lakson outlook june 2017

LAKSON GROUP ONLINE www.li.com.pk [email protected] WE MANAGE YOUR MONEY, AS WE MANAGE OUR OWN TELEPHONE + 92 21 3569 800...

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LAKSON GROUP

ONLINE www.li.com.pk [email protected] WE MANAGE YOUR MONEY, AS WE MANAGE OUR OWN

TELEPHONE + 92 21 3569 8000 UAN: +92 21 111 Lakson F: +92 21 3568 1653

ADDR ESS Lakson Investments Limited. Lakson Square, Building No. 2, Sarwar Shaheed Road, Karachi-74200, Pakistan

CONTENTS 04

06

07

Economic & Markets Review

FMR Lakson Money Market Fund

FMR Lakson Income Fund

08

09

10

FMR Lakson Equity Fund

FMR Lakson Tactical Fund

FMR Lakson Islamic Tactical Fund

13

14

11 FMR Lakson Asset Allocation Developed Markets Fund

Funds Return History

17 Markets Information

Mutual Funds Performance Comparison

4

Economic & Markets Review PAKISTAN Economy CPI inflation in June 2017 clocked in at 3.9% vs. 5% in May 2017. The fall in the reading is largely because of lower chicken, onion, sugar and cigarette prices. Moving ahead, CPI could remain contained unless the GoP decides to pass through higher oil prices by raising POL prices in Pakistan. Large-scale manufacturing (LSM) increased by 5.58%YoY for July-April 17.Major contributors were Iron and Steel (20.3%YoY), Electronics (15.1% YoY), Food beverages& Tobacco(11.6%YOY) and Automobile (11.4%YoY). Private sector credit off-take continues to accelerate (up 18.3%YoY in May'17 vs. 8.1% in May'16) with impetus from Construction (40%YoY), Food (32%YoY), consumer financing (22%YOY) and textiles (14%YoY). CAD has touched USD 1.63bn in May 2017 compared to USD 1.34bn in Apr 2017. This is 3rd highest in the history for Pakistan. The previous two peaks were in Oct 2008 when CA Deficit touched USD 2.4bn while in Nov 2007 it had touched USD 1.7bn. Cumulatively, 11MFY17 CAD has reached USD 10.6bn (revised) compared to a deficit of USD 4.59bn SPLY(revised). Widening gap in current account was attributable to: 1) 1.59% YoY drop in exports, 2) 16.71% YoY increase in imports, 3) 23% YoY decline in CSF inflows and 4) 2.13% YoY dip in workers' remittances. FDI depicted growth of 8.6% YoY to USD 2.2bn in 11MFY17. This growth has been supported by investment from China and Engro Foods acquisition deal valuing USD 462mn by the Netherlands-based Friesland Campina which culminated in Dec16. During the month of May'17, FDI flows stood at USD 295mn, growth of over 1.92x compared to USD 154mn in Apr'17. Remittance increased 21% MoM to US$1.9b in May 2017, due to seasonal surge before Eid. However, on a YoY basis, remittances went down by 2.13% YoY during 11MFY17 to USD17.5 bn vs. USD17.8 bn in 11MFY16. This was primarily attributable to 4.5% YoY decline in remittances from MENA Region (63% of total remittances) in spite of improvement in oil prices (+21%YoY during FYTD).

Yield Curve 11.5% 10.5% 9.5% 8.5% 7.5% 6.5% 5.5% 1W

Equities Review KSE30 Index retreated by -9.4% during Jun17, taking FY17 return to 12%, mainly led by a correction in large cap stocks during the last month of the fiscal year. KSE100 index lost 7.96% ( highest decline since Jan17) during the month of Jun 2017. Politics dominated the news headlines with JIT proceedings in relation to the Panama gate investigation taking the center stage. Furthermore, relentless foreign selling in initial days of the month added fuel to the fire, following the market's graduation to the MSCI EM from FM space. Trading activity slowed down during Ramadan with average volumes for the month clocking in at 257.2mn shares in Jun 2017 compared to 338.2mn shares in May 2017. Foreigners remained net buyers for the month (USD 7.9mn inflows, which included Vitol Dubai's increased stake in HASCOL for about USD 18.7mn) contrary to the year's trend (net outflows of USD 332.8mn in 1HCY17). On the local front, individuals offloaded positions worth USD 61.3mn reflecting concerns on the political landscape while Insurance companies were active on the buying side during the month. Key sectors performance remained dismal as, Oil&Gas (down 15.7% MoM on lower oil prices), Cements (down 10.3%MoM on potential slowdown in dispatches growth in the ongoing Monsoon season) and Fertilizers (down 7.6%MoM on continuous inventory buildup) were major losers. For Oil&Gas sector, lower oil prices continue to drag performance with Brent/WTI trading 5.7%/6.5% lower MoM. Cements were down 10.3%MoM on potential slowdown in dispatches growth during the ongoing Monsoon season while Fertilizers lost 7.6%MoM on account of continuously increasing stockpiles. With interest rate reversal expectations being pushed off further on inflation readings, Commercial Banks also remained in a tight spot, losing 4.3%MoM. While politics is likely to remain the key driver in Jul 2017 (JIT investigation report expected to be submitted to SC on Jul 10'17), the upcoming 2HCY17/FY17 earnings season could be a key performance determinant with most companies in key sectors (Cements, Autos, and Electricity) scheduled to announce full year payouts. The market's broad based recovery will be hinged upon the outcome of the JIT, however, we believe the recent declines have opened up valuations as KSE-30 index trades at a P/E of 8.12x currently vs. 11.9x in May'17. Money Market Review In the first T-Bills auction on 7 June, GoP raised PKR 160.8 billion with weighted average yields at 5.99%, 6.01% and 6.05% for 3M, 6M, and 12M tenors. In the subsequent auction on June 21, GoP raised PKR 346.5 led by participation in 3M T-Bills and followed by those of 6M. Weighted average yields, remain unchanged to 5.99%, 6.01% for 3M and 6M tenors respectively and fell 1bps for 12M tenor to 6.04%. In the PIB auction held on June 14th, GoP raised PKR 78.2 billion, led by participation in 3yr tenor paper. Average yield of 3yr tenor was at 6.40% (unchanged), 5yr tenor 6.90% (+1bps) and 10yr tenor 7.94% (unchanged). Major participation was observed in 3 year PIBs (PKR 70.9 billion), followed by in 5 year (PKR 3.7 billion) and 10 year (PKR 3.5 billion); meanwhile, there was no participation in 20 year tenor paper. CPI for June clocked in at 3.93%, down from 5.02% in May. However, Core inflation remained flat near 5.5%. The reduction in CPI was due to lower prices of cigarettes and certain perishable items. However, considering core inflation remains sticky, further monetary easing is not expected although tightening could be delayed until 2018.

6M

2Y

5Y

31-May-17

8Y

15Y

29-Jun-17

USD/PKR vs. Forex Reserves

Forex Res. (USD bn.) - RHS USD/PKR

106.0

Foreign exchange reserves increased slightly to US$ 21.4b in June 2017 vs. US$ 21.2b in May 2017. We attribute the surge to the increase in the forex reserves of the commercial banks. PKR remained flattish against the greenback (down 0.3%MoM), closing at PKR104.9 in June 2017. However, amid rising current account deficit, PKR depreciation cannot be ruled out.

2M

22.0 21.5 21.0

105.0

20.5 20.0 19.5

104.0

19.0 18.5 103.0

18.0 1-Jun

8-Jun

15-Jun

22-Jun

29-Jun

Market Rates

6.25%

6.00%

5.75% 1-Jun 10-Jun 19-Jun 6M KIBOR O/N Repo Rate

28-Jun 6M T-Bill

Current account deficit widened by 3x YoY to USD 7.24bn.

