August 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: 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 Tactical Fund (Formerly: 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 - August 2016
Economic & Markets Review - Pakistan Economy In August 2016 CPI clocked in at 3.6% YoY vs. 4.1% YoY in July 2016. The decline was because of the Ramadan and Eid effect. On a month-on-month basis, CPI was down 0.3% in Aug 2016 as compared to an increase of 1.3% in the previous month. The rebound in inflation is expected to be contained in the coming months, with the government not allowing local petroleum prices to rise. Among other macro indicators, Large Scale Manufacturing (LSM) segment was flat during Jun 2016 on a Year-on-Year basis, taking full year FY16 growth to 3.2% YoY. Major contributing sectors include Cements and Automobiles. Private sector credit off-take grew by 11% YoY during July'16, with impetus from Construction (+47%YoY), Telecom & Communication (+26%YoY), and Chemicals (+21%YoY) sectors. On the external front, Jul 2016 current account deficit stood at $591mn, underpinned by 7%YoY decline in exports, 6%YoY rise in imports, and 20%YoY drop in remittances. As per recent statements by the SBP Governor, poor remittance numbers are attributable to seasonality (Ramadan effect) and low number of working days in July. In this regard, combined remittances over June and July stand at $3.4 bn are down a more contained 2% YoY over the same period last year. As a result, the rupee maintained its stability versus the US dollar.
Yield Curve 11.5% 10.5% 9.5% 8.5% 7.5% 6.5% 5.5% 1W
2M
of its domestic borrowing. The three T-Bill auctions during August 2016 fetched a combined PKR 905 billion, led by acceptances in 6M T-Bills (PKR 465 billion), and followed by in 3M T-Bills (PKR 250 billion) and 12M (PKR 190 billion). Cut-off yields remained flat following the rise observed in the first auction during the month at 5.85%, 5.90% and 5.91% for 3M, 6M and 12M T-Bills. Equities After recording an 18% rise from January to July, the KSE 30 declined 0.34% in August as foreigners turned net sellers. Key factors that dragged the index include selling in Construction & Materials as investors feared the start of a price war after most companies announced expansion plans. Chemicals also witnessed massive selling after disappointing results and as the government announced a 27% cut in the bag price of urea to combat the oversupply due to higher imports and lower sales. Going forward, with experts projecting fresh foreign investment between USD 300 million to USD 800 million over the next year, the KSE 30 is expected to continue rising. The automobile sector (+14.9%) was the best performing sector as the bookings of new models and announcements of expansion by automobile parts manufacturers created expectation of a rise in earnings. Utilities (+9.2%) continued rising on an anticipated gas price increase in H1FY17. Personal goods (+3.8%) was the next best performing sector as investors looked to benefit from attractive dividend yields and a possible depreciation of Pakistani rupee. Chemicals (-4.01%) declined after below expected results and a supply glut due to higher imports and lower sales in the recent quarters. The Construction & Materials sector (-10.9%) was the worst performing sector as the recent announcements of expansion triggered fears of a price war in the sector. Average volumes rose 8% to reach 81.8 million shares per day as investors' interest was high in small caps; however, average daily traded value declined 17% to reach $55 million per day. Foreigners (-$20.4 mn) were net sellers during the month offloading positions in Chemicals (-$32.3 mn and Construction & Materials (- US$10.9mn). Mutual funds (+$13.5 mn) and NBFCs (+$13.5 mn) were net buyers. The KSE 30's trailing 12 months (TTM) PE ratio has decreased to 10.3x whereas the TTM PE ratios of regional peers have increased. The KSE 30 index continues to trade at a substantial discount to regional markets such as China's Shanghai Composite Index which is trading at 17.9x and India's Sensex Index which is trading at 21.0x.
2Y
5Y
8Y
15Y
31-Aug-16
USD/PKR vs. Forex Reserves
Net foreign investment flows (FDI + FPI) during July 2016 clocked in at $114 mn - up 125%YoY. Major contributing sectors in FDI included Telecommunication, Financial services, and Oil & Gas. Fixed Income Review The Government of Pakistan (GoP) raised PKR 215 billion in the PIBs auction during August 2016, driven by participation in 3yr PIBs (PKR 173.6 billion), followed by 5yr PIBs (PKR 73.8 billion) and 10 year PIBs (PKR 71.7 billion). Cut-off yields remained flat compared to previous auction at 6.2%, 6.7% and 7.8% for 3 year, 5 year and 10 year PIBs respectively. The last two PIB auctions have occurred in the aftermath of a hefty maturity of PIBs, but yields have not picked up in contrast to 2014 when the GoP was looking to extend the maturity profile
6M
29-Jul-16
Forex Res. (USD bn.) - RHS USD/PKR
25.0
105.0
24.0 23.0 22.0
104.0
21.0 20.0 19.0
103.0
18.0
1-Aug
8-Aug
15-Aug
22-Aug
29-Aug
Market Rates
6.5%
6.0%
5.5%
5.0% 1-Aug 6M KIBOR
10-Aug
19-Aug O/N Repo Rate
28-Aug 6M T-Bill
In August 2016 CPI clocked in at 3.6% YoY vs. 4.1% YoY in July 2016.
