May 2016
Lakson Outlook Economic and Markets Review FMR Lakson Money Market Fund FMR Lakson Income Fund FMR Lakson Equity Fund FMR Lakson Asset Allocation Developed Markets Fund FMR Lakson Asset Allocation Emerging Markets Fund FMR Lakson Tactical Fund (Formerly: FMR Lakson Asset Allocation Global Commodities Fund)
Mutual Funds Performance Comparison Markets Information
Rated AM2- by PACRA
Business Principles
Our investors' interests always come first. We believe that if we serve our clients well, our own success will follow. Integrity and honesty are at the heart of our business. We expect our people to maintain high ethical standards. Our commitment to our clients, integrity, professional excellence, entrepreneurial spirit and teamwork will set us apart. Our firm shares bonuses with all employees - not just top management, but also those who perform standard administrative and clerical duties. Our goal is to provide superior returns to our shareholders. Profitability is critical to achieving superior returns, building our capital, and attracting and keeping the best people. Our business is highly competitive and we will aggressively seek to expand our client relationships. However, we are always fair competitors and never denigrate other firms.
Table of contents Economic & Markets Review
04 - 05
Lakson Money Market Fund
06
Lakson Income Fund
07
Lakson Equity Fund
08
Lakson Asset Allocation Global Commodities Fund
09
Lakson Asset Allocation Developed Markets Fund
10 - 11
Lakson Asset Allocation Emerging Markets Fund
12
Funds Return History
13
Mutual Funds Performance Comparison
14 - 16
Markets Information
17 - 18
03
Lakson Outlook - May 2016
Economic & Markets Review - Pakistan Economy Despite CPI rising to a 1.5yr high of 4.17% in Apr'16 (May'16: 3.17%), the SBP cut interest rates by 25bps to 5.75%-6.25% in its May'16 MPS. Factors motivating the rate cut included below-target CPI (11MFY16: 2.8%), a contained current account deficit at 1% of GDP and rising FX reserves. At the very least, the SBP's surprise rate cut now minimizes the possibility of a liftoff in interest rates during 2016. The external side remained comfortable with total FX reserves of over USD 21.5 billion and the SBP's own reserves of USD 16.8 billion providing import cover of almost 5 months. Further comfort is drawn from the current a/c posting a surplus of USD 100 million in Apr'16 even as worker remittance growth has started to plateau. Buoyant external flows have aided currency stability, with the PKR shedding a contained 3.0% FYTD/0.1% CYTD vs. the USD. However, upcoming USD denominated debt repayments coupled with potential macro indiscipline post IMF program completion in Sep'16 may add latent pressure to the PKR. On the real side, LSM grew by a strong 6.7% YoY to bring 9MFY16 LSM growth to 4.7% YoY. Impressive growth has been posted by Pharmaceuticals (+7.2% YoY), Chemicals (+10.0% YoY), Autos (+23.4% YoY), Fertilizer (+15.9% YoY) and Rubber (+11.7% YoY). Other key data points include (i) FBR tax collection in 9MFY16 up an impressive 18% YoY to PKR 2.10 trillion, (ii) 10MFY16 FDI up 5%YoY to USD 1.02 billion primarily on Chinese investment in the power sector and (iii) credit to private sector jumping by 10.9%YoY in Apr'16, partly due to higher working capital requirements of the Fertilizer sector. The next key checkpoint for the Pakistan Economy is the FY17 Federal Budget. While the Budget could be a mixed bag for sectors, no major change is expected in the context of the overall economy. In terms of direction, the GoP could look to balance reforms with some populist measures given it is the 2nd last Budget of its term. Fixed income Two T-bill auctions were conducted in May'16 with a cumulative target of PKR 300 billion. Total amount raised was PKR 502.0 billion vs. bids of PKR 1.0 trillion across the two auctions. While yields ranged from 6.20%-6.25% in the first auction, the post-MPS auction saw yields adjust to the 5.99%-6.01% range. There was also a noticeable shift in the bid pattern with a reduced preference for the 3M tenor. All bids in the May'16 PIB auction; bids totaled PKR 83.65 billion vs. a target of PKR 50 billion and were reported at having taken place at 10-30bps below the previous auction. This was later explained by the SBP's rate cut over the weekend, where the scrapping of the PIB auction appears to have given a signal in retrospect. Going forward, given the apparent adjustment in money market expectations for the monetary policy outlook, interest in longer term tenors could potentially revive again, especially in the wake of the upcoming PIB maturity in July/August. Equity Market The Index gained 3.9% MoM, negating traditional May weakness due to optimism over the upgrade to the MSCI Emerging Markets Index, some easing of political pressure and an oilled improvement in commodities. Volumes and traded value of 271 million/USD 107 million remained robust as a sign of market optimism around these factors. Foreign portfolio investor inflow for the month clocked in at USD 3.6 million, the first net inflow in 11 months. Major outflow persisted in Banks (-USD 10.0 million) while OMCs and Cements saw a net inflow of USD 13.8 million and USD 8.5 million respectively. The Index now trades a forward P/E of 9.5x; at a discount of 10%/22% to the Frontier Market/Emerging Market indices. Major outperformers were Textile (+27%), E&Ps (+7%) and Power (+5%), while Banks (-0.3%) and Insurance (-2%) were among the laggards. Important corporate events in May that helped the rally were: (i) GoP raised OMC margins on petrol/HSD by PkR0.06/liter and linked them to CPI for quarterly revisions, (ii) ECC and Baluchistan government leased Sui field to PPL for another 10 years and revised its gas price formula to 55% of the 2012 Policy (in effect increasing well-head gas prices for PPL by ~60%). Right at the end of the month, however, FCCL suffered an accident at its plant, which ruptured its coal mill and thus rendered Line II of the plant unavailable for production for an estimated 6 months.
Yield Curve
12.0% 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 1W
2M
6M
2Y
29-Apr-16
5Y
8Y 31-May-16
USD/PKR vs. Forex Reserves Forex Res. (USD bn.) - RHS
105.5
USD/PKR
21.0
20.0
104.5
19.0
103.5
18.0 2-May
9-May
16-May
Market Rates 7.0%
6.0%
5.0%
4.0% 2-May
11-May
6M KIBOR
20-May
O/N Repo Rate
29-May 6M T-Bill
SBP cut interest rates by 25bps.
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.
