LAKSON GROUP
ONLINE www.li.com.pk
[email protected]
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
DECEMBER 2016
Lakson Outlook.
CONTENTS 04
06
07
Economic & Markets Review
FMR Lakson Money Market Fund
FMR Lakson Income Fund
08
09
10
FMR Lakson Equity Fund
FMR Lakson Tactical Fund
FMR Lakson Islamic Tactical Fund
13
14
11 FMR Lakson Asset Allocation Developed Markets Fund
Funds Return History
17 Markets Information
Mutual Funds Performance Comparison
4
Economic & Markets Review PAKISTAN
Economy CPI during December 2016 clocked in at 3.7% Year-on-Year, lower compared to 3.8% in the previous month. On a month-on-month basis, CPI was down 0.65% in December as compared to an increase of 0.21% during November 2016 on the back of seasonal decline in food prices (down 2.2% MoM). Inflationary expectation is on the rise, with further impetus going forward likely from recovery in international commodity prices and as impact of low base effect normalizes. Other macro indicators also improved, where Large-scale manufacturing (LSM) increased by 2.4% YoY in October 2016. Private sector credit off-take continues to accelerate (up 13.7%YoY in November 2016 vs. 5.2% in November 2015) with impetus from Construction (+30%YoY), Textiles (+18%YoY) and Food (+14%YoY) sectors.
Yield Curve 11.5% 10.5% 9.5% 8.5% 7.5% 6.5% 5.5% 1W
Net FDI flows during 5MFY17 clocked in at USD 460mn, down 45% YoY. Other than this, the current account balance posted a USD 839mn deficit in November 2016 against USD 381mn deficit in October 2016, led primarily by slowdown in remittances, lackluster exports and rise in imports. For 5m FY17 the current account deficit has jumped by 91% to USD 2.6bn. Fixed Income Review The Government of Pakistan (GOP)raised PKR 150 bn through the T-Bill auctions in December 2016, against a target of PKR 200 bn. Major participation was seen in 3M T-Bills (PKR 119bn) and followed by those in 6M (PKR 73bn). Cut-off yields notched up to 5.96% and 5.98% for 3M & 6M T-Bills respectively. Meanwhile, all bids for 12M TBills were rejected during the auction. In the PIB auction held during the month, the GOP rejected all bids worth PKR 47 bn. PIB yields for 3 yr & 5 yr tenor in the secondary market increased by 20 bps and 37 bps respectively during the month of December 2016.
2M
6M
2Y
5Y
30-Nov-16
8Y
15Y
30-Dec-16
USD/PKR vs. Forex Reserves Forex Res. (USD bn.) - RHS USD/PKR
106.0
24.0 23.0 22.0
105.0
21.0 20.0
Equities Review In December, the KSE 30 rallied 14% on the back of surge in oil prices (8% MoM) after OPEC's decision to cut production. Another key catalyst that drove the market up was the divestment of 40% stake of the Pakistan Stock Exchange. The bid was won by a Chinese consortium. Average volumes in the market increased by 8% to 77 million shares per day and average daily traded value increased by 36% to $87 million per day. Foreigners (-$144 mn) were major sellers during the month as they pulled out money from emerging markets as the U.S. Fed went ahead with a hike in the interest rate. Mutual funds (+$120 mn) were major buyers during the month. OPEC's decision built in the expectations of a new normal for oil prices, instigating a 22% rally for E&Ps while banks surged on expectations of an earlier interest rate liftoff on account of rising inflation expectations. robust local liquidity in the market. Foods (+30.1%) was the best performing sector as the sale of EFOODS was finalized with FreislandCampina. The next best performing sectors were Utilities (+25.2%), Pharma (+23.7%) and Oil & Gas (+18.6%), which rose on the back of rising oil prices. Cements (+17.9%) also rallied as the sector gradually passed on the impact of higher coal prices. The worst performing major sector was Chemicals (+5.0%) as the government took back its decision to lower gas prices for industries.
19.0 104.0
18.0 1-Dec
8-Dec
15-Dec
22-Dec
29-Dec
Market Rates 6.25%
6.00%
5.75% 1-Dec
10-Dec 6M KIBOR
19-Dec O/N Repo Rate
28-Dec 6M T-Bill
The KSE 30's trailing 12 months (TTM) PE ratio is 12.1x 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 17.6x and 19.9x respectively.
The current account deficit has jumped by 91% to USD 2.6bn.
5
Economic & Markets Review INTERNATIONAL
Emerging Markets While most emerging markets ended CY16 on a positive note, Chinese stocks continued to remain in trouble, bringing the MSCI EM Index down 0.51% MoM in December 2016. Consequently, the EM Index posted a limited 8.6% return in CY16, with the biggest drag coming from the Shanghai Composite index which ended the year 12.3% lower (-4.5%MoM in December 2016), primarily on the back of persistent foreign outflows from the market owing to Yuan's weakness. On the other hand, commodity linked EM markets ended the year making it to the list of top performing markets globally on recovery in global prices. While Brazil encountered some turbulence earlier in the month (-2.6% MoM) on slipping iron ore prices, it nonetheless ended CY16 36.7% higher. With 6% MoM return in December 2016, Russian equities recorded 25.6% gain for the year in CY16. Most Asian equities were also upbeat in the outgoing month with Thailand, Indonesia and Malaysia stock markets rising 2.2% MoM, 2.9% MoM and 1.4% MoM respectively.
Performance of Equities and Commodities MSCI World Index MSCI EM Index DB Commodity Index
120%
100%
80%
60% Dec-15
Mar-16
Jun-16
Sep-16
Dec-16
Developed Markets Developed market equities ended the year on a strong note (S&P/FTSE rising 2.3%/4.9% for December 2016) and crossed all-time highs, despite countering the fallout from political events and uncertain oil price outlook. Since November, the election of Donald Trump has encouraged equity markets in anticipation of lower regulations, heightened spending and accommodative policies fueling earnings growth in the US, underpinning a bullish run (S&P/DJIA returned 5.8/9.3% since November 2016). Additionally, the rate hike by the U.S. Fed, coupled with the OPEC and non-OPEC deal has buoyed markets globally where energy and financial sectors have led the rally.
