cio’s comments - awtinvestments.com manager report (february...december 2014, while on the ˜ip...

CIO’s COMMENTS

Fund Manager’s Report - February 2015

Economic Snapshot

Key Economic Indicators

Equity Market Review

Money Market ReviewMacroeconomic indicators continued to improve during the month. Key improvements witnessed were 1) Lower CPI in�ation 2) improvement in BoP situation 3) smooth progress in IMF review for Sixth tranche of loan.

CPI in�ation for the month clocked in at 3.24% YoY as compared to 3.88% in the month of January. CPI for the 8MFY15 averaged to 5.45% against 8.65% in the same period last year. On MoM basis CPI dropped by 0.9%, mainly attributable to lower food in�ation (down 2% MoM) and transportation head (down 3% MoM).

Country’s C/A posted a minor de�cit of USD 95mn in Jan-15 as compared to a surplus of USD 226mn during Dec-14. The key factor for the de�cit was drop in workers’ remittances in January. However on a positive side, trade de�cit declined by 13% during the month. Trade de�cit fell below USD 1bn in Jan-15 for the �rst time since Mar-12. Persistent decline in oil import bill played a key role in curtailing trade de�cit. For 7MFY15, C/A de�cit clocked in at USD 2.3bn as compared to USD 2.5bn during the same period last year. Increase in worker’s remittances and higher CSF payments were more than o�set by higher trade de�cit and interest payments. As per news reports, Pakistan has received USD 716mn under CSF payments which is likely to push C/A balance back into surplus in Feb-15. Overall balance of payments registered a surplus of USD 127mn in January against a de�cit of 1.38bn in December 2014, while on the �ip side BoP registered a de�cit of USD 358mn for the period 7MFY15 against a surplus of USD 2.2bn in the corresponding period last year.

Foreign exchange reserves of the country have increased by 5% during the month and reached to the level of USD 15.9bn against USD 15.16bn in the previous month. In�ows worth USD 716mn were the main reason behind the rising reserves. Expected in�ows from IMF and privatization of SOEs will further improve the reserves of the country. We expect key macros to show further improvement on the back of lower oil import bill, higher foreign in�ows (IMF & Privatization proceeds) and lower DR (owing to subdued CPI). Furthermore, lower DR will also spur the economic growth of the country.

SBP conducted two t-bill auctions during the month. Target for the �rst auction held on February 06, 2015 was PKR 150bn, against which the SBP generated PKR 105bn. Cut o�yields for 3 month, 6 month and 1 year were 8.4259%, 8.4681% and 8.3883% respectively. Target for the second auction held on February 19, was PKR 50bn, against which the government raised 73bn. Cut o� yields for 3 month and 6 month and 1 year were 8.3707%, 8.3780% and 8.2947 respectively. SBP also conducted PIB auction on February 26th, in which the government borrowed PKR 66bn against the target of PKR 15bn. Cut o� yield set for 3yr, 5yr and 10yr PIBs were 8.4980%, 9.1418% and 9.8003% respectively.

The benchmark index shed 2.36% during the month of February after earning outstanding return of 7.2% in the previous month. The index dropped despite improving macros (Lower CPI, Improving CAD and satisfactory progress of IMF reviews) and at a time when most of the frontier and regional markets showed strong performance. The negative performance of the index can be attributed to sector speci�c news and foreign selling (including one of selling of 776mn shares of KEL, sold by its sponsors).KSE-100 index yielded FYTD return of 13% and CYTD return of 4.7%. The trading volumes dropped by 23% during the month. Foreign out�ows of the month stood at USD 62.5mn, absorbed by local Mutual funds (net buying of USD 41.4mn) and companies (net buying of USD 14.4mn), where as bank were net sellers of USD 17.93mn during the month.Sector speci�c news that which dragged the index down were resurfacing of DGKC’s expansion plans, rising the concerns regarding margins and earnings of the sector, Banks’ spread has shrank to 5.8% during 7MFY15, as compared to 6.2% in the same period last year. Benign CPI numbers have spurred the concerns regarding further DR cut.Sector wise performance shows that Financial sector (+2.3%), Electricity (+1.8%), Automobiles (+1.7% on better volumes) and oil & Gas (-0.1% on stable prices ) sector outperformed the Index whereas Fixed line telecom (-10.1% on uncertainty if ICH), banks (-4.8% on shrinking spread), cements (-4.4% on expansion projects) and food producers (-2.9% on new regarding increase in import duty on powdered milk) underperformed the market.Outlook: Result season has almost ended, but equity market can get its triggers from expected foreign in�ows from IMF, privatization of HBL and any news regarding rebounding oil prices. Following a cut of 100bps in DR in January, another 50-100bps cut can be expected in the remaining two monetary policies of this �scal year, which will bode well for the growth of economy and pro�tability of corporate sector.

