lakson outlook march 2012(2)

March 2012 Lakson Outlook Economic and Markets Review FMR Lakson Money Market Fund FMR Lakson Income Fund FMR Lakson Eq...

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March 2012

Lakson Outlook Economic and Markets Review FMR Lakson Money Market Fund FMR Lakson Income Fund FMR Lakson Equity Fund FMR Lakson Asset Allocation Developed Markets Fund FMR Lakson Asset Allocation Emerging Markets Fund FMR Lakson Asset Allocation Global Commodities Fund Mutual Funds Performance Comparison Markets Information

Rated “AM3+” 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.

Dear Investors, Recently, Lakson Investments launched three internationally focused mutual funds; the Lakson Asset Allocation Developed Markets Fund (LAADMF), the Lakson Asset Allocation Emerging Markets Fund (LAAEMF), and the Lakson Asset Allocation Global Commodities Fund (LAAGCF). We launched these international funds to give Pakistani investors the opportunity to invest abroad, and benefit from the global economy. We are pleased to inform you that our international funds have taken the maximum US Dollar exposure and we have also made strategy adjustments in how we take market exposure. The investment objective of our international funds is to provide local investors global and domestic diversity through a single PKR based investment portfolio. The domestic component provides investors with long term capital protection; whereas the international portion aims to provide long term capital appreciation and a powerful currency hedge. This is especially important today, as over the last five years the PKR has devalued by an accumulative fifty percent against the USD. Thirty percent of total assets in each fund are in USD as of February 2012. Moreover, starting next month we will invest three percent of fund assets in select USD based Exchange Traded Funds ('ETF's) which track the funds' respective market indexes (MSCI World, MSCI Emerging Markets & DB Global Commodities Indices). Over the next ten months, the international component of each fund will be fully invested in international markets at their defined maximum asset allocation limit of thirty percent. Instead of investing the entire thirty percent at one go in international markets, Lakson Investments and our Board believes Dollar Cost Averaging ('DCA') to be a more efficient and prudent investment strategy. DCA implies investing a fixed, percentage of fund assets on a regular basis over a period of time. One of the biggest advantages of this strategy is that it takes emotions and market timing out of the investment equation and disciplines fund managers and investors to adhere to their long term investment strategy, especially when markets turn volatile. Therefore, given the relative uncertainly and added volatility of global markets, we are dollar averaging our international investments so that our funds and investors are not adversely affected by sudden movements. It is near impossible to time the market, and we believe averaging our way over the next ten months will be in the best interest of our investors. Lakson Investments recommends developed market equities, emerging market equities and global commodities as core component of an investor's portfolio. It is important to highlight that these markets have a very low historic correlation to our domestic equity market, and over the last five years the benchmark returns of the above mentioned international funds have significantly outperformed the KSE 100 index. Best wishes,

Babar Ali Lakhani Chief Executive Officer

Haider A. Gulfaraz Head of Business Development

Lakson Outlook - March 2012

Table of contents Economic & Markets Review

04 - 05

Lakson Money Market Fund

06

Lakson Income Fund

07

Lakson Equity Fund

08

Lakson Asset Allocation Developed Markets Fund

09

Lakson Asset Allocation Emerging Markets Fund

10

Lakson Asset Allocation Global Commodities Fund

11

Mutual Funds Performance Comparison

12 - 13

Markets Information

14 - 15

03

Lakson Outlook - March 2012

Economic & Markets Review - Pakistan Economic Review (Monetary and Fiscal) With monthly food and clothing prices becoming dearer by 1.54% MoM and 3.35% MoM respectively during Mar '12, Consumer Price Index ("CPI") edged up to 1.17% MoM. On YoY basis, the CPI rose at a relatively lower 10.79% YoY compared to 11.05% YoY hike in Feb '12, mainly due to the high base effect of the food basket. 'Transport' and 'Clothing' segments however continued to exert pressure on the CPI as they surged by 19.10% YoY and 16.60% YoY respectively. For the 9MFY12 period, the CPI averaged at 10.79% YoY versus 13.95% YoY during the same period last year. Further, as per the Pakistan Bureau of Statistics, power tariff hike of 38% announced last month has not been incorporated while calculating the CPI. Amidst deteriorating trade and services' accounts and sluggish foreign inflows, current account deficit stood at USD 260 million during Feb '12, taking the aggregate figure for the 8MFY12 to USD 2,952 million compared to a deficit of a mere USD 194 million posted in the 8MFY11. Remittances, sustaining the double digit growth of 23% YoY during the 8MFY12 to stand at USD 8,953 million, however continued to contain the overall current account deficit. Thus with no major scheduled debt repayment due in the outgoing month, the country's Forex reserves remained stable at USD 16.4 billion (up till March 23, 2012) with the Pak Rupee also closing relatively flat MoM at PKR 90.65 per US Dollar. On the positive side, the domestic economy showed improvement, with Large Scale Manufacturing ("LSM") posting a gain of 8.13% MoM and 2.33% YoY during Jan '12. Resultantly, LSM growth for 7MFY12 stood at 1.26% YoY compared to a growth of 2.02% YoY recorded in the same period last year. Fixed Income Review The money market eased off slightly during Mar '12 as the overnight repo rates went down to 11.17% as against 11.55% in the previous month. The government raised PKR 179 billion in the two T-bill auctions held during the month, much lower than the targeted amount of PKR 650 billion, as the participation was seen at higher cut offs. In the PIB auction, the SBP accepted PKR 24.2 billion against participation of PKR 31.8 billion. Further upward adjustment was witnessed in 3M, 6M and 12M T-bills average yields, which increased by 8bps, 10bps and 7bps respectively during the month, as the market is expecting status quo in the Discount Rate in the Monetary Policy scheduled on April 13, 2012. With Net Foreign Assets ("NFA") continuously in the negative zone, the M2 growth stood at 7.6% up till March 16, 2012 versus 9.4% in the same period last year, despite Net Domestic Assets ("NDA") growing by a hefty 12.4%. Equity Market Review Excitement in the Pakistan equity markets continued as bumper result announcements and optimism on tax relaxations allowed the KSE 100 to gain 6.8% during Mar '12. Return for 1QCY12 stood at 21.3%, the highest gain in the last 10 quarters, with the benchmark index outpacing all regional markets. Trading activity surged to USD 78 million, up 26% MoM and 42% YoY. Backed by an uptick in speculative activity in small capped stocks, average daily traded volume posted a sharper rise of 82% MoM to 336 million shares, the highest average since Oct '07. Thus, contrary to the broad based rally seen in Feb '12, the gains in March were skewed towards second and third tier cement and financial sectors' stocks. Foreign investors too turned optimistic on Pakistan equities as the outgoing month recorded second consecutive month of net inflow. Net FPI stood at USD 8.4 million, taking 1QCY12 inflows to USD 16.1 million. Amongst major blue chips, Hub Power Company ("HUBC") stood out in the news flow as Islamabad High Court ruled against its appeal on a PKR 1.9 billion tax dispute. On the positive side, the long standing uncertainty with regards to prospective share sale from sponsors of the company was settled as International Power finally announced its Pakistan based investment reshuffling and offloaded its stake to a consortium of leading local business groups.