Valuation of International Markets 24 20 16 12
Commodities
8
The OPEC and non-OPEC production cut deal reached at the end of November led to surge in crude oil prices in December. WTI, Brent and Arab Light prices rose by 7%, 13% and 21% respectively during the month. Prices of commodities in the petrochemical chain followed suit and rose across the board. Ethylene prices were up 10% during the month, thereby reducing the PVC-Ethylene spread. Moreover, Paraxylene prices were up by 8% during the month while PTA prices were up 4%, thereby reducing the PTA-PX spread. Middle Eastern Urea prices, which have historically been positively correlated to crude oil prices, were flat during the month (2.1%) as they had already surged sharply (13%) in November.
4 -
DM
US
UK
Japan Canada EM
Brazil Russia India
P/E Multiple
International steel prices also continued on an upward trend, with prices of Chinese cold rolled coil up 6.2%, Chinese hot rolled coil prices were up 5.8% and European scrap prices were up 6.7%. The rise in steel prices is partly attributable to expectations that the US President-Elect will focus on greater infrastructure spending in USA.
WTI, Brent and Arab Light prices rose by 7%, 13% and 21% respectively
China
6
LAKSON MONEY MARKET FUND FU N D FA C T S
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
WWW Disclosure
The Lakson Money Market Fund generated an annualized return of 5.72% against the benchmark return of 5.29% in December 2016. The Fund outperformed the benchmark by 0.43%. During CY16TD the Fund has returned 5.59% to unit holders against the benchmark of 5.27% and outperformed by 0.31%. Asset allocation changed with Cash deposits allocation increasing to 78% while p l a c e m e n t ex p o s u r e wa s a t 2 2 % respectively. As a result portfolio WAM was calculated at 7 days. Going forward the Fund will focus on increasing exposure to attractive deposits in order to generate returns and mitigate interest rate risk.
As of December 31st, 2016 the LMMF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 53.0 million. If the same were not made the NAV per unit of the LMMF would be higher by PKR 1.21. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LMMF.
(This is inclusive of 0.17% representing Government levies and SECP Fees)
22%
Asset Allocation
19%
Placements with Banks & DFIs Cash
13%
Credit Split 68%
AAA AA+ AA
78%
Asset Allocation Instruments (% of total Assets) Instruments Placements with Banks & DFIs PIBs T Bills Cash Others including receivables * Weighted Average Maturity
Oct-16 9% 0% 38% 52% 1%
Open-End Money Market Fund 4,519 102.8599 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 - 0.67% 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)
Front End Load Back End Load Launch Date Benchmark*
Dealing Days Cut-Off Time Fund Rating Risk Profile Asset Manager Rating
Total Expense Ratio (TER) TER 0.90%
Fund Type Category Net Assets (PKR Mil.) NAV (31.12.2016) Pricing Mechanism Trustee Auditor Management Fee
Nov-16 19% 0% 71% 10% 0%
Dec-16 22% 0% 0% 80% -1%
WAM* days 7 0 0 0
PERFORMANCE Morningstar FY17 - YTD December-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD Simple Annualized FY17 - YTD December-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD 3 Years 5 Years Since Inception
LMMF 5.45% 5.87% 5.56% 5.42% 5.45% 5.59% 5.59% LMMF 5.38% 5.72% 5.44% 5.31% 5.38% 5.59% 5.59% 6.80% 8.14% 11.67%
Benchmark 5.17% 5.42% 5.38% 5.34% 5.17% 5.26% 5.26% Benchmark 5.10% 5.29% 5.26% 5.24% 5.10% 5.26% 5.26% 7.05% 8.54% 11.86%
*The benchmark of the Fund was changed in February 2014 and September 2016.
Non Compliant Investments
Disclosures
Name on investment
Leverage as on December 31st, 2016 Non Performing Assets WAM of Portfolio
Type of instrument Value of investment before provisioning
LMMF vs. Benchmark Nil Nil 7 Days
Total provision held Value of investment after provisioning % of total assets
MUFAPs Recommended Formate 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.
LAKSON OUTLOOK
118 117 116 115 114 113 112 111 110 109 108 107 106 105 104 103 102 101 100 Jun-14
Oct-14
Feb-15
Jun-15
Benchmark
Oct-15
Feb-16
Jun-16
Oct-16
LMMF
INVESTMENT COMMITTEE Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Junaid Arshad, ACCA
Chairman
December 2016
7
LAKSON INCOME FUND FUND FACTS
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
WWW Disclosure
During December 2016 the LIF generated an annualized return of 5.26% against the benchmark return of 6.14%. Over CY16TD the LIF has generated a return of 6.64% and outperformed the benchmark by 0.08%. Asset allocation changed with placements decreasing to 22%, cash exposure increasing to 62% while corporate debt exposure increased marginally to 12%. This translated the portfolio WAM to 305 days. Going forward the Fund will concentrate on building exposure to high quality corporate debt and bank placements.
As of December 31st, 2016 the LIF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 11.8 million. If the same were not made the NAV per unit of the LIF would be higher by PKR 0.35. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LIF.
(This is inclusive of 0.29% representing Government levies and SECP Fees) 4%
22%
62%
Asset Allocation
4% 8% 4%
Placements with Banks & DFIs PIB TFC Sukuk Cash
2% 5%
25%
1%
Credit Split
Gov Sec AAA AA+ AA AAA
62%
Asset Allocation Instruments (% of total Assets) Instruments Placements with Banks & DFIs PIBs T Bills TFCs Sukuks MTS Cash Others including receivables
Oct-16 32% 5% 0% 10% 4% 0% 48% 1%
Issue Date
NRSP 30-Jun-16 PEL SUKUK 25-Aug-16 Habib Bank 19-Feb-16 Limited I Bank Al Falah 20-Feb-13 Limited V Askari Bank 23-Dec-11 Limited IV K-Electric AZM Sukuk III 24-Feb-14
Nov-16 26% 4% 0% 8% 3% 0% 58% 1%
Dec-16 22% 4% 0% 8% 4% 0% 62% 0%
WAM* days 27 115 0 145 17 0 0
Disclosures
TFCs/Sukuk Portfolio Name of the Issuer
Rating
% of Total Assets
A A
2.53% 2.31%
AAA
2.17%
AA-
1.90%
AA-
1.64%
AA
Leverage as on December 31st, 2016 Non Performing Assets WAM of Portfolio
Nil Nil 305 Days
1.21%
MUFAPs Recommended Formate 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.
