June 2015
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
Rated AM2- by PACRA
Business Principles
Our investors' interests always come first. We believe that if we serve our clients well, our own success will follow. Integrity and honesty are at the heart of our business. We expect our people to maintain high ethical standards. Our commitment to our clients, integrity, professional excellence, entrepreneurial spirit and teamwork will set us apart. Our firm shares bonuses with all employees - not just top management, but also those who perform standard administrative and clerical duties. Our goal is to provide superior returns to our shareholders. Profitability is critical to achieving superior returns, building our capital, and attracting and keeping the best people. Our business is highly competitive and we will aggressively seek to expand our client relationships. However, we are always fair competitors and never denigrate other firms.
Table of contents Economic & Markets Review
04 - 05
Lakson Money Market Fund
06
Lakson Income Fund
07
Lakson Equity Fund
08
Lakson Asset Allocation Global Commodities Fund
09
Lakson Asset Allocation Developed Markets Fund
10 - 11
Lakson Asset Allocation Emerging Markets Fund
12
Funds Return History
13
Mutual Funds Performance Comparison
14 - 16
Markets Information
17 - 18
03
Lakson Outlook - June 2015
Economic & Markets Review - Pakistan Economic Review
Pakistan's CPI clocked in at an 11-year low of 4.6% versus the target of 8% set by the government during FY15. Pakistan is a major oil importer and a sharp decline in global crude oil prices helped to generate savings in excess of USD 3.0 bn. The 32% decline in international oil prices had a direct and indirect impact on the whole value chain. Domestic petrol prices were decreased by 28% while food and core inflation dropped to 2.7% and 6.5% respectively versus 8.6% and 8.3% in FY14. In June, the government presented its annual budget which focused on infrastructure development and minimizing tax exemptions in order to kick start growth and improve the fiscal deficit. Moody's upgraded Pakistan's sovereign credit rating to B3 with a stable outlook. Key factors contributing to this rating upgrade included the strengthening external position and progress in structural reforms under the IMF program. The higher credit rating should help to lower the government's borrowing costs and would also provide wider visibility to the country's equity and debt markets globally. The country's liquidity position has improved due to the implementation of the privatization program, re-entry into global debt markets, decline in commodity prices and inflows from the IMF and other multilateral creditors like the ADB and WB. Pakistan's foreign exchange reserves reached an all-time high of USD 18.2 bn in June up from USD 14.1 bn last year. With new found stability in public spending and inflation, the prospects of higher economic growth look positive especially if the proposed infrastructure development and Pak China Economic corridor materialize. Equity Market Review The KSE 100 recovered some of its losses to gain 4.06% in June and close Fiscal Year 2015 as the 3rd best performing Asian Pacific market. In contrast the MSCI Frontier Markets Index continued to be weighed down by softness in commodity prices and declined by 0.33% during June. Though market activity historically slows in the lead up to the budget and Ramzan, the average volume of the KSE 100 almost doubled from last month to 203 million. On the other hand the MSCI Emerging Markets index was sluggish with volumes declining by 40% to 288 million. The budget proposed by the government was a major impetus for growth in sectors related to infrastructure development whereas the imposition of a super tax and change in tax treatment for income was unfavorable for banks. However, positive news such as the successful completion of the IMF review, upgrade of Pakistan's credit rating by Moody's, CPI number of 3.16% and record level FX reserves gave a much needed boost to market sentiment. Sector-wise analysis of the KSE30 shows that electronic goods was the best performing sector (up 21%) owing to increased sales of air conditioners and refrigerators. Foods was the next best performing sector (up 15%) followed by cements (up 12%) whereas electricity, auto and telecom were the worst performing sectors with returns of -3%, -2% and -2% respectively. Going forward, the undemanding valuations of the KSE (trading at slightly over 9.0x forward P/E) combined with positive macroeconomic data are expected to further re-rate market multiples and push the market towards the 40,000 level. Fixed Income Review There were 2 Treasury bill auctions in June. The first auction saw a total realized amount of PKR 74.2 bn whereas the second auction saw a total realized amount of PKR 93.4 bn. There was only one PIB auction in June through which the government raised a total of PKR 52.4 bn. Three-year PIBs attracted the most interest with bids totaling PKR 46.1 bn followed by 5-year bonds with bids of PKR 15.7 bn and 10-year bonds with bids worth PKR 9.9 bn. Keeping in line with the past months, there was no interest in 20-year PIBs. During June, the SBP continued to inject liquidity into the system at 6.50% through its open market operations. The current outstanding OMO injection amount is approximately PKR 650 billion. An increase in the deposit base or a decline in the banks' investment portfolios would help reduce this liquidity shortage. Both shorter and longer tenor market yields increased significantly as yearend pressure, adequate supply and concerns over the sustainability of the low interest rate environment led to higher bids and secondary market selling. The current spread on the 10 year PIB is now 3.0% which is higher than what it was at the peak of the economic crisis in 2008. With inflation expected to remain benign and FX reserves on the rise a relief rally in the bond market is expected.
Yield Curve
12.0% 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 1W
2M
6M
2Y
29-May-15
5Y
8Y
15Y
30-Jun-15
USD/PKR vs. Forex Reserves 103.0
19.0
Forex Res. (USD bn.) - RHS USD/PKR
102.0
18.0
101.0
17.0
100.0
16.0 1-Jun
8-Jun
15-Jun
22-Jun
29-Jun
Market Rates 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4-May
13-May 6M KIBOR
22-May O/N Repo Rate
Pakistan's CPI clocked in at an 11-year low of 4.6%
DISCLAIMER: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved.
04
Lakson Outlook - June 2015
Economic & Markets Review - International Developed Markets Review June was fraught with panic as the Grexit crisis and its potentially destabilizing impact on the Euro sent jitters through developed equity markets. These jitters were reflected in the indices with the German DAX declining by 4.1% to close at 10,945. The Spanish index IBEX also dropped by 4% and closed at 10,770 points. FTSE declined by a staggering 6.6% to close at 6,521. Positive housing and consumer spending figures indicated an uptick in the US economy which suggests the Fed may look at an interest rate hike in the second half of this year. The spillover from European and Asian markets and fears over monetary tightening led to a 2.1% decline in the S&P 500 which closed at 2,063. The Dow Industrial followed suit and declined by 2.2% to close at 17,619 points. Emerging Markets Review In June, China was mired in its own crisis with fears of a valuation bubble. Moreover, the MSCI held off from including China's mainland stocks in its benchmark indices and stated it would continue to work with regulators on issues such as investor quotas and ease of access. This was a major blow to the efforts of Chinese authorities who were looking to upgrade the status of the mainland markets globally. As a result the Shanghai Composite Index declined by 7.25% in June.