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
Lakson Outlook - August 2016
Economic & Markets Review - International Developed Markets Review The performance of developed markets index remained muted in Aug'16 where the MSCI World return stood at -0.1%MoM. The developing markets under-performed the emerging markets by 240 bps despite signals of monetary tightening provided by US Federal Reserve. The major indices Dow Jones and S&P index both remained flattish at -0.2% MoM and 0.1% MoM respectively in Aug'16. Investors across the US are closely watching the upcoming Presidential elections and the direction of US interest rates. The FTSE100 managed to gain 1% in August 2016 compared to return of +3% MoM in the preceding month. Emerging Markets Review The MSCI EM index continued its upward trajectory in August 2016, posting a gain of 2% MoM compared to 5% MoM in the previous month. Cumulatively, 8MCY16 return of the emerging markets index now stands at 13% compared to -14% in the same period last year. To recall, the market was hammered by 9% MoM in Aug'15 owing to concerns over global macros and steep depreciation in Chinese Yuan against USD. China's Shanghai Composite was up 4% MoM in August 2016 compared to 2% MoM in August 2015. Other heavyweights (India, Korea, Thailand) remained almost silent with positive returns in the range of 1%-2% during the period under review. The Russian market also remained flattish with MoM return of 1% only. Hawkish comments by U.S. Federal Reserve Chair Janet Yellen capped the overall upside in EM markets and also remains a key downside risk to the ongoing bull run in emerging markets. Commodities During the period under review oil prices, Nymex and Brent recovered by 6% MoM and 13% MoM to $45/bbl and $46/bbl respectively. Oil prices climbed to a two-month high of $50/bbl. This steep uptrend in oil prices was fuelled by speculation surrounding the upcoming informal meetings between OPEC members in Sep 2016. However, uptick in rig counts of US producers and an expectation of rise in U.S. interest rates capped the upside in oil prices. During the month under review, all major economies (particularly U.S., China and Japan) exhibited slowdown in their macro indicators. This may hamper a sustainable bull run in oil prices in future. Coal prices increased by 6% MoM in August 2016 to $67/ton primarily due to supply disruptions worldwide and declining production in China.
Performance of Equities & Commodities 120%
MSCI World Index MSCI EM Index DB Commodity Index
100%
80%
60% Aug-15
Nov-15
Feb-16
May-16
Valuations of International Markets 24 20 16 12 8 4 -
DM
US
UK
Japan Canada
EM
Brazil Russia India
P/E Multiple
Hawkish comments by U.S. Federal Reserve Chair Janet Yellen capped the overall upside in EM markets.
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 - August 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 5.11% against the benchmark return of 4.87% in August 2016. The Fund outpeformed the benchmark by 0.24%. During CY16TD the Fund has returned 5.59% to unit holders against the benchmark of 5.22% and outperformed by 0.37%. Asset allocation changed with T bill allocation dropping to 61% while cash and placement exposure increased to 29% and 10% respectively. As a result portfolio WAM increased to 45 days. Going forward the Fund will focus on increasing exposure to attractive deposits in order to generate returns and mitigate interest rate ris WWF Disclosure As of August 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 1.04. If the LMMF would not have made the WWF provisions during FY17, the year to date annualized return of the LMMF for FY17 would be higher by 0.00%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LMMF. Total Expense Ratio (TER)
TER 0.87%
Sales Tax 0.08%
SECP Fee 0.08%
Workers Welfare Fund -
Asset Allocation
Credit Split
DFIs Others 10% 1%
AA 28%
Cash 29%
T-Bills 61%
Asset Allocation Instruments Placements with Banks & DFIs PIBs T Bills Cash Others including receivables
Jun-16 Jul-16 Aug-16 % of Total Assets 0% 0% 10% 0% 0% 0% 25% 74% 61% 75% 25% 29% 0% 0% 1%
WAM* Days 167 0 47 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 August 31st, 2016 Non Performing Assets WAM of Portfolio
Nil. Nil. 45 Days
Open-End Money Market Fund 4,949 101.0377 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%
Govt Sec AA+ 61% 18%
AA 66% AA+ 10%
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (31.8.2016) Pricing Mechanism Trustee Auditor Management Fee
600,000,000 10.56% 600,000,000 10.56%
Morningstar FY17 - YTD August-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD
LMMF 5.38% 5.23% 5.38% 5.55% 5.59% 5.58% 5.64%
Benchmark 5.00% 4.98% 5.00% 5.19% 5.27% 5.48% 5.26%
Simple Annualized FY17 - YTD August-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD 3 Years 5 Years Since Inception
LMMF 5.26% 5.11% 5.26% 5.44% 5.51% 5.58% 5.59% 7.78% 9.60% 11.77%
