LAKSON GROUP
ONLINE www.li.com.pk
[email protected]
TELEPHONE + 92 21 3569 8000 UAN: +92 21 111 Lakson F: +92 21 3568 1653
ADDRESS Lakson Investments Limited. Lakson Square, Building No. 2, Sarwar Shaheed Road, Karachi-74200, Pakistan
OCTOBER 2016
Lakson Outlook.
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 during October 2016 clocked in at 4.2% YoY, higher than the figure of 3.9% in September 2016 and above-consensus expectation. On a month-on-month basis, CPI was up 0.8% in October as compared to an increase of 0.2% during the previous month. Food inflation picked up by 4.4% YoY in October 2016 compared to an increase of 4.0% YoY last month. Going forward, inflationary expectations are on the rise, with further impetus likely from a recovery in international commodity prices. Other macro indicators also improved in October 2016, where Large-scale manufacturing (LSM) increased by 1.5% YoY in September 2016. Private sector credit off-take continues to accelerate (up 11.1% YoY in September 2016 vs. 6.2% in September 2015) with impetus from Construction (+46% YoY), Chemicals (+15% YoY) and Telecommunication (+20% YoY).
Yield Curve 11.5% 10.5% 9.5% 8.5% 7.5% 6.5% 5.5% 1W
2M
Net FDI flows during Q1FY17 clocked in at USD 249.3 mn, down 38% YoY. Current account balance posted a USD 161 mn deficit in September 2016 (0.6% of GDP) against USD 612 mn deficit in August 2016, led primarily by slowdown in remittances, lackluster exports and rise in imports.
Fixed Income Review The government of Pakistan raised PKR 157 bn through the T-Bill auctions in October 2016, led by participation in 3M t-Bills and followed by those of 6M t-bills. Cut-off yields remained flat, on average, during the month in case of 6M and 12M t-Bills at 5.90% and 5.91%, respectively. Meanwhile, in the case of 3M t-Bills, cut-off yield rose by 4 bps to 5.90% during the last auction of the month. In the PIB auction held on October 19th, GoP rejected all bids worth PKR 75 bn. Major participation came in the 3 yr tenor paper (PKR 63 bn), followed by 5 yr tenor paper (PKR 10 bn).
Equities
2Y
5Y
30-Sep-16
8Y
15Y
31-Oct-16
USD/PKR vs. Forex Reserves Forex Res. (USD bn.) - RHS USD/PKR
25.0
105.0
24.0 23.0
104.0 22.0 103.0
October was mired in uncertainty as a leading political party planned protests in the capital. The KSE 30 declined 1.88% and closed at 25,971.45 points. Average volumes in the market declined 11% to reach 76.2 million shares per day and average daily traded value declined by 4% to $60.1 million per day. Foreigners (+$2.02 mn), mutual funds (+$31.7 mn) and NBFCs (+$ 24.5 mn) were major buyers during the month. Mutual funds were net buyers due to substantial inflows from a local Pension Fund. Individuals (-$47.9 mn) were major sellers due to the prevailing political uncertainty.
6M
21.0 1-Oct
8-Oct
15-Oct
22-Oct
29-Oct
Market Rates 6.0%
The Utilities sector (+21.8%) was the best performing sector. All other sectors showed negative performance. Banks (-0.15%), followed by food (-3.3%), Oil & Gas (-1.1%) and Pharma (-1.1%). The worst performers were Support services (-15.7%) followed by Automobiles (-12%) most likely due to profit taking. Power generation (-1.9%) declined after HUBC posted a below expected result due to rising operating costs.
5.5%
The KSE 30's trailing 12 months (TTM) PE ratio is 10.7x and continues to trade at a substantial discount to regional markets such as China's Shanghai Composite Index and India's Sensex Index which are trading at 17.6x and 20.8x respectively.
5.0% 3-Oct 12-Oct 21-Oct 6M KIBOR O/N Repo Rate
30-Oct 6M T-Bill
Inflationary expectations are on the rise.
5
Economic & Markets Review INTERNATIONAL
Developed Markets US markets remained uncertain over concerns about the upcoming US elections, anticipations of Fed rate hike and corporate results. Weaker US corporate earnings for Q3 kept equities lower for most part of the month, with S&P/DJIA index down 1.9%/0.9%MoM. In the UK, Theresa May's comments on 'Brexit' strategy triggered sharp depreciation in the Sterling (GBP/US$ down 5.6%MoM). However, a weaker GBP proved positive for equities with the FTSE100 climbing 0.8% MoM. ECB kept its monetary policy unchanged though markets are still anticipating further easing pushing equities higher (Euro Stoxx 50 Index up 1.76% MoM), despite disappointing earnings. The German DAX Index rallied 1.47% MoM.
Emerging Markets Emerging markets remained a mixed bag with the MSCI EM index managing gains of 0.18% MoM. China led the board, with the Shanghai Composite gaining 3.2% MoM on stronger than expected inflation data as well as GDP coming in line with expectations at 6.7% to ease concerns about the health of the economy. Thailand (+0.84% MoM), Indonesia (+1.08% MoM) and Malaysia (+1.2% MoM) also followed suit, while Philippines and Vietnam lost 2.9% MoM and 1.4% MoM respectively. This was driven by volatile trend in commodities where the TRJ-CRB Index remained flat (-0.02%MoM) on a stronger dollar (DXY +3.1%MoM) driven by weakness in major currencies as well built up in expectation for another hike before year end. While oil prices continued their rally earlier in the month on OPEC's decision to consider an output freeze, data released later depicting supply to be already at their highest pulled oil prices down again where Brent/WTI index closed the month 2.1%/2.8% lower.
Performance of Equities and Commodities 120%
MSCI World Index MSCI EM Index DB Commodity Index
100%
80%
60% Oct-15
Jan-16
Apr-16
Jul-16
Valuation of International Markets 24 20 16 12
Commodities
8
October turned out to be a propitious month for international oil market as global crude oil prices reached the highest level seen during this calendar year. Brighter prospects of a deal between OPEC members boded well for sentiment while a drop in US crude oil inventory levels also aided prices during the month. Average Nymex and Brent prices rose by 11% and 9% respectively during the month while cresting at USD 51.6/bbl and USD 53/bbl, respectively. Arab Light prices also briefly closed above USD50/bbl for the first time in CY16. Coal remained another winner in October as coal prices further surged by another USD 25/MT to close above USD 90/MT at month close (last seen in early Jan 2013). Richard Bay coal averaged USD 80.7/MT depicting MoM jump of 21%. In addition to restraints put by China on coal miners, rising coal demand from France (as demand for fossil fuel-fed power is expected to increase after 58 French nuclear plants went for extended safety checks in October). Gold prices declined sharply early during the month falling below USD 1300/ounce as Hedge funds and large investors abandoned gold at significantly faster pace owing to increasing speculation that the Federal Reserve will increase US interest rates before the end of the year (market bets now put the odds of a December hike at around 74%).