Performance of Equities & Commodities
140%
MSCI World Index MSCI EM Index DB Commodity Index
120%
100%
80%
60% May-14
MSCI SENSEX saw a dip of 0.17% as the effect of reduction in oil prices has started to hurt the economy. However, a better-than-expected monsoon season is expected to give a much needed boost to the economy mitigating fears of food shortages that could fuel inflation.
Aug-14
24
In Latin America, BOVESPA went up 0.6% on news that President Dilma Rousseff had vetoed a proposed increase to social security spending, demonstrating a commitment to getting the country's public finances back on track.
20
Commodities Review Greece and China also weighed on commodities as a stronger dollar and a move toward safer havens caused turmoil in commodities particularly in oil and metals.
12
In the month of June, WTI went down by 1.86% to close at USD 59.47/bbl and Brent was down 3% to close at USD 63.59/bbl. Oil investors are closely following the negotiations in Vienna between Iran and world powers on the disputed nuclear program. If an agreement is reached then it could result in lifting of sanctions prompting Iran to increase crude oil exports and increase supplies in an already oversupplied market.
4
Nov-14
Feb-15
Valuations of International Markets
16
8
-
DM
US
UK
Japan Canada EM
Brazil Russia India China
P/E Multiple
Gold struggled to make gains in June as well and continued to stay below the psychological barrier of USD1,200 per ounce amid speculations over the Greece crisis and Federal Reserve's timing to raise interest rate. Coal saw a massive decline in the month and dropped from USD 63.05 MT to USD 60.3 MT, a decline of 4.36%.
June was fraught with panic as the Grexit crisis and its potentially destabilizing impact on the Euro sent jitters through developed equity markets.
DISCLAIMER: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved.
05
May-15
Lakson Outlook - June 2015
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 8.94% against the benchmark return of 6.03% in June 2015. The Fund outpeformed the benchmark by 2.91%. On a CY15TD and FY15 basis the Fund has outperformed the benchmark by 71bps and 12bps respectively. Asset allocation changed with higher exposure to T bills (64%) and cash (35%) as liquidity was maintained for the year end. With the increase in T bill holdings portfolio WAM increased from 44 days to 58 days. As secondary market yields for T bills have risen the Fund will aim to increase WAM and T bill allocation in order to benefit from the ease in pressure post year end. WWF Disclosure As of June 30th, 2015 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 1.26. If the LMMF would not have made the WWF provisions during FY15, the year to date annualized return of the LMMF for FY15 would be higher by 0.06%. For details investors are advised to read the Note 8.1 of the latest Financial Statements (3rd Quarterly Report as of March 31, 2015) of the LMMF.
Asset Allocation
Credit Split
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (30.06.2015) Pricing Mechanism Trustee Auditor Management Fee
Open-End Money Market Fund 4,209 100.2116 Previous Day CDC Pakistan Limited BDO Ebrahim & Co. 10% of Gross Earnings subject to a minimum of 1.00% and maximum of 1.25% 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 (5.3.2014) Risk Profile Low Risk Asset Manager Rating AM2- by PACRA (22.4.2015)
Performance AA 35%
Cash 35%
Govt Sec 65%
T-Bills 65%
Asset Allocation Instruments Placements with Banks & DFIs PIBs T Bills Cash Others including receivables
Apr-15 May-15 Jun-15 % of Total Assets 27% 9% 0% 0% 0% 0% 71% 38% 64% 1% 53% 35% 0% 0% 0%
WAM* Days 0 0 87 0
LMMF 8.57% 9.31% 8.20% 7.99% 8.39% 8.57% 8.39%
Benchmark 8.45% 6.20% 6.29% 6.88% 7.66% 8.45% 7.66%
Simple Annualized FY15 - YTD Jun-15 2 Months 3 Months 6 Months 12 Months CY15 - YTD 3 Years 5 Years Since Inception
LMMF 8.57% 8.94% 7.93% 7.76% 8.22% 8.57% 8.22% 9.14% 11.65% 12.25%
Benchmark 8.45% 6.03% 6.14% 6.64% 7.51% 8.45% 7.51% 9.47% 11.95% 12.51%
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 124 121
* Weighted Average Maturity
118 115
Non Compliant Investments Name of Non - Compliant Type of Investment Instrument
Pak Brunei Investment Co. Pak Oman Investment Co.
Morningstar FY15 - YTD Jun-15 2 Months 3 Months 6 Months 12 Months CY15 - YTD
COI COI
112
Value of Total Value of % of Net % of Total Investment Provisioning Investment Assets Assets before Held after Provisioning Provisioning 600,000,000 600,000,000
-
Disclosures Leverage as on June 30th, 2015 Non Performing Assets WAM of Portfolio
Nil. Nil. 58 Days
600,000,000 10.56% 600,000,000 10.56%
10.39% 10.39%
109 106 103 100 Jun-12
Sep-12 Dec-12 Mar-13
Jun-13
Benchmark
Sep-13 Dec-13 Mar-14
Jun-14
Sep-14
LMMF
Investment Committee Babar Ali Lakhani Mustafa O. Pasha, CFA Syed Saifullah Kazmi Farhan Bashir 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 - June 2015
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.
Fund Facts
Performance Review During June 2015 the LIF generated an annualized return of 10.13% against the benchmark return of -0.59%. The LIF outpeformed the benchmark by 10.72%. On a FY15 and CYTD basis the LIF has outperformed the average income fund by 1.53% and 3.42% respectively. PIB allocation was increased as year end pressure provided an attractive opportunity to pick up bonds at abnormal spreads. And in order to protect the Fund during a volatile period, cash exposure was maintained at a high level of 38%. Consequently portfolio WAM was recorded at 1,361 days. Bonds are expected to rally in the first quarter of the new fiscal year and the Fund will look to rationalize long term exposure at that time.
Fund Type Category Net Assets (PKR Mil.) NAV (30.06.2015) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark
WWF Disclosure As of June 30th, 2015 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 0.46. If the LIF would not have made the WWF provisions during FY15, the year to date annualized return of the LIF for FY15 would be higher by 0.06%. For details investors are advised to read the Note 8.1 of the latest Financial Statements (3rd Quarterly Report as of March 31, 2015) of the LIF.