5

Economic & Markets Review INTERNATIONAL Developed Markets International crude oil prices weakened further in the month of June as disappointment increased over the slower than expected market rebalancing. Major investment banks continued to lower their price forecasts upon higher than expected production from Nigeria and Libya and a swift rebound in US shale output. The steady rise in the US rig count also led to expectations that production will be sustained this year, leaving little time for inventories to normalize. Arab Light price declined by 6.65% in June, to bring the quarter's decline to 10.4% and the half year's decline to 16.2%. Along with other crude oils, Arab Light closed FY17 with negative returns of 2.7%. There are few triggers in sight that could support oil prices in the coming months. Developments on the geo-political front in the wake of Qatar's precarious relations with Saudi Arabia may drive oil prices in the near future. Similarly, prices of petro-chemicals too declined during the period, with South East Asian Paraxylene and Purified Terephthalic Acid (PTA) prices down 3.1% and 0.8% respectively in June. The monthly decline brought the quarterly decline of Paraxylene to 7.2% and that of PTA to 5.3%. Similarly, Ethylene prices declined by 9.7% in June to take the quarter's decline to 19.2%, and FY17's decline to 16.1%. Among all the major commodities, Urea prices saw the deepest cut in both the quarter and half year ended June 30, 2017, with Middle Eastern Urea price down 7.5% in June, down 12.7% in the quarter, down 24.5% in the half year and down 11.9% in FY17. Global over capacity continues to plague the commodity, giving little chance of a significant recovery any time soon. Unlike oil and commodities whose prices depend on oil, steel prices continued to recover in June. Chinese Hot Rolled Coil was up 6.8% and Cold Rolled Coil was up 4.1% in June, to take FY17 gain to 35.1% and 27.6% respectively. Emerging markets Emerging markets were mixed in June, with heavyweight China up (Shanghai Composite +2.4%) while another heavyweight, India, was down (BSE Sensex Index -0.7%). Turkey (Borsa Istanbul 100 up 3.0%), Saudi Arabia (Tadawul All-share Index up 8.1%) and Mexico (S&P/BMV IPC Index up 2.2%) too performed well in June. A large number of Emerging Markets closed FY17 with strong double digit gains, with notable exceptions being China (Shanghai Composite up 9.0% only) and Russia (MICEX down 0.6%).

Performance of Equities and Commodities 140%

MSCI World Index MSCI EM Index DB Commodity Index

120%

100%

80%

60% Jun-16

Sep-16

Dec-16

Mar-17

Valuation of International Markets 20 16 12 8 4 -

DM Commodity Review

US

UK

Japan Canada

EM

Brazil Russia

India

China

P/E Multiple

Emerging Market Review Indian equities declined in June as investors chose to book profits after five consecutive months of positive returns. The BSE Sensex index was down 0.7%, which brought down the quarter's return to 4.4%, the half year's return to 16.1% and FY17's return to 14.5%. Chinese equities finally saw some respite in June after months of decline. A positive event during June was the announcement by MSCI that Chinese A shares will be included in the Emerging Markets Index from next year. MSCI executives have estimated that USD 17bn or more could flow into Chinese stocks as a result of this inclusion.[1]The Shanghai Composite gave a return of 2.4% in June, to bring the quarter's return to -0.9%, the half year's return to 2.9% and the year's return to 9.0%.

Developed Markets Review

Brazil's equities were mostly flat in June (Bovespa Index up 0.3%) to take the quarter's return to -3.2% and FY17 return to 22.1%. Political instability arising from serious allegations against the country's interim president had affected the country's stock market in May, and their equities are yet to recover from it. Commodities Market Review Most European developed markets performed poorly during June, but still managed to close the year with positive returns. FTSE100 was down 2.8% in June as uncertainty over the terms of Brexit continued, especially because now a weaker Government is in place since the snap election on June 8, 2017. The FTSE100 index still managed to close the year with returns of 12.4%. Similarly German equities were down 2.3% in June, but managed to give a positive return of 27.3% during the fiscal year. Equity returns in Germany will increasingly be driven by politics as their federal elections, scheduled for September 24, 2017 approach. US equity market too appeared to lose its steam during the month of June, with the S&P 500 giving a flat return of 0.48%. Financials supported the index as the industry passed Fed's stress test.[3] Meanwhile, technological stocks held the market back as Google was hit by a multi-billion dollar fine and as the health-care bill was delayed.[4]S&P 500 Index managed to close the quarter with gains of 2.6%, the half year with gains of 8.2% and FY17 with gains of 15.5%. Going forward returns on US equities will be determined by speed of tax and healthcare reform. Moreover, IMF has recently cut its growth forecast for US as prospects for fiscal stimulus fade. The disappointment related to fiscal stimulus may eventually start to reflect in US equity returns. Unlike developed markets in Europe and Americas, other developed markets performed well in June, with Japanese equities (Nikkei 225 Index) rising by 1.9%, and New Zealand's equities (S&P/NZX 50 Gross Index) rising by 2.6% in June. The Nikkei 225 Index turned out to be one of the best developed market performers in FY17, with return of 28.6%.

International crude oil prices were highly volatile in May.

6

LAKSON MONEY MARKET FUND MUFAP’s Recommended Format Investment Objective

FU ND F AC T S

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

SWWF Disclosure

The Lakson Money Market Fund generated an annualized return of 6.80% against the benchmark return of 4.82% during FY17TD thus outperformed by 1.98%. During CY17TD the Fund has returned 8.02% to unit holders against the benchmark of 5.31% and outperformed by 2.71%. Asset allocation changed with cash placement at 100% respectively. As a result portfolio WAM was calculated at 01 days. Going forward the Fund will focus on increasing exposure to attractive Cash and Term deposit placements in order to generate returns and mitigate interest rate risk.

As of June 30th, 2017 the LMMF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 5.37 million. If the same were not made the NAV per unit of the LMMF would be higher by PKR 0.1150. If the LMMF would not have made the SWWF provisions during FY17, the year to date annualized return of the LMMF for FY17 would be higher by 0.11%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LMMF.

Total Expense Ratio (TER)

Fund Type Category Net Assets (PKR Mil.) NAV (30.06.2017) Pricing Mechanism Trustee Auditor Management Fee

Front End Load Back End Load Launch Date Benchmark*

Dealing Days Cut-Off Time Fund Stability Rating Asset Manager Rating Risk Profile

Open-End Money Market Fund 4,679 100.162 Previous Day CDC Pakistan Limited BDO Ebrahim & Co. 10% of Gross Earnings subject to a minimum of 0.50% and maximum of 1.00% of the average annual net assets. Current - 0.65% None None November 13, 2009 70% average 3 months PKRV rates + 30% average 3 months deposit rate of three AA rated banks Mon-Fri 4:00 PM 'AA' by PACRA (09.12.2016) AM2+ by PACRA (15.05.2017) Low Risk

0.93% (This is inclusive of 0.20% representing Government levies and SECP Fees) YTD 0.93% (This is inclusive of 0.20% representing Government levies and SECP Fees)

10%

Asset Allocation

Cash

AAA AA

Credit Split

90%

100%

Asset Allocation Instruments (% of total Assets) Instruments Placements with Banks & DFIs PIBs T Bills Cash Others including receivables * Weighted Average Maturity Non Compliant Investments Name on investment Type of instrument Value of investment before provisioning

Apr-17 0% 0% 87% 12% 1%

May-17 0% 0% 90% 10% 0%

Jun-17 0% 0% 0% 100% 0%

WAM* days 0 0 0 1

Morningstar FY17 - YTD June-17 2 Months 3 Months 6 Months 12 Months CY17 - YTD

LMMF 6.80% 9.94% 7.41% 6.84% 8.18% 6.80% 8.18%

Benchmark 5.28% 5.29% 5.33% 5.41% 5.39% 5.28% 5.39%

Simple Annualized FY17 - YTD June-17 2 Months 3 Months 6 Months 12 Months CY17 - YTD 3 Years 5 Years Since Inception

LMMF 6.80% 9.51% 7.19% 6.67% 8.02% 6.80% 8.02% 7.74% 8.74% 11.87%

Benchmark 5.28% 5.16% 5.22% 5.30% 5.31% 5.28% 5.31% 7.16% 8.56% 11.62%

*The benchmark of the Fund was changed in February 2014 and September 2016.

