June 2012
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 Asset Allocation Global Commodities Fund Mutual Funds Performance Comparison Markets Information
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Table of contents Economic & Markets Review
04 - 05
Lakson Money Market Fund
06
Lakson Income Fund
07
Lakson Equity Fund
08
Lakson Asset Allocation Global Commodities Fund
09
Lakson Asset Allocation Developed Markets Fund
10 - 11
Lakson Asset Allocation Emerging Markets Fund
12 - 13
Mutual Funds Performance Comparison
14 - 15
Markets Information
16 - 17
03
Lakson Outlook - June 2012
Economic & Markets Review - Pakistan Economic Review (Monetary and Fiscal) Consumer Price Index ("CPI") inflation for June '12 stood at 11.26% YoY and 0.04% MoM which were below market expectations on the back of sharp reduction in prices for perishable food items (down 7.9% MoM), stable prices for non-perishable food items and up to 7% decline in petroleum product prices. This contained the FY12 average CPI inflation at 11.01%, well within government's original target of 11-12%. On the fiscal front, tax revenue collection stood at PKR 1.8 trillion up till June 25, 2012. While showing a double digit YoY growth, the collection is likely to fall short of government's revised target of PKR 1.95 trillion for FY12. The external account numbers however continue to show a more challenging environment. Trade deficit increased by 14% MoM to USD 1.7 billion in May '12 as exports were down 4% MoM to USD 2.2 billion while imports swelled by 4% MoM to USD 3.9 billion. Overall trade deficit for 11MFY12 surged 37% MoM to USD 19.4 billion. Resultantly, current account deficit expanded to USD 3.8 billion during 11MFY12 compared to a deficit of only USD 79 million during the same period last year. While robust growth in overseas remittances continued to provide the much needed cushion, repayments to the IMF and shortfall in budgeted foreign inflows continued to pressurize Pakistan's foreign exchange reserves. Pakistan repaid principal payments of USD 908 million to the IMF during FY12, out of which third installment of USD 108 million was paid on June 29, 2012. Resultantly, Pakistan's foreign exchange reserves dipped to USD 15.0 billion by June 22, 2012 (which does not account for the last tranche), compared to USD 18.2 billion at the end of last fiscal year. The Pak Rupee thus continued to remain under pressure as it closed the year at PKR 94.6 against the USD, down 0.9% MoM during June '12 and 10.0% during FY12. Fixed Income Review The liquidity position in the money market remained relatively tight during June '12 as the average overnight repo rates inched up by 38 bps to 11.39% compared to 11.01% witnessed during the preceding month. State Bank of Pakistan ("SBP") injected an average of PKR 112 billion through Open Market Operations during the month which, however was in-line with that recorded in May '12. In the two T-bill auctions conducted during June '12, the government raised PKR 176 billion which fell short of the target of PKR 205 billion despite maturities of PKR 253 billion during the month. With discount rate being maintained at 12% in the June-July Monetary Policy, only a minor adjustment was witnessed in 3M and 6M average T-bill yields which edged up by 5 bps and 3 bps to 11.88% and 11.94% respectively. However the average yield on 12M T-bill declined slightly by 1bps to 11.96%. M2 growth stood at 11.69% up till June 22, 2012, driven up by 18.17% increase in Net Domestic Assets. Equity Market Review Amidst increasing concerns on Pakistan-US relationship and fluid domestic political climate, Pakistan equities failed to build on the post-budget momentum as KSE 100 gained a mere 0.1% MoM during June '12. Risk aversion arising from Euro debt crisis added to the negative sentiments as foreign portfolio investors turned net sellers after posting four consecutive months of net inflows. Net FIPI outflow was recorded at USD 109 million during June '12, while after stripping Hub Power's one-off sale the net outflow stood at USD 44 million, still the highest net monthly outflow since March '09. Trading activity too dipped sharply as average daily traded value was recorded at USD 31 million, down 58% MoM. The outgoing month also wrapped up the fiscal year 2011-12 which saw KSE 100 post a mere gain of 10.4%. While the return for the year was significantly low when compared to historical annual average for KSE 100, it still managed to place Pakistan equities amongst the best performing markets in the world. In terms of major developments, the CGT relief package bagged the limelight as it revived sentiments and trading activity at the bourse. Amongst major listed sectors, Fertilizer and Cements remained in the news flow as the former was hit by unprecedented gas curtailment and subsidized influx of imported urea while the latter gained on the back of recovery in domestic demand and retention prices. Looking ahead, with signs of improvement in Pakistan-US relationship the upcoming dividend laden result season is likely to allow valuations to catch up with the underlying fundamentals.
Yield Curve
15.0% 14.0% 13.0% 12.0% 11.0% 1W
2M
6M
2Y
31-May-12
5Y
8Y
15Y
29-Jun-12
USD/PKR vs. Forex Reserves
16.0
Forex Res. (USD bn.) - RHS USD/PKR
95.8
15.8
95.0 15.5 94.3
15.3
93.5
15.0
92.8
14.8
92.0
14.5 1-Jun
8-Jun
15-Jun
22-Jun
29-Jun
Market Rates 13.0% 12.0% 11.0% 10.0% 9.0% 1-Jun 6M KIBOR
10-Jun
19-Jun
O/N Repo Rate
28-Jun 6M T-Bill
Pakistan's foreign exchange reserves dipped to USD 15.0 billion by June 22, 2012 compared to USD 18.2 billion at the end of last fiscal year.
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. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily an indication of future results.