As anticipated in our previous commentary, the market corrected itself and is now treading in a consolidation phase. While market appears to have peaked on an absolute basis it is trading at a discount compared to valuations witnessed in 2008. The continued low in�ation �gures and declining interest rates also support further upside in market valuations. However, this does not ensure further gains as the increased volatility requires increased focus on value and growth investments

Angst over valuations is exacerbated by the fall in commodity prices and what it suggests about global growth. The global economic recovery has been subpar, but the bull market has been spectacular. The problems surrounding the investment of individual investors can be broadly summarized as a combination of various wealth and/or consumption goals, subject to a set of budgets, de�ned in terms of initial wealth and future income, as well as risk budgets such as maximum drawdown limits. It is important to note that the success or failure of the satisfaction of these goals subject to rupee and risk budgets does not critically depend upon the stand-alone performance of a particular fund nor that of a given asset class. It depends instead upon how well the performance on the investor's portfolio dynamically interacts with the risk factors impacting the investor's future goals. Therefore, the key challenge for �nancial advisors is to implement dedicated investment solutions aimed at achieving the risk and return objectives of the investors in changing market scenarios.

On the international front:The crude oil crash is dramatic—but not unprecedented. Falls of similar magnitude in the past had stimulated consumer spending, helping to reinvigorate global economic growth. Soft global demand and a strong U.S. dollar have aided in the downside of price, but supply glut is the root cause of the decline. Saudi Arabia being the largest oil producer is determined to keep pumping oil under new leadership to retain its market share.

However, oil prices posted a return of 25% MoM in February raising the hopes that oil prices may have bottomed out. This has led to increased FIPI in Frontier markets which performed positively in the outgoing month with the exception of Pakistan which witnessed a net out�ow of $62.47 million which includes a sale of stake in KEL by the sponsor and was the only Frontier market providing negative returns.

Cheap energy is a game changer for monetary policy in oil-importing nations, especially in emerging market (EM) economies. It reduces in�ation, giving central banks room to ease rates gently. Low oil prices also reduce the costs of energy and food subsidies, providing �scal relief. The massive wealth transfer is set to boost economies to varying degrees. And it is sure to amplify economic and market divergences in the world. Winners in this climate should be global consumers, oil importers, and the transport and retailing industries.

Key factors to monitor in the shortermThe major factors to monitor in the upcoming month include the in�ation �gure, monetary policy announcement by the SBP, SPO of GoP stake in HBL, upcoming senate elections on March 5, 2015.

We believe it ’s our responsibility to help investors of all sizes, to succeed in the New World of Investing. We were built to provide the global market insight, breadth of capabili-ties, unbiased investment advice and deep risk management expertise these times require. Investing with PRIMUS gives you access to every asset class and investment style, as well as extensive market intelligence and risk analysis, to help build the dynamic, diverse portfolios �exible with the changing times.When you invest with PRIMUS, you invest with con�dence. We believe in a disciplined and methodical approach to investing. It is the foundation of everything we do and the best way to create long term value for investors. PRIMUS is one of the top mutual fund companies in Pakistan whose strength and credibility have made it one of the most respected �nancial institutions.

We will do our best to re�ect all this in positioning the savings and investments you have entrusted to us to manage. We will be emphasizing the importance of economic growth and work very hard to identify opportunities that remain attractive. We will seek to navigate this environment for you by maintaining a higher degree of operational agility and a solid dose of resilience.