LAKSON OUTLOOK
Open-End Income Fund 3,463 103.9502 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
Total Expense Ratio (TER) TER 1.94%
Fund Type Category Net Assets (PKR Mil.) NAV (31.12.2016) 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
Morningstar FY17 - YTD December-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD Simple Annualized FY17 - YTD December-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD 3 Years 5 Years Since Inception
LIF 5.59% 5.39% 5.82% 5.76% 5.59% 6.64% 6.64% LIF 5.52% 5.26% 5.68% 5.64% 5.52% 6.64% 6.64% 12.96% 13.24% 14.17%
Benchmark 5.92% 6.32% 6.27% 6.23% 5.92% 6.56% 6.56% Benchmark 5.83% 6.14% 6.11% 6.09% 5.83% 6.56% 6.56% 11.77% 12.55% 11.97%
*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
Benchmark
Feb-16
Jun-16
Oct-16
LIF
INVESTMENT COMMITTEE Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Junaid Arshad, ACCA
December 2016
8
LAKSON EQUITY FUND FUND FACTS
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
WWW Disclosure
LEF closed CY16 on a high note, bringing in a CYTD return of 40.7% vs 37.9% of the b e c h m a r k . D e c ' 16 s a w a s l i g h t underperformance, where the benchmark jettisoned to new highs generating a total return of 14.0% (LEF: 11.4%).
As of December 31st, 2016 the LEF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 19.9 million. If the same were not made the NAV per unit of the LEF would be higher by PKR 0.69. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LEF.
Dec'16 saw exposure increas to 93% from 85%, with a focus on potentially strong sectors, such as: Commercial Banks, Oil & Gas Exploration and Marketing. Gains were realised where upside potential was limited, namely: Chemicals and Power Generation.
(This is inclusive of 0.42% representing Government levies and SECP Fees)
Top 10 Holdings Oil & Gas Development Co Habib Bank Limited United Bank Limited Nishat Mills Limited Pakistan State Oil Limited MCB Bank Limited DG Khan Cement Limited ICI Pakistan Limited Indus Motor Co Limited Engro Corporation Limited
Sectorwise Exposure 6.43% 6.40% 5.97% 5.27% 5.27% 4.11% 3.99% 3.51% 3.47% 3.42%
Nov-16
Dec-16
Chemicals*
10.07%
9.76%
Comm Banks
20.30% 24.33%
Const. & Mat.
10.14%
Electricity
4.93%
4.81%
Oil & Gas Exp
11.92%
14.72%
Oil & Gas Mktg
4.59%
5.27%
Others
22.93%
21.78%
10%
22%
Equity Cash
11.97%
LEF 25.41% 11.39% 17.54% 17.00% 25.41% 40.69% 40.69% 89.77% 282.47% 317.64%
FY17 - YTD December-16 2 Months 3 Months 6 Months 12 Months CY16- YTD 3 Year 5 Year Since Inception
Benchmark 22.81% 13.98% 19.50% 17.25% 22.81% 37.91% 37.91% 41.38% 158.79% 178.10%
*The benchmark of the Fund was changed in September 2016.
*Includes fertilizers
7%
Asset Allocation
Open-End Equity Fund 4,121 143.3690 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)
PERFORMANCE
Total Expense Ratio (TER) TER 2.80%
Fund Type Category Net Assets (PKR Mil.) NAV (31.12.2016) 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
5%
Sector wise Exposure
24%
15% 93%
5%
12%
Chemicals Comm Banks Const. & Mat Electricity Oil & Gas Exp Oil & Gas Mktg Others
LEF vs. Benchmark 600 500 400 300 200
Asset Allocation (% of Total Assets) Oct-16 Nov-16 Dec-16 Equities
65%
85%
93%
T-Bills
0%
0%
0%
Cash
33%
13%
7%
Others
2%
2%
0%
Disclosures Leverage as on December 31st, 2016 Non Performing Assets
Pakistan vs. Global Markets Country
Pakistan KSE-100 India
MUFAPs Recommended Formate
1M P/E Div. Ret. Yield 12.16% 12.4 4.57
BSE 1.40% 16.44
0 Dec-15
Feb-16
Apr-16
Jun-16
Aug-16
KSE-100
Oct-16
Dec-16
KSE-30
1.6 3.2
DFM General
5.06% 11.53 3.89
USA
DJIA
3.34% 18.77 2.42
USA
S&P 500
1.82% 20.97 2.09
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.
LAKSON OUTLOOK
100
LEF
Sensex 30 -0.10% 19.89 Malaysia FTSE KLCI Dubai
Nil Nil
Index
INVESTMENT COMMITTEE Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Tayyaba Azeem Junaid Arshad, ACCA
Chairman
December 2016
9
Lakson Tactical Fund
(Formerly: Lakson Asset Allocation Global Commodities Fund)
FUND FACTS
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
WWW Disclosure
During the month of December 2016 the Lakson Tactical Fund generated an absolute return of 5.38% against the benchmark return of 5.54%. The Fund has outperformed the benchmark by 0.15% over CY16. Allocation was focused between Equities (34%), Placements with Banks & DIFs (19%) Cash (39%),TFCs/Sukuks (4%) and PIBs (3%). Going forward the Fund will look to minimize interest rate risk while maintaining a healthy exposure to equities.
As of December 31st, 2016 the LTF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 1.2 million. If the same were not made the NAV per unit of the LTF would be higher by PKR 0.09. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LTF.
Fund Type Category Net Assets (PKR Mil.) NAV (31.12.2016) Pricing Mechanism Trustee Auditor Management Fee
Front End Load Back End Load Launch Date Benchmark*
Total Expense Ratio (TER) TER 2.17%
(This is inclusive of 0.34% representing Government levies and SECP Fees)
Asset Allocation (% of Total Assets) Oct-16 Nov-16 Dec-16
1%
Placements
Placement with Banks & DFIs
19%
with Banks & DFIs
26%
26%
19%
T bills
0%
0%
0%
PIBs
4%
4%
3%
TFC
4%
4%
4%
Equity
33%
41%
34%
Cash
33%
24%
39%
Others
0%
2%
1%
Top 10 Equity Holdings (%age of total assets) Securities Oil & Gas Dev. Habib Bank United Bank Nishat Mills P.S.O. D.G.K. Cement MCB Bank Engro Corp. Indus Motor Co. Lucky Cement
Dec-16 Weight 2.33% 2.31% 2.16% 1.90% 1.89% 1.51% 1.50% 1.34% 1.31% 1.30%
39%
Asset Allocation
3% 4%
34%
PIBs TFC Equity Cash Others
Sectorwise Exposure Nov-16
Dec-16
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
Disclosures
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.