Dealing Days Cut-Off Time Fund Rating Risk Profile Asset Manager Rating
Asset Allocation
Performance
Credit Split
Other 2%
Unrated 0.27% A+ 37%
Cash 38%
Govt 52%
PIB 48% Sukuk 2% AA6% AA 3%
TFCs 7% T Bill 4%
TFCs/Sukuk Portfolio Name of the Issuer Bank Al Habib Limited IV Bank Al Falah Limited V PMCL VII Askari Bank Limited IV K-ELECTRIC AZM SUKUK III
Issue Date 30-Jun-11 20-Feb-13 18-Apr-12 23-Dec-11 24-Feb-14
Rating % of Total Assets AA 0.87% AA2.50% AA1.01% AA2.18% AA 1.62%
Placements with Banks/DFIs PIB T Bill TFC Sukuk MTS Cash Others including receivables
Apr-15
May-15
0% 54% 27% 6% 2% 0% 9% 2%
% of Total Assets 0% 39% 22% 6% 1% 0% 31% 2%
* Weighted Average Maturity
Disclosures Leverage as on June 30th, 2015 Non Performing Assets WAM of Portfolio
Morningstar FY15 - YTD June-15 2 Months 3 Months 6 Months 12 Months CY15 - YTD
LIF 14.17% 10.61% 6.32% 11.97% 14.83% 14.17% 14.83%
Benchmark 12.64% -0.18% 2.54% 7.65% 11.33% 12.64% 11.33%
Simple annualized FY15 - YTD June-15 2 Months 3 Months 6 Months 12 Months CY15 - YTD 3 Years 5 Years Since Inception
LIF 14.17% 10.13% 6.16% 11.46% 14.31% 14.17% 14.31% 11.71% 13.62% 14.24%
Benchmark 12.64% -0.59% 2.36% 7.28% 10.89% 12.64% 10.89% 11.06% 12.14% 12.09%
LIF vs. Benchmark 124 121 118 115
Asset Allocation Instruments
Open-End Income Fund 2,568 100.8777 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 Mon - Fri 4:00 PM 'A+' by PACRA (5.3.2014) Medium Risk AM2- by PACRA (22.4.2015)
Nil. Nil. 1,361 Days
Jun-15 0% 48% 4% 7% 2% 0% 38% 2%
WAM* Days 0 2482 191 1907 1335 0 1
112 109 106 103 100 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Benchmark
LIF
Investment Committee Babar Ali Lakhani Mustafa O. Pasha, CFA Syed Saifullah Kazmi Farhan Bashir 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 - June 2015
Lakson Equity Fund
MUFAPs Recommended Format
Investment Objective The investment objective of the Lakson Equity Fund is to provide long term capital appreciation by investing mainly in equity and related listed securities. Investments will be made in companies of substance, financial strength and demonstrably superior management skills with some exposure given to smaller capitalized value stocks. Performance Review LEF closed FY15 on a high note, generating a MTD return of 4.55% (BM: 2.84%) and a whopping YTD return of 23.93% (BM: 5.67%). The significant out performance was attributed to increasing exposure to its highest level of 94% vs 80% last month. The portfolio was kept liquid to avoid any adverse market movement due to budget announcements. Once budget implications were quantified, aggressive exposure was built, focusing on Construction and Related products and assorted sectors, whilst trimming was seen in Chemicals, Banks, Oil and Electricity. WWF Disclosure As of June 30th, 2015 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 0.65. If the LEF would not have made the WWF provisions during FY15, the year to date return of the LEF for FY15 would be higher by 0.47%. For details investors are advised to read the Note 8.1 of the latest Financial Statements (3rd Quarterly Report as of March 31, 2015) of the LEF.
Top 10 Holdings 8.88% 6.78% 6.48% 6.09% 5.08% 5.08% 4.62% 3.97% 3.66% 3.63%
May-15
Jun-15
17.18% 17.84% 19.96% 5.50% 10.32% 9.29%
14.79% 27.24% 18.87% 4.57% 9.60% 19.19%
Cash 6%
Performance
LEF
KSE-30
23.93% 4.55% 27.04% 43.82% 2.40% 23.93% 2.40% 129.31% 202.67% 201.10%
5.67% 2.84% -0.46% 17.43% 3.86% 5.67% 3.86% 80.95% 125.52% 125.61%
Equity 94%
Sectorwise Exposure Chemicals
Others
Commercial Banks
Const. & Mat.
Electricity
200 150
Jun-15 94% 0% 6% 0%
100
LEF
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
1M Return 4.1% -0.2% -2.3% 4.2% -2.2% -2.1%
P/E 10.4 22.5 17.1 13.5 15.3 18.3
Div. Yield 5.1% 1.4% 3.2% 5.3% 2.4% 2.0%
KSE-100
Jun-15
Apr-15
May-15
Mar-15
Jan-15
Feb-15
Dec-14
Oct-14
0
Nov-14
50 Aug-14
May-15 80% 3% 16% 0%
Sep-14
Apr-15 83% 4% 11% 2%
Jul-14
Equities Government Securities (T-Bills) Cash & Equivalents Others
LEF vs. Benchmark 300 250
Oil & Gas
Asset Allocation (% of Total Assets)
FY15 - YTD June-15 2 Months 3 Months 6 Months 12 Months CY15 - YTD 3 YEAR 5 YEAR SINCE INCEPTION
Jun-14
Chemicals Const. & Mat. Oil & Gas Electricity Commercial Banks Others
Open-End Equity Fund 3,178 104.3209 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 (22.4.2015)
Asset Allocation
Lucky Cement Limited Engro Chemicals Limited Engro Fertilizer Limited Pak Petroleum Limited Pak Oilfields Limited Cherat Cement Limited Oil & Gas Development Co Kohat Cement Limited Pioneer Cement Limited United Bank Limited
Sectorwise Exposure
Fund Facts
Fund Type Category Net Assets (PKR Mil.) NAV (30.06.2015) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark Dealing Days Cut-Off Time Risk Profile Asset Manager Rating
KSE-30
Investment Committee Babar Ali Lakhani Mustafa O. Pasha, CFA Syed Saifullah Kazmi Farhan Bashir Maryam Hidayatallah
Chairman
Disclosures Leverage as on June 30, 2015 Non Performing Assets
Nil. Nil.