04
Lakson Outlook - June 2012
Economic & Markets Review - International Developed Markets Following a sharp downturn in the preceding month, the global equity markets posted a strong rebound in June '12 on the back of 1) agreement on Spanish banking sector bailout, 2) favorable outcome of Greece elections, 3) US Fed announcement on extension of Operation Twist and 4) pro-market announcements from European summit. Resultantly MSCI World surged 4.9% during the month, taking 1HCY12 gains to 4.5%. The main impetus was provided by MSCI Europe which gained 7.7% during June '12. During the month under review, Spain formally requested a EUR 100 (USD 125) billion bailout to recapitalize its banking system which ultimately gave comfort to the capital markets that a firewall has been put in place in case Euro crisis deteriorates any further. Greece, which was bailed out earlier, also contributed to the positive sentiments as the conservative New Democracy Party won the elections, affirming the nation's plans to enact the austerity measures needed to obtain the next round of bailout funds. Lastly, the Eurozone summit held at the end of June '12 pleasantly surprised the markets by agreeing to let the currency bloc's two rescue funds inject aid directly into weak banks - bypassing (usually over-indebted) governments. Moreover, it was further agreed not to give senior status to creditor governments when compared to bondholders. In the US, the Federal Reserve lowered its growth, employment and inflation outlook and now expects the economy to expand between 1.9% and 2.4% during the year, with acceleration seen in 2013 and 2014. Accompanying slower 2012 growth will be higher unemployment of 8.0 - 8.2% by year end. In response, the Fed extended its Operation Twist program up till the end of the year and enhanced the size by USD 267 billion. The program aims to sell shorter-term US securities and buy the same amount of longer-term debt in a bid to reduce borrowing costs and spur the economy. Amongst other developed markets, Australia made headlines as its Reserve Bank cut the benchmark interest rate by 25 bps to 3.5%, the lowest since 2009. The country's GDP was later reported to have grown at 1.3% QoQ during 1QCY12, which was more than twice the pace forecasted by economists. Emerging Markets The MSCI Emerging Markets gained 3.4% during June '12, allowing the index to recoup its earlier losses and post a decent return of 2.3% for 1HCY12. While most emerging economies continue to show signs of slow down, the major impetus for the markets proved to be improved risk perception on European debt crisis. India which accounts for 7% of MSCI Emerging Markets Index saw its benchmark BSE Sensex 30 move up 7.5% during June '12 while China which accounts for 13% of the index posted a loss of 6.5% in its benchmark CSI 300. Indian equities managed to post robust performance despite expectations that the country may become the first BRIC (Brazil, Russia, India, China) nation to lose its investment grade credit rating. Standard & Poor's currently rates India BBB- with a negative outlook on the back of slowing growth and political roadblocks to economic policy making. While soaring inflation and rising current account deficit did not allow Indian Central Bank to lower its interest rates, China cut its benchmark interest rates by 25 bps. The cut was the first since 2008 and the government's strongest monetary response so far to a weakening economy. Amongst other emerging economies, Vietnam stood out as its Planning Ministry said that the economic growth may slump to as low as 5.2% in 2012, which would be the slowest pace in more than a decade. Global Commodities DB Commodity index rounded off June '12 with a gain of 2.1%, trimming 1HCY12 losses to 3.5%. Oil and its bi-products, which account for the largest weight in the index, ended up in the negative zone as WTI Nymex and Brent crude oil declined by 1.8% and 4.0% respectively during the month. However impetus to the overall index was provided by wheat which was up 14.8% MoM, sugar up 12.3% MoM, copper up 3.7% MoM and gold up 2.7% MoM. While most food items and precious metals soared during the outgoing month, the performance for energy and industrial commodities remained lackluster on the back of ongoing slowdown in Chinese economy. The country's manufacturing activity fell to a seven-month low as the official Purchasing Managers' Index ("PMI") slipped to 50.2 from 50.4 in May.
Performance of Equities & Commodities 140% MSCI World Index DB Commodity Index
MSCI EM Index
120%
100%
80%
60% Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Apr-12
Valuations of International Markets
16
12
8
4
-
DM
US
UK
Japan
EM
Brazil Russia India China
P/E Multiple
In the US, the Federal Reserve lowered its growth, employment and inflation outlook and now expects the economy to expand between 1.9% and 2.4% during the year.
The last trading day for the outgoing month, however, provided a major sigh of relief for commodity markets in general and crude oil in particular. Driven by pro-markets decisions taken at European Summit, WTI Nymex posted the biggest single day surge of 9.4% in 3 years.
05
Lakson Outlook - June 2012
Lakson Money Market Fund 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 ("LMMF") yielded an annualized return of 10.40% in June '12 compared to the Benchmark (average return of all money market funds) return of 10.10% p.a. The LMMF outperformed the average money market fund by 30bps. The LMMF continues to provide liability related to the Workers Welfare Fund ("WWF") that has a negative impact of approximately 20bps in monthly annualized performance. Many money market funds started providing the WWF in June '12 and therefore they provided very low returns. The yield since inception (13th November 2009) of the LMMF stood at 11.28% p.a. compared to a 11.32% p.a. return for the average money market fund. During the month the LMMF increased exposure in the TDRs to 40% compared to 7% at the start of the month as the TDRs were offering better yields than the T-Bills. The TDRs were placed with commercial banks rated at least 'AA'. As of June 30, 2012, the Weighted Average Maturity ("WAM") of the LMMF portfolio was 33 days compared to 41 days at the start of the month. The portfolio of the LMMF still offers very high liquidity and as of June 30, 2012, 60% of the LMMF portfolio comprised of instruments that can be liquidated within six (6) business days keeping in view the present market situation. The Standard Deviation, a measure of the volatility of the fund's performance, of monthly returns of the LMMF since inception is just 1.00%. WWF Disclosure As of June 30, 2012, the LMMF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 23.87 million. If the same were not made the NAV per unit of the LMMF would be higher by PKR 0.3501. If the LMMF would not have made the WWF provisions during FY12, the return of the LMMF for FY12 would be higher by 0.20%. For details investors are advised to read the Note 9.1 of the latest Financial Statements (Quarterly Report as of March 31, 2012) of the LMMF.