04
15Y
Lakson Outlook - May 2016
Economic & Markets Review - International Developed Markets Developed markets (MSCI World Index) were up 0.23% in May. The US market held up (S&P 500 +1.63%) amid hopes of an improvement in GDP numbers going forward. Fed Chairman Janet Yellen stated another rate hike was possible (next MPS in June). The MSCI Europe Index (+1.48%) was propelled by the European Central Bank's guidance on expanded quantitative easing and assurance of continued recovery in the Eurozone (1Q GDP grew faster than expected). Japanese stocks lost 3.41% in May amid strengthening Yen and a bleaker outlook for exports. Emerging Markets Emerging markets (MSCI Emerging Markets Index) were down 3.9% in May. The major underperformer was Brazil (-10.09%) which was rocked by the impeachment of their President Dilma Rousseff (amid corruption allegations). Russian equities (-4.92%) were led by strengthening Ruble and better oil prices. Asian equities, however, underperformed amid unimpressive Chinese economic data (one PMI index showed decline).
Performance of Equities & Commodities 120%
100%
80%
60% May-15
Commodities market WTI prices rose 6.93% in May, extending the CYTD rally to 30.5%. Oil prices are now finding consolidation around the USD 50/bbl mark with headwinds emanating from (i) no change in production policy expected in the June 2nd OPEC meeting, (ii) increasing likelihood of the US Federal Reserve raising rates in the summer months and (iii) increasing feasibility of shale oil production above the USD 50/bbl mark. Led by oil, the broader commodity index (TRJ-CRB) rose 0.84% MoM, to stand at its highest level since Nov'15. International urea came down 0.49% and cotton prices gained 2.39% to stand at US$195/ton and USc72.95/lb respectively.
MSCI World Index MSCI EM Index DB Commodity Index
Aug-15
Nov-15
Feb-16
May-16
Valuations of International Markets
20 16 12 8 4 -
DM
US
UK
Japan Canada EM
Brazil Russia India
P/E Multiple
WTI prices rose 6.93% in May.
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.
05
Lakson Outlook - May 2016
China
Lakson Money Market Fund
MUFAPs 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 5.55% against the benchmark return of 5.28% in May 2016. The Fund outpeformed the benchmark by 0.27%. Over the last 12 months the Fund has outperformed the benchmark by 0.13% and generated a return of 5.87%. Asset allocation to T bills remained stable around 25% while cash holdings increased to 75%. The higher cash position meant that portfolio WAM continued to decline and was recorded at 18 days. With the end of the fiscal year fast approaching, the Fund will look to lock in term placements with Banks and DFIs at attractive rates in order to maintain a competitive portfolio yield. WWF Disclosure As of May 31st, 2016 the LMMF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 55.0 million. If the same were not made the NAV per unit of the LMMF would be higher by PKR 1.33. If the LMMF would not have made the WWF provisions during FY16, the year to date annualized return of the LMMF for FY16 would be higher by 0.05%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LMMF.
Asset Allocation
Credit Split
AAA AA+5% 18%
AA 66% AA 70%
Cash 75%
Asset Allocation Instruments Placements with Banks & DFIs PIBs T Bills Cash Others including receivables
Mar-16 Apr-16 May-16 % of Total Assets 17% 16% 0% 0% 0% 0% 32% 27% 24% 51% 56% 75% 0% 1% 0%
WAM* Days 0 0 71 0
* Weighted Average Maturity
Non Compliant Investments Name of Non - Compliant Type of Investment Instrument
Value of Investment before
Total Value of % of Net % of Total Provisioning Investment Assets Assets Held after
Provisioning Pak Brunei Investment Co. Pak Oman Investment Co.
COI COI
600,000,000 600,000,000
Provisioning -
Disclosures Leverage as on May 31st, 2016 Non Performing Assets WAM of Portfolio
Nil. Nil. 18 Days
Open-End Money Market Fund 4,344 105.353 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 Front End Load None Back End Load None Launch Date November 13, 2009 Benchmark 50% Average 3M T-bills yield + 50% Average 3M TDR rate of minimum AA rated banks. Dealing Days Mon - Fri Cut-Off Time 4:00 PM Fund Rating 'AA' by PACRA (31.12.2015) Risk Profile Low Risk Asset Manager Rating AM2- by PACRA (31.03.2016)
Performance
Govt Sec 16%Sec Govt 24%
T-Bills 24%
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (31.5.2016) Pricing Mechanism Trustee Auditor Management Fee
600,000,000 10.56% 600,000,000 10.56%
Morningstar FY16 - YTD May-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD
LMMF 5.57% 5.69% 5.74% 5.62% 5.59% 5.87% 5.70%
Benchmark 5.64% 5.41% 5.34% 5.34% 5.41% 5.74% 5.37%
Simple Annualized FY16 - YTD May-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD 3 Years 5 Years Since Inception
LMMF 5.56% 5.55% 5.61% 5.51% 5.51% 5.87% 5.61% 7.98% 10.07% 11.85%
Benchmark 5.62% 5.28% 5.22% 5.24% 5.34% 5.74% 5.28% 8.33% 10.44% 12.10%
Please note that the benchmark of the fund was changed in February 2014. Benchmark calculation of tenors which include months prior to February 2014 incorporate the old benchmark as well.
LMMF vs. Benchmark 115 114 113 112 111 110 109 108 107 106 105 104 103 102 101 100 Jun-14
`
Sep-14
Dec-14
Mar-15
Jun-15
Benchmark
10.39% 10.39%
Sep-15
Dec-15
Mar-16
LMMF
Investment Committee Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah
Chairman
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.
06
Lakson Outlook - May 2016
Lakson Income Fund
MUFAPs 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 During May 2016 the LIF generated an annualized return of 8.05% against the benchmark return of 8.41%. The LIF underpeformed the benchmark by 0.36%. Over 11MFY16 the LIF has outperformed the average income fund by 1.40%. Asset allocation remained similar with the only change a slight increase in cash and MTS exposure. As a result the WAM of the portfolio remained stable at 481 days. As uncertainty over the monetary environment increases the Fund will look to rebalance its portfolio and reduce interest rate risk. WWF Disclosure As of May 31st, 2016 the LIF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 15.7 million. If the same were not made the NAV per unit of the LIF would be higher by PKR 0.43. If the LIF would not have made the WWF provisions during FY16, the year to date annualized return of the LIF for FY16 would be higher by 0.12%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LIF.