Yield Curve

15.0% 14.0% 13.0% 12.0% 11.0% 1W

2M

6M

2Y

5Y

29-Feb-12

8Y

15Y

30-Mar-12

USD/PKR vs. Forex Reserves 92.0

17.0

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

16.8

91.3 16.5 90.5

16.3 16.0

89.8 15.8 89.0 1-Mar

15.5 8-Mar

15-Mar

22-Mar

29-Mar

Market Rates 13.0% 12.0% 11.0% 10.0% 9.0% 8.0% 1-Mar

6M KIBOR

11-Mar

21-Mar

O/N Repo Rate

6M T-Bill

Large Scale Manufacturing ("LSM") posted a gain of 8.13% MoM and 2.33% YoY during January '12.

DISCLAIMER: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily an indication of future results.

04

Lakson Outlook - March 2012

Economic & Markets Review - International Developed Markets Global equities continued to rally as MSCI World edged up 1.0% during Mar '12, taking 1QCY12 gains to 10.9%. The largest impetus was provided by the US equities, with S&P 500 gaining 3.1% during the outgoing month and 12.0% during 1QCY12 - the highest first quarter gains since 1998. Economic data emanating from the US remained upbeat, reporting the best six-month streak of job growth since 2006 and manufacturing growth of 2.2% in Feb '12. Services sector also stood strong as the Institute for Supply Management's services index rose to 57.3, the highest level since Feb '11. The services sector accounts for about two-thirds of US economic activity where a reading above 50 indicates expansion. US now holds the current distinction of being the only major economy of the world whose growth rate is poised to outpace that of last year. In Europe, the debt turmoil eased off significantly after the European Central Bank's liquidity support reopened financial markets and European Union leaders managed to seal a second Greek bailout package. German economy fared the strongest as its unemployment rate fell to two-decade low of 6.7%, with the government upgrading its 2012 GDP growth forecast to 1.0% amidst projected decline of 0.3% for the Euro region. On the flip side, Spain remained the weak link as the non-performing loans in the economy surged to 7.9%, the highest level since Aug '94. The Spanish government later announced spending cuts and increased taxes to curtail fiscal deficit to 5.3% of GDP in 2012, compared to 8.5% in 2011. Amongst other major developed markets, Japan stood out as it reported an unexpected trade account surplus. The Japanese government had earlier announced massive liquidity injections of JPY 1 trillion (USD 12 billion) which allowed the Yen to depreciate by 7.8% against the US Dollar during the 1QCY12. Emerging Markets The benchmark MSCI Emerging Market index declined 3.5% during Mar '12 as increased signs of economic slowdown in China led to MoM decline of 6.8% in the Chinese benchmark index, CSI 300. Overall, the MSCI Emerging Market index still managed to post robust gains of 13.6% during 1QCY12, marking the strongest first quarter in 20 years. Chinese government cut its 2012 growth target to 7.5% from a long standing goal of 8% and pledged to undertake necessary economic and social reforms in order to expand consumer demand. While a growth rate of 7.5% is to be the lowest since 1990, investors continued to be more fearful of a "hard landing" in the world's second largest economy. In India, the Reserve Bank of India maintained its interest rates for the third consecutive meeting after inflation accelerated; however, the central bank reiterated that future actions will be towards lowering rates as economic growth slowed for the fourth straight quarter. Brazil was also recorded to have grown at just 2.7% in 2011, its slowest pace since 2003. However, with fiscal deficits under control, most emerging economies present a far greater flexibility to counteract slowing export markets. Brazil, for example, surprised the market with an unexpected rate cut of 75 bps to 9.75%. Peripheral emerging markets, however, posted a much better economic performance with countries such as Indonesia and Philippines poised to get the highest credit ratings since 1997 amidst record low sovereign credit yields. Commodities Commodity markets continued to underperform the broader equity markets as slowdown in emerging economies, particularly China and India, increased fears of tapered demand in 2012. DB Commodity index declined 2.1% during Mar '12, trimming 1QCY12 gains to just 7.0%. Amongst major commodities, crude oil eased with WTI Nymex dropping 3.8% MoM on the back of climbing inventories in the US, discussions on release from strategic oil reserves and Saudi Oil minister's comments. According to the US Energy Department, inventories in the US climbed the most in 20 months, with stockpiles now standing at 353 million barrels, the highest level since Aug '11. During the month, the Saudi Oil minister, Ali al-Naimi, also claimed that the world's largest crude exporter has the capacity to increase production by as much as 25% if the situation in the Strait of Hormuz deteriorates any further. Gold too declined 2.5% during Mar '12, trimming CY12 gains to 6.5% as the improvement in US and global growth prospects led to declining investor interest in perceived "safe havens".

05

Performance of Equities & Commodities 140%

MSCI World Index DB Commodity Index

MSCI EM Index

120%

100%

80%

60% Apr-11

Jun-11

Aug-11

Oct-11

Dec-11

Feb-12

Valuations of International Markets 16

12

8

4

DM

US

UK

Japan Canada

EM

Brazil Russia India

China

P/E Multiple

Economic data emanating from the US remained upbeat, reporting the best six-month streak of job growth since 2006 and manufacturing growth of 2.2% in February '12.

Lakson Outlook - March 2012

Lakson Money Market Fund Investment Objective The investment objective of the Lakson Money Market Fund is to provide stable and competitive returns in line with the money markets, exhibiting low volatility consistent with capital preservation by constructing a liquid portfolio of low risk short term investments. Performance Review The Lakson Money Market Fund ("LMMF") yielded an annualized return of 10.35% in March '12 compared to the Benchmark (average return of all money market funds) return of 10.54% p.a. The LMMF underperformed the average money market fund by 19bps. The LMMF continues to provide liability related to the Workers Welfare Fund ("WWF") that has a negative impact of approximately 20bps in monthly annualized performance. The yield since inception (13th November 2009) of the LMMF stood at 11.37% p.a. compared to a 11.42% p.a. return for the average money market fund. As of March 31, 2012, the Weighted Average Maturity ("WAM") of the LMMF portfolio was 52 days compared to 48 days at the start of the month. The LMMF reduced exposure in T-Bills to 75% and increased exposure in TDRs to 25% as the banks were offering better rates on TDRs due to quarter end. The portfolio of the LMMF still offers very high liquidity and as on March 31, 2012, 75% portfolio of the LMMF comprised of instruments that can be liquidated within six (6) business days keeping in view the present market situation. The Standard Deviation, a measure of the volatility of the fund's performance, of monthly returns of the LMMF since inception is just 1.02 %.

