July 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 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 - July 2016
Economic & Markets Review - Pakistan Economy July 2016 ended with SBP keeping its policy rate unchanged at 5.75% - in line with broader consensus, backed by rise in inflationary expectation (4.5% - 5.5% YoY in FY17). CPI inflation clocked in at 4.1% YoY in July'16, which is high compared to 3.2% in Jun'16. On a monthon-month basis, it was up 1.34% in July as compared to an increase of 0.63% during June 2016. Food inflation picked up by 3.92% YoY in July compared to an incline of 1.24% YoY last month. The rebound in inflation is expected to be contained in the coming months, with Ramadan/Eid effect normalizing and the government not letting local petrol prices slip. Other macro indicators also continued to post a decline in May'16, where Large-scale manufacturing (LSM) fell by 1.5% YoY in May 2016, thereby dragging 11MFY16 growth to 3.5% YoY. Private sector credit off-take continues to accelerate (up 12.9% YoY in June 2016 vs. 8.0% YoY in June 2015) with impetus from Construction (+48% YoY), Chemicals (+29% YoY) and Transport & Communication sector (+24% YoY). On the fiscal front, fiscal deficitto-GDP narrowed to 4.3% in FY16 - in line with IMF target. Net FDI flows during FY16 clocked in at USD 1.28bn, up 39% YoY, with last minute push from 3G auction in June 2016 (USD 138.5 mn booked). Breakup includes inflow of USD 2.1 bn and outflow of USD 0.8 bn. Current account balance posted a USD 61 million deficit in Jun 2016 against USD 808 million deficit in May 2016. Pakistan's current account deficit (CAD) remained flat YoY at USD 2.53 bn in FY16, despite aid from lower oil prices. The deficit closed the year at 0.9% of GDP as opposed to 1.0% in FY15- in line with IMF expectation. Fixed Income Review GoP raised PKR 630 billion through two T-Bill auctions during July'16, led by participation in 6M T-Bills followed by participation in 12M T-bills. Cut-off yields dropped by around 9bps, on average, during the month to 5.81%, 5.84% and 5.91% for 3M, 6M and 12M tenor government securities, respectively. In the PIB auction held on July 13th, the SBP raised PKR 222.6 billion, led by participation in 3yr tenor paper. Cut-off yields came off by around 20bps to 6.21%, 6.70% and 7.80% for 3 year, 5 year and 10year, respectively. Major participation was observed in 3 year PIBs (PKR 154.3 billion), followed by in 5 year (PKR 136.6 billion) and 10 year (PKR 103.9 billion) PIBs; however, there was no participation in 20 year tenor paper. Equities Markets Review In July, the market continued to rally on Pakistan's inclusion in the MSCI Emerging Markets Index as foreigners turned net buyers. The benchmark KSE 30 closed at 22,743 points, up 5.03% for the month. With experts projecting fresh foreign investment between USD 300 million to USD 800 million over the next year, market participants have braced themselves for a frenzy of activity last seen in Qatar and the UAE which were upgraded to Emerging Market status in 2013. Both markets rallied 40+% in the year after the announcement and hopes are strong that the PSX could see a similar re-rating in its multiples. Utilities (+13.5%) led the market on an anticipated gas price increase in H1FY17. Personal goods (+12.0%) was the next best performing sector as investors looked to benefit from attractive dividend yields. The cements sector gained 11.3% as LUCK and DGKC - stocks that are to be expected to be included in the MSCI index - rallied. The heavyweight banking sector gained 6.2% as HBL saw significant foreign interest and UBL delivered a positive earnings surprise for H1CY16. Foods (-10.9%) was the worst performing sector as investors looked to book gains following the announcement of the EFOODS acquisition. Average traded value rose 1% to reach USD 66.3 million per day. However, average volumes went down from 87 million shares per day in June to 76 million shares per day in July - a decline of 13%. Foreign investors (USD 23.2 million) were net buyers in the month along with mutual funds (USD 55.6 million) and NBFCs (USD 10.1 million). Individuals (USD -46.7 million) and Banks (USD -38.3 million) were net sellers. KSE 30's trailing 12 months (TTM) PE ratio has increased to 11.1x, however, it is still trading at a substantial discount to regional markets such as China's Shanghai Composite Index which is trading at 16.5x and India's Sensex Index which is trading at 20.6x.
Yield Curve 12.0% 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 1W
2M
6M
2Y
5Y
30-Jun-16
8Y
15Y
29-Jul-16
USD/PKR vs. Forex Reserves Forex Res. (USD bn.) - RHS USD/PKR
24.0 23.0
105.0
22.0 21.0 104.0
20.0 19.0
103.0
18.0 4-Jul
11-Jul
18-Jul
25-Jul
Market Rates
6.0%
5.0%
4.0% 11-Jul
20-Jul
6M KIBOR
O/N Repo Rate
The SBP kept the policy rate unchanged at 5.75%.
