JANUARY 2017 LAKSON GROUP ONLINE www.li.com.pk info@li.com.pk TELEPHONE + 92 21 3569 8000 UAN: +92 21 111 Lakson F: +92 21 3568 1653 ADDRESS Lakson Investments Limited. Lakson Square, Building No. 2, Sarwar Shaheed Road, Karachi-74200, Pakistan
CONTENTS 04 Economic & Markets Review 06 FMR Lakson Money Market Fund 07 FMR Lakson Income Fund 08 FMR Lakson Equity Fund 09 FMR Lakson Tactical Fund 10 FMR Lakson Islamic Tactical Fund 11 FMR Lakson Asset Allocation Developed Markets Fund 13 Funds Return History 14 Mutual Funds Performance Comparison 17 Markets Information
4 Economic & Markets Review PAKISTAN Economy CPI during Jan'17 clocked in at 3.7% Year-on-Year, flattish compared to 3.7% in Dec'16. On a month-on-month basis, CPI was up by 0.2% in Jan'17 compared to a decrease of 0.70% during Dec'16, backed by seasonal decline in food prices (down 0.85%MoM). Core Inflation has inched up to 5.4% in Jan'17. Inflationary expectations are on the rise, with further impetus likely from recovery in international commodity prices and as the low base effect normalizes. Other macro indicators also improved, where Large-scale manufacturing (LSM) increased by 3.2% YoY in Nov'16, major contributors were Iron and Steel (14.5%) and Electronics (14.5%). Private sector credit off-take continues to accelerate (up 13.5% YoY in Dec'16 vs. 7.0% in Dec'15) with impetus from Construction (+26% YoY), Textiles (+12% YoY) and Food (+15% YoY) sectors. Higher net FDI inflows of USD 594.7 mn in Dec'16 also took the cumulative FDI for 1HFY17 to USD 1,080 mn, up 10.4% compared to USD 979 mn in H1FY16. The higher inflow in Dec'16 was due to the 51% acquisition of Engro Foods by the Netherlandsbased Friesland Campina valued at USD 462 mn. The current account deficit swelled by 91% YoY to USD 3,600 mn in H1FY17 against USD 1,700 mn in the comparable period last year, led primarily by slowdown in remittances, sluggish exports and rise in machinery imports. Fixed Income Review SBP kept interest rates unchanged at 5.75%/6.25% in the Jan'17 MPS, where nascent external a/c concerns (H1FY17 CA deficit: 2.2% of GDP vs. 1.3% in H1FY16) appeared to take precedence over soft inflation (H1FY17 CPI: 3.9% YoY). GoP raised PKR 535 bn through the T-Bill auctions in Jan'17, against target of PKR 450 bn. Major participation was seen in 6M T-Bills (PKR 274 bn) followed by that in 3M (PKR 150 bn). Cut off yields for 3M, 6M and 12M T-Bills fell by 4bps, 6bps, and 3bps to 5.90%, 5.93%, and 5.96%, respectively. Meanwhile, in the PIB auction held on Jan 25th, SBP accepted bids worth PKR 39.4 bn, against target of PKR 50 bn. Cut off yields for 3yr and 5yr PIBs rose by 21bps and 20bps, respectively, to 6.41% and 6.90%. Equities Review The KSE 30 continued its upward momentum and rose by 1.75% in January. Key catalysts were the divestment of 40% stake of the Pakistan Stock Exchange in the previous month, expectation of a low interest rate environment in the near future and announcements of new projects by blue chips such as HUBC. Average volumes in the market increased by 65% to 127 mn shares per day and average daily traded value increased by 24% to USD 108 mn per day. Foreigners (- USD 110 mn) and banks (- USD 40 mn) were major sellers during the month which was absorbed effectively by Mutual funds (+ USD 44 mn) and Individuals (+ USD 39 mn). Support Services (+22.2%) was the best performing sector followed by utilities (+21.6%) and House hold Goods (+18.3%). Among the major sectors Power Generation (+9.8%), Auto (+9.1%) and Chemicals (+6.5%) performed the best. Power Generation was led by HUBC which rallied after the company initiated new projects. Chemicals rallied on the back of subsidies and allowance of export of urea. The worst performing major sectors were Oil & Gas (-2.8%) and banks (-1.8%) as oil prices did not rise as expected due to rising inventory levels in the U.S. Yield Curve 11.5% 10.5% 9.5% 8.5% 7.5% 6.5% 5.5% 1W 2M 6M 2Y 5Y 8Y 15Y 30-Dec-16 30-Jan-17 USD/PKR vs. Forex Reserves 106.0 Forex Res. (USD bn.) - RHS USD/PKR 24.0 23.0 105.0 22.0 21.0 104.0 20.0 19.0 103.0 18.0 3-Jan 10-Jan 17-Jan 24-Jan 31-Jan Market Rates 6.10% 6.05% 6.00% 5.95% 5.90% 5.85% 5.80% 3-Jan 12-Jan 21-Jan 30-Jan 6M KIBOR O/N Repo Rate 6M T-Bill The KSE 30's trailing 12 months (TTM) PE ratio is 12.3x and continues to trade at a substantial discount to regional markets such as China's Shanghai Composite Index and India's Sensex Index which are trading at 18.2x and 20.6x respectively. CPI during Jan'17 clocked in at 3.7% Year-on-Year, flattish compared to 3.7% in Dec'16.
Economic & Markets Review INTERNATIONAL 5 Developed Markets The transition to a new administration slowed the rally in US equities, witnessed since the elections in November, as investors became wary of the protectionism plans, worsening relations with allies and public protests in the country. The jitters in the US also spread to other equity markets in the developed world. France saw a drastic change in its equity market performance (CAC Index was up 6.2% in December, down 2.3% in January) as its elections, scheduled for April, approached. These elections are expected to be significant for not only France but also the rest of the EU, as one of the candidates in the running is Euro-skeptic. On the fixed income side, 5-year bond yields increased across a majority of developed markets as it appeared increasingly likely that disinflation would subside given the rise in international crude oil prices towards the end of last year. Performance of Equities and Commodities 140% MSCI World Index MSCI EM Index DB Commodity Index 120% 100% 80% 60% Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Emerging markets Emerging equity markets outperformed developed markets in January, with the MSCI EM index up by 5.5%, while the MSCI EAFE Index (developed markets excluding US and Canada) rose by less than 3%. Latin American markets performed particularly well with Argentina up 12.7% and Brazil up 7.4%. Mexico too was up 3% in January (as opposed to flat in December and down 5.6% in November) even as tensions between Mexico and the new US President flared, and as NAFTA negotiations approached (possibly in May). Similarly, Chinese equity markets were up by 1.8% in January (as opposed to 4.5% in December) even as relations with its biggest trade partner, USA, soured. The outperformance of emerging markets is partly attributable to their previous dip which had made them relatively undervalued. As the Dollar index slipped by almost 2%, emerging market currencies mostly strengthened, especially Brazilian Lira. As for fixed income, movement in yields was mostly mixed as India, Malaysia, Turkey, Russia, and South Africa saw small dip in their 5-year bond yields, while others saw a small rise. Valuation of International Markets 24 20 16 12 8 4 - DM US UK Japan Canada EM Brazil Russia India China P/E Multiple Commodities Market Review Oil prices dipped in January as heightened exploration activities in USA and Canada triggered fears that greater production from the American region will undermine OPEC and non-opec production cuts. Arab Light Crude prices declined by 4.5% during the month to USD 52.33/bbl, while WTI Crude prices dipped by 3.4% and Brent Crude prices fell by 3.3%. Despite the drop in crude oil prices, certain petrochemicals continued to gain, particularly both PTA and Paraxylene. Moreover, Urea prices continued to move up, despite them having been historically positively correlated to oil prices because the chief raw material for Urea in the Middle East is natural gas. The continued upwards movement in parts of the petrochemical chain and Urea is attributable to lagged effect, and there are chances their prices too will stabilize following stability in the international crude oil market. WTI Crude prices dipped by 3.4% and Brent Crude prices fell by 3.3%.
