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
SEPTEMBER 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 Asset Allocation Developed Markets Fund
12
14
17
FMR Lakson Asset Allocation Emerging Markets Fund
Mutual Funds Performance Comparison
Markets Information
4
Economic & Markets Review PAKISTAN
Economy September 2016 ended with SBP keeping its policy rate unchanged at 5.75% - in line with broader consensus; backed by rise in inflationary expectation (4.5%-5.5%YoY in FY17). CPI inflation clocked in at 3.9% YoY in Sep 2016, which is high compared to 3.6% in Aug 2016. On a month-on-month basis, it was up 0.2% in September as compared to a decline of 0.3% during Aug 2016. Food inflation picked up by 4.0%YoY in Sep 2016 compared to an incline of 3.4%YoY last month. The rebound in inflation is expected to continue in the coming months as international commodity prices recover and impact of low base effect fades off. Other macro indicators showed also improved in Aug 2016, where Large-scale manufacturing (LSM) increased by 2.6%YoY in July 2016. Private sector credit off-take continues to accelerate (up 10.5%YoY in Aug 2016 vs. 7.2% in Aug 2015) with impetus from Construction (+42%YoY), Chemicals (+18%YoY) and Telecommunication (+21%YoY). Net FDI flows during 2MFY17 clocked in at USD 112.6 mn, down 53.2%YoY. Other than this, current account balance posted a US$721 mn deficit in Aug 2016 (2.7% of GDP) against USD 595 million deficit in July 2016, led primarily by slowdown decline in remittances, lackluster exports and a rise in imports on account of higher machinery imports.
Yield Curve 11.5% 10.5% 9.5% 8.5% 7.5% 6.5% 5.5% 1W
In the PIB auction held on September 21st, the government raised a realized amount of PKR 219 billion, led by participation in 3-year tenor paper. Cut-off yields remained flat at 6.2%, 6.7% and 7.8% for 3-year, 5-year and 10-year, respectively. Major participation was observed in 3-year PIBs (PKR 122.5 billion), followed by in 5year (PKR 84.1 billion) and 10-year (PKR 12.4 billion); meanwhile, there was no participation in 20-year tenor paper.
6M
2Y
5Y
8Y
15Y
30-Sep-16
USD/PKR vs. Forex Reserves Forex Res. (USD bn.) - RHS USD/PKR
Fixed Income Review GoP raised PKR 219 billion through the last T-Bill auction in Sep 2016, led by participation in 3M t-Bills and followed by those of 12M t-bills. Cut-off yields remained flat, on average, during the month and stayed at 5.86%, 5.90% and 5.91% for 3M, 6M and 12M tenor government securities, respectively.
2M
31-Aug-16
21.0
105.0
20.0 104.0 19.0
103.0
18.0 1-Sep
8-Sep
15-Sep
22-Sep
29-Sep
Equities In September, although the KSE 100 gained 1.84% to reach an all-time high of 40,542 points, the KSE 30 gained only 0.07% to close at 26,469.91 points. The KSE 30 index, which includes 30 of the most liquid stocks in the market, suffered as investors' interest remained high in small cap stocks. Average volumes in the market rose 4% to reach 85.9 million shares per day, however, average daily traded value appreciated by 13% to reach $62.5 million per day. Foreigners (-$82.7 mn) and Individuals (-$19.2 mn) were net sellers during the month whereas NBFC (+1$18.3 mn), Companies (+$16.3 mn) and Mutual funds (+$7.8 mn) were net buyers. Foreigners were major sellers in Construction & Materials (-$30 mn), food ($13 mn) and chemicals (-$7.5 mn). The automobile sector (+33.3%) was the best performing sector on the back of aggressive automobile financing, expectation of new models and expansion by automobile parts manufacturers which created an expectation of a rise in earnings. Personal goods (+12.3%) continued their stellar performance as investors looked to benefit from a possible depreciation of Pakistani rupee which would boost exports. Utilities (+3.8%) continued rising on an anticipated gas price increase in H1FY17. Chemicals (-4.3%) continued to decline over fears of a supply glut due to higher imports and disappointing sales in the recent months. The Construction & Materials sector (-5.6%) was the worst performing sector amid fears of a price war in the sector triggered by the recent announcements of expansions by major players. The KSE 30's trailing 12 months (TTM) PE ratio has decreased to 10.2x and continues to trade at a substantial discount to regional markets such as China's Shanghai Composite Index which is trading at 17.5x and India's Sensex Index which is trading at 20.7x.
Market Rates 7.0%
6.0%
5.0%
4.0% 1-Sep 10-Sep 19-Sep 6M KIBOR O/N Repo Rate
28-Sep 6M T-Bill
CPI inflation continued to accelerate and was recorded at 4.2% .
5
Economic & Markets Review INTERNATIONAL
Developed Markets Developed market stocks performance remained a mix bag guided by key events during the month. The U.S. Federal Reserve decided to keep its interest rate unchanged in Sep 2016; however changing expectations regarding a possible hike kept equities volatile during the month. This also coincided with the Bank of Japan's monetary policy announcement where the Bank refrained from further easing to strengthen the Japanese yen against the US dollar (2%MoM depreciation). Near the month's end, OPEC's informal meeting helped recovery in equities on a surge in crude oil prices (WTI up 6.5%MoM) as the cartel now seems closer to capping oil production. However, growing apprehensions around the legal settlement of European Deutsche Bank with the US Government kept financials under pressure. U.S. equity benchmark S&P 500 lost 0.12%MoM in Sep 2016 while most European markets also closed the month lower (Euro Stoxx Index was down 0.7%MoM) with Germany's DAX Index losing 0.8%MoM. Going forward, key events to be tracked will be the US presidential debates and election and OPEC's next meeting to formalize the deal agreed upon last week.
