Returns **Weighted Average Returns PIB 16.17% PSMAF* 6.00% PSMAF 5.00% 4.00% 2.00% 1.00% -1.00% -2.00% % Sector Allocation (as % of Assets) 56.18% 19.49% 15.89% 8.44% 15.89% 5.03% 0.05% 14.40% 64.62% PSMAF FYTD FYTD 9.27% 18.80% Construction and Materials (Cement) 20.91% 19.39% Oil and Gas 10.12% 11.64% Electricity 9.31% 9.60% Commercial Banks 9.56% 6.67% Non Life Insurance 3.13% Household Goods 0.85% 0.89% Chemicals 2.10% 1.76% Pharma and Bio Tech 1.50% 1.63% Fixed Line Telecommunication 1.27% 1.12% Automobile and Parts 2.89% 0.35% Personal Goods 0.46% 61.98% 56.18% Top 10 Equity Holdings (as % of T.A.) Jun '14 Pakistan State Oil Co. PSO 8.28% D.G. Khan Cement Co. DGKC 6.85% Kot Addu Power Co. KAPCO 4.84% Lafarge Pakistan Cement LPCL 3.93% Lucky Cement LUCK 3.36% Fauji Cement Co. FCCL 3.94% Nishat Chunian Power NCPL 3.11% National Bank of Pakistan NBP 3.06% Adamjee Insurance Co. AICL Maple Leaf Cement Factory MLCF 2.83%

6 Islamic Equity Fund s Report - June 2014 s Review The Fund generated a return of 1.52%, compared to its benchmark return of 1.49%. We increased our exposure in equities from 74.85% of net assets to 85.25% of net assets in the outgoing month. The Fund has increased its exposure to the Construction and Materials sector and maintained its exposure in the Oil and Gas sector. The objective of PIML-IEF is to achieve long term capital growth by investing mainly in Shariah Compliant listed equity securities. 5.08% 16.91% Equity Securities 78.00% Islamic Equity Scheme N/A KMI - 30 Index 4th March % p.a. 2% (Front-end) 0% (Back-end) Moderate to High Karachi Stock Exchange KPMG Taseer Hadi & Co. M. Samir Malik, CFA M. Ali Kazmi Chief Investment Officer M. Samir Malik, CFA Head of Equity Sharpe Ratio ^^ Standard Deviation *^^ 8.62% Treynor Ratio^^ Beta^^ R-Square**^^^ 68.14% Value at Risk 0.90% 3M PKRV yield used as Risk Free rate. ^^ The look back period is 84 working days (Since inception). * Annualized. **^R Square measures the correlation between the benchmark and the fund The scheme has maintained provision against Worker s Welfare Fund s liability to the tune of Rs. 51,536. if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs / 0.05% enhancing the YTD return to 4.63% p.a Shariah Compliant Govt. Securities Equity Securities Others Including Receiveables Credit Quality of Portfolio (as % of total assets) AAA AA NR (includes equity investments) PIML-IEF* Since Inception 4.58% 10.7%** May % 1.93%** 1.52% 1.49%** *Absolute Returns n.a=not applicable 4.00% 3.50% 2.50% 2.00% 1.50% 1.00% 0.50% PIEF Sector Allocation (as % of Assets) 78.00% 16.91% 5.08% 0.01% 16.90% 83.09% March April May June 72.35% 22.37% 5.29% 22.18% 0.19% 77.63% PIML-IEF FYTD FYTD 4.58% 10.7% Oil and Gas 31.79% 32.21% Construction and Materials (Cement) 29.62% 25.62% Personal Goods (Textile) 3.32% 3.33% Automobile and Parts 2.78% 2.16% Fixed Line Telecommunication 2.16% 2.30% Pharma and Bio Tech 1.55% 1.71% Electricity 5.48% 5.01% Chemicals 0.57% Commercial Banks 0.73% 78.00% 72.35% Top 10 Equity Holdings (as % of T.A.) June '14 Lucky Cement LUCK 11.12% Pakistan State Oil Co. PSO 10.54% Oil & Gas Development Co. OGDC 7.30% Pakistan Oilfields POL 7.30% Pakistan Petroleum PPL 6.65% D.G. Khan Cement Co. DGKC 5.22% Fauji Cement Co. FCCL 4.07% Lafarge Pakistan Cement LPCL 4.06% Maple Leaf Cement Factory MLCF 5.09% Kot Addu Power Co. KAPCO 3.50%

7 Islamic Money Market Fund s Report - June 2014 s Review PIML Islamic Money Market Fund posted an annualized return of 2.66% versus the benchmark return of 6.39% for the month of June. We intend to allocate the portfolio optimally; however, the fund is well placed with liquidity to cash in any opportunities that may arise in Shariah complaint securities/instruments. The weighted average time to maturity of the portfolio is 01 day. The objective of PIML-IMMF is to seek high liquidity, competitive return and maximum possible preservation of the capital for investors by investing in low risk Shariah Compliant securities. M. Ali Kazmi Weighted Average Maturity (days) Sharpe Ratio * Information Ratio Standard Deviation * * Annualized Islamic Money Market Scheme N/A 3 month deposit rate of three AA and above rated Islamic Banks 4th March % 2% (Front-end) 0% (Back-end) Low Risk Islamabad Stock Exchange KPMG Taseer Hadi & Co Chief Investment Officer % Sukuk GOP Ijara Sukuk - Govt. Backed receivables Credit Quality of Portfolio (as % of total assets) AAA (Government Securities) AAA AA+ AA NR ( receivables) Since Inception 5.46% 5.57% 6.49% 5.46% 6.49% May % 1.86% 6.39% 2.66% 2.70% 6.39% *Simple Annualized **Morning Star 4.65% PIML IMMF* PIML IMMF** ***Average of reporting period n.a = not applicable 97.00% 95.35% 97.00% 96.99% 0.01% PIML-IMMF *** FYTD 95.35% 4.65% 95.31% 0.04% 4.65% FYTD The scheme has maintained provision against Worker s Welfare Fund s liability to the tune of Rs. 41,175, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs / 0.11% enhancing the YTD return to 5.58% p.a 12.00% % 6.00% IMMF 4.00% 2.00% Mar-14 Apr-14 May-14

8 Contact Details Sonam Peswani Nadeem A. Khan Shafiq ur Rehman Bhatti Head of Marketing, SMAs & Investor Services Manager Investor Services Regional Head Corporate Sales Asif Ahmed Siddiqui Regional Head Corporate Sales