LMMF vs. Benchmark Disclosures Leverage as on June 30th, 2017 Non Performing Assets WAM of Portfolio

Nil Nil 01 Days

Total provision held Value of investment after provisioning % of total assets

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.

LAKSON OUTLOOK

PERFORMANCE

118 117 116 115 114 113 112 111 110 109 108 107 106 105 104 103 102 101 100 Jun-14

Mar-15 Benchmark

Dec-15

Sep-16

Jun-17

LMMF

INVESTMENT COMMITTEE Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA

Chairman

June 2017

7

LAKSON INCOME FUND MUFAP’s Recommended Format Investment Objective

FUND FACTS

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

SWWF Disclosure

In June 2017, LIF generated an annualized return of 9.47% against the benchmark return of 6.15%. Over FY17TD the LIF has generated a return of 6.20% . Asset allocation changed with placements at 26%, cash exposure increase to 50.07%, corporate debt at 9.44%, MTS at 1.61% and RBFS at 6.02% . This translated the portfolio WAM to 166 days. Going forward the Fund will concentrate on building exposure to high quality corporate debt and bank deposits placements.

As of June 30th, 2017 the LIF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 4.60 million. If the same were not made the NAV per unit of the LIF would be higher by PKR 0.1279. If the LIF would not have made the SWWF provisions during FY17, the year to date annualized return of the LIF for FY17 would be higher by 0.13%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LIF.

Fund Type Category Net Assets (PKR Mil.) NAV (30.06.2017) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark* Dealing Days Cut-Off Time Fund Stability Rating Asset Manager Rating Risk Profile

Open-End Income Fund 3,624 100.6760 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 1.50% 1.50% None November 13, 2009 Average daily rate of 6M KIBOR (Ask) Mon-Fri 4:00 PM 'A+' by PACRA (09.12.2016) AM2+ by PACRA (15.05.2017) Medium Risk

PERFORMANCE Total Expense Ratio (TER) 2.04% (This is inclusive of 0.31% representing Government levies and SECP Fees) YTD 2.04% (This is inclusive of 0.31% representing Government levies and SECP Fees) 5% 26%

Asset Allocation 50%

3% 6% 3%

2% 6%

Placements with Banks & DFIs T-Bills TFC Sukuk MTS Spread Tran Cash Others

5%

8%

3% 3% 9% 1%

27%

Credit Split 41%

Gov Sec AAA AA+ AA AAA AUnrated

Asset Allocation Instruments (% of total Assets) Instruments Placements with Banks & DFIs PIBs T Bills TFCs Sukuks MTS Spread Transactions Cash Others including receivables * Weighted Average Maturity

Apr-17 18% 4% 1% 6% 3% 9% 2% 56% 1%

Askari Bank Limited IV Bank Al Falah Limited V Habib Bank Limited I K-Electric AZM Sukuk III NRSP PEL SUKUK

Jun-17 26% 0% 3% 6% 3% 2% 6% 50% 5%

WAM* days 135 0 27 1758 311 0 0 1

Disclosures

TFCs/Sukuk Portfolio Name of the Issuer

May-17 20% 0% 2% 6% 3% 7% 0% 57% 5%

Issue Date

Rating

% of Total Assets

23-Dec-11

AA-

1.95%

20-Feb-13

AA-

1.69%

19-Feb-16

AAA

1.91%

24-Feb-14 30-Jun-16 25-Aug-16

AA A A

1.05% 1.28% 2.05%

Leverage as on June 30th, 2017 Non Performing Assets WAM of Portfolio

Nil Nil 166 Days

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.

LAKSON OUTLOOK

Morningstar FY17 - YTD June-17 2 Months 3 Months 6 Months 12 Months CY17 - YTD Simple Annualized FY17 - YTD June-17 2 Months 3 Months 6 Months 12 Months CY17 - YTD 3 Years 5 Years Since Inception

LIF 6.92% 19.28% 12.14% 10.10% 8.29% 6.92% 8.29% LIF 6.92% 17.76% 11.57% 9.74% 8.13% 6.92% 8.13% 10.55% 11.16% 14.13%

Benchmark 6.00% 6.12% 6.31% 6.29% 6.24% 6.00% 6.24% Benchmark 6.00% 6.15% 6.15% 6.15% 6.14% 6.00% 6.14% 9.72% 10.54% 11.92%

*The benchmark of the Fund was changed in September 2016

LIF vs. Benchmark 128 126 124 122 120 118 116 114 112 110 108 106 104 102 100 Jun-14

Mar-15

Benchmark

Dec-15

Sep-16

Jun-17

LIF

INVESTMENT COMMITTEE Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA

Chairman

June 2017

8

LAKSON EQUITY FUND MUFAP’s Recommended Format Investment Objective

FUND FACTS

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

SWWF Disclosure

LEF closed FY17 on a high note, generating a FYTD return of 26.4% vs. 17.9% of the benchmark. This clocks an out performance of 8.5%. In addition, the fund made an annual distribution of PKR 1.0348 per unit (1.0348% of par value of PKR 100). LEF realized gains in June'17 in sectors were unrealized profits were largest. Redemptions reduced fund size, keeping overall exposure at 91% in equities. The fund reduced exposure in OMCs and Power Generation, redeploying proceeds into Commercial Banks and Construction. All other exposures remained the same as holdings were reshuffled.

As of June 30th, 2017 the LEF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 38.09 million. If the same were not made the NAV per unit of the LEF would be higher by PKR 1.1828. If the LEF would not have made the SWWF provisions during FY17, the year to date return of the LEF for FY17 would be higher by 0.90%. For details investors are advised to read the latest Financial Statements of the LEF.

Open-End Equity Fund 4,217 130.9153 Forward Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 2.00% 3.00% None November 13, 2009 KSE-30 Index (Total Return Index) Mon-Fri 4:00 PM 4 Star (08.05.17) AM2+ by PACRA (15.05.2017) High Risk

PERFORMANCE*

Total Expense Ratio (TER) 3.29% (This is inclusive of 0.94% representing Government levies and SECP Fees) YTD 3.29% (This is inclusive of 0.94% representing Government levies and SECP Fees) Top 10 Holdings Weight Habib Bank Limited 5.45% United Bank Limited 4.89% Lucky Cement Limited 4.85% Engro Corporation Limited 4.73% DG Khan Cement Limited 3.99% Sui North Gas Pipelines Limited 3.95% MCB Bank Limited 3.86% Pakistan State Oil Limited 3.54% Oil & Gas Development Co 3.44% Nishat Mills Limited 3.42%

Sectorwise Exposure Chemicals*

May-17

Jun-17

7.99%

7.98%

Comm Banks

22.00% 23.38%

Const. & Mat.

14.25%

14.72%

Electricity

5.73%

5.36%

Oil & Gas Exp

11.16%

9.22%

Oil & Gas Mktg

8.40%

8.41%

Others

19.78%

21.66%

*Includes fertilizers

4%

8%

5%

22%

Asset Allocation

Fund Type Category Net Assets (PKR Mil.) NAV (31.06.2017) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark* Dealing Days Cut-Off Time Fund Performance Ranking (1 Year) Asset Manager Rating Risk Profile

Equity Cash Others

Sector wise Exposure

8%

23%

9% 5%

91%

15%

Chemicals Comm Banks Const. & Mat Electricity Oil & Gas Exp Oil & Gas Mktg Others

FY17 - YTD June-17 2 Months 3 Months 6 Months 12 Months CY17- YTD 3 YEAR 5 YEAR SINCE INCEPTION

LEF 26.40% -7.52% -4.70% -0.47% 0.79% 26.40% 0.79% 73.26% 220.58% 320.95%

Benchmark** 17.92% -8.73% -5.95% -3.64% -3.99% 17.92% -3.99% 25.06% 114.16% 167.01%

*Returns based on last working day NAV **KSE-30 Total Return

LEF vs. Benchmark 700 600 500 400 300 200

Asset Allocation (% of Total Assets) Apr-17 May-17 Jun-17

Pakistan vs. Global Markets Country

Index

Equities

88%

89%

91%

T-Bills

0%

0%

0%

Pakistan KSE-100

Cash

10%

10%

5%

India

Others

2%

1%

4%

Disclosures Leverage as on June 30th, 2017 Non Performing Assets

Sensex 30 4.10% 22.93

1.19 3.14

DFM General

-4.05% 15.98

4.24

USA

DJIA

0.33% 18.48

2.36

USA

S&P 500

1.16% 21.41

1.97

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.