Asset Allocation
Credit Split Unrated 2%
Placements with Banks/ DFIs 21% Cash 46%
Other 2%
Sukuk 1% MTS TFCs 2% 5%
Open-End Income Fund 4,015 108.7710 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 1.50% 1.50% None November 13, 2009 Average of returns earned by the Income Funds in the industry Dealing Days Mon - Fri Cut-Off Time 4:00 PM Fund Rating 'A+' by PACRA (31.12.2015) Risk Profile Medium Risk Asset Manager Rating AM2- by PACRA (31.03.2016)
Govt Sec 23%
PIB 17%
A+ 51%
Unrated 0.27%
AA 8%
Performance AAA 2%
AA13%
T-Bill 6%
TFCs/Sukuk Portfolio Name of the Issuer Habib Bank Limited I Bank Al Falah Limited V Askari Bank Limited IV K-Electric AZM Sukuk III Bank Al Habib Limited IV
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (31.5.2016) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark
Issue Date 19-Feb-16 20-Feb-13 23-Dec-11 24-Feb-14 30-Jun-11
Rating % of Total Assets AAA 1.87% AA1.65% AA1.41% AA 1.04% AA 0.51%
Morningstar FY16 - YTD May-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD
LIF 8.53% 8.35% 5.71% 5.78% 7.35% 8.72% 7.45%
Benchmark 7.12% 8.74% 5.10% 5.79% 6.73% 6.62% 6.31%
Simple annualized FY16 - YTD May-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD 3 Years 5 Years Since Inception
LIF 8.50% 8.05% 5.58% 5.66% 7.22% 8.72% 7.29% 11.41% 12.84% 14.40%
Benchmark 7.10% 8.41% 4.99% 5.67% 6.62% 6.62% 6.20% 11.41% 12.84% 14.40%
Asset Allocation Instruments Placements with Banks & DFIs PIBs T Bills TFCs Sukuks MTS Cash Others including receivables
Mar-16
Apr-16
May-16
25% 18% 11% 5% 1% 0% 39% 1%
% of Total Assets 24% 17% 11% 5% 1% 1% 39% 1%
21% 17% 6% 5% 1% 2% 46% 1%
LIF vs. Benchmark
WAM*
124
Days 38 1816 0 2444 999 46 0
122 120 118 116 114 112 110 108 106 104 102 100 Jun-14
* Weighted Average Maturity
Soneri Bank Limited
Dec-14
Mar-15
Jun-15
Benchmark
Non Compliant Investments Name of Non - Compliant Investment
Sep-14
Dec-15
Mar-16
LIF
Investment Committee
Type of Instrument
Value of Investment before Provisioning
TDR
400,000,000
Disclosures Leverage as on May 31st, 2016 Non Performing Assets WAM of Portfolio
Sep-15
Total Provisioning Held
-
Nil. Nil. 481 Days
Value of Investment after Provisioning
% of Net Assets
400,000,000 10.07%
% of Total Assets
9.96%
Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah
Chairman
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.
07
Lakson Outlook - May 2016
Lakson Equity Fund
MUFAPs 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 posted a return of 2.82% in May'16, under performing the benchmark return of 2.85% by 0.03%. On a FYTD basis the Fund has outperformed the KSE-30 Index benchmark by 11.35% and generated a return of 7.68%. LEF increased overall equity exposure from 84% to 90% as the market saw renewed interest in the lead up to the potential upgrade of Pakistan to the MSCI Emerging Markets Index. Exposure was increased in Chemicals, Oil & Gas, Electricity and Commercial Banks while gains were booked in Construction & Materials. Top 10 holdings of the Fund show increased exposure to stocks that will become part of the MSCI Emerging Markets Index and stand to benefit from both foreign and domestic investor interest. WWF Disclosure As of May 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 0.81. If the LEF would not have made the WWF provisions during FY16, the year to date return of the LEF for FY16 would be higher by 0.00%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LEF.
Top 10 Holdings
Asset Allocation 7.18% 6.08% 5.57% 5.53% 5.37% 5.06% 4.92% 4.90% 4.76% 4.27%
Sectorwise Exposure
Apr-16
May-16
Chemicals Const. & Mat. Oil & Gas Electricity Comm Banks Others
11.44% 23.16% 15.58% 8.36% 12.97% 12.41%
14.18% 20.49% 17.56% 10.62% 14.44% 11.37%
Cash 10%
Equity 90%
Sectorwise Exposure Others
LEF
KSE-30
7.68% 2.82% 6.44% 13.90% 13.81% 12.57% 9.22% 76.76% 165.08% 224.23%
-3.67% 2.85% 8.42% 13.05% 9.62% -0.94% 7.78% 23.11% 76.35% 117.33%
FY16 - YTD May-16 2 Months 3 Months 6 Months 12 Months CY16- YTD 3 Years 5 Years Since Inception
*Returns based on last working day NAV
LEF vs. Benchmark 300
Commercial Banks
Const. & Mat.
Electricity
250 200 150 100
May-16 90% 0% 10% 0%
LEF
Apr-16
May-16
Mar-16
Jan-16
Feb-16
Dec-15
Oct-15
KSE-100
Nov-15
Sep-15
Jul-15
0
Aug-15
50
Jun-15
Apr-16 84% 0% 16% 1%
Apr-15
Mar-16 82% 0% 16% 2%
May-15
Equities T-Bills Cash Others
Performance
Chemicals
Oil & Gas
Asset Allocation (% of Total Assets)
Open-End Equity Fund 2,758 112.3318 Forward Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 2.00% 3.00% None November 13, 2009 KSE-30 Index Mon-Fri 4:00 PM High Risk AM2- by PACRA (31.03.2016)
Mar-15
Engro Corporation Limited Habib Bank Limited DG Khan Cement Limited Lucky Cement Limited Pakistan State Oil Limited United Bank Limited Pioneer Cement Limited Oil & Gas Development Co Pak Petroleum Limited Hub Power Co
Fund Facts
Fund Type Category Net Assets (PKR Mil.) NAV (31.5.2016) 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
KSE-30
Pakistan vs. Global Markets Country Pakistan India Malaysia Dubai USA USA
Index KSE-100 BSE Sensex 30 FTSE KLCI DFM General DJIA S&P 500
* Source: Reuters, Bloomberg
Disclosures Leverage as on May 31, 2016 Non Performing Assets
1M Return 3.87% 4.14% -2.79% -5.10% 0.08% 1.53%
P/E 9.91 20.07 17.91 11.12 16.88 19.4
Div. Yield 5.7% 1.5% 3.2% 4.3% 2.6% 2.2%
Investment Committee Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah
Chairman
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.