Credit Split

Asset Allocation AA 25%

TDRs 25%

T-Bills 75%

AAA 75%

Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (31.03.2012) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark Dealing Days Cut-Off Time Fund Rating Asset Manager Rating

Open-End Money Market Fund 5,845 100.0825 Previous Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 1.25% None None November 13, 2009 Average of returns earned by Money Market Funds in the industry. Mon - Fri 04:00 PM 'AA' by PACRA AM3+

Performance Morningstar March-12 2 Months 3 Months 6 Months 12 Months CY12 - YTD FY12 - YTD Since Inception

LMMF 10.35% 10.16% 10.51% 11.01% 11.59% 10.51% 11.42% 11.37%

Benchmark 10.54% 10.36% 10.65% 11.14% 11.72% 10.65% 11.57% 11.42%

Simple annualized March-12 2 Months 3 Months 6 Months 12 Months CY12 - YTD FY12 - YTD Since Inception

LMMF 9.89% 9.75% 10.12% 10.72% 11.59% 10.12% 11.26% 12.27%

Benchmark 10.07% 9.94% 10.25% 10.84% 11.72% 10.25% 11.41% 12.33%

LMMF vs. Benchmark 130

Asset Allocation Instruments

Jan-12

Government Securities (T-Bills) Placements with Banks (TDRs) Placements with DFIs (LOPs) Cash

77% 18% 5% 0%

Feb-12 Mar-12 % of Net Assets 81% 75% 18% 25% 1% 0% 0% 0%

WAM* Days 48 66 0 1

* Weighted Average Maturity

11.85% 11.78% 11.17%

12.02% 11.89% 11.69%

11.89% 11.94% 11.78%

Disclosures

06

115 110 105

Jul-10

Nov-10 Mar-11

Benchmark

* Source: Bloomberg, Reuters

Leverage as on March 31, 2012 Non Performing Assets WAM of Portfolio

120

100 Nov-09 Mar-10

Key Interest Rates (Monthly Average) KIBOR (1W, 1M, 3M, 6M, 12M) T-Bills (3M, 6M, 12M) Repo (O/N, 1M, 3M, 6M, 12M)

125

Nil. Nil. 52 Days

11.95%

12.31%

11.84%

11.89%

Jul-11

Nov-11 Mar-12

LMMF

Investment Committee Iqbal Ali Lakhani A. Aziz H. Ebrahim Babar Ali Lakhani Muhammad Umair Chauhan Amir Mobin Hamad Aslam, CFA Syed Imran Raza Kazmi Muhammad Qasim

Chairman Director CEO CIO CFO Head of Research Portfolio Manager Officer Risk & Compliance

Lakson Outlook - March 2012

Lakson Income Fund Investment Objective The investment objective of the Lakson Income Fund is to provide competitive total return through investment in a diversified portfolio of fixed income securities. Investments will be made in a variegated mix of short term, medium term and longer term maturities depending on the assessment by the Investment Team of interest rate trends and prospective returns. Performance Review The Lakson Income Fund ("LIF") provided an annualized yield of 10.31% for the month of March '12, compared to the Benchmark return (average return of all income funds) of 11.75 %. The yield since inception (13th November 2009) of the LIF stands at an annualized rate of 11.51%, compared to the Benchmark return of 8.27 % p.a. As of March 31, 2012, the WAM of the LIF portfolio was 403 days compared to 326 days at the start of the month. The LIF also reduced exposure in T-Bills to 48% as it increased its exposure in TDRs to 18% as the banks were offereing better rates on TDRs due to quarter end. The LIF also increased its exposure in TFCs to 18%. As of March 31, 2012, 52% of the portfolio of the LIF comprised of liquid instruments that can be liquidated within six (6) business days keeping in view the prevailing market conditions. In a situation where the income funds are providing very volatile returns, the standard deviation of annualized monthly returns of the LIF is only 1.57 % compared to 5.02 % for the Benchmark.

Asset Allocation CPs 13%

Credit Split

Cash 4%

AA9%

AAA 48%

AA 25%

T-Bills 48%

TFCs 17%

A+ 1%

TDRs 18%

AA+ 17%

Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (31.03.2012) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark Dealing Days Cut-Off Time Fund Rating Asset Manager Rating

Performance Morningstar March-12 2 Months 3 Months 6 Months 12 Months CY12 - YTD FY12 - YTD Since Inception

LIF 10.31% 10.00% 10.22% 11.12% 11.68% 10.22% 11.60% 11.51%

Benchmark 11.75% 11.05% 10.35% 9.39% 9.18% 10.35% 9.26% 8.27%

Simple annualized March-12 2 Months 3 Months 6 Months 12 Months CY12 - YTD FY12 - YTD Since Inception

LIF 9.85% 9.61% 9.85% 10.82% 11.68% 9.85% 11.44% 12.44%

Benchmark 10.96% 10.51% 9.93% 9.12% 9.19% 9.93% 9.12% 8.92%

TFCs Portfolio Name of the Issue Askari Bank Limited Bank Al Habib Limited Engro Fertilizer Limited NIB Bank Limited Orix Leasing Pakistan Limited Pakistan Mobile Communication United Bank Limited

Issue Date 23-Dec-11 30-Jun-11 17-Dec-09 05-Mar-08 30-Jun-11 Advance 14-Feb-08

Rating AAAA AA A+ AA+ AAAA

LIF vs. Benchmark

% of Net Assets 3.74% 1.57% 0.37% 1.10% 4.67% 4.80% 1.11%

130 125 120 115 110 105

Asset Allocation Instruments Government Securities (T-Bills) Placements with Banks (TDRs) Term Finance Certificates (TFCs) Commercial Papers (CPs) Cash

Jan-12

Feb-12

Disclosures

07

Mar-12

% of Net Assets 73% 69% 48% 4% 4% 18% 11% 12% 17% 12% 14% 13% 0% 1% 4%

* Weighted Average Maturity

Leverage as on March 31, 2012 Non Performing Assets WAM of Portfolio

Open-End Income Fund 1,354 100.3374 Forward Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 1.50% 1.50% None November 13, 2009 Average of returns earned by the Income Funds in the industry Mon - Fri 04:00 PM (Mon-Fri) 'AA-' by PACRA AM3+

Nil. Nil. 403 Days

WAM* Days 66 67 1,928 115 1

100 Nov-09 Mar-10

Jul-10

Nov-10 Mar-11

Benchmark

Jul-11

Nov-11 Mar-12

LIF

Investment Committee Iqbal Ali Lakhani A. Aziz H. Ebrahim Babar Ali Lakhani Muhammad Umair Chauhan Amir Mobin Hamad Aslam, CFA Syed Imran Raza Kazmi Muhammad Qasim

Chairman Director CEO CIO CFO Head of Research Portfolio Manager Officer Risk & Compliance

Lakson Outlook - March 2012

Lakson Equity Fund Investment Objective The investment objective of the Lakson Equity Fund is to provide long term capital appreciation by investing mainly in equity and related listed securities. Investments will be made in companies of substance, financial strength and demonstrably superior management skills with some exposure given to smaller capitalized value stocks. Performance Review The Lakson Equity Fund ("LEF") increased by 4.19% in March '12 compared to the KSE-100 Index return of 6.86% and the KSE-30 Index return of 1.75%. The LEF has provided a cumulative return of 31.77% since its inception. During the month, the LEF reduced its exposure in equities to 78% compared to 85% at the start of the month as the LEF realized gains in the stock that approched their target prices. The LEF reduced exposure in Oil and Gas, Banks and Chemicals sectors. The LEF has higher exposure in those sectors and companies that can outperform their peers in tough economic situations. Presently the market is trading at a P/E multiple of 6.7x with an average dividend yield of 6.63% and the market continues to trade at a discount to the regional markets.