LAKSON OUTLOOK

0 Jun-16

Sep-16 LEF

Dec-16

Mar-17

KSE-100

Jun-17 KSE-30

BSE

Malaysia FTSE KLCI -0.12% 16.77 Dubai Nil Nil

100

1M P/E Div. Ret. Yield 2.62% 10.65 4.28

INVESTMENT COMMITTEE Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA

Chairman

June 2017

9

Lakson Tactical Fund

(Formerly: Lakson Asset Allocation Global Commodities Fund)

MUFAP’s Recommended Format Investment Objective

FUND FACTS

The investment objective of the Lakson Tactical Fund (Formerly: Lakson Asset Allocation Global Commodities Fund) is to provide long-term capital appreciation by investing in a mix of securities comprising debt, equity and commodities future contracts. Performance Review

SWWF Disclosure

During the month of June 2017 the Lakson Tactical Fund generated an absolute return of -1.89% against the benchmark return of 4.35%. The fund has outperformed the benchmark by 2.64% during the month of June 2017. Allocation was focused between Equities (54%), Placements with Banks & DIFs (28%), Cash (11%) and TFCs/Sukuks (4%). Going forward the fund will look to minimize interest rate risk while maintaining a healthy exposure to equities.

As of June 30th, 2017 the LTF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 3.61 million. If the same were not made the NAV per unit of the LTF would be higher by PKR 0.3143. If the LTF would not have made the SWWF provisions during FY17, the year to date return of the LTF for FY17 would be higher by 0.29%. For details investors are advised to read the latest Financial Statements of the LTF.

Fund Type Category Net Assets (PKR Mil.) NAV (30.06.2017) Pricing Mechanism Trustee Auditor Management Fee

Front End Load Back End Load Launch Date Benchmark*

Total Expense Ratio (TER) 2.24% (This is inclusive of 0.51% representing Government levies and SECP Fees) YTD 2.24% (This is inclusive of 0.51% representing Government levies and SECP Fees) Asset Allocation (% of Total Assets) Apr-17 May-17 Jun-17 Placements

3% 11% 28%

with Banks & DIFs

22%

21%

28%

PIBs

3%

2%

0%

TFC/Sukuks

3%

3%

4%

Equity

49%

44%

54%

Cash

21%

29%

11%

Others

2%

1%

3%

Top 10 Equity Holdings (%age of total assets) Securities

Jun-17 Weight

Habib Bank Lucky Cement United Bank Engro Corp. MCB Bank Ltd. Oil & Gas Dev. D.G.K.Cement Mari Petroleum Bank AL-Habib Hub Power Co.

3.61% 3.52% 3.28% 2.89% 2.65% 2.47% 2.20% 2.04% 1.97% 1.93%

TFC

Asset Allocation 4%

Equity Cash Others

54%

Sectorwise Exposure

Nil Nil

May-17

Jun-17 15.06%

Const. and Mat.

9.06%

11.09%

Oil & Gas Exp

5.65%

6.49%

Chemicals*

4.00%

4.61%

169.00

Auto Assemblers & Parts 3.60%

4.47%

159.00

Oil & Gas Mktg

3.77%

4.05%

Electricity

2.76%

3.28%

Others

4.05%

1.64%

*Includes fertilizers

LTF 17.23% -1.89% 0.32% 2.80% 4.23% 17.23% 4.23% 36.36% 47.04% 55.64%

FY17 - YTD June-17 2 Months 3 Months 6 Months 12 Months CY17-YTD 3 Years 5 Years Since Inception

11.01%

Benchmark 9.85% -4.35% -2.70% -1.43% -0.64% 9.85% -0.64% 12.20% 26.63% 35.83%

*The benchmark of the Fund was changed in September 2016.

LTF vs. Benchmark 179.00

149.00 139.00 129.00 119.00

The returns and the benchmark before April 19, 2016 were computed on the basis of investment objectives and policies before conversion and therefore do not offer a comparison

This is being reported for the Investor information only 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.

LAKSON OUTLOOK

PERFORMANCE

Comm. Bank

The significant change in the performance of the fund is reflective of the change in the Investment objectives and thereby a change in its investment policies on the conversion of the Fund w.e.f April 19, 2016.

Disclosures Leverage as on June 30th, 2017 Non Performing Assets

Placement with Banks & DFIs

Dealing Days Cut-Off Time Asset Manager Rating Risk Profile

Open-End Asset Allocation Fund 1,226 106.6898 Forward Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 10% of the gross earnings of the Scheme, calculated on a daily basis. The fee is subject to a minimum of 1% and maximum of 2% of the average annual net assets of the Scheme. Current - 1.23% 2.50% None October 11, 2011 Weighted average daily return of KSE30 Index, 6M KIBOR and the DBIQ Optimum Yield Diversified Commodity Index Excess Return based on the Scheme's actual proportion in the equity, debt securities and commodities Mon-Fri 4:00 PM AM2+ by PACRA (15.05.2017) Medium Risk

109.00 99.00 Oct-12

May-13

Dec-13

Jul-14

Benchmark

Feb-15

Sep-15

Apr-16

Nov-16

Jun-17

LTF

INVESTMENT COMMITTEE Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA

Chairman

June 2017

10

Lakson ISLAMIC Tactical Fund (Formerly: Lakson Asset Allocation Emerging Markets Fund)

MUFAP’s Recommended Format Investment Objective

FUND FACTS

The investment objective of the Lakson Islamice Tcatical Fund (Formerly: Lakson Asset Allocation Emerging Markets Fund) is to provide long- term capital appreciation by exclusively investing in Shariah Complaint avenues including equities, fixed income instruments and emerging market securities. Performance Review

SWWF Disclosure

During the month of June 2017 the Lakson Islamic Tactical Fund generated return of 2.85% against the benchmark return of 4.77%. The fund has outperformed the benchmark by 1.93% during the month of June 2017. Fund exposure is in Cash (51%) and Equities (47%). A build up in Shariah compliant equities and fixed income instruments will be targeted, going forward.

As of June 30th, 2017 the LITF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 0.16 million. If the same were not made the NAV per unit of the LAAEMF would be higher by PKR 0.0905. If the LITF would not have made the SWWF provisions during FY17, the year to date return of the LITF for FY17 would be higher by 0.09%. For details investors are advised to read the latest Financial Statements of the LITF.

Fund Type Category Net Assets (PKR Mil.) NAV (30.06.2017) Pricing Mechanism Trustee Auditor Management Fee

Front End Load Back End Load Launch Date Benchmark*

Total Expense Ratio (TER) 3.51% (This is inclusive of 0.49% representing Government levies and SECP Fees) YTD 3.51% (This is inclusive of 0.49% representing Government levies and SECP Fees)

Asset Allocation (% of Total Assets) Apr-17 May-17 Jun-17

2%

54%

Asset Allocation

47%

Equities Sukuk Cash Others

Equities

47%

42%

47%

Sukuk

8%

1%

0%

Cash

43%

54%

51%

Others

2%

2%

2%

Jun-17 Weight

Lucky Cement

3.85%

Engro Corp

3.39%

D.G.K.Cement

2.85%

Sui North Gas

2.83%

P.S.O.