08
Lakson Outlook - May 2016
Lakson Tactical Fund
MUFAPs Recommended Format
(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 During the month of May 2016 the Lakson Tactical Fund generated an absolute return of -0.04% against the benchmark return of 0.92%. The Fund has outperformed the benchmark by 4.2% over 11MFY16. Allocation has been taken in T bills (13%) and PIBs (10%), Equities (35%) and Cash (43%). WWF Disclosure As of May 31st, 2016 the LTF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 1.3 million. If the same were not made the NAV per unit of the LTF would be higher by PKR 0.22. If the LTF would not have made the WWF provisions during FY16, the year to date return of the LTF for FY16 would be higher by 0.02%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LAAGCF.
Top 10 Holdings DG Khan Cement Limited Habib Bank Limited Pakistan State Oil Limited Pakistan Petroleum Limited Engro Corporation Limited Pioneer Cement Limited Oil & Gas Development Co. United Bank Limited Kot Addu Power Company K-Electric Limited
2.86 2.56 2.56 2.50 2.42 2.21 1.99 1.86 1.64 1.47
Asset Allocation T bills 13% PIBs 10%
Cash 43%
Equity 35%
Fund Type Category Net Assets (PKR Mil.) NAV (31.5.2016) Pricing Mechanism Trustee Auditor
Open-End Asset Allocation Fund 661 109.4104 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 10% of the gross earnings of the Scheme, calculated Management Fee 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. Front End Load 2.50% Back End Load None Launch Date October 10, 2011 Weighted average daily return of KSE-30 index , 6M KIBOR & DBIQ Optimum Benchmark Yield Diversified Commodity Index excess return based on the scheme's actual proportion in equity, debt and commodities Dealing Days Mon - Fri Cut-Off Time 04:00 PM Risk Profile Medium Risk Asset Manager Rating AM2- by PACRA (31.03.2016)
Fund Performance FY16-YTD May-16 2 Month 3 Month 6 Month 12 Months CY15-YTD 3 Years 5 Years Since Inception
Benchmark*
LTF 5.23% -0.04% 0.01% 0.36% 2.17% 4.60% 1.97% 18.98% NA 30.75%
1.03% 0.92% 1.66% 2.58% 2.55% 1.72% 2.99% 6.04% NA 21.07%
* The new Benchmark is effective from April 19, 2016
May-16 13.38% 8.51% 8.13% 7.79%
LTF vs. Benchmark
Asset Allocation Instruments Placements with Banks (TDRs) T bills PIBs Global Commodities Equity Cash
Mar-16 Apr-16 May-16 % of Total Assets 0% 0% 0% 43% 37% 13% 34% 29% 10% 0% 0% 0% 0% 0% 35% 24% 34% 43%
Disclosures Leverage as on May 31, 2016 Non Performing Assets
Nil. Nil.
135.00 133.00 131.00 129.00 127.00 125.00 123.00 121.00 119.00 117.00 115.00 113.00 111.00 109.00 107.00 105.00 103.00 101.00 99.00
Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16
Sectorwise Exposure as of Cement Banks Fertilizers Oil & Gas
Benchmark
LTF
Investment Committee Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah
Chairman
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.
09
Lakson Outlook - May 2016
Lakson Asset Allocation Developed Markets Fund
MUFAPs Recommended Format
Investment Objective The investment objective of the Lakson Asset Allocation Developed Markets Fund is to provide longterm capital appreciation by investing in a mix of domestic debt and developed markets securities. Performance Review During the month of May 2016 the Lakson Asset Allocation Developed Markets Fund generated an absolute return of 1.80% against the benchmark return of 0.34%. The Fund has outperformed the benchmark by 5.03% over 11MFY16. Allocation has been taken in T bills (13%), PIBs (49%), Developed Market Equities (26%) and Cash (12%). Exposure in equities has been focused on US indices which offer a superior risk/return profile to other Developed Markets. WWF Disclosure As of May 31st, 2016 the LAADMF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 2.8 million. If the same were not made the NAV per unit of the LAADMF would be higher by PKR 1.12. If the LAADMF would not have made the WWF provisions during FY16, the year to date return of the LAADMF for FY16 would be higher by 0.04%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LAADMF.
Developed Markets Equities May-16 QQQ ETF Apple Inc Microsoft Corp Amazon.com Inc Facebook Inc Alphabet Inc Alphabet Inc Comcast Corp Intel Corp Cisco Systems Inc Amgen Inc
% of ETF's Assets 10.48% 7.90% 6.56% 5.23% 4.75% 4.09% 2.96% 2.87% 2.81% 2.31%
% of ETF's Assets Apple Inc 2.88% Microsoft Corp 2.18% Exxon Mobil Corp 2.03% Johnson & Johnson 1.71% General Electric Co 1.59% Berkshire Hathaway Inc 1.51% Facebook Inc 1.49% Amazon.com Inc 1.41% AT&T Inc 1.32% JPMorgan Chase & Co 1.28% Vanguard S&P 500
Asset Allocation Cash 12%
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (31.5.2016) Pricing Mechanism Trustee Auditor
Open-End Asset Allocation Fund 307 123.7225 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 15% of the gross earnings of the Scheme, calculated on a daily basis. The fee is Management Fee subject to a minimum of 1.25% and maximum of 2% of the average annual net assets of the Scheme. Front End Load 2.50% Back End Load None Launch Date October 10, 2011 Benchmark performance of the LAADMF is calculated Benchmark through a 30:70 combination of MSCI World Index and 6-month T-Bills. Dealing Days Mon - Fri Cut-Off Time 04:00 PM Risk Profile Medium Risk Asset Manager Rating AM2- by PACRA (31.03.2016)
Fund Performance
T-Bills 13%
DM Equities 26% PIBs 49%
FY16-YTD May-16 2 Months 3 Months 6 Months 12 Months CY16-YTD 3 Years 5 Years Since Inception
2.58% 0.34% 1.08% 3.46% 0.83% 1.87% 1.49% 105.32% NA 51.98%
155.00 153.00 151.00 149.00 147.00 145.00 143.00 141.00 139.00 137.00 135.00 133.00 131.00 129.00 127.00 125.00 123.00 121.00 119.00 117.00 115.00 113.00 111.00 109.00 107.00 105.00 103.00 101.00 99.00
Mar-16 Apr-16 May-16 % of Total Assets 0% 0% 0% 24% 23% 13% 49% 49% 49% 26% 26% 26% 1% 2% 12%
Placements with Banks & TDRs T-Bills PIBs Developed Markets (DM) Equities Cash
Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16
Instruments
Vanguard S&P 500 (As of May-16)
QQQ ETF (As of May-16)
Weight 94.87% 1.84% 1.22% 0.86% 0.60%
Sectors United States Ireland United Kingdom Switzerland Singapore
Disclosures Leverage as on May 31, 2016 Non Performing Assets
7.61% 1.80% 1.16% 3.17% 3.68% 7.13% 3.82% 26.9% NA 49.53%
LAADMF vs. Benchmark
Asset Allocation
Country United States China Singapore United Kingdom Netherlands
LAADMF Benchmark
Nil. Nil.