6 LAKSON MONEY MARKET FUND MUFAP s Recommended Format Investment Objective The investment objective of the Lakson Money Market Fund is to provide stable and competitive returns in line with the money markets, exhibiting low volatility consistent with capital preservation by constructing a liquid portfolio of low risk short term investments. Performance Review The Lakson Money Market Fund generated an annualized return of 17.01% against the benchmark return of 5.26% in January 2017. During FY17TD the Fund has returned 7.12% to unit holders against the benchmark of 5.14% and outperformed by 1.98%. Asset allocation changed with Cash at 12% while placement and T bill exposure were at 10% and 99% respectively 79% respectively. As a result portfolio WAM was calculated at 33 days. Going forward the Fund will focus on increasing exposure to attractive deposits in order to generate returns and mitigate interest rate risk. The fund had reversed the provision for WWF and maintained the Total Expense Ratio (TER) Placements with Banks & DFIs T-Bills Cash Asset Allocation Instruments (% of total Assets) provision for SWWF according to the decision made by MUFAP Dated Jan 12, 2017. SWWF Disclosure As of January 31st, 2017 the LMMF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 6.80 million. If the same were not made the NAV per unit of the LMMF would be higher by PKR 0.1433. If the LMMF would not have made the SWWF provisions during FY17, the year to date annualized return of the LMMF for FY17 would be higher by 0.14%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LMMF. 1.01% (This is inclusive of 0.27% representing Government levies and SECP Fees) YTD 0.59% (This is inclusive of 0.16% representing Government levies and SECP Fees) 12% Govt Sec AA+ AA Instruments Nov-16 Dec-16 Jan-17 WAM* days Placements with Banks & DFIs 19% 10% 10% 14 PIBs 0% 0% 0% 0 T Bills 71% 0% 78% 40 Cash 10% 73% 12% 0 Others including receivables 0% 18% 0% Non Compliant Investments Name on investment Type of instrument Value of investment before provisioning Total provision held Value of investment after provisioning % of total assets 10% Asset Allocation 78% Disclosures Leverage as on January 31st, 2017 Non Performing Assets WAM of Portfolio 33 Days Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved. Tha Lakson Money Market Fund holds certain non-complaint investments. Before making any investment decision investors should review this document and the latest financial statements. 11% 10% Credit Split 78% FUND FACTS Fund Type Category Net Assets (PKR Mil.) NAV (31.01.2017) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark* Dealing Days Cut-Off Time Fund Rating Risk Profile Asset Manager Rating FY17 - YTD January-17 2 Months 3 Months 6 Months 12 Months CY17 - YTD Open-End Money Market Fund 4,953 104.3459 Previous Day CDC Pakistan Limited BDO Ebrahim & Co. 10% of Gross Earnings subject to a minimum of 0.50% and maximum of 1.00% of the average annual net assets. Current - 0.65% None None November 13, 2009 70% average 3 months PKRV rates + 30% average 3 months deposit rate of three AA rated banks Mon-Fri 4:00 PM 'AA' by PACRA (31.12.2015) Low Risk AM2 by PACRA (08.06.2016) PERFORMANCE Morningstar LMMF Benchmark Simple Annualized LMMF Benchmark FY17 - YTD 7.12% 5.14% January-17 17.01% 5.26% 2 Months 11.41% 5.29% 3 Months 9.39% 5.26% 6 Months 7.38% 5.10% 12 Months 6.58% 5.27% CY17 - YTD 17.01% 5.26% 3 Years 7.85% 7.41% 5 Years 9.20% 9.09% Since Inception 11.90% 11.84% *The benchmark of the Fund was changed in February 2014 and September 2016. LMMF vs. Benchmark 118 117 116 115 114 113 112 111 110 109 108 107 106 105 104 103 102 101 100 7.23% 5.20% 18.40% 5.38% 11.96% 5.41% 9.72% 5.37% 7.52% 5.16% 6.58% 5.27% 18.40% 5.38% Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16 Benchmark LMMF INVESTMENT COMMITTEE Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA
LAKSON INCOME FUND 7 MUFAP s Recommended Format Investment Objective The investment objective of the Lakson Income Fund is to provide competitive total return through investment in a diversified portfolio of fixed income securities. Investments will be made in a variegated mix of short term, medium term and longer term maturities depending on the assessment by the Investment Team of interest rate trends and prospective returns. Performance Review In January 2017, LIF generated an annualized return of 7.76% against the benchmark return of 6.12%. Over FY17TD the LIF has generated a return of 5.87%. Asset allocation changed with placements at 22%, cash exposure decreased to 45% while MTS exposure increased to 16%. This resulted in a portfolio WAM of 307 days. Going forward the Fund will concentrate on building exposure to high quality corporate debt and bank placements. The fund had reversed the provision for WWF and maintained the provision for SWWF according to the decision made by MUFAP Dated Jan 12, 2017. Total Expense Ratio (TER) Asset Allocation Instruments (% of total Assets) SWWF Disclosure As of January 31st, 2017 the LIF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 6.28 million. If the same were not made the NAV per unit of the LIF would be higher by PKR 0.1906. If the LIF would not have made the SWWF provisions during FY17, the year to date annualized return of the LIF for FY17 would be higher by 0.18%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LIF. 2.08% (This is inclusive of 0.42% representing Government levies and SECP Fees) YTD 1.22% (This is inclusive of 0.23% representing Government levies and SECP Fees) 45% Instruments Nov-16 Dec-16 Jan-17 WAM* days Placements with Banks & DFIs 26% 22% 22% 21 PIBs 4% 4% 4% 114 T Bills 0% 0% 1% 0 TFCs 8% 8% 8% 142 Sukuks 3% 4% 4% 16 MTS 0% 0% 16% 0 Cash 58% 62% 45% 0 Others including receivables 1% 0% 0% * Weighted Average Maturity TFCs/Sukuk Portfolio Name of Issue Rating % of Total the Issuer Date Assets PEL SUKUK NRSP Habib Bank Limited I Bank Al Falah Limited V Askari Bank Limited IV K-Electric AZM Sukuk III Asset Allocation 16% 22% 25-Aug-16 30-Jun-16 19-Feb-16 20-Feb-13 23-Dec-11 24-Feb-14 4% 1% 4% 8% A A AAA AA- AA- AA Placements with Banks & DFIs PIB T-Bills TFC Sukuk MTS Cash 2.33% 2.16% 2.13% 1.91% 1.63% 1.20% Disclosures Leverage as on January 31st, 2017 Non Performing Assets WAM of Portfolio 307 Days Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved. 25% 6% 16% Gov Sec 1% AAA AA+ Credit Split AA AA- 44% A Unrated 2% 6% FUND FACTS Fund Type Category Net Assets (PKR Mil.) NAV (31.01.2017) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark* Dealing Days Cut-Off Time Fund Rating Risk Profile Asset Manager Rating Open-End Income Fund 3,445 104.6352 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 1.50% 1.50% None November 13, 2009 Average daily rate of 6M KIBOR (Ask) Mon-Fri 4:00 PM 'A+' by PACRA (31.12.2015) Medium Risk AM2 by PACRA (8.06.2016) PERFORMANCE Morningstar LIF Benchmark FY17 - YTD 5.94% 5.95% January-17 8.04% 6.29% 2 Months 6.71% 6.49% 3 Months 6.56% 6.23% 6 Months 5.96% 5.78% 12 Months 6.51% 6.38% CY17 - YTD 8.04% 6.29% Simple Annualized LIF Benchmark FY17 - YTD January-17 2 Months 3 Months 6 Months 12 Months CY17 - YTD 3 Years 5 Years Since Inception 5.87% 5.88% 7.76% 6.12% 6.53% 6.13% 6.41% 6.09% 5.88% 5.70% 6.51% 6.38% 7.76% 6.12% 10.90% 11.87% 11.68% 11.93% 14.19% 11.96% *The benchmark of the Fund was changed in September 2016 LIF vs. Benchmark 128 126 124 122 120 118 116 114 112 110 108 106 104 102 100 Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16 Benchmark INVESTMENT COMMITTEE Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA LIF
8 LAKSON EQUITY FUND MUFAP s Recommended Format Investment Objective The investment objective of the Lakson Equity Fund is to provide long term capital appreciation by investing mainly in equity and related listed securities. Investments will be made in companies of substance, financial strength and demonstrably superior management skills with some exposure given to smaller capitalized value stocks. Performance Review LEF had a difficult start to the CY17, when WWF liability implications negatively affected the NAV. Jan MTD return was slightly lower than the benchmark at 1.71% vs. 1.75% of the benchmark. FYTD return clocked in at 27.55% vs. 24.96% of the benchmark, 260bps outperformance. The fund maintained a high exposure at 92% (with new cap of 95% as per regulations), focusing on Oil, Banking and Construction. Proceeds from Chemicals were redirected into Power generation. The fund had reversed the provision for WWF and Total Expense Ratio (TER) maintained the provision for SWWF according to the decision made by MUFAP Dated Jan 12, 2017. SWWF Disclosure As of January 31st, 2017 the LEF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 38.89 million. If the same were not made the NAV per unit of the LEF would be higher by PKR 1.2474. If the LEF would not have made the SWWF provisions during FY17, the year to date return of the LEF for FY17 would be higher by 0.86%. For details investors are advised to read the latest Financial Statements of the LEF. 3.85% (This is inclusive of 1.47% representing Government levies and SECP Fees) YTD 2.27% (This is inclusive of 0.87% representing Government levies and SECP Fees) Top 10 Holdings Oil & Gas Development Co 6.39% Habib Bank Limited 5.75% United Bank Limited 5.68% Pakistan State Oil Limited 5.59% Nishat Mills Limited 5.25% MCB Bank Limited 3.78% Indus Motor Co Limited 3.61% DG Khan Cement Limited 3.57% Pak Petroleum Limited 3.25% Engro Corporation Limited 3.18% Sectorwise Exposure Dec-16 Jan-17 Chemicals* 9.76% 9.33% Comm Banks 24.33% 23.03% Const. & Mat. 11.97% 11.77% Electricity 4.81% 5.19% Oil & Gas Exp 14.72% 14.70% Oil & Gas Mktg 5.27% 5.85% Others 21.78% 21.94% *Includes fertilizers FUND FACTS Fund Type Category Net Assets (PKR Mil.) NAV (31.01.2017) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark* Dealing Days Cut-Off Time Risk Profile Asset Manager Rating PERFORMANCE FY17 - YTD January-17 2 Months 3 Months 6 Months 12 Months CY17- YTD 3 Year 5 Year Since Inception Open-End Equity Fund 4,547 145.8289 Forward Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 2.00% 3.00% None November 13, 2009 KSE-30 Index (Total Return Index) Mon-Fri 4:00 PM High Risk AM2 by PACRA (8.06.2016) LEF Benchmark 27.55% 24.96% 1.71% 1.75% 13.30% 15.97% 19.55% 21.58% 20.68% 18.97% 46.55% 48.83% 1.71% 1.75% 83.63% 40.21% 258.47% 141.22% 324.78% 182.95% *The benchmark of the Fund was changed in September 2016. 8% Asset Allocation 92% Asset Allocation (% of Total Assets) Nov-16 Dec-16 Jan-17 Equities 85% 93% 92% T-Bills 0% 0% 0% Cash 13% 7% 8% Others 2% 0% 0% Disclosures Leverage as on January 31st, 2017 Non Performing Assets Equity Cash Sector wise Exposure Chemicals Comm Banks Const. & Mat Electricity Oil & Gas Exp Oil & Gas Mktg Others Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved. 6% 22% 15% 5% 9% 12% 23% Pakistan vs. Global Markets Country Index 1M P/E Div. Ret. Yield Pakistan KSE-100 1.99% 12.60 4.49 India Malaysia Dubai USA USA BSE Sensex 30 FTSE KLCI DFM General DJIA S&P 500 3.87% 20.65 1.54 1.82% 16.86 3.14 3.17% 11.52 3.89 0.51% 18.33 2.41 1.79% 21.03 2.05 LEF vs. Benchmark 600 500 400 300 200 100 0 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 LEF KSE-100 KSE-30 INVESTMENT COMMITTEE Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA
Lakson Tactical Fund (Formerly: Lakson Asset Allocation Global Commodities Fund) 9 MUFAP s Recommended Format Investment Objective The investment objective of the Lakson Tactical Fund (Formerly: Lakson Asset Allocation Global Commodities Fund) is to provide long-term capital appreciation by investing in a mix of securities comprising debt, equity and commodities future contracts. Performance Review During the month of January 2017 the Lakson Tactical Fund generated an absolute return of 0.81% against the benchmark return of 0.98%. The Fund underperformed the benchmark by 0.17%. Allocation was focused between Equities (41%), Placements (22%) Cash (28%),TFCs/Sukuks (4%) and PIBs (4%). Going forward the Fund will look to minimize interest rate risk while maintaining a healthy exposure to equities. The fund had reversed the provision for WWF and maintained the provision for SWWF according to the decision made by MUFAP Dated Jan 12, 2017. Total Expense Ratio (TER) Disclosures Leverage as on January 31st, 2017 Non Performing Assets SWWF Disclosure As of January 31st, 2017 the LTF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 4.92 million. If the same were not made the NAV per unit of the LTF would be higher by PKR 0.3896. If the LTF would not have made the SWWF provisions during FY17, the year to date return of the LTF for FY17 would be higher by 0.33%. For details investors are advised to read the latest Financial Statements of the LTF. 2.62% (This is inclusive of 0.82% representing Government levies and SECP Fees) YTD 1.54% (This is inclusive of 0.49% representing Government levies and SECP Fees) Asset Allocation (% of Total Assets) Placements with Banks Top 10 Equity