Benchmark 4.90% 4.87% 4.98% 5.10% 5.20% 5.48% 5.22% 8.05% 9.93% 11.99%
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 116 115 114 113 112 111 110 109 108 107 106 105 104 103 102 101 100 Jun-14
Oct-14
Feb-15 Benchmark
10.39% 10.39%
Jun-15
Oct-15
Feb-16
Jun-16
LMMF
Investment Committee Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah, CPFA , MIPA
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 - August 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 August 2016 the LIF generated an annualized return of 5.04% against the benchmark return of 3.76%. The LIF outpeformed the benchmark by 1.28%. Over CY16TD the LIF has generated a return of 7.05% and outperformed the average income fund by 0.39%. Asset allocation changed with cash exposure dropping to 54% while corporate debt exposure increasing to 14%. This along with a slightly higher PIB exposure meant that portfolio WAM increased to 402 days. Going forward the Fund will concentrate on building exposure to high quality corporate debt and bank placements. WWF Disclosure As of August 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 0.28. If the LIF would not have made the WWF provisions during FY17, the year to date annualized return of the LIF for FY17 would be higher by 0.00%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LIF. Total Expense Ratio (TER)
TER 1.97%
Sales Tax 0.20%
SECP Fee 0.08%
Asset Allocation
A 3%
A3%
Performance
Govt Sec 7%
PIB T-Bill 6% 2%
Sukuk 4%
Open-End Income Fund 2,846 102.0595 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)
Credit Split
Placements Other with Banks/ 2% DFIs 23% Cash 54%
Workers Welfare Fund -
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (31.8.2016) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark
AAA AA+ Unrated 3% 6% 0.27% AA 7%
AA4%
A+ 65%
TFCs 10%
Morningstar FY17 - YTD August-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD
LIF 5.48% 5.16% 5.48% 6.62% 6.20% 6.94% 7.14%
Benchmark 5.40% 3.83% 5.40% 6.39% 6.10% 6.66% 6.73%
Simple annualized FY17 - YTD August-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD 3 Years 5 Years Since Inception
LIF 5.36% 5.04% 5.36% 6.47% 6.11% 6.94% 7.05% 11.45% 12.39% 14.33%
Benchmark 5.28% 3.76% 5.28% 6.24% 6.01% 6.66% 6.66% 13.06% 12.78% 12.02%
TFCs/Sukuk Portfolio Name of the Issuer NRSP PEL SUKUK Habib Bank Limited I Bank Al Falah Limited V Askari Bank Limited IV K-Electric AZM Sukuk III
Issue Date 30-Jun-16 25-Aug-16 19-Feb-16 20-Feb-13 23-Dec-11 24-Feb-14
Rating % of Total Assets A3.47% A 2.77% AAA 2.60% AA2.28% AA1.97% AA 1.46%
LIF vs. Benchmark
Asset Allocation Instruments Placements with Banks & DFIs PIBs T Bills TFCs Sukuks MTS Cash Others including receivables
Jun-16
Jul-16
19% 2% 2% 10% 1% 0% 65% 1%
% of Total Assets 18% 2% 2% 10% 1% 0% 65% 1%
Aug-16 23% 6% 2% 10% 4% 0% 54% 1%
126 124
WAM*
122 120 118
Days 135 2613 141 1828 616 0 0
116 114 112 110 108 106 104 102 100 Jun-14
Disclosures Leverage as on August 31st, 2016 Non Performing Assets WAM of Portfolio
Jun-15
Oct-15
Feb-16
Jun-16
LIF
Investment Committee
Non Compliant Investments Type of Instrument
Feb-15 Benchmark
* Weighted Average Maturity
Name of Non - Compliant Investment
Oct-14
Value of Investment before Provisioning
Total Provisioning Held
Nil. Nil. 402 Days
Value of Investment after Provisioning
% of Net Assets
% of Total Assets
Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah, CPFA , MIPA
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 - August 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 generated a MTD return of -0.18% vs -0.34% for the benchmark. FYTD return is 5.50% vs 4.67% of the benchmark.The market oscillated in August, trying to stabilise over the psychological level of 40,000 (KSE 100). During the month, the fund maintained a strong presence in the market, strategically shfiting out of inflated sectors and redeploying into fundamentally strong plays. The fund realised gains in Fertilizers and Cements, whilst redeploying the proceeds into Banks and Oil Exploration. Exposure in Power Generation and Oil Marketing was reshuffled, but maintained. WWF Disclosure As of August 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 0.77. If the LEF would not have made the WWF provisions during FY17, the year to date return of the LEF for FY17 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.
Fund Facts
Fund Type Category Net Assets (PKR Mil.) NAV (31.8.2016) 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
Open-End Equity Fund 3,113 120.6218 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)
Performance
LEF
KSE-30
5.50% -0.18% 5.50% 8.37% 23.43% 15.62% 18.36% 81.43% 212.48% 251.36%
4.67% -0.34% 4.67% 9.06% 23.30% 6.82% 17.54% 31.39% 114.92% 137.03%
Total Expense Ratio (TER)
SECP Fee 0.10%
Workers Welfare Fund -
Top 10 Holdings
*Returns based on last working day NAV
Sectorwise Exposure
Aug-16
12.65% 17.30% 19.60% 8.66% 12.92% 6.82% 11.38%
Others
Commercial Banks
300 250
Electricity
200
Const. & Mat.