Weight 97.37% 1.21% 0.48% 0.47% 0.29%
Benchmark
LAADMF
Investment Committee Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah
Chairman
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.
10
Lakson Outlook - May 2016
PowerShares 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
11
Lakson Outlook - May 2016
Lakson Asset Allocation Emerging Markets Fund
MUFAPs Recommended Format
Investment Objective The investment objective of the Lakson Asset Allocation Emerging Markets Fund is to provide longterm capital appreciation by investing in a mix of domestic debt and emerging market securities. Performance Review During the month of May 2016 the Lakson Asset Allocation Emerging Markets Fund generated an absolute return of 0.51% against the benchmark return of -0.69%. The Fund has outperformed the benchmark by 4.90% over 11MFY16. Allocation has been taken in T bills (53%) and PIBs (25%), while Cash (22%) has been kept in USD which has allowed the Fund to outperform the benchmark by a significant margin. WWF Disclosure As of May 31st, 2016 the LAAEMF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 1.0 million. If the same were not made the NAV per unit of the LAAEMF would be higher by PKR 1.11. If the LAAEMF would not have made the WWF provisions during FY16, the year to date return of the LAAEMF for FY16 would be higher by 0.03%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LAAEMF.
Cash 22% T-Bills 53%
Mar-16 Apr-16 May-16 % of Total Assets 0% 0% 0% 53% 53% 53% 25% 25% 25% 0% 0% 0% 22% 22% 22%
LAAEMF vs. Benchmark
Disclosures Leverage as on May 31, 2016 Non Performing Assets
Nil. Nil.
Apr-16
Oct-15
Feb-16
Dec-15
Apr-15
Jun-15
Aug-15
Oct-14
Feb-15
Dec-14
Jun-14
Apr-14
Benchmark
Aug-14
Oct-13
Feb-14
Dec-13
Weight 13.83% 8.65% 8.29% 6.69% 6.34%
Apr-13
Sectors Banks Internet Semiconductors Telecommunications Oil&Gas
Jun-13
Weight 21.70% 14.36% 11.90% 8.47% 6.39%
-0.98% -0.69% -0.31% 2.95% 1.32% -1.67% 1.83% 9.95% NA 32.23%
139.00 137.00 135.00 133.00 131.00 129.00 127.00 125.00 123.00 121.00 119.00 117.00 115.00 113.00 111.00 109.00 107.00 105.00 103.00 101.00 99.00
EEM Composition (As of May-16) Country China South Korea Taiwan India South Africa
3.92% 0.51% 0.56% 0.79% 1.82% 3.51% 1.77% 15.19% NA 30.02%
Aug-13
Placements with Banks & DFIs T-Bills PIBs Emerging Markets (EM) Equities Cash
LAAEMF Benchmark
FY16-YTD May-16 2 Month 3 Month 6 Month 12 Months CY15-YTD 3 Years 5 Years Since Inception
PIBs 25%
Asset Allocation Instruments
Fund Performance
Oct-12
3.34% 3.25% 3.16% 2.07% 1.91% 1.73% 1.63% 1.50% 1.29% 1.07%
Feb-13
Tencent Holdings Ltd Taiwan Semiconductor Samsung Electronics Co Alibaba Group Holding L China Mobile Ltd Naspers Ltd BlackRock Cash Funds China Construction Bank Baidu Inc Industrial & Commercial Bank
Asset Allocation
Dec-12
% of Assets
Jun-12
As of May-16
Security
Open-End Asset Allocation Fund 101 113.7912 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 10% of the gross earnings of the Scheme, calculated on a daily basis. The fee is Management Fee subject to a minimum of 0.75% and maximum of 2% of the average annual net assets of the Scheme. Front End Load 2.50% Back End Load None Launch Date October 10, 2011 Benchmark performance of the LAAEMF is Benchmark calculated through a 30:70 combination of MSCI Emerging Markets Index and 6-month TBills. Dealing Days Mon - Fri Cut-Off Time 04:00 PM Risk Profile Medium Risk Asset Manager Rating AM2- by PACRA (31.03.2016)
Aug-12
Emerging Market Equities
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (31.5.2016) Pricing Mechanism Trustee Auditor
LAAEMF
Investment Committee Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah
Chairman
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.
12
Lakson Outlook - May 2016
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 Lakson Money Market Fund (LMMF) Fund Benchmark
FY'11
FY'12
FY'13
FY'14
FY'15
11.69% 11.76%
11.19% 11.31%
8.76% 9.14%
7.90% 8.50%
8.57% 8.45%
11.50% 10.82%
11.57% 8.86%
9.21% 9.17%
8.38% 8.31%
14.17% 12.64%
20.44% 28.53%
9.74% 10.45%
40.02% 52.20%
32.15% 25.96%
23.93% 5.67%
6.42% 10.63%
10.52% 13.45%
9.64% 12.94%
7.76% 5.34%
5.85% 7.25%
3.44% 7.89%
4.24% 7.47%
8.86% -1.02%
6.23% 9.82%
5.46% 8.50%
6.40% 10.01%
4.96% 3.36%
Lakson Income Fund (LIF) Fund Benchmark
Lakson Equity Fund (LEF) Fund Benchmark
Lakson Asset Allocation Developed Markets Fund (LAADMF) Fund Benchmark
Lakson Tactical Fund (Formerly: Lakson Asset Allocation Global Commodities Fund
(LAAGCF)
Fund Benchmark
Lakson Asset Allocation Emerging Markets Fund (LAAEMF) Fund Benchmark
Since Inception Absolute Returns LMMF vs Benchmark Fund Benchmark
FY'10 6.77% 6.66%
FY'11 19.25% 19.21%
FY'12 32.63% 32.73%
FY'13 44.25% 44.86%
FY'14 55.65% 57.17%
FY'15 68.98% 70.45%
LIF vs Benchmark Fund Benchmark
7.16% 4.59%
19.49% 15.90%
33.35% 26.20%
45.63% 37.77%
57.84% 49.22%
80.20% 68.08%
LEF vs Benchmark Fund Benchmark
-0.66% 7.32%
19.65% 37.94%
31.30% 52.35%
83.84% 107.12%
142.95% 160.89%
201.91% 200.87%
LAADMF vs Benchmark Fund Benchmark
6.42% 10.63%
17.62% 25.51%
28.95% 41.75%
38.96% 49.33%
LTF (Formerly: LAAGCF) vs Benchmark Fund Benchmark
5.85% 7.25%
9.49% 15.71%
14.13% 24.36%
24.25% 23.09%
LAAEMF vs Benchmark Fund Benchmark
6.23% 9.82%
12.03% 19.15%
19.20% 31.08%
25.11% 35.49%
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.