Credit Split
Asset Allocation
AA 40%
TDRs 40%
AAA 60%
T-Bills 60%
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (30.06.2012) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark Dealing Days Cut-Off Time Fund Rating Asset Manager Rating
Open-End Money Market Fund 6,876 100.8703 Previous Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 1.25% None None November 13, 2009 Average of returns earned by Money Market Funds in the industry. Mon - Fri 04:00 PM 'AA' by PACRA AM3+
Performance Morningstar June-12 2 Months 3 Months 6 Months 12 Months CY12 - YTD FY12 Since Inception
LMMF 10.40% 10.46% 10.49% 10.50% 11.19% 10.50% 11.19% 11.28%
Benchmark 10.10% 10.39% 10.53% 10.59% 11.31% 10.59% 11.31% 11.32%
Simple Annualized June-12 2 Months 3 Months 6 Months 12 Months CY12 - YTD FY12 Since Inception
LMMF 9.93% 10.03% 10.10% 10.24% 11.19% 10.24% 11.19% 12.35%
Benchmark 9.66% 9.96% 10.14% 10.32% 11.31% 10.32% 11.31% 12.39%
LMMF vs. Benchmark 112 110
Asset Allocation
108
Instruments
Apr-12
Government Securities (T-Bills) Placements with Banks (TDRs) Placements with DFIs (LOPs) Cash
72% 23% 4% 1%
May-12 Jun-12 % of Net Assets 84% 60% 7% 40% 8% 0% 1% 0%
WAM* Days 44 17 0 1
106 104 102 100 Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Benchmark
Apr-12
Jun-12
LMMF
* Weighted Average Maturity
Investment Committee
Key Interest Rates (Monthly Average) KIBOR (1W, 1M, 3M, 6M, 12M) T-Bills (3M, 6M, 12M) Repo (O/N, 1M, 3M, 6M, 12M)
11.97% 11.88% 11.39%
12.07% 11.94% 11.74%
11.97% 11.96% 11.81%
* Source: Bloomberg, Reuters
Disclosures Leverage as on June 30, 2012 Non Performing Assets WAM of Portfolio
06
Nil. Nil. 33 Days
12.03%
12.38%
11.86%
11.87%
Babar Ali Lakhani Iqbal Ali Lakhani A. Aziz H. Ebrahim Muhammad Umair Chauhan Amir Mobin Hamad Aslam, CFA Syed Imran Raza Kazmi Muhammad Qasim
Chairman
Lakson Outlook - June 2012
Lakson Income Fund 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 The Lakson Income Fund ("LIF") provided an annualized yield of 12.75% for the month of June '12, compared to the Benchmark return (average return of all income funds) of 11.99%. The LIF outperformed the average income fund by 76bps. The yield since inception (13th November 2009) of the LIF stands at an annualized rate of 11.51%, compared to the Benchmark return of 8.14% p.a. During the month the LIF increased exposure in TDRs to 20% compared to 7% at the start of the month. The TDRs were placed with commercial banks rated at least 'AA'. The short term Sukuk of Kot Addu Power Company matured during June '12 that reduced the exposure of the LIF in commercial papers to 9%. As of June 30, 2012, the WAM of the LIF portfolio was 452 compared to 475 days at the start of the month. As of June 30, 2012, 52% of the LIF portfolio comprised of liquid instruments that can be liquidated within six (6) business days keeping in view the prevailing market conditions. In a situation where the income funds are providing very volatile returns, the standard deviation of annualized monthly returns of the LIF is only 1.51% compared to 5.22% for the Benchmark. WWF Disclosure As of June 30, 2012, the LIF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 5.30 million. If the same were not made the NAV per unit of the LIF would be higher by PKR 0.3799. If the LIF would not have made the WWF provisions during FY12, the return of the LIF for FY12 would be higher by 0.22%. For details investors are advised to read the Note 9.1 of the latest Financial Statements (Quarterly Report as of March 31, 2012) of the LIF.
Asset Allocation
Credit Split
Cash CPs 1% 9% TFCs 19%
AA10%
A+ 1%
AA 24%
T-Bills 51%
TDRs 20%
AAA 51%
AA+ 15%
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (30.06.2012) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date
Open-End Income Fund 1,414 101.3505 Forward Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 1.50% 1.50% None November 13, 2009 Average of returns earned by the Income Funds in the industry Mon - Fri 04:00 PM (Mon-Fri) 'AA-' by PACRA AM3+
Benchmark Dealing Days Cut-Off Time Fund Rating Asset Manager Rating
Performance Morningstar June-12 2 Months 3 Months 6 Months 12 Months CY12 - YTD FY12 Since Inception
LIF 12.75% 11.70% 11.49% 10.85% 11.57% 10.85% 11.57% 11.51%
Benchmark 11.99% 11.90% 8.21% 9.43% 8.86% 9.43% 8.86% 8.14%
Simple annualized June-12 2 Months 3 Months 6 Months 12 Months CY12 - YTD FY12 Since Inception
LIF 12.06% 11.17% 11.03% 10.57% 11.57% 10.57% 11.57% 12.61%
Benchmark 11.19% 11.32% 7.85% 9.19% 8.86% 9.19% 8.86% 8.87%
LIF vs. Benchmark TFCs Portfolio Name of the Issue Askari Bank Limited Bank Al Habib Limited NIB Bank Limited Orix Leasing Pakistan Limited Pakistan Mobile Communication Standard Chartered Bank United Bank Limited
112
Issue Date 23-Dec-11 30-Jun-11 05-Mar-08 30-Jun-11 18-Apr-12 29-Jun-12 14-Feb-08
Rating AAAA A+ AA+ AAAA+ AA
% of Net Assets 4.96% 1.51% 1.05% 4.00% 4.72% 1.77% 1.07%
110 108 106 104 102 100 Jun-11
Asset Allocation Instruments Government Securities (T-Bills) Placements with Banks (TDRs) Term Finance Certificates (TFCs) Commercial Papers (CPs) Cash
Apr-12 50% 18% 18% 13% 1%
May-12
* Weighted Average Maturity
Disclosures Leverage as on June 30, 2012 Non Performing Assets WAM of Portfolio
07
Jun-12
% of Net Assets 59% 51% 7% 20% 20% 19% 12% 9% 2% 1%
Nil. Nil. 452 Days
WAM* Days 62 18 2,176 34 1
Aug-11
Oct-11
Dec-11
Feb-12
Benchmark
Apr-12
Jun-12
LIF
Investment Committee Babar Ali Lakhani Iqbal Ali Lakhani A. Aziz H. Ebrahim Muhammad Umair Chauhan Amir Mobin Hamad Aslam, CFA Syed Imran Raza Kazmi Muhammad Qasim
Chairman
Lakson Outlook - June 2012
Lakson Equity Fund 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 The Lakson Equity Fund ("LEF") declined by 0.56% in June '12 compared to the KSE-100 Index return of 0.11%. The LEF has provided a cumulative return of 31.30% since its inception. During the month, the LEF reduced its exposure in equities to 77% compared to 79% at the start of the month. The LEF realized gains in Oil & Gas Sector and reduced its exposure to 21.15% from 27.82% at the start of the month as the international oil prices declined significantly during the month and the profitability of the Oil & Gas sector is directly linked with the international oil prices. As the uncertainties regarding taxation on banking sector in the budget subsided, the LEF increased its exposure in Banks to 20.5% from 15.84%. The LEF has higher exposure in those sectors and companies that can outperform their peers in tough economic situations. Presently the market is trading at a P/E multiple of 6.61x with an average dividend yield of 6.97% and it continues to trade at a discount to regional markets. WWF Disclosure As of June 30, 2012 the LEF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 0.74 million. If the same were not made the NAV per unit of the LEF would be higher by PKR 0.5660. If the LEF would not have made the WWF provisions during FY12, the return of the LEF for FY12 would be higher by 0.23%. For details investors are advised to read the Note 7.1 of the latest Financial Statements (Quarterly Report as of March 31, 2012) of the LEF.
