fund manager report december2018 dec -18.pdf · risk profile of the fund amc rating “am3+” fund...

Fund Manager Report December2018

Fixed Income Review

Market yields significantly increased during Dec-18 as SBP raised the policy rate by 150bps towards the end of Nov-18. The yields have been on an increase for 11 consecutive now due to increase in policy rates by the SBP in an attempt to consolidate the economy to ensure stability. Average Yields on short term papers increased by 111-167 bps for short term papers during Dec-18. Yields on 3m, 6m and 1yr papers were recorded at 10.30%, 10.58% and 11.18%, respectively, at the end of Dec-18. Average yields on 3yr and 5yr PIBs clocked in at 11.70% and 12.27% reflecting MoM increase of 59bps and 66bps, respectively. Average yield on 10yr PIBs expanded by 73bps to 12.90%. In the two T-Bill auctions held during the month of Dec-18, SBP raised a total of PKR 2,040.49bn against a target of PKR 200bn and maturity of PKR 44.25bn. For the PIB auction held during Dec-18, SBP raised PKR 19.86bn against a target PKR 50bn. Yields are expected to continue the upwards trajectory in anticipation of further interest rate hikes by the central bank ahead of going in to the IMF program.

Equity Market Review

The benchmark KSE-100 index lost 3,429pts or 8.47% during Dec-18 to close the month at 37,067pts. Negative sentiments in the market prevailed on the back of uncertainty regarding the governments policies to overcome the economic crises. The index may have also come under pressure due to rebalancing done by institutions ahead of year end. Average daily trading activity also witnessed a decline of 33.8% MoM to 131mn. Similarly, average daily traded value declined 37% MoM to USD 44mn. E&Ps, OMCs, Refineries, Cements and Autos

Macroeconomic Overview

CPI inflation for Dec-18 clocked in at 6.17% YoY, MoM decrease in CPI index clocked in at 0.41% during the month due to decline in food prices. Prices of perishable foods items, mainly fresh fruits and vegetables dropped 13.78%/26.32% MoM/YoY during the month of Dec-18. Non-food inflation continued its upward trend to settle at 9.8% YoY, while NFNE settled at 8.4% YoY during the period. CPI inflation for 1HFY19 has clocked in at 6.04% YoY.

Inflation during 2HFY19 is expected to persist its upward course on the back of weak PKR/USD parity and increase in domestic energy prices. Our initial estimates indicated SBP policy rate to peak at 10% during FY19. However, considering the continued pressure on the external account coupled with inflationary pressures as low base effect from last year will likely prop up inflation during Feb to Mar-19 a further hike of 50-100bps in interest rates in the Mar-19 MPS cannot be ruled out.

Current Account Deficit (CAD) for Nov-18 grew 3% on MoM basis to USD 1.26bn. CAD for 5QFY19 declined by 11% YoY to settle at USD 6.09bn as compared to USD 6.81bn in 5QFY18. CAD as percentage of GDP has decreased to 4.8% of GDP as compared to 5.0% of GDP in 5MFY18, a substantial improvement from CAD in the preceding fiscal year, which settled at 6.1% of GDP. Worker remittances for Nov-18 were down 19.6% MoM to USD 1.60bn from USD 2.0bn in Oct-18, however the same were up 2.0% on YoY basis. 5MFY19 remittances settle at USD 9.03bn up 12.6% YoY due to increased remittances through official channels driven by multiple currency devaluations.

underperformed the benchmark index, whereas, Fertilizer, Chemicals and Tobacco sector outperformed the same. Major Foreigner selling continued in lieu of year end and possible squaring off of volatile position ahead of holidays season by investors. Net outflow was recorded at USD 28.41mn. Major selling was witnessed in E&Ps (USD 9.27mn) and Fertilizer (USD 6.34mn), whereas, no major net foreign buying was observed in any sector. On local front, major buying was observed by Individuals (USD 23.07mn) and insurances (USD 20.96mn), while significant selling by mutual funds (USD 34.84mn) was observed.

E&Ps and Refineries underperformance can be attributed to falling global oil prices. Cement and Autos sectors remained under pressure on back on lower volumes and questions regarding margins sustainability after currency devaluations. Chemical sector outperformed the index on account of improving margins due to favorable commodities prices. Investors showed interest in defensive sectors like fertilizers which led to their outperformance.