Holdings (%age of total assets) Securities Nov-16 Dec-16 Jan-17 & DFIs 26% 19% 22% T bills 0% 0% 0% PIBs 4% 3% 4% TFC/Sukuks 4% 4% 4% Equity 41% 34% 41% Cash 24% 39% 28% Others 2% 1% 1% Jan-17 Weight Oil & Gas Dev. 2.33% Habib Bank 2.31% United Bank 2.16% Nishat Mills 1.90% P.S.O. 1.89% D.G.K. Cement 1.51% MCB Bank 1.50% Engro Corp. 1.34% Indus Motor Co. 1.31% Lucky Cement 1.30% Sectorwise Exposure Dec-16 Jan-17 Comm. Bank 9.74% 8.65% Const. and Mat. 8.19% 6.72% Oil & Gas Exp 5.74% 5.26% Chemicals* 4.84% 3.50% Textile 3.17% 2.37% Oil & Gas Mktg 2.19% 1.89% Electricity 2.39% 1.83% Others 4.32% 3.65% *Includes fertilizers Placement with Banks & DFIs PIBs TFC Equity Cash Others The significant change in the performance of the fund is reflective of the change in the Investment objectives and thereby a change in its investment policies on the conversion of the Fund w.e.f April 19, 2016. The returns and the benchmark before April 19, 2016 were computed on the basis of investment objectives and policies before conversion and therefore do not offer a comparison This is being reported for the Investor information only Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved. 28% 1% Asset Allocation 41% 22% 4% 4% FUND FACTS Fund Type Category Net Assets (PKR Mil.) NAV (31.01.2017) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark* Dealing Days Cut-Off Time Risk Profile Asset Manager Rating PERFORMANCE FY17 - YTD January-17 2 Months 3 Months 6 Months 12 Months CY17-YTD 3 Years 5 Years Since Inception Open-End Asset Allocation Fund 1,469 116.3599 Forward Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 10% of the gross earnings of the Scheme, calculated on a daily basis. The fee is subject to a minimum of 1% and maximum of 2% of the average annual net assets of the Scheme. Current - 1.29% 2.50% None October 11, 2011 Weighted average daily return of KSE- 30 Index, 6M KIBOR and the DBIQ Optimum Yield Diversified Commodity Index Excess Return based on the Scheme's actual proportion in the equity, debt securities and commodities Mon-Fri 4:00 PM Medium Risk AM2 by PACRA (08.06.2016) LTF Benchmark 13.38% 11.65% 0.81% 0.98% 6.23% 6.57% 9.58% 9.11% 10.78% 9.39% 7.62% 17.52% 0.81% 0.98% 32.08% 16.61% 46.25% 32.08% 50.54% 38.05% *The benchmark of the Fund was changed in September 2016. LTF vs. Benchmark 159.00 149.00 139.00 129.00 119.00 109.00 99.00 Aug-12 Jan-13 Jun-13 Nov-13 Apr-14 Sep-14 Feb-15 Jul-15 Dec-15 May-16 Oct-16 Benchmark INVESTMENT COMMITTEE Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA LTF
10 Lakson ISLAMIC Tactical Fund (Formerly: Lakson Asset Allocation Emerging Markets Fund) MUFAP s Recommended Format Investment Objective The investment objective of the Lakson Islamice Tcatical Fund (Formerly: Lakson Asset Allocation Emerging Markets Fund) is to provide long- term capital appreciation by exclusively investing in Shariah Complaint avenues including equities, fixed income instruments and emerging market securities. Performance Review During the month of January 2017 the Lakson Islamic Tactical Fund generated an absolute return of 0.13% against the benchmark return of 0.87%. The Fund underperformed the benchmark by 0.74%. Fund exposure is incash (61%) and Equities (36%). A build up in Shariah compliant equities and fixed income instruments will be targeted over 2HFY17. The fund had reversed the provision for WWF and maintained the provision for SWWF according to the decision made by MUFAP Dated Jan 12, 2017. Total Expense Ratio (TER) Disclosures Leverage as on January 31st, 2017 Non Performing Assets SWWF Disclosure As of January 31st, 2017 the LITF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 0.203 million. If the same were not made the NAV per unit of the LAAEMF would be higher by PKR 0.1419. If the LITF would not have made the SWWF provisions during FY17, the year to date return of the LITF for FY17 would be higher by 0.13%. For details investors are advised to read the latest Financial Statements of the LITF. 3.87% (This is inclusive of 0.71% representing Government levies and SECP Fees) YTD 2.28% (This is inclusive of 0.42% representing Government levies and SECP Fees) 61% 3% Asset Allocation Top 10 Equity Holdings (%age of total assets) Securities 36% Equities Cash Others Jan-17 Weight Oil & Gas Dev. 3.81% P.S.O. 3.55% Nishat Mills Ltd. 3.43% Indus Motor Co. 2.28% Lucky Cement 2.26% Pak Petroleum 2.06% Engro Corp. 1.94% D.G.K.Cement 1.85% K-Electric Ltd. 1.77% Pak Oilfields 1.74% Asset Allocation (% of Total Assets) Nov-16 Dec-16 Jan-17 Equities 34% 20% 36% Cash 62% 77% 61% Others 5% 3% 3% Sectorwise Exposure Dec-16 Jan-17 Oil & Gas Exp 3.48% 8.90% Const. and Mat. 6.35% 7.59% Chemicals* 3.48% 4.81% Oil & Gas Mar. 0.00% 3.79% Textiles 2.13% 3.43% Electricity 1.69% 2.68% Others 2.78% 5.20% *Includes fertilizers The change in the performance of the fund is reflective of the change in the Investment objectives and thereby a change in its investment policies on the conversion of the Fund from a conventional asset allocation fund to a Shariah Compliant Asset Allocation Fund w.e.f September 21, 2016. The returns and the benchmark before September 21, 2016 were computed on the basis of investment objectives and policies before conversion and therefore do not offer a comparison. This is being reported for the Investor information only Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved. FUND FACTS Fund Type Category Net Assets (PKR Mil.) NAV (31.01.2017) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark* Dealing Days Cut-Off Time Risk Profile Asset Manager Rating PERFORMANCE FY17 - YTD January-17 2 Months 3 Months 6 Months 12 Months CY17-YTD 3 Years 5 Years Since Inception Open-End Shariah Compliant Asset Allocation Fund 152 106.6802 Forward Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 10% of the gross earnings of the Scheme, calculated on a daily basis. The fee is subject to a minimum of 1% and maximum of 2% of the average annual net assets of the Scheme. Current - 1.28% 2.50% None October 11, 2011 Weighted average daily return of KMI- 30 Index, 6M deposit rates of three A rated Islamic Banks or Islamic windows of Conventional Banks and MSCI Emerging Markets Islamic Index based on the Scheme's actual proportion in the equity, debt and emerging market securities Mon-Fri 4:00 PM Medium Risk AM2 by PACRA (08.06.2016) LITF Benchmark 7.01% 10.63% 0.13% 0.87% 4.33% 5.00% 6.83% 7.67% 6.71% 9.04% 8.85% 15.31% 0.13% 0.87% 21.09% 18.79% 35.85% 37.19% 39.80% 47.81% *The benchmark of the Fund was changed in September 2016. LITF vs. Benchmark 149.00 144.00 139.00 134.00 129.00 124.00 119.00 114.00 109.00 104.00 99.00 Aug-12 Jan-13 Jun-13 Nov-13 Apr-14 Sep-14 Feb-15 Jul-15 Dec-15 May-16 Oct-16 Benchmark LITF INVESTMENT COMMITTEE Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA
Lakson Asset Allocation Developed Markets Fund 11 MUFAP s Recommended Format Investment Objective The investment objective of the Lakson Asset Allocation Developed Markets Fund is to provide long-term capital appreciation by investing in a mix of domestic debt and developed markets securities. Performance Review During the month of January 2017 the Lakson Asset Allocation Developed Markets Fund generated an absolute return of 2.01% against the benchmark return of 1.18%. The Fund outperformed the benchmark by 0.84%. Allocation has been taken in T bills (37%), PIBs (14%) and Developed Market Equities (30%). Exposure in equities has been focused on US indices which offer a superior risk/return profile to other Developed Markets. The fund had reversed the provision for WWF and maintained the provision for SWWF according to the decision made by MUFAP Dated Jan 12, 2017. Total Expense Ratio (TER) QQQ ETF (As of Jan-17) Country Weight United States 96.46% China 1.86% United Kingdom 0.77% Netherlands 0.56% Isreal 0.28% SWWF Disclosure As of January 31st, 2017 the LAADMF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 0.62 million. If the same were not made the NAV per unit of the LAADMF would be higher by PKR 0.2444. If the LAADMF would not have made the SWWF provisions during FY17, the year to date return of the LAADMF for FY17 would be higher by 0.21%. For details investors are advised to read the latest Financial Statements of the LAADMF. 2.60% (This is inclusive of 0.50% representing Government levies and SECP Fees) YTD 1.53% (This is inclusive of 0.30% representing Government levies and SECP Fees) 4% 19% 28% 30% Asset Allocation 31% 14% 37% 37% T-Bill PIBs Equities Cash Asset Allocation (% of Total Assets) Placements with Developed Markets Equities (Jan-17) QQQ ETF % of Asset Vanguard S&P 500 % of Assets Apple Inc 11.49% Apple Inc 3.19% Microsoft Corp 8.23% Microsoft Corp 2.50% Amazon.com Inc 6.69% Exxon Mobil Corp 1.93% Facebook Inc 5.13% Johnson & Johnson 1.62% Alphabet Inc 4.62% JPMorgan Chase & Co 1.60% Alphabet Inc 4.06% Amazon.com Inc 1.53% Comcast Corp 3.00% Berkshire Hathaway Inc 1.51% Intel Corp 2.91% General Electric Co 1.44% Cisco Systems Inc 2.62% Facebook Inc 1.39% Amgen Inc 1.99% AT&T Inc 1.35% Disclosures Leverage as on January 31st, 2017 Non Performing Assets Vanguard S&P 500 (As of Jan-2017) Sector Nov-16 Dec-16 Jan-17 Banks & DIFs 0% 0% 0% T-Bills 37% 37% 37% PIBs 31% 31% 14% Equities 28% 28% 30% Cash 4% 4% 19% Weight United States 97.26% Ireland 0.99% Switzerland 0.50% United Kingdom 0.41% Singapore 0.36% Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved. FUND FACTS Fund Type Category Net Assets (PKR Mil.) NAV (31.01.2017) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark Dealing Days Cut-Off Time Risk Profile Asset Manager Rating PERFORMANCE FY17 - YTD January-17 2 Months 3 Months 6 Months 12 Months CY17-YTD 3 Years 5 Years Since Inception LAADMF vs. Benchmark Open-End Asset Allocation Fund 304 119.1101 Forward Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 15% of the gross earnings of the Scheme, calculated on a daily basis. The fee is subject to a minimum of 1.25% and maximum of 2% of the average annual net assets of the Scheme. Current - 1.54% 2.50% None October 11, 2011 Weighted average daily return of 6M KIBOR and the MSCI World Index based on the Scheme's actual proportion in the debt securities and developed market securities Mon-Fri 4:00 PM Medium Risk AM2 by PACRA (08.06.2016) LAADMF Benchmark 5.14% 5.01% 2.01% 1.18% 2.35% 2.10% 3.03% 2.78% 3.15% 3.29% 10.41% 8.27% 2.01% 1.18% 25.8% 16.44% 53.3% 50.43% 57.8% 59.19% *The benchmark of the Fund was changed in September 2016. 169.00 159.00 149.00 139.00 129.00 119.00 109.00 99.00 Aug-12 Jan-13 Jun-13 Nov-13 Apr-14 Sep-14 Feb-15 Jul-15 Dec-15 May-16 Oct-16 Benchmark INVESTMENT COMMITTEE Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA LAADMF
12 Powershare QQQ ETF (Developed Markets): Allocations Type QQQ US Equity DES <Go> and click on Allocations. Vanguard S&P 500 ETF (Developed Markets): Allocations Type VUSD LN Equity DES <Go> and click on Allocations.
Last 3 and 5 fiscal years LAKSON MONEY MARKET FUND (LMMF) LAKSON INCOME FUND (LIF) FUNDS RETURN HISTORY The periodic returns for the funds have been presented below as per SECP's SCD Circular No. 16 dated July 03, 2014. The returns presented below are: Yearly returns for the last five fiscal years and Absolute returns for every fiscal year since inception The returns have been annualized for money market and income schemes where the performance evaluation is less than one year. FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Fund 11.19% 8.76% 7.90% 8.57% 5.60% Benchmark 11.31% 9.14% 8.50% 8.45% 5.61% Fund 11.57% 9.21% 8.38% 14.17% 8.57% Benchmark 8.86% 9.17% 8.31% 12.64% 7.16% 13 LAKSON EQUITY FUND (LEF) LAKSON ASSET ALLOCATION DEVELOPED MARKETS FUND (LAADMF) LAKSON TACTICAL FUND (LTF)* LAKSON ISLAMIC TACTICAL FUND (LITF)** *Formerly: Lakson Asset Allocation Global Commodities Fund (LAAGCF) **Formerly: Lakson Asset Allocation Emerging Markets Fund (LAAEMF) Fund 9.74% 40.02% 32.15% 23.93% 10.60% Benchmark 10.45% 52.20% 25.96% 5.67% 0.37% Fund 6.42% 10.52% 9.64% 7.76% 8.00% Benchmark 10.63% 13.45% 12.94% 5.34% 2.33% Fund 5.85% 3.44% 4.24% 8.86% 6.85% Benchmark 7.25% 7.89% 7.47% -1.02% 3.18% Fund 6.23% 5.46% 6.40% 4.96% 4.42% Benchmark 9.82% 8.50% 10.01% 3.36% 0.05% Since Inception Absolute Returns FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 LMMF vs BENCHMARK LIF vs BENCHMARK LEF vs BENCHMARK LAADMF vs BENCHMARK LTF vs BENCHMARK LITF vs BENCHMARK Fund 6.77% 19.25% 32.63% 44.25% 55.65% 68.98% 78.45% Benchmark 6.66% 19.21% 32.73% 44.86% 57.17% 70.45% 80.01% Fund 7.16% 19.49% 33.35% 45.63% 57.84% 80.20% 95.65% Benchmark 4.59% 15.90% 26.20% 37.77% 49.22% 68.08% 80.12% Fund -0.66% 19.65% 31.30% 83.84% 142.95% 201.09% 233.00% Benchmark 7.32% 37.94% 52.35% 107.12% 160.89% 175.69% 126.44% Fund 6.42% 17.62% 28.95% 38.96% 50.08% Benchmark 10.63% 25.51% 41.75% 49.33% 52.81% Fund 5.85% 9.49% 14.13% 24.25% 32.76% Benchmark 7.25% 15.71% 24.36% 23.09% 27.00% Fund 6.23% 12.03% 19.20% 25.11% 30.64% Benchmark 9.82% 19.15% 31.08% 35.49% 35.56% Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved.