150 100
Aug-16 89% 0% 9% 1%
LEF
KSE-100
Jul-16
Aug-16
Jun-16
Apr-16
May-16
Mar-16
0
Jan-16
50 Feb-16
Jul-16 88% 0% 11% 1%
Dec-15
Jun-16 91% 0% 8% 1%
Oct-15
Equities T-Bills Cash Others Including Receivables
LEF vs. Benchmark 350
Oil & Gas Exp
*Includes fertilisers
Asset Allocation (% of Total Assets)
Chemicals
Oil & Gas Mktg
Nov-15
14.40% 13.96% 22.73% 8.38% 11.97% 6.86% 10.00%
Equity 89%
Sep-15
Jul-16
Others 1%
Jul-15
Chemicals* Comm Banks Const. & Mat. Electricity Oil & Gas Exp Oil & Gas Mktg Others
Cash 9%
Aug-15
Sectorwise Exposure
6.86% 6.41% 5.87% 5.86% 5.28% 5.14% 4.84% 4.34% 4.31% 3.99%
Jun-15
Oil & Gas Development Co Pakistan State Oil Limited Habib Bank Limited DG Khan Cement Limited Lucky Cement Limited Pak Petroleum Limited United Bank Limited Engro Corporation Limited Pioneer Cement Limited Nishat Mills Limited
Asset Allocation
FY17 - YTD August-16 2 Months 3 Months 6 Months 12 Months CY16- YTD 3 Years 5 Years Since Inception
Apr-15
Sales Tax 0.26%
May-15
TER 2.77%
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 August 31, 2016 Non Performing Assets
1M Return 0.71% 1.43% 1.50% 0.58% -0.17% -0.12%
P/E 10.17 21.04 18.17 12.57 17.72 20.37
Div. Yield 5.4% 1.5% 3.1% 4.3% 2.5% 2.1%
Investment Committee Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah, CPFA , MIPA
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 - August 2016
Lakson Tactical Fund
(Formerly: Lakson Asset Allocation Global Commodities Fund)
MUFAPs Recommended Format 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 August 2016 the Lakson Tactical Fund generated an absolute return of 0.26% against the benchmark return of 0.25%. The Fund has under performed the benchmark by 1.38% over CY16TD. Allocation to TDRs, PIBs and corporate debt was increased to 19%, 5% and 5% respectively. Equity exposure was topped up to 34% while cash holdings dropped to 34%. Going forward the Fund will look to increase allocation to corporate debt and high quality deposits. WWF Disclosure As of August 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. If the LTF would not have made the WWF provisions during FY17, the year to date return of the LTF for FY17 would be higher by 0.00%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LTF. Total Expense Ratio (TER)
TER 2.07%
Sales Tax 0.18%
SECP Fee 0.10%
Workers Welfare Fund -
Top 10 Holdings P.S.O. Oil & Gas Dev. D.G.K. Cement Lucky Cement Pak Petroleum Habib Bank Engro Corp United Bank Pioneer Cement Nishat Mills
Sectorwise Exposure as of Cement Banks Fertilizers Oil & Gas Electricity Others
2.56 2.46 2.35 2.22 2.10 1.81 1.74 1.73 1.72 1.41
Jul-16 7.87% 4.35% 4.10% 4.18% 2.45% 6.62%
Asset Allocation
Cash 34%
Aug-16 8.07% 5.88% 4.77% 3.79% 2.68% 8.13%
Placements with Banks & DFIs 19% T bills 3% PIBs 5% TFC 5% Equity 34%
Fund Type Category Net Assets (PKR Mil.) NAV (31.8.2016) Pricing Mechanism Trustee Auditor
Open-End Asset Allocation Fund 1,273 105.3002 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 FY17-YTD August-16 2 Month 3 Month 6 Month 12 Months CY16-YTD 3 Years 5 Years Since Inception
Benchmark*
LTF 2.61% 0.26% 2.61% 4.19% 4.57% 7.88% 6.24% 22.00% NA 36.23%
2.31% 0.25% 2.31% 4.49% 7.18% 6.85% 7.62% 7.37% NA 26.51%
* The new Benchmark is effective from April 19, 2016
LTF vs. Benchmark 160 140 120 100 80
Asset Allocation
Placements with Banks & DFIs T bills PIBs TFC Equity Cash
60
Jun-16 Jul-16 Aug-16 % of Total Assets 0% 15% 19% 4% 3% 3% 1% 1% 5% 6% 4% 5% 34% 30% 34% 55% 47% 34%
Disclosures Leverage as on August 31, 2016 Non Performing Assets
Nil. Nil.
40 20 0
Oct-11 Dec-11 Feb-12 Apr-12 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 Jun-16 Aug-16
Instruments
Benchmark
LTF
Investment Committee Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah, CPFA , MIPA
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 - August 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 August 2016 the Lakson Asset Allocation Developed Markets Fund generated an absolute return of 0.15% against the benchmark return of 0.16%. The Fund has outperformed the benchmark by 3.27% over CY16TD. Allocation has been taken in T bills (39%), PIBs (33%) 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. WWF Disclosure As of August 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 0.99. If the LAADMF would not have made the WWF provisions during FY17, the year to date return of the LAADMF for FY17 would be higher by 0.00%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LAADMF. Total Expense Ratio (TER)
TER 2.59%
Sales Tax 0.20%
SECP Fee 0.10%
Workers Welfare Fund -
Developed Markets Equities Aug-16 QQQ ETF Apple Inc Microsoft Corp Amazon.com Inc Facebook Inc Alphabet Inc Alphabet Inc Intel Corp Comcast Corp Cisco Systems Inc Amgen Inc
% of ETF's Assets 10.52% 8.14% 6.54% 5.25% 4.75% 4.18% 3.06% 2.87% 2.86% 2.30%
% of ETF's Assets Apple Inc 3.02% Microsoft Corp 2.36% Exxon Mobil Corp 1.95% Johnson & Johnson 1.82% Amazon.com Inc 1.55% Facebook Inc 1.52% General Electric Co 1.51% AT&T Inc 1.41% Berkshire Hathaway Inc 1.34% JPMorgan Chase & Co 1.24% Vanguard S&P 500
Asset Allocation DM Equities 28%
Open-End Asset Allocation Fund 307 115.6260 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)
T-Bills 39%
PIBs 33%
FY17-YTD August-16 2 Months 3 Months 6 Months 12 Months CY16-YTD 3 Years 5 Years Since Inception
LAADMF Benchmark 2.07% 0.15% 2.07% 2.43% 5.68% 9.51% 6.35% 27.4% NA 53.17%
1.82% 0.16% 1.82% 1.57% 5.08% 4.70% 3.08% 84.16% NA 54.36%
LAADMF vs. Benchmark
Instruments
180
Jun-16 Jul-16 Aug-16 % of Total Assets 0% 0% 0% 15% 29% 39% 38% 32% 33% 31% 28% 28% 16% 11% 0%
Placements with Banks & DFIs T-Bills PIBs Developed Markets (DM) Equities Cash
160 140 120 100 80 60 40 20 0
Weight 95.12% 1.92% 1.24% 0.74% 0.54%
Sectors United States Ireland Switzerland United Kingdom Singapore
Disclosures Nil. Nil.