2.54%

Mari Petroleum

2.51%

Oil & Gas Dev.

2.50%

Nishat Mills Ltd.

2.45%

Hub Power Co.

2.44%

Meezan Bank

2.06%

Disclosures Leverage as on June 30th, 2017 Non Performing Assets

Nil Nil

Medium Risk

PERFORMANCE LITF 8.99% -2.85% -1.35% 1.22% 1.98% 8.99% 1.98% 7.17% 20.26% 42.39%

Benchmark 8.23% -4.77% -3.08% -1.44% -1.32% 8.23% -1.32% 11.93% 31.64% 44.61%

Oil & Gas Exp.

7.28%

7.07%

Oil & Gas Mar.

5.32%

6.07%

*The benchmark of the Fund was changed in September 2016.

Chemicals*

5.44%

5.73%

LITF vs. Benchmark

Sectorwise Exposure Const. and Mat.

May-17

Jun-17

9.80%

12.78%

159.00

Auto Assemblers & Parts

4.12%

4.03%

Electricity

3.66%

3.76%

Others

6.75%

8.06%

*Includes fertilizers The change in the performance of the fund is reflective of the change in the Investment objectives and thereby a change in its investment policies on the conversion of the Fund from a conventional asset allocation fund to a Shariah Compliant Asset Allocation Fund w.e.f September 21, 2016. The returns and the benchmark before September 21, 2016 were computed on the basis of investment objectives and policies before conversion and therefore do not offer a comparison. This is being reported for the Investor information only

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.

LAKSON OUTLOOK

AM2+ by PACRA (15.05.2017)

FY17 - YTD June-17 2 Months 3 Months 6 Months 12 Months CY17-YTD 3 Years 5 Years Since Inception

1%

Top 10 Equity Holdings (%age of total assets) Securities

Dealing Days Cut-Off Time Asset Manager Rating Risk Profile

Open-End Shariah Compliant Asset Allocation Fund 178 101.5686 Forward Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 10% of the gross earnings of the Scheme, calculated on a daily basis. The fee is subject to a minimum of 1% and maximum of 2% of the average annual net assets of the Scheme. Current 1.15% 2.50% None October 11, 2011 Weighted average daily return of KMI30 Index, 6M deposit rates of three A rated Islamic Banks or Islamic windows of Conventional Banks and MSCI Emerging Markets Islamic Index based on the Scheme's actual proportion in the equity, debt and emerging market securities Mon-Fri 4:00 PM

149.00 139.00 129.00 119.00 109.00 99.00 Oct-12

May-13

Dec-13

Jul-14

Feb-15

Benchmark

Sep-15

Apr-16

Nov-16

Jun-17

LITF

INVESTMENT COMMITTEE Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA

Chairman

June 2017

11

Lakson Asset Allocation Developed Markets Fund MUFAP’s Recommended Format Investment Objective

FUND FACTS

The investment objective of the Lakson Asset Allocation Developed Markets Fund is to provide long-term capital appreciation by investing in a mix of domestic debt and developed markets securities.

Performance Review

SWWF Disclosure

During the month of June 2017 the Lakson Asset Allocation Developed Markets Fund generated an absolute return of -0.03% against the benchmark return of 0.43%. The fund has underperformed the benchmark by -0.46% during the month of June 2017. Allocation has been taken in T bills (35%), PIBs (19%) and Developed Market Equities (30%). Exposure in equities has been focused on US indices which offer a superior risk/return profile to other Developed Markets.

As of June 30th, 2017 the LAADMF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 0.54 million. If the same were not made the NAV per unit of the LAADMF would be higher by PKR 0.2828. If the LAADMF would not have made the SWWF provisions during FY17, the year to date return of the LAADMF for FY17 would be higher by 0.24%. For details investors are advised to read the latest Financial Statements of the LAADMF.

Fund Type Category Net Assets (PKR Mil.) NAV (30.06.2017) Pricing Mechanism Trustee Auditor Management Fee

Front End Load Back End Load Launch Date Benchmark

Total Expense Ratio (TER) 2.54% (This is inclusive of 0.41% representing Government levies and SECP Fees) YTD 2.54% (This is inclusive of 0.41% representing Government levies and SECP Fees) 16%

Asset Allocation (% of Total Assets) Apr-17 May-17 Jun-17

4%

1%

35%

Asset Allocation 30%

T-Bill PIBs Equities Others Cash

19%

Developed Markets Equities (Jun-17) QQQ ETF % of Asset Apple Inc 11.56% Microsoft Corp 8.23% Amazon.com Inc 7.17% Facebook Inc 5.47% Alphabet Inc 4.89% Alphabet Inc 4.29% Comcast Corp 2.81% Intel Corp 2.46% Cisco Systems Inc 2.39% Amgen Inc 1.96% QQQ ETF (As of Jun-17) Country

T-Bills

41%

48%

35%

PIBs

19%

18%

19%

Developed Markets (DM) Equities

36%

30%

Others

1%

1%

1%

Cash

3%

3%

16%

Vanguard S&P 500 Apple Inc Microsoft Corp Amazon.com Inc Facebook Inc Johnson & Johnson Exxon Mobil Corp Berkshire Hathaway Inc JPMorgan Chase & Co Alphabet Inc Alphabet Inc

30%

% of Assets 3.85% 2.60% 1.90% 1.72% 1.67% 1.61% 1.43% 1.41% 1.41% 1.38%

Dealing Days Cut-Off Time Asset Manager Rating Risk Profile

PERFORMANCE Benchmark 9.09% 0.43% 1.37% 2.12% 5.12% 9.09% 5.12% 17.60% 49.46% 65.39%

*The benchmark of the Fund was changed in September 2016.

LAADMF vs. Benchmark 179.00 169.00 159.00 149.00

Weight

Weight

United States

96.48%

United States

97.48%

China

2.06%

Ireland

1.01%

109.00

United Kingdom

0.65%

Switzerland

0.51%

99.00

Isreal

0.28%

United Kingdom

0.50%

Bermuda

0.06%

139.00 129.00 119.00

Oct-12

May-13

Dec-13

Jul-14

Benchmark

Feb-15

Sep-15

Apr-16

Nov-16

Jun-17

LAADMF

INVESTMENT COMMITTEE

Disclosures 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.

LAKSON OUTLOOK

LAADMF 9.01% -0.03% 0.93% 1.74% 5.77% 9.01% 5.77% 26.9% 53.7% 63.6%

FY17 - YTD June-17 2 Months 3 Months 6 Months 12 Months CY17-YTD 3 Years 5 Years Since Inception

Vanguard S&P 500 (As of Jun-17) Sector

Leverage as on June 30th, 2017 Non Performing Assets

Open-End Asset Allocation Fund 227 118.9544 Forward Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 15% of the gross earnings of the Scheme, calculated on a daily basis. The fee is subject to a minimum of 1.25% and maximum of 2% of the average annual net assets of the Scheme. Current - 1.55% 2.50% None October 11, 2011 Weighted average daily return of 6M KIBOR and the MSCI World Index based on the Scheme's actual proportion in the debt securities and developed market securities Mon-Fri 4:00 PM AM2+ by PACRA (15.05.2017) Medium Risk

Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA

Chairman

June 2017

12

Powershare 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.

