company’s message manager re… · tensions and ambiguity on the political front, which in turn...

Company’s MessageFund Manager’s Report - August 2014

Economic Snapshot

Key

Econ

omic

Indi

cato

rs

Equity Market Review

Money Market Review

Developments on political front overshadowed the macroeconomic developments as sit-ins in capital city by PTI & PAT protestors kept the political environment heated during the month. The sit-ins have continued for more than two weeks now and PTI & PAT are still consistent on their demands especially resignation by PM. The continuous deadlock between government and protestors has caused negative impact on the image of the country among the foreign investors. As a result of which, IMF has deferred the �fth tranche despite of the fact that the country has met most of the targets set for the June 2014. IMF has set the raise in power tari� as pre-condition for approval of next tranche. Amid political turmoil, lower in�ation �gure for the month of August came as a surprise. The in�ation for the month clocked in at 7% as compared to 7.9% in the previous month. Soft CPI numbers advocate discount rate cut in the monetary policy to be announced in September, However, SBP might consider status quo in order to support falling reserves and PKR value. Foreign exchange reserves declined to USD 13.58bn as compared to USD 14.30bn in the previous month, down 5% MoM. Falling reserves caused the domestic currency devaluation by 3% against USD during the month. Other important macro economic developments witnessed during the month were 1) Tax collections up 22% YoY in August, 2) timely receipt of USD 374mn under CSF, 3) removal of GIDC as the Supreme Court of Pakistan (SC) has rejected a government's review petition against Peshawar High Court's decision on declaring the Gas Infrastructure Development Cess (GIDC) Act as illegal and unconstitu-tional. The court has also directed the government to reimburse the amount collected under this act to consumers within six months and 4) IMF has increased the GDP forecast for FY15 from 4.1% to 4.3%. Prolonged continuation of the protests may pose greater risk to Country’s economic reforms, especially privatization of state owned organizations and foreign investment in power and other industrial sectors may be delayed due to poor image of the country among foreign investors. Besides, due to heavy losses caused to the economy, infrastructure projects may face slowdown or postpone-ment during the ongoing year.

SBP conducted two t-bill auctions during the month. Target of the �rst auction held on August 6th was PKR 100bn, against which the SBP generated PKR 92.9bn. Cut o� yields for 3month, 6month and 1year were 9.9564%, 9.9685% and 9.99% respectively. Target for the second auction (held on 20th August) was PKR 125bn,

against which the government raised 71.7bn. Cut of yields set for 3month and 1year papers were the same as set in �rst auction, while cut o� yield of 6month was 9.9791%. SBP also conducted PIB auction on August 12th, in which the government borrowed PKR 83.69bn against the target of PKR 100bn. Cut o� yield set for 3yr, 5yr and 10yr PIBs were 12.5092%, 12.9021% and 13.3494%respec-tively.

Politics emerged to be major market mover this month. Protests by PTI & PAT in capital city have created tensions and ambiguity on the political front, which in turn has resulted in uncertainty among investors of equity market. Though corporate results were mainly in line with market consensus, the strong fundamentals could not drive the market.The KSE-100 Index lost 1,746 points and declined by 5.8% during the month of August and closed at 28,567.7 points. During the second week of August, the market witnessed highest single day decline of 1,309 points (4.5%), then it recovered some of the loss in the same week. During the last week, when protestors decided to enter into red zone towards the parliament house, the political chaos worsened in the country and index touched the bottom of 27,774 points, down 1,900 points from the monthly peak of 29,676 points. The trading volumes increased by 18% MoM due to lower volumes in the previous month (Ramadan e�ect). However, daily average volumes were lower by 39% in August as compared to average volumes in 1HCY14.Foreigners remained highest net buyers during the month with net in�ow of USD 35.74mn (USD 68.5mn in previous month), followed by Banks with net in�ow of USD 29mn, while mutual funds were the net sellers of USD 67.5mn. Sector wise performance of the market shows that multi-utilities, telecom and cements were the major losers with returns of -19.3%, -12.6% and -10.7% respectively, while chemicals and food producers and electricity posted returns of -4% and -3.4% and -1% respectively, outperforming the index. Cement stocks performed negative on the possibility of anti dumping duty on Pakistan’s exports to South Africa, while electricity stocks were relatively strong during the fall of index due to gains on the back of PKR depreciation during the month. Going forward, the market direction will be dependent on ongoing political situation, where further prolong of deadlock between the government and protestors may negatively impact economic reforms and equity market while early resolution will bring the market back on track.