Leverage as on December 31st, 2016 Non Performing Assets
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
Nil Nil
MUFAPs Recommended Formate
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.
LAKSON OUTLOOK
Dealing Days Cut-Off Time Risk Profile Asset Manager Rating
Open-End Asset Allocation Fund 1,544 115.4248 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 - 1.55% 2.50% None October 11, 2011 Weighted average daily return of KSE30 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)
PERFORMANCE LTF 12.47% 5.38% 8.70% 8.72% 12.47% 16.45% 16.45% 31.80% 46.31% 49.33%
FY17 - YTD December-16 2 Months 3 Months 6 Months 12 Months CY16-YTD 3 Years 5 Years Since Inception
Benchmark 10.56% 5.54% 8.04% 7.67% 10.56% 16.30% 16.30% 15.28% 33.68% 36.71%
*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
Benchmark
Feb-15
Jul-15
Dec-15 May-16
Oct-16
LTF
INVESTMENT COMMITTEE Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Junaid Arshad, ACCA
Chairman
December 2016
10
Lakson ISLAMIC Tactical Fund (Formerly: Lakson Asset Allocation Emerging Markets Fund)
FUND FACTS
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
WWW Disclosure
During the month of December 2016 the Lakson Islamic Tactical Fund generated an absolute return of 4.20% against the benchmark return of 4.09%. The Fund has underperformed the benchmark by 3.56% over CY16TD. Fund exposure is in Cash (77%) and Equities (20%). A build up in Shariah compliant equities and fixed income instruments will be targeted over 2HFY17.
As of December 31st, 2016 the LITF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 0.9 million. If the same were not made the NAV per unit of the LAAEMF would be higher by PKR 0.78. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LAAEMF.
Fund Type Category Net Assets (PKR Mil.) NAV (31.12.2016) Pricing Mechanism Trustee Auditor Management Fee
Front End Load Back End Load Launch Date Benchmark*
Total Expense Ratio (TER) TER 3.67%
(This is inclusive of 0.44% representing Government levies and SECP Fees)
3%
Asset Allocation (% of Total Assets) Oct-16 Nov-16 Dec-16
20%
Asset Allocation
Equities Cash Others
Equities
17%
34%
20%
Cash
73%
62%
77%
Others
10%
5%
3%
Dec-16 Weight
Nishat Mills Ltd.
2.13%
D.G.K. Cement
1.82%
Pak Oilfields.
1.55%
Lucky Cement
1.40%
K-Electric Ltd.
1.28%
Meezan Bank
1.20%
ICI Pakistan.
1.20%
Engro Corp.
1.19%
Pak Petroleum
0.99%
Kohat Cement
0.98%
Disclosures Leverage as on December 31st, 2016 Non Performing Assets
Nil Nil
LITF 6.87% 4.20% 6.69% 6.44% 6.87% 9.28% 9.28% 18.19% 36.83% 39.62%
Benchmark 9.68% 4.09% 6.74% 6.80% 9.68% 12.85% 12.85% 15.88% 41.81% 46.54%
Nov-16
Dec-16
Const. and Mat.
9.39%
6.35%
Chemicals*
6.99%
3.48%
Oil & Gas Exp
4.45%
3.48%
*The benchmark of the Fund was changed in September 2016.
Textiles
4.36%
2.13%
Electricity
2.77%
1.69%
149.00
Commercial
1.71%
1.20%
144.00
Others
3.92%
1.57%
139.00
Sectorwise Exposure
*Includes fertilizers
LITF vs. Benchmark
134.00 129.00
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.
124.00
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.
99.00
This is being reported for the Investor information only
MUFAPs Recommended Formate 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.
LAKSON OUTLOOK
PERFORMANCE FY17 - YTD December-16 2 Months 3 Months 6 Months 12 Months CY16-YTD 3 Years 5 Years Since Inception
77%
Top 10 Equity Holdings (%age of total assets) Securities
Dealing Days Cut-Off Time Risk Profile Asset Manager Rating
Open-End Asset Allocation Fund 126 106.5451 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 - 1.50% 2.50% None October 11, 2011 Weighted average daily return of KMI30 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)
119.00 114.00 109.00 104.00 Aug-12 Jan-13 Jun-13 Nov-13 Apr-14
Sep-14 Feb-15
Benchmark
Jul-15
Dec-15 May-16 Oct-16
LITF
INVESTMENT COMMITTEE Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Junaid Arshad, ACCA
Chairman
December 2016
Lakson Asset Allocation Developed Markets Fund FUND FACTS
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
WWW Disclosure
During the month of December 2016 the Lakson Asset Allocation Developed Markets Fund generated an absolute return of 0.33% against the benchmark return of 0.91%. The Fund has outperformed the benchmark by 2.32% over CY16TD. Allocation has been taken in T bills (37%), PIBs (31%) and Developed Market Equities (28%). Exposure in equities has been focused on US indices which offer a superior risk/return profile to other Developed Markets.
As of December 31st, 2016 the LAADMF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 2.7 million. If the same were not made the NAV per unit of the LAADMF would be higher by PKR 1.04. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LAADMF.
Fund Type Category Net Assets (PKR Mil.) NAV (31.12.2016) Pricing Mechanism Trustee Auditor Management Fee
Front End Load Back End Load Launch Date Benchmark
Total Expense Ratio (TER) TER 2.48%
(This is inclusive of 0.35% representing Government levies and SECP Fees) Asset Allocation (% of Total Assets) Oct-16 Nov-16 Dec-16
4%
Placements with
28%
Asset Allocation
37%
T-Bill PIBs DM Equities Cash
31%
Developed Markets Equities (Dec-16) QQQ ETF % of Asset Apple Inc 10.87% Microsoft Corp 8.54% Amazon.com Inc 6.28% Facebook Inc 4.80% Alphabet Inc 4.76% Alphabet Inc 4.20% Intel Corp 3.04% Comcast Corp 2.89% Cisco Systems Inc 2.69% Amgen Inc 1.97%
Banks & DIFs
0%
0%
0%
T-Bills
38%
37%
37%
PIBs
33%
31%
31%
(DM) Equities
28%
28%
28%
Cash
1%
4%
4%
Developed Markets
Vanguard S&P 500 Apple Inc Microsoft Corp Exxon Mobil Corp Johnson & Johnson Amazon.com Inc JPMorgan Chase & Co Berkshire Hathaway Inc General Electric Co Facebook Inc Wells Fargo & Co
% of Assets 3.12% 2.46% 1.90% 1.60% 1.55% 1.52% 1.48% 1.44% 1.44% 1.26%
Dealing Days Cut-Off Time Risk Profile Asset Manager Rating
Open-End Asset Allocation Fund 298 116.7576 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 - 1.47% 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)
PERFORMANCE FY17 - YTD December-16 2 Months 3 Months 6 Months 12 Months CY16-YTD 3 Years 5 Years Since Inception
LAADMF 3.07% 0.33% 1.00% 0.59% 3.07% 7.39% 7.39% 22.3% 51.6% 54.7%
Benchmark 3.78% 0.91% 1.58% 1.53% 3.78% 5.07% 5.07% 14.00% 52.15% 57.34%
*The benchmark of the Fund was changed in September 2016.