Emerging Markets Emerging markets posted a relatively better performance during the month with the MSCI Emerging Index up 2.2%MoM in Sep 2016. This remained a function of greater interest in the EM space as the US and Japan monetary authorities announced favorable decisions. Weakness in dollar (DXY index -0.12%MoM) coupled with higher commodity prices (the TRJ-CRB commodity index rose 2.9%MoM in Sep 2016) proved favorable for EM stocks. Moreover, OPEC's meeting leading to an appreciation in oil prices near the month end solidified gains for the space. However, Asian big names China (-2.6%MoM continued concerns on economic recovery) and India (-2.1%MoM on geopolitical concerns) failed to follow the trend.
Performance of Equities and Commodities 140%
MSCI World Index MSCI EM Index DB Commodity Index
120%
100%
80%
60% Sep-15
Dec-15
Mar-16
Jun-16
Valuation of International Markets 24 20 16 12 8 4 -
DM
US
UK
Japan Canada EM
Brazil Russia India
P/E Multiple
Commodities September remained an eventful month for global oil markets as OPEC producers that met in Algeria on 28th Sep decided to support crude oil prices by cutting oil production for the first time in 8 years. Though details on the production cut remained sketchy, the news, as soon as it broke out, was met with fervor. Overall Nymex and Brent surged by 5.3% and 5.9%, respectively. Higher than anticipated draw down (biggest fall since 1999) in the crude oil inventory/refined products helped narrow the gap between Nymex and Brent. International coal prices continued their ascent, albeit at a slow pace during the month under review rising merely by 1.9% and closing at USD67.7/MT. Gold prices oscillated during September taking cues from FOMC meeting, rising initially when the Fed decided to hold interest rates but later on declined due to rate hike expectation in December 2016. Thus gold closed up merely 0.4% up at month end.
CPI inflation continued to accelerate and was recorded at 4.2% .
China
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 5.58% against the benchmark return of 5.27% in September 2016. The Fund outpeformed the benchmark by 0.31%. During CY16TD the Fund has returned 5.61% to unit holders against the benchmark of 5.20% and outperformed by 0.41%. Asset allocation changed with T bill allocation dropping to 25% while cash and placement exposure increased to 64% and 11% respectively. As a result portfolio WAM decreased to 28 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 September 30th, 2016 the LMMF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 53.0 million. If the same were not made the NAV per unit of the LMMF would be higher by PKR 1.16. 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 0.88%
Sales Tax 0.08%
SECP Fee 0.07%
Workers Welfare Fund -
11%
Asset Allocation
25%
64%
25%
Placements with Banks & DFIs T Bill Cash
Credit Split 64%
11%
Gov Sec AA+ AA
Asset Allocation Instruments (% of total Assets) Instruments Placements with Banks & DFIs PIBs T Bills Cash Others including receivables * Weighted Average Maturity
Jul-16 0% 0% 74% 25% 0%
Aug-16 10% 0% 61% 29% 1%
Sep-16 11% 0% 25% 64% 0%
WAM* days 137 0 53 0
Fund Type Category Net Assets (PKR Mil.) NAV (30.9.2016) Pricing Mechanism Trustee Auditor Management Fee
Open-End Money Market Fund 4,486 101.5007 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)
Front End Load Back End Load Launch Date Benchmark*
Dealing Days Cut-Off Time Fund Rating Risk Profile Asset Manager Rating
PERFORMANCE Morningstar FY17 - YTD September-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD Simple Annualized FY17 - YTD September-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD 3 Years 5 Years Since Inception
LMMF 5.49% 5.72% 5.47% 5.49% 5.64% 5.53% 5.65% LMMF 5.31% 5.17% 5.11% 5.31% 6.01% 6.84% 6.87% 11.60% 12.21% 14.28%
Benchmark 4.99% 5.40% 4.97% 4.99% 5.16% 5.33% 5.23% Benchmark 5.55% 6.05% 4.90% 5.55% 6.05% 6.44% 6.62% 13.34% 12.70% 12.01%
*The benchmark of the Fund was changed in February 2014 and September 2016.
LMMF vs. Benchmark Non Compliant Investments
Disclosures
Name on investment
Pak Brunei Inv. Co.
Type of instrument
COI
Leverage as on September 30th, 2016 Non Performing Assets WAM of Portfolio
Value of investment before provisioning
490,000,000
Total provision held
-
Nil Nil 28 Days
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 LMMF
Oct-15
Feb-16
after provisioning
490,000,000
INVESTMENT COMMITTEE
% of total assets
10.7%
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
Benchmark
September 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 September 2016 the LIF generated an annualized return of 5.17% against the benchmark return of 6.05%. The LIF underpeformed the benchmark by 0.88%. Over CY16TD the LIF has generated a return of 6.87% and outperformed the benchmark by 0.26%. Asset allocation changed with placements increasing to 33%, cash exposure dropping to 46% while corporate debt exposure was stable 14%. This meant that portfolio WAM increased to 424 days. Going forward the Fund will concentrate on building exposure to high quality corporate debt and bank placements.