Asset Allocation
Top 10 Holdings (In Alphabetical Order) Attock Petroleum Limited D.G. Khan Cement Fatima Fertilizer Company Limited Fauji Fertilizer Company Limited Lucky Cement Limited MCB Bank Limited Oil & Gas Development Company Pakistan Oilfields Limited Pakistan Petroleum Limited The Hub Power Company
3.58% 4.39% 4.57% 6.71% 6.41% 5.36% 4.40% 5.29% 7.88% 3.88%
Sectorwise Exposure
May-12
Jun-12
27.82% 15.84% 11.48% 10.14% 6.15% 8.04%
21.15% 20.50% 11.28% 10.81% 4.90% 7.95%
Oil & Gas Commercial Banks Chemicals Construction & Materials Personal Goods Others
Asset Allocation Equities T-Bills Cash & Equivalents
Cash & Equi. 23%
08
LEF
KSE-30
KSE-100
June-12 2 Months 3 Months 6 Months 12 Months CY12 - YTD FY12 Since Inception
-0.56% -1.93% -0.36% 21.38% 9.74% 21.38% 9.74% 31.30%
-0.24% -2.69% -1.58% 17.12% 2.90% 17.12% 2.90% 24.68%
0.11% -1.35% 0.29% 21.62% 10.45% 21.62% 10.45% 52.21%
Sectorwise Exposure
LEF vs. Benchmark 120
Others
115
Personal Goods
Oil & Gas
110 105
Const. & Mat.
100
Commercial Banks
Chemicals
May-12 79% 0% 21%
Index KSE-100 BSE Sensex 30 FTSE KLCI DFM General DJIA S&P 500
Disclosures Leverage as on June 30, 2012 Non Performing Assets
Performance
95 90 85 Jun-11
Apr-12 76% 21% 3%
Open-End Equity Fund 146 112.1531 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 3.00% 3.00% None November 13, 2009 KSE-100 Index Mon-Fri 04:00 PM AM3+
Equities 77%
1M Return 0.11% 7.47% 1.17% -1.33% 3.93% 3.96%
P/E 6.61 15.13 14.72 10.11 12.29 13.06
Aug-11 LEF
Jun-12 77% 0% 23%
Pakistan vs. Global Markets Country Pakistan India Malaysia Dubai USA USA * Source: Reuters, Bloomberg
Fund Facts
Fund Type Category Net Assets (PKR Mil.) NAV (30.06.2012) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark Dealing Days Cut-Off Time Asset Manager Rating
Div. Yield 6.97% 1.80% 3.57% 3.79% 2.70% 2.21%
Oct-11
Dec-11
Feb-12
KSE-100
Apr-12
Jun-12
KSE-30
Investment Committee Babar Ali Lakhani Iqbal Ali Lakhani A. Aziz H. Ebrahim Muhammad Umair Chauhan Amir Mobin Hamad Aslam, CFA Syed Imran Raza Kazmi Muhammad Qasim
Chairman
Nil. Nil.
Lakson Outlook - June 2012
Lakson Asset Allocation Global Commodities Fund Investment Objective The investment objective of the Lakson Asset Allocation Global Commodities Fund is to provide long-term capital appreciation by investing in a mix of domestic debt and commodities. Performance Review The Lakson Asset Allocation Global Commodities Fund ("LAAGCF") increased by 0.88% in June '12 compared to the Benchmark (70% 6-month T-Bills + 30% DB Commodity Index) return of 1.60%. The LAAGCF has appreciated by 5.85% since its inception compared to the 7.25% increase in the benchmark. During the month, the LAAGCF increased its exposure in global commodities to 15% compared to 8% at the start of the month. The LAAGCF aims to gradually increase its exposure in commodities using Dollar cost averaging approach. The total international exposure of the LAAGCF is 30% which includes 15% exposure in foreign currency (USD) deposits and 15% exposure in DB Balanced Commodity ETF which tracks the performance of DBLC-OY Balanced Index. WWF Disclosure As of June 30, 2012 the LAAGCF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 0.42 million. If the same were not made the NAV per unit of the LAAGCF would be higher by PKR 0.1193 and the return of the LAAGCF for FY12 would be higher by 0.12%. For details investors are advised to read the Note 7.1 of the latest Financial Statements (Quarterly Report as of March 31, 2012) of the LAAGCF.
Global Commodities (DB Balanced Commodity ETF) Commodity Gold Soybeans Corn Wheat RBOB Gasoline Brent Crude Light Crude Heating Oil Sugar Copper Zinc Aluminium Silver Natural Gas
Asset Allocation
Weight 13.09% 9.51% 8.42% 7.98% 7.73% 7.69% 7.69% 7.62% 6.55% 6.39% 6.02% 5.67% 2.90% 2.72%
USD Deposit 15%
Cash 2%
Commodities 15% T-Bills 69%
Government Securities (T-Bills) Cash (Local Currency PKR) Foreign Currency Deposit Global Commodities
Jun-12 33.46% 32.47% 18.08% 15.99%
Base Metals 18.08%
09
Fund Performance
LAAGCF
Benchmark
0.88% 1.43% 1.88% 2.16% 2.83% 3.70% 3.70% 5.85%
1.60% -0.24% 0.29% 0.30% 2.61% 4.59% 4.59% 7.25%
1 Month 2 Month 3 Month 4 Month 5 Month 6 Month CY12 - YTD FY12* *Since Inception
LAAGCF vs. Benchmark
Apr-12 70% 0% 24% 6%
105
Energy 33.46%
103 101
Agriculture 32.47%
Disclosures Leverage as on June 30, 2012 Non Performing Assets
Dealing Days Cut-Off Time Fund Rating Asset Manager Rating
107
Asset Allocation Instruments
Open-End Asset Allocation Fund 374 105.8456 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 2.00% 2.50% None October 10, 2011 30% DB Commodity Index +70% 6-month TBills Mon - Fri 04:00 PM In Process AM3+
Benchmark
Sectorwise Exposure Precious Metals 15.99%
Sectorwise Exposure Energy Agriculture Base Metals Precious Metals
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (30.06.2012) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date
May-12 Jun-12 % of Net Assets 69% 69% 2% 1% 21% 15% 8% 15%
99 Oct-11 Nov-11
Jan-12
Feb-12
Benchmark
Mar-12
Apr-12
May-12 Jun-12
LAAGCF
Investment Committee Babar Ali Lakhani Iqbal Ali Lakhani A. Aziz H. Ebrahim Muhammad Umair Chauhan Amir Mobin Hamad Aslam, CFA Syed Imran Raza Kazmi Muhammad Qasim
Chairman
Nil. Nil.