Open-End Equity Fund 150 112.5609 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 3.00% 3.00% None November 13, 2009 KSE-100 Index Mon-Fri 04:00 PM AM3+

Asset Allocation

Top 10 Holdings (In Alphabetical Order) Attock Petroleum Limited Fauji Fertilizer Company Limited Lucky Cement Limited MCB Bank Limited Nishat Mills Limited Oil & Gas Development Company Pakistan Oilfields Limited Pakistan Petroleum Limited The Hub Power Company United Bank Limited

Fund Facts

Fund Type Category Net Assets (PKR Mil.) NAV (31.03.2012) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark Dealing Days Cut-Off Time Asset Manager Rating

6.06% 7.48% 6.06% 7.04% 3.63% 5.31% 8.30% 7.92% 4.27% 4.48%

Cash & Equi. 22%

Equities 78%

Performance

LEF

KSE-30

KSE-100

March-12 2 Months 3 Months 6 Months 12 Months CY12 - YTD FY12 - YTD Since Inception

4.19% 11.77% 21.82% 10.58% 8.76% 21.82% 10.14% 31.77%

1.75% 8.42% 19.01% 7.96% 4.78% 19.01% 4.55% 26.69%

6.86% 15.89% 21.27% 17.00% 16.53% 21.27% 10.13% 51.78%

Sectorwise Exposure Others

Sectorwise Exposure

Feb-12

Mar-12

Oil & Gas Banks Chemicals Construction & Materials Electricity Others

32.10% 21.26% 14.37% 7.62% 4.68% 5.03%

31.08% 17.74% 10.34% 8.49% 4.27% 6.02%

Asset Allocation Equities Cash & Equivalents

Electricity Const. & Mat.

Oil & Gas

LEF vs. Benchmark 140 130

Chemicals

120

Banks

110 100

Jan-12 80% 20%

Feb-12 85% 15%

90 Nov-09 Mar-10

Mar-12 78% 22%

LEF

Jul-10

Nov-10 Mar-11

Jul-11

KSE-100

Nov-11 Mar-12 KSE-30

Pakistan vs. Global Markets Country Pakistan India Malaysia Dubai USA USA * Source: Reuters, Bloomberg

Index KSE-100 BSE Sensex 30 FTSE KLCI DFM General DJIA S&P 500

Disclosures Leverage as on March 31, 2012 Non Performing Assets

08

Nil. Nil.

1M Return 6.86% -1.96% 1.70% -4.71% 2.01% 3.13%

P/E 6.70 16.62 15.00 10.34 12.69 13.54

Div. Yield 6.63% 1.61% 3.52% 3.03% 2.59% 2.09%

Investment Committee Iqbal Ali Lakhani A. Aziz H. Ebrahim Babar Ali Lakhani Muhammad Umair Chauhan Amir Mobin Hamad Aslam, CFA Syed Imran Raza Kazmi Muhammad Qasim

Chairman Director CEO CIO CFO Head of Research Portfolio Manager Officer Risk & Compliance

Lakson Outlook - March 2012

Lakson Asset Allocation Developed Markets Fund Investment Objective 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 The Lakson Asset Allocation Developed Markets Fund ("LAADMF") increased by 0.41% in March '12 compared to the Benchmark (70% 6-month T-Bills + 30% MSCI World Index) return of 0.91%. The LAADMF underperformed the Benchmark by 0.5% during March '12. The LAADMF appreciated by 4.03% since its inception compared to 9.16% increase in the Benchmark. During the month, the LAADMF took exposure in Developed Markets equities and invested 3% of its net assets in iShares MSCI World ETF. This ETF tracks the MSCI World Index and it is being managed by BlackRock. This ETF has USD 3.9 billion in assets under management. The LAADMF aims to gradually increase its exposure in Developed Markets equities using dollar cost averaging approach.

Benchmark Dealing Days Cut-Off Time Fund Rating Asset Manager Rating

Open-End Asset Allocation Fund 322 104.0251 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 2.00% 2.50% None October 10, 2011 30% MSCI World Index +70% 6-month T-Bills Mon - Fri 04:00 PM In Process AM3+

Asset Allocation

Developed Market Equities (iShares MSCI World ETF) Security Apple Incorporation Exxon Mobil Corporation IBM Corporation Microsoft Corporation Nestle SA General Electric Chevron Corporation AT&T INC Procter & Gamble Company JPMorgan Chase & Company

Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (31.3.2012) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date

% of ETF's Assets 2.23% 1.71% 1.06% 1.00% 0.89% 0.87% 0.86% 0.77% 0.74% 0.73%

USD Deposit 27%

Cash (PKR) 1%

DM Equities 3%

Fund Performance

T-Bills 69%

March-12 2 Month 3 Month 4 Month 5 Month CY12 - YTD FY12 - YTD*

LAADMF Benchmark 0.41% 1.07% 1.93% 2.68% 3.47% 1.93% 4.03%

0.91% 3.17% 5.63% 6.71% 7.31% 5.63% 9.16%

*Since Inception

Asset Allocation Instruments

Jan-12

Government Securities (T-Bills) Cash (Local Currency PKR) Foreign Currency (USD) Deposit Developed Markets (DM) Equities

96% 4% 0% 0%

Feb-12 Mar-12 % of Net Assets 69% 69% 1% 1% 30% 27% 0% 3%

LAADMF vs. Benchmark 109 107 105 103 101

MSCI World Index (Composition) Country United States United Kingdom Japan Canada France

Weight 53% 9% 9% 5% 4%

99

Sectors Financials Information Technology Industrials Energy Consumer Discretionary

Disclosures Leverage as on March 31, 2012 Non Performing Assets

09

Nil. Nil.

Weight 19% 13% 11% 11% 11%

Oct-11

Nov-11

Dec-11

Jan-12

Benchmark

Feb-12

Mar-12

LAADMF

Investment Committee Iqbal Ali Lakhani A. Aziz H. Ebrahim Babar Ali Lakhani Muhammad Umair Chauhan Amir Mobin Hamad Aslam, CFA Syed Imran Raza Kazmi Muhammad Qasim

Chairman Director CEO CIO CFO Head of Research Portfolio Manager Officer Risk & Compliance

Lakson Outlook - March 2012

Lakson Asset Allocation Emerging Markets Fund Investment Objective The investment objective of the Lakson Asset Allocation Emerging Markets Fund is to provide long-term capital appreciation by investing in a mix of domestic debt and emerging market securities. Performance Review The Lakson Asset Allocation Emerging Markets Fund ("LAAEMF") increased by 0.35% in March '12 compared to the Benchmark (70% 6-month T-Bills + 30% MSCI Emerging Markets Index) return of -0.44%. The LAAEMF outperformed the Benchmark by 0.79% during March '12. The LAAEMF has appreciated by 3.94% since its inception compared to a 9.93% increase in the Benchmark. During the month the LAAEMF took exposure in Emerging Markets equities and invested 3% of its net assets in Vanguard MSCI Emerging Markets ETF. This ETF tracks the MSCI Emerging Markets Index and is being managed by Vanguard. This ETF has USD 55 billion in assets under management. The fund aims to gradually increase its exposure in Emerging Markets equities using dollar cost averaging approach.