As of September 30th, 2016 the LIF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 11.8 million. If the same were not made the NAV per unit of the LIF would be higher by PKR 0.29. 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.
Sales Tax 0.20% Placements with Banks & DFIs PIB TFC Sukuk Cash Others
33% 46%
SECP Fee 0.08%
Workers Welfare Fund 5%
1%
Asset Allocation 5% 4% 10%
15% 6%
Gov Sec AAA AA+ AA AAA+ A A-
3% 6% 2%
4%
Credit Split
57%
Asset Allocation Instruments (% of total Assets) Instruments Placements with Banks & DFIs PIBs T Bills TFCs Sukuks MTS Cash Others including receivables
Jul-16 18% 2% 2% 10% 1% 0% 65% 1%
Name of the Issuer NRSP PEL SUKUK Habib Bank Limited I Bank Al Falah Limited V Askari Bank Limited IV K-Electric AZ Sukuk III
Aug-16 23% 6% 2% 10% 4% 0% 54% 1%
Sep-16 33% 5% 0% 10% 4% 0% 46% 1%
WAM* days 179 2774 0 1848 586 0 0
Disclosures
TFCs/Sukuk Portfolio Issue Date
Rating
% of Total Assets
30-Jun-16 25-Aug-16
AA
3.11% 2.84%
19-Feb-16
AAA
2.66%
20-Feb-13
AA-
2.33%
23-Dec-11
AA-
2.02%
24-Feb-14
AA
1.49%
Leverage as on September 30th, 2016 Nil Non Performing Assets Nil WAM of Portfolio 424 Days
Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved.
LAKSON OUTLOOK
Open-End Income Fund 2,778 102.4928 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 2.03%
Fund Type Category Net Assets (PKR Mil.) NAV (30.9.2016) 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
Morningstar FY17 - YTD September-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD Simple Annualized FY17 - YTD September-16 2 Months 3 Months 6 Months 12 Months CY16 - YTD 3 Years 5 Years Since Inception
LIF 5.42% 5.29% 5.22% 5.42% 6.10% 6.84% 6.93% LIF 5.31% 5.17% 5.11% 5.31% 6.01% 6.84% 6.87% 11.60% 12.21% 14.28%
Benchmark 5.66% 6.22% 5.00% 5.66% 6.14% 6.44% 6.67% Benchmark 5.55% 6.05% 4.90% 5.55% 6.05% 6.44% 6.62% 13.34% 12.70% 12.01%
*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
Feb-16
Jun-16
LIF
INVESTMENT COMMITTEE Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah, CPFA , MIPA
September 2016
8
LAKSON EQUITY FUND FUND FACTS
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
WWW Disclosure
LEF generated a return of 1.59% for the last month of 1QFY17, outperforming the benchmark return of 0.07% for the same period. This brings FYTD return to 7.18% vs 4.75% for the benchmark, depicting a compfortable outperformance of 243bps. The fund reduced overall exposure as the market seemed bloated at its all time high level. LEF realised gains in Chemicals, Construction, OMCs, and Electricity. Proceeds were redeployed into sectors where the upside potential was seen to be improving, namely, Banks, Oil and Gas Exploration and Others.
As of September 30th, 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 0.76. 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.
General
-0.86% 12.43 4.0%
USA
DJIA
-0.50% 17.62 2.6%
USA
S&P 500
-0.12% 20.41 2.1%
1%
14%
11%
6%
Gov Sec AA+ AA
Asset Allocation
Sector wise Exposure
13% 7%
85%
18%
16%
Chemicals Comm Banks Const. & Mat Electricity Oil & Gas Exp Oil & Gas Mktg Others
Asset Allocation (% of Total Assets) Jul-16 Aug-16 Sep-16
Sectorwise Exposure Aug-16
Sep-16
Equities
88%
89%
85%
Chemicals*
12.65%
10.93%
T-Bills
0%
0%
0%
Comm Banks
17.30%
18.30%
Cash
11%
9%
14%
Const. & Mat.
19.60% 15.65%
Others
1%
1%
1%
Electricity
8.66%
Oil & Gas Exp
12.92% 13.46%
Oil & Gas Mktg
6.82%
5.82%
Others
11.38%
13.96%
Disclosures Leverage as on September 30th, 2016 Non Performing Assets
Nil Nil
500 450 400 350 300 250 200 150 100 50 0
LEF
KSE-100
KSE-30
7.05%
*Includes fertilisers
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
Sep-16
DFM
Jul-16
Dubai
Aug-16
Sensex 30 -2.06% 20.73 1.5% Malaysia FTSE KLCI -1.52% 17.87 3.1%
Jun-16
BSE
Apr-16
India
May-16
Pakistan KSE-100
Feb-16
1M P/E Div. Ret. Yield 1.84% 10.23 5.2%
Mar-16
Index
Jan-16
Country
Nov-15
Pakistan vs. Global Markets 7.01% 5.13% 4.93% 4.83% 4.79% 4.69% 4.33% 4.19% 4.04% 3.64%
Dec-15
14%
Workers Welfare Fund -
Oct-15
Top 10 Holdings Oil & Gas Development Co United Bank Limited Pakistan State Oil Limited DG Khan Cement Limited Lucky Cement Limited Habib Bank Limited Nishat Mills Limited Pak Petroleum Limited MCB Bank Limited Engro Corporation Limited
SECP Fee 0.10%
LEF Benchmark 7.18% 4.75% FY17 - YTD 1.59% 0.07% September-16 0.96% -0.73% 2 Months 7.18% 4.75% 3 Months 18.04% 18.83% 6 Months 25.51% 17.58% 12 Months 20.24% 17.63% CY16- YTD 86.69% 36.01% 3 YEAR 203.85% 105.51% 5 YEAR 256.94% 137.19% SINCE INCEPTION *Returns based on last working day NAV **The benchmark of the Fund was changed in September 2016.