Lakson Outlook - June 2012
Lakson Asset Allocation Developed Markets Fund Investment Objective The investment objective of the Lakson Asset Allocation Emerging Markets Fund is to provide long-term capital appreciation by investing in a mix of domestic debt and emerging market securities. Performance Review The Lakson Asset Allocation Developed Markets Fund ("LAADMF") increased by 1.28% in June'12 compared to the Benchmark (70% 6-month T-Bills + 30% MSCI World Index) return of 2.45%. The LAADMF appreciated by 6.42% since its inception compared to 10.63% increase in the Benchmark. During the month, the LAADMF increased exposure in Developed Markets equities to 15% compared to 8% at the start of the month. The LAADMF aims to gradually increase its exposure in Developed Market equities using Dollar cost averaging approach. The total international exposure of the LAADMF is 30% which includes 15% exposure in foreign currency (USD) deposits and 15% exposure in iShares MSCI World ETF which tracks the performance of the MSCI World Index. WWF Disclosure As of June 30, 2012 the LAADMF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 0.40 million. If the same were not made the NAV per unit of the LAADMF would be higher by PKR 0.1310 and the return of the LAADMF for FY12 would be higher by 0.13%. For details investors are advised to read the Note 7.1 of the latest Financial Statements (Quarterly Report as of March 31, 2012) of the LAADMF.
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (30.06.2012) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark Dealing Days Cut-Off Time Fund Rating Asset Manager Rating
Fund Performance 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month CY12 - YTD FY12 *
Asset Allocation
Developed Market Equities (iShares MSCI World ETF) Security % of ETF's Assets Apple Incorporation 2.31% Exxon Mobil Corporation 1.73% Microsoft Corporation 1.00% General Electric Co 0.96% Intl Business Machines Corporation 0.96% AT&T Inc 0.93% Nestle SA 0.89% Chevron Corporation 0.89% Johnson & Johnson 0.80% Pfizer Inc 0.76%
USD Deposit 15%
Cash (PKR) 2%
Open-End Asset Allocation Fund 329 106.4208 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 2.00% 2.50% None October 10, 2011 30% MSCI World Index +70% 6-month T-Bills Mon - Fri 04:00 PM In Process AM3+
LAADMF Benchmark 1.28% 1.83% 2.30% 2.72% 3.40% 4.28% 4.28% 6.42%
2.45% 1.17% 1.56% 2.47% 4.70% 7.13% 7.13% 10.63%
*Since Inception
DM Equities 15% T-Bills 68%
LAADMF vs. Benchmark 109 107
Asset Allocation
105
Instruments
Apr-12
Government Securities (T-Bills) Cash (Local Currency PKR) Foreign Currency (USD) Deposit Developed Markets (DM) Equities
69% 1% 24% 6%
May-12 Jun-12 % of Net Assets 68% 68% 3% 2% 21% 15% 8% 15%
103 101 99 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12
Benchmark
LAADMF
MSCI World Index (Composition) Country United States Japan United Kingdom Canada Switzerland
Weight 53% 9% 8% 5% 4%
Sectors Banks Oil & Gas Pharmaceuticals Telecommunication Retail
Disclosures Leverage as on June 30, 2012 Non Performing Assets
10
Weight 10% 8% 7% 5% 5%
Investment Committee Babar Ali Lakhani Iqbal Ali Lakhani A. Aziz H. Ebrahim Muhammad Umair Chauhan Amir Mobin Hamad Aslam, CFA Syed Imran Raza Kazmi Muhammad Qasim
Chairman
Nil. Nil.
Lakson Outlook - June 2012
iShares MSCI World ETF (Developed Markets): Allocations
Type IDWR LN Equity DES and click on Allocations
iShares MSCI World ETF (Developed Markets): Holdings
Type IDWR LN Equity DES and click on Holdings
11
Lakson Outlook - June 2012
Lakson Asset Allocation Emerging Markets Fund Investment Objective The investment objective of the Lakson Asset Allocation Emerging Markets Fund is to provide long-term capital appreciation by investing in a mix of domestic debt and emerging market securities. Performance Review The Lakson Asset Allocation Emerging Markets Fund ("LAAEMF") increased by 1.34% in June '12 compared to the Benchmark (70% 6-month T-Bills + 30% MSCI Emerging Markets Index) return of 1.99%. The LAAEMF has appreciated by 6.23% since its inception compared to a 9.82% increase in the Benchmark. The LAAEMF increased its exposure in Emerging Markets equities to 15% compared to 8% at the start of the month. The LAAEMF aims to gradually increase its exposure in foreign equities using Dollar cost averaging approach. The total international exposure of the LAAEMF is 30% which includes 15% exposure in foreign currency (USD) deposits and 15% exposure in Vanguard MSCI Emerging Markets ETF which tracks the performance of the MSCI Emerging Markets Index. WWF Disclosure As of June 30, 2012 the LAAEMF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 0.39 million. If the same were not made the NAV per unit of the LAAEMF would be higher by PKR 0.1272 and the return of the LAAEMF for FY12 would be higher by 0.13%. For details investors are advised to read the Note 7.1 of the latest Financial Statements (Quarterly Report as of March 31, 2012) of the LAAEMF.
Asset Allocation
Emerging Market Equities (Vanguard MSCI EM ETF) Security % of ETF's Assets China Mobile 1.88% Gazprom OAO 1.64% America Movil SAB de CV 1.40% Taiwan Semiconductor Manufacturing 1.35% China Construction Bank Corp 1.31% Samsung Electornics Co 1.18% Industrial & Commercial Bank of China 1.11% CNOOC Ltd 1.04% Petroleo Brasileiro 0.97% Hon Hai Precision Industry Co 0.97%
USD deposit 15%
Cash (PKR) 2%
EM Equities 15%
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (30.06.2012) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date
Dealing Days Cut-Off Time Fund Rating Asset Manager Rating
Open-End Asset Allocation Fund 328 106.234 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 2.00% 2.50% None October 10, 2011 30% MSCI Emerging Markets Index +70% 6-month T-Bills Mon - Fri 04:00 PM In Process AM3+
Fund Performance
LAAEMF Benchmark
Benchmark
1 Month 2 Month 3 Month 4 Month 5 Month 6 Month CY12 - YTD FY12*
1.34% 1.75% 2.21% 2.56% 3.23% 4.11% 4.11% 6.23%
1.99% -0.12% 0.25% -0.12% 2.30% 6.43% 6.43% 9.82%
*Since Inception T-Bills 68%
LAAEMF vs. Benchmark 111 109 107
Asset Allocation
105
Instruments
Apr-12
Government Securities (T-Bills) Cash (Local Currency PKR) Foreign Currency (USD) Deposit Emerging Markets (EM) Equities
69% 1% 24% 6%
May-12 Jun-12 % of Net Assets 68% 68% 3% 2% 21% 15% 8% 15%
103 101 99 Oct-11
Nov-11
Jan-12
Feb-12
Benchmark
Mar-12
Apr-12
May-12
Jun-12
LAAEMF
MSCI Emerging Markets Index (Composition) Country Brazil South Korea China Taiwan South Africa
Weight 15% 13% 13% 11% 8%
Sectors Banks Oil & Gas Telecommunication Semiconductor Iron/Steel
Disclosures Leverage as on June 30, 2012 Non Performing Assets
12
Weight 16% 12% 9% 5% 5%
Investment Committee Babar Ali Lakhani Iqbal Ali Lakhani A. Aziz H. Ebrahim Muhammad Umair Chauhan Amir Mobin Hamad Aslam, CFA Syed Imran Raza Kazmi Muhammad Qasim
Chairman
Nil. Nil.