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
29-Jul 6M T-Bill
Lakson Outlook - July 2016
Economic & Markets Review - International Developed Markets Review: With a performance of +3.3% MoM in July 2016, the developing markets index pared losses from the preceding month return of -1.3%MoM. However, developing market index continued to underperform the emerging markets for the two consecutive months. The Dow Jones and the S&P 500 gained 2.9% MoM and 3.4% MoM respectively in July 2016. The FTSE 100 gained 3.1% MoM owing to appointment of a new Prime Minister, removing concerns of political uncertainty buoying investors' sentiments. Expectations of a cut in interest rate by Bank of England further added to the FTSE 100 rally. Emerging Markets Review: The MSCI EM index continued its upward trajectory in July 2016, posting a gain of 4.7% MoM compared to 3.3% MoM in the preceding month. Cumulatively, 7MCY16 return of the emerging markets index now stands at 10.0% MoM compared to -5.7% MoM in the same period last year. The notable gain in July 2016 can primarily be attributed to i) upbeat macro performance of China and ii) status quo in US interest rates. Major gain was witnessed in first half of Jul'16 (MASI EM: up 4%) where Chinese PMI index climbed to 52.7 in Jun 2016 compared to 51.2 in May 2016, marking the fastest increase in eleven months. The Fed's decision to delay the interest rate hike until December further improved the sentiment. Recovery in iron ore and steel prices during later part of July 2016 provided impetus to Brazilian stock market. As per official survey, manufacturing activity in July 2016 is expected to shrink in China which coupled with 16% MoM decline in oil prices may likely dampen the near term sentiment in emerging markets. Commodity market review: During July 2016, oil prices resumed the downtrend, marking a decline of 16% MoM on both sides of the Atlantic to $40.9/bbl (Nymex) and $40.5/bbl (Brent). Mounting inventory of both crude and gasoline in the U.S. contributed significantly to the decline in oil prices. In the Middle East, cut in oil prices by Saudi Aramco by $1.0-1.1/bbl to its Asian suppliers amid increasing competition from Russia and Iraq further dampened the sentiment. In medium to long term expected output additions in Libya will further add to the oil supplies across the globe. Post summer season weakness in demand may keep the sentiment negative in oil market. Coal prices increased by 12% in July 2016 primarily due to an increase in Chinese imports as a result of declining domestic production, more coal-fired generation in India and new coal-fired plants being built in South Korea, Taiwan and Vietnam.
Performance of Equities & Commodities 120%
MSCI World Index MSCI EM Index DB Commodity Index
100%
80%
60% Jul-15
Oct-15
Jan-16
Apr-16
Valuations of International Markets 24 20 16 12 8 4 -
DM
US
UK
Japan Canada
EM
Brazil Russia India
P/E Multiple
Oil prices resumed their downward trend.
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 - July 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 5.39% against the benchmark return of 4.90% in July 2016. The Fund outpeformed the benchmark by 0.49%. During CY16TF the Fund has returned 5.64% to unit holders against the benchmark of 5.25% and outperformed by 0.39%. Asset allocation changed with T bill allocation rising to 74% while cash exposure dropped to just 25%. As a result portfolio WAM more than doubled to 38 days. Going forward the Fund will focus on attractive deposits in order to generate returns and mitigate interest rate risk. WWF Disclosure As of July 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 1.00. 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 0.90%
Sales Tax 0.08%
SECP Fee 0.08%
Workers Welfare Fund -
Asset Allocation
Credit Split AA 25%
Cash 25%
AA+ 1%AA 66%
T-Bills 74%
AA+ 18% Govt Sec 74%
Placements with Banks & DFIs PIBs T Bills Cash Others including receivables
May-16 Jun-16 Jul-16 % of Total Assets 0% 0% 0% 0% 0% 0% 24% 25% 74% 75% 75% 25% 0% 0% 0%
WAM* Days 0 0 50 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 July 31st, 2016 Non Performing Assets WAM of Portfolio
Nil. Nil. 38 Days
Open-End Money Market Fund 5,126 100.6015 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%
Asset Allocation Instruments
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (29.7.2016) Pricing Mechanism Trustee Auditor Management Fee
600,000,000 10.56% 600,000,000 10.56%
Morningstar FY17 - YTD July-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD
LMMF 5.53% 5.53% 5.72% 5.71% 5.64% 5.60% 5.71%
Benchmark 5.01% 5.01% 5.21% 5.39% 5.37% 5.55% 5.30%
Simple Annualized FY17 - YTD July-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD 3 Years 5 Years Since Inception