LAADMF vs. Benchmark 169.00 159.00 149.00 139.00
QQQ ETF (As of Dec-16) Country United States
Weight
Vanguard S&P 500 (As of Dec-2016) Sector
Weight
119.00
95.34%
United States
97.07%
109.00
129.00
China
1.81%
Ireland
1.03%
Singapore
1.24%
Switzerland
0.50%
United Kingdom
0.73%
United Kingdom
0.43%
Netherlands
0.57%
Singapore
0.35%
Leverage as on December 31st, 2016 Non Performing Assets
Nil Nil
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.
LAKSON OUTLOOK
Aug-12 Jan-13 Jun-13 Nov-13 Apr-14
Sep-14 Feb-15
Jul-15
Benchmark
Dec-15 May-16 Oct-16
LAADMF
INVESTMENT COMMITTEE
Disclosures MUFAPs Recommended Formate
99.00
Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Junaid Arshad, ACCA
Chairman
December 2016
11
12
Powershare QQQ ETF (Developed Markets): Allocations Type QQQ US Equity DES and click on Allocations.
Vanguard S&P 500 ETF (Developed Markets): Allocations Type VUSD LN Equity DES and click on Allocations.
LAKSON OUTLOOK
December 2016
13
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.
Last 3 and 5 fiscal years
FY 2012
FY 2013
FY 2014
FY 2015
FY 2016
LAKSON MONEY M A R KE T FU N D ( L M M F )
Fund
11.19%
8.76%
7.90%
8.57%
5.60%
Benchmark
11.31%
9.14%
8.50%
8.45%
5.61%
LAKSON INCOME FUND (LIF)
Fund
11.57%
9.21%
8.38%
14.17%
8.57%
Benchmark
8.86%
9.17%
8.31%
12.64%
7.16%
LAKSON EQUITY FUND (LEF)
Fund
9.74%
40.02%
32.15%
23.93%
10.60%
Benchmark
10.45%
52.20%
25.96%
5.67%
0.37%
LAKSON ASSET ALLOCATION DEVELOPED M A R KE T S FU N D ( L A A D M F )
Fund
6.42%
10.52%
9.64%
7.76%
8.00%
Benchmark
10.63%
13.45%
12.94%
5.34%
2.33%
L A K S O N TA C T I C A L F U N D ( LT F ) *
Fund
5.85%
3.44%
4.24%
8.86%
6.85%
Benchmark
7.25%
7.89%
7.47%
-1.02%
3.18%
LAKSON ISLAMIC TA C T I C A L FUND (LITF)**
Fund
6.23%
5.46%
6.40%
4.96%
4.42%
Benchmark
9.82%
8.50%
10.01%
3.36%
0.05%
*Formerly: Lakson Asset Allocation Global Commodities Fund (LAAGCF) **Formerly: Lakson Asset Allocation Emerging Markets Fund (LAAEMF)
Since Inception Absolute Returns
LMMF vs BENCHMARK
LIF vs BENCHMARK
LEF vs BENCHMARK
LAADMF vs BENCHMARK
LT F v s B E N C H M A R K
LITF vs BENCHMARK
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
FY 2015
FY 2016
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%
176.71%
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.
LAKSON OUTLOOK
December 2016
14
Mutual Funds Performance Comparison Annualized Returns (%): Positions as of January 01, 2017 INCOME FUNDS ABL Income Fund Atlas Income Fund Faysal Financial Sector Opportunity Fund Faysal Savings Growth Fund First Habib Income Fund HBL Income Fund JS Income Fund Lakson Income Fund MCB DCF Income Fund NAFA Financial Sector Income Fund NAFA Income Fund NAFA Income Opportunity Fund NAFA Savings Plus Fund NIT - Income Fund Pakistan Income Fund PICIC Income Fund UBL Income Opportunity Fund
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
4.59 4.51 5.00 0.71 2.67 4.38 6.76 5.27 4.28 4.72 5.40 5.43 5.39 4.59 4.67 5.12 3.20
4.11 5.64 3.07 1.79 4.65 4.63 7.01 5.65 4.62 5.47 5.61 5.35 5.32 4.67 4.96 4.86 4.60
5.53 N/A 3.80 3.01 4.58 3.88 8.11 5.88 5.13 N/A N/A N/A N/A 4.96 5.18 4.69 4.90
5.37 6.30 3.88 3.57 4.67 4.08 7.42 5.82 4.67 5.79 6.39 6.45 5.59 4.57 4.57 4.92 7.22
5.81 6.71 4.8 4.8 5.05 4.71 7.28 6.64 4.99 6.05 6.58 6.61 5.86 5.12 4.93 6.64 7.12
5.27 (1.23) 5.04 3.82 4.98 3.26 (6.48) 6.40 3.71 (1.15) 4.85 4.79
6.52 7.59 5.90 3.97 7.04 4.21 4.14 6.31 4.86 8.17 5.65 4.53
6.44 6.78 5.55 4.84 N/A 6.13 4.23 5.40 5.44 7.14 N/A 7.07
5.66 6.22 5.28 4.31 5.74 5.43 4.53 5.02 4.62 6.45 5.45 6.29
5.83 5.71 5.65 4.5 5.55 5.99 4.2 4.83 4.8 5.72 5.5 6.62
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
5.30 4.33 4.85 5.12 4.89 5.39 5.03 3.57 5.18 5.25 4.99 5.33 5.77 5.57 5.11 5.62 5.39 5.44 5.64 5.00 4.09
5.05 4.40 4.90 5.08 4.90 5.32 4.97 3.75 4.93 5.29 4.93 5.11 5.45 5.41 5.23 5.62 5.34 5.34 5.10 4.80 4.29
5.45 4.54 5.14 5.47 N/A N/A N/A 3.79 5.24 5.30 4.77 N/A N/A N/A N/A N/A N/A N/A 5.19 4.99 4.63
5.64 4.76 4.99 5.24 5.05 5.48 5.20 3.92 5.42 5.22 4.80 5.28 5.53 5.34 5.47 6.06 5.43 5.56 5.18 5.36 4.78