Market during the upcoming month is expected to remain volatile due to concerns regarding economic and political conditions in the country. Government is expected to resume talks with IMF during the month and any bailout package related news may be a trigger for the market. Materialization of pledged monetary support from friendly countries (KSA/UAE/China) may provide some positive sentiments for the bourse.

Fund Manager Review – December 2018

Source: NCCPL

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

No

v-17

Dec

-17

Jan

-18

Feb

-18

Mar

-18

Ap

r-18

May

-18

Jun

-18

Jul-

18

Au

g-18

Sep

-18

Oct

-18

No

v-18

Tren

d *

YoY CPI inflation - Monthly trend

Source: PBS

4.6

4.8

5.0

5.2

5.4

Oct

-18

No

v-1

8

5M

FY1

8

5M

FY1

9

Current Account Deficit (% of GDP)

Source: PBS

6.00

8.00

10.00

12.00

14.00

3m 6m 12m 3yr 5yr 10yr

Yield Curve

Nov-18 Dec-18

Source: MUFAP

0

50

100

150

200

250

35,000

36,000

37,000

38,000

39,000

40,000

4-D

ec

7-D

ec

12-

Dec

17-

Dec

20-

Dec

26-

Dec

31-

Dec

KSE-100 Volume

Source: KSE

KSE-100 performance during Dec-18

(28.41)

23.07 20.60

7.92

(34.84)

(3.18)

20.96

(1.91)(4.21)

-50

-25

0

25

50

FIP

I

Ind

ivid

ual

s

Co

mp

anie

s

Ban

ks/D

FIs

Mu

tual

Fu

nd

s

Bro

kers

Insu

ran

ce

NB

FC

Oth

erPortfolio flows - Dec-18 (USD mn)

137.00

138.00

139.00

140.00

3-Dec 8-Dec 13-Dec 18-Dec 23-Dec 28-Dec

PKR/USD during Dec-18

Source: SBP

52.86%

0.00%

16.87%29.82%

0.45%0.00%8.46%

0.00%

90.64%

0.91%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

T-Bills TDR Money Market Cash Other incl.receivables

29 Nov 18 28 Dec 18

Asset Allocation (% of Total Assets)

Leverage: Nil

Key Statistics

NAV (PKR/Unit) 104.3004

Net Assets (PKR mn) 1,624.088

Duration (Days) 01 Days

Weighted Average Maturity (Days) 01 Days

Expense Ratio (Annualized) 1.00%

Levy Ratio (Annualized) 0.18%

Since Inception Return 11.18%

Fund Information

Fund Objective

The objective of the Fund is to provide the investors with a high level of liquidity along with extremely low credit and price volatility. The Fund shall provide the facility to invest in an underlying portfolio primarily comprising of government securities (Treasury Bills) and other Authorized Investments which shall enable the investor to manage their liquidity efficiently.

Type of Scheme Open-end

Nature of Scheme Money Market Fund

Inception Date 18-Oct -09

Benchmark70% average 3 month PKRV + 30% Average 3-month deposit rate as selected by MUFAP

Dealing Day/cut off time

Monday – Friday 10.00 am

Pricing Mechanism Backward

Minimum Investment PKR 5,000

Front end load 0.00%

Back end load 0.00%

Selling & Marketing Expenses

Up to 0.4% per annum

Management Fee up to 12% of Gross Earnings subject to a maximum of 1.00% on the average annual net assets. Currently,0.50% p.a. fee is being charged.

Trustee Central Depository Company of Pakistan Ltd. (CDC)

Auditor Deloitte Yousuf Adil Chartered Accountants

Registrar Pak Oman Asset Management Ltd.

Listing Pakistan Stock Exchange

Askari Cash Fund (Formerly Askari Sovereign Cash Fund)

IC Members:

CEO Adeel Ahmad Khan

CFO Syed Adeel Shahid

VP – Fund Management Faisal Raza

CIO Jamshed Aziz

Manager – Fixed Income Sumaira Shaukat

Monthly Review

In the month of Dec -18, Askari Cash Fund posted a return of 8.73% ascompared to its benchmark return of 8.28%. Assets under management ofthe fund closed the month at PKR 1624 million as compared to PKR 1449million in previous month. During the month funds were mostly kept in cashas 90.64% of the fund size were in cash. By month end, duration of thefunds stood at 01 day as compared to 19 day in previous month.