What a month it has been!!!! Political parties full in action with show of political strength in the parliament and on the streets of Islamabad.As suggested in our last month FMR the market was totally dictated by the political winds rather than by the numbers. The market not only shrugged o� the improvement in in�ation but also discarded the improved numbers of sectors and companies. Chaos was in control and investors were hitting the sell buttons.As indicated in our earlier reviews the markets respond more to the political and geographical developments as compared to the numbers. The reaction is immediate, loud and clear that could be heard by all and sundry in case of the earlier.Although the values have come to very attractive levels but we maintain a cautious stance until the turmoil is over. In any market only values cannot be considered for taking any position rather timings is of the utmost importance before entering any market. Present turmoil is far from over, they know there is a problem coming. During such uncertain times of high political turmoil in�uencing the market we suggest investors to focus on a long-term strategic asset allocation with a tolerable level of risk.On the international front, unrest in Ukraine and Iraq is dominating international markets and currencies. ISIS spreading their wings has warned Russia threatening Putin that his throne will fall when they reach him. ISIS chief Al-Zawahiri announced the launch of Qaedat al-Jihad, to operate in India, Burma, Bangladesh, Pakistan and Kashmir. The demoniza-tion of Saddam was excellent, the demonization of ISIS is even better. Not all information that we see can be trusted, truth is the �rst casualty of all wars, but it is going to be one hell of a war.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 capabilities, 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.

Aug-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14External Sector IndicatorsOverall Balance of Payments USD million (820) 916 1,049 2200 1,398 507 n.a n.aCurrent Account Balance USD million (57) 164 (156) (111) (57) -89 n.a n.aExports USD million 2,198 2,074 2,152 4,197 2,088 2097 2197 n.aImports USD million 3,450 3,136 3,382 3,278 3,591 3317 3444 n.aWorker's Remittances USD million 1404 1,210 1,337 1,216 1,438 1166 1649 n.aForeign Direct Investment USD million 103 79.2 63.5 81.1 610.9 188.6 24 n.aForeign Portfolio Investment USD million 54 1.1 -5.4 2,115 122 403 67 n.aForex Reserves USD billion 10.29 8.74 10.07 12.18 13.47 13.57 14.30 13.58Exchange Rate against PKRUSD Month Avg. 100.55 105.39 99.97 98.79 98.59 98.75 98.65 101.86Inflation IndicatorsGeneral CPI YoY change 8.3% 7.9% 8.5% 9.2% 8.3% 8.2% 7.9% 7.0%Food CPI YoY change 9.2% 7.6% 9.3% 9.9% 7.4% 7.4% 7.0% 5.6%Core (NFNE) YoY change 8.2% 7.8% 7.6% 8.5% 8.7% 8.7% 8.3% 7.9%Core (Trimmed) YoY change 7.8% 8.1% 8.1% 9.0% 8.3% 7.9% 7.6% 7.1%Monetary GrowthBroad Money (M2) YoY growth 16.5% 12.9% 11.9% 12.7% 11.5% 12.3% 15.6% 10.6%GoP's Borrowing from SBP YoY growth 40.6% 64.2% 35.1% 32.2% 7.7% 19.2% 14.5% -12.3%Pvt. Sector Credit YoY growth -0.9% 4.4% 4.0% 5.3% 8.1% 7.9% -0.8% 11.6%Interest RatesSBP Policy Rate Current 9.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%6 Month KIBOR Month Avg. 9.08% 10.13% 10.18% 10.20% 10.17% 10.17% 10.17% 10.18%12 Month KIBOR Month Avg. 9.24% 10.43% 10.47% 10.45% 10.44% 10.45% 10.45% 10.48%3 Month T-Bill Yield Month Avg. 8.88% 9.95% 10.01% 9.97% 9.96% 9.95% 9.94% 9.96%6 Month T-Bill Yield Month Avg. 8.93% 9.97% 10.00% 9.98% 9.98% 10.00% 10.00% 10.01%12 Month T-Bill Yield Month Avg. 9.05% 9.99% 10.00% 10.00% 10.01% 10.05% 10.06% 10.07%10 Year PIB Yield Month Avg. 11.55% 12.80% 12.81% 12.81% 12.85% 13.01% 13.10% 13.28%