Thank you for the trust you have placed in us. We value your con�dence, and will continue to work diligently to meet your expectations. If you have any query regarding any of your PRIMUS funds investments please contact your account manager at 0092-213-529-0006. We also invite you to visit our website www.primusinvestments.com to learn more about our fund, views and thought leadership.

Feb-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15External Sector IndicatorsOverall Balance of Payments USD million 916 916 1,049 2200 1,398 507 348 379 -394 308 258 -1386 127 n.aCurrent Account Balance USD million 164 164 (156) (111) (57) -89 -773 -560 -79 -223 -475 -226 -95 n.aExports USD million 2,074 2,074 2,152 4,197 2,088 2097 1900 1886 2195 2090 1873 2271 2033 n.aImports USD million 3,142 3,136 3,382 3,278 3,591 3317 4002 3906 4002 3528 3095 3349 2969 n.aWorker's Remittances USD million 1210 1,210 1,337 1,216 1,438 1166 1649 1329 1717 1383 1321 1583 1377 n.aForeign Direct Investment USD million 79 79.2 63.5 81.1 610.9 188.6 24 63 82 254 21 106 16 n.aForeign Portfolio Investment USD million 1 1.1 -5.4 2,115 122 403 67 19 56 5 36 946 15 n.aForex Reserves USD billion 8.74 8.74 10.07 12.18 13.47 13.57 14.30 13.58 13.51 13.44 13.21 14.94 15.16 15.84Exchange Rate against PKRUSD Period End 105.29 105.39 99.97 98.79 98.59 98.75 98.65 101.86 102.63 102.82 101.88 100.55 101.29 101.98Inflation IndicatorsGeneral CPI YoY change 7.9% 7.9% 8.5% 9.2% 8.3% 8.2% 7.9% 7.0% 7.7% 5.8% 4.0% 4.3% 3.9% 3.2%Food CPI YoY change 5.8% 7.6% 9.3% 9.9% 7.4% 7.4% 7.0% 5.6% 7.2% 5.2% 2.1% 3.4% 3.0% 6.5%Core (NFNE) YoY change 7.8% 7.8% 7.6% 8.5% 8.7% 8.7% 8.3% 7.9% 8.0% 7.8% 6.9% 6.7% 6.4% 6.2%Core (Trimmed) YoY change 8.1% 8.1% 8.1% 9.0% 8.3% 7.9% 7.6% 7.1% 7.1% 6.0% 5.3% 5.2% 4.8% 4.2%Monetary GrowthBroad Money (M2) YoY growth 12.9% 12.9% 11.9% 12.7% 11.5% 12.3% 15.6% 10.6% 10.0% 11.2% 9.8% 10.2% 10.7% 10.7%GoP's Borrowing from SBP YoY growth 64.2% 64.2% 35.1% 32.2% 7.7% 19.2% 14.5% -12.3% -24.6% - -23.7% -32.9% -30.4% -37.6%Pvt. Sector Credit YoY growth 4.4% 4.4% 4.0% 5.3% 8.1% 7.9% -0.8% 11.6% 11.2% - 9.9% 7.9% 7.4% 6.7%Interest RatesSBP Policy Rate Current 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 9.50% 9.50% 8.50% 8.50%6 Month KIBOR Month Avg. 10.14% 10.13% 10.18% 10.20% 10.17% 10.17% 10.17% 10.18% 10.18% 10.19% 9.86% 9.65% 9.24% 8.50%12 Month KIBOR Month Avg. 10.44% 10.43% 10.47% 10.45% 10.44% 10.45% 10.45% 10.48% 10.50% 10.50% 10.14% 9.95% 9.44% 8.77%3 Month T-Bill Yield Month Avg. 9.92% 9.95% 10.01% 9.97% 9.96% 9.95% 9.94% 9.96% 9.95% 9.94% 9.64% 9.48% 8.91% 8.37%6 Month T-Bill Yield Month Avg. 9.96% 9.97% 10.00% 9.98% 9.98% 10.00% 10.00% 10.01% 10.01% 9.97% 9.64% 9.48% 8.81% 8.34%12 Month T-Bill Yield Month Avg. 10.00% 9.99% 10.00% 10.00% 10.01% 10.05% 10.06% 10.07% 10.07% 10.02% 9.68% 9.47% 8.78% 8.29%10 Year PIB Yield Month Avg. 12.81% 12.80% 12.81% 12.81% 12.85% 13.01% 13.10% 13.28% 13.39% 13.10% 11.84% 11.70% 10.24% 9.87%