LMMF 5.39% 5.39% 5.59% 5.59% 5.56% 5.60% 5.64% 7.84% 9.77% 11.80%
Benchmark 4.90% 4.90% 5.10% 5.28% 5.30% 5.55% 5.25% 8.12% 10.11% 12.03%
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
Jun-15
Benchmark
10.39% 10.39%
Oct-15
Feb-16
Jun-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 - July 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 July 2016 the LIF generated an annualized return of 5.66% against the benchmark return of 6.92%. The LIF underpeformed the benchmark by 1.26%. Over CY16TD the LIF has generated a return of 7.32% and outperformed the average income fund by 0.43%. Asset allocation remained similar to last month as the Fund chose to maintain a heavy cash position in light of the uncertainty over the July MPS in which the SBP decided to maintain the interet rate. Going forward the Fund will concentrate on building exposure to high quality corporate debt and the bond market if a significant yield reversal materializes. WWF Disclosure As of July 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 0.29. 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 1.96%
Sales Tax 0.20%
SECP Fee 0.08%
Asset Allocation
Open-End Income Fund 2,783 101.5962 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
Performance
Govt Sec 4% AA+ A AAA 2% 3% 3% Unrated 0.27%
Placements Other with Banks/ 2% DFIs 18%
Cash 65%
Workers Welfare Fund -
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (29.7.2016) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark
PIB T-Bill 2% 2% TFCs 10%
A+ 64%
Sukuk 1%
AA 19%
AA4%
Morningstar FY17 - YTD July-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD
LIF 5.81% 5.81% 7.38% 7.70% 7.07% 7.68% 7.43%
Benchmark 7.14% 7.14% 7.80% 8.24% 7.01% 7.16% 7.01%
Simple annualized FY17 - YTD July-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD 3 Years 5 Years Since Inception
LIF 5.66% 5.66% 7.16% 7.49% 6.95% 7.68% 7.32% 11.43% 12.60% 14.38%
Benchmark 6.92% 6.92% 7.55% 8.00% 6.89% 7.16% 6.89% 13.26% 12.97% 12.09%
TFCs/Sukuk Portfolio Name of the Issuer NRSP Habib Bank Limited I Bank Al Falah Limited V Askari Bank Limited IV K-Electric AZM Sukuk III
Issue Date 30-Jun-16 19-Feb-16 20-Feb-13 23-Dec-11 24-Feb-14
Rating % of Total Assets A 3.52% AAA 2.64% AA2.32% AA2.00% AA 1.47%
Asset Allocation Instruments Placements with Banks & DFIs PIBs T Bills TFCs Sukuks MTS Cash Others including receivables
May-16
Jun-16
Jul-16
21% 17% 6% 5% 1% 2% 46% 1%
% of Total Assets 19% 2% 2% 10% 1% 0% 65% 1%
18% 2% 2% 10% 1% 0% 65% 1%
LIF vs. Benchmark
WAM*
126 124
Days 156 2689 172 1859 961 0 0
122 120 118 116 114 112 110 108 106 104 102 100 Jun-14
Oct-14
Feb-15
Jun-15
Benchmark
Oct-15
Feb-16
Jun-16
LIF
* Weighted Average Maturity
Investment Committee
Non Compliant Investments Name of Non - Compliant Investment
Type of Instrument
Disclosures Leverage as on July 31st, 2016 Non Performing Assets WAM of Portfolio
Value of Investment before Provisioning
Total Provisioning Held
Nil. Nil. 301 Days
Value of Investment after Provisioning
% of Net Assets
% of Total Assets
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 - July 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 Over July the LEF generated a return of 5.69% and outperformed the KSE 30 benchmark by 66 bps. The fund received inflows towards the end of the month, which diluted overall exposure to 88% from last month's level of 91%. During the month, the fund realized gains in fairly valued stocks and trimmed exposure in Chemicals and Electricity. Allocation to Construction & Materials was increased as concerns over margin sustainability faded after a recent price hike. Going forward, the SBP's decision to maintain interest rates could drive interest in Banks and lead to profit taking on dividend plays. While earnings season will set the tone for Q1FY17, the LEF will maintain exposure in sectors set to benefit from the MSCI upgrade and CPEC flows. WWF Disclosure As of July 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 (29.7.2016) 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 3,125 120.8350 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
5.69% 5.69% 8.56% 11.62% 21.44% 14.57% 18.57% 69.89% 196.31% 251.98%
5.03% 5.03% 9.44% 12.56% 25.10% 2.27% 17.95% 25.29% 96.73% 137.84%
Total Expense Ratio (TER)
SECP Fee 0.10%
Workers Welfare Fund -
Top 10 Holdings
Asset Allocation 6.91% 6.83% 6.19% 6.17% 5.81% 5.57% 5.45% 4.90% 4.68% 3.24%
Sectorwise Exposure
Jun-16
Jul-16
Chemicals Const. & Mat. Oil & Gas Electricity Comm Banks Others
15.67% 21.54% 18.94% 9.99% 14.63% 10.62%
14.40% 22.73% 18.83% 8.38% 13.96% 10.00%
*Returns based on last working day NAV
Sectorwise Exposure Others
Chemicals
LEF vs. Benchmark 350 300
Commercial Banks
Const. & Mat.