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

Money Market

Portfolio Allocation (as % of total assets)

Aug‘14

Cash at BanksPlacements with DFIsPlacements with Banks

Total

T-Bills

Others including receivables

Aug‘141.08%

34.41%9.25%

100.00%

46.41%

0.71%

Credit Quality of Portfolio (as % of total assets)

AAA (Government Securities)AAAAA+

NR (Others including receivables)Total

Aug‘1446.41%

0.06%18.52%

0.71%100.00%

AA 34.31%

Jul‘140.53%

38.48%8.95%

100.00%

49.58%Reverse Repo against Govt. Securities 8.15% 0.00%

2.46%

Jul‘1449.58%

0.06%19.39%

2.46%100.00%

28.51%

AA+ by PACRA50% 3 months PKRV + 3 months average

Ahmed AteeqRahaila AleemM. Ali KazmiSalman Kazmi

CEOCFO & Company SecretaryChief Investment O�cerFund Manager

Arfeen ZiaAli Kamal

Head of RiskHead of Research

Fund StatisticsNet Asset (PKR mn)

WWF Disclosure

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

3,424.816101.684358

-2.0969Information RatioStandard Deviation ** Annualized

0.54140.371%

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

PRIMUS Daily Reserve Fund generated an annualized return of 8.88% versus the benchmark return of 8.61% for the month of August, outperforming the benchmark return by 27 basis points. Also the fund recorded 9.58% return since inception outperforming its benchmark by 1.25%. The performance is mainly attributed by the growth of 2.66% in short term government securities, making a contribution of 1.29% in the net assets. Moreover, the gains from cash deposits and placements with Banks and DFIs at attractive rates cannot be ruled out.At the month end, net assets were recorded at 3.42 billion (a growth of 2.87%) where government securities constituted major allocation of around 50% of net assets. Furthermore, cash deposits and placements with Banks and DFIs also constituted around 50% of net assets. The weighted average time to maturity of the portfolio is 58 days.We intend to maintain exposure in longer duration maturities and position our portfolio accordingly accomplishing high yield 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.9,619,753, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.2856/ 1.65% enhancing the YTD return to 10.49% p.a”

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

Fund PerformanceSince Inception 9.58% 9.29% 8.33% 8.84% 8.68%

*Simple Annualized**Morning Star

***Average of reporting period n.a = not applicable

PDRF* PDRF** Benchmark***

-

PDRFFYTD

-8.88% 9.25% 8.61%Aug-148.73% 9.09% 8.75%Jul-14 - -

BenchmarkFYTD

Fund Manager’s Report - August 2014Daily Reserve Fund

“MUFAP’s Recommended Format”

Portfolio Allocation (as % of total assets) Jul‘14Placements with

Banks8.95%

Placements with DFIs38.48%

T-Bills49.58%

Cash at Bank0.53%

Others including receivables (NR)