Source: SBP, MoF, PBSn.a.=Not Available

Fund Manager’s Review

Portfolio Allocation (as % of total assets)Fund Objective

Fund Details

Investment Committee Members

Fund TypeCategoryFund Stability RatingBenchmark

Inception DateDealing DaysCut-o� TimePricing MechanismManagement FeeLoadRisk Pro�leListing

Trustee

AuditorLegal AdvisorFund Manager

Open End

Management Co. Rating AM3 by JCR-VIS (18 November 2014)

Money Market

Portfolio Allocation (as % of total assets)

Feb‘15

Jan‘15

Cash at BanksPlacements with DFIsPlacements with Banks

Total

T-Bills

Others including receivables

Feb‘1521.18%24.15%0.00%

100.00%

53.58%

1.10%

Credit Quality of Portfolio (as % of total assets)

AAA (Government Securities)AAAAA+

NR (Others including receivables)Total

Feb‘1553.58%

0.05%24.23%

1.10%100.00%

AA 21.05%

Reverse Repo against Govt. Securities 0.00%

Jan‘1522.80%24.46%0.00%

100.00%

51.93%

0.81%

Jan‘1551.93%

0.08%24.54%

0.81%100.00%

22.64%

0.00%

AA+ by PACRA (21 July 2014)

50% 3 months PKRV + 3 months average

Adnan SiddiquiRahaila AleemM. Ali KazmiSalman Kazmi

CEOCFO & Company SecretaryChief Investment O�cerFund Manager

Asif IqbalAli Kamal

Head of Risk & ComplianceHead of Research

Fund StatisticsNet Asset (PKR mn)

WWF Disclosure

NAV per Unit (PKR)Weighted Average Maturity (days)Sharpe Ratio *

2,132.836106.41573.1056

Information RatioStandard Deviation ** Annualized

0.56040.388%

deposit rate of AA & above rated Banks

1st January 2013Daily (days when Banks are open for business)

4.00 pmForward0.45%0% (Front-end) 0% (Back-end)Low RiskIslamabad Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.

Mohsin Tayebaly & Co.Salman Kazmi

PIML Daily Reserve Fund posted an annualized return of 8.26% against the benchmark return of 7.21% for February 2015, outperforming by 104 basis points. Our active management has led the fund to outperform the benchmark consistently since August 2014. Also the fund recorded 9.87% return since inception, outperforming the benchmark return since inception by 155 basis points. Moreover, the fund secured second position amongst its respective category on YTD and MTD basis.

During the month, holding in treasury bills was increased by approximately 2% of net assets. Anticipating a decreasing interest rate scenario we deployed our placements in longer tenors before the interest rate decrease, which has helped the fund enhance its returns. We intend maintain and reposition the portfolio in accordance with the market conditions, while maintaining greater exposure in government securities, seeking opportu-nities to maximize the returns.

The objective of the fund is to generate consistent returns with minimal risk by investing primarily in Government Securities, cash and near cash instru-ments

* Please note that WWF liability for PRIMUS Daily Reserve Fund till the close of �nancial year ended June 30, 2013 since inception will be borne by the management company *The scheme has maintained provision against Worker’s Welfare Fund’s liability to the tune of Rs.12,158,034 if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.6066/ 0.86% enhancing the YTD return to 9.34% p.a”

M.Yousuf Adil Saleem & Co. ‘Chartered Accountants’

Fund Performance

*Simple Annualized **Morning Star***Average of reporting period n.a = not applicable

Fund Manager’s Report -February 2015PIML - Daily Reserve Fund (Formerly: Primus Daily Reserve Fund)

“MUFAP’s Recommended Format”


0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%Benchmark PDRF

Placements with DFIs24.15%

T-Bills53.58%

Cash at Bank21.18%

Others including receiveables (NR)1.10%

PDRF* PDRF** Benchmark***Since Inception 9.87% 9.36% 8.32%12M Trailing 9.40% 9.40% 8.48%FYTD 9.34% - 8.39%Jan-15 10.22% 10.71% 7.62%Feb-15 8.26% 8.58% 7.21%