Sep-15
Sales Tax 0.26%
Open-End Equity Fund 3,223 122.5393 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)
PERFORMANCE
Total Expense Ratio (TER) TER 2.79%
Fund Type Category Net Assets (PKR Mil.) NAV (30.9.2016) 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
INVESTMENT COMMITTEE Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah, CPFA , MIPA
September 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 September 2016 the Lakson Tactical Fund generated an absolute return of 0.83% against the benchmark return of 0.37%. The Fund has under performed the benchmark by 0.91% over CY16TD. Allocation to TDRs was increased to 26%, Equity exposure was stable at 33% while cash holdings dropped to 32%. Going forward the Fund will look to minimize interest rate risk while maintaining a healthy exposure to equities.
As of September 30th, 2016 the LTF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 1.2 million. If the same were not made the NAV per unit of the 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 (30.9.2016) Pricing Mechanism Trustee Auditor Management Fee
Open-End Asset Allocation Fund 1,393 106.1690 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)
Sectorwise Exposure Aug-16
Sep-16
Banks
5.88%
8.87%
Oil & Gas
3.79%
7.50%
Cement
8.07%
6.08%
Fertilizers
4.77%
2.46%
Electricity
2.68%
2.39%
Others
8.13%
5.56%
Equity
30%
34%
33%
Cash
47%
34%
32%
33%
119.00 114.00 109.00 104.00 99.00
Disclosures Leverage as on September 30th, 2016 Non Performing Assets
Benchmark
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
26%
124.00
Sep-16
19%
129.00
Apr-16
15%
134.00
Aug-16
& DFIs
139.00
Jul-15
with Banks
26%
Jan-16
Placements
Asset Allocation
Apr-15
5%
Oct-15
5%
LTF vs. Benchmark
Jul-14
4%
PIBs TFC Placement with Banks (TDRs) Equity Cash
Jan-15
TFC
32%
Oct-14
4%
Feb-14
0%
5%
Nov-13
3%
1%
May-14
3%
PIBs
Benchmark 2.68% 0.37% 0.61% 2.68% 6.62% 7.35% 8.02% 7.63% NA 26.97%
*The benchmark of the Fund was changed in September 2016.
4% 5%
Aug-13
T bills
LTF 3.45% 0.83% 1.09% 3.45% 5.05% 8.21% 7.11% 22.10% NA 37.35%
FY17 - YTD September-16 2 Months 3 Months 6 Months 12 Months CY16-YTD 3 Years 5 Years Since Inception
Feb-13
Asset Allocation (% of Total Assets) Jul-16 Aug-16 Sep-16
PERFORMANCE
Nov-12
2.75 2.00 1.92 1.87 1.85 1.74 1.68 1.58 1.55 1.41
May-13
Oil & Gas Dev. United Bank P.S.O. Lucky Cement D.G.K. Cement Nishat Mills Habib Bank MCB Bank Pak Petroleum Engro Corp
Dealing Days Cut-Off Time Risk Profile Asset Manager Rating
Aug-12
Top 10 Equity Holdings (%age of total assets)
Workers Welfare Fund -
Oct-11
SECP Fee 0.10%
Feb-12
Sales Tax 0.18%
May-12
TER 2.15%
LTF
INVESTMENT COMMITTEE Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah, CPFA , MIPA
September 2016
10
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 September 2016 the Lakson Asset Allocation Developed Markets Fund generated an absolute return of 0.38% against the benchmark return of 0.47%. The Fund has outperformed the benchmark by 3.20% over CY16TD. Allocation has been taken in T bills (39%), PIBs (33%) and Developed Market Equities (29%). Exposure in equities has been focused on US indices which offer a superior risk/return profile to other Developed Markets.