4 -
DM
US
UK
Japan Canada EM
Brazil Russia India China
P/E Multiple
Oil prices reached the highest level seen during the calendar year.
6
LAKSON MONEY MARKET FUND FU N D FA C T S
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
WWW Disclosure
The Lakson Money Market Fund generated an annualized return of 5.02% against the benchmark return of 5.24% in October 2016. The Fund underpeformed the benchmark by 0.22%. During CY16TD the Fund has returned 5.58% to unit holders against the benchmark of 5.22% and outperformed by 0.36%. Asset allocation changed with T bill allocation increasing to 38% while cash holdings decreased to 52%. As a result portfolio WAM increased to 30 days. Going forward the Fund will focus on increasing exposure to attractive deposits in order to generate returns and mitigate interest rate risk.
As of October 31st, 2016 the LMMF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 51.0 million. If the same were not made the NAV per unit of the LMMF would be higher by PKR 0.99. If the LMMF would not have made the WWF provisions during FY17, the year to date annualized return of the LMMF for FY17 would be higher by 0.00%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LMMF.
Total Expense Ratio (TER) TER 0.89%
(*This Includes 0.19% representing Government levy, Workers' Welfare Fund and SECP Fee.)
9%
52%
Asset Allocation
38%
Placements with Banks & DFIs T Bill Cash
52%
Credit Split
38%
Gov Sec AA+ AA
9%
Asset Allocation Instruments (% of total Assets) Instruments Placements with Banks & DFIs PIBs T Bills Cash Others including receivables * Weighted Average Maturity
Aug-16 10% 0% 61% 29% 1%
Sep-16 11% 0% 25% 64% 0%
Oct-16 9% 0% 38% 52% 1%
WAM* days 106 0 51 0
Fund Type Category Net Assets (PKR Mil.) NAV (31.10.2016) Pricing Mechanism Trustee Auditor Management Fee
Front End Load Back End Load Launch Date Benchmark*
Dealing Days Cut-Off Time Fund Rating Risk Profile Asset Manager Rating
Open-End Money Market Fund 5,255 101.9335 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 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 (31.12.2015) Low Risk AM2 by PACRA (08.06.2016)
PERFORMANCE Morningstar FY17 - YTD October-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD Simple Annualized FY17 - YTD October-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD 3 Years 5 Years Since Inception
LMMF 5.40% 5.14% 5.42% 5.36% 5.53% 5.49% 5.60% LMMF 5.31% 5.02% 5.31% 5.25% 5.46% 5.49% 5.58% 7.67% 9.26% 11.72%
Benchmark 5.08% 5.37% 5.39% 4.96% 5.17% 5.28% 5.25% Benchmark 5.00% 5.24% 5.27% 4.87% 5.11% 5.28% 5.22% 7.72% 9.45% 11.92%
*The benchmark of the Fund was changed in February 2014 and September 2016.
LMMF vs. Benchmark Non Compliant Investments
Disclosures
Name on investment
Leverage as on October 31st, 2016 Non Performing Assets WAM of Portfolio
Type of instrument Value of investment before provisioning
Nil Nil 30 Days
Total provision held Value of investment
118 117 116 115 114 113 112 111 110 109 108 107 106 105 104 103 102 101 100 Jun-14
Oct-14
Feb-15
Jun-15
Oct-15
Benchmark
Feb-16
after provisioning
INVESTMENT COMMITTEE
% of total assets
Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah, CPFA , MIPA
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
Jun-16
LMMF
October 2016
7
LAKSON INCOME FUND FUND FACTS
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
WWW Disclosure
During October 2016 the LIF generated an annualized return of 5.50% against the benchmark return of 6.05%. The LIF underpeformed the benchmark by 0.55%. Over CY16TD the LIF has generated a return of 6.76% and outperformed the benchmark by 0.17%. Asset allocation changed with placements stable at 32%, cash exposure increasing to 48% while corporate debt exposure was stable 14%. This meant that portfolio WAM increased to 383 days. Going forward the Fund will concentrate on building exposure to high quality corporate debt and bank placements.
As of October 31st, 2016 the LIF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 7.8 million. If the same were not made the NAV per unit of the LIF would be higher by PKR 0.27. If the LIF would not have made the WWF provisions during FY17, the year to date annualized return of the LIF for FY17 would be higher by 0.00%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LIF.