Placements with DFIs

24.46%T-Bills51.93%

Cash at Bank22.80%

Others including receivables (NR)

0.81%

Details of Non-Compliant Investments

Pak Oman Investment Company LOP 320,000,000 - 320,000,000 10.00% 14.86% 15.00%* Note: The Non-Compliance is due to reduction in the Fund size

Limit % of Gross Asset

% of Net Asset

Name of Non-Compliant Investment Type of Instrument

Value of Investment

before

Provisioning held (if any)

Value of Investment after

Provisioning



Fund Details


Fund TypeCategoryFund Stability Rating

Benchmark


Trustee


Open EndIncome Scheme


Placements with Banks

Cash at Bank

T-Bills

Total

Feb‘15

Feb‘15

Feb‘15

0.00%

20.44%

9.94%Others including receivables (NR) 0.78%

100.00%


AAA (Government Securities) 68.17%

AA+ 29.61%

Total 100.00%

Placements with DFIs 9.26%

AA 0.00%

Others including receivables (NR) 0.78%

PIBs 58.22%TFCs / Sukuks 1.35%

AA- 1.17%A- 0.08%

AAA 0.19%

Jan‘15

Jan‘15

0.00%

23.05%

5.39%0.63%

100.00%

62.98%

9.05%

100.00%

9.05%

0.00%

0.63%

57.59%4.30%

4.12%23.03%

0.19%

A+ by PACRA (13 May 2014)70% 6 month Kibor & 30% average of 6 month depositrate of 3 banks rated AA- and above




Asif IqbalAli Kamal


Fund Statistics

WWF Disclosure

NAV per Unit (PKR)Net Asset (PKR mn)

Weighted Average Maturity (days)Sharpe Ratio *

5,362.152114.44265.0479

Information RatioStandard Deviation ** Annualized

0.22212.740%

17th April 2014Daily (days when Banks are open for business)

4.00 pmForward1.00%0% (Front-end) 0% (Back-end)Low RiskKarachi Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.M.Yousuf Adil Saleem & Co. ‘Chartered Accountants’

Mohsin Tayebaly & Co.Salman Kazmi

The fund generated 15.56% return for February 2015 outperforming its benchmark by massive 7.78%. Our active management has led the fund to outperform the benchmark consistently for 8MFY15. Also, on FYTD basis, the fund posted 21.36% return outperforming the benchmark by 12.36%. Moreover, the fund secured second position amongst its respec-tive category on YTD and MTD basis.

During the month, holding in government securities was increased by approximately 5% of net assets. Our overall portfolio is also indicative of our expectations of decreasing interest rate trend as our allocation is 59% in PIB and 10% in treasury bills, respectively. The portfolio duration of the fund is 1,043 days.

We intend to remain vigilant and reposition the portfolio in accordance with the market conditions, while maintaining greater exposure in government securities, seeking opportuni-ties to maximize the returns.

The objective of PIML - Income Fund (formerly Primus Cash Fund) is to gener-ate competitive returns by investing in short to long term debt instruments and securities.

The scheme has maintained provision against Worker’s Welfare Fund’s liability to the tune of Rs. 19,771,482 if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.4220/ 0.55% enhancing the YTD return to 21.36% p.a”

Fund Performance


Fund Manager’s Report - February 2015PIML Income Fund (PIML-IF) (formerly; PRIMUS Cash Fund PCF)


Portfolio Allocation (as % of total assets) Jan‘15

Placements with DFIs 9.05%

TFCs / Sukuks4.30%

PIBs57.59%

T-Bills5.39%

Cash at Bank23.05%

Others including receivables (NR) 0.63%

-20.0%-10.0%

0.0%10.0%20.0%30.0%40.0%50.0%

Aug-

13

Sep-

13

Oct-1

3

Nov-1

3

Dec-1

3

Jan-

14

Feb-

14

Mar-1

4

Apr-1

4

May-1

4

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov-1

4

Dec-1

4

Jan-

15

Feb-

15

Benchmark PIF

Placements with DFIs9.26%

TFCs / Sukuks1.35%

PIBs58.22%

T-Bills9.94%

Cash at Bank20.44%

Others including receiveables (NR)0.78%

Top 10 TFCs / Sukuks Holdings (as % of T.A.) Feb' 15 Jan' 15AKBL PPTFC-V 30-Sep-14 - 30-Sep-24 1.17% 4.12%SCBPL TFC 29-Jun-12 - 29-Jun-22 0.19% 0.18%