As of September 30th, 2016 the LAADMF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 2.7 million. If the same were not made the NAV per unit of the LAADMF would be higher by PKR 0.99. 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 (30.9.2016) Pricing Mechanism Trustee Auditor Management Fee
Open-End Asset Allocation Fund 297 116.0707 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 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 2.58%
Sales Tax 0.20%
SECP Fee 0.10%
Workers Welfare Fund -
Asset Allocation (% of Total Assets) Jul-16 Aug-16 Sep-16 Placements with
29%
Asset Allocation
39%
T-Bill PIBs DM Equities
Banks & DFIs
0%
0%
0%
T-Bills
29%
39%
39%
PIBs
32%
33%
33%
(DM) Equities
28%
28%
29%
Cash
11%
0%
0%
Developed Markets 33%
Developed Markets Equities (Sep-16) QQQ ETF % of Asset Apple Inc 10.77% Microsoft Corp 7.94% Amazon.com Inc 7.02% Facebook Inc 5.27% Alphabet Inc 4.72% Alphabet Inc 4.19% Intel Corp 3.16% Cisco Systems Inc 2.82% Comcast Corp 2.82% Amgen Inc 2.21%
Vanguard S&P 500 Apple Inc Microsoft Corp Exxon Mobil Corp Johnson & Johnson Amazon.com Inc Facebook Inc General Electric Co Berkshire Hathaway Inc AT&T Inc JPMorgan Chase & Co
% of Assets 3.06% 2.38% 1.91% 1.73% 1.57% 1.54% 1.52% 1.49% 1.33% 1.30%
Dealing Days Cut-Off Time Risk Profile Asset Manager Rating
PERFORMANCE LAADMF 2.46% 0.38% 0.53% 2.46% 4.02% 10.24% 6.76% 25.1% NA 53.8%
FY17 - YTD September-16 2 Months 3 Months 6 Months 12 Months CY16-YTD 3 Years 5 Years Since Inception
Benchmark 2.29% 0.47% 0.62% 2.29% 3.13% 6.23% 3.56% 16.62% NA 55.07%
*The benchmark of the Fund was changed in September 2016.
LAADMF vs. Benchmark 159.00 149.00 139.00 129.00
Weight
94.95%
United States
96.76%
119.00
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
Apr-16
Jan-16
Jul-15
Oct-15
Apr-15
Jan-15
Jul-14
LAADMF
INVESTMENT COMMITTEE
Disclosures Leverage as on September 30th, 2016 Non Performing Assets
Benchmark
Oct-14
0.35%
Feb-14
0.45%
Singapore
May-14
United Kingdom
0.61%
Nov-13
0.74%
Netherlands
Aug-13
United Kingdom
99.00
Feb-13
0.48%
May-13
1.15%
Switzerland
Nov-12
Ireland
1.21%
Aug-12
1.94%
Singapore
May-12
China
109.00
Oct-11
United States
Weight
Vanguard S&P 500 As of September 2016 Sector
Feb-12
QQQ ETF (As of Sep-16) Country
Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah, CPFA , MIPA
September 2016
11
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
September 2016
12
Lakson ISLAMIC Tactical Fund (Formerly: Lakson Asset Allocation Emerging Markets Fund)
FUND FACTS
Front End Load Back End Load Launch Date Benchmark*
Total Expense Ratio (TER) Workers Welfare Fund -
China
22.77%
South Korea
14.82%
Taiwan
12.15%
India
8.29%
Brazil
7.34%
0%
0%
80%
80%
100%
Emerging Market Equities
EEM Composition (As of Sep-16) Sector
Weight
Banks
14.52%
Internet
9.77%
Semiconductors
9.09%
Oil&Gas
6.28%
Telecommunications
6.27%
Disclosures Leverage as on September 30th, 2016 Non Performing Assets
Security
As of Sep-16 % of Assets
Tencent Holdings Ltd
3.83%
Taiwan Semiconductor
3.53%
Samsung Electronics Co
3.52%
Alibaba Group Holding L
2.87%
Naspers Ltd
1.84%
LITF vs. Benchmark
China Mobile Ltd
1.84%
China Construction Bank
1.55%
Baidu Inc
1.20%
134.00
Industrial & Commercia
1.15%
129.00
Hon Hai Precision Indus
0.95%
124.00
144.00 139.00
119.00 114.00 109.00 104.00 99.00
Benchmark
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
*The benchmark of the Fund was changed in September 2016.
Apr-16
Weight
0%
Cash
Benchmark 2.70% 0.39% 1.23% 2.70% 3.45% 6.73% 5.66% 10.29% NA 37.21%
Jun-16
EEM Composition (As of Sep-16) Country
(EM) Equities
LITF 0.40% 0.08% 0.13% 0.40% 1.45% 3.34% 2.67% 12.55% NA 31.17%
FY17 - YTD September-16 2 Months 3 Months 6 Months 12 Months CY16-YTD 3 Years 5 Years Since Inception
Sep-16
Emerging Markets
PERFORMANCE
Jan-16
0%
Jun-15
20%
Nov-15
20%
Aug-15
0%
PIBs
Jan-15
0%
0%
Mar-15
0%
0%
Oct-14
0%
T-Bills
Jul-13
Banks & DFIs
Feb-13
Cash
May-13
Asset Allocation
Dec-12
Placements with
Dealing Days Cut-Off Time Risk Profile Asset Manager Rating
Jul-12
Asset Allocation (% of Total Assets) Jul-16 Aug-16 Sep-16
100%
Apr-12
SECP Fee 0.10%
Sep-12
Sales Tax 0.12%
Jan-12
TER 3.56%
Mar-14
As of September 30th, 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 0.92. 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.
Aug-14
WWW Disclosure
During the month of September 2016 the Lakson Islamic Tactical Fund generated an absolute return of 0.08% against the benchmark return of 0.39%. The Fund has under performed the benchmark by 2.99% over CY16TD. Fund exposure is currently all in cash with a build up in Shariah compliant equities and fixed income instruments expected over 2QFY17.
Open-End Asset Allocation Fund 100 100.0951 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)
May-14
Performance Review
Fund Type Category Net Assets (PKR Mil.) NAV (30.9.2016) Pricing Mechanism Trustee Auditor Management Fee
Dec-13
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.