2.46%

Placements with Banks9.25%


Reverse Repo against Govt. Securities

8.15%

T-Bills46.41%

Cash at Bank1.08%


0.71%

0.0%2.0%4.0%6.0%8.0%

10.0%12.0%14.0%

Jan-

13Fe

b-13

Mar-1

3Ap

r-13

May-1

3Ju

n-13

Jul-1

3Au

g-13

Sep-

13Oc

t-13

Nov-1

3De

c-13

Jan-

14Fe

b-14

Mar-1

4Ap

r-14

May-1

4Ju

n-14

Jul-1

4Au

g-14

Benchmark PDRF


Portfolio Allocation (as % of total assets)Fund Objective

Fund Details


Fund TypeCategoryFund Stability Rating

Benchmark


Trustee


Open EndIncome Scheme


Placements with Banks

Cash at Bank

T-Bills

Total

Aug‘14

Aug‘14

Aug‘14

1.94%

1.08%

24.40%Others including receivables (NR) 1.05%

100.00%


AAA (Government Securities) 88.36%AAA 0.00%AA+ 8.63%

Total 100.00%

Placements with DFIs 7.56%

AA 1.96%Others including receivables (NR) 1.05%

PIBs 63.96%

Jul‘14

Jul‘14

0.00%

0.64%

24.35%0.41%

100.00%

91.05%0.00%

8.51%

100.00%

7.90%

0.03%0.41%

66.70%

A+70% 6 month Kibor & 30% average of 6 month depositrate of 3 banks rated AA- and above




Arfeen ZiaAli Kamal


Fund Statistics

WWF Disclosure

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

Weighted Average Maturity (days)Sharpe Ratio *

4,600.240101.97160.5970

Information RatioStandard Deviation ** Annualized

0.08491.659%

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

PIML Income Fund generated a decent return of 10.38% against the benchmark return of 9.42% for the month of August, outperforming the benchmark return by 96 basis points. Also the fund on FYTD basis outperformed its benchmark return by 1.05 percentage points at 10.47%. The performance is mainly attributed by the growth of 0.16% and 4.68% in the bond portfolio and short term government securities, respectively. The government securities made attractive mark-to-market gains coupled with gains from cash deposits and placements with Banks and DFIs at attractive rates.At the month end, net assets were recorded at 4.60 billion (a growth of 4.44%) where government securities constituted major allocation of around 89% (T-bills: 24.55% & PIBs: 64.33%). The portfolio duration of the fund is 482 days, where we seek opportunity to book capital gains on the back of improvement in PKRV spreads between medium to long term.We intend to maintain longer portfolio duration while the fund is equipped to attain optimal returns given the present market scenario.

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. 11,680,304, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.2589/ 1.49% enhancing the YTD return to 11.96% p.a”

Fund PerformanceSince Inception 9.09% 8.69% 9.43%



PIML IF* PIML IF** Benchmark***PIML IFFYTD

- -10.38% 10.89% 9.42%Aug-1410.46% 10.97% 9.41%Jul-14 - -

10.47% 9.42%

BenchmarkFYTD

Fund Manager’s Report - August 2014PIML Income Fund (PIML-IF) (formerly; PRIMUS Cash Fund PCF)


Portfolio Allocation (as % of total assets) Jul‘14


PIBs66.70%

T-Bills24.35%

Cash at Bank0.64%


0.41%

--

Placements with Banks1.94%

Placements with DFIs

7.56% PIBs63.96%

T-Bills24.40%

Cash at Bank1.08%


1.05%

-15.0%-10.0%

-5.0%0.0%5.0%

10.0%15.0%20.0%25.0%30.0%

Aug-

12Se

p-12

Oct-1

2No

v-12

Dec-1

2Ja

n-13

Feb-

13Ma

r-13

Apr-1

3Ma

y-13

Jun-

13Ju

l-13

Aug-

13Se

p-13

Oct-1

3No

v-13

Dec-1

3Ja

n-14

Feb-

14Ma

r-14

Apr-1

4Ma

y-14

Jun-

14Ju

l-14

Aug-

14

Benchmark PIF

Aug‘14

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

Fund Performance

Since Inception 6.62% 17.45%**

-4.98% -3.62%**Aug-142.69% 1.72%**Jul-14

*Absolute Returns**Weighted Average Returns

PSMAF* Benchmark-2.43%

PSMAFFYTD

- -- -

-1.94%

BenchmarkFYTD



Fund Objective

Fund Details




Trustee


Open EndBalanced Fund


Equity Securities

Others Including Receiveables (NR)Total

Total

Cash at Bank

Aug‘1464.19%

6.14%100.00%

12.39%

Aug‘14 Jul‘14

Aug‘14

Sector Allocation (as % of Total Assets)


AAA (Government Securities)AAA

NR (includes equity investments)