PIF* PIF** Benchmark***Since Inception 13.00% 11.88% 9.14%12M Trailing 17.62% 17.62% 9.19%FYTD 21.36% - 9.00%Jan-15 47.10% 58.70% 8.37%Feb-15 15.56% 16.73% 7.79%

Feb‘15

M.Yousuf Adil Saleem & Co. ‘Chartered Accountants’

Fund Performance

*Absolute Returns **Weighted Average Returns



Fund Objective

Fund Details




Trustee


Open EndBalanced Fund


Equity Securities

Others Including Receiveables (NR)Total

Total

Cash at Bank

Feb‘1559.46%

3.98%100.00%

24.71%

Feb‘15

Sector Allocation (as % of Total Assets)


AAA (Government Securities)AAA

NR (includes equity investments)

11.85%0.80%

63.44%100.00%

PIB 11.85%

AA & Above 21.82%AA- 2.09%

Jan‘1567.58%

3.80%100.00%

15.97%

Jan‘1512.65%11.40%

71.38%100.00%

12.65%

0.43%4.13%

N/A


Adnan Siddiqui CEORahaila Aleem CFO & Company SecretaryM. Ali Kazmi Chief Investment O�cerM. Samir Malik, CFA Head of Equity & SMAsAsif Iqbal Head of Risk & ComplianceAli Kamal Head of Research


WWF Disclosure

NAV per Unit (PKR)Sharpe Ratio ^^

171.047125.191.3970

Treynor Ratio^^Standard Deviation *^^

3M PKRV yield used as Risk‐Free rate. ^^ The look back period is 250 working days (Since inception).* Annualized.**^R‐Square measures the correlation between the benchmark and the fund

0.1278Beta^^ 1.0972R-Square**^^^ 80.05%Value at Risk 1.04%

10.04%

23rd August 2013Daily (days when Banks are open for business)

4.00 pmForward2% p.a.2% (Front-end) 0% (Back-end)Moderate to HighKarachi Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.

Mohsin Tayebaly & Co.M. Samir Malik, CFA

The Fund generated a return -1.03% compared to its benchmark return of -1.28% for the month of February, outperforming its benchmark for the month by 25 bps. We reduced the exposure in equities from 68.51% of net assets to 60.88% of net assets in the outgoing month in anticipation of increased volatility in the market. The FYTD return of the Fund was 19.70%, outperforming the benchmark return by 878 basis points. We have continued to maintain a high constitution in Cement Sector due to our positive outlook on the macroeconomic progress in the country and improving margins due to lower input costs. We are of the opinion that the recent announcement regarding the expansion by DGKC has been overblown.

The objective of PIML-SMAF, an open-end balanced scheme, is o�ering retail and institutional clients a product that aims to maximize return and minimize risk. For this purpose, a balanced portfolio is created that has an optimal mix of equity, debt securities and commodity.

The scheme has maintained provision against Worker’s Welfare Fund’s liability to the tune of Rs. 600,243 if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.4393 / 0.18% enhancing the YTD return to 19.70% p.a”

Fund Manager’s Report - February 2015Strategic Multi Asset Fund


KSE 100 index, 3 month PKRV and Daily Closing Pakistan Rupee Spot Gold Prices at the Pakistan Mercantile Exchange Limited (PMEX) based on the weighted average exposure of the scheme to eqquity, debt and gold future contracts during the period under review