(*This Includes 0.15% representing Government levy, Workers' Welfare Fund and SECP Fee.) 1%
Placements with Banks & DFIs PIB TFC Sukuk Cash Others
32% 48%
Asset Allocation 5% 4% 10%
3% 19%
5%
Gov Sec AAA AA+ AA AAA+ A A-
3% 5% 5%
Credit Split 19%
43%
Asset Allocation Instruments (% of total Assets) Instruments Placements with Banks & DFIs PIBs T Bills TFCs Sukuks MTS Cash Others including receivables
Aug-16 23% 6% 2% 10% 4% 0% 54% 1%
Issue Date
NRSP 30-Jun-16 PEL SUKUK 25-Aug-16 Habib Bank 19-Feb-16 Limited I Bank Al Falah 20-Feb-13 Limited V Askari Bank 23-Dec-11 Limited IV K-Electric AZM Sukuk III 24-Feb-14
Sep-16 33% 5% 0% 10% 4% 0% 46% 1%
Oct-16 32% 5% 0% 10% 4% 0% 48% 1%
WAM* days 148 2741 0 1818 554 0 0
Disclosures
TFCs/Sukuk Portfolio Name of the Issuer
Rating
% of Total Assets
AA
2.94% 2.69%
Open-End Income Fund 2,942 102.9720 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 (31.12.2015) Medium Risk AM2 by PACRA (8.06.2016)
PERFORMANCE
Total Expense Ratio (TER) TER 1.95%
Fund Type Category Net Assets (PKR Mil.) NAV (31.10.2016) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark* Dealing Days Cut-Off Time Fund Rating Risk Profile Asset Manager Rating
Leverage as on October 31st, 2016 Nil Non Performing Assets Nil WAM of Portfolio 383 Days
Morningstar FY17 - YTD October-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD Simple Annualized FY17 - YTD October-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD 3 Years 5 Years Since Inception
LIF 5.48% 5.65% 5.47% 5.48% 6.53% 6.36% 6.80% LIF 5.38% 5.50% 5.35% 5.38% 6.43% 6.36% 6.76% 11.64% 11.93% 14.24%
*The benchmark of the Fund was changed in September 2016
LIF vs. Benchmark 126 124 122 120 118 116 114 112 110 108 106 104 102 100 Jun-14
Oct-14
Feb-15
Jun-15
Oct-15
Benchmark
AAA
2.52%
AA-
2.21%
AA-
1.90%
AA
1.40%
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
Benchmark 5.78% 6.22% 6.22% 5.38% 6.80% 6.26% 6.63% Benchmark 5.68% 6.05% 6.07% 5.28% 6.69% 6.26% 6.59% 13.38% 12.52% 11.99%
Feb-16
Jun-16
Oct-16
LIF
INVESTMENT COMMITTEE Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah, CPFA , MIPA
October 2016
8
LAKSON EQUITY FUND FUND FACTS
India
BSE Sensex 30 0.23% 20.59 1.53%
Malaysia FTSE KLCI 1.20% 17.69 3.05% Dubai
DFM General
-4.09% 12.07 4.13%
USA
DJIA
-0.91% 17.29 2.59%
USA
S&P 500
-1.94% 19.98 2.17%
9%
14%
Asset Allocation
Equity Cash Others
65%
5%
Sector wise Exposure
14%
11% 4%
9%
Chemicals Comm Banks Const. & Mat Electricity Oil & Gas Exp Oil & Gas Mktg Others
Asset Allocation (% of Total Assets) Aug-16 Sep-16 Oct-16
Sectorwise Exposure Sep-16
Oct-16
Equities
89%
85%
65%
Chemicals*
10.93%
8.53%
T-Bills
0%
0%
0%
Comm Banks
18.30% 14.46%
Cash
10%
14%
33%
Const. & Mat.
15.65%
Others
1%
1%
2%
Electricity
Disclosures Leverage as on October 31st, 2016 Non Performing Assets
Nil Nil
LEF
KSE-100
KSE-30
8.92%
7.05%
4.12%
Oil & Gas Exp
13.46%
10.55%
Oil & Gas Mktg
5.82%
4.75%
Others
13.96% 13.53%
*Includes fertilizers
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
LEF vs. Benchmark 500 450 400 350 300 250 200 150 100 50 0
Oct-16
Pakistan KSE-100
2%
33%
1M P/E Div. Ret. Yield -1.60% 10.73 5.43%
Sep-16
Index
Aug-16
Country
Jul-16
Pakistan vs. Global Markets 5.40% 3.77% 3.72% 3.48% 3.23% 3.05% 2.94% 2.94% 2.94% 2.77%
Jun-16
Top 10 Holdings Oil & Gas Development Co Pak State Oil United Bank Nishat Mills Habib Bank Lucky Cement DG Khan Cement ICI Pakistan Engro Corporation MCB Bank
LEF Benchmark 6.70% 2.77% FY17 - YTD -0.45% -1.88% October-16 1.13% -1.82% 2 Months 0.95% -2.15% 3 Months 12.68% 10.14% 6 Months 18.06% 8.99% 12 Months 19.70% 15.41% CY16- YTD 80.34% 29.10% 3 Year 206.19% 104.26% 5 Year 255.33% 132.72% Since Inception *Returns based on last working day NAV **The benchmark of the Fund was changed in September 2016.
Apr-16
(*This Includes 0.15% representing Government levy, Workers' Welfare Fund and SECP Fee.)
PERFORMANCE
May-16
Total Expense Ratio (TER) TER 2.79%
As of October 31st, 2016 the LEF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 19.9 million. If the same were not made the NAV per unit of the LEF would be higher by PKR 0.72. If the LEF would not have made the WWF provisions during FY17, the year to date return of the LEF for FY17 would be higher by 0.00%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LEF.
Feb-16
Going forward, the Fund will rebuild its exposure as clarity emerges on the current political impasse. Exposure will be built in
WWW Disclosure
Open-End Equity Fund 3,381 121.9840 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 High Risk AM2 by PACRA (8.06.2016)
Mar-16
Exposure was reduced to mitigate the impact of any volatility due to an uncertain political scenario. Equity exposure was brought down to 65% in October from 85% in September. Exposure was reduced in Electricity, Chemicals and Cements with focus on stocks that had already rallied or looked fundamentally weaker.
fundamentally strong sectors such as pharmaceuticals, glass and steel where upside potential and conviction is high.
Jan-16
The LEF (-0.45%) significantly outperformed the benchmark (-1.88%) by 143 bps in October.
Nov-15
Performance Review
Fund Type Category Net Assets (PKR Mil.) NAV (31.10.2016) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark** Dealing Days Cut-Off Time Risk Profile Asset Manager Rating
Dec-15
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.
Oct-15
Investment Objective
INVESTMENT COMMITTEE Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah, CPFA , MIPA
October 2016
9
Lakson Tactical Fund
(Formerly: Lakson Asset Allocation Global Commodities Fund)
FUND FACTS
Investment Objective The investment objective of the Lakson Tactical Fund (Formerly: Lakson Asset Allocation Global Commodities Fund) is to provide long-term capital appreciation by investing in a mix of securities comprising debt, equity and commodities future contracts. Performance Review
WWW Disclosure
During the month of October 2016 the Lakson Tactical Fund generated an absolute return of 0.02% against the benchmark return of -0.35%. The Fund has under performed the benchmark by 0.52% over CY16TD. Allocation to TDRs, Equities and Cash was stable at 26%, 33% and 33% respectively. Going forward the Fund will look to minimize interest rate risk while maintaining a healthy exposure to equities.