DISCLAIMER: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved.
08
Lakson Outlook - June 2015
Lakson Asset Allocation Global Commodities Fund
MUFAPs Recommended Format
Investment Objective The investment objective of the Lakson Asset Allocation Global Commodities Fund is to provide longterm capital appreciation by investing in a mix of domestic debt and commodities. Performance Review During the month of June 2015 the Lakson Asset Allocation Global Commodities Fund generated an absolute return of -0.60% against the benchmark return of 0.68%. The Fund outperformed the benchmark by 988 bps over FY15. Going forward, commodities exposure will be avoided until a definitive change in the demand/supply dynamic materializes. WWF Disclosure As of June 30th, 2015 the LAAGCF 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 LAAGCF would be higher by PKR 0.68. If the LAAGCF would not have made the WWF provisions during FY15, the year to date return of the LAAGCF for FY15 would be higher by 0.18%. For details investors are advised to read the Note 8.1 of the latest Financial Statements (3rd Quarterly Report as of March 31, 2015) of the LAAGCF.
Global Commodities (DB Balanced Commodity ETF) Commodity Aluminium Brent Crude Copper - Grade A Corn Gold Heating Oil Light Crude Natural Gas RBOB Gasoline Silver Soybeans Sugar #11 Wheat Wheat (Kansas Wheat) Wheat-Mineapolis Wht Sectorwise Exposure as of Energy Agriculture Base Metals Precious Metals
Weight as of Jun-15 5.66 6.76 5.96 8.89 15.63 6.93 5.87 2.88 7.31 3.82 8.78 6.35 3.21 2.91 3.04
Asset Allocation Cash 19% T bills 46% PIBs 6% PIBs 32%
Sectorwise Exposure
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (30.06.2015) Pricing Mechanism Trustee Auditor
Open-End Asset Allocation Fund 186 103.9714 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 LAAGCF is calculated Benchmark through a 30:70 combination of DBLC - OY Balanced Index and 6month T-Bills. Dealing Days Mon - Fri Cut-Off Time 04:00 PM Risk Profile Medium Risk Asset Manager Rating AM2- by PACRA (22.4.2015)
Fund Performance FY15-YTD June-15 2 Month 3 Month 6 Month 12 Months CY14-YTD 3 Years 5 Years Since Inception
Benchmark*
LAAGCF 8.86% -0.60% -0.37% 0.81% 4.19% 8.86% 9.67% 17.39% NA 24.25%
-1.02% 0.68% 0.41% 1.66% 1.84% -1.02% 1.05% 11.72% NA 19.84%
* The new Benchmark is effective from September 10, 2013.
LAAGCF vs. Benchmark
Precious Metals 20.03%
Jun-15 29.58% 29.55% 20.84% 20.03%
Energy 29.58%
121 119 117 115
Base Metals 20.84%
113 Agriculture 29.55%
111 109 107 105 103
Asset Allocation
T bills PIBs Global Commodities Foreign Currency Deposit (USD) Placements with Banks (TDRs) Cash
101
Disclosures Leverage as on June 30, 2015 Non Performing Assets
Benchmark
Jun-15
Apr-15
Feb-15
Oct-14
Dec-14
Jun-14
Aug-14
Apr-14
Feb-14
Oct-13
Dec-13
Jun-13
Aug-13
Apr-13
Feb-13
Oct-12
Dec-12
99
Jun-12
Apr-15 May-15 Jun-15 % of Total Assets 47% 47% 46% 31% 31% 32% 0% 0% 0% 0% 0% 0% 0% 0% 0% 22% 22% 19%
Aug-12
Instruments
LAAGCF
Investment Committee Babar Ali Lakhani Mustafa O. Pasha, CFA Syed Saifullah Kazmi Farhan Bashir 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.
09
Lakson Outlook - June 2015
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 June 2015 the Lakson Asset Allocation Developed Markets Fund generated an absolute return of -0.44% against the benchmark return of -0.70%. The Fund outperformed the benchmark by 242 bps over FY15. Going forward, the Fund will look to rebuild exposure in US equities as they provide the most favorable risk/return profile amongst Developed Market indices. WWF Disclosure As of June 30th, 2015 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 0.95. If the LAADMF would not have made the WWF provisions during FY15, the year to date return of the LAADMF for FY15 would be higher by 0.03%. For details investors are advised to read the Note 8.1 of the latest Financial Statements (3rd Quarterly Report as of March 31, 2015) of the LAADMF.
Developed Markets Equities Jun-15 % of ETF's Assets Apple Inc 4.05% Microsoft Corp 2.05% Exxon Mobil Corp 1.91% Johnson & Johnson 1.49% General Electric Co 1.47% Wells Fargo 1.40% Berkshire Hathaway Inc 1.39% JP Morgan Chase 1.31% Pfizer Inc 1.14% Procter & Gamble Co/The1.13% Vanguard S&P 500
Asset Allocation
PIBs 43% Cash 55%
FY15-YTD June-15 2 Months 3 Months 6 Months 12 Months CY14-YTD 3 Years 5 Years Since Inception
LAADMF Benchmark 7.76% -0.44% 0.17% 1.57% 4.60% 7.76% 9.90% 30.6% NA 38.96%
5.34% -0.70% -0.31% 0.68% 2.85% 5.34% 7.34% 33.88% NA 48.15%
Disclosures
Benchmark
May-15
Jan-15
Mar-15
Nov-14
Jun-14
Aug-14
Apr-14
Feb-14
Weight 97.39% 1.22% 0.45% 0.40% 0.20%
Jul-13 Oct-13
Sectors United States Ireland United Kingdom Switzerland Singapore
Dec-13
Weight 96.01% 1.18% 1.03% 0.68% 0.65%
May-13
Vanguard S&P 500
QQQ ETF (As of Jun-15)
Jan-13
T-Bills PIBs Developed Markets (DM) Equities Placements with Banks (TDRs) Cash
Mar-13
Apr-15 May-15 Jun-15 % of Total Assets 46% 26% 0% 23% 25% 43% 29% 32% 0% 0% 0% 0% 2% 17% 55%
Jun-12
139 137 135 133 131 129 127 125 123 121 119 117 115 113 111 109 107 105 103 101 99
Nov-12
LAADMF vs. Benchmark
Instruments
Leverage as on June 30, 2015 Non Performing Assets
Open-End Asset Allocation Fund 321 114.9738 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 LAAGCF is calculated Benchmark through a 30:70 combination of DBLC - OY Balanced Index and 6month T-Bills. Dealing Days Mon - Fri Cut-Off Time 04:00 PM Risk Profile Medium Risk Asset Manager Rating AM2- by PACRA (22.4.2015)
Fund Performance
Asset Allocation
Country United States United Kingdom China Singapore Netherlands
Fund Type Category Net Assets (PKR Mil.) NAV (30.06.2015) Pricing Mechanism Trustee Auditor
Sep-12
% of ETF's Assets Apple Inc 14.26% Microsoft Corp 7.06% Amazon 4.01% Facebook 3.86% Google Inc.-Class C 3.54% Gilead Sciences 3.33% Google Inc.-Class A 3.12% Intel Corp 2.79% Cisco Systems 2.74% Comcast Corp 2.61%
QQQ ETF
Fund Facts
LAADMF
Investment Committee Babar Ali Lakhani Mustafa O. Pasha, CFA Syed Saifullah Kazmi Farhan Bashir 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.