15.73%0.01%

70.88%100.00%

PIB 17.28%

AA & Above 6.55%AA- 6.83%

Jul‘1462.55%

8.32%100.00%

13.39%

Jul‘1415.73%

0.01%

70.88%100.00%

15.73%

6.55%6.83%

N/A


Ahmed Ateeq CEORahaila Aleem CFO & Company SecretaryM. Ali Kazmi Chief Investment O�cerM. Samir Malik, CFA Head of EquityArfeen Zia Head of RiskAli Kamal Head of Research


WWF Disclosure

NAV per Unit (PKR)Sharpe Ratio ^^

110.901102.04

-0.9146

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

-0.0966Beta^^ 0.9475R-Square**^^^ 62.68%Value at Risk 1.04%

10.01%

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 of -4.98% compared to its benchmark return of -3.62% for the month of August, underperforming its benchmark. The exposure in equities decreased from 67.39% of net assets to 66.41% of net assets in the outgoing month. The equity market witnessed negative returns due to the current political conditions in the country and continued sit in at Islamabad. The underperformance of the Fund was led by lackluster performance of the Construction and Materials sector, marred by speculation of pricing war in the Cement industry due to the unexpected acquisition of Lafarge Cement by the Bestway group. The market is expected to rebound once the political impasse is resolved.

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. 185,117 if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.1703 / 0.17% enhancing the YTD return to -2.26% p.a”

Fund Manager’s Report - August 2014Strategic 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

Equity Securities64.19%

PIB17.28%

Cash at Bank12.39%


6.14%

Top 10 Equity Holdings (as % of T.A.) Aug '14Pakistan State Oil Co. Ltd. PSO 8.404%D.G. Khan Cement Co. Ltd. DGKC 5.568%Kot Addu Power Co. Ltd. KAPCO 5.491%Lucky Cement Ltd. LUCK 4.531%Lafarge Pakistan Cement Ltd. LPCL 4.048%National Bank of Pakistan NBP 3.505%Nishat Chunian Power Ltd. NCPL 3.485%Fauji Cement Co. Ltd. FCCL 4.092%Pakistan Petroleum Ltd. PPL 2.911%Maple Leaf Cement Factory Ltd. MLCF 2.667%

Construction and Materials (Cement) 20.91% 21.478%Oil and Gas 11.32% 10.174%Electricity 11.00% 10.026%Commercial Banks 10.62% 10.337%Non Life Insurance 2.65% 3.193%Household Goods 1.02% 0.960%Chemicals 1.61% 1.640%Pharma and Bio Tech 0.97% 1.470%Fixed Line Telecommunication 1.26% 1.320%Automobile and Parts 1.50% 1.480%Personal Goods 1.35% 0.476%Total 64.19% 62.56%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00% Benchmark PSMAF

Fund Manager’s ReviewThe Fund generated a return of -7.16%, compared to its benchmark return of -5.08%. The Fund exposure in equities increased from 81.46% of net assets to 84.85% of net assets in the outgoing month. The market witnessed negative returns due to the increased political uncertainty in the country created by the sit in at Islamabad. The underperformance of the Fund has been due to the lackluster performance of the Construction and Materials sector, marred by speculation of pricing war in the Cement industry due to the unexpected acquisition of Lafarge Cement by the Bestway group. A resolution to the political crisis will help the market and our fund returns to rebound going forward.

Fund Manager’s Report - August 2014Islamic Equity Fund

Aug‘14Portfolio 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

Aug‘14 Jul‘14Sector Allocation (as % of Total Assets)


AAAAANR (includes equity investments)

Aug‘14

81.02%0.00%

3.97%100.00%

15.01%

Aug‘1413.44%

4.49%82.07%

100.00%

Jul‘14

78.44%0.00%

3.64%100.00%

17.93%

Jul‘1413.44%

4.49%82.07%

100.00%

N/AKMI - 30 Index


Ahmed Ateeq CEORahaila Aleem CFO & Company SecretaryM. Ali Kazmi Chief Investment O�cerM. Samir Malik, CFA Head of EquityArfeen Zia Head of RiskAli Kamal Head of Research