Lakson Outlook - June 2012
Vanguard MSCI Emerging Markets ETF: Allocations
Type VWO UP Equity DES and click on Allocations
Vanguard MSCI Emerging Markets ETF: Holdings
Type VWO UP Equity DES and click on Holdings
13
Lakson Outlook - June 2012
Mutual Funds Performance Comparison Position as of July 12, 2012 Income Fund ABL Income Fund Atlas Income Fund Crosby Phoenix Fund Dawood Income Fund Faysal Savings Growth Fund First Habib Income Fund HBL Income Fund IGI Income Fund JS Income Fund Lakson Income Fund MCB Dynamic Cash Fund NAFA Financial Sector Income Fund NAFA Income Fund NAFA Income Opportunity Fund NAFA Saving Plus Fund NIT - Income Fund Pakistan Income Fund PICIC Income Fund UBL Savings Income Fund
Annualized Returns (%) 30 Days 10.59 7.95 7.03 22.25 10.52 9.85 (1.27) 10.64 10.37 9.97 9.85 13.98 4.38 9.81 10.09 6.53 6.22 11.75 10.20
90 Days 9.70 11.78 7.69 (17.51) 10.38 9.40 5.07 10.29 8.37 10.62 8.93 12.01 10.05 11.77 9.78 8.85 8.14 10.70 10.27
180 Days 9.80 10.97 8.75 (3.26) 9.97 9.23 7.46 10.81 10.34 10.44 9.62 12.10 6.97 11.77 10.12 10.39 8.19 10.03 10.17
270 Days 10.02 11.51 9.23 0.42 9.89 9.31 10.79 9.81 10.60 10.37 9.96 N/A (5.56) 1.68 10.55 10.63 8.80 10.24 10.00
365 Days 11.57 6.10 9.72 2.82 11.06 10.25 10.96 11.16 12.96 11.45 10.69 N/A (6.90) (0.74) 10.98 11.95 8.97 11.78 12.00
10.12 9.68 10.15 10.27 10.25 10.56 10.20 10.22 10.34 10.73 10.07 10.72 10.08 10.11 9.89 9.91 10.12 9.91 10.22
9.67 10.26 10.29 9.59 10.26 10.62 10.17 10.25 10.36 10.73 10.34 10.54 10.11 9.85 9.88 10.09 8.90 10.28 10.26
10.08 N/A 10.20 10.10 10.31 10.71 10.15 10.22 10.39 10.77 10.47 10.56 10.19 10.15 9.97 N/A 9.74 10.33 10.31
10.29 N/A 10.26 10.45 10.49 10.71 10.22 10.34 10.56 10.91 10.67 10.68 10.32 10.42 10.18 N/A 10.16 10.45 10.45
11.17 N/A 10.99 11.40 11.26 11.29 10.94 11.14 11.44 11.74 11.53 11.54 11.13 11.21 10.81 N/A 10.98 11.36 11.26
(7.91) (26.96) (16.03) 15.27 7.88 16.17 12.33 10.06 4.91 (2.34)
2.12 3.37 (19.75) 19.37 8.59 17.85 12.78 20.82 6.59 4.04
6.91 23.10 (8.70) 27.27 12.96 17.74 22.14 47.60 6.51 6.73
7.04 (7.84) (2.64) 42.19 12.83 16.72 22.20 38.76 8.02 (13.15)
8.42 (5.13) (0.78) (13.57) 13.43 21.63 24.47 26.24 8.77 (13.34)
Money Market Funds ABL Cash Fund* AKD Cash Fund* Alfalah GHP Cash Fund* Askari Sovereign Cash Fund* Atlas Money Market Fund* BMA Empress Cash Fund Faysal Money Market Fund* First Habib Cash Fund* HBL Money Market Fund* IGI Money Market Fund JS Cash Fund KASB Cash Fund Lakson Money Market Fund* MCB Cash Management Optimizer Fund* NAFA Government Securities Liquid Fund* NAFA Money Market Fund* Pakistan Cash Management Fund* PICIC Cash Fund* UBL Liquidity Plus Fund
Aggressive Income Funds AKD Aggressive Income Fund Alfalah GHP Income Multiplier Fund Askari High Yield Scheme BMA Chundrigar Road Saving Fund Faysal Income & Growth Fund IGI Aggressive Income Fund JS Aggressive Income Fund KASB Income Opportunity Fund Pakistan Income Enhancement Fund United Growth & Income Fund
*These money market funds are providing liability related to Workers Welfare Fund N.A. = Not Available
Source: MUFAP
14
Lakson Outlook - June 2012
Mutual Funds Performance Comparison Position as of July 12, 2012 Equity Funds ABL Stock Fund AKD Opportunity Fund Alfalah GHP Alpha Fund Askari Equity Fund Atlas Stock Market Fund First Habib Stock Fund HBL Stock Fund IGI Stock Fund JS Large Cap Fund Lakson Equity Fund MCB Dynamic Stock Fund NAFA Stock Fund National Investment Unit Trust Pakistan Premier Fund Pakistan Stock Market Fund Pakistan Strategic Allocation PICIC Stock Fund United Stock Advantage Fund
30 Days
Absolute Returns (%) 90 Days 180 Days 270 Days
365 Days
5.16 2.42 3.82 3.32 5.95 3.36 6.05 5.32 3.56 4.27 5.26 5.22 2.99 5.50 5.13 3.95 5.85 6.63
5.50 10.61 (0.83) 2.63 8.93 5.17 2.15 3.50 5.94 3.35 6.86 2.57 3.50 6.61 6.59 5.06 7.36 3.90