Electricity
250 200 150 100
Oil & Gas
50
Jul-16 88% 0% 11% 1%
LEF
KSE-100
Jul-16
Jun-16
Apr-16
May-16
Mar-16
Jan-16
Feb-16
Dec-15
Oct-15
0
Nov-15
Jun-16 91% 0% 8% 1%
Sep-15
May-16 90% 0% 10% 0%
Jul-15
Equities T-Bills Cash Others Including Receivables
Equity 88%
Aug-15
Asset Allocation (% of Total Assets)
Others 1%
Cash 11%
Apr-15
DG Khan Cement Limited Pakistan State Oil Limited Lucky Cement Limited Habib Bank Limited Engro Corporation Limited Oil & Gas Development Co Pak Petroleum Limited Pioneer Cement Limited United Bank Limited Nishat Mills Limited
FY17 - YTD July-16 2 Months 3 Months 6 Months 12 Months CY16- YTD 3 Year 5 Year Since Inception
Jun-15
Sales Tax 0.26%
May-15
TER 2.62%
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 July 31, 2016 Non Performing Assets
1M Return 4.62% 3.90% -0.05% 6.29% 2.80% 3.56%
P/E 10.8 20.61 17.6 12.22 17.79 20.34
Div. Yield 5.3% 1.5% 3.1% 4.3% 2.5% 2.1%
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 - July 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 July 2016 the Lakson Tactical Fund generated an absolute return of 2.34% against the benchmark return of 2.07%. The Fund has under performed the benchmark by 1.42% over CY16TD. Allocation to TDRs was increased to 15% while exposre to T bills (3%) and PIBs (1%) remained stable. Equity exposure was maintained around 30% while cash holdings dropped to 47%. Going forward the Fund will look to increase allocation to corporate debt and high quality deposits. WWF Disclosure As of July 31th, 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 0.09. 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 2.02%
Sales Tax 0.17%
SECP Fee 0.10%
Workers Welfare Fund -
Top 10 Holdings D.G.K. Cement P.S.O. Engro Corp Pak Petroleum Oil & Gas Dev. Habib Bank Pioneer Cement Lucky Cement United Bank Engro Fert.
Sectorwise Exposure as of Cement Banks Fertilizers Oil & Gas Electricity Others
2.58% 2.44% 2.24% 2.10% 2.08% 1.90% 1.84% 1.69% 1.37% 1.16%
Jun-16 8.41% 5.53% 4.79% 4.37% 3.11% 7.71%
Asset Allocation TDRs 15%
Cash 47%
T bills 3% PIBs TFC 1% 4%
Equity 30%
Jul-16 7.87% 4.35% 4.10% 4.18% 2.45% 6.62%
Fund Type Category Net Assets (PKR Mil.) NAV (29.7.2016) Pricing Mechanism Trustee Auditor
Open-End Asset Allocation Fund 1,215 105.0219 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
Benchmark*
LTF
FY16 July-16 2 Month 3 Month 6 Month 12 Months CY15-YTD 3 Years 5 Years Since Inception
2.34% 2.34% 3.91% 3.87% 5.15% 8.45% 5.95% 22.99% NA 35.87%
2.07% 2.07% 4.25% 5.21% 7.44% 7.28% 7.37% 9.35% NA 26.21%
* The new Benchmark is effective from April 19, 2016
LTF vs. Benchmark 139 134 129 124 119
Asset Allocation
Disclosures Leverage as on July 31, 2016 Non Performing Assets
Nil. Nil.
109
Jul-16
Apr-16
Feb-16
Sep-15
Nov-15
Apr-15
Jun-15
Jan-15
Nov-14
Jun-14
Benchmark
Aug-14
Mar-14
Oct-13
Jan-14
Aug-13
May-13
Dec-12
99
Mar-13
104
Jul-12
Placements with Banks & DFIs T bills PIBs Global Commodities TFC Equities Cash
114
May-16 Jun-16 Jul-16 % of Total Assets 0% 0% 15% 12% 4% 3% 10% 1% 1% 0% 0% 0% 0% 6% 4% 35% 34% 30% 43% 55% 47%
Oct-12
Instruments
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 - July 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 July 2016 the Lakson Asset Allocation Developed Markets Fund generated an absolute return of 1.91% against the benchmark return of 1.66%. The Fund has outperformed the benchmark by 3.26% over CY16TD. Allocation has been taken in T bills (29%), PIBs (32%), Developed Market Equities (28%) and Cash (11%). Exposure in equities has been focused on US indices which offer a superior risk/return profile to other Developed Markets. WWF Disclosure As of July 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 FY16, 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)
Sales Tax 0.21%
SECP Fee 0.10%
Workers Welfare Fund -
Developed Markets Equities Jul-16 % of ETF's Assets Apple Inc 2.86% Microsoft Corp 2.20% Exxon Mobil Corp 2.13% Johnson & Johnson 1.82% General Electric Co 1.58% Amazon.com Inc 1.51% AT&T Inc 1.45% Facebook Inc 1.44% Berkshire Hathaway Inc 1.39% Verizon Communication 1.24% Vanguard S&P 500
Asset Allocation Cash 11%
T-Bills 29%
DM Equities 28%
PIBs 32%
Fund Performance
1.66% 1.66% 1.41% 1.76% 4.83% 3.12% 2.93% 87.76% NA 54.13%
159
May-16 Jun-16 Jul-16 % of Total Assets 0% 0% 0% 15% 15% 29% 38% 38% 32% 31% 31% 28% 16% 16% 11%
139 129 119
Weight 95.50% 1.73% 1.16% 0.75% 0.51%
Sectors United States Ireland Switzerland United Kingdom Singapore
Disclosures Nil. Nil.