WWF Disclosure

NAV per Unit (PKR)Sharpe Ratio ^^

106.20497.74

-0.6275

Treynor Ratio^^Standard Deviation *^^

3M PKRV yield used as Risk‐Free rate. ^^ The look back period is 122 working days (Since inception).* Annualized.**^R‐Square measures the correlation between the benchmark and the fund

-0.1136Beta^^ 0.7657R-Square**^^^ 62.15%Value at Risk 1.44%

13.86%

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.M. Samir Malik, CFA

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. 59,821. if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.0551 / 0.06% enhancing the YTD return to -5.32% p.a”


Fund Performance

Since Inception -1.04% 7.9%**

-7.16% -5.08%**Aug-141.93% 2.72%**Jul-14

*Absolute Returnsn.a=not applicable

PIML-IEF* Benchmark-5.37%

PIML-IEFFYTD

- -- -

-2.5%

BenchmarkFYTD

Equity Securities81.02%

Cash at Bank15.01%


3.97%

Top 10 Equity Holdings (as % of T.A.) Aug '14Pakistan State Oil Co. Ltd. PSO 12.34%Lucky Cement Ltd. LUCK 10.91%Pakistan Oilfields Ltd. POL 8.83%Oil & Gas Development Co. OGDC 7.74%Pakistan Petroleum Ltd. PPL 7.51%D.G. Khan Cement Co. Ltd. DGKC 4.73%Kot Addu Power Co. Ltd. KAPCO 4.25%Fauji Cement Co. Ltd. FCCL 4.22%Lafarge Pakistan Cement Ltd. LPCL 4.18%Nishat Mills Ltd. NML 4.16%

Oil and Gas 36.42% 33.519%Construction and Materials (Cement) 28.82% 31.295%Personal Goods (Textile) 4.16% 3.609%Automobile and Parts 2.15% 1.227%Fixed Line Telecommunication 2.13% 2.341%Pharma and Bio Tech 1.00% 1.591%Electricity 5.21% 4.144%Commercial Banks 1.13% 0.709%Total 81.02% 78.44%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

March April May June July August

Benchmark PIEF

Fund Performance

Since Inception 5.57% 5.65% 6.46%



PIMLIMMF*

PIMLIMMF** Benchmark***

PIML-IMMFFYTD

- -5.70% 5.85% 6.39%Aug-145.64% 5.79% 6.39%Jul-14 - -

5.68% 6.39%

BenchmarkFYTD


Fund Objective

Fund Details




Trustee


Open EndIslamic Money Market Scheme


Sukuk

Cash at Bank

Total

Aug‘14



AAA (Government Securities)AAAAA+

Total

GOP Ijara Sukuk - Govt. Backed

AAOthers including receivables (NR)

Aug‘14

Aug‘14

0.00%

95.01%4.99%

100.00%

0.00%95.01% 0.00%

100.00%

0.00%

0.01%4.99%

Jul‘14

Jul‘14

0.00%

96.43%3.57%

100.00%

0.00%96.42% 0.00%

100.00%

0.00%

0.01%3.57%

N/A3 month deposit rate of three AA andabove rated Islamic Banks




Arfeen ZiaAli Kamal



WWF Disclosure

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

106.639101.111

-8.4329Information RatioStandard Deviation ** Annualized

0.14590.489%

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. 61,835 if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.0586/ 0.34% enhancing the YTD return to 6.02% p.a”

Fund Manager’s Report - August 2014Islamic Money Market Fund

Fund Manager’s ReviewPIML Islamic Money Market Fund posted an annualized return of 5.70% against the benchmark return of 6.39% for the month of August, improving by 0.05% on the previous month’s performance. We intend to allocate the portfolio optimally; however, the fund is well placed with 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) Jul‘14

Cash at Bank96.43%


3.57%

Cash at Bank95.01%


4.99%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14

Benchmark IMMF

Contact Details

Sonam Peswani Head of Marketing, SMAs & Investor ServicesNadeem A. Khan Manager Investor ServicesSha�q ur Rehman Bhatti

+922135290006-9+922135290006-9+923218968076Regional Head Corporate Sales

Asif Ahmed Siddiqui +923002278139Regional Head Corporate Sales

company’s message manager re… · tensions and ambiguity on the political front, which in turn...

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