December- 2018

MUFAP RECOMMENDED FORMAT

Performance* YTD MoM 365-Days 3-Years 5-Years

ACF 8.41% 8.73% 6.44% 6.86% 7.32%

Benchmark 7.36% 8.28% 6.45% 5.75% 6.68%

Historical Returns

FY13 FY14 FY15 FY16 FY17 FY18

ACF 9.24% 8.07% 8.86% 5.56% 8.49% 5.23%

Benchmark 8.83% 8.88% 8.35% 5.87% 5.25% 5.36%

Risk Profile of the Fund

AMC Rating “AM3+”

Fund Stability Rating AA+ by JCR-VIS

Risk Profile Low

Disclosures

SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 2.821 million, if the same were not made the NAV per unit/ YTD return of Scheme would be higher by Rs.0.1872/0.19%.

AA+, 1.18%

AA, 97.89%

N.R., 0.93%

AA+ AA N.R.

Portfolio Quality (% of Total Assets)

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. The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. The calculation of performance does not include cost of front end load .Notes:*Operational Bank Account1) The calculation of performance does not include cost of front end load. 2) Taxes apply. Further, tax credit also available as per section 62 of the Income Tax Ordinance, 2001.

*Adjusted for dividend

Key Statistics


Net Assets (PKR mn) 105.352



Since Inception Return** 45.18%

PAKOMAN Advantage Asset Allocation FundDecember- 2018

Monthly Review

In the Month of Dec -18, Pak Oman Advantage Asset Allocation Fundshowed a return of -5.13% against the benchmark return of -4.53%,. Duringthe month , Sector with major exposure were Oil and gas exploration, Banksand power & Generation. By the month end, equity exposure stood at36.98% as compare to 46.20% in the previous month. Exposure against TFCclosed at 39.72% as compare to 37.05% in the previous month. Remainingfunds maintained In Bank accounts ad receivable .

Top 10 holdings (% of Total Assets)

Hub Power Co. Ltd. 3.73%

Pakistan State Oil Ltd. 3.40%

K-Electric Ltd. 2.90%

Pakistan Oil Field Ltd. 2.68%

Oil & Gas Development Co Limited

2.25%

Sui Northern Gas Pipelines Limited

1.89%

Engro Corporation 1.88%

Amreli Steel Limited 1.86%

Bank Al-Falah Ltd 1.72%

Pakistan Petroleum Ltd. 1.65%

Equity Sector Allocation (% of Total Assets)

Oil and Gas Exploration 7.32%

Power Generation and Distribution

6.63%

Banks5.65%

Oil and Gas Marketing 5.28%

Fertilizers3.77%

Others8.31%

46.20%

9.59%

37.05%

7.16%

36.98%

18.55%

39.72%

4.75%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

Equities Cash* TFCs/Sukuks Others incl.receivables

30 Nov 18 31 Dec 18


Leverage: Nil

Historical Returns


POAAF 31.82% 8.74% 12.62% 7.76% 19.89% -20.70%

Benchmark 31.06% 25.49% 12.50% 8.19% 10.21% -9.01%

Performance(%)

YTD MoM 365-Days 3-Years 5-Years

POAAF -6.57% -5.13% -8.06% 3.04% 29.01%

Benchmark* -8.44% -4.53% -9.38% -5.65% 8.39%

IC Members:



CIO Jamshed Aziz

Fund Manager - Equities Muneeb Sikander



Fund Information

Fund Objective

POAAAF shall invent in a diversified portfolio of Securities such as equities, profit bearing securities and other instruments, including securities available for investments outside Pakistan, subject to applicable laws.


Nature of Scheme Asset Allocation

Inception Date 30-Oct-08

BenchmarkBenchmark WA return of KSE-30 index + WA return of 6M KIBOR on actual proportion.


Mon – Fri 9:00am / 3:30 pm

Pricing Mechanism Forward



Back end load 2.00%

Management Fee 2.00 % p.a.



Trustee MCB Financial Services Ltd.