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

Aug-

13

Sep-

13

Oct-1

3

Nov-

13

Dec-

13

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov-

14

Dec-

14

Jan-

15

Feb-

15Benchmark PSMAF

Equity Securities59.46%

PIB11.85%

Cash at Bank24.71%


3.98%

Top 10 Equity Holdings (as % of T.A.) Feb '15D.G. Khan Cement Co. Ltd. DGKC 7.01%Pakistan State Oil Co. Ltd. PSO 7.00%Kot Addu Power Co. Ltd. KAPCO 4.80%Fauji Cement Co. Ltd. FCCL 4.31%Pak Suzuki Motor Co. Ltd. PSMC 3.89%Maple Leaf Cement Factory Ltd. MLCF 3.51%National Bank of Pakistan NBP 3.09%Nishat Chunian Power Ltd. NCPL 2.98%United Bank Ltd. UBL 2.92%Lucky Cement Ltd. LUCK 2.86%

Sector Allocation (as % of T.A.) Feb '15 Jan '14Const. & Materials (Cement) 17.70% 23.91%Comm. Banks 9.88% 11.77%Oil and Gas 9.05% 7.51%Electricity 8.79% 10.26%Automobile and Parts 4.69% 5.12%Personal Goods (Textile) 2.84% 3.21%Chemicals 2.75% 3.30%Household Goods 2.42% 0.00%Pharma & Bio Tech 0.87% 0.92%Telecom 0.47% 0.55%Total 59.46% 66.55%

PSMAF* Benchmark**Since Inception 30.79% 32.98%12M Trailing 24.42% 22.67%FYTD 19.70% 10.92%Jan-15 5.63% 5.01%Feb-15 -1.03% -1.28%

Fund Manager’s ReviewThe Fund generated a return of -0.91% compared to its benchmark return of -0.52% for the month of January, underperforming its benchmark for the month by 39 bps. We reduced the exposure in equities from 93.82% of net assets to 87.42% of net assets in the outgoing month due to increased volatility in the market. The FYTD return of the Fund was 14.32%, outperforming the benchmark return by 187 basis points. We have continued to maintain a high constitution in Cement Sector due to our positive outlook on the macroeconomic progress in the country and improving margins due to lower input costs. We are of the opinion that the recent announcement regarding the expansion by DGKC has been overblown.

Fund Manager’s Report - February 2015Islamic Equity Fund

Feb‘15Portfolio Allocation (as % of total assets)Fund Objective

Fund Details




Trustee


Open EndIslamic Equity Scheme


Equity Securities

Others Including ReceiveablesTotal

Total

Cash at Bank

Shariah Compliant Govt. Securities

Sector Allocation (as % of Total Assets)


AAAAANR (includes equity investments)

Feb‘15

85.18%0.00%

5.88%100.00%

8.94%

Feb‘155.71%3.23%

91.06%100.00%

Jan‘15

92.35%0.00%

3.51%100.00%

4.14%

Jan‘153.30%0.84%

95.86%100.00%

N/AKMI - 30 Index


Adnan Siddiqui CEORahaila Aleem CFO & Company SecretaryM. Ali Kazmi Chief Investment O�cerMeraj uddin Mazher (FRM) Fund ManagerAsif Iqbal Head of Risk & ComplianceAli Kamal Head of Research


WWF Disclosure

NAV per Unit (PKR)Sharpe Ratio ^^

127.859118.070.6460

Treynor Ratio^^Standard Deviation *^^

3M PKRV yield used as Risk‐Free rate. ^^ The look back period is 247 working days (Since inception).* Annualized.**^R‐Square measures the correlation between the benchmark and the fund

0.1025Beta^^ 0.8546R-Square**^^^ 70.03%Value at Risk 1.41%

13.56%

4th March 2014Daily (days when Banks are open for business)

4.00 pmForward2% p.a.2% (Front-end) 0% (Back-end)Moderate to HighKarachi Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.KPMG Taseer Hadi & Co.Mohsin Tayebaly & Co.Meraj uddin Mazher (FRM)

The objective of PIML-IEF is to achieve long term capital growth by invest-ing mainly in Shariah Compliant listed equity securities.