Oct-11 Dec-11 Feb-12 Apr-12 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 Jun-16 Aug-16
Vanguard S&P 500 (As of Aug-16)
QQQ ETF (As of Aug-16)
Leverage as on August 31, 2016 Non Performing Assets
Fund Type Category Net Assets (PKR Mil.) NAV (31.8.2016) Pricing Mechanism Trustee Auditor
Fund Performance
Asset Allocation
Country United States China Singapore United Kingdom Netherlands
Fund Facts
Weight 97.20% 1.15% 0.48% 0.45% 0.32%
Benchmark
LAADMF
Investment Committee Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah, CPFA , MIPA
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 - August 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 - August 2016
Lakson Asset Allocation Emerging Markets Fund 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 August 2016 the Lakson Asset Allocation Emerging Markets Fund generated an absolute return of 0.05% against the benchmark return of 0.84%. The Fund has under performed the benchmark by 2.68% over CY16TD. Allocation has been taken in PIBs (20%) and Cash (80%). WWF Disclosure As of August 31st, 2016 the LAAEMF 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 0.93. If the LAAEMF would not have made the WWF provisions during FY17, the year to date return of the LAAEMF for FY17 would be higher by 0.00%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LAAEMF. Total Expense Ratio (TER)
TER 2.97%
Sales Tax 0.10%
SECP Fee 0.10%
Emerging Market Equities
As of Aug-16
Security
% of Assets
Samsung Electronics Co Tencent Holdings Ltd Taiwan Semiconductor Alibaba Group Holding L China Mobile Ltd Naspers Ltd China Construction Bank Industrial & Commercia Baidu Inc Hon Hai Precision Indus
Workers Welfare Fund -
Asset Allocation
3.68% 3.67% 3.41% 2.41% 1.89% 1.79% 1.57% 1.17% 1.16% 0.97%
PIBs 20%
Placements with Banks & DFIs T-Bills PIBs Emerging Markets (EM) Equities Cash
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (31.8.2016) Pricing Mechanism Trustee Auditor
Open-End Asset Allocation Fund 101 102.9124 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)
Fund Performance
LAAEMF Benchmark
FY17-YTD August-16 2 Month 3 Month 6 Month 12 Months CY16-YTD 3 Years 5 Years Since Inception
Cash 80%
Asset Allocation Instruments
MUFAPs Recommended Format
0.32% 0.05% 0.32% 0.80% 1.59% 3.70% 2.58% 15.63% NA 31.06%
2.30% 0.84% 2.30% 3.37% 6.42% 5.83% 5.26% 12.99% NA 36.69%
LAAEMF vs. Benchmark
Jun-16 Jul-16 Aug-16 % of Total Assets 0% 0% 0% 0% 0% 0% 20% 20% 20% 0% 0% 0% 80% 80% 80%
160 140 120 100 80 60 40
EEM Composition (As of Aug-16) Weight 22.19% 14.96% 12.04% 8.35% 7.46%
Sectors Banks Semiconductors Internet Telecommunications Oil&Gas
Disclosures Leverage as on August 31, 2016 Non Performing Assets
Nil. Nil.
Weight 14.43% 9.16% 9.04% 6.46% 6.25%
0
Oct-11 Dec-11 Feb-12 Apr-12 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 Jun-16 Aug-16
Country China South Korea Taiwan India Brazil
20
Benchmark
LAAEMF
Investment Committee Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah, CPFA , MIPA
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 - August 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)
FY'12
FY'13
FY'14
FY'15
FY'16
11.19% 11.31%
8.76% 9.14%
7.90% 8.50%
8.57% 8.45%
5.60% 5.61%
Fund
11.57%
9.21%
8.38%
14.17%
8.57%
Benchmark
8.86%
9.17%
8.31%
12.64%
7.16%
9.74%
40.02%
32.15%
23.93%
10.60%
10.45%
52.20%
25.96%
5.67%
0.37%
Fund Benchmark
Lakson Income Fund (LIF)
Lakson Equity Fund (LEF) Fund Benchmark
Lakson Asset Allocation Developed Markets Fund (LAADMF) Fund
6.42%
10.52%
9.64%
7.76%
8.00%
Benchmark
10.63%
13.45%
12.94%
5.34%
2.33%
Lakson Tactical Fund (Formerly: Lakson Asset Allocation Global Commodities Fund
(LAAGCF)
Fund
5.85%
3.44%
4.24%
8.86%
6.85%
Benchmark
7.25%
7.89%
7.47%
-1.02%
3.18%
Fund
6.23%
5.46%
6.40%
4.96%
4.42%
Benchmark
9.82%
8.50%
10.01%
3.36%
0.05%
Lakson Asset Allocation Emerging Markets Fund (LAAEMF)
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%
FY'16 78.45% 80.01%
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%
95.65% 80.12%
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%
201.09% 175.69%
233.00% 176.71%
LAADMF vs Benchmark Fund Benchmark
6.42% 10.63%
17.62% 25.51%
28.95% 41.75%
38.96% 49.33%
50.08% 52.81%
LTF vs Benchmark Fund Benchmark
5.85% 7.25%
9.49% 15.71%
14.13% 24.36%
24.25% 23.09%
32.76% 27.00%
LAAEMF vs Benchmark Fund Benchmark
6.23% 9.82%
12.03% 19.15%
19.20% 31.08%
25.11% 35.49%
30.64% 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.