Oct-13
Investment Objective
LITF
INVESTMENT COMMITTEE Babar Ali Lakhani Chairman Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Maryam Hidayatallah, CPFA , MIPA
September 2016
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
September 2016
13
14
Mutual Funds Performance Comparison Annualized Returns (%): Positions as of October 04, 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
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
4.15 4.98 2.08 4.02 4.98 3.72 8.23 5.33 5.60 6.34 8.34 5.94 5.50 4.27 5.23 3.74 3.62
6.67 N/A 4.58 4.41 4.21 3.10 10.20 6.04 5.51 N/A N/A N/A N/A 5.17 5.32 4.47 5.84
5.85 6.53 4.28 4.45 4.53 3.69 7.52 5.83 4.62 5.87 6.69 6.90 5.66 4.45 4.34 4.88 8.37
6.07 6.74 5.33 5.71 4.86 4.44 7.30 6.58 4.94 6.17 6.81 6.88 5.92 5.17 4.76 6.75 7.82
6.19 6.85 5.25 5.66 5.02 4.47 6.88 6.82 5.25 6.17 6.79 7.09 5.96 5.18 4.75 6.93 7.3
5.12 4.49 4.53 4.37 5.26 4.10 4.65 4.03 4.55 5.04 5.27 4.91
6.21 5.83 5.09 5.63 N/A 8.12 4.43 4.53 6.11 5.92 N/A 9.44
5.10 5.40 4.89 4.37 4.93 5.99 4.65 4.26 4.47 5.39 5.28 7.11
5.50 5.35 5.52 4.62 5.15 6.55 4.68 4.66 4.81 5.15 5.39 7.31
5.7 4.66 5.04 4.84 4.97 6 4.07 4.81 5.54 5.55 5.42 5.97
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
5.87 4.43 4.61 4.83 4.95 5.28 5.05 3.94 5.48 5.32 4.43 5.07 5.24 4.97 5.31 6.01 5.20 5.03 5.06 4.83 4.71
5.37 4.66 5.31 5.77 4.99 N/A N/A 3.80 5.45 5.19 4.55 5.34 5.26 5.05 N/A N/A 5.15 5.17 4.99 5.07 4.91
5.85 4.89 4.98 5.26 5.17 5.49 5.26 3.98 5.59 5.13 4.69 5.32 5.50 5.25 5.54 6.19 5.40 5.59 5.14 5.50 4.95
5.74 5.00 4.97 5.22 5.14 5.54 5.27 4.07 5.57 5.11 4.69 5.44 5.56 5.26 5.68 6.34 5.48 5.59 5.36 5.38 4.90
5.72 5.11 5.07 5.31 5.19 5.66 5.4 4.11 5.57 5.18 4.82 5.48 5.49 5.43 5.68 6.22 5.63 5.75 5.65 5.39 5.02
4.99 4.19 4.50
4.76 4.24 4.71
4.79 4.01 4.68
4.80 3.98 4.56
4.78 4.14 4.53
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 INCOME FUNDS Al Ameen Islamic Cash Fund HBL Islamic Money Market Fund Meezan Cash Fund Note: NA - Not Available. Source: MUFAP.
LAKSON OUTLOOK
September 2016
15
Mutual Funds Performance Comparison Annualized Returns (%): Positions as of October 04, 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
5.39 4.89 3.83 4.69 2.87 4.85 5.03
7.58 5.26 5.51 5.12 4.25 3.85 14.63
6.39 6.54 4.75 6.45 5.79 4.30 11.53
9.28 7.28 6.17 8.68 7.54 5.22 13.17
9.09 7.36 6.69 9.47 7.05 5.67 13.13
4.33 5.22
6.82 N/A
5.89 6.14
7.39 6.36
7.35 6.78
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
4.91 9.76 3.10 3.12 2.24 3.66 3.68 3.52 2.91 4.65 7.55 4.33 4.05 3.22 5.50 6.63 4.78 3.72 3.16 3.91
10.58 26.41 6.22 5.91 4.85 N/A 9.00 6.94 7.12 N/A N/A N/A 7.59 8.89 N/A 12.92 12.68 7.93 9.02 7.61
20.09 37.64 14.09 13.95 13.61 19.50 17.92 13.58 12.79 15.52 18.84 16.69 15.50 19.49 22.73 24.03 22.54 12.65 11.55 15.89
23.85 36.44 15.21 14.93 9.99 23.25 22.14 17.40 14.68 16.17 20.94 18.42 21.19 20.13 28.16 23.99 22.55 16.45 16.62 14.39
23.92 34.53 21.91 21.56 7.96 25.19 21.09 15.32 13.75 20 N/A 26.12 24.52 22.98 29.11 31.28 16.69 12.39 17.05 23.29
4.29 3.46 3.20 2.33 2.78 9.29 3.50 3.10
8.61 7.19 6.44 2.82 7.59 N/A 7.20 6.02
15.95 15.70 17.23 11.00 13.10 26.58 18.42 8.82