10
Lakson Outlook - June 2015
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 - June 2015
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 June 2015 the Lakson Asset Allocation Emerging Markets Fund generated an absolute return of -0.40% against the benchmark return of -0.70%. The Fund outperformed the benchmark by 160 bps over FY15. Going forward, the Fund will avoid equity exposure in Emerging Market indices until the risk/return profile of such an investment becomes favorable. WWF Disclosure As of June 30th, 2015 the LAAEMF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 1.0 million. If the same were not made the NAV per unit of the LAAEMF would be higher by PKR 1.02. If the LAAEMF would not have made the WWF provisions during FY15, the year to date return of the LAAEMF for FY15 would be higher by 0.04%. For details investors are advised to read the Note 8.1 of the latest Financial Statements (3rd Quarterly Report as of March 31, 2015) of the LAAEMF.
3.10% PIBs 23%
Fund Performance Cash 75%
Asset Allocation
Disclosures Leverage as on June 30, 2015 Non Performing Assets
3.36% -0.70% -1.55% 0.83% 2.90% 3.36% 5.61% 21.57% NA 33.55%
Benchmark
May-15
Jan-15
Mar-15
Oct-14
Dec-14
Jun-14
Aug-14
Weight 15.97% 8.40% 7.50% 7.30% 5.35%
Jun-13
Sectors Banks Semiconductors Telecommunications Oil & Gas Diversified Finan Serv
Aug-13
Weight 18.68% 14.29% 12.88% 8.04% 7.71%
Apr-13
Country China South Korea Taiwan India South Africa
Feb-13
EEM Composition (As of Jun-15)
Oct-12
127 125 123 121 119 117 115 113 111 109 107 105 103 101 99
Jun-12
T-Bills PIBs Emerging Markets (EM) Equities Placements with Banks (TDRs) Cash
4.96% -0.40% -0.16% 0.74% 2.93% 4.96% 5.91% 17.77% NA 25.11%
LAAEMF vs. Benchmark
Apr-15 May-15 Jun-15 % of Total Assets 42% 38% 0% 24% 24% 23% 0% 0% 0% 0% 0% 0% 34% 39% 75%
Aug-12
Instruments
LAAEMF Benchmark
FY15-YTD June-15 2 Month 3 Month 6 Month 12 Months CY14-YTD 3 Years 5 Years Since Inception
Apr-14
2.87% 2.50% 1.96% 1.91% 1.50% 1.50% 1.27% 1.06% 0.87%
Dec-12
Samsung Electronics Taiwan Semiconductor Manufacturing Co Ltd Tencent Holdings China Mobile China Construction Bank Naspers Ltd Industrial and Comm. Bank of China Bank of China Hon Hai Precision Industry America Movil SAB de CV
Asset Allocation
Oct-13
% of Assets
Open-End Asset Allocation Fund 102 109.4964 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 (22.4.2015)
Feb-14
As of Jun-15
Security
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (30.06.2015) Pricing Mechanism Trustee Auditor
Dec-13
Emerging Market Equities
MUFAPs Recommended Format
LAAEMF
Investment Committee Babar Ali Lakhani Mustafa O. Pasha, CFA Syed Saifullah Kazmi Farhan Bashir 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.
12
Lakson Outlook - June 2015
Funds Return History The periodic returns for the funds have been presented below as per SECP's SCD Circular No. 16 dated July 03, 2014. The returns presented below are: Yearly returns for the last five fiscal years and Absolute returns for every fiscal year since inception The returns have been annualized for money market and income schemes where the performance evaluation is less than one year.
Last 3 and 5 Fiscal Years Lakson Money Market Fund (LMMF) Fund Benchmark
FY'11
FY'12
FY'13
FY'14
FY'15
11.69% 11.76%
11.19% 11.31%
8.76% 9.14%
7.90% 8.50%
8.57% 8.45%
11.50% 10.82%
11.57% 8.86%
9.21% 9.17%
8.38% 8.31%
14.17% 12.64%
20.44% 28.53%
9.74% 10.45%
40.02% 52.20%
32.15% 25.96%
23.93% 5.67%
6.42% 10.63%
10.52% 13.45%
9.64% 12.94%
7.76% 5.34%
5.85% 7.25%
3.44% 7.89%
4.24% 7.47%
8.86% -1.02%
6.23% 9.82%
5.46% 8.50%
6.40% 10.01%
4.96% 3.36%
Lakson Income Fund (LIF) Fund Benchmark
Lakson Equity Fund (LEF) Fund Benchmark
Lakson Asset Allocation Developed Markets Fund (LAADMF) Fund Benchmark
Lakson Asset Allocation Global Commodities Fund (LAAGCF) Fund Benchmark
Lakson Asset Allocation Emerging Markets Fund (LAAEMF) Fund Benchmark
Since Inception Absolute Returns LMMF vs Benchmark Fund Benchmark
FY'10 6.77% 6.66%
FY'11 19.25% 19.21%
FY'12 32.63% 32.73%
FY'13 44.25% 44.86%
FY'14 55.65% 57.17%
FY'15 68.98% 70.45%
LIF vs Benchmark Fund Benchmark
7.16% 4.59%
19.49% 15.90%
33.35% 26.20%
45.63% 37.77%
57.84% 49.22%
80.20% 68.08%
LEF vs Benchmark Fund Benchmark
-0.66% 7.32%
19.65% 37.94%
31.30% 52.35%
83.84% 107.12%
142.95% 160.89%
201.91% 200.87%
LAADMF vs Benchmark Fund Benchmark
6.42% 10.63%
17.62% 25.51%
28.95% 41.75%
38.96% 49.33%
LAAGCF vs Benchmark Fund Benchmark
5.85% 7.25%
9.49% 15.71%
14.13% 24.36%
24.25% 23.09%
LAAEMF vs Benchmark Fund Benchmark
6.23% 9.82%
12.03% 19.15%
19.20% 31.08%
25.11% 35.49%
DISCLAIMER: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved.