14 Mutual Funds Performance Comparison Annualized Returns (%): Positions as of January 03, 2017 INCOME FUNDS 30 DAYS 90 DAYS 180 DAYS 270 DAYS 365 DAYS ABL Income Fund 13.66 7.64 6.14 6.73 6.34 Atlas Income Fund 4.33 4.80 5.05 6.38 6.33 Faysal Financial Sector Opportunity Fund 18.59 9.39 5.28 6.16 5.88 Faysal Savings Growth Fund 23.66 8.89 6.09 6.22 6.24 First Habib Income Fund 21.39 10.22 8.16 7.31 6.33 HBL Income Fund 6.87 5.33 4.64 4.53 4.7 JS Income Fund 5.50 6.84 6.43 7.67 7.32 Lakson Income Fund 7.65 6.34 5.90 6.41 6.41 MCB DCF Income Fund 22.50 10.66 7.77 7.00 6.44 NAFA Financial Sector Income Fund 31.64 14.27 10.34 8.83 8.32 NAFA Income Fund 8.41 6.48 6.68 6.79 6.72 NAFA Income Opportunity Fund 9.17 6.90 6.09 6.95 6.87 NAFA Savings Plus Fund 35.53 15.47 10.58 9.03 8.38 NIT - Income Fund 11.49 6.72 5.69 5.62 5.57 Pakistan Income Fund 27.26 12.29 8.46 7.40 6.69 PICIC Income Fund 9.53 6.54 5.38 6.00 6.25 UBL Income Opportunity Fund 5.10 4.35 4.28 7.25 6.95 ISLAMIC INCOME FUNDS ABL Islamic Income Fund 6.37 5.84 6.08 5.83 5.9 Al Ameen Islamic Sovereign Fund 4.86 5.76 6.52 6.22 6.13 Alfalah GHP Islamic Income Fund 4.63 5.91 5.27 5.58 5.53 Askari Islamic Income Fund 15.01 7.67 6.08 5.63 5.41 Atlas Islamic Income Fund 5.86 5.81 6.30 5.75 5.78 Faysal Islamic Savings Growth Fund 7.19 4.82 5.13 5.66 5.81 JS Islamic Government Securities Fund (2.25) 0.32 3.18 3.70 4.16 MCB Islamic Income Fund 17.62 10.01 7.66 6.48 6.29 Meezan Islamic Income Fund 7.63 5.67 5.24 4.99 5.07 Meezan Sovereign Fund 19.42 10.82 9.15 7.99 7.28 NAFA Riba Free Savings Fund 11.39 7.52 6.55 6.15 6.02 Pak Oman Advantage Islamic Income Fund 10.88 6.60 5.85 7.05 7.02 MONEY MARKET FUNDS 30 DAYS 90 DAYS 180 DAYS 270 DAYS 365 DAYS ABL Cash Fund 31.52 13.87 9.78 8.69 7.84 AKD Cash Fund 22.35 10.41 7.45 6.72 6.36 Alfalah GHP Cash Fund 24.45 11.44 8.16 7.24 6.67 Alfalah GHP Money Market Fund 11.83 7.33 6.20 6.04 5.82 Askari Sovereign Cash Fund 42.55 17.42 11.27 9.37 8.36 Atlas Money Market Fund 12.78 7.82 6.59 6.25 6.18 Atlas Sovereign Liquid Fund 4.55 4.77 4.90 5.06 5.19 BMA Empress Cash Fund 7.45 5.42 4.62 4.46 4.41 Faysal Money Market Fund 22.85 10.95 8.19 7.46 6.94 First Habib Cash Fund 19.31 9.99 7.65 6.87 6.45 HBL Money Market Fund 19.18 9.74 7.23 6.49 6.03 JS Cash Fund 10.98 7.07 6.21 5.94 5.88 Lakson Money Market Fund 17.27 9.43 7.41 6.87 6.58 MCB Cash Management Optimizer 22.10 10.98 8.12 7.35 6.8 NAFA Government Securities Liquid Fund 32.98 14.56 10.05 8.65 7.99 NAFA Money Market Fund 11.49 7.60 6.80 6.71 6.67 Pakistan Cash Management Fund 30.49 13.75 9.59 8.32 7.67 PICIC Cash Fund 7.96 6.27 5.74 5.87 5.8 PIML Daily Reserve Fund 19.17 10.01 7.47 6.78 6.51 UBL Liquidity Plus Fund 17.20 9.05 7.06 6.80 6.35 UBL Money Market Fund 13.40 7.25 6.03 5.78 5.52 ISLAMIC MONEY MARKET FUNDS Al Ameen Islamic Cash Fund 5.23 5.03 5.01 5.00 4.95 HBL Islamic Money Market Fund 6.13 4.67 4.49 4.39 4.17 Meezan Cash Fund 22.50 10.56 7.59 6.72 6.15 Note: NA - Not Available. Source: MUFAP.
Mutual Funds Performance Comparison 15 Annualized Returns (%): Positions as of January 03, 2017 AGGRESSIVE INCOME FUNDS 30 DAYS 90 DAYS 180 DAYS 270 DAYS 365 DAYS AKD Aggressive Income Fund 9.43 6.44 6.36 6.54 7.79 Alfalah GHP Income Multiplier Fund 8.83 6.82 5.86 7.04 6.8 Askari High Yield Scheme 7.88 5.06 4.60 4.97 5.66 BMA Chundrigar Road Savings Fund 4.74 4.96 4.84 6.27 7.32 Faysal Income & Growth Fund 12.87 4.67 3.05 5.11 6.18 Pakistan Income Enhancement Fund 10.78 6.79 5.03 5.50 5.31 United Growth & Income Fund 8.93 5.94 3.61 9.57 10.97 ISLAMIC AGGRESSIVE INCOME FUNDS Al Ameen Islamic Aggressive Income Fund 5.41 4.43 4.69 5.68 6.57 NAFA Islamic Aggressive Income Fund 5.08 5.20 5.31 5.85 6.06 EQUITY FUNDS 30 DAYS 90 DAYS 180 DAYS 270 DAYS 365 DAYS ABL Stock Fund 3.04 20.87 31.00 41.39 54.63 AKD Opportunity Fund 6.58 19.39 43.43 56.80 76.45 Alfalah GHP Alpha Fund 4.09 19.20 26.43 33.61 43 Alfalah GHP Stock Fund 4.02 19.28 26.66 33.64 43.17 Askari Equity Fund 1.03 18.26 19.75 28.61 34.83 Atlas Stock Market Fund 1.75 21.87 30.73 41.07 55.47 First Capital Mutual Fund 5.84 19.50 24.89 35.31 48.96 First Habib Stock Fund 3.65 20.71 25.82 32.97 46.05 HBL Stock Fund 1.73 17.95 21.12 29.44 38.81 JS Growth Fund 5.93 25.35 37.72 45.48 51.63 JS Large Cap Fund 6.74 24.01 35.48 44.72 48.86 JS Value Fund 3.80 21.29 28.27 36.04 42.32 Lakson Equity Fund 1.65 17.06 24.23 32.89 46.65 MCB Pakistan Stock Market Fund 4.19 21.13 29.68 39.35 51.82 NAFA Stock Fund 2.21 18.71 30.15 40.31 58.55 National Investment Unit Trust 4.20 19.14 34.94 48.17 56.58 PICIC Energy Fund 5.26 20.15 35.12 45.04 53 PICIC Stock Fund 3.67 20.49 24.75 31.59 43.81 PIML Value Equity Fund 2.74 21.83 27.90 34.42 43.05 United Stock Advantage Fund 3.43 19.23 24.28 35.23 41.05 ISLAMIC EQUITY FUNDS ABL Islamic Stock Fund 4.25 22.78 29.30 39.83 49.72 Al Ameen Islamic Dedicated Equity Fund 3.69 21.08 24.42 37.96 45.66 Al Meezan Mutual Fund 2.70 19.57 23.52 36.59 51.82 Alfalah GHP Islamic Stock Fund 3.27 20.77 25.76 32.79 42.49 HBL Islamic Stock Fund 2.55 20.46 23.90 34.40 41.57 JS Islamic Fund 3.39 19.65 35.70 51.52 58.98 Meezan Islamic Fund 2.72 19.23 23.63 36.99 51.92 PIML Islamic Equity Fund 2.18 19.71 22.99 29.63 38.55 BALANCED FUNDS 30 DAYS 90 DAYS 180 DAYS 270 DAYS 365 DAYS Faysal Balanced Growth Fund 5.69 13.46 14.85 20.50 20.77 HBL Multi Asset Fund 2.43 14.20 16.29 23.51 29.64 NAFA Multi Asset Fund 2.84 14.17 22.97 31.80 42.81 Pakistan Capital Market Fund 3.71 16.81 23.44 31.08 39.16 Unit Trust of Pakistan 3.60 15.31 20.69 26.42 27.7 ISLAMIC BALANCED FUNDS First Habib Islamic Balanced Fund 3.80 18.15 19.67 25.33 33.19 Meezan Balanced Fund 2.06 12.48 14.53 22.13 31.41 Note: NA - Not Available. Source: MUFAP.