Asset Allocation

Emerging Market Equities (Vanguard MSCI EM ETF)

Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (31.03.2012) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date

Dealing Days Cut-Off Time Fund Rating Asset Manager Rating

Open-End Asset Allocation Fund 321 103.9417 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 2.00% 2.50% None October 10, 2011 30% MSCI Emerging Markets Index +70% 6-month T-Bills Mon - Fri 04:00 PM In Process AM3+

Fund Performance

LAAEMF Benchmark

Benchmark

Cash (PKR) 1%

Security % of ETF's Assets China Mobile Ltd 1.89% Gazprom OAO 1.60% America Movil SAB de CV 1.47% China Construction Bank Corp 1.35% Taiwan Semiconductor Manufacturing 1.24% Samsung Electronics 1.17% Industrial & Commercial Bank China 1.16% CNOOC Ltd 1.01% MTN Group Ltd 0.97% Itau Unibanco Holding SA 0.97%

USD deposit 27% EM Equities 3%

T-Bills 69%

March-12 2 Month 3 Month 4 Month 5 Month CY12 - YTD FY12 - YTD*

0.35% 1.00% 1.86% 2.62% 3.39% 1.86% 3.94%

-0.44% 2.10% 6.45% 7.14% 6.33% 6.45% 9.93%

*Since Inception

Asset Allocation Instruments

Jan-12

Government Securities (T-Bills) Cash (Local Currency PKR) Foreign Currency (USD) Deposit Emerging Markets (EM) Equities

93% 7% 0% 0%

LAAEMF vs. Benchmark

Feb-12 Mar-12 % of Net Assets 69% 69% 1% 1% 30% 27% 0% 3%

111 109 107 105 103

MSCI Emerging Markets Index (Composition) Country China Brazil South Korea Taiwan South Africa

Weight 18% 16% 15% 11% 8%

101

Sectors Financials Information Technology Energy Materials Consumer Staples

Disclosures Leverage as on March 31, 2012 Non Performing Assets

10

Nil. Nil.

Weight 23% 14% 14% 13% 8%

99 Oct-11

Nov-11

Dec-11

Jan-12

Benchmark

Feb-12

Mar-12

LAAEMF

Investment Committee Iqbal Ali Lakhani A. Aziz H. Ebrahim Babar Ali Lakhani Muhammad Umair Chauhan Amir Mobin Hamad Aslam, CFA Syed Imran Raza Kazmi Muhammad Qasim

Chairman Director CEO CIO CFO Head of Research Portfolio Manager Officer Risk & Compliance

Lakson Outlook - March 2012

Lakson Asset Allocation Global Commodities Fund Investment Objective The investment objective of the Lakson Asset Allocation Global Commodities Fund is to provide long-term capital appreciation by investing in a mix of domestic debt and commodities. Performance Review The Lakson Asset Allocation Global Commodities Fund ("LAAGCF") increased by 0.28% in March '12 compared to the Benchmark (70% 6-month T-Bills + 30% DB Commodity Index) return of -0.03%. The LAAGCF outperformed the Benchmark by 0.31% as the international commodities represented by DB Commodities Index, witnessed a decline of 2.1% during March '12. During the month, the LAAGCF took exposure in global commodities and invested 3% of its net assets in DBLCI-OY Balanced ETF. This ETF tracks DBLCI -OY Balanced Index and is being managed by Deutsche Bank. The LAAGCF aims to gradually increase its exposure in the Commodities using dollar cost averaging approach. Global Commodities (DB Balanced Commodity ETF) Commodity Gold Brent Crude RBOB Gasoline Light Crude Soybeans Heating Oil Sugar Wheat Corn Copper Zinc Aluminium Silver Natural Gas

Sectorwise Exposure Energy Agriculture Base Metals Precious Metals

Asset Allocation

Weight 12.63% 8.73% 8.65% 8.55% 8.36% 8.33% 7.27% 7.10% 6.63% 6.50% 5.94% 5.92% 3.16% 2.25%

Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (31.3.2012) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark Dealing Days Cut-Off Time Fund Rating Asset Manager Rating

Open-End Asset Allocation Fund 367 103.8929 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 2.00% 2.50% None October 10, 2011 30% DB Commodity Index +70% 6-month TBills Mon - Fri 04:00 PM In Process AM3+

Cash 3% USD Deposit 27%

Fund Performance

Commodities 3%

T-Bills 67%

Sectorwise Exposure

March-12 2 Month 3 Month 4 Month 5 Month CY12 - YTD FY12 - YTD*

0.28% 0.93% 1.79% 2.54% 3.33% 1.79% 3.89%

-0.03% 2.38% 4.44% 4.71% 5.91% 4.44% 7.15%

LAAGCF vs. Benchmark Energy 36.50%

Base Metals 18.35%

Benchmark

*Since Inception

Precious Metals 15.78%

Mar-12 36.50% 29.35% 18.35% 15.78%

LAAGCF

107

105

Agriculture 29.35%

103

101

Asset Allocation Instruments Government Securities (T-Bills) Cash (Local Currency PKR) Foreign Currency Deposit Global Commodities

Jan-12 88% 12% 0% 0%

Disclosures Leverage as on March 31, 2012 Non Performing Assets

11

Nil. Nil.

Feb-12 Mar-12 % of Net Assets 67% 67% 3% 3% 30% 27% 0% 3%

99 Oct-11

Nov-11

Dec-11

Jan-12

Benchmark

Feb-12

Mar-12

LAAGCF

Investment Committee Iqbal Ali Lakhani A. Aziz H. Ebrahim Babar Ali Lakhani Muhammad Umair Chauhan Amir Mobin Hamad Aslam, CFA Syed Imran Raza Kazmi Muhammad Qasim

Chairman Director CEO CIO CFO Head of Research Portfolio Manager Officer Risk & Compliance

Lakson Outlook - March 2012

Mutual Funds Performance Comparison Position as of March 31, 2012 Income Funds ABL Income Fund Atlas Income Fund Crosby Phoenix Fund Faysal Savings Growth Fund First Habib Income Fund HBL Income Fund IGI Income Fund JS Income Fund Lakson Income Fund MCB Dynamic Cash Fund NAFA Income Opportunity Fund NAFA Income Fund NAFA Savings Plus Fund NIT Income Fund Pakistan Income Fund PICIC Income Fund UBL Savings Income Fund

Annualized Returns 6M CY12-YTD

1M

2M

3M

FY12-YTD

STDEV

10.27% 8.58% 10.06% 10.34% 9.13% 16.42% 9.59% 12.00% 10.31% 10.64% 36.76% 16.28% 10.54% 11.56% 11.01% 9.88% 10.34%

9.42% 9.33% 9.78% 9.08% 8.92% 13.39% 11.76% 12.02% 10.00% 10.29% 24.05% 18.06% 10.54% 11.57% 9.64% 8.63% 9.66%

10.71% 9.99% 10.23% 11.29% 9.33% 15.60% 11.87% 12.84% 10.22% 10.91% -1.47% 12.74% 10.75% 12.95% 9.00% 11.57% 10.91%

11.70% 11.13% 9.99% 10.64% 9.83% 14.75% 10.25% 12.95% 11.12% 10.41% 0.20% -7.81% 11.17% 12.15% 9.50% 11.43% 11.87%