5.63 4.92 5.01 5.26 5.13 5.56 5.26 4.04 5.46 5.22 4.81 5.42 5.59 5.38 5.67 6.24 5.53 5.61 5.4 5.3 4.82
5.02 3.61 4.55
4.98 4.11 4.53
4.88 4.20 4.64
4.91 4.06 4.66
4.88 4.06 4.59
ISLAMIC INCOME FUNDS ABL Islamic Income Fund Al Ameen Islamic Sovereign Fund Alfalah GHP Islamic Income Fund Askari Islamic Income Fund Atlas Islamic Income Fund Faysal Islamic Savings Growth Fund JS Islamic Government Securities Fund MCB Islamic Income Fund Meezan Islamic Income Fund Meezan Sovereign Fund NAFA Riba Free Savings Fund Pak Oman Advantage Islamic Income Fund MONEY MARKET FUNDS ABL Cash Fund AKD Cash Fund Alfalah GHP Cash Fund Alfalah GHP Money Market Fund Askari Sovereign Cash Fund Atlas Money Market Fund Atlas Sovereign Liquid Fund BMA Empress Cash Fund Faysal Money Market Fund First Habib Cash Fund HBL Money Market Fund JS Cash Fund Lakson Money Market Fund MCB Cash Management Optimizer NAFA Government Securities Liquid Fund NAFA Money Market Fund Pakistan Cash Management Fund PICIC Cash Fund PIML Daily Reserve Fund UBL Liquidity Plus Fund UBL Money Market Fund ISLAMIC MONEY MARKET FUNDS Al Ameen Islamic Cash Fund HBL Islamic Money Market Fund Meezan Cash Fund Note: NA - Not Available. Source: MUFAP.
LAKSON OUTLOOK
December 2016
15
Mutual Funds Performance Comparison Annualized Returns (%): Positions as of January 01, 2017 AGGRESSIVE INCOME FUNDS
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
AKD Aggressive Income Fund Alfalah GHP Income Multiplier Fund Askari High Yield Scheme BMA Chundrigar Road Savings Fund Faysal Income & Growth Fund Pakistan Income Enhancement Fund United Growth & Income Fund
4.58 5.05 2.26 5.54 (0.34) 4.51 3.41
4.95 5.47 3.49 5.03 0.11 3.97 3.18
6.32 5.40 4.51 5.12 2.10 3.92 8.73
5.96 6.26 4.35 6.03 3.87 4.23 8.97
8.77 7.2 5.85 8.19 5.77 5.24 10.86
3.63 5.04
4.39 5.34
4.94 N/A
5.42 5.94
6.67 6.16
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
13.56 5.90 11.17 11.23 11.76 14.57 8.73 11.97 11.07 9.88 8.99 11.35 11.39 11.39 10.80 8.84 11.61 10.85 10.93 9.85
18.56 12.69 18.03 18.29 16.45 22.11 13.01 16.61 15.23 22.61 16.20 16.39 17.00 18.64 18.54 19.12 16.36 16.18 17.40 15.66
30.12 40.52 24.07 23.98 20.80 N/A 21.67 24.17 22.02 N/A 34.10 N/A 24.65 27.88 N/A 33.34 29.87 23.66 27.43 23.36
41.33 55.33 32.84 33.02 31.48 44.67 32.02 31.26 28.99 39.63 34.71 33.91 34.07 39.84 44.94 46.53 39.93 29.98 30.14 33.22
45.21 50.7 36.16 36.16 26.39 49.47 36.84 35.7 31.53 41.8 39.13 37.36 40.69 40.39 51.45 48.43 36.33 32.22 37.1 33.86
13.25 10.97 11.74 11.42 11.86 8.12 11.86 11.94
17.72 16.61 18.00 19.63 17.09 16.98 17.61 16.07
27.06 25.03 24.11 21.85 24.28 N/A 24.58 22.64
35.76 33.81 36.76 31.46 31.32 45.29 37.71 25.58
39.6 N/A 44.38 37.93 34.82 54.11 45.11 34.05
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
5.66 7.68 7.38 9.39 6.70
8.91 11.87 13.38 14.88 9.55
11.37 15.01 N/A 21.51 19.06
15.09 22.09 33.33 29.73 21.91
9.5 23.03 37.37 31.24 23.85
9.44 7.29
13.62 10.94
17.17 14.64
21.73 22.04
24.73 27.12
ISLAMIC AGGRESSIVE INCOME FUNDS Al Ameen Islamic Aggressive Income Fund NAFA Islamic Aggressive Income Fund EQUITY FUNDS ABL Stock Fund AKD Opportunity Fund Alfalah GHP Alpha Fund Alfalah GHP Stock Fund Askari Equity Fund Atlas Stock Market Fund First Capital Mutual Fund First Habib Stock Fund HBL Stock Fund JS Growth Fund JS Large Cap Fund JS Value Fund Lakson Equity Fund MCB Pakistan Stock Market Fund NAFA Stock Fund National Investment Unit Trust PICIC Energy Fund PICIC Stock Fund PIML Value Equity Fund United Stock Advantage Fund ISLAMIC EQUITY FUNDS ABL Islamic Stock Fund Al Ameen Islamic Dedicated Equity Fund Al Meezan Mutual Fund Alfalah GHP Islamic Stock Fund HBL Islamic Stock Fund JS Islamic Fund Meezan Islamic Fund PIML Islamic Equity Fund BALANCED FUNDS Faysal Balanced Growth Fund HBL Multi Asset Fund NAFA Multi Asset Fund Pakistan Capital Market Fund Unit Trust of Pakistan ISLAMIC BALANCED FUNDS First Habib Islamic Balanced Fund Meezan Balanced Fund
Note: NA - Not Available. Source: MUFAP.