Apr-16
Jun-16
Jan-16
Nov-15
Jul-15
Sep-15
May-15
Jan-15
Nov-14
Mar-15
Jul-14
Apr-14
Benchmark
Weight 97.08% 1.23% 0.49% 0.45% 0.32%
Sep-14
Oct-13
Feb-14
Aug-13
Vanguard S&P 500 (As of Jul-16)
QQQ ETF (As of Jul-16)
Feb-13
99
Jul-12
109
Oct-12
Placements with Banks & DFIs T-Bills PIBs Developed Markets (DM) Equities Cash
149
Dec-12
Instruments
Leverage as on July 31, 2016 Non Performing Assets
1.91% 1.91% 2.28% 4.12% 7.02% 9.16% 6.19% 27.5% NA 52.94%
LAADMF vs. Benchmark
Asset Allocation
Country United States China Singapore United Kingdom Netherlands
LAADMF Benchmark
FY17 - YTD July-16 2 Months 3 Months 6 Months 12 Months CY16-YTD 3 Years 5 Years Since Inception
Dec-13
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 10.45% 8.12% 6.55% 5.19% 4.83% 4.29% 2.98% 2.95% 2.81% 2.39%
Open-End Asset Allocation Fund 295 115.4536 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)
Apr-13
QQQ ETF
Fund Type Category Net Assets (PKR Mil.) NAV (29.7.2016) Pricing Mechanism Trustee Auditor
Jun-13
TER 2.58%
Fund Facts
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 - July 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 - July 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 July 2016 the Lakson Asset Allocation Emerging Markets Fund generated an absolute return of 0.27% against the benchmark return of 1.46%. The Fund has under performed the benchmark by 1.86% over CY16TD. Allocation has been taken in PIBs (20%) and Cash (80%). WWF Disclosure As of July 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 0.93. 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)
SECP Fee 0.09%
Emerging Market Equities
As of Jul-16
Security
% of Assets
Asset Allocation
3.62% 3.47% 3.39% 2.11% 1.95% 1.72% 1.46% 1.12% 1.07% 1.00%
PIBs 20%
Fund Performance
Asset Allocation
134 129 124 119 114 109 104
EEM Composition (As of Jul-16)
Disclosures Leverage as on July 31, 2016 Non Performing Assets
Nil. Nil.
Jul-16
May-16
Oct-15
Jan-16
Mar-16
Apr-15
Jun-15
Aug-15
Feb-15
Sep-14
Jul-14
Benchmark
Dec-14
Jan-14
Mar-14
May-14
Weight 14.06% 9.14% 8.22% 6.76% 6.12%
Aug-13
99
Sectors Banks Semiconductors Internet Telecommunications Oil&Gas
Nov-13
Weight 20.93% 14.92% 12.29% 8.41% 7.36%
Apr-13
Country China South Korea Taiwan India Brazil
1.46% 1.46% 2.52% 1.81% 5.76% 3.31% 4.39% 12.83% NA 35.56%
139
Jun-13
Placements with Banks & DFIs T-Bills PIBs Emerging Markets (EM) Equities Cash
0.27% 0.27% 0.75% 1.26% 1.99% 4.18% 2.53% 15.68% NA 30.99%
LAAEMF vs. Benchmark
May-16 Jun-16 Jul-16 % of Total Assets 0% 0% 0% 52% 0% 0% 24% 20% 20% 0% 0% 0% 24% 80% 80%
Feb-13
Instruments
LAAEMF Benchmark
FY16 July-16 2 Month 3 Month 6 Month 12 Months CY15-YTD 3 Years 5 Years Since Inception
Cash 80%
Jul-12
Samsung Electronics Co Taiwan Semiconductor Tencent Holdings Ltd Alibaba Group Holding L China Mobile Ltd Naspers Ltd China Construction Bank Baidu Inc Industrial & Commercia Hon Hai Precision Indus