33.97 56.12 15.06 N/A 36.05 21.83 23.85 24.45 30.28 23.59 28.74 37.08 20.09 27.49 27.55 25.35 24.62 26.44
24.24 49.13 4.11 N/A 22.05 7.77 10.81 14.79 15.94 11.14 17.50 22.48 8.85 13.92 14.37 14.51 17.50 15.15
30.93 40.05 6.62 N/A 28.16 6.94 14.22 16.11 16.50 12.69 23.00 26.23 11.26 18.28 15.86 18.67 N/A 19.16
(5.62) 4.44 3.41 2.48 2.47
(6.57) 3.33 2.45 2.74 1.97
(0.05) 20.31 18.66 17.27 19.43
(1.87) 10.39 13.06 8.23 12.79
(3.42) 14.80 17.64 10.54 17.91
1.58 2.91 (3.73) 1.33 2.71 0.94 0.79 1.36 0.36 2.66 0.53
1.21 4.26 (4.09) 2.14 5.81 2.32 1.96 2.38 2.16 0.53 0.99
15.55 22.82 4.99 24.98 18.37 3.90 3.51 3.94 14.01 14.83 13.43
7.86 12.18 2.22 10.78 12.12 6.28 5.87 6.33 7.80 11.80 3.10
7.59 14.66 0.89 12.78 6.20 N/A N/A N/A 9.59 16.16 (0.10)
1.13 0.47 0.55
N/A 1.07 1.31
N/A 2.84 2.46
N/A 4.55 4.25
N/A N/A 5.68
Balanced Funds Faysal Balanced Growth Fund HBL Multi Asset Fund NAFA Multi Asset Fund Pakistan Capital Market Fund Unit Trust of Pakistan
Asset Allocation Funds Alfalah GHP Value Fund Askari Asset Allocation Fund Faysal Asset Allocation Fund JS Aggressive Asset Allocation KASB Asset Allocation Fund Lakson Asset Allocation Developed Markets Fund Lakson Asset Allocation Emerging Markets Fund Lakson Asset Allocation Global Commodities Fund MCB Dynamic Allocation Fund NAFA Asset Allocation Fund Pak Oman Advantage Asset Allocation Fund
Capital Protected Funds ABL AMC Capital Protected Fund IGI Capital Protected Fund Pakistan Capital Protected Fund (FIS)
N.A. = Not Available
Source: MUFAP
15
Lakson Outlook - June 2012
Markets Information Equities Total Return in PKR and % YTD-CY12 3-mo
1-yr
5-yr
Total Return in USD and %
Markets
Index
YTD-CY12 3-mo
1-yr
5-yr
World
MSCI All Country World Index
9.56%
-2.30%
0.45%
22.11%
4.21%
-6.36%
-8.69%
-21.93%
Developed
MSCI World Index
9.87%
-1.73%
2.13%
20.62%
4.49%
-5.81%
-7.17%
-22.88%
Emerging
MSCI Emerging Markets Index
7.55%
-6.10%
-10.03% 38.35%
2.29%
-10.00%
-18.22% -11.54%
Europe
MSCI Europe Index
5.01%
-5.18%
-11.26%
-7.10%
-0.12%
-9.11%
-19.34% -40.60%
China
CSI 300
9.31%
3.70%
-9.50%
22.59%
3.97%
-0.60%
-17.74% -21.62%
Dubai
DFM
12.79%
-8.13%
5.29%
-48.49%
7.27%
-11.95%
-4.29%
India
BSE Sensex 30
13.10%
-4.45%
-18.26% 36.20%
7.56%
-8.42%
-25.70% -12.92%
Japan
Nikkei 225
7.96%
-3.21%
1.92%
19.89%
2.68%
-7.23%
-7.36%
Malaysia
FTSE Bursa
9.52%
0.82%
5.89%
100.79%
4.17%
-3.37%
-3.75%
28.38%
Pakistan
KSE 100
21.62%
0.29%
10.45%
0.21%
15.68%
-3.88%
0.39%
-35.93%
Sri Lanka
Colombo All Share
-26.89%
-8.45%
-34.55% 124.47%
UK
FTSE 100
6.23%
-1.13%
US
DJIA
10.84%
US
S&P 500
13.88%
US
NASDAQ 100
20.74%
-0.95%
23.77% 111.53%
Germany
DAX Index
11.78%
-8.52%
-16.41%
CANADA
TSX 300 Composite Index
2.46%
-4.09%
-9.10%
France
CAC - 40
3.95%
-7.53%
Brazil
Sao Paulo SE Bovespa Index
-6.45%
Korea
Korea SE Kospi
7.43%
Taiwan
Taiwan SE Weighted Index
9.95%
-50%
-25%
0%
25%
50%
-67.07%
-23.35%
-30.46%
-12.25%
-40.51%
43.52%
0.86%
3.11%
1.03%
-5.24%
-8.32%
-34.07%
1.71%
14.14%
50.24%
5.42%
-2.51%
3.75%
-3.94%
0.90%
13.47%
41.72%
8.31%
-3.29%
3.14%
-9.39%
14.83%
-5.06%
12.50%
35.24%
17.24%
6.31%
-12.32%
-24.02% -25.04%
36.68%
-2.55%
-8.07%
-17.38% -12.62%
-22.86% -22.76%
-1.13%
-11.36%
-29.88% -50.61%
-20.08%
-25.45% 50.05%
-11.02%
-23.40%
-32.24%
-4.99%
-9.49%
34.15%
2.17%
-8.93%
-17.73% -14.23%
-5.22%
-10.80% 41.34%
4.58%
-9.16%
-18.92%
-9.63%
-4.07%
KSE Sectors Automobile and Parts
18.89%
6.91%
13.69% -45.63%
13.07%
2.47%
3.34%
-65.24%
Banks
27.95%
-2.78%
13.06% -63.22%
21.69%
-6.82%
2.77%
-76.49%
Chemicals
10.03%
-5.09%
-2.10%
28.29%
4.65%
-9.03%
-11.02%
-17.98%
Construction & Materials
73.63%
5.73%
87.35% -39.40%
65.14%
1.34%
70.30%
-61.26%
Electricity
20.21%
5.09%
15.11% -10.66%
14.34%
0.73%
4.63%
-42.88%
Fixed Line Tele.