16 Mutual Funds Performance Comparison Annualized Returns (%): Positions as of January 03, 2017 ASSET ALLOCATION FUNDS 30 DAYS 90 DAYS 180 DAYS 270 DAYS 365 DAYS Alfalah GHP Value Fund 2.08 15.32 22.69 32.39 41.79 Askari Asset Allocation Fund 2.46 13.92 14.08 19.48 23.25 Faysal Asset Allocation Fund 8.20 18.54 14.01 17.39 20.59 Lakson Asset Allocation Developed Markets Fund 1.92 3.79 3.19 7.43 10.78 Lakson Tactical Fund 0.93 8.26 12.05 15.90 17.45 MCB Pakistan Asset Allocation Fund 0.31 6.16 9.61 14.56 17.53 MCB Pakistan Frequent Payout Fund 0.05 2.24 3.68 5.15 6.56 NAFA Asset Allocation Fund 2.56 13.61 23.03 29.50 40.2 Pak Oman Advantage Asset Allocation Fund 1.26 16.10 21.01 30.28 37.96 UBL Asset Allocation Fund 1.78 8.73 10.55 16.85 21.92 ISLAMIC ASSET ALLOCATION FUNDS Al Ameen Islamic Asset Allocation Fund 1.87 9.37 11.45 16.50 21.08 Askari Islamic Asset Allocation Fund 2.31 13.55 14.64 22.10 25.47 Lakson Islamic Tactical Fund 0.60 6.36 7.74 8.91 9.76 NAFA Islamic Asset Allocation Fund 1.29 12.59 17.74 26.17 35.95 Pak Oman Islamic Asset Allocation Fund 2.03 17.40 21.97 29.61 38.21 Pakistan Int'l Element Islamic Asset Allocation Fund 3.92 18.67 23.72 36.65 45.58 CAPITAL PROTECTED FUNDS 30 DAYS 90 DAYS 180 DAYS 270 DAYS 365 DAYS HBL Mustahekum Sarmaya Fund 1 0.79 2.82 5.19 7.17 9.19 JS Capital Protected Fund V 0.87 2.45 4.45 N/A N/A UBL Capital Protected Fund III N/A N/A N/A N/A N/A ISLAMIC CAPITAL PROTECTED FUNDS NAFA Islamic Principal Protected Fund I 1.76 9.74 13.91 19.14 23.45 NAFA Islamic Principal Protected Fund II 0.98 11.21 19.27 26.13 32.45 Note: NA - Not Available. Source: MUFAP.
Markets Information 17 Equities TOTAL RETURN IN PKR AND % TOTAL RETURN IN USD AND % MARKETS INDEX YTD 3M 1Y 5Y YTD 3M 1Y 5Y -30% -5% 20% 45% 70% World MSCI All Country World Index 2.7% 5.4% 15.5% 58.1% 2.7% 5.4% 15.5% 36.8% Developed MSCI World Index 2.4% 6.0% 14.7% 66.9% 2.4% 6.0% 14.7% 44.4% Emerging MSCI Emerging Markets Index 5.4% 0.5% 22.5% 3.1% 5.4% 0.5% 22.5% -10.8% Europe MSCI Europe Index 2.0% 4.8% 5.6% 32.1% 2.0% 4.8% 5.6% 14.3% China CSI 300 2.4% 1.5% 15.0% 58.9% 2.4% 1.5% 15.0% 37.5% Dubai DFM 0.0% 0.0% 0.0% 217.4% 0.0% 0.0% 0.0% 174.6% India BSE Sensex 30 3.9% -1.0% 11.2% 85.9% 3.9% -1.0% 11.2% 60.9% Japan Nikkei 225-0.4% 9.3% 8.7% 150.0% -0.4% 9.3% 8.7% 116.3% Malaysia FTSE Bursa 1.8% -0.1% 0.2% 27.0% 1.8% -0.1% 0.2% 9.9% Pakistan KSE 100 2.0% 22.2% 55.8% 310.6% 2.0% 22.2% 55.8% 255.3% Sri Lanka Colombo All Share -1.5% -4.3% -3.3% 24.1% -1.5% -4.3% -3.3% 7.3% UK FTSE 100-0.6% 2.1% 16.7% 44.4% -0.6% 2.1% 16.7% 24.9% US DJIA 0.5% 9.5% 20.6% 81.7% 0.5% 9.5% 20.6% 57.2% US S&P 500 1.8% 7.2% 17.5% 100.7% 1.8% 7.2% 17.5% 73.6% US NASDAQ 100 5.2% 6.6% 19.6% 139.6% 5.2% 6.6% 19.6% 107.3% Germany DAX Index 0.5% 8.2% 17.7% 106.4% 0.5% 8.2% 17.7% 78.6% CANADA TSX 300 Composite Index 0.6% 4.0% 20.0% 42.8% 0.6% 4.0% 20.0% 23.6% France CAC - 40-2.3% 5.3% 7.5% 66.4% -2.3% 5.3% 7.5% 44.0% Brazil Sao Paulo SE Bovespa Index 7.4% -0.4% 60.1% 18.5% 7.4% -0.4% 60.1% 2.5% Korea Korea SE Kospi 2.0% 3.0% 8.1% 22.2% 2.0% 3.0% 8.1% 5.7% Taiwan Taiwan SE Weighted Index 2.1% 1.7% 16.0% 45.3% 2.1% 1.7% 16.0% 25.7% KSE SECTORS Automobile and Parts 8.4% 72.4% 152.9% 1396.1% 8.4% 72.4% 152.9% 1194.6% Banks 1.1% 17.8% 43.2% 185.8% 1.1% 17.8% 43.2% 147.3% Chemicals 6.3% -55.6% -54.6% -18.0% 6.3% -55.6% -54.6% -29.0% Construction and Materials 2.3% 28.8% 57.9% 1113.1% 2.3% 28.8% 57.9% 949.7% Electricity 5.6% 17.0% 19.4% 260.9% 5.6% 17.0% 19.4% 212.3% Food Producers 1.0% 5.2% 19.6% 165.8% 1.0% 5.2% 19.6% 130.0% Oil and Gas -3.1% 15.8% 65.2% 51.6% -3.1% 15.8% 65.2% 31.2% Personal Goods -2.5% -15.5% 2.0% 224.1% -2.5% -15.5% 2.0% 180.4% YTD 3-mo Fixed Income CURRENT INTERBANK RATES HISTORIC 6M INTERBANK RATES MONEY MARKET 1M 3M 6M 12M YTD 3M 1Y 5Y China SHIBOR 3.85% 3.87% 3.84% 3.74% NA 3.23% 3.02% 3.32% Dubai UAE IBOR 1.00% 1.41% 1.66% 2.10% NA 1.66% 1.44% 1.20% India MIBOR 7.68% 7.80% NA NA NA NA NA NA Japan TIBOR 0.03% 0.06% 0.11% 0.13% 0.11% 0.11% 0.12% 0.19% Malaysia KLIBOR 3.18% 3.43% 3.53% 3.63% 3.53% 3.53% 3.65% 3.75% Pakistan KIBOR 6.26% 6.08% 6.11% 6.40% 6.12% 6.11% 6.17% 6.64% Sri Lanka SLIBOR 10.46% 10.86% 11.52% 12.00% 11.51% 11.51% 10.67% 8.98% UK LIBOR 0.26% 0.36% 0.52% 0.77% 0.53% 0.54% 0.63% 0.67% US SIBOR 0.78% 1.03% 1.36% 1.72% 1.34% 1.30% 1.10% 0.81% CURRENT MARKET YIELDS HISTORIC 12M PAPER RATES GOVERNMENT SECURITIES 3M 12M 5Y 10Y YTD 3M 1Y 2Y China 2.63% 2.66% 3.06% 3.37% 2.73% 2.52% 2.32% 2.38% India 8.31% 6.18% #N/A 6.41% 6.18% 6.20% 6.68% 7.12% Japan -0.29% -0.36% -0.09% 0.09% -0.35% -0.32% -0.30% -0.18% Malaysia 3.01% 3.06% 3.63% 4.16% 3.11% 3.07% 2.76% 2.93% Pakistan 5.83% 5.90% 7.05% 8.19% 5.92% 5.91% 5.97% 6.43% Sri Lanka 10.86% 12.00% #N/A #N/A 12.00% 12.00% 11.16% 9.38% UK 0.29% 0.07% 0.63% 1.44% 0.10% 0.10% 0.24% 0.34% US 0.50% 0.77% 1.95% 2.49% 0.80% 0.78% 0.62% 0.47% Govt. Securities vs. KIBOR 8.00% 7.75% Interbank Jan 17 Govt. Sec. Jan 17 7.50% 7.25% 7.00% 6.75% 6.50% 6.25% 6.00% 5.75% 5.50% 5.25% 5.00% 1W 1M 3M 6M 1Y 2Y 12M Yields of Government Securities China India Japan Malaysia Pakistan Sri Lanka UK US 0% 3% 6% 9% 12%