10.71% 9.99% 10.23% 11.29% 9.33% 15.60% 11.87% 12.84% 10.22% 10.91% -1.47% 12.74% 10.75% 12.95% 9.00% 11.57% 10.91%

12.21% 3.64% 10.51% 11.24% 10.53% 13.84% 11.35% 14.34% 11.60% 11.20% -2.33% -9.72% 11.30% 12.89% 9.30% 12.07% 12.53%

2.32% 12.37% 6.74% 2.70% 2.03% 9.99% 2.42% 22.92% 1.57% 5.02% 20.19% 29.58% 0.85% 3.69% 5.91% 3.84% 3.80%

10.55% 10.34% 10.70% 10.52% 10.68% 10.37% 10.23% 10.44% 11.02% 10.77% 10.86% 10.35% 10.36% 10.31% 10.68% 10.58% 10.30%

10.36% 10.05% 10.51% 10.31% 10.76% 9.96% 10.03% 10.39% 10.75% 10.47% 10.76% 10.16% 10.34% 9.95% 10.61% 10.32% 10.16%

10.78% 10.30% 10.83% 10.62% 11.04% 10.31% 10.31% 10.67% 10.99% 10.86% 10.82% 10.51% 10.70% 10.17% 10.76% 10.64% 10.59%

11.23% 10.70% 11.54% 11.09% 11.13% 10.75% 10.91% 11.25% 11.49% 11.38% 11.37% 11.01% 11.30% 10.61% 11.25% 11.08% 11.12%

10.78% 10.30% 10.83% 10.62% 11.04% 10.31% 10.31% 10.67% 10.99% 10.86% 10.82% 10.51% 10.70% 10.17% 10.76% 10.64% 10.59%

11.61% 11.13% 11.98% 11.52% 11.41% 11.12% 11.36% 11.76% 11.99% 11.89% 11.82% 11.42% 11.60% 11.03% 11.63% 11.67% 11.57%

1.13% 1.04% 1.22% 1.06% 1.01% 1.12% 1.32% 1.12% 1.08% 1.31% 1.17% 1.02% 0.98% 0.80% 0.79% 1.17% 1.09%

23.46% 104.26% 8.24% 79.47% 28.73% 27.76% 25.76% 64.38% 13.05%

18.02% 55.94% 8.66% 40.08% 21.08% 19.06% 26.61% 34.53% 8.01%

17.29% 50.46% 5.29% 37.68% 21.91% 21.51% 27.86% 29.36% 13.28%

12.29% -10.67% 7.54% -35.87% 15.87% 24.15% 31.25% 21.62% -19.60%

17.29% 50.46% 5.29% 37.68% 21.91% 21.51% 27.86% 29.36% 13.28%

12.15% -7.70% 5.98% -20.31% 15.25% 22.23% 27.39% 11.39% -18.05%

Money Market Funds ABL Cash Fund Alfalah GHP Cash Fund* Askari Sovereign Cash Fund Atlas Money Market Fund* BMA Empress Cash Fund Faysal Money Market Fund* First Habib Cash Fund HBL Money Market Fund* IGI Money Market Fund JS Cash Fund KASB Cash Fund Lakson Money Market Fund* MCB Cash Management Optimizer NAFA Government Securities Liquid Fund Pakistan Cash Management Fund PICIC Cash Fund* UBL Liquidity Plus Fund

Aggressive Income Funds AKD Aggressive Income Fund Alfalah GHP Income Multiplier Fund Askari Income Fund BMA Chundrigar Road Savings Fund Faysal Income and Growth Fund IGI Aggressive Income Fund JS Aggressive Income Fund KASB Income Opportunity Fund United Growth and Income Fund

*These money market funds are providing liability related to Workers Welfare Fund N.A. = Not Available

STDEV = Standard Deviation of monthly returns since November '09

Calculation Formula: Annualized Return = (Ending NAV / Beginning NAV) ^ (365 / No. of Days) - 1 Source: AMC websites and FMR

12

Lakson Outlook - March 2012

Mutual Funds Performance Comparison Position as of March 31, 2012 Equity Funds

1M

2M

Absolute Returns 3M 6M

CY12-YTD

FY12-YTD

ABL Stock Fund AKD Opportunity Fund Alfalah GHP Alpha Fund Atlas Stock Market Fund Crosby Dragon Fund First Habib Stock Fund HBL Stock Fund IGI Stock Fund JS Large Cap. Fund KASB Stock Market Fund Lakson Equity Fund MCB Dynamic Stock Fund NAFA Stock Fund National Investment Unit Trust Pakistan Premier Fund Pakistan Stock Market Fund Pakistan Strategic Allocation Fund PICIC Stock Fund United Stock Advantage Fund

6.75% 16.04% 3.74% 6.10% 2.09% 3.44% 4.69% 4.07% 4.94% 2.18% 4.19% 6.73% 9.94% 5.26% 6.31% 5.97% 5.20% 3.23% 5.40%

16.58% 32.93% 8.97% 14.61% 7.90% 9.73% 11.19% 11.55% 15.23% 8.52% 11.77% 12.97% 19.18% 9.25% 12.73% 12.74% 11.10% 10.96% 13.29%

28.21% 38.70% 18.22% 28.46% 16.52% 16.92% 20.93% 21.43% 25.63% 16.72% 21.82% 22.09% 29.38% 15.87% 21.37% 20.69% 19.05% 18.93% 23.85%

22.47% 32.24% 9.07% 17.21% 7.80% 5.75% 10.85% 14.06% 13.10% 7.34% 10.58% 13.17% 20.87% 7.79% 10.70% 9.65% 11.36% 11.92% 16.02%

28.21% 38.70% 18.22% 28.45% 16.50% 16.91% 20.92% 21.42% 25.90% 16.72% 21.81% 22.07% 29.36% 15.87% 21.37% 20.84% 18.90% 18.92% 23.85%

23.88% 23.71% 8.95% 18.89% 10.28% 3.12% 12.39% 13.63% 12.26% 4.82% 10.14% 15.42% 20.54% 6.65% 10.82% 8.53% 12.30% N.A. 15.48%

4.06% 0.91% 3.86% 2.98% 4.88%

9.14% 4.37% 9.38% 7.29% 10.28%

15.78% 6.84% 14.22% 13.57% 18.43%

8.00% 5.77% 12.65% 6.28% 13.16%

15.78% 6.81% 14.23% 13.41% 18.87%

11.51% 2.81% 14.27% 6.57% 16.23%

3.34% 3.39% 3.36% 6.94% 2.45% 0.41% 0.35% 0.28% 4.23% 3.46% 4.93%

8.82% 9.22% 7.51% 12.33% 6.64% 1.07% 1.00% 0.93% 8.03% 8.29% 9.41%

15.77% 20.01% 9.48% 22.88% 14.29% 1.93% 1.86% 1.79% 13.37% 12.72% 13.64%

9.19% 9.76% 6.95% 9.90% 7.83% N.A. N.A. N.A. 7.07% 12.58% 5.83%

15.77% 20.01% 9.54% 22.88% 14.29% 1.96% 1.89% 1.82% 13.37% 12.78% 13.64%

7.45% 9.96% 5.02% 10.88% 0.87% N.A. N.A. N.A. 7.72% 14.89% 0.30%

0.85% 0.57%

1.68% 1.14%

2.58% 1.14%

5.22% 2.51%

2.61% 1.14%

7.91% 4.22%

Balanced Funds HBL Multi Asset Fund Faysal Balanced Growth Fund NAFA Multi Asset Fund Pakistan Capital Market Fund Unit Trust of Pakistan