Workers Welfare Fund -
Open-End Asset Allocation Fund 101 102.8577 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)
Oct-12
Sales Tax 0.11%
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (29.7.2016) Pricing Mechanism Trustee Auditor
Dec-12
TER 2.82%
MUFAPs Recommended Format
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 - July 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 - July 2016
Mutual Funds Performance Comparison Position as of August 03, 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 10.54 N/A 10.61 5.60 1.26 2.94 12.87 7.77 7.60 N/A N/A N/A N/A 7.21 7.53 5.86 8.92
90 Days 7.66 8.86 7.96 6.40 5.27 4.36 9.04 7.17 5.32 5.53 6.76 8.22 5.67 5.29 4.90 7.08 12.87
8.15 6.21 6.14 7.32 N/A 12.10 3.86 4.02 8.02 6.93 N/A 18.28
Annualized Returns (%) 180 Days 6.34 7.44 6.75 6.29 4.31 4.73 7.62 6.57 4.94 6.02 6.54 7.35 5.93 5.25 4.62 6.61 9.55
270 Days 6.13 6.80 5.18 5.69 4.29 4.51 7.05 6.57 4.85 6.03 6.61 7.10 6.00 5.29 4.46 6.92 8.76
365 Days 6.78 7.79 6.7 6.94 5.6 5.41 6.47 7.46 5.81 6.25 6.89 7.46 6.1 5.56 5.74 7.55 8.14
5.27 5.52 6.06 4.78 4.60 6.45 4.85 4.01 4.43 5.66 5.24 9.18
5.43 5.69 5.67 4.63 5.17 6.30 5.25 4.87 4.89 5.40 5.35 8.01
5.56 4.49 5.09 4.71 4.89 6.16 4.16 4.82 5.20 5.66 5.45 6.55
5.72 4.39 4.99 5.15 4.91 5.85 3.61 4.84 5.63 5.13 5.4 5.62
5.81 5.12 6.78 7.64 5.19 N/A N/A 3.80 5.41 5.44 4.66 5.34 5.38 5.18 N/A N/A 5.05 5.35 5.95 5.09 5.08
6.10 5.12 5.23 5.56 5.17 5.43 5.26 4.08 5.75 5.14 4.87 5.27 5.59 5.52 5.63 6.27 5.44 5.97 5.23 6.01 5.17
5.64 5.10 5.02 5.30 5.18 5.61 5.36 4.13 5.48 5.07 4.69 5.38 5.56 5.28 5.73 6.31 5.51 5.72 5.38 5.46 4.87
5.60 5.17 5.07 5.31 5.16 5.64 5.38 4.10 5.51 5.08 4.76 5.43 5.50 5.39 5.70 6.21 5.61 5.73 5.70 5.35 4.97
5.77 5.37 5.27 5.5 5.39 5.91 5.64 4.44 5.63 5.32 5.04 5.66 5.6 5.66 5.74 6.22 5.78 5.98 5.94 5.49 5.18
4.44 4.27 4.97
4.82 4.08 4.79
4.76 3.76 4.55
4.67 4.04 4.50
4.72 4.27 4.54
N/A = Not Available
Source: MUFAP
14
Lakson Outlook - July 2016
Mutual Funds Performance Comparison Position as of August 03, 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 9.76 6.49 7.23 6.46 8.10 5.45 34.78
90 Days 6.62 9.19 5.61 8.95 9.23 6.58 19.77
180 Days 8.42 7.44 6.42 9.64 9.35 5.50 17.21
270 Days 9.03 7.49 6.61 10.08 7.33 5.47 13.83
365 Days 9.35 8 7.73 10.67 8.86 6.96 12.74
6.41 N/A
7.44 6.78
8.22 6.65
7.31 6.93
7.53 7.29
5.66 6.29 4.61 4.31 4.85 N/A 5.79 5.69 5.97 N/A 7.68 N/A 5.18 5.68 N/A 4.43 4.46 5.92 5.77 5.26
10.62 8.85 8.27 8.08 9.41 10.52 10.66 8.15 9.18 5.93 8.15 6.86 9.70 10.44 10.72 11.51 10.41 7.85 6.76 10.30
18.33 20.73 13.20 13.11 11.90 18.29 18.81 16.15 14.41 8.83 10.02 10.19 18.09 16.89 20.96 15.02 13.47 14.51 11.79 13.66
12.55 5.29 14.89 14.65 3.13 14.94 12.86 10.89 8.33 8.11 9.65 11.86 16.70 11.96 18.37 14.67 3.88 8.65 8.95 14.76