Registrar Pak Oman Asset Management Ltd





Fund Ranking 3 Star (short term) PACRA / 3 Star (Long term) PACRA

Risk Profile Medium

Top Exposures (As on 31-Dec-2018)

Instrument Price % of Total Assets

International Brands Limited (15-Nov-17) 98.7214 13.67%

Bank of Punjab Limited TFC–II Issue(14-Apr-18) 98.8200 10.89%

JS Bank Limited II (29-Dec-17) 99.0500 7.77%

TPL Corporation Limited TFC (14-Dec-17) 99.9625 7.38%

Disclosures:

SWWF (As per Circular 17 of 2012): The scheme has maintained provision against SWWF amounting Rs. 1.568 million. If the above recognition had not been made, the net asset value per unit/YTD return of the Scheme would be higher by 0.6372 per unit / 1.27%.

**Absolute Return

Key Statistics






PAKOMAN Islamic Asset Allocation FundDecember- 2018

Monthly Review

In the moth of Dec -18, Pak Oman Islamic Asset Allocation Fund posted areturn of -6.70% as compared to -9.64% benchmark rate. By the month end,sectors with major exposures were oil and gas exploration, Fertilizer andPower generation and distribution. Equity exposure stood at 63.05% ascompare to 62.50% In the previous month. Exposure in Sukuk was 20.42% ascompare to 18.48% in the previous month while reaming funds weremaintained in Bank accounts ad receivable.



15.54%

62.50%

18.48%

3.48%15.01%

63.05%

20.42%

1.53%

0.00%

20.00%

40.00%

60.00%

80.00%

Cash* Equities TFCs/Sukuks Others incl.receivables

30 Nov 18 31 Dec 18


Leverage: Nil

Performance YTD MoM 365-Days 3-Years 5-Years

POIAAF -9.71% -6.70% -11.21% -9.33% 30.47%

Benchmark* -9.14% -9.64% -5.00% -1.42% 24.42%

IC Members:



CIO Jamshed Aziz



K-Electric Limited 5.90%




Engro Fertilizer Limited 4.00%

Oil & Gas Development Co Limited 3.58%

Sui Northern Gas Pipelines Limited 3.07%

Netsol Technologies Limited 3.03%


Mari Petroleum 2.73%

Equity Sector Allocation (% of Assets)

Oil and Gas Exploration

14.30%


10.86%

Fertilizers 8.60%

Cements 5.12%

Oil and Gas Marketing

4.30%

Others 19.87%

Fund Information

Fund Objective

The primary objective is to provide investors with high current income and long term capital growth primarily by investing in a diversified portfolio of Shariah compliant investment, instruments, including Shariah compliant securities available for investment outside Pakistan, subject to applicable laws.


Nature of Scheme Shariah Compliant Asset Allocation


BenchmarkBenchmark WA return of KMI-30 index + WA return of deposit rate of 3 A rated Islamic banks on actual proportion.

Shariah Advisor Mr. Najeeb Ahmad Khan


Mon – Fri 9:00am / 3:30 pm




Back end load 2.00%

Management Fee 2.00% p.a.




Auditor A. F. Fergusons & Co.





Fund Ranking 3 Star (short term) PACRA / 3 Star (Long term) PACRA

Risk Profile Medium Top Exposures (As on 31-Dec-2018)


Dawood Hercules Corporation – II (01-Mar-18) 100.001 7.92%


Disclosures:

SWWF (As per Circular 17 of 2012): The scheme has maintained provision against SWWF amounting Rs.1.661 million. If the above recognition had not been made, the net asset value per unit/YTD return of the Scheme would be higher by 0.2574 per unit / 0.49%.


Historical Returns


POIAAF 20.45% 17.32% 15.61% 10.37% 17.34% -21.38%

Benchmark 30.49% 18.21% 13.32% 10.35% 19.31% -5.47%

**Absolute Return

25.91%19.70%

52.76%

1.63%

45.63%

0.00%

52.30%

2.07%

0.00%

20.00%

40.00%

60.00%

Cash Bank Placements Sukuk Other incl.receivables

30 Nov 18 31 Dec 18


Leverage: Nil

AAA, 9.99%

AA, 27.97%

A+, 14.39%

A, 45.52%

N.R., 2.13%

AAA AA

A+ A

N.R.



POAIIF 6.41% 7.80% 5.90% 5.77% 5.03%

Benchmark* 2.84% 3.20% 2.64% 3.07% 4.37%

Key Statistics



Duration (Years) 0.66 Years

Weighted Average Maturity (Years) 1.58 Years




Fund Information

Fund Objective

The primary Objective is to provide investor(s) with competitive current income and long term capital growth primarily by investing in a diversified portfolio of shariah compliant securities available for investment outside Pakistan subject to applicable laws.