13
Lakson Outlook - August 2016
Mutual Funds Performance Comparison Position as of September 01, 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 4.90 3.53 1.80 3.33 6.16 2.27 6.29 5.08 3.09 6.49 6.27 5.33 5.56 4.11 3.39 3.90 3.03
90 Days 6.90 6.91 6.93 5.97 5.27 3.41 8.05 6.43 4.40 5.86 7.09 7.96 5.61 4.59 4.44 5.93 8.64
4.73 6.75 4.61 4.80 5.30 7.21 4.22 5.21 4.01 5.71 5.24 5.55
Annualized Returns (%) 180 Days 6.09 6.87 5.87 5.52 4.57 4.17 6.97 6.09 4.52 6.02 6.27 6.97 5.83 4.96 4.32 5.55 8.89
270 Days 6.43 7.07 5.81 5.92 5.15 4.57 7.15 7.00 4.86 6.28 6.72 7.11 6.12 5.33 4.82 7.50 8.79
365 Days 6.5 7.35 5.97 6.2 5.45 5.01 6.57 6.97 5.44 6.25 6.82 7.34 6.1 5.46 4.98 7.33 7.64
5.23 5.80 6.10 4.53 4.70 7.46 4.32 4.14 4.48 5.25 5.21 9.45
5.14 6.07 5.18 4.54 5.29 6.68 5.15 4.58 4.53 5.82 5.33 7.95
5.65 4.83 5.50 4.76 5.07 6.70 4.49 5.23 5.17 5.81 5.49 6.93
5.6 4.57 5 4.95 4.87 6.08 3.66 4.8 5.49 5.23 5.41 5.98
5.53 4.43 4.59 4.87 4.77 5.03 4.71 3.61 5.39 4.92 4.40 5.55 5.13 4.94 5.36 6.09 5.14 5.09 4.49 5.24 4.75
6.21 4.77 5.14 5.44 4.92 5.20 5.02 3.80 5.69 5.10 4.68 5.28 5.43 5.36 5.53 6.34 5.32 5.84 4.90 5.99 4.92
5.69 5.00 4.98 5.25 5.16 5.51 5.26 3.92 5.52 5.07 4.64 5.39 5.51 5.24 5.62 6.25 5.45 5.64 5.15 5.52 4.86
5.68 5.12 5.07 5.36 5.13 5.62 5.35 4.10 5.57 5.09 4.71 5.54 5.54 5.35 5.75 6.34 5.57 5.70 5.53 5.41 4.94
5.78 5.27 5.21 5.44 5.31 5.82 5.54 4.3 5.64 5.27 4.98 5.64 5.58 5.6 5.73 6.28 5.73 5.92 5.81 5.48 5.11
4.78 4.21 4.61
4.72 4.22 4.85
4.78 3.85 4.62
4.71 4.03 4.56
4.75 4.25 4.52
N/A = Not Available
Source: MUFAP
14
Lakson Outlook - August 2016
Mutual Funds Performance Comparison Position as of September 01, 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 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
Absolute Returns (%) 30 Days 7.18 4.45 5.23 4.19 2.40 1.37 2.79
90 Days 7.27 7.81 5.04 8.41 8.01 5.24 15.18
180 Days 6.78 6.97 5.23 9.48 8.31 4.74 13.88
270 Days 10.18 7.77 6.90 10.36 8.11 5.54 13.84
365 Days 9.19 7.72 7.08 9.88 7.93 6.08 12.45
5.34 5.37
7.82 6.64
6.67 6.50
7.61 6.87
7.41 7.17
0.57 8.19 (0.43) (0.44) (1.22) 0.43 0.11 (0.31) (0.68) 2.18 2.12 2.35 (0.72) 0.76 0.62 1.94 2.85 (0.84) 1.37 (0.84)
7.34 12.27 3.41 3.45 4.36 6.52 7.31 5.79 7.49 6.68 9.94 7.09 4.80 6.44 7.67 10.55 7.51 2.54 6.91 5.35
20.69 39.34 16.13 16.03 17.31 21.08 19.95 16.56 18.10 15.32 17.16 18.17 18.45 20.98 23.74 21.58 17.36 15.51 15.09 18.86
18.86 20.55 19.17 18.75 8.02 21.85 20.07 14.75 14.08 15.24 17.15 18.04 20.54 18.56 25.45 20.51 12.04 14.19 16.16 17.09
16.83 14.9 15.27 15.26 2.27 15.57 13.27 8.75 7.43 11.78 13.22 18.5 16.12 14.29 18.6 18.88 8.28 6.63 10.91 16.47
(0.19) (1.01) (1.45) (0.63) (0.22) 1.52 (1.41) (0.40)
5.68 6.93 6.64 2.12 8.02 12.39 7.32 4.86
17.37 20.14 21.98 15.42 19.24 24.04 22.85 12.84
15.34 N/A 23.58 21.11 16.61 26.96 25.01 16.08
11.55 N/A 21.16 18.83 8.97 22.1 23.12 11.33
(0.40) (1.92) 0.73 0.36 1.57
0.79 5.36 6.40 4.07 4.23
9.82 12.93 17.62 14.22 11.92
(0.06) 10.30 18.89 13.10 11.19
7.17 6.64 14.94 9.89 11.76
(0.77) (0.85)
2.96 4.55
11.31 14.01
9.64 15.55
4.08 14.62
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 - August 2016