LAKSON OUTLOOK

June 2017

13

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

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

LAKSON MONEY M A R K ET FU N D ( L M M F )

Fund

11.19%

8.76%

7.90%

8.57%

5.60%

Benchmark

11.31%

9.14%

8.50%

8.45%

5.61%

LAKSON INCOME FUND (LIF)

Fund

11.57%

9.21%

8.38%

14.17%

8.57%

Benchmark

8.86%

9.17%

8.31%

12.64%

7.16%

LAKSON EQUITY FUND (LEF)

Fund

9.74%

40.02%

32.15%

23.93%

10.60%

Benchmark

10.45%

52.20%

25.96%

5.67%

0.37%

LAKSON ASSET A L L O C AT I O N D E V E L O P E D M A R KET S FU N D ( L A A D M F )

Fund

6.42%

10.52%

9.64%

7.76%

8.00%

Benchmark

10.63%

13.45%

12.94%

5.34%

2.33%

L A K S O N TA C T I C A L F U N D ( LT F ) *

Fund

5.85%

3.44%

4.24%

8.86%

6.85%

Benchmark

7.25%

7.89%

7.47%

-1.02%

3.18%

LAKSON ISLAMIC TA C T I C A L FUND (LITF)**

Fund

6.23%

5.46%

6.40%

4.96%

4.42%

Benchmark

9.82%

8.50%

10.01%

3.36%

0.05%

*Formerly: Lakson Asset Allocation Global Commodities Fund (LAAGCF) **Formerly: Lakson Asset Allocation Emerging Markets Fund (LAAEMF)

Since Inception Absolute Returns FY 2010 FY 2011 LMMF vs BENCHMARK

LIF vs BENCHMARK

LEF vs BENCHMARK

LAADMF vs BENCHMARK

LT F v s B E N C H M A R K

LITF vs BENCHMARK

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

Fund

6.77%

19.25%

32.63%

44.25%

55.65%

68.98%

78.45%

Benchmark

6.66%

19.21%

32.73%

44.86%

57.17%

70.45%

80.01%

Fund

7.16%

19.49%

33.35%

45.63%

57.84%

80.20%

95.65%

Benchmark

4.59%

15.90%

26.20%

37.77%

49.22%

68.08%

80.12%

Fund

-0.66%

19.65%

31.30%

83.84%

142.95%

201.09%

233.00%

Benchmark

7.32%

37.94%

52.35%

107.12%

160.89%

175.69%

126.44%

Fund

6.42%

17.62%

28.95%

38.96%

50.08%

Benchmark

10.63%

25.51%

41.75%

49.33%

52.81%

Fund

5.85%

9.49%

14.13%

24.25%

32.76%

Benchmark

7.25%

15.71%

24.36%

23.09%

27.00%

Fund

6.23%

12.03%

19.20%

25.11%

30.64%

Benchmark

9.82%

19.15%

31.08%

35.49%

35.56%

Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved.

LAKSON OUTLOOK

June 2017

14

Mutual Funds Performance Comparison Annualized Returns (%): Positions as of July 06, 2017 IN COM E FUN DS ABL Income Fund Atlas Income Fund Faysal Financial Sector Opportunity Fund Faysal Savings Growth Fund First Habib Income Fund HBL Income Fund JS Income Fund Lakson Income Fund MCB DCF Income Fund NAFA Financial Sector Income Fund NAFA Income Fund NAFA Income Opportunity Fund NAFA Savings Plus Fund NIT - Income Fund Pakistan Income Fund UBL Government Securities Fund UBL Income Opportunity Fund

30 DAYS

90 DAYS

180 DAYS

270 DAYS

365 DAYS

6.80 6.36 4.81 5.45 7.29 5.07 7.34 18.25 5.36 6.27 6.32 4.41 6.30 4.68 5.14 4.93 4.03

5.28 5.50 4.74 5.26 4.91 4.70 6.04 9.92 5.46 5.88 5.62 5.00 5.49 4.91 5.76 4.89 3.93

6.76 5.42 7.26 8.67 7.47 5.32 5.64 8.08 8.22 10.46 6.12 5.61 10.53 6.14 8.99 4.85 4.45

5.98 5.54 5.89 6.41 6.96 5.11 6.04 7.42 7.11 8.92 5.97 5.57 8.89 5.70 7.69 4.63 4.53

6.25 5.48 5.58 5.93 6.33 4.64 7.23 7.15 6.79 N/A N/A N/A N/A 5.61 7.15 4.64 4.9

4.81 12.68 6.19 5.74 8.67 4.41 16.66 4.85 11.89 6.63 6.09 5.28

4.42 6.25 4.67 4.37 5.88 4.07 7.20 3.83 5.81 5.44 5.16 4.73

5.02 4.07 4.99 6.24 5.48 4.63 2.84 4.99 5.72 5.13 6.02 5.61

5.51 5.26 5.33 5.52 6.07 4.44 3.19 4.90 6.53 5.23 5.94 5.29

5.75 5.48 5.31 5.56 5.97 5.45 3.56 5.27 6.46 N/A N/A 6.41

30 DAYS

90 DAYS

180 DAYS

270 DAYS

365 DAYS

17.95 7.68 0.57 3.44 8.21 7.04 56.94 7.42 10.10 5.87 9.02 5.48 9.68 8.90 4.55 9.03 5.04 13.91 4.08 5.80 5.52

9.31 5.39 5.42 4.21 5.90 5.80 22.22 5.37 6.70 5.26 6.36 5.06 6.69 6.48 4.99 6.55 5.07 8.05 4.36 5.36 4.54

11.61 8.01 8.42 5.71 11.78 6.78 13.58 5.11 8.82 7.69 8.02 6.06 8.00 8.75 9.75 7.03 4.77 10.98 6.90 7.26 6.05

9.52 6.84 7.31 5.56 9.64 6.36 10.86 4.82 7.60 6.95 7.05 5.80 7.23 7.71 8.32 6.63 4.91 9.19 6.41 6.54 5.50

8.56 6.33 6.86 5.67 8.56 6.14 9.44 4.59 7.12 6.57 6.47 5.74 6.79 7.1 N/A N/A 4.95 8.24 6.1 6.22 5.4

3.73 3.75 5.04

4.08 3.63 4.24

4.39 4.11 7.39

4.61 4.11 6.48

4.69 4.18 6.07

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 Meezan Islamic Income Fund Meezan Sovereign Fund NAFA Islamic Income Fund NAFA Riba Free Savings Fund Pak Oman Advantage Islamic Income Fund MONEY MARKET FUNDS ABL Cash Fund AKD Cash Fund Alfalah GHP Cash Fund Alfalah GHP Money Market Fund Askari Sovereign Cash Fund Atlas Money Market Fund Atlas Sovereign Liquid Fund BMA Empress Cash Fund Faysal Money Market Fund First Habib Cash Fund HBL Money Market Fund JS Cash Fund Lakson Money Market Fund MCB Cash Management Optimizer NAFA Government Securities Liquid Fund NAFA Money Market Fund NIT Government Treasury Fund Pakistan Cash Management 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 Note: NA - Not Available. Source: MUFAP.

LAKSON OUTLOOK

June 2017

15

Mutual Funds Performance Comparison Annualized Returns (%): Positions as of July 06, 2017 AGG RESSI VE IN CO ME FU NDS

30 DAYS

90 DAYS

180 DAYS

2 70 DAYS

365 DAYS

AKD Aggressive Income Fund Alfalah GHP Income Multiplier Fund Askari High Yield Scheme BMA Chundrigar Road Savings Fund Faysal Income & Growth Fund Pakistan Income Enhancement Fund UBL Growth & Income Fund

6.55 6.47 4.72 6.60 6.14 5.74 4.69

5.01 5.53 5.22 5.50 5.34 5.49 6.19

6.15 6.19 5.87 5.69 6.70 6.40 5.77

5.93 6.01 5.03 5.58 4.56 5.62 4.92

6.42 5.86 5.09 5.52 4.49 5.22 7.53

4.40

4.37

4.41

4.34

4.7

30 DAYS

90 DAYS

180 DAYS

270 DAYS

365 DAYS

(10.38) (13.53) (9.80) (9.44) (8.96) (7.29) (13.58) (10.79) (10.52) (9.56) (9.47) (10.60) (9.57) (10.08) (9.52) (5.84) (9.53) (10.26) (11.25) (9.12)

(3.36) (7.56) (2.12) (2.17) (5.11) (0.51) (10.46) (7.20) (3.29) (2.75) (2.43) (2.92) 2.10 (3.55) (2.94) (3.60) (3.18) (2.66) (5.40) (1.33)