As of October 31st, 2016 the LTF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 1.1 million. If the same were not made the NAV per unit of the LTF would be higher by PKR 0.08. If the LTF would not have made the WWF provisions during FY17, the year to date return of the LTF for FY17 would be higher by 0.00%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LTF.
Fund Type Category Net Assets (PKR Mil.) NAV (31.10.2016) Pricing Mechanism Trustee Auditor Management Fee
Open-End Asset Allocation Fund 1,393 106.1852 Forward Day CDC Pakistan Limited BDO Ebrahim & 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. 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 Medium Risk AM2 by PACRA (08.06.2016)
Front End Load Back End Load Launch Date Benchmark*
Total Expense Ratio (TER) TER 2.07%
(*This Includes 0.15% representing Government levy, Workers' Welfare Fund and SECP Fee.)
Top 10 Equity Holdings (%age of total assets) Securities Oil & Gas Dev. United Bank P.S.O. Nishat Mills Lucky Cement Habib Bank ICI Pakistan D.G.K. Cement MCB Bank Engro Corp
Oct-16 Weight 2.80% 1.98% 1.84% 1.77% 1.67% 1.67% 1.55% 1.51% 1.50% 1.32%
Sectorwise Exposure Sep-16
Oct-16
Oil & Gas
8.87%
7.76%
Banks
7.50%
7.51%
Cement
6.08%
4.85%
Fertilizers
2.46%
2.07%
Electricity
2.39%
2.00%
Others
5.56%
8.95%
Asset Allocation (% of Total Assets) Aug-16 Sep-16 Oct-16 T bills
3%
0%
0%
PIBs
1%
4%
4%
TFC
4%
5%
4%
Placements
33%
with Banks & DFIs
15%
26%
26%
Equity
30%
33%
33%
Cash
47%
32%
33%
PERFORMANCE LTF 3.47% 0.02% 0.84% 1.09% 5.01% 7.20% 7.13% 21.39% 36.62% 37.37%
FY17 - YTD October-16 2 Months 3 Months 6 Months 12 Months CY16-YTD 3 Years 5 Years Since Inception
Benchmark 2.33% -0.35% 0.02% 0.26% 5.48% 6.32% 7.65% 6.60% 25.07% 26.53%
*The benchmark of the Fund was changed in September 2016.
4% 4%
Asset Allocation
Dealing Days Cut-Off Time Risk Profile Asset Manager Rating
26%
PIBs TFC Placement with Banks (TDRs) Equity Cash
33%
LTF vs. Benchmark 144 139 134 129 124 119 114 109 104
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
Jul-16
Oct-16
Apr-16
Jan-16
Jul-15
Benchmark
Nil Nil
Oct-15
Apr-15
Jan-15
Jul-14
Oct-14
Apr-14
Jan-14
Jul-13
Oct-13
Apr-13
Jan-13
Jul-12
Disclosures Leverage as on October 31st, 2016 Non Performing Assets
Oct-12
99
LTF
INVESTMENT COMMITTEE Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah, CPFA , MIPA
October 2016
10
Lakson ISLAMIC Tactical Fund (Formerly: Lakson Asset Allocation Emerging Markets Fund)
FUND FACTS
Investment Objective 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
WWW Disclosure
During the month of October 2016 the Lakson Islamic Tactical Fund generated an absolute return of -0.23% against the benchmark return of 0.05%. The Fund has under performed the benchmark by 3.29% over CY16TD. Fund exposure is in Cash (83%) and Equities (17%). A build up in Shariah compliant equities and fixed income instruments will be targeted over 2QFY17.
As of October 31st, 2016 the LITF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 0.9 million. If the same were not made the NAV per unit of the LAAEMF would be higher by PKR 0.91. If the LAAEMF would not have made the WWF provisions during FY17, the year to date return of the LAAEMF for FY17 would be higher by 0.00%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LAAEMF.
Fund Type Category Net Assets (PKR Mil.) NAV (31.10.2016) Pricing Mechanism Trustee Auditor Management Fee
Open-End Asset Allocation Fund 100 99.8627 Forward Day CDC Pakistan Limited BDO Ebrahim & 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. 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 Medium Risk AM2 by PACRA (08.06.2016)
Front End Load Back End Load Launch Date Benchmark*
Total Expense Ratio (TER) TER 3.18%
(*This Includes 0.11% representing Government levy, Workers' Welfare Fund and SECP Fee.)
Asset Allocation (% of Total Assets) Aug-16 Sep-16 Oct-16
17%
Asset Allocation
Equities Cash
83%
Sectorwise Exposure Oct-16 Oil & Gas
3.09%
Cement
2.94%
Electricity
1.85%
Fertilizers
1.32%
Banks
0.43%
Others
7.01%
Equities
0%
0%
17%
(EM) Equities
0%
0%
0%
PIBs
20%
0%
0%
Cash
80%
100%
83%
Emerging Markets
Top 10 Equity Holdings (%age of total assets) Securities
Oct-16 Weight
Dealing Days Cut-Off Time Risk Profile Asset Manager Rating
PERFORMANCE LITF 0.17% -0.23% -0.15% -0.11% 1.15% 2.39% 2.43% 10.40% 30.16% 30.86%
FY17 - YTD October-16 2 Months 3 Months 6 Months 12 Months CY16-YTD 3 Years 5 Years Since Inception
K-Electric Ltd.
1.85%
Nishat Mills Ltd.
1.76%
Pak Oilfields.
1.38%
ICI Pakistan.
1.30%
Lucky Cement
1.20%
Millat Tractors
1.06%
134
Tariq Glass Ind.
1.05%
129
The Searle Co.
1.03%
124
Engro Corp.
0.92%
Pak Petroleum
0.85%
Benchmark 2.75% 0.05% 0.44% 1.27% 3.10% 4.39% 5.72% 7.92% 32.84% 37.28%
*The benchmark of the Fund was changed in September 2016.
LITF vs. Benchmark 144 139
119 114 109 104
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
Benchmark
Jul-16
Oct-16
Apr-16
Jan-16
Jul-15
Oct-15
Apr-15
Jan-15
Jul-14
Oct-14
Apr-14
Jan-14
Jul-13
Oct-13
Apr-13
Jan-13
Jul-12
Disclosures Leverage as on October 31st, 2016 Non Performing Assets
Oct-12
99
LITF
INVESTMENT COMMITTEE Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah, CPFA , MIPA
October 2016
11
Lakson Asset Allocation Developed Markets Fund FUND FACTS
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
WWW Disclosure
During the month of October 2016 the Lakson Asset Allocation Developed Markets Fund generated an absolute return of -0.40% against the benchmark return of -0.20%. The Fund has outperformed the benchmark by 2.98% over CY16TD. Allocation has been taken in T bills (38%), PIBs (33%) and Developed Market Equities (28%). Exposure in equities has been focused on US indices which offer a superior risk/return profile to other Developed Markets.