Mutual Funds Performance Comparison Position as of September 01, 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 0.18 (0.88) (1.59) 0.21 0.05 0.02 1.04 0.28 0.86 (0.54) (0.08)
90 Days 5.46 2.78 (1.52) 2.45 0.78 2.94 4.58 1.20 4.58 6.45 3.49
180 Days 18.37 10.85 9.57 5.05 1.54 4.33 8.98 2.71 16.14 11.75 9.99
270 Days 22.61 3.19 (0.81) 6.10 2.63 6.27 8.84 4.05 17.43 14.64 12.67
365 Days 20.29 -1.2 -5.35 9.58 3.7 7.72 8.54 N/A 13.19 11.2 12.53
(0.24) (0.76) (0.24) (0.76) 0.49
3.06 3.46 4.99 4.65 6.02
9.07 13.76 14.97 10.85 19.26
10.06 8.86 18.17 15.39 18.16
9.54 4.31 15.67 12.99 14.54
0.46 0.68 0.28
1.86 0.77 1.08
3.87 N/A 4.39
5.43 N/A 3.51
5.89 N/A 2.89
(0.11) (0.24)
3.85 4.21
9.63 12.20
9.90 12.20
7.65 7.97
Capital Protected Funds HBL Mustahekum Sarmaya Fund 1 JS Capital Protected Fund V 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 - August 2016
Markets Information Equities Total Return in PKR and %
Total Return in USD and %
Markets
Index
YTD
3-mo
1-yr
5-yr
YTD
3-mo
1-yr
5-yrWorld
World
MSCI All Country World Index
4.3%
3.5%
5.3%
60.5%
4.3%
3.5%
5.0%
34.1%
Developed
MSCI World Index
3.4%
2.7%
4.8%
69.9%
3.4%
2.7%
4.5%
42.0%
Emerging
MSCI Emerging Markets Index
12.5%
10.7%
9.4%
3.5%
12.5%
10.7%
9.2%
-13.5%
Europe
MSCI Europe Index
-3.5%
-0.8%
-5.8%
30.6%
-3.5%
-0.8%
-6.0%
9.2%
China
CSI 300
-10.8%
5.0%
-0.9%
39.9%
-10.8%
5.0%
-1.2%
16.9%
Dubai
DFM
0.0%
0.0%
0.3%
216.1%
0.0%
0.0%
0.0%
164.2%
India
BSE Sensex 30
8.9%
6.7%
8.5%
104.1%
8.9%
6.7%
8.3%
70.6%
Japan
Nikkei 225
-11.3%
-2.0%
-10.4%
125.6%
-11.3%
-2.0%
-10.6%
88.6%
Malaysia
FTSE Bursa
-0.9%
3.2%
4.3%
38.7%
-0.9%
3.2%
4.1%
15.9%
Pakistan
KSE 100
21.3%
10.4%
14.6%
259.6%
21.3%
10.4%
14.3%
200.6%
Sri Lanka
Colombo All Share
-5.3%
-0.3%
-10.4%
13.2%
-5.3%
-0.3%
-10.7%
-5.4%
UK
FTSE 100
8.6%
8.8%
8.8%
50.4%
8.6%
8.8%
8.5%
25.7%
US
DJIA
5.6%
3.5%
11.6%
89.6%
5.6%
3.5%
11.3%
58.4%
US
S&P 500
6.2%
3.5%
10.4%
113.1%
6.2%
3.5%
10.1%
78.1%
US
NASDAQ 100
3.9%
5.5%
11.9%
154.7%
3.9%
5.5%
11.6%
112.9%
Germany
DAX Index
-1.4%
3.2%
3.5%
119.1%
-1.4%
3.2%
3.2%
83.1%
CANADA
TSX 300 Composite Index
12.2%
3.8%
5.6%
36.8%
12.2%
3.8%
5.3%
14.3%
France
CAC - 40
-4.3%
-1.5%
-4.4%
63.1%
-4.3%
-1.5%
-4.6%
36.3%
Brazil
Sao Paulo SE Bovespa Index
33.6%
19.5%
24.5%
22.6%
33.6%
19.5%
24.2%
2.5%
Korea
Korea SE Kospi
3.7%
2.6%
5.1%
29.5%
3.7%
2.6%
4.8%
8.2%
Taiwan
Taiwan SE Weighted Index
8.8%
6.2%
11.2%
40.2%
8.8%
6.2%
10.9%
17.1%
-30%
-5%
20%
45%
70%
KSE Sectors Automobile and Parts
62.8%
71.2%
61.5%
861.9%
62.8%
71.2%
61.1%
704.0%
Banks
10.3%
16.8%
1.5%
153.8%
10.3%
16.8%
1.3%
112.1%
Chemicals
-72.0%
-70.9%
-75.3%
-39.0%
-72.0%
-70.9%
-75.3%
-49.0%
Construction and Materials
33.3%
12.5%
28.8%
1066.6%
33.3%
12.5%
28.5%
875.1%
Electricity
12.0%
9.1%
4.5%
223.1%
12.0%
9.1%
4.2%
170.0%
Fixed Line Telecommunication
0.3%
6.3%
-13.7%
48.2%
0.3%
6.3%
-14.0%
23.9%
Food Producers
-6.4%
-9.0%
-23.1%
109.3%
-6.4%
-9.0%
-23.3%
75.0%
Oil and Gas
40.7%
13.0%
23.9%
56.1%
40.7%
13.0%
23.6%
30.5%
Personal Goods
-8.9%
-11.3%
-14.9%
183.9%
-8.9%
-11.3%
-15.1%
137.3%