LAKSON OUTLOOK
December 2016
16
Mutual Funds Performance Comparison Annualized Returns (%): Positions as of January 01, 2017 ASSET ALLOCATION FUNDS
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
9.69 8.19 6.17 0.32 5.37 4.36 1.07 7.11 8.87 4.92
15.52 10.59 3.55 0.58 8.71 6.37 2.00 13.52 15.87 7.31
23.35 13.29 7.30 2.74 12.12 11.75 3.51 N/A 23.78 10.59
33.84 19.59 11.40 4.23 13.99 15.45 5.10 31.89 28.20 15.38
38.85 13.78 5.15 7.38 16.44 16.34 6.43 35.85 32.82 19.65
4.79 8.47 4.19 7.60 8.96 10.49
8.01 11.25 6.44 11.85 15.73 15.28
11.17 14.91 6.79 N/A 22.35 22.49
14.93 22.53 7.87 26.93 25.90 34.57
17.48 21.7 9.28 32.32 33.29 36.08
CAPITAL PROTECTED FUNDS
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
HBL Mustahekum Sarmaya Fund 1 JS Capital Protected Fund V Pakistan Sarmaya Mehfooz Fund
1.00 0.82 0.80
2.65 1.71 1.70
5.01 N/A 2.50
6.66 N/A 6.40
8.42 N/A 4.96
6.23 8.08
9.19 13.56
N/A N/A
19.51 28.10
21 30.45
Alfalah GHP Value Fund Askari Asset Allocation Fund Faysal Asset Allocation Fund Lakson Asset Allocation Developed Markets Fund Lakson Tactical Fund MCB Pakistan Asset Allocation Fund MCB Pakistan Frequent Payout Fund NAFA Asset Allocation Fund Pak Oman Advantage Asset Allocation Fund UBL Asset Allocation Fund ISLAMIC ASSET ALLOCATION FUNDS Al Ameen Islamic Asset Allocation Fund Askari Islamic Asset Allocation Fund Lakson Islamic Tactical Fund NAFA Islamic Asset Allocation Fund Pak Oman Islamic Asset Allocation Fund Pakistan Int'l Element Islamic Asset Allocation Fund
ISLAMIC CAPITAL PROTECTED FUNDS NAFA Islamic Principal Protected Fund I NAFA Islamic Principal Protected Fund II
Note: NA - Not Available. Source: MUFAP.
LAKSON OUTLOOK
December 2016
17
Markets Information Equities TOTAL RETURN IN PKR AND %
MARKETS
INDEX
YTD
3M
World Developed
1Y
MSCI All Country World Index
5.6%
0.8%
4.9%
MSCI World Index
5.3%
1.5%
4.5%
5Y
TOTAL RETURN IN USD AND %
YTD
3M
1Y
5Y
63.6%
5.6%
0.8%
4.9%
40.8%
72.0%
5.3%
1.5%
4.5%
48.1%
Emerging
MSCI Emerging Markets Index
8.6%
-4.6%
8.9%
9.3%
8.6%
-4.6%
8.9%
-5.9%
Europe
MSCI Europe Index
-3.4%
-0.7%
-4.4%
36.1%
-3.4%
-0.7%
-4.4%
17.2%
China
CSI 300
-11.3%
1.7%
-12.1%
63.9%
-11.3%
1.7%
-12.1%
41.1%
Dubai
DFM
0.0%
0.0%
0.0%
238.4%
0.0%
0.0%
0.0%
191.3%
India
BSE Sensex 30
1.9%
-4.4%
2.6%
100.1%
1.9%
-4.4%
2.6%
72.3%
Japan
Nikkei 225
0.4%
16.2%
0.4%
162.6%
0.4%
16.2%
0.4%
126.1%
Malaysia
FTSE Bursa
-3.0%
-0.7%
-3.0%
24.6%
-3.0%
-0.7%
-3.0%
7.3%
Pakistan
KSE 100
45.7%
17.9%
45.6%
321.3%
45.7%
17.9%
45.6%
262.7%
Sri Lanka
Colombo All Share
-9.7%
-4.7%
-9.3%
18.7%
-9.7%
-4.7%
-9.3%
2.2%
UK
FTSE 100
14.4%
3.5%
13.8%
48.9%
14.4%
3.5%
13.8%
28.2%
US
DJIA
13.4%
7.9%
12.3%
87.9%
13.4%
7.9%
12.3%
61.8%
US
S&P 500
9.5%
3.3%
8.5%
106.8%
9.5%
3.3%
8.5%
78.0%
US
NASDAQ 100
5.9%
-0.2%
4.5%
148.0%
5.9%
-0.2%
4.5%
113.5%
Germany
DAX Index
6.9%
9.2%
6.9%
126.1%
6.9%
9.2%
6.9%
94.6%
CANADA
TSX 300 Composite Index
17.5%
3.8%
16.3%
48.5%
17.5%
3.8%
16.3%
27.9%
France
CAC - 40
4.9%
9.3%
4.0%
78.7%
4.9%
9.3%
4.0%
53.9%
Brazil
Sao Paulo SE Bovespa Index
38.9%
3.2%
38.9%
23.2%
38.9%
3.2%
38.9%
6.1%
Korea
Korea SE Kospi
3.3%
-0.8%
3.3%
28.9%
3.3%
-0.8%
3.3%
11.0%
Taiwan
Taiwan SE Weighted Index
11.0%
0.9%
11.8%
52.0%
11.0%
0.9%
11.8%
30.8%
-30%
-5%
20%
45%
70%
KSE SECTORS Automobile and Parts
133.4%
17.9%
133.4% 1325.6% 133.4%
17.9%
133.4%
1127.4%
Banks
30.4%
16.8%
30.4%
182.7%
30.4%
16.8%
30.4%
143.4%
Chemicals
-60.4%
26.7%
-60.4%
-29.4%
-60.4%
26.7%
-60.4%
-39.2%
Construction and Materials
58.2%
21.1%
58.2%
1212.6% 58.2%
21.1%
58.2%
1030.1%
10.2%
2.7%
10.2%
231.4%
2.7%
10.2%
Electricity Fixed Line Telecommunication