Nature of Scheme Shariah Compliant Income Scheme


BenchmarkBenchmark 6 month average deposit rates of 3 A rated scheduled Islamic Banks.



Mon – Fri 9:00am / 3:30 pm




Back end load 2.00%





Auditor A. F. Fergusons & Co.



PAKOMAN Advantage Islamic Income Fund

IC Members:



CIO Jamshed Aziz

Fund Manager – Fixed Income Sumaira Shaukat

VP-Fund Management Faizal Raza

Monthly Review

In the month of Dec -18, Pak Oman Advantage Islamic Income Fund posted areturn of 7.80% against its benchmark of 3.20%. Net Asset of the Fund wasPKR 251 million as compared to PKR 250 million in the previous month. Bythe month end, exposure against Sukuk stood at 52.30% as compared to52.76% in the previous month. Exposure against bank Placement closed atNil as compared to 19.70% in the previous month. Remaining Funds of thefund were invested as cash with Islamic Bank/ Islamic windows ofcommercial Banks.

December- 2018


Historical Returns


POAIIF 7.34% 3.43% 4.77% 4.37% 6.42% 4.98%

Benchmark 6.57% 6.54% 6.55% 4.89% 2.92% 2.45%




TPL Trakker Limited (13-Apr-16)* 104.8064 14.35%

Byco Petroleum Sukuk (18-Jan-17) 100.1174 9.99%

Dawood Hercules Corp. Ltd – II (28-Feb-18) 100.0054 6.65%

Dawood Hercules Corp. Ltd – I (16-Nov-17) 100.0001 5.87%



Fund Stability Rating A (f) PACRA

Risk Profile of the Fund Low to Medium

Disclosures

SWWF (As per Circular 17 of 2012): The scheme has maintained provision against SWWF amounting Rs. 0.968 million. If the above recognition had not been made, the net asset value per unit/YTD return of the Scheme would be higher by 0.2087 per unit/0.40%.



*Discretion Applied

2.55%

69.34%

27.10%

1.01%1.88%

70.31%

26.96%

0.85%

0.00%

20.00%

40.00%

60.00%

80.00%

Cash* T-Bill TFCs Other incl.receivables

30 Nov 18 31 Dec 18


Leverage: Nil

AAA, 70.31%

AA+, 9.38%

AA-, 7.39%

A+, 12.07% N.R., 0.85%

AAA AA+ AA-

A+ N.R.



POGSF 5.58% 6.88% 4.65% 5.70% 6.27%

Benchmark* 8.77% 10.46% 7.59% 6.43% 7.01%

Key Statistics








Fund Information

Fund Objective

The primary objective of Pak Oman Government Securities Fund (POGSF) is to provide its unit holders competitive returns from portfolio of investment with low credit risk with maximum possible preservation of capital via investing in Government Securities.


Nature of Scheme Income

Inception Date 28-July-11

Benchmark Average 6M PKRV rates.


Mon – Fri 9:00am / 3:30 pm




Back end load 2.00%








PAKOMAN Government Securities Fund


Monthly Review

In the month of Dec -18, Pak Oman Government Security Fund posted areturn of 6.88% against its benchmark 10.46%. On YTD basis, the fundposted a return of 5.29% as compared to benchmark return of 8.77% . Bymonth end, exposure against treasury bills stood at 70.31% against 69.34%in the previous month. Exposure against Term Finance Certificates TFCsremained at 26.96% while reaming funds were invested in Cash.

December- 2018

Historical Returns


POGSF 9.22% 7.08% 8.63% 8.75% 4.28% 4.30%

Benchmark 8.67% 8.67% 8.12% 5.84% 5.64% 6.21%



JS Bank Limited (14-Dec-16) 100.4331 10.19%

Jehangir Siddiqui Co. Ltd (18-July-17) 99.7508 9.38%

Bank of Punjab Limited (13-Apr-18) 98.3251 7.39%



Fund Stability Rating A+ (f) PACRA

Risk Profile of Fund Low to Medium

Disclosures

SWWF (As per Circular 17 of 2012): The scheme has maintained provision against SWWF amounting Rs. 1.315 million. If the above recognition had not been made, the net asset value per unit/YTD return of the Scheme would be higher by 0.0548 per unit / 0.52%.