18 Markets Information Commodities TOTAL RETURN CURRENT PRICE COMMODITY UNIT YTD 3M 1Y 5Y DB Commodity Index USD Excess Return -0.6% 5.3% 23.3% -40.2% 327.2 S&P Global Commodity Index USD Total Return -1.4% 5.9% 15.8% -52.3% 2383.2 Dow Jones UBS Commodity Index USD Total Return 0.1% 3.3% 13.8% -38.9% 177.2 Coal USD/Tonne -6.1% -23.6% 70.1% N.A 83.0 Copper USc/lbs 8.9% 23.7% 32.0% -28.0% 272.8 Cotton USc/lbs 6.1% 8.8% 22.6% -19.6% 74.9 Gold USD/t oz. 4.9% -5.1% 8.3% -30.5% 1208.6 Palm Oil USD/Tonne 1.7% 10.8% 28.7% -27.8% 729.2 Sugar USc/lbs 4.8% -5.2% 55.6% -13.5% 20.5 Wheat USD/Bushel (60Ibs) 3.1% 1.1% -12.2% -36.8% 4.2 WTI USD/bbl -1.7% 12.7% 57.1% -46.4% 52.8 Brent Crude USD/bbl -2.0% 15.3% 60.3% -49.8% 55.7 Heating Oil USd/Gallon -5.4% 7.8% 52.8% N.A 161.2 RBOB Gasoline USD/Gallon -8.4% 5.3% 38.3% -47.2% 1.5 Natural Gas USD/MMBTU -16.3% 3.0% 35.6% 24.5% 3.1 Silver USD/t Ozs 9.7% -1.4% 23.2% -47.3% 17.5 130 120 DBCI SPGSCI DJUBS 110 100 90 80 70 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Currencies TOTAL RETURN YTD 3M 1Y 5Y CURRENT EXCHANGE RATES Canadian Dollar CAD 3.58% 2.88% 7.08% 7.08% CAD - PKR 80.38 Euro EUR 3.06% -1.70% -0.44% -0.44% EUR - PKR 113.10 Indian Rupee INR 4.15% -7.10% 7.25% 7.25% INR - PKR 0.93 Japanese Yen JPY 4.15% -7.10% 7.25% 7.25% JPY - PKR 0.93 Pound Sterling GBP 2.33% 2.72% -11.81% -11.81% GBP - PKR 131.76 Singaporian Dollar SGD 3.07% -1.37% 0.88% 0.88% SGD - PKR 74.29 US Dollar USD 0.40% -0.22% -0.03% -0.03% USD - PKR 104.79 190 GBP EUR CAD USD 170 150 130 110 90 70 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17
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TRANSACTION LOCATIONS Islamabad Mr. Ali Kazmi - Branch Manager Office No.6, Mezzanine floor, Kashmir Plaza, Jinnah Avenue, Blue Area, Islamabad. UAN: 051.111-111-717 Fax: 051.2870228 Lahore Mr. Haider Abbas 14 Ali Block, 1st Floor New Garden Town, Lahore. Tel: 042.591.1025/26 Faisalabad Mr. Shahbaz Choudhry - Branch Manager 1 st Floor, FM Plaza 15-D, Peoples Colony, Faisalabad Tel: 041.324.1704/07 Fax: 041.855.4453 This information has been prepared by Lakson Investments for your general information and private use only. It does not constitute investment advice and is not intended to be an offer to buy or sell or a solicitation of an offer to buy or sell any securities mentioned. It should not be considered as an incentive to invest. The securities described in this document may not be eligible for sale or subscription in all jurisdictions or to certain categories of investors. This document is not intended for distribution to a person or within a jurisdiction where such distribution would be restricted or illegal. This document may not be conveyed to or used by a third party without our express consent. Any other use is not authorized. The information contained herein has been obtained from sources believed to be reliable and no member of Lakson Investments makes any warranty, expressed or implied, as to the accuracy or completeness of the information. All the information included in this presentation is current when this document is prepared and subject to changes at any time. Any forecast or projection or forward looking statement made in this document is not necessarily indicative of future or likely performance, future events or future financial performance of securities, countries, markets or companies. Such statements are only predictions and actual events or results may differ. Lakson Investments may from time to time provide services to the companies and their affiliates mentioned herein. Employees of Lakson Investments or ersons/entities connected to them may from time to time have position in or are holding any of the securities mentioned in this document. No consideration have been given to and no investigation was made of your investment objectives, financial situation or particulars, and accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of you acting on such information or opinion or estimate. Lakson Investments expressly disclaims any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on this information in this document. Disclaimer: All investments in mutual funds are subject to market risks. The NAV of Units may go up or down based on market conditions. Past performance is not necessarily indicative of the future results. The investors are advised in their own interest to carefully read the Offering Document in particular the investment policy in Clause 2.2 and risk disclosure and warning statements contained in Clause 2.11 and Part 11 respectively in this Offering Document. Sialkot Mr. Nisar Bhatti - Branch Manager 1 st Floor, Karim Plaza Iqbal Town, Defence Road, Sialkot Tel: 052.324.1704/07 Fax: 052.324.1703 Decades of Seasoned Investment: since 1954 Century Paper & Board Mills Century Insurance Lakson ICE Business ANIMATIONS Solution Merit Packaging Limited Accuray Surgicals