13
Lakson Outlook - June 2015
Mutual Funds Performance Comparison Position as of July 07, 2015
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 Saving Plus Fund NIT - Income Fund Pakistan Income Fund PICIC Income Fund UBL Financial Sector Bond Fund 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 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 KASB 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 PIML Islamic Money Market Fund
30 Days 5.76 2.25 (10.09) 1.70 1.37 9.75 1.33 16.72 3.04 6.77 4.97 13.18 8.48 3.16 (0.10) 0.04 9.55
90 Days 9.26 7.97 0.13 5.69 4.92 10.32 7.04 11.63 6.83 10.81 10.16 11.17 7.75 7.68 7.01 5.83 6.15
6.61 5.31 4.78 1.92 5.56 6.81 4.75 3.76 (65.61) (69.30) 8.46 (1.01)
Annualized Returns (%) 180 Days 12.54 10.16 3.18 10.81 8.34 11.05 7.94 13.54 9.79 10.07 11.67 11.78 8.35 9.99 8.66 8.83 10.52
270 Days 15.54 12.16 5.06 12.98 10.46 13.05 10.93 14.91 12.84 11.12 14.29 13.93 8.61 14.96 10.90 11.52 11.57
365 Days 14.24 12.19 6.71 12.73 10.18 12.60 10.59 14.06 12.57 10.90 13.68 13.18 8.73 N/A 11.24 11.61 10.86
7.19 5.85 5.64 5.34 6.97 6.68 6.13 6.49 (18.59) (19.56) 6.72 1.43
8.18 7.43 6.82 5.97 7.79 7.01 7.52 7.68 (4.85) (5.28) 7.11 3.52
8.63 6.87 7.25 7.00 7.48 7.71 7.06 6.76 (0.82) (1.72) 7.30 4.29
8.74 6.08 6.87 6.54 7.21 8.20 6.23 6.16 1.38 (0.04) 7.35 4.63
16.37 7.06 10.78 7.57 8.69 13.68 5.42 9.38 7.30 13.78 13.83 5.02 8.79 10.77 6.76 12.92 12.98 23.66 6.06 9.35 4.94
10.54 7.12 8.48 7.08 8.02 9.47 6.51 7.89 7.13 9.33 9.66 6.19 7.66 8.51 6.62 9.07 9.13 13.45 9.73 7.95 6.33
9.55 7.89 8.26 7.77 8.14 8.27 7.45 8.14 7.65 8.62 9.06 6.81 8.03 8.55 7.39 8.82 8.70 11.30 9.31 8.07 7.23
9.42 8.30 8.46 8.05 8.41 N/A 7.88 8.44 8.07 8.68 9.17 7.68 8.33 8.72 7.92 8.91 8.76 10.79 9.50 8.33 7.65
9.33 8.57 8.56 8.28 8.59 N/A 8.09 8.61 8.27 8.74 9.22 8.04 8.51 8.76 8.19 8.99 8.83 10.49 9.55 8.49 7.91
3.94 3.85 6.02 (2.04)
5.61 4.63 6.37 2.00
5.67 5.57 7.20 4.16
6.31 6.47 7.49 4.75
6.59 6.66 7.40 5.08
N/A = Not Available
Source: MUFAP
14
Lakson Outlook - June 2015
Mutual Funds Performance Comparison Position as of July 07, 2015 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 KASB Income Opportunity Fund Pakistan Income Enhancement Fund United Growth & Income Fund Islamic Aggressive Income Funds Al Ameen Islamic Aggressive Income Fund KASB Islamic Income Opportunity Fund NAFA Islamic Aggressive Income Fund Equity Funds ABL Stock Fund AKD Opportunity Fund Alfalah GHP Alpha Fund Askari Equity Fund Atlas Stock Market Fund First Capital Mutual Fund First Habib Stock Fund JS Growth Fund JS Large Cap Fund JS Value Fund Lakson Equity Fund MCB Pakistan Stock Market Fund NAFA Stock Fund National Investment Unit Trust PICIC Energy Fund PICIC Stock Fund PIML Value Equity Fund United Stock Advantage Fund Islamic Equity Funds ABL Islamic Stock Fund Al Ameen Shariah Stock Fund Al Meezan Mutual Fund Atlas Islamic Stock Fund HBL Islamic Stock Fund JS Islamic Fund Meezan Islamic Fund PIML Islamic Equity Fund
Absolute Returns (%) 30 Days (19.86) (1.23) (4.66) (1.26) (2.47) (5.73) 1.17 (3.30)
90 Days (2.64) 6.35 4.05 6.17 4.72 (4.31) 6.86 3.99
180 Days 7.85 12.35 8.44 6.34 9.39 (6.03) 10.81 10.66
270 Days 20.82 15.38 12.54 11.07 12.14 (2.40) 14.27 12.63
365 Days 15.44 14.15 12.11 12.02 11.66 (0.75) 13.90 11.51
11.26 (7.20) 12.78
7.31 (2.28) 8.89
7.87 (4.40) 8.70
7.72 (1.15) 8.79
7.85 1.06 9.19
4.82 20.21 6.65 5.17 5.25 5.74 6.31 5.01 5.18 4.20 6.78 4.80 5.10 7.21 1.62 6.04 6.78 7.73
13.20 28.94 14.39 7.96 11.32 11.07 11.44 8.18 9.63 5.87 9.73 13.01 13.33 11.33 5.50 8.67 15.17 13.75
12.91 16.20 15.32 11.48 8.21 6.84 7.96 4.64 7.93 3.54 3.90 18.80 15.20 4.88 10.84 3.84 N/A 8.31