As of October 31st, 2016 the LAADMF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 2.5 million. If the same were not made the NAV per unit of the LAADMF would be higher by PKR 0.99. If the LAADMF would not have made the WWF provisions during FY17, the year to date return of the LAADMF for FY17 would be higher by 0.00%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LAADMF.
Fund Type Category Net Assets (PKR Mil.) NAV (31.10.2016) Pricing Mechanism Trustee Auditor Management Fee
Open-End Asset Allocation Fund 297 115.6028 Forward Day CDC Pakistan Limited BDO Ebrahim & 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. 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 Medium Risk AM2 by PACRA (08.06.2016)
Front End Load Back End Load Launch Date Benchmark
Total Expense Ratio (TER) TER 2.48%
(*This Includes 0.13% representing Government levy, Workers' Welfare Fund and SECP Fee.) Asset Allocation (% of Total Assets) Aug-16 Sep-16 Oct-16 Placements with
28%
Asset Allocation
38%
T-Bill PIBs DM Equities Cash
33%
Developed Markets Equities (Oct-16) QQQ ETF % of Asset Apple Inc 10.98% Microsoft Corp 8.38% Amazon.com Inc 6.72% Facebook Inc 5.46% Alphabet Inc 4.84% Alphabet Inc 4.29% Intel Corp 2.96% Cisco Systems Inc 2.77% Comcast Corp 2.67% Kraft Heinz Co/The 1.94%
Banks & DFIs
0%
0%
0%
T-Bills
29%
39%
38%
PIBs
32%
33%
33%
(DM) Equities
28%
29%
28%
Cash
11%
0%
1%
Developed Markets
Vanguard S&P 500 Apple Inc Microsoft Corp Exxon Mobil Corp Amazon.com Inc Johnson & Johnson Facebook Inc General Electric Co Berkshire Hathaway Inc AT&T Inc JPMorgan Chase & Co
% of Assets 3.23% 2.38% 1.92% 1.75% 1.71% 1.58% 1.41% 1.37% 1.32% 1.28%
Dealing Days Cut-Off Time Risk Profile Asset Manager Rating
PERFORMANCE LAADMF 2.05% -0.40% -0.02% 0.12% 4.25% 5.95% 6.33% 22.4% 52.3% 53.1%
FY17 - YTD October-16 2 Months 3 Months 6 Months 12 Months CY16-YTD 3 Years 5 Years Since Inception
Benchmark 2.08% -0.20% 0.26% 0.41% 2.17% 2.68% 3.35% 13.96% 52.16% 54.75%
*The benchmark of the Fund was changed in September 2016.
LAADMF vs. Benchmark 159 149 139 129
Weight
Vanguard S&P 500 (As of Oct-2016) Sector
Weight
95.11%
United States
96.83%
China
1.94%
Ireland
1.16%
Singapore
1.21%
Switzerland
0.48%
United Kingdom
0.72%
United Kingdom
0.45%
Netherlands
0.61%
Singapore
0.36%
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
Jul-16
Oct-16
Apr-16
Jan-16
Jul-15
Benchmark
Oct-15
Apr-15
Jan-15
Jul-14
Oct-14
Apr-14
Jan-14
Jul-13
Oct-13
Apr-13
Jan-13
99
LAADMF
INVESTMENT COMMITTEE
Disclosures Leverage as on October 31st, 2016 Non Performing Assets
109
Jul-12
United States
119
Oct-12
QQQ ETF (As of Oct-16) Country
Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah, CPFA , MIPA
October 2016
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
October 2016
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 KE T 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 ALLOCATION DEVELOPED M A R KE T 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
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 2010
FY 2011
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%
176.71%
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
October 2016
14
Mutual Funds Performance Comparison Annualized Returns (%): Positions as of November 01, 2016 INCOME FUNDS ABL Income Fund Atlas Income Fund Faysal Financial Sector Opportunity Fund Faysal Savings Growth Fund First Habib Income Fund HBL Income Fund JS Income Fund Lakson Income Fund MCB DCF Income Fund NAFA Financial Sector Income Fund NAFA Income Fund NAFA Income Opportunity Fund NAFA Savings Plus Fund NIT - Income Fund Pakistan Income Fund PICIC Income Fund UBL Income Opportunity Fund (UIOF)
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
3.76 4.05 (0.23) 1.49 6.02 4.63 5.17 5.50 4.81 5.66 5.63 4.33 5.36 5.22 5.21 4.48 5.61
4.66 4.14 0.92 2.78 6.14 3.64 6.33 5.28 4.66 6.21 6.80 5.27 5.51 4.54 4.60 4.02 3.95
6.20 6.54 4.45 4.61 5.75 4.02 7.76 6.27 5.02 5.91 6.84 6.80 5.63 4.95 4.77 5.59 8.47
5.83 6.39 4.81 5.14 4.96 4.40 7.27 6.20 4.89 6.14 6.70 6.72 5.84 5.05 4.65 5.79 7.74
5.83 6.22 4.31 5.05 4.83 4.33 6.98 6.35 4.82 6.14 6.74 6.74 5.93 5.16 4.54 6.37 7.71
5.33 10.07 4.50 3.53 8.42 4.99 9.15 6.33 4.53 10.96 5.85 4.50
5.32 7.20 4.56 4.40 6.37 5.44 6.11 5.23 4.72 7.38 5.46 5.00
5.33 6.41 5.35 4.62 5.52 5.99 5.51 4.64 4.60 6.57 5.39 7.14
5.44 6.26 5.34 4.59 5.62 6.07 5.59 5.03 4.87 6.12 5.44 7.07