19.30 19.08 22.63 14.79 14.68 31.32 23.24 15.06
17.11 N/A 26.31 23.62 15.59 36.17 28.7 16.46
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
0.83 2.25 4.28 2.97 3.60
3.55 3.44 N/A 6.42 8.65
5.88 9.42 17.94 13.85 12.46
1.72 9.46 21.52 15.17 12.95
15.55 10.71 21.57 15.85 17.34
1.69 1.72
3.42 4.08
7.74 10.74
10.62 14.65
7.44 17.15
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
September 2016
16
Mutual Funds Performance Comparison Annualized Returns (%): Positions as of October 04, 2016 ASSET ALLOCATION FUNDS
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
3.65 1.22 5.59 0.23 1.79 0.79 0.83 4.19 3.29 1.20
7.81 3.18 7.08 2.07 3.57 5.22 1.50 N/A 8.36 3.21
16.94 8.58 9.60 3.46 5.26 8.82 3.08 16.56 11.61 7.97
19.78 4.01 4.64 7.60 7.12 9.43 4.19 19.91 15.53 11.46
26.78 3.28 9.32 9.79 8.62 9.71 N/A 19.78 16.72 13.53
1.31 1.44 0.17 3.35 3.26 2.09
3.34 4.06 0.36 N/A 7.19 6.70
6.72 10.78 1.35 13.87 9.55 17.44
8.36 10.09 2.39 18.56 16.11 18.47
11.07 8.89 3.33 20.12 16.8 18.75
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
1.09 1.02 0.79
2.45 N/A 1.95
4.01 N/A 4.67
5.56 N/A 4.04
6.83 N/A 4.92
2.69 4.93
N/A N/A
9.90 13.55
11.17 15.79
11.21 14.33
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
September 2016
17
Markets Information Equities TOTAL RETURN IN PKR AND %
TOTAL RETURN IN USD AND %
MARKETS
INDEX
YTD
3M
1Y
5Y
YTD
3M
1Y
5Y
World
MSCI All Country World Index
4.8%
4.8%
9.7%
78.0%
4.8%
4.8%
9.6%
49.1% 56.3%
Developed
MSCI World Index
3.8%
4.4%
9.1%
86.6%
3.8%
4.4%
9.1%
Emerging
MSCI Emerging Markets Index
13.8%
8.3%
14.1%
22.5%
13.8%
8.3%
14.1%
2.6%
Europe
MSCI Europe Index
-2.7%
5.0%
-0.5%
47.8%
-2.7%
5.0%
-0.6%
23.8%
China
CSI 300
-12.8%
3.2%
1.6%
50.5%
-12.8%
3.2%
1.6%
26.0%
Dubai
DFM
0.0%
0.0%
0.0%
228.8%
0.0%
0.0%
0.0%
175.4%
India
BSE Sensex 30
6.7%
3.2%
6.6%
102.2%
6.7%
3.2%
6.5%
69.4%
Japan
Nikkei 225
-13.6%
5.6%
-5.4%
125.8%
-13.6%
5.6%
-5.4%
89.1%
Malaysia
FTSE Bursa
-2.4%
-0.1%
2.0%
42.2%
-2.4%
-0.1%
1.9%
19.1%
Pakistan
KSE 100
23.5%
7.3%
25.6%
244.7%
23.5%
7.3%
25.5%
188.7%
Sri Lanka
Colombo All Share
-5.2%
4.0%
-7.3%
14.9%
-5.2%
4.0%
-7.3%
-3.8%
UK
FTSE 100
10.5%
6.1%
13.8%
60.6%
10.5%
6.1%
13.8%
34.5%
US
DJIA
5.1%
2.1%
12.4%
100.3%
5.1%
2.1%
12.4%
67.8%
US
S&P 500
6.1%
3.3%
12.9%
128.8%
6.1%
3.3%
12.9%
91.6%
US
NASDAQ 100
6.1%
10.4%
16.6%
172.1%
6.1%
10.4%
16.6%
127.9%
Germany
DAX Index
-2.2%
8.6%
8.8%
128.1%
-2.2%
8.6%
8.8%
91.0%
CANADA
TSX 300 Composite Index
13.2%
4.7%
10.7%
51.3%
13.2%
4.7%
10.7%
26.7%
France
CAC - 40
-4.1%
5.0%
-0.1%
78.1%
-4.1%
5.0%
-0.2%
49.2%
Brazil
Sao Paulo SE Bovespa Index
34.6%
13.3%
29.6%
33.2%
34.6%
13.3%
29.5%
11.5%
Korea
Korea SE Kospi
4.2%
3.7%
4.1%
37.9%
4.2%
3.7%
4.1%
15.5%
Taiwan
Taiwan SE Weighted Index
9.9%
5.8%
12.1%
51.5%
9.9%
5.8%
12.0%
26.9%
Automobile and Parts
98.0%
102.7%
113.4%
1117.5%
98.0%
102.7%
113.4%
919.7%
Banks
11.6%
9.8%
13.2%
79.0%
11.6%
9.8%
13.2%
49.9%
Chemicals
-68.7%
-67.7%
-69.8%
-40.3%
-68.7%
-67.7%
-69.8%
-50.0%
Construction and Materials
-30%
-5%
20%
45%
70%
KSE SECTORS
30.6%
6.9%
32.9%
985.6%
30.6%
6.9%
32.9%
809.2%
Electricity
7.4%
1.2%
4.4%