13
Lakson Outlook - May 2016
Mutual Funds Performance Comparison Position as of June 06, 2016
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 (UIOF) 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
30 Days 7.15 9.31 4.83 4.60 6.18 5.58 9.21 7.27 5.83 5.52 5.31 6.16 5.73 6.18 4.76 7.31 15.49
90 Days 5.20 6.72 4.73 5.00 3.83 4.89 5.79 5.66 4.59 6.09 5.37 5.87 5.95 5.27 4.16 5.10 8.95
4.86 5.92 4.49 5.54 4.99 4.22 5.67 4.81 3.87 6.93 5.32 4.75
Annualized Returns (%) 180 Days 6.10 7.04 5.17 5.80 5.03 5.10 6.57 7.17 5.03 6.42 6.43 6.57 6.29 5.63 4.95 8.15 8.68
270 Days 6.14 7.22 5.53 6.05 5.33 5.29 6.11 6.98 5.60 6.29 6.60 7.01 6.18 5.68 4.94 7.65 7.18
365 Days 6.56 7.46 5.54 7.06 5.65 6.4 6.07 9.11 5.87 6.46 6.75 8.09 6.39 5.54 5.53 7.01 7.41
4.99 6.25 4.21 4.50 5.81 5.81 5.86 4.95 4.53 6.31 5.37 6.33
5.79 4.29 5.12 4.81 5.19 6.22 4.50 5.71 5.45 6.01 5.57 5.55
5.65 4.07 4.58 5.02 4.86 5.52 3.61 4.96 5.78 5.20 5.39 4.55
5.92 4.44 4.62 5.04 5.21 5.72 3.66 5.11 6.01 5.38 5.78 3.93
5.16 5.44 4.86 5.22 5.51 5.73 5.45 4.47 5.45 5.05 5.19 5.48 5.57 5.37 5.65 5.90 5.50 5.44 5.46 5.26 5.34
5.07 5.16 4.75 5.00 5.33 5.75 5.44 4.00 5.21 4.98 4.60 5.41 5.52 5.04 5.63 6.06 5.50 5.37 5.33 4.97 4.75
5.32 5.24 4.98 5.24 5.19 5.76 5.45 4.21 5.44 5.03 4.70 5.60 5.53 5.27 5.78 6.25 5.62 5.54 5.77 5.03 4.89
5.54 5.33 5.15 5.36 5.36 5.94 5.63 4.41 5.53 5.25 5.03 5.67 5.55 5.58 5.71 6.17 5.77 5.85 6.03 5.24 5.12
6.6 5.62 5.74 5.9 6.31 6.36 5.66 4.71 5.94 5.53 5.95 6.51 5.87 6.16 5.88 6.75 6.53 7.58 6.11 5.67 5.15
5.05 3.80 4.44
4.77 3.46 4.34
4.65 3.91 4.37
4.71 4.21 4.34
4.7 4.26 4.68
N/A = Not Available
Source: MUFAP
14
Lakson Outlook - May 2016
Mutual Funds Performance Comparison Position as of June 06, 2016 Aggressive Income Funds 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 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 Shariah Stock Fund Al Meezan Mutual Fund Alfalah GHP Islamic Stock Fund HBL Islamic Stock Fund JS Islamic Fund Meezan Islamic Fund PIML Islamic Equity Fund
Absolute Returns (%) 30 Days 5.24 8.53 6.92 5.79 6.01 5.36 16.11
90 Days 6.18 6.02 5.35 10.33 8.45 4.20 12.15
180 Days 11.41 7.60 7.72 11.10 8.00 5.61 12.71
270 Days 9.61 7.47 7.58 10.16 7.63 6.05 11.46
365 Days 7.14 6.84 7.13 9.79 8.15 6.88 10.59
4.23 5.80
5.43 6.27
7.36 6.87
7.25 7.20
7.36 7.77
3.65 4.90 4.25 4.01 3.56 4.21 3.24 1.91 2.28 1.47 0.45 2.13 3.92 4.54 3.47 2.82 5.62 4.30 1.22 3.82
12.44 24.11 12.30 12.16 12.41 13.68 11.78 10.17 10.97 8.10 6.56 10.35 13.03 13.65 14.93 9.98 9.16 12.65 7.66 12.83
10.73 7.38 15.25 14.79 3.51 14.39 11.89 8.47 7.19 8.02 6.55 10.22 15.02 11.39 16.51 9.00 4.21 11.36 8.65 11.15
13.26 7.62 16.45 16.25 2.26 14.33 10.14 8.09 6.41 9.48 8.57 16.31 16.10 12.68 15.51 11.81 3.44 7.76 8.93 14.98
10.8 32.53 17.9 18.93 -3.06 7.93 7.84 3.38 3.25 5.73 4.62 13.55 12.8 7.36 12.91 10.84 -2.98 11.83 7.74 16.98
4.26 4.42 4.38 4.75 3.49 3.40 4.23 1.77
11.06 14.35 14.39 13.03 11.80 10.37 14.47 7.61
9.14 15.66 15.89 18.60 9.34 12.97 16.48 10.70
9.91 17.03 18.32 21.86 7.47 13.91 19.39 11.66
7.55 18.14 16.11 23.01 3.31 9.61 18.39 9.06
4.59 2.19 3.26 4.31 2.71
8.96 8.07 10.55 9.75 7.38
(0.84) 5.56 11.74 8.68 6.68
10.26 5.72 11.27 8.68 11.00
13.87 5.69 9.59 6.24 8.56
2.54 2.45
8.11 9.04
6.49 10.52
4.99 12.04
3.3 12.74
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
N/A = Not Available
Source: MUFAP
15
Lakson Outlook - May 2016
Mutual Funds Performance Comparison Position as of June 06, 2016 Asset Allocation Funds Alfalah GHP Value Fund Askari Asset Allocation Fund Faysal Asset Allocation Fund Lakson Asset Allocation Developed Markets Fund Lakson Asset Allocation Emerging 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 NAFA Islamic Asset Allocation Fund Pak Oman Islamic Asset Allocation Fund Pakistan Int'l Element Islamic Asset Allocation Fund