Asset Allocation Funds Alfalah GHP Value Fund Askari Asset Allocation Fund Faysal Asset Allocation Fund JS Aggressive Asset Allocation Fund KASB Asset Allocation Fund Lakson Asset Allocation Developed Markets Fund Lakson Asset Allocation Emerging Markets Fund Lakson Asset Allocation Global Commodities Fund MCB Dynamic Allocation Fund NAFA Asset Allocation Fund Pak Oman Advantage Asset Allocation Fund

Capital Protected Funds JS Principal Secured Fund I Pakistan Capital Protected Fund - FIS

Calculation Formula: Absolute Return = (Ending NAV / Beginning NAV) - 1 Source: AMC websites and FMR

13

Lakson Outlook - March 2012

Markets Information Equities Total Return in PKR and % Markets

Index

YTD-CY12 3-mo

1-yr

5-yr

Total Return in USD and % YTD-CY12 3-mo

1-yr

5-yr

World

MSCI All Country World Index

12.14%

12.14%

3.00%

32.56%

11.28%

11.28%

-3.01%

-11.19%

Developed

MSCI World Index

11.80%

11.80%

4.37%

29.33%

10.94%

10.94%

-1.72%

-13.35%

Emerging

MSCI Emerging Markets Index

14.53%

14.53%

-5.54%

67.32%

13.65%

13.65%

-11.05%

12.10%

Europe

MSCI Europe Index

10.75%

10.75%

-5.01%

4.26%

9.89%

9.89%

-10.55% -30.15%

China

CSI 300

Dubai

DFM

India

BSE Sensex 30

Japan

Nikkei 225

Malaysia

FTSE Bursa

8.63%

Pakistan

KSE 100

21.27%

Sri Lanka

Colombo All Share

-20.14%

-20.14%

UK

FTSE 100

7.44%

7.44%

US

DJIA

8.98%

US

S&P 500

12.87%

US

NASDAQ 100

21.90%

21.90%

Germany

DAX Index

22.19%

22.19%

CANADA

TSX 300 Composite Index

6.82%

France

CAC - 40

12.41%

Brazil

Sao Paulo SE Bovespa Index

Korea

Korea SE Kospi

Taiwan

Taiwan SE Weighted Index

16.01%

5.41%

5.41%

-15.91% 61.57%

4.60%

4.60%

-20.82%

8.25%

22.77%

22.77%

12.52% -33.99%

21.83%

21.83%

5.96%

-55.78%

18.37%

18.37%

-16.70% 69.80%

17.46%

17.46%

-21.56%

13.76%

11.54%

11.54%

10.68%

10.68%

3.32%

-17.07%

9.72%

23.79%

8.63%

8.30%

115.58%

7.80%

7.80%

1.98%

44.43%

21.27%

16.53%

22.09%

20.34%

20.34%

9.73%

-18.20%

-31.44% 125.07%

-20.75%

-20.75%

-35.44%

50.79%

6.62%

6.62%

-2.72%

-25.61%

3.31%

11.03%

8.98%

13.89%

59.62%

8.14%

8.14%

7.24%

6.94%

12.87%

12.82%

47.96%

12.00%

12.00%

6.23%

-0.87%

25.10% 132.04%

20.96%

20.96%

17.80%

55.46%

-1.48%

49.77%

21.25%

21.25%

-7.23%

0.34%

6.82%

-9.47%

62.34%

6.00%

6.00%

-14.75%

8.76%

12.41%

-14.29%

-9.38%

11.55%

11.55%

-19.30% -39.29%

17.06%

17.06%

-10.78% 136.82%

16.16%

16.16%

-15.98%

13.07%

13.07%

-1.71%

71.80%

12.20%

12.20%

-7.45%

15.10%

16.01%

-3.31%

68.30%

15.12%

15.12%

-8.95%

12.76%

-50%

-25%

0%

25%

50%

58.66%

KSE Sectors Automobile and Parts

11.14%

11.14%

5.99%

-48.29%

10.28%

10.28%

-0.20%

-65.35%

Banks

19.26%

19.26%

3.91%

-50.36%

18.34%

18.34%

-2.16%

-66.74%

Chemicals

18.54%

18.54%

2.41%

75.16%

17.63%

17.63%

-3.56%

17.35%

Construction & Materials

28.30%

28.30%

40.31% -32.01%

27.31%

27.31%

32.12%

-54.45%

Electricity

10.51%

10.51%

Fixed Line Tele.

11.89%

11.89%

-32.44% -75.71%

4.58%

2.35%

9.66%

9.66%

-1.52%

-31.43%

11.02%

11.02%

-36.38%

-83.73%

Food Producers

1.67%

1.67%

15.34% 124.50%

0.89%

0.89%

8.61%

50.41%

Non Life Insurance

21.57%

21.57%

1.46%

-66.32%

20.64%

20.64%

-4.46%

-77.43%

Oil and Gas

8.62%

8.62%

10.60%

18.42%

7.78%

7.78%

4.15%

-20.66%

Personal Goods

11.05%

11.05%

-9.90%

-2.12%

10.19%

10.19%

-15.16%

-34.42%

YTD 3-mo

Fixed Income Current Interbank Rates on Interbank Rates

1M

3M

6M

12M

Historic 6-month Interbank Rates YTD-CY12 3-mo

1-yr

2-yr

China

SHIBOR

4.16%

4.90%

5.10%

5.16%

5.31%

5.31%

5.19%

4.06%

Dubai

UAE IBOR

0.98%

1.54%

1.71%

1.99%

1.71%

1.71%

1.80%

2.11%

India

MIBOR

11.32%

11.09%

N.A.

N.A.