(4.00) (10.05) (2.55) (2.65) (5.10) (0.22) (10.15) (8.54) (2.28) (4.01) (5.01) (2.13) 2.83 (3.67) (4.66) (3.34) (4.68) (3.25) (9.83) (0.36)

14.95 0.91 15.72 16.01 10.51 20.77 2.66 7.98 12.58 13.22 11.46 17.78 18.26 8.96 12.59 13.95 13.19 13.92 7.81 15.67

28.23 30.11 23.72 23.61 15.53 33.73 12.27 15.6 29.27 22.61 19.56 N/A N/A N/A 21.9 25.68 N/A 30.88 17.8 25.68

(10.52) (10.27) (10.33) (9.83) (10.00) (8.70) (10.25) (11.88)

(3.32) (4.03) (5.24) (2.04) (3.45) 0.39 (5.99) (6.77)

(2.52) (3.28) (6.72) (2.74) (5.29) (1.13) (7.11) (10.47)

16.40 13.76 10.88 16.76 11.42 15.75 10.25 5.14

27.12 22.49 18.69 20.85 20.84 N/A 18.58 11.78

30 DAYS

90 DAYS

180 DAYS

270 DAYS

365 DAYS

(9.54) (6.94) (6.51) (2.94) (8.39)

(4.43) (1.02) (1.33) (0.91) (0.52)

(2.49) (1.78) (0.51) 0.37 0.35

6.99 11.14 12.83 15.02 10.06

11.25 15.54 N/A 23.26 20.38

(6.31)

(3.07)

(3.43)

7.72

12.46

ISLAMIC AGGR ESSI VE INC OM E FUN DS Al Ameen Islamic Aggressive Income Fund

EQUITY FUNDS ABL Stock Fund AKD Opportunity Fund Alfalah GHP Alpha Fund Alfalah GHP Stock Fund Askari Equity Fund Atlas Stock Market Fund First Capital Mutual Fund First Habib Stock Fund HBL Energy Fund HBL Equity Fund HBL Stock Fund JS Growth Fund JS Large Cap Fund JS Value Fund Lakson Equity Fund MCB Pakistan Stock Market Fund NAFA Stock Fund National Investment Unit Trust PIML Value Equity Fund UBL Stock Advantage Fund ISLAMIC EQUITY FUNDS ABL Islamic Stock Fund Al Ameen Islamic Dedicated Equity Fund Al Meezan Mutual Fund Alfalah GHP Islamic Stock Fund HBL Islamic Equity Fund JS Islamic Fund Meezan Islamic Fund PIML Islamic Equity Fund 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 Meezan Balanced Fund

Note: NA - Not Available. Source: MUFAP.

LAKSON OUTLOOK

June 2017

16

Mutual Funds Performance Comparison Annualized Returns (%): Positions as of July 06, 2017 ASSET A LLO CATIO N FUN DS Alfalah GHP Value Fund Askari Asset Allocation Fund Faysal Asset Allocation Fund Lakson Asset Allocation Developed Markets Fund Lakson Tactical Fund MCB Pakistan Asset Allocation Fund MCB Pakistan Frequent Payout Fund NAFA Asset Allocation Fund Pak Oman Advantage Asset Allocation Fund UBL Asset Allocation Fund

30 DAYS

90 DAYS

180 DAYS

270 DAYS

365 DAYS

(8.38) (6.92) (15.54) (0.52) (3.31) (0.90) 0.31 (6.03) (8.04) (3.22)

(1.82) (4.07) (11.53) 1.64 1.50 (1.11) 1.45 (0.66) (5.13) 0.47

(3.56) (2.67) (8.24) 4.98 1.38 (3.68) 1.19 0.05 (8.74) 1.62

12.27 7.64 (4.49) 6.38 10.53 2.41 3.85 13.46 6.08 9.12

21.55 10.96 1.15 8.59 14.83 8.34 5.49 N/A 15.69 12.91

(3.30) (6.15) (3.93) (9.65) (6.44) (9.97)

(0.33) (3.51) 0.10 (5.32) (2.32) (6.71)

0.89 (2.17) (0.10) (6.35) (2.80) (9.90)

9.24 8.83 6.92 10.26 9.27 5.01

13.18 13.34 7.34 14.4 N/A 13.23

30 DAYS

90 DAYS

180 DAYS

270 DAYS

365 DAYS

(0.60) (1.05)

0.62 1.09

1.65 N/A

3.48 N/A

N/A N/A

(0.92) (0.68)

1.94 0.34

4.57 2.13

13.39 13.60

N/A N/A

ISLAMIC ASSET ALLOCATIO N FU ND S Al Ameen Islamic Asset Allocation Fund Askari Islamic Asset Allocation Fund Lakson Islamic Tactical Fund Meezan Asset Allocation Fund NAFA Islamic Asset Allocation Fund Pak Oman Islamic Asset Allocation Fund CAPITAL PROTECTED FUNDS JS Capital Protected Fund V UBL Capital Protected Fund III ISLAMIC CAPITAL PROTECTED FUNDS NAFA Islamic Principal Protected Fund I NAFA Islamic Principal Protected Fund II

Note: NA - Not Available. Source: MUFAP.