197.1%
7.4%
1.2%
4.4%
148.9%
Fixed Line Telecommunication
-0.9%
7.3%
-6.2%
38.7%
-0.9%
7.3%
-6.2%
16.2%
Food Producers
-6.2%
-8.8%
-18.7%
101.7%
-6.2%
-8.8%
-18.7%
69.0%
Oil and Gas
31.6%
3.2%
33.1%
36.7%
31.6%
3.2%
33.1%
14.5%
Personal Goods
-8.5%
-10.4%
-11.3%
170.5%
-8.5%
-10.4%
-11.3%
126.6%
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
2.74%
2.80%
2.89%
3.03%
NA
2.92%
3.03%
3.57%
Dubai
UAE IBOR
0.76%
1.27%
1.51%
1.81%
NA
1.44%
1.27%
1.06%
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%
0.17%
0.22%
Malaysia
KLIBOR
3.13%
3.40%
3.52%
3.63%
3.74%
3.56%
3.77%
3.80%
Pakistan
KIBOR
6.25%
6.04%
6.06%
6.36%
6.23%
6.03%
6.30%
7.24%
Sri Lanka
SLIBOR
10.50%
11.00%
11.46%
11.98%
9.99%
11.19%
9.32%
8.21%
UK
LIBOR
0.27%
0.38%
0.53%
0.76%
0.67%
0.55%
0.69%
0.70%
US
SIBOR
0.53%
0.85%
1.24%
1.55%
0.99%
1.15%
0.90%
0.65%
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. Sep 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%
2.21%
2.56%
2.74%
2.27%
2.21%
2.31%
2.51%
India
8.31%
6.55%
NA
6.82%
6.93%
6.70%
7.00%
7.45%
Japan
-0.40%
-0.35%
-0.25%
-0.09%
-0.27%
-0.29%
-0.22%
-0.13%
Malaysia
2.58%
2.58%
3.24%
3.55%
2.68%
2.56%
2.74%
3.02%
Pakistan
5.79%
5.86%
6.79%
7.89%
6.03%
5.83%
6.10%
7.03%
Pakistan
Sri Lanka
11.00%
11.98%
NA
NA
10.46%
11.65%
9.76%
8.57%
Sri Lanka
UK
0.32%
0.14%
0.22%
0.75%
0.31%
0.15%
0.35%
0.39%
US
0.27%
0.59%
1.15%
1.59%
0.55%
0.54%
0.52%
0.37%
China India Japan Malaysia
UK US 0%
LAKSON OUTLOOK
Interbank Sep 16
3%
6%
9%
12%
September 2016
18
Markets Information Commodities CURRENT PRICE
TOTAL RETURN
COMMODITY
UNIT
DB Commodity Index
USD Excess Return
YTD
3M
1Y
13.1%
-1.6%
0.1%
5Y
120
-38.5%
312.3
S&P Global Commodity Index
USD Total Return
5.3%
-4.2%
-12.2%
-49.0%
2285.6
Dow Jones UBS Commodity Index
USD Total Return
8.9%
-3.9%
-2.6%
-38.8%
172.4
100
Coal
USD/Tonne
42.7%
26.8%
34.1%
N.A
72.2
Copper
USc/lbs
3.5%
0.7%
-5.6%
-29.9%
221.1
90
USc/lbs
7.9%
8.7%
14.8%
-30.8%
68.3
Gold
USD/t oz.
23.9%
-0.6%
17.7%
-19.0%
1313.3
70
Palm Oil
USD/Tonne
20.6%
11.8%
27.8%
-26.7%
672.1
Sugar
USc/lbs
47.8%
11.8%
85.1%
-14.5%
22.5
60
Wheat
USD/Bushel (60Ibs)
-14.5%
-6.8%
-21.6%
-34.0%
4.0
WTI
USD/bbl
30.2%
-0.2%
7.0%
-39.1%
48.2
Brent Crude
USD/bbl
31.6%
-1.2%
1.4%
-52.3%
49.1
Heating Oil
USd/Gallon
38.8%
2.9%
1.0%
N.A
152.8
USD/Gallon
17.4%
-0.9%
7.1%
-43.4%
1.5
Natural Gas
USD/MMBTU
24.3%
-0.6%
15.1%
-20.7%
2.9
Silver
USD/t Ozs
39.2%
3.4%
32.3%
-36.1%
19.2
SPGSCI
DJUBS
80
Cotton
RBOB Gasoline
DBCI
110
50 Oct-15
Dec-15
Feb-16
Apr-16
Jun-16
Aug-16
Currencies CURRENT EXCHANGE RATES
TOTAL RETURN
YTD Canadian Dollar
CAD
5.01%
3M
1Y
-1.78%
1.47%
5Y -4.48%
CAD - PKR
79.61
190
Euro
EUR
3.15%
0.99%
0.64%
0.28%
EUR - PKR
117.49
170
Japanese Yen
JPY
18.19%
1.57%
18.34%
-9.24%
JPY - PKR
1.03
Pound Sterling
GBP
-12.14%
-2.72%
-14.16%
-14.16%
GBP - PKR
135.64
150
Singaporian Dollar
SGD
3.67%
-1.42%
4.39%
14.52%
SGD - PKR
76.66
130
US Dollar
USD
-0.26%
-0.28%
0.00%
19.38%
USD - PKR
104.46
110
GBP
EUR
CAD
USD
90 70 Sep-15
LAKSON OUTLOOK
Dec-15
Mar-16
Jun-16
Sep-16
September 2016
19
LAKSON OUTLOOK
September 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