The scheme has maintained provision against Worker’s Welfare Fund’s liability to the tune of Rs. 278.087 if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.2568 / 0.22% enhancing the YTD return to 14.32% p.a” “MUFAP’s Recommended Format”

Fund Performance

*Absolute Returns n.a=not applicable

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

Benchmark PIEF

Equity Securities85.18%

Cash at Bank8.94%


5.88%

Top 10 Equity Holdings (as % of T.A.) Feb '15Pakistan State Oil Co. Ltd. PSO 10.22%D.G. Khan Cement Co. Ltd. DGKC 8.42%Lucky Cement Ltd. LUCK 7.23%Maple Leaf Cement Factory Ltd. MLCF 6.93%Pak Suzuki Motor Co. Ltd. PSMC 5.84%Fauji Cement Co. Ltd. FCCL 5.76%Pakistan Oilfields Ltd. POL 5.62%Nishat Mills Ltd. NML 5.43%Kot Addu Power Co. Ltd. KAPCO 4.80%Hub Power Co. Ltd. HUBC 4.74%

Sector Allocation (as % of T.A.) Feb '15 Jan '14Const. & Materials (Cement) 28.33% 36.04%Oil and Gas 19.13% 21.46%Automobile and Parts 9.81% 7.34%Electricity 9.54% 9.28%Personal Goods (Textile) 7.52% 8.05%Pharma & Bio Tech 2.89% 3.08%Comm. Banks 2.41% 2.52%Household Goods 2.31% 0.00%Fixed Line Telecom 1.78% 2.00%Chemicals 1.44% 2.59%Total 85.16% 92.35%

PIEF* BenchmarkSince Inception 19.56% 24.4%12M Trailing^ 19.56% 24.4%FYTD 14.32% 12.5%January 7.93% 6.24%February -0.91% -0.52%

Fund Performance


Fund Details




Trustee


Open EndIslamic Money Market Scheme


Sukuk

Cash at Bank

Total

Feb‘15



AAA (Government Securities)AAAAA+

Total

GOP Ijara Sukuk - Govt. Backed

AAOthers including receivables (NR)

Feb‘15

Feb‘15

0.00%

97.26%2.74%

100.00%

0.00%97.25% 0.00%

100.00%

0.00%

0.01%2.74%

Jan‘15

Jan‘15

0.00%

96.14%3.86%

100.00%

0.00%96.14% 0.00%

100.00%

0.00%

0.01%3.86%

AA(F) by PACRA (9 April 2014)

3 month deposit rate of three AA andabove rated Islamic Banks




Asif IqbalAli Kamal



WWF Disclosure

NAV per Unit (PKR)Weighted Average Maturity (days)Sharpe Ratio *

118.486104.111

-5.8169Information RatioStandard Deviation ** Annualized

0.22550.390%

4th March 2014Daily (days when Banks are open for business)

4.00 pmForward0.50%2% (Front-end) 0% (Back-end)Low RiskIslamabad Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.KPMG Taseer Hadi & CoMohsin Tayebaly & Co.Salman Kazmi

The objective of PIML-IMMF is to seek high liquidity, competitive return and maximum possible preservation of the capital for investors by investing in low risk Shariah Compliant securities.

The scheme has maintained provision against Worker’s Welfare Fund’s liability to the tune of Rs. 95,356 if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.0838 / 0.12% enhancing the YTD return to 5.95% p.a”

Fund Manager’s Report - February 2015Islamic Money Market Fund

Fund Manager’s ReviewPIML Islamic Money Market Fund generated an annualized return of 6.16% against the benchmark return of 6.07% for February 2015, merely outperforming by 09 basis points. On month on month basis, the returns have improved by an average 0.41% for CY15. We intend to allocate the portfolio optimally and have allocated the fund placements to mantain liquidity to cash in opportunities that may arise in Shariah complaint securities/instruments. The weighted average time to maturity of the portfolio is 01 day.


Portfolio Allocation (as % of total assets) Jan‘15

Cash at Bank96.14%

Others including

receivables (NR)

3.86%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%Benchmark IMMF

Cash at Bank97.26%

Others including

receivables (NR)

2.74%


PIMMF* PIMMF** Benchmark***Since Inception 5.86% 5.87% 6.40%12M Trailing^ 5.86% 5.87% 6.40%FYTD 5.95% - 6.35%January 6.17% 6.35% 6.24%February 6.16% 6.34% 6.07%

cio’s comments - awtinvestments.com manager report (february...december 2014, while on the ˜ip...

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