LAKSON OUTLOOK

June 2017

17

Markets Information Equities TOTAL RETURN IN PKR AND %

TOTAL RETURN IN USD AND %

MA RKETS

IND EX

YT D

3M

1Y

5Y

YT D

3M

1Y

5Y

World

MSCI All Country World Index

10.5%

3.8%

16.7%

64.9%

10.5%

3.8%

16.7%

49.3%

Developed

MSCI World Index

9.6%

3.6%

16.1%

71.6%

9.6%

3.6%

16.1%

55.3%

Emerging

MSCI Emerging Markets Index

17.6%

5.8%

21.6%

19.5%

17.6%

5.8%

21.6%

8.2%

Europe

MSCI Europe Index

13.7%

6.5%

18.5%

47.4%

13.7%

6.5%

18.5%

33.4%

China

CSI 300

10.8%

6.2%

16.3%

64.6%

10.8%

6.2%

16.3%

49.0%

Dubai

DFM

0.0%

0.0%

0.0%

285.2%

0.0%

0.0%

0.0%

248.7%

India

BSE Sensex 30

15.9%

4.2%

14.3%

95.6%

15.9%

4.2%

14.3%

77.0%

Japan

Nikkei 225

5.8%

6.9%

29.8%

148.0%

5.8%

6.9%

29.8%

124.5%

Malaysia

FTSE Bursa

7.9%

1.8%

7.1%

22.4%

7.9%

1.8%

7.1%

10.8%

Pakistan

KSE 100

-2.3%

-3.0%

23.6%

238.5%

-2.3%

-3.0%

23.6%

206.4%

Sri Lanka

Colombo All Share

7.6%

10.6%

6.7%

48.6%

7.6%

10.6%

6.7%

34.5%

UK

FTSE 100

2.9%

0.4%

13.0%

45.7%

2.9%

0.4%

13.0%

31.9%

US

DJIA

7.7%

3.0%

18.7%

82.6%

7.7%

3.0%

18.7%

65.3%

US

S&P 500

8.1%

2.4%

15.3%

96.2%

8.1%

2.4%

15.3%

77.6%

US

NASDAQ 100

16.2%

4.0%

28.0%

138.7%

16.2%

4.0%

28.0%

116.1%

Germany

DAX Index

8.1%

0.8%

28.3%

113.8%

8.1%

0.8%

28.3%

93.5%

CANADA

TSX 300 Composite Index

-0.5%

-2.2%

8.2%

44.9%

-0.5%

-2.2%

8.2%

31.2%

France

CAC - 40

6.0%

0.6%

21.6%

78.1%

6.0%

0.6%

21.6%

61.2%

Brazil

Sao Paulo SE Bovespa Index

3.3%

-4.2%

20.8%

26.5%

3.3%

-4.2%

20.8%

14.5%

Korea

Korea SE Kospi

18.2%

10.9%

21.6%

42.7%

18.2%

10.9%

21.6%

29.2%

Taiwan

Taiwan SE Weighted Index

12.6%

6.2%

20.3%

57.8%

12.6%

6.2%

20.3%

42.8%

Automobile and Parts

15.2%

10.9%

175.3% 1287.5% 15.2%

10.9%

175.3%

1156.1%

Banks

-5.9%

-2.0%

20.8%

120.1%

-5.9%

-2.0%

20.8%

99.2%

Chemicals

14.7%

1.3%

-53.1%

-9.1%

14.7%

1.3%

-53.1%

-17.7%

Construction and Materials

-12.0%

-12.4%

13.9%

562.6%

-12.0%

-12.4%

13.9%

499.8%

Electricity

41.5%

43.6%

47.0%

311.3%

41.5%

43.6%

47.0%

272.4%

Food Producers

-3.6%

-0.2%

4.2%

83.8%

-3.6%

-0.2%

4.2%

66.4%

Oil and Gas

-8.6%

-1.5%

13.8%

36.5%

-8.6%

-1.5%

13.8%

23.6%

Personal Goods

-7.0%

0.9%

-2.9%

143.7%

-7.0%

0.9%

-2.9%

120.6%

-30%

-5%

20%

45%

70%

KSE SECTORS

YTD 3-mo

Fixed Income

MONEY MARKET

CURRENT INTERBANK RATES

HISTORIC 6M INTERBANK RATES

1M

3M

6M

12 M

Y TD

3M

1Y

5Y

China

SHIBOR

4.50%

4.52%

4.48%

4.42%

NA

4.41%

3.57%

3.35%

Dubai

UAE IBOR

1.24%

1.52%

1.75%

2.13%

NA

1.70%

1.60%

1.37%

India

MIBOR

7.68%

7.80%

NA

NA

NA

NA

NA

NA

Japan

TIBOR

0.03%

0.06%

0.11%

0.13%

0.11%

0.11%

0.11%

0.16%

Malaysia

KLIBOR

3.18%

3.43%

3.55%

3.63%

3.54%

3.54%

3.54%

3.69%

Pakistan

KIBOR

6.25%

6.13%

6.14%

6.46%

6.14%

6.16%

6.10%

6.32%

Sri Lanka

SLIBOR

10.58%

11.30%

12.00%

12.47%

11.75%

11.97%

11.53%

9.91%

UK

LIBOR

0.25%

0.30%

0.45%

0.66%

0.49%

0.46%

0.52%

0.63%

US

SIBOR

1.23%

1.30%

1.45%

1.74%

1.40%

1.42%

1.30%

1.01%

Govt. Securities vs. KIBOR 8.00% 7.75% 7.50% 7.25% 7.00% 6.75% 6.50% 6.25% 6.00% 5.75%

Interbank Jun 17

5.50% 5.25% 5.00% 1W

CURRENT MARKET YIELDS

GOVERNMENT SECURITIES

HISTORIC 12M PAPER RATES

1M

3M

6M

1Y

2Y

12M Yields of Government Securities China

3M

12 M

5Y

10 Y

Y TD

3M

1Y

2Y

China

2.63%

3.43%

3.47%

3.55%

3.09%

3.34%

2.66%

2.51%

India

India

8.31%

6.38%

#N/A

6.51%

6.28%

6.37%

6.39%

6.80%

Japan

Japan

-0.09%

-0.10%

-0.08%

0.06%

-0.24%

-0.14%

-0.27%

-0.22%

Malaysia

3.07%

3.13%

3.60%

3.90%

3.15%

3.17%

2.94%

2.92%

Pakistan

5.88%

5.96%

7.05%

8.17%

5.94%

5.96%

5.90%

6.12%

Pakistan

Sri Lanka

11.30%

12.47%

NA

NA

12.23%

12.45%

12.02%

10.34%

Sri Lanka

UK

0.15%

0.33%

0.69%

1.25%

0.11%

0.13%

0.12%

0.28%

UK

US

1.02%

1.22%

1.85%

2.27%

0.99%

1.11%

0.81%

0.64%

Malaysia

US 0%

LAKSON OUTLOOK

Govt. Sec. Jun 17

3%

6%

9%

12%

June 2017

18

Markets Information Commodities CURRENT PRICE

TOTAL RETURN

COMMODITY

UN IT

YT D

3M

1Y

DB Commodity Index

USD Excess Return

-10.2%

-6.7%

-6.9%

-41.9%

5Y 295.5

S&P Global Commodity Index

USD Total Return

-11.9%

-7.3%

-10.7%

-53.0%

2128.7

Dow Jones UBS Commodity Index

USD Total Return

-6.7%

-4.5%

-7.9%

-39.4%

Coal

USD/Tonne

-8.4%

0.2%

42.1%

N.A

165.1 81.0

Copper

USc/lbs

7.1%

1.1%

22.3%

-23.1%

268.3

Cotton

USc/lbs

4.7%

-4.3%

17.8%

2.5%

74.0

Gold

USD/t oz.

8.2%

-0.1%

-5.7%

-22.3%

1245.8

Palm Oil

USD/Tonne

-15.2%

-5.0%

1.2%

-35.8%

608.3

Sugar

USc/lbs

-31.8%

-20.6%

-34.0%

-39.0%

13.3

Wheat

USD/Bushel (60Ibs)

17.7%

12.6%

11.4%

-35.0%

4.8

WTI

USD/bbl

-16.4%

-11.2%

-7.0%

-47.1%

44.9

Brent Crude

USD/bbl

-16.5%

-10.2%

-4.5%

-51.5%

47.4

Heating Oil

USd/Gallon

-15.2%

-8.1%

-2.6%

N.A

144.6

RBOB Gasoline

USD/Gallon

-10.8%

-12.6%

-1.1%

-45.5%

1.5

Natural Gas

USD/MMBTU

-18.3%

-4.6%

4.0%

7.7%

3.0

Silver

USD/t Ozs

3.7%

-9.1%

-10.7%

-39.9%

16.6

140

DBCI

SPGSCI

DJUBS

130 120 110 100 90 80 Jun-16

Aug-16

Oct-16

Dec-16

Feb-17

Apr-17

Jun-17

Currencies CURRENT EXCHANGE RATES

TOTAL RETURN

Y TD

3M

1Y

GBP

EUR

CAD

USD

170

5Y

Canadian Dollar

CAD

4.03%

2.58%

-0.39%

-13.22%

CAD - PKR

80.73

Euro

EUR

9.29%

7.40%

3.09%

3.09%

EUR - PKR

119.94

Indian Rupee

INR

5.05%

-0.46%

-7.74%

-20.96%

INR - PKR

0.94

Japanese Yen

JPY

5.05%

-0.46%

-7.74%

-20.96%

JPY - PKR

0.94

Pound Sterling

GBP

5.97%

3.72%

-2.14%

-8.14%

GBP - PKR

136.44

Singaporian Dollar

SGD

5.62%

1.49%

-2.11%

1.84%

SGD - PKR

76.13

US Dollar

USD

0.39%

-0.05%

0.02%

10.78%

USD - PKR

104.78

LAKSON OUTLOOK

190

150 130 110 90 70 Jun-16

Sep-16

Dec-16

Mar-17

Jun-17

June 2017

19

LAKSON OUTLOOK

June 2017

TRAN SAC T IO N L O C AT I ONS Islamabad 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 Mr. Haider Abbas 14 Ali Block, 1st Floor New Garden Town, Lahore. Tel: 042.591.1025/26 Faisalabad Mr. Shahbaz Choudhry - Branch Manager 1 st Floor, FM Plaza 15-D, Peoples Colony, Faisalabad Tel: 041.324.1704/07 Fax: 041.855.4453

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.

Sialkot Mr. Nisar Bhatti - Branch Manager 1 st Floor, Karim Plaza Iqbal Town, Defence Road, Sialkot Tel: 052.324.1704/07 Fax: 052.324.1703

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