Absolute Returns (%) 30 Days 4.33 2.21 3.40 1.66 0.43 0.82 2.06 0.53 3.41 1.76 2.86
90 Days 12.24 7.85 11.25 2.41 0.74 1.35 4.21 1.49 11.06 4.98 6.28
180 Days 16.26 0.40 0.71 3.59 1.81 3.23 4.08 2.81 12.29 7.69 8.87
270 Days 18.92 (0.26) 1.91 7.68 2.82 4.52 4.39 N/A 11.47 8.57 10.27
365 Days 20.11 -3.67 3.56 7.27 3.69 5.95 3.2 N/A 10.96 9.47 10.46
1.93 3.38 3.62 1.87 6.12
5.84 9.95 9.50 5.93 12.48
6.79 5.22 12.56 10.26 11.44
7.93 4.63 13.05 12.08 11.64
10.24 -0.97 15.04 14.32 6.65
0.59 1.49
2.02 3.27
3.55 2.40
4.44 3.28
5.58 2.11
1.95 2.78
5.57 7.67
5.83 7.67
5.99 6.87
4.95 4.91
Capital Protected Funds HBL Mustahekum Sarmaya Fund 1 Pakistan Sarmaya Mehfooz Fund
Islamic Capital Protected Funds NAFA Islamic Principal Protected Fund I NAFA Islamic Principal Protected Fund II
N/A = Not Available
Source: MUFAP
16
Lakson Outlook - May 2016
Markets Information Equities Total Return in PKR and % 1-yr
Total Return in USD and %
Markets
Index
YTD
3-mo
5-yr
YTD
3-mo
1-yr
5-yrWorld
World
MSCI All Country World Index
0.8%
8.3%
Developed
MSCI World Index
0.7%
8.2%
-7.4%
15.7%
0.8%
8.3%
-7.4%
15.7%
-5.9%
23.6%
0.7%
8.2%
-5.9%
23.6%
Emerging
MSCI Emerging Markets Index
1.7%
9.1%
-19.6%
-30.9%
1.7%
Europe
MSCI Europe Index
-2.7%
6.4%
-12.5%
-6.7%
-2.7%
9.1%
-19.6%
-30.9%
6.4%
-12.5%
China
CSI 300
-15.0%
10.2%
-34.5%
5.6%
-15.0%
10.2%
-34.5%
-6.7% 5.6%
Dubai
DFM
0.0%
0.0%
0.0%
152.8%
0.0%
0.0%
0.0%
152.8%
India
BSE Sensex 30
2.1%
15.9%
-4.2%
44.1%
2.1%
15.9%
-4.2%
44.1%
Japan
Nikkei 225
-9.5%
7.5%
-16.2%
77.8%
-9.5%
7.5%
-16.2%
77.8%
Malaysia
FTSE Bursa
-3.9%
-1.7%
-7.0%
4.3%
-3.9%
-1.7%
-7.0%
4.3%
Pakistan
KSE 100
9.9%
15.0%
9.1%
197.5%
9.9%
15.0%
9.1%
197.5% -12.0%
Sri Lanka
Colombo All Share
-5.0%
5.8%
-9.3%
-12.0%
-5.0%
5.8%
-9.3%
UK
FTSE 100
-0.2%
2.2%
-10.8%
4.0%
-0.2%
2.2%
-10.8%
4.0%
US
DJIA
2.1%
7.7%
-1.2%
41.5%
2.1%
7.7%
-1.2%
41.5%
US
S&P 500
2.6%
8.5%
-0.5%
55.9%
2.6%
8.5%
-0.5%
55.9%
US
NASDAQ 100
-1.5%
7.7%
0.3%
90.7%
-1.5%
7.7%
0.3%
90.7%
Germany
DAX Index
-4.5%
8.1%
-10.1%
40.7%
-4.5%
8.1%
-10.1%
40.7%
CANADA
TSX 300 Composite Index
8.1%
9.4%
-6.3%
1.9%
8.1%
9.4%
-6.3%
1.9%
France
CAC - 40
-2.8%
3.5%
-10.0%
12.4%
-2.8%
3.5%
-10.0%
12.4%
Brazil
Sao Paulo SE Bovespa Index
11.8%
13.3%
-8.1%
-25.0%
11.8%
13.3%
-8.1%
-25.0%
Korea
Korea SE Kospi
1.1%
3.5%
-6.2%
-7.4%
1.1%
3.5%
-6.2%
-7.4%
Taiwan
Taiwan SE Weighted Index
2.4%
1.5%
-12.0%
-5.0%
2.4%
1.5%
-12.0%
-5.0%
463.9%
-30%
-5%
20%
45%
70%
KSE Sectors Automobile and Parts
-4.9%
3.6%
-5.6%
463.9%
-4.9%
3.6%
-5.6%
Banks
-5.6%
-0.3%
-9.5%
99.5%
-5.6%
-0.3%
-9.5%
99.5%
Chemicals
-3.8%
4.4%
-1.2%
110.0%
-3.8%
4.4%
-1.2%
110.0%
Construction and Materials
18.5%
17.4%
31.7%
1046.0%
18.5%
17.4%
31.7%
1046.0%
Electricity
2.6%
4.7%
0.7%
202.3%
2.6%
4.7%
0.7%
202.3%
Fixed Line Telecommunication
-5.6%
12.8%
-24.6%
-14.4%
-5.6%
12.8%
-24.6%
-14.4%
Food Producers
2.8%
15.2%
-6.3%
160.8%
2.8%
15.2%
-6.3%
160.8%
Non Life Insurance
-4.0%
-2.3%
7.8%
178.0%
-4.0%
-2.3%
7.8%
178.0%
Oil and Gas
24.5%
35.1%
-9.4%
27.3%
24.5%
35.1%
-9.4%
27.3%
Personal Goods
2.7%
4.5%
6.7%
172.9%
2.7%
4.5%
6.7%
172.9%
YTD 3-mo
Fixed Income Current Interbank Rates on Money Market
Historic 6-month Interbank Rates
1M
3M
6M
12M
YTD
3-mo
1-yr
2-yr
NA
2.93%
3.13%
3.91% 0.98%
China
SHIBOR
2.85%
2.95%
2.98%
3.05%
Dubai
UAE IBOR
0.69%
1.09%
1.34%
1.71%
NA
1.29%
1.10%
India
MIBOR
7.68%
7.80%
NA
NA
NA
NA
NA
NA
Japan
TIBOR
0.03%
0.06%
0.11%
0.13%
0.17%
0.14%
0.22%
0.25%
Malaysia
KLIBOR
3.37%
3.67%
3.79%
3.87%
3.83%
3.81%
3.83%
3.81%
Pakistan
KIBOR
6.24%
6.11%
6.14%
6.45%
6.36%
6.34%
6.59%
7.91%
Sri Lanka
SLIBOR
9.33%
9.80%
10.30%