5.6 5.21 5 4.72 5.3 6.45 4.65 4.96 5.17 6.11 5.51 6.16
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
5.08 4.43 5.04 5.24 4.94 5.41 5.12 3.75 4.90 5.32 4.85 5.05 5.38 5.38 5.54 5.63 5.26 5.12 4.74 4.57 4.41
5.54 4.41 4.75 5.00 4.88 5.25 4.95 3.77 5.27 5.19 4.61 5.24 5.26 5.10 5.36 5.95 5.23 5.11 4.79 4.97 4.69
5.86 4.79 5.02 5.31 5.06 5.38 5.14 3.95 5.55 5.20 4.77 5.29 5.45 5.34 5.53 6.16 5.37 5.58 5.04 5.52 4.94
5.66 4.91 4.97 5.24 5.12 5.54 5.27 4.04 5.46 5.15 4.70 5.38 5.51 5.26 5.65 6.25 5.46 5.56 5.22 5.34 4.85
5.65 5.04 5.04 5.29 5.14 5.61 5.34 4.05 5.52 5.16 4.78 5.42 5.49 5.38 5.69 6.21 5.58 5.64 5.59 5.31 4.95
4.92 4.32 4.47
4.93 4.26 4.54
4.90 4.19 4.70
4.85 3.95 4.58
4.78 4.13 4.54
ISLAMIC INCOME FUNDS ABL Islamic Income Fund Al Ameen Islamic Sovereign Fund Alfalah GHP Islamic Income Fund Askari Islamic Income Fund Atlas Islamic Income Fund Faysal Islamic Savings Growth Fund JS Islamic Government Securities Fund MCB Islamic Income Fund Meezan Islamic Income Fund Meezan Sovereign Fund NAFA Riba Free Savings Fund Pak Oman Advantage Islamic Income Fund MONEY MARKET FUNDS ABL Cash Fund AKD Cash Fund Alfalah GHP Cash Fund Alfalah GHP Money Market Fund Askari Sovereign Cash Fund Atlas Money Market Fund Atlas Sovereign Liquid Fund BMA Empress Cash Fund Faysal Money Market Fund First Habib Cash Fund HBL Money Market Fund JS Cash Fund Lakson Money Market Fund MCB Cash Management Optimizer NAFA Government Securities Liquid Fund NAFA Money Market Fund Pakistan Cash Management Fund PICIC Cash Fund PIML Daily Reserve Fund UBL Liquidity Plus Fund UBL Money Market Fund ISLAMIC MONEY MARKET FUNDS Al Ameen Islamic Cash Fund HBL Islamic Money Market Fund Meezan Cash Fund Note: NA - Not Available. Source: MUFAP.
LAKSON OUTLOOK
October 2016
15
Mutual Funds Performance Comparison Annualized Returns (%): Positions as of November 01, 2016 AGGRESSIVE INCOME FUNDS
30 DAYS
90 DAYS
180 DAYS
270 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 United Growth & Income Fund
5.34 4.72 1.86 3.94 (1.99) 2.42 (0.39)
6.15 4.67 3.69 4.30 0.76 2.81 1.78
6.44 6.99 4.67 6.67 5.01 4.72 10.82
7.75 6.57 5.55 7.93 6.50 4.63 12.12
8.56 6.83 5.98 8.67 5.9 4.67 10.96
4.97 5.44
4.92 5.36
6.23 6.12
7.19 6.28
7.06 6.6
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
(1.62) (2.78) (0.71) (0.86) (0.83) (0.37) (2.19) (1.97) (2.36) 0.94 (2.91) (1.84) (0.45) (0.36) (0.39) 0.00 (0.79) (2.19) (2.20) (2.26)
2.19 14.07 (0.22) (0.39) (1.89) 2.09 (0.46) (1.23) (2.43) 6.13 4.06 3.04 0.83 1.63 4.06 7.19 6.00 (1.71) 0.36 (0.97)
13.05 24.17 8.03 7.66 7.35 12.83 10.16 6.82 6.53 12.43 12.55 10.11 10.61 12.24 15.21 19.53 17.03 6.01 7.14 9.22
20.92 37.72 12.94 12.68 9.78 20.77 18.26 14.72 11.63 15.50 14.49 13.54 19.06 18.80 25.86 23.29 20.28 12.55 12.19 12.55
16.47 23.66 16.32 15.85 2.38 18.58 12.9 9.51 6.74 15.34 14.48 16.79 18.06 15.34 23.73 23.93 13.05 7.53 9.96 15.02
(2.53) (3.02) (1.52) (1.52) (3.19) (2.04) (1.55) (2.49)
(0.26) (3.01) (2.23) (2.02) (2.85) 6.45 (2.01) (1.98)
10.10 9.69 10.43 5.48 6.88 21.84 11.17 5.03
15.56 13.75 19.84 11.18 10.76 25.70 20.22 10.38
10.86 N/A 18.4 17.16 7.69 27.33 20.38 9.2
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
(0.26) (2.09) (0.22) 0.09 (2.91)
(1.89) (3.20) 3.66 2.16 1.49
3.83 4.98 13.05 10.49 6.96
2.49 8.15 19.68 14.79 7.47
-3.54 5.54 18.45 12.39 9.41
(2.01) (0.79)
(2.91) (1.33)
3.30 6.60
8.39 13.07
4.07 12.77
ISLAMIC AGGRESSIVE INCOME FUNDS Al Ameen Islamic Aggressive Income Fund NAFA Islamic Aggressive Income Fund EQUITY FUNDS ABL Stock Fund AKD Opportunity Fund Alfalah GHP Alpha Fund Alfalah GHP Stock Fund Askari Equity Fund Atlas Stock Market Fund First Capital Mutual Fund First Habib Stock Fund HBL Stock Fund JS Growth Fund JS Large Cap Fund JS Value Fund Lakson Equity Fund MCB Pakistan Stock Market Fund NAFA Stock Fund National Investment Unit Trust PICIC Energy Fund PICIC Stock Fund PIML Value Equity Fund United Stock Advantage Fund ISLAMIC EQUITY FUNDS ABL Islamic Stock Fund Al Ameen Islamic Dedicated Equity Fund Al Meezan Mutual Fund Alfalah GHP Islamic Stock Fund HBL Islamic Stock Fund JS Islamic Fund Meezan Islamic Fund PIML Islamic Equity Fund BALANCED FUNDS Faysal Balanced Growth Fund HBL Multi Asset Fund NAFA Multi Asset Fund Pakistan Capital Market Fund Unit Trust of Pakistan ISLAMIC BALANCED FUNDS First Habib Islamic Balanced Fund Meezan Balanced Fund
Note: NA - Not Available. Source: MUFAP.