N.A

N.A

N.A

N.A

Japan

TIBOR

0.18%

0.34%

0.44%

0.46%

0.44%

0.44%

0.44%

0.46%

Malaysia

KLIBOR

3.08%

3.19%

3.25%

3.36%

3.26%

3.26%

3.29%

3.11%

Pakistan

KIBOR

12.05%

11.91%

11.97%

12.33%

11.92%

11.92%

12.89%

12.97%

Sri Lanka

SLIBOR

9.96%

10.37%

10.83%

11.33%

10.45%

10.45%

9.05%

9.12%

UK

LIBOR

0.70%

1.03%

1.35%

1.86%

1.38%

1.38%

1.24%

1.13%

US

SIBOR

0.24%

0.47%

0.73%

1.05%

0.76%

0.76%

0.58%

0.56%

Current Market Yields on Government Securities

5Y

10Y

12.50% 12.00% 11.50% 11.00% Interbank Mar-12

10.50% 1W

Historic 12-Month Paper Rates

3M

12M

China

2.75%

2.84%

3.14%

3.52%

2.89%

India

8.93%

8.38%

8.60%

8.54%

8.36%

YTD-CY12 3-mo

1-yr

2-yr

2.89%

3.12%

2.69%

8.36%

8.32%

7.40%

1M

3M

Govt. Sec. Mar-12

6M

1Y

2Y

12M Yields of Government Securities China India Japan

Japan

0.10%

0.10%

0.34%

1.01%

0.11%

0.11%

0.13%

0.14%

Malaysia

3.04%

3.02%

3.34%

3.68%

2.94%

2.94%

2.94%

2.88%

Pakistan

11.82%

11.97%

12.97%

13.27%

11.86%

11.86%

12.81%

12.90%

Sri Lanka

10.99%

11.32%

12.09%

12.28%

9.96%

9.96%

8.16%

8.12%

UK

UK

0.00%

0.47%

1.06%

2.25%

0.41%

0.41%

0.51%

0.59%

US

US

0.07%

0.17%

1.06%

2.23%

0.14%

0.14%

0.13%

0.20%

14

Govt. Securities vs. KIBOR

13.00%

Malaysia Pakistan Sri Lanka

0%

3%

6%

9%

Lakson Outlook - March 2012

12%

Markets Information Commodities Total Return Unit

YTD-CY12 3-mo

Current Prices

1-yr

5-yr

110

DB Commodity Index

USD Excess Return

7.01%

7.01%

-5.71%

14.31%

564.11

S&P Global Commodity Index

USD Total Return

5.88%

5.88%

-6.21%

-12.63%

5,172.60

105

Dow Jones UBS Commodity Index

USD Total Return

0.89%

0.89%

-16.28% -13.13%

285.33

100

Coal

USD/Tonne

-4.68%

-4.68%

-13.15%

N.A

107.00

Copper

USc/lbs

11.32%

11.32%

-11.20%

21.58%

382.50

Cotton

USc/lbs

1.87%

1.87%

-53.29%

74.58%

93.52

90

Gold

USD/t oz.

6.54%

6.54%

16.01% 151.78%

1,669.30

85

Palm Oil

USD/Tonne

13.40%

13.40%

1.83%

90.46%

1,136.99

Sugar

USc/lbs

6.05%

6.05%

-8.85%

150.10%

24.71

Wheat

USD/Bushel (60Ibs)

1.23%

1.23%

-13.43%

50.86%

6.61

WTI

USD/bbl

4.24%

4.24%

-3.47%

56.40%

103.02

Brent Crude

USD/bbl

14.43%

14.43%

4.70%

80.44%

122.88

Heating Oil

Usc/Gallon

7.95%

7.95%

2.54%

N.A

316.84

RBOB Gasoline

USD/Gallon

26.19%

26.19%

9.08%

60.54%

3.39

Natural Gas

USD/MMBTU

-28.87%

-28.87% -51.56% -72.50%

Silver

Usc/Ozs

16.53%

16.53%

-14.26% 141.52%

DBCI

SPGSCI

DJUBS

95

80 75 Mar-11 May-11

Jul-11

Sep-11 Nov-11

Jan-12

Mar-12

2.13 32.48

Currencies Change Versus PKR in %

Current Exchange Rates

YTD-CY12

3-mo

1-yr

5-yr

3.12%

72.43%

CAD - PKR

90.75

Canadian Dollar

CAD

2.58%

2.58%

Euro

EUR

3.72%

3.72%

-0.19%

48.87%

EUR - PKR

120.88

Indian Rupee

INR

5.11%

5.11%

-6.93%

27.54%

INR - PKR

1.78

Japanese Yen

JPY

-6.07%

-6.07%

6.47%

95.93%

JPY - PKR

1.10

Pound Sterling

GBP

3.92%

3.92%

5.74%

21.24%

GBP - PKR

144.96

Singaporian Dollar

SGD

3.98%

3.98%

6.50%

80.09%

SGD - PKR

72.13

US Dollar

USD

0.78%

0.78%

6.20%

49.26%

USD - PKR

90.65

15

160

GBP

EUR

CAD

USD

140 120 100 80 60 Apr-11

Jun-11

Aug-11

Oct-11

Dec-11

Feb-12

Lakson Outlook - March 2012

Notes

16

Lakson Outlook - March 2012

Notes

17

Lakson Outlook - March 2012

Disclaimer This information has been prepared by Lakson Investments for your general information and private use only. It does not constitute investment advice and is not intended to be an offer to buy or sell or a solicitation of an offer to buy or sell any securities mentioned. It should not be considered as an incentive to invest. The securities described in this document may not be eligible for sale or subscription in all jurisdictions or to certain categories of investors. This document is not intended for distribution to a person or within a jurisdiction where such distribution would be restricted or illegal. This document may not be conveyed to or used by a third party without our express consent. Any other use is not authorized. The information contained herein has been obtained from sources believed to be reliable and no member of Lakson Investments makes any warranty, expressed or implied, as to the accuracy or completeness of the information. All the information included in this presentation is current when this document is prepared and subject to changes at any time. Any forecast or projection or forward looking statement made in this document is not necessarily indicative of future or likely performance, future events or future financial performance of securities, countries, markets or companies. Such statements are only predictions and actual events or results may differ. Lakson Investments may from time to time provide services to the companies and their affiliates mentioned herein. Employees of Lakson Investments or ersons/entities connected to them may from time to time have position in or are holding any of the securities mentioned in this document. No consideration have been given to and no investigation was made of your investment objectives, financial situation or particulars, and accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of you acting on such information or opinion or estimate. Lakson Investments expressly disclaims any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on this information in this document. Disclaimer: All investments in mutual funds are subject to market risks. The NAV of Units may go up or down based on market conditions. Past performance is not necessarily indicative of the future results. The investors are advised in their own interest to carefully read the Offering Document in particular the investment policy in Clause 2.2 and risk disclosure and warning statements contained in Clause 2.11 and Part 11 respectively in this Offering Document.

Transaction Locations: Islamabad: Contact Person: Mr. Ali Kazmi - Branch Manager Office No.6, Mezzanine floor, Kashmir Plaza, Jinnah Avenue, Blue Area, Islamabad. UAN: 051.111-111-717 Fax: 051.2870228 Lahore: Contact Person: Mr. Rao Ashraf - Branch Manager Suit No.209, Eden Center 43-Jail Road, Lahore. Tel: 042.759.0500/756.7390 Fax: 042.756.7881 Rawalpindi: Contact Person: Mr. Tariq Aziz - Branch Manager Suite No.3, 1 st Floor, Majeed Plaza Bank Road, Rawalpindi Tel: 051.551.2251/52 Fax: 051.511.0996 Faisalabad: Contact Person: Mr. Shahbaz Choudhry - Branch Manager 1 st Floor, FM Plaza 15-D, Peoples Colony, Faisalabad Tel: 041.324.1704/07 Fax: 041.855.4453 Sialkot: Contact Person: Mr. Nisar Bhatti - Branch Manager 1 st Floor, Karim Plaza Iqbal Town, Defence Road, Sialkot Tel: 052.324.1704/07 Fax: 052.324.1703

18

Lakson Outlook - March 2012

1954

DECADES OF SEASONED INVESTMENT

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

UAN T F E

+92.21 111 Lakson +92.21 3569.8000 +92.21 3568.1653 [email protected] www.li.com.pk