12.7 6.59 14.92 14.88 -2.02 8.25 8.62 4.44 5.87 4.92 N/A 11.1 12.88 8.76 14.57 12.41 0.89 7.7 6.71 15.54
5.49 7.21 5.94 2.38 5.76 N/A 6.42 5.12
10.39 13.10 12.95 7.65 10.01 14.46 13.45 7.15
15.87 17.28 22.58 13.47 14.00 18.08 22.69 12.62
9.76 N/A 19.59 17.91 9.29 19.02 21.28 10.45
8.78 N/A 18.61 18.78 5.79 13.1 20.44 9.76
3.97 3.99 N/A 3.63 3.98
5.84 8.45 9.06 8.16 5.39
4.47 11.73 15.46 12.37 5.90
(2.33) 8.08 14.18 9.08 6.61
6.72 7.66 11.87 7.76 7.84
4.08 3.89
6.39 8.03
11.64 14.60
7.07 13.39
4.04 13.54
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 - July 2016
Mutual Funds Performance Comparison Position as of August 03, 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 4.85 3.63 3.77 1.96 0.25 2.12 3.42 0.50 N/A 6.35 2.74
90 Days 9.83 5.98 3.47 3.96 1.15 3.76 5.63 1.46 7.22 8.90 6.54
180 Days 15.43 7.00 4.79 7.36 1.94 5.08 7.22 2.78 13.20 13.63 10.08
270 Days 18.16 (1.51) (2.68) 5.53 2.45 6.07 5.75 N/A 12.52 11.08 11.08
365 Days 18.94 -4.31 -3.18 9.22 4.17 8.38 6.1 N/A 10.12 11.19 12.38
2.69 3.95 N/A 5.55 4.82
5.30 7.77 9.05 7.42 11.96
8.50 9.16 15.02 13.01 17.07
9.17 4.43 14.92 11.57 14.07
9.73 1.43 14.38 13.69 9.16
0.91 1.08
1.92 2.30
3.68 3.16
4.76 2.47
5.69 0.85
N/A N/A
5.99 7.37
8.66 11.06
7.65 7.67
6.52 5.1
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 - July 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
4.2%
3.2%
-2.5%
23.9%
4.2%
3.2%
-2.5%
23.9%
Developed
MSCI World Index
3.5%
3.1%
-2.5%
31.8%
3.5%
3.1%
-2.5%
31.8%
Emerging
MSCI Emerging Markets Index
10.0%
4.0%
-3.1%
-23.2%
10.0%
4.0%
-3.1%
-23.2%
Europe
MSCI Europe Index
-3.5%
-2.1%
-13.0%
-2.0%
-3.5%
-2.1%
-13.0%
-2.0%
China
CSI 300
-14.1%
1.5%
-16.1%
7.8%
-14.1%
1.5%
-16.1%
7.8%
Dubai
DFM
0.0%
0.0%
0.0%
159.8%
0.0%
0.0%
0.0%
159.8%
India
BSE Sensex 30
7.4%
9.5%
-0.2%
54.2%
7.4%
9.5%
-0.2%
54.2%
Japan
Nikkei 225
-12.9%
-0.6%
-19.5%
68.5%
-12.9%
-0.6%
-19.5%
68.5%
Malaysia
FTSE Bursa
-2.3%
-1.2%
-4.1%
6.7%
-2.3%
-1.2%
-4.1%
6.7%
Pakistan
KSE 100
20.5%
13.9%
10.6%
224.3%
20.5%
13.9%
10.6%
224.3%
Sri Lanka
Colombo All Share
-7.3%
-1.9%
-12.8%
-6.9%
-7.3%
-1.9%
-12.8%
-6.9%
UK
FTSE 100
7.7%
7.7%
0.4%
15.6%
7.7%
7.7%
0.4%
15.6%
US
DJIA
5.8%
3.7%
4.2%
51.8%
5.8%
3.7%
4.2%
51.8%
US
S&P 500
6.3%
5.2%
3.3%
68.2%
6.3%
5.2%
3.3%
68.2%
US
NASDAQ 100
3.0%
9.0%
3.1%
100.2%
3.0%
9.0%
3.1%
100.2%
Germany
DAX Index
-3.8%
3.0%
-8.6%
44.4%
-3.8%
3.0%
-8.6%
44.4%
CANADA
TSX 300 Composite Index
12.1%
4.5%
0.8%
12.6%
12.1%
4.5%
0.8%
12.6%
France
CAC - 40
-4.3%
0.2%
-12.6%
20.9%
-4.3%
0.2%
-12.6%
20.9%
Brazil
Sao Paulo SE Bovespa Index
32.2%
6.3%
12.7%
-2.6%
32.2%
6.3%
12.7%
-2.6%
Korea
Korea SE Kospi
2.8%
1.1%
-0.7%
-5.5%
2.8%
1.1%
-0.7%
-5.5%
Taiwan
Taiwan SE Weighted Index
7.8%
7.2%
3.7%
3.9%
7.8%
7.2%
3.7%
3.9%
-30%
-5%
20%
45%
70%
KSE Sectors Automobile and Parts
11.9%
21.3%
11.8%
563.4%
11.9%
21.3%
11.8%
563.4%
Banks
6.7%
14.9%
1.4%
125.5%
6.7%
14.9%
1.4%
125.5%
Chemicals
-0.8%
7.2%
-5.6%
116.7%