10.76%
9.15%
9.83%
8.01%
7.72%
UK
LIBOR
0.52%
0.59%
0.74%
1.01%
0.74%
0.74%
0.74%
0.72%
US
SIBOR
0.47%
0.69%
0.99%
1.34%
0.89%
0.91%
0.69%
0.52%
Current Market Yields on Government Securities
3M
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 May 16
1W
Historic 12-Month Paper Rates
12M
5Y
10Y
YTD
3-mo
1-yr
2-yr
China
2.65%
2.38%
2.77%
2.97%
2.29%
2.24%
2.27%
2.78%
India
8.31%
6.93%
#N/A
7.47%
7.08%
6.98%
7.28%
7.78%
Japan
-0.28%
-0.39%
-0.23%
-0.11%
-0.24%
-0.27%
-0.13%
-0.07%
Malaysia
2.81%
2.88%
3.62%
3.93%
2.71%
2.63%
2.92%
3.12%
Pakistan
5.86%
5.95%
6.90%
8.02%
6.16%
6.14%
6.39%
7.70%
Sri Lanka
9.80%
10.76%
NA
NA
9.62%
10.31%
8.38%
8.06%
UK
0.50%
0.40%
0.90%
1.43%
0.39%
0.42%
0.45%
0.43%
US
0.28%
0.67%
1.37%
1.85%
0.56%
0.58%
0.44%
0.30%
3M
6M
1Y
2Y
12M Yields of Government Securities China India Japan Malaysia Pakistan Sri Lanka UK US 0%
17
1M
Govt. Sec. May 16
3%
6%
9%
Lakson Outlook - May 2016
12%
Markets Information Commodities Total Return Commodity
Unit
YTD
3-mo
1-yr
Current Prices 5-yr
DB Commodity Index
USD Excess Return
10.7%
16.0%
-16.1%
-48.4%
305.7
S&P Global Commodity Index
USD Total Return
9.8%
18.1%
-26.2%
-55.6%
2382.8
Dow Jones UBS Commodity Index
USD Total Return
8.8%
12.4%
-15.3%
-48.6%
172.2
Coal
USD/Tonne
5.7%
5.9%
-10.9%
N.A
53.5
Copper
USc/lbs
-1.9%
-1.6%
-23.2%
-49.8%
209.6
Cotton
USc/lbs
1.0%
10.2%
-0.6%
-59.7%
63.9
Gold
USD/t oz.
14.6%
-1.6%
2.1%
-20.9%
1214.8
Palm Oil
USD/Tonne
15.1%
8.5%
8.0%
-44.4%
641.0
Sugar
USc/lbs
14.8%
20.1%
46.0%
-24.5%
17.5
Wheat
USD/Bushel (60Ibs)
-1.2%
4.4%
-2.6%
-40.6%
4.6
WTI
USD/bbl
32.6%
45.5%
-18.6%
-52.2%
49.1
Brent Crude
USD/bbl
33.3%
38.1%
-24.2%
-57.4%
49.7
Heating Oil
USd/Gallon
36.0%
39.2%
-23.4%
N.A
149.8
RBOB Gasoline
USD/Gallon
27.4%
53.8%
-22.6%
-48.7%
1.6
Natural Gas
USD/MMBTU
-2.1%
33.7%
-13.4%
-51.0%
2.3
Silver
USD/t Ozs
15.9%
7.4%
-4.2%
-58.2%
16.0
120
DBCI
SPGSCI
DJUBS
110 100 90 80 70 60 50 May-15
Jul-15
Sep-15
Nov-15
Jan-16
Mar-16
May-16
Currencies Change Versus PKR in %
Current Exchange Rates
YTD
3-mo
1-yr
5-yr
0.00%
0.00%
-3.74%
-11.09%
CAD - PKR
78.87
190
CAD
Euro
EUR
0.00%
0.00%
4.00%
-5.72%
EUR - PKR
116.61
150
Indian Rupee
INR
0.00%
0.00%
0.00%
-5.90%
INR - PKR
1.7941
130
Japanese Yen
JPY
0.00%
0.00%
5.77%
55.21%
JPY - PKR
0.8692
Pound Sterling
GBP
0.00%
0.00%
1.45%
12.01%
GBP - PKR
158.28
Singaporian Dollar
SGD
0.00%
0.00%
-3.71%
4.64%
SGD - PKR
72.89
US Dollar
USD
0.00%
0.00%
2.43%
21.61%
USD - PKR
104.48
EUR
CAD
USD
110 90 70 May-15
18
GBP
170
Canadian Dollar
Jul-15
Aug-15
Oct-15
Nov-15
Dec-15
Feb-16
Lakson Outlook - May 2016
Mar-16
Apr-16
Disclaimer 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.
Transaction Locations: Islamabad: Contact Person: 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: Contact Person: Mr. Haider Abbas 14 Ali Block, 1st Floor New Garden Town, Lahore. Tel: 042.591.1025/26 Rawalpindi: Contact Person: Mr. Tariq Aziz - Branch Manager Suite No.3, 1 st Floor, Majeed Plaza Bank Road, Rawalpindi Tel: 051.551.2251/52 Fax: 051.511.0996 Faisalabad: Contact Person: Mr. Shahbaz Choudhry - Branch Manager 1 st Floor, FM Plaza 15-D, Peoples Colony, Faisalabad Tel: 041.324.1704/07 Fax: 041.855.4453 Sialkot: Contact Person: Mr. Nisar Bhatti - Branch Manager 1 st Floor, Karim Plaza Iqbal Town, Defence Road, Sialkot Tel: 052.324.1704/07 Fax: 052.324.1703
19
Lakson Outlook - May 2016
1954
DECADES OF SEASONED INVESTMENT
Century Insurance
Merit Packaging Limited
Century Paper & Board Mills
Hassanali & Gulbanoo Lakhani Foundation
Lakson Investments Limited. Lakson Square, Building No. 2, Sarwar Shaheed Road, Karachi-74200, Pakistan
UAN T F E
+92.21 111 Lakson +92.21 3569.8000 +92.21 3568.1653
[email protected] www.li.com.pk