31.37 40.29 29.47 20.41 15.60 17.41 17.28 18.53 35.91 12.66 22.86 39.26 34.05 18.04 13.63 12.05 N/A 22.76
32.17 41.03 33.21 20.81 19.73 19.90 18.38 15.75 37.26 13.41 29.06 42.90 41.37 N/A 10.35 16.11 N/A 28.06
5.56 9.41 7.31 5.25 (9.13) 7.35 4.32 6.12
13.08 15.37 14.68 14.23 (4.30) 14.10 14.32 16.15
18.21 13.40 13.73 13.89 (7.68) 14.44 9.76 20.20
33.63 28.19 23.21 19.20 (3.86) 47.24 16.18 32.80
34.21 33.62 27.52 21.37 (2.77) 47.13 22.45 30.84
5.98 (1.99) 3.15 2.52 3.40
10.54 2.41 9.76 8.78 6.16
11.86 (1.37) 11.77 13.79 3.80
24.94 (2.17) 24.24 27.72 17.21
22.99 (0.52) 29.32 32.18 16.49
3.15 5.06
5.90 9.59
1.88 10.43
4.13 16.20
6.15 19.24
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 - June 2015
Mutual Funds Performance Comparison Position as of July 07, 2015 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 Pakistan Asset Allocation Fund NAFA Asset Allocation Fund Pak Oman Advantage 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 4.78 5.91 5.47 5.57 3.78 0.12 (0.07) (0.13) 0.56 4.25 2.22
90 Days 13.06 8.88 10.29 4.72 10.31 1.46 0.72 0.85 3.18 11.52 7.34
180 Days 17.37 6.69 11.13 2.04 12.61 5.03 2.65 3.82 7.86 12.63 4.88
270 Days 28.36 17.30 24.95 9.98 24.02 6.99 4.56 6.52 16.51 25.13 10.65
365 Days 30.37 19.48 19.60 8.07 24.60 7.47 4.28 8.93 19.80 28.22 11.87
(8.47) 3.98 5.43 3.71 4.24
(4.43) 9.16 11.98 8.90 8.89
(2.62) 7.81 17.48 7.73 14.78
3.68 13.91 33.15 12.10 34.42
7.29 15.65 37.44 14.92 38.83
0.86 2.31
1.87 5.92
N/A 10.49
N/A N/A
N/A N/A
2.75 4.01
7.95 10.06
11.00 12.82
20.69 22.10
23.30 24.53
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 - June 2015
Markets Information Equities Total Return in PKR and % Markets
Index
YTD
3-mo
1-yr
World
MSCI All Country World Index
2.8%
-0.4%
Developed
MSCI World Index
2.8%
-0.5%
Emerging
MSCI Emerging Markets Index
2.9%
-0.4%
Europe
MSCI Europe Index
3.2%
-1.1%
China
CSI 300
28.3%
10.2%
Dubai
DFM
1.2%
-0.2%
India
BSE Sensex 30
1.3%
-2.6%
6.6%
Japan
Nikkei 225
14.8%
3.2%
13.8%
Malaysia
FTSE Bursa
-9.1%
-8.6%
-20.5%
32.5%
Pakistan
KSE 100
7.1%
13.8%
16.0%
253.8%
Sri Lanka
Colombo All Share
-4.6%
2.2%
10.4%
UK
FTSE 100
1.4%
1.9%
-8.4%
US
DJIA
0.1%
-1.0%
7.9%
US
S&P 500
1.5%
-0.4%
8.5%
US
NASDAQ 100
5.1%
1.3%
17.7%
200.8%
Germany
DAX Index
4.1%
-5.1%
-6.6%
98.8%
CANADA
TSX 300 Composite Index
-6.3%
-1.0%
-15.4%
France
CAC - 40
4.6%
-1.3%
Brazil
Sao Paulo SE Bovespa Index
-8.0%
Korea
Korea SE Kospi
7.2%
Taiwan
Taiwan SE Weighted Index
4.0%
Total Return in USD and %
5-yr
YTD
3-mo
1-yr
5-yr
1.8%
87.8%
1.5%
-0.3%
-1.2%
57.9%
2.6%
98.3%
1.5%
-0.3%
-0.4%
66.7%
-4.6%
26.0%
1.7%
-0.2%
-7.5%
5.9%
-7.2%
65.7%
1.9%
-0.9%
-9.9%
39.2%
113.1%
127.1%
26.7%
10.4%
106.7%
90.9%
3.1%
220.9%
0.0%
0.0%
0.0%
169.7%
36.3%
0.1%
-2.4%
3.4%
14.5%
85.2%
13.4%
3.3%
10.4%
55.7%
-10.2%
-8.5%
-22.9%
11.4%
5.7%
13.9%
12.5%
197.4%
34.6%
-5.8%
2.4%
7.1%
13.1%
65.9%
0.2%
2.1%
-11.2%
39.4%
114.5%
-1.1%
-0.9%
4.7%
80.3%
138.2%
0.2%
-0.2%
5.2%
100.2%
3.8%
1.5%
14.2%
152.8%
2.8%
-5.0%
-9.4%
67.1%
30.6%
-7.5%
-0.8%
-17.9%
9.7%
-9.1%
50.8%
3.3%
-1.1%
-11.8%
26.7%
6.7%
-26.6%
-39.7%
-9.1%
6.9%
-28.8%
-49.3%
0.9%
-3.1%
59.2%
5.9%
1.1%
-6.0%
33.8%
-1.5%
-0.9%
57.5%
2.7%
-1.4%
-3.9%
32.4%
453.8%
-30%
-5%
20%
45%
70%
KSE Sectors Automobile and Parts
17.5%
18.3%
104.1%
453.8%
17.5%
18.3%
153.1%
Banks
-5.9%
-12.7%
-3.2%
129.1%
-5.9%
-12.7%
20.0%
129.1%
Chemicals
24.4%
2.6%
32.5%
203.3%
24.4%
2.6%
64.2%
203.3%
Construction and Materials
26.2%
4.3%
60.3%
814.4%
26.2%
4.3%
98.7%
814.4%
Electricity
26.8%
4.7%
64.2%
237.9%
26.8%
4.7%
103.5%
237.9%
Fixed Line Telecommunication
-5.8%
-19.8%
-27.3%
7.9%
-5.8%
-19.8%
-9.8%
7.9%
Food Producers
12.4%
-4.6%
15.1%
377.6%