10.2%
-100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0%
185.4% -100.0%
Food Producers
11.2%
18.5%
11.2%
153.1%
11.2%
18.5%
11.2%
Oil and Gas
58.9%
20.7%
58.9%
59.3%
58.9%
20.7%
58.9%
117.9% 37.1%
Personal Goods
6.7%
16.6%
6.7%
240.6%
6.7%
16.6%
6.7%
193.3%
YTD 3-mo
Fixed Income MONEY MARKET
CURRENT INTERBANK RATES
HISTORIC 6M INTERBANK RATES
1M
3M
6M
12 M
YTD
3M
1Y
5Y
China
SHIBOR
2.87%
3.04%
3.06%
3.15%
NA
2.91%
2.98%
3.43%
Dubai
UAE IBOR
0.77%
1.41%
1.67%
2.10%
NA
1.55%
1.36%
1.12%
India
MIBOR
7.68%
7.80%
NA
NA
NA
NA
NA
NA
Japan
TIBOR
0.03%
0.06%
0.11%
0.13%
0.14%
0.11%
0.15%
0.20%
Malaysia
KLIBOR
3.16%
3.41%
3.52%
3.62%
3.70%
3.52%
3.71%
3.78%
Pakistan
KIBOR
6.26%
6.10%
6.12%
6.41%
6.20%
6.06%
6.23%
6.92%
Sri Lanka
SLIBOR
10.55%
11.00%
11.51%
12.00%
10.27%
11.50%
10.02%
8.60%
UK
LIBOR
0.26%
0.39%
0.55%
0.79%
0.65%
0.55%
0.66%
0.69%
US
SIBOR
0.62%
0.93%
1.29%
1.64%
1.04%
1.26%
1.01%
0.73%
Govt. Securities vs. KIBOR 8.00% 7.75% 7.50% 7.25% 7.00% 6.75% 6.50% 6.25% 6.00% 5.75% 5.50% 5.25% 5.00%
Interbank Dec 16
1W CURRENT MARKET YIELDS
GOVERNMENT SECURITIES
HISTORIC 12M PAPER RATES
3M
6M
1Y
2Y
12M Yields of Government Securities China
3M
12 M
5Y
10 Y
YTD
3M
1Y
2Y
China
2.63%
2.32%
2.73%
2.95%
2.26%
2.19%
2.27%
2.42%
India
India
8.31%
6.05%
#N/A
6.25%
6.82%
6.42%
6.86%
7.29%
Japan
Japan
-0.34%
-0.30%
-0.09%
0.03%
-0.28%
-0.31%
-0.27%
-0.15%
Malaysia
3.13%
3.21%
4.04%
4.41%
2.70%
2.73%
2.71%
2.96%
Malaysia Pakistan
Pakistan
5.85%
5.91%
7.07%
8.09%
6.00%
5.87%
6.03%
6.71%
Sri Lanka
11.00%
12.00%
NA
NA
10.75%
11.99%
10.49%
8.98%
Sri Lanka
UK
0.31%
0.12%
0.61%
1.42%
0.28%
0.14%
0.29%
0.37%
UK
US
0.48%
0.77%
1.84%
2.38%
0.57%
0.65%
0.58%
0.42%
US 0%
LAKSON OUTLOOK
1M
Govt. Sec. Dec 16
3%
6%
9%
12%
December 2016
18
Markets Information Commodities CURRENT PRICE
TOTAL RETURN
COMMODITY
UNIT
YTD
3M
1Y
DB Commodity Index
USD Excess Return
19.2%
5.4%
20.1%
-37.6%
5Y 329.1
S&P Global Commodity Index
USD Total Return
11.4%
5.8%
12.3%
-50.5%
2417.3
110 100
120
Dow Jones UBS Commodity Index
USD Total Return
11.8%
2.7%
12.4%
-37.4%
176.9
Coal
USD/Tonne
74.7%
22.4%
73.7%
N.A
88.4
Copper
USc/lbs
17.4%
13.3%
16.7%
-27.1%
250.6
Cotton
USc/lbs
11.6%
3.5%
10.4%
-23.0%
70.7
80
Gold
USD/t oz.
8.6%
-12.3%
8.7%
-26.5%
1151.7
70
Palm Oil
USD/Tonne
28.7%
6.7%
34.7%
-28.5%
717.2
Sugar
USc/lbs
28.0%
-13.4%
28.8%
-16.3%
19.5
Wheat
USD/Bushel (60Ibs)
-13.2%
1.5%
-13.1%
-37.5%
4.1
WTI
USD/bbl
45.0%
11.4%
46.8%
-45.6%
53.7
Brent Crude
USD/bbl
52.4%
15.8%
55.8%
-47.1%
56.8
Heating Oil
USd/Gallon
54.8%
11.5%
57.9%
N.A
170.4
RBOB Gasoline
USD/Gallon
31.4%
11.9%
35.4%
-38.0%
1.7
Natural Gas
USD/MMBTU
59.3%
28.1%
68.2%
24.6%
3.7
Silver
USD/t Ozs
15.8%
-16.8%
15.5%
-42.7%
16.0
DBCI
SPGSCI
DJUBS
90
60 50 Dec-15
Feb-16
Apr-16
Jun-16
Aug-16
Oct-16
Dec-16
Currencies CURRENT EXCHANGE RATES
TOTAL RETURN
YTD
3M
1Y
5Y
190
Canadian Dollar
CAD
2.72%
-2.52%
2.72%
2.72%
CAD - PKR
77.60
Euro
EUR
-4.28%
-6.59%
-4.28%
-4.28%
EUR - PKR
109.74
150
Indian Rupee
INR
2.47%
-13.53%
2.47%
2.47%
INR - PKR
0.89
130
Japanese Yen
JPY
2.47%
-13.53%
2.47%
2.47%
JPY - PKR
0.89
Pound Sterling
GBP
-17.12%
-5.07%
-17.12%
-17.12%
GBP - PKR
128.76
Singaporian Dollar
SGD
-2.79%
-5.98%
-2.79%
-2.79%
SGD - PKR
72.08
US Dollar
USD
-0.49%
-0.08%
-0.49%
-0.49%
USD - PKR
104.37
EUR
CAD
USD
110 90 70 Dec-15
LAKSON OUTLOOK
GBP
170
Jan-16
Mar-16
Apr-16
May-16
Jul-16
Aug-16
Oct-16
Nov-16
December 2016
19
LAKSON OUTLOOK
December 2016
TRANSA CTION L OCATIONS 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 Insurance
Lakson Business Solution
Century Paper Merit Packaging & Board Mills Limited
Accuray Surgicals