33.68%
7.92%
-3.02%
-76.36%
27.14%
3.44%
-11.85%
-84.88%
8.07%
Food Producers
30.15%
8.64%
140.54%
23.79%
4.13%
-1.77%
53.79%
Non Life Insurance
26.78%
-3.26%
12.01% -73.43%
20.58%
-7.28%
1.81%
-83.01%
7.06%
-2.33%
2.39%
10.69%
1.82%
-6.38%
-6.93%
-29.23%
31.08%
9.03%
12.68% -20.48%
24.67%
4.50%
2.42%
-49.16%
Oil and Gas Personal Goods
YTD 3-mo
Fixed Income Current Interbank Rates on Interbank Rates China
SHIBOR
Historic 6-month Interbank Rates
1M
3M
6M
12M
YTD-CY12 3-mo
4.48%
4.08%
4.42%
4.75%
5.05%
1-yr
2-yr
4.80%
5.20%
4.39% 2.02%
Dubai
UAE IBOR
0.98%
1.53%
1.71%
1.97%
1.71%
1.71%
1.70%
India
MIBOR
9.30%
9.41%
N.A.
N.A.
N.A
N.A
N.A
N.A
Japan
TIBOR
0.18%
0.34%
0.44%
0.46%
0.44%
0.44%
0.44%
0.45%
Malaysia
KLIBOR
3.08%
3.19%
3.24%
3.35%
3.25%
3.24%
3.29%
3.18%
Pakistan
KIBOR
12.14%
11.99%
12.06% 12.40%
11.96%
12.01%
12.42%
12.94%
Sri Lanka
SLIBOR
11.48%
12.16%
13.20%
13.83%
11.43%
12.43%
10.04%
9.43%
UK
LIBOR
0.62%
0.90%
1.18%
1.68%
1.34%
1.30%
1.28%
1.17%
US
SIBOR
0.25%
0.46%
0.73%
1.07%
0.75%
0.73%
0.66%
0.57%
Current Market Yields on Government Securities
13.00%
12.00% 11.50% 11.00% Interbank June-12
10.50% 1W
Historic 12-Month Paper Rates
3M
12M
5Y
10Y
China
2.03%
2.29%
2.84%
3.34%
2.70%
India
8.27%
8.07%
8.08%
8.16%
8.26%
YTD-CY12 3-mo
1M
3M
Govt. Sec. June-12 6M
1Y
2Y
12M Yields of Government Securities
1-yr
2-yr
2.53%
2.99%
2.79%
India
8.16%
8.34%
7.77%
Japan Malaysia
China
Japan
0.10%
0.10%
0.21%
0.82%
0.10%
0.10%
0.11%
0.14%
Malaysia
3.04%
2.96%
3.21%
3.52%
2.95%
2.96%
2.95%
2.91%
Pakistan
Pakistan
11.92%
11.97%
12.99%
13.28%
11.92%
11.96%
12.33%
12.87%
Sri Lanka
Sri Lanka
10.73%
12.35%
13.69%
13.94%
11.12%
12.29%
9.36%
8.50%
UK
UK
0.00%
0.30%
0.75%
1.72%
0.38%
0.35%
0.43%
0.56%
US
US
0.09%
0.20%
0.67%
1.59%
0.16%
0.18%
0.13%
0.18%
16
Govt. Securities vs. KIBOR
12.50%
0%
3%
6%
9%
Lakson Outlook - June 2012
12%
Markets Information Commodities Total Return Commodity
Unit
YTD-CY12 3-mo
DB Commodity Index
USD Excess Return
-3.55%
-9.87%
Current Prices
1-yr
5-yr
-10.83%
2.80%
120
S&P Global Commodity Index
USD Total Return
-7.23%
-12.38% -10.74% -24.46%
Dow Jones UBS Commodity Index
USD Total Return
-3.70%
-4.55%
Coal
USD/Tonne
-21.25%
-17.38%
-27.12%
N.A
88.40
Copper
USc/lbs
1.57%
-8.76%
-18.31%
1.06%
349.00
Cotton
USc/lbs
-21.39%
-22.84% -54.84%
23.35%
72.16
Gold
USD/t oz.
2.39%
-3.90%
6.75%
146.46%
1,604.20
Palm Oil
USD/Tonne
-5.44%
-16.61%
-7.92%
30.25%
948.10
Sugar
USc/lbs
-6.39%
-11.74%
-23.10% 140.46%
21.81
Wheat
USD/Bushel (60Ibs) 13.21%
11.84%
26.38%
26.98%
7.39
WTI
USD/bbl
-14.03%
-17.53%
-10.96%
20.20%
84.96
Brent Crude
USD/bbl
-8.92%
-20.41% -13.05%
36.96%
97.80
Heating Oil
Usc/Gallon
-8.14%
-14.91%
N.A
269.60
-14.32% -16.97%
-8.07%
DBCI
SPGSCI
DJUBS
508.45 4,532.00
110
272.36
RBOB Gasoline
USD/Gallon
1.52%
-19.55% -10.04%
18.87%
2.73
Natural Gas
USD/MMBTU
-5.52%
32.83%
-35.44% -58.31%
2.82
Silver
Usc/Ozs
-1.06%
-15.10% -20.77% 123.27%
27.58
100
90 80 70 Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Apr-12
Jun-12
Currencies Change Versus PKR in %
Current Exchange Rates
YTD-CY12
3-mo
1-yr
5-yr
2.41%
4.23%
63.90%
CAD - PKR
93.03
Canadian Dollar
CAD
5.65%
Euro
EUR
2.67%
-1.04%
-3.96%
46.23%
EUR - PKR
119.74
Indian Rupee
INR
0.28%
-4.60%
-11.62%
14.48%
INR - PKR
1.70
Japanese Yen
JPY
1.30%
8.29%
11.03%
111.59%
JPY - PKR
1.18
Pound Sterling
GBP
6.25%
2.31%
7.62%
22.28%
GBP - PKR
148.53
Singaporian Dollar
SGD
7.72%
3.67%
6.80%
89.18%
SGD - PKR
74.75
US Dollar
USD
5.14%
4.33%
10.02%
56.41%
USD - PKR
94.58
17
160
GBP
EUR
CAD
USD
140 120 100 80 60 Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Lakson Outlook - June 2012
Notes
18
Lakson Outlook - June 2012
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. Rao Ashraf - Branch Manager Suit No.209, Eden Center 43-Jail Road, Lahore. Tel: 042.759.0500/756.7390 Fax: 042.756.7881 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 - June 2012
1954
DECADES OF SEASONED INVESTMENT
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
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