12.4%
-4.6%
42.7%
377.6%
Non Life Insurance
-5.9%
-13.5%
4.6%
135.2%
-5.9%
-13.5%
29.7%
135.2%
Oil and Gas
-11.7%
-8.2%
-22.9%
53.5%
-11.7%
-8.2%
-4.4%
53.5%
Personal Goods
-3.7%
-10.7%
4.3%
248.2%
-3.7%
-10.7%
29.3%
248.2%
YTD 3-mo
Fixed Income Current Interbank Rates on Money Market China
SHIBOR
Historic 6-month Interbank Rates
1M
3M
6M
12M
YTD
3-mo
1-yr
2-yr
2.28%
2.86%
3.21%
3.44%
4.55%
4.43%
4.68%
4.62%
1.20%
0.88%
0.88%
0.96%
Dubai
UAE IBOR
0.41%
0.74%
0.89%
1.07%
India
MIBOR
8.06%
8.25%
NA
NA
Japan
TIBOR
0.13%
0.17%
0.26%
0.28%
0.35%
0.26%
0.28%
0.30%
Malaysia
KLIBOR
3.39%
3.69%
3.79%
3.87%
3.42%
3.82%
3.79%
3.55%
Pakistan
KIBOR
6.81%
6.74%
6.76%
7.13%
10.00%
7.71%
9.25%
9.51%
Sri Lanka
SLIBOR
6.53%
6.79%
7.05%
7.34%
10.55%
7.34%
7.44%
8.97%
UK
LIBOR
0.51%
0.57%
0.71%
1.00%
0.77%
0.69%
0.69%
0.65%
US
SIBOR
0.18%
0.28%
0.42%
0.75%
0.46%
0.41%
0.35%
0.36%
Current Market Yields on Government Securities
Govt. Securities vs. KIBOR
8.00% 7.75% 7.50% 7.25% 7.00% 6.75% 6.50% 6.25% 6.00% 5.75% 5.50% 5.25% 5.00%
Interbank May-15
1W
Historic 12-Month Paper Rates
3M
12M
5Y
10Y
YTD
3-mo
1-yr
2-yr
China
2.11%
2.09%
3.30%
3.60%
3.11%
2.92%
3.36%
3.50%
India
8.31%
8.31%
7.84%
7.64%
8.37%
8.54%
8.70%
Japan
0.00%
-0.02%
0.09%
0.39%
0.05%
-0.01%
-0.01%
0.03%
Malaysia
3.12%
3.16%
3.59%
3.92%
3.11%
3.22%
3.33%
3.17%
Pakistan
6.60%
6.81%
8.12%
9.21%
9.89%
7.48%
9.07%
9.39%
3M
6M
1Y
2Y
12M Yields of Government Securities China India Japan Malaysia Pakistan Sri Lanka
Sri Lanka
6.06%
6.30%
7.93%
8.20%
9.58%
6.30%
6.28%
7.85%
UK
0.51%
0.49%
1.34%
1.81%
0.36%
0.42%
0.42%
0.40%
UK
US
0.00%
0.24%
1.49%
2.12%
0.14%
0.22%
0.15%
0.13%
US 0%
17
1M
Govt. Sec. May 15
3%
6%
9%
12%
Lakson Outlook - June 2015
Markets Information Commodities Total Return Commodity
Unit
YTD
3-mo
Current Prices
1-yr
5-yr
DB Commodity Index
USD Excess Return
-1.6%
5.7%
-30.3%
-12.9%
371.0
S&P Global Commodity Index
USD Total Return
-0.2%
8.7%
-36.8%
-19.9%
3226.1
Dow Jones UBS Commodity Index
USD Total Return
-1.6%
4.7%
-23.7%
-18.1%
206.8
Coal
USD/Tonne
-2.4%
7.0%
-14.5%
N.A
60.8
Copper
USc/lbs
-7.1%
-4.3%
-17.7%
-10.6%
262.4
Cotton
USc/lbs
12.0%
7.0%
-14.8%
-18.3%
67.5
Gold
USD/t oz.
-1.0%
-1.0%
-11.4%
-5.9%
1171.8
Palm Oil
USD/Tonne
-9.2%
3.0%
-22.1%
-21.0%
594.0
Sugar
USc/lbs
-15.4%
2.9%
-26.1%
-31.9%
12.3
Wheat
USD/Bushel (60Ibs)
4.2%
20.1%
8.9%
32.3%
6.1
WTI
USD/bbl
11.6%
24.9%
-43.6%
-21.4%
59.5
Brent Crude
USD/bbl
10.9%
15.4%
-43.4%
-15.2%
63.6
Heating Oil
USd/Gallon
2.2%
9.8%
-36.5%
N.A
188.7
RBOB Gasoline
USD/Gallon
45.6%
17.4%
-32.1%
1.4%
2.1
Natural Gas
USD/MMBTU
-2.0%
7.3%
-36.5%
-38.6%
2.8
Silver
USD/t Ozs
-0.1%
-6.3%
-26.0%
-16.7%
15.6
Currencies Change Versus PKR in %
Current Exchange Rates
DBCI
SPGSCI
DJUBS
110 100 90 80 70 60 50 Jun-14
190
Aug-14
GBP
Oct-14
EUR
Dec-14
Feb-15
CAD
Apr-15
Jun-15
USD
170
YTD
3-mo
1-yr
5-yr
Canadian Dollar
CAD
-6.02%
1.43%
-11.89%
1.29%
CAD - PKR
81.52
Euro
EUR
-7.14%
3.68%
-16.07%
8.27%
EUR - PKR
113.42
Indian Rupee
INR
0.00%
0.00%
0.00%
-2.58%
INR - PKR
1.7941
Japanese Yen
JPY
-1.28%
-2.02%
-14.67%
48.46%
JPY - PKR
0.8314
Pound Sterling
GBP
1.89%
5.90%
-5.27%
25.05%
GBP - PKR
159.98
Singaporian Dollar
SGD
-0.67%
1.77%
-4.54%
23.58%
SGD - PKR
75.60
US Dollar
USD
1.25%
-0.15%
3.09%
18.98%
USD - PKR
101.78
18
120
150 130 110 90 70 Jun-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Feb-15 Mar-15 Apr-15 May-15
Lakson Outlook - June 2015
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 - June 2015
1954
DECADES OF SEASONED INVESTMENT
Century Insurance
Merit Packaging Limited
Century Paper & Board Mills
Hassan Ali Karabhai 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