-0.8%
7.2%
-5.6%
116.7%
Construction and Materials
35.7%
21.5%
36.8%
1212.8%
35.7%
21.5%
36.8%
1212.8%
Electricity
12.3%
16.7%
10.6%
230.8%
12.3%
16.7%
10.6%
230.8%
Fixed Line Telecommunication
0.3%
10.0%
-19.4%
-9.0%
0.3%
10.0%
-19.4%
-9.0%
Food Producers
1.3%
3.9%
-10.6%
156.9%
1.3%
3.9%
-10.6%
156.9%
Non Life Insurance
-7.3%
-7.3%
2.3%
168.4%
-7.3%
-7.3%
2.3%
168.4%
Oil and Gas
30.3%
24.4%
-3.8%
33.2%
30.3%
24.4%
-3.8%
33.2%
Personal Goods
6.7%
8.3%
1.7%
183.5%
6.7%
8.3%
1.7%
183.5%
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
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%
6.50%
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%
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%
Government Securities
Interbank Jul 16
6.75%
China
Current Market Yields on
Govt. Securities vs. KIBOR
7.00%
5.75% 5.50% 5.25% 5.00% 1W
Historic 12-Month Paper Rates
3M
12M
5Y
10Y
YTD
3-mo
1-yr
2-yr
China
2.35%
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%
#N/A
#N/A
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. Jul 16
3%
6%
9%
Lakson Outlook - July 2016
12%
Markets Information Commodities Total Return Commodity
Unit
YTD
3-mo
1-yr
Current Prices 5-yr
DB Commodity Index
USD Excess Return
7.6%
-1.4%
-8.8%
-49.9%
297.1
S&P Global Commodity Index
USD Total Return
-0.7%
-7.5%
-22.2%
-58.5%
2156.5
Dow Jones UBS Commodity Index
USD Total Return
Coal
USD/Tonne
Copper
USc/lbs
Cotton Gold
7.5%
-1.4%
-8.0%
-48.0%
170.1
20.8%
20.5%
1.4%
N.A
61.2
4.1%
-2.5%
-6.0%
-50.4%
222.2
USc/lbs
17.2%
16.3%
15.9%
-27.4%
74.2
USD/t oz.
27.2%
4.5%
23.2%
-17.2%
1349.0
Palm Oil
USD/Tonne
5.4%
-10.6%
5.8%
-44.0%
587.1
Sugar
USc/lbs
25.0%
17.9%
71.0%
-36.1%
19.1
Wheat
USD/Bushel (60Ibs)
-13.2%
-14.7%
-18.3%
-39.4%
4.1
WTI
USD/bbl
12.3%
-9.4%
-11.7%
-56.5%
41.6
Brent Crude
USD/bbl
13.9%
-11.8%
-18.7%
-63.6%
42.5
Heating Oil
USd/Gallon
15.9%
-7.4%
-19.4%
N.A
127.6
RBOB Gasoline
USD/Gallon
4.3%
-16.6%
-28.2%
-57.6%
1.3
Natural Gas
USD/MMBTU
23.1%
32.0%
5.9%
-30.6%
2.9
Silver
USD/t Ozs
47.4%
14.4%
38.0%
-49.3%
20.3
Currencies Change Versus PKR in %
Current Exchange Rates
YTD
3-mo
1-yr
5-yr
0.00%
0.00%
1.39%
-12.90%
CAD - PKR
Canadian Dollar
CAD
78.87
Euro
EUR
0.00%
0.00%
4.28%
-6.42%
EUR - PKR
116.61
Indian Rupee
INR
0.00%
0.00%
0.00%
-8.41%
INR - PKR
1.7941
Japanese Yen
JPY
0.00%
0.00%
5.78%
55.21%
JPY - PKR
0.8692
Pound Sterling
GBP
0.00%
0.00%
-0.47%
11.37%
GBP - PKR
158.28
Singaporian Dollar
SGD
0.00%
0.00%
-1.74%
1.41%
SGD - PKR
72.89
US Dollar
USD
0.00%
0.00%
2.65%
20.70%
USD - PKR
104.48
120
DBCI
SPGSCI
DJUBS
110 100 90 80 70 60 50 Jul-15
190
Sep-15
Nov-15
GBP
Jan-16
EUR
Mar-16
CAD
May-16
Jul-16
USD
170 150 130 110 90 70 Jul-15 Sep-15 Oct-15 Dec-15 Jan-16 Feb-16 Apr-16 May-16 Jun-16
18
Lakson Outlook - July 2016
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 - July 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