LAKSON OUTLOOK
October 2016
16
Mutual Funds Performance Comparison Annualized Returns (%): Positions as of November 01, 2016 ASSET ALLOCATION FUNDS
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
(0.95) (0.96) (8.17) (0.27) 0.02 (0.48) (0.04) 0.09 (0.60) (0.45)
0.87 (2.10) (8.30) 0.18 1.01 1.10 0.93 4.05 (0.16) (0.14)
10.78 3.75 (5.12) 4.31 4.81 6.79 2.47 11.56 8.74 6.39
16.43 4.75 (3.90) 7.07 6.14 8.40 3.67 17.78 13.46 9.93
20.57 -2.39 -9.36 5.7 7.21 7.45 N/A 17.28 11.46 11.21
(0.44) (1.61) (0.23) (0.67) (0.68) (1.87)
(0.22) (2.23) (0.07) 1.04 (0.52) (0.52)
5.07 5.37 1.06 10.19 6.86 11.38
8.27 6.72 1.84 16.22 12.43 16.46
9.59 3.06 2.4 16.49 11.39 14.42
CAPITAL PROTECTED FUNDS
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
HBL Mustahekum Sarmaya Fund 1 JS Capital Protected Fund V Pakistan Sarmaya Mehfooz Fund
0.17 (0.08) (0.31)
1.54 1.46 0.43
3.49 N/A 2.74
5.28 N/A 3.61
6.45 N/A 3.46
(0.94) (0.59)
0.48 2.36
6.50 9.91
9.18 13.68
8.46 10.95
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 ISLAMIC ASSET ALLOCATION FUNDS Al Ameen Islamic Asset Allocation Fund Askari Islamic Asset Allocation Fund Lakson Islamic Tactical Fund NAFA Islamic Asset Allocation Fund Pak Oman Islamic Asset Allocation Fund Pakistan Int'l Element Islamic Asset Allocation Fund
ISLAMIC CAPITAL PROTECTED FUNDS NAFA Islamic Principal Protected Fund I NAFA Islamic Principal Protected Fund II
Note: NA - Not Available. Source: MUFAP.
LAKSON OUTLOOK
October 2016
17
Markets Information Equities TOTAL RETURN IN PKR AND %
MARKETS
INDEX
YTD
World
MSCI All Country World Index
2.9%
Developed
MSCI World Index
1.7%
3M
TOTAL RETURN IN USD AND %
1Y
5Y
YTD
3M
1Y
5Y
-1.2%
-0.1%
59.9%
2.9%
-1.2%
-0.1%
32.4%
-1.8%
-0.9%
67.8%
1.7%
-1.8%
-0.9%
38.9% -9.0%
Emerging
MSCI Emerging Markets Index
14.0%
3.6%
6.8%
9.9%
14.0%
3.6%
6.8%
Europe
MSCI Europe Index
-5.9%
-2.6%
-10.2%
29.0%
-5.9%
-2.6%
-10.2%
6.8%
China
CSI 300
-10.6%
4.1%
-5.6%
49.4%
-10.6%
4.1%
-5.6%
23.7%
Dubai
DFM
0.0%
0.0%
0.0%
238.2%
0.0%
0.0%
0.0%
180.0%
India
BSE Sensex 30
6.9%
-0.4%
4.8%
41.6%
6.9%
-0.4%
4.8%
17.3%
Japan
Nikkei 225
-8.5%
5.2%
-8.7%
52.3%
-8.5%
5.2%
-8.7%
26.1%
Malaysia
FTSE Bursa
-1.2%
1.2%
0.4%
-6.0%
-1.2%
1.2%
0.4%
-22.2%
Pakistan
KSE 100
21.6%
0.9%
16.4%
236.1%
21.6%
0.9%
16.4%
178.3%
Sri Lanka
Colombo All Share
-7.0%
0.2%
-9.0%
-13.6%
-7.0%
0.2%
-9.0%
-28.5%
UK
FTSE 100
11.4%
3.4%
9.3%
42.6%
11.4%
3.4%
9.3%
18.1%
US
DJIA
4.1%
-1.6%
2.7%
83.3%
4.1%
-1.6%
2.7%
51.8%
US
S&P 500
4.0%
-2.2%
2.3%
104.9%
4.0%
-2.2%
2.3%
69.6%
US
NASDAQ 100
4.5%
1.5%
3.3%
145.7%
4.5%
1.5%
3.3%
103.4%
Germany
DAX Index
-0.7%
3.2%
-1.7%
68.9%
-0.7%
3.2%
-1.7%
39.8%
CANADA
TSX 300 Composite Index
13.7%
1.4%
9.3%
10.1%
13.7%
1.4%
9.3%
-8.8%
France
CAC - 40
-2.8%
1.6%
-7.9%
35.2%
-2.8%
1.6%
-7.9%
12.0%
Brazil
Sao Paulo SE Bovespa Index
49.8%
13.3%
41.5%
-42.5%
49.8%
13.3%
41.5%
-52.4%
Korea
Korea SE Kospi
2.4%
-0.4%
-1.0%
19.5%
2.4%
-0.4%
-1.0%
-1.1%
Taiwan
Taiwan SE Weighted Index
11.4%
3.4%
8.6%
34.2%
11.4%
3.4%
8.6%
11.1%
Automobile and Parts
46.7%
-3.7%
58.2%
796.2%
46.7%
-3.7%
58.2%
642.1%
Banks
11.9%
4.9%
13.5%
142.7%
11.9%
4.9%
13.5%
100.9%
Chemicals
-5.2%
263.1%
-8.4%
69.1%
-5.2%
263.1%
-8.4%
40.0%
Construction and Materials
25.7%
-4.3%
27.9%
943.0%
25.7%
-4.3%
27.9%
763.6%
Electricity
-0.5%
-11.1%
-3.2%
199.2%
-0.5%
-11.1%
-3.2%
147.8%
Fixed Line Telecommunication
0.9%
9.2%
-4.5%
49.1%
0.9%
9.2%
-4.5%
23.5%
Food Producers
6.8%
16.5%
-7.5%
143.1%
6.8%
16.5%
-7.5%
101.3%