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
China
SHIBOR
2.77%
2.85%
2.94%
3.04%
NA
2.97%
3.10%
3.74%
Dubai
UAE IBOR
0.71%
1.15%
1.41%
1.71%
NA
1.34%
1.18%
1.01%
India
MIBOR
7.68%
7.80%
NA
NA
NA
NA
NA
NA
6.25%
Japan
TIBOR
0.03%
0.06%
0.11%
0.13%
0.15%
0.11%
0.20%
0.23%
6.00%
Malaysia
KLIBOR
3.13%
3.40%
3.54%
3.62%
3.80%
3.74%
3.82%
3.82%
5.75%
Pakistan
KIBOR
6.22%
5.98%
5.98%
6.26%
6.29%
6.16%
6.45%
7.59%
Sri Lanka
SLIBOR
10.43%
10.67%
11.09%
11.51%
9.55%
10.40%
8.59%
7.90%
UK
LIBOR
0.43%
0.49%
0.58%
0.80%
0.72%
0.68%
0.73%
0.71%
US
SIBOR
0.50%
0.76%
1.11%
1.43%
0.91%
0.96%
0.78%
0.58%
Current Market Yields on Government Securities
3M
Govt. Securities vs. KIBOR
7.00%
Interbank Aug 16
6.75% 6.50%
5.50% 5.25% 5.00% 1W
Historic 12-Month Paper Rates
12M
5Y
10Y
YTD
3-mo
1-yr
2-yr
China
2.63%
2.24%
2.63%
2.80%
2.30%
2.35%
2.34%
2.67%
India
8.31%
6.73%
#N/A
7.17%
7.01%
6.87%
7.14%
7.62%
Japan
-0.27%
-0.27%
-0.27%
-0.19%
-0.27%
-0.34%
-0.19%
-0.10%
Malaysia
2.50%
2.53%
3.20%
3.59%
2.72%
2.75%
2.86%
3.08%
Pakistan
5.73%
5.76%
6.48%
7.50%
6.08%
5.97%
6.25%
7.37%
Sri Lanka
10.67%
11.51%
NA
NA
10.02%
10.87%
8.99%
8.24%
UK
0.40%
0.12%
0.28%
0.69%
0.36%
0.32%
0.41%
0.42%
US
0.25%
0.49%
1.02%
1.45%
0.54%
0.53%
0.49%
0.33%
1M
3M
6M
1Y
2Y
12M Yields of Government Securities China India Japan Malaysia Pakistan Sri Lanka UK US 0%
17
Govt. Sec. Aug 16
3%
6%
9%
Lakson Outlook - August 2016
12%
Markets Information Commodities Total Return Commodity
Unit
YTD
3-mo
DB Commodity Index
USD Excess Return
8.2%
S&P Global Commodity Index
USD Total Return
1.1%
Dow Jones UBS Commodity Index
USD Total Return
Coal Copper
Current Prices
1-yr
5-yr
-2.3%
-7.4%
-49.5%
298.8
-7.9%
-21.0%
-57.0%
2194.7
5.6%
-2.9%
-8.8%
-49.4%
167.1
110
USD/Tonne
35.9%
28.5%
17.7%
N.A
68.8
100
USc/lbs
-3.1%
-1.2%
-11.5%
-50.6%
207.0
Cotton
USc/lbs
3.2%
2.2%
2.5%
-38.3%
65.3
Gold
USD/t oz.
23.4%
7.7%
15.5%
-28.5%
1307.9
Palm Oil
USD/Tonne
23.0%
6.9%
48.5%
-34.7%
685.4
70
Sugar
USc/lbs
31.6%
14.7%
87.7%
-32.4%
20.1
60
Wheat
USD/Bushel (60Ibs)
-23.2%
-22.3%
-25.2%
-51.6%
3.6
WTI
USD/bbl
20.7%
-9.0%
-9.1%
-49.7%
44.7
Brent Crude
USD/bbl
26.2%
-5.3%
-13.1%
-59.0%
47.0
Heating Oil
USd/Gallon
28.1%
-5.8%
-15.7%
N.A
141.0
RBOB Gasoline
USD/Gallon
11.5%
-12.6%
-13.9%
-53.4%
1.4
Natural Gas
USD/MMBTU
23.5%
26.2%
7.4%
-28.8%
2.9
Silver
USD/t Ozs
34.9%
16.4%
27.7%
-55.3%
18.6
Currencies
120
DBCI
Current Exchange Rates
YTD
3-mo
1-yr
5-yr
Canadian Dollar
CAD
5.41%
-0.22%
0.92%
-10.41%
CAD - PKR
79.91
Euro
EUR
2.59%
0.12%
0.18%
-6.84%
EUR - PKR
116.85
Japanese Yen
JPY
16.07%
6.93%
17.99%
-11.03%
JPY - PKR
1.01
Pound Sterling
GBP
-10.88%
-9.39%
-13.82%
-13.82%
GBP - PKR
137.59
Singaporian Dollar
SGD
3.94%
0.98%
4.27%
6.09%
SGD - PKR
76.86
US Dollar
USD
-0.01%
-0.12%
0.51%
19.93%
USD - PKR
104.73
DJUBS
90 80
50 Sep-15
Nov-15
190
Change Versus PKR in %
SPGSCI
Jan-16
GBP
Mar-16
EUR
May-16
CAD
Jul-16
USD
170 150 130 110 90 70 Aug-15
18
Oct-15
Nov-15
Jan-16
Feb-16
Mar-16
May-16
Jun-16
Lakson Outlook - August 2016
Aug-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 - August 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