Oil and Gas
32.9%
5.1%
34.4%
33.3%
32.9%
5.1%
34.4%
10.4%
Personal Goods
23.0%
35.7%
19.2%
292.9%
23.0%
35.7%
19.2%
225.3%
-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
YTD
3M
1Y
5Y
China
SHIBOR
2.75%
2.82%
2.90%
3.03%
NA
2.89%
3.00%
3.50%
Dubai
UAE IBOR
0.76%
1.30%
1.58%
1.92%
NA
1.50%
1.31%
1.09%
India
MIBOR
7.68%
7.80%
NA
NA
NA
NA
NA
NA
Japan
TIBOR
0.03%
0.06%
0.11%
0.13%
0.14%
0.11%
0.16%
0.21%
Malaysia
KLIBOR
3.13%
3.40%
3.52%
3.62%
3.72%
3.53%
3.74%
3.79%
Pakistan
KIBOR
6.24%
6.04%
6.05%
6.38%
6.21%
6.04%
6.26%
7.07%
Sri Lanka
SLIBOR
10.53%
11.00%
11.51%
12.00% 10.15%
11.46%
9.68%
8.41%
UK
LIBOR
0.27%
0.40%
0.57%
0.81%
0.66%
0.54%
0.67%
0.69%
US
SIBOR
0.53%
0.88%
1.26%
1.58%
1.01%
1.23%
0.96%
0.69%
CURRENT MARKET YIELDS
GOVERNMENT SECURITIES
HISTORIC 12M PAPER RATES
Govt. Securities vs. KIBOR 8.00% 7.75% 7.50% 7.25% 7.00%
Govt. Sec.Oct 16
6.75% 6.50% 6.25% 6.00% 5.75% 5.50% 5.25% 5.00% 1W
1M
3M
6M
1Y
2Y
12M Yields of Government Securities
3M
12 M
5Y
10 Y
YTD
3M
1Y
2Y
China
2.63%
2.19%
2.47%
2.74%
2.26%
2.17%
2.29%
2.46%
India
8.31%
6.44%
#N/A
6.79%
6.89%
6.60%
6.94%
7.38%
Japan
-0.27%
-0.30%
-0.19%
-0.05%
-0.28%
-0.30%
-0.25%
-0.14%
Malaysia
2.62%
2.65%
3.31%
3.61%
2.67%
2.56%
2.71%
2.98%
Pakistan
5.79%
5.88%
6.96%
8.04%
6.01%
5.85%
6.06%
6.86%
Pakistan
Sri Lanka
11.00%
12.00%
NA
NA
10.62%
11.95%
10.13%
8.78%
Sri Lanka
UK
0.28%
0.22%
0.59%
1.25%
0.30%
0.16%
0.32%
0.38%
US
0.30%
0.64%
1.31%
1.83%
0.56%
0.59%
0.56%
0.40%
China India Japan Malaysia
UK US 0%
LAKSON OUTLOOK
Interbank Oct 16
3%
6%
9%
12%
October 2016
18
Markets Information Commodities CURRENT PRICE
TOTAL RETURN
COMMODITY
UNIT
YTD
3M
1Y
DB Commodity Index
USD Excess Return
12.5%
4.6%
-1.1%
-43.1%
310.7
S&P Global Commodity Index
USD Total Return
3.7%
4.4%
-13.7%
-54.2%
2251.4
Dow Jones UBS Commodity Index
USD Total Return
Coal
USD/Tonne
Copper
USc/lbs
5Y
8.3%
0.8%
-2.6%
-42.9%
171.5
114.6%
77.6%
104.7%
N.A
108.6
3.3%
-0.7%
-4.9%
-39.3%
220.5
Cotton
USc/lbs
8.8%
-7.1%
8.7%
-32.7%
68.9
Gold
USD/t oz.
20.1%
-5.6%
11.5%
-26.2%
1273.1
Palm Oil
USD/Tonne
18.2%
12.1%
26.4%
-31.2%
658.2
Sugar
USc/lbs
41.5%
13.2%
48.6%
-16.3%
21.6
Wheat
USD/Bushel (60Ibs)
-11.4%
2.1%
-20.3%
-33.7%
4.2
WTI
USD/bbl
26.5%
12.6%
0.6%
-49.7%
46.9
Brent Crude
USD/bbl
29.6%
13.8%
-2.5%
-55.9%
48.3
Heating Oil
USd/Gallon
35.9%
17.2%
-0.3%
N.A
149.6
RBOB Gasoline
USD/Gallon
14.4%
9.7%
3.2%
-45.2%
1.4
Natural Gas
USD/MMBTU
29.5%
5.2%
30.4%
-23.1%
3.0
Silver
USD/t Ozs
28.9%
-12.5%
14.3%
-48.2%
17.8
120
DBCI
SPGSCI
DJUBS
110 100 90 80 70 60 50 Oct-15
Dec-15
Feb-16
Apr-16
Jun-16
Aug-16
Oct-16
Currencies CURRENT EXCHANGE RATES
TOTAL RETURN
YTD
3M
1Y
5Y
190
GBP
Canadian Dollar
CAD
3.07%
-2.06%
-3.28%
-3.28%
CAD - PKR
78.14
Euro
EUR
1.02%
-1.56%
-0.54%
-0.54%
EUR - PKR
115.06
Indian Rupee
INR
14.58%
-2.24%
14.71%
14.71%
INR - PKR
1.00
Japanese Yen
JPY
14.58%
-2.24%
14.71%
14.71%
JPY - PKR
1.00
Pound Sterling
GBP
-16.92%
-7.05%
-21.16%
-21.16%
GBP - PKR
128.26
Singaporian Dollar
SGD
1.86%
-3.45%
-0.34%
-0.34%
SGD - PKR
75.32
US Dollar
USD
0.28%
0.21%
-0.36%
-0.36%
USD - PKR
105.03
CAD
USD
150 130 110 90 70 Oct-15 Dec-15
LAKSON OUTLOOK
EUR
170
Jan-16
Mar-16
Apr-16
May-16
Jul-16
Aug-16
Sep-16
October 2016
19
LAKSON OUTLOOK
October 2016
TRANSA CTION L OCATIONS 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
Decades of Seasoned Investment:
since 1954
Century Insurance
Lakson Business Solution
Century Paper Merit Packaging & Board Mills Limited
Accuray Surgicals