IC Members:



CIO Jamshed Aziz



*Discretion Applied

88.29%

6.96% 4.75%

77.58%

19.29%3.13%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

TFCs Cash O. Receivables

30 Nov 18 31 Dec 18


Leverage: Nil

AAA, 0.84%

AA+, 7.52%

AA, 32.06%AA-, 29.66%

A+, 22.19%

A-, 4.57%

N.R., 3.17%

AAA AA+

AA AA-

A+ A-

N.R.



AHYS 6.38% 9.11% 6.37% 5.62% 8.26%

Benchmark 7.60% 11.16% 7.32% 6.90% 7.63%

Key Statistics


Net Assets (PKR mn) 1,841.804








Fund Stability Rating A by JCR-VIS

Risk Profile of Fund Medium

Fund Information

Fund Objective

The objective of the Fund is to provide investors an opportunity to make competitive returns from fixed income securities while targeting a portfolio duration of six months.


Nature of Scheme Aggressive Fixed Income Scheme

Inception Date 16-Mar-06

Benchmark Average 1 Year KIBOR


Mon – Fri 9:00am / 4:30 pm




Back end load 1.00%





Auditor EY Ford Rhodes Chartered Accountants



Askari High Yield Scheme

IC Members:



CIO Jamshed Aziz



Monthly Review

In the month of Dec -18, Askari High Yield Scheme posted a return of 9.11%as benchmark return of 11.16%. Asset under management closed at PKR1,841 millions as compared PKR 1,746 in previous month. By month end,exposure against Term Finance Certificate (TFCs) were 77.58% as comparedto 88.29% in previous month. Remaining funds were invested as Cash with Aand above rated Banks.

December- 2018



Dawood Hercules Corp. Ltd. (1-Mar-18) 100.0001 15.63%


Bank of Punjab Ltd (23-12-2016) 98.8200 10.47%


Jehangir Siddiqui Co Ltd – TFC (18-07-2017) 99.7508 7.46%

TPL Corp Limited (14-Dec-17)* 100.4087 4.24%

Soneri Bank Ltd TFC (08-07-2015) 99.9625 3.99%

U-Micro Finance Bank Limited (30-June-17) 111.2115 3.33%

Dawood Hercules Corp. Ltd (16-Nov-17) 100.0054 2.44%



Historical Returns


AHYS 1.61% 11.63% 12.16% 8.23% 5.34% 5.13%

Benchmark 9.93% 9.83% 8.97% 6.53% 6.33% 6.57%

Disclosures

SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers’ Welfare Fund’s liability to the tune of Rs. 13.595 million, if the same were not made the NAV per unit/ YTD return of Scheme would be higher by Rs 0.7380/ 0.72%.



*Discretion Applied

52.94%

12.93%

28.28%

5.85%

56.67%

39.68%

0.00%3.65%

0.00%

20.00%

40.00%

60.00%

Corporate Sukuk Cash Bank Placement Other incl.receivables

30 Nov 18 31 Dec 18


Leverage: Nil


AIIF 5.37% 4.15% 5.15% 5.00% 5.74%

Benchmark 2.84% 3.20% 2.64% 3.09% 4.41%

Key Statistics










Fund Stability Rating A+ by JCR-VIS


Fund Information

Fund Objective

The objective of the Fund is to provide investors a Shariahcompliant product with stable halal income. The fund wouldtarget on capitalizing available opportunities in the Shariahcompliant income generating instruments. The Fund willfocus on superior quality portfolio compared with averageportfolio quality of Islamic income funds in the industry andenhanced returns over a 3 month horizon.


Nature of Scheme Shariah Compliant Islamic Income

Inception Date 18-Oct t-09

BenchmarkAverage 6 months Placement (Deposit) rate as selected by MUFAP.


Dealing Day/cut off time Monday – Friday 9.00 am to 4.30 pm




Back end load 1.00%








Askari Islamic Income Fund

Monthly Review

In the month of Dec -18, Askari Islamic Income Fund posted a return of4.15% as compared to its benchmark of 3.20%. Asset Under managementwere closed at PKR 190 millions as compared to PKR 199 millions in theprevious month. By the month end, exposure against Corporate Sukuk werekept at 56.67% as compared to 52.94% in the previous month. Whileremaining funds were invested as Cash with A and above rated IslamicBanks/ Islamic windows of Commercial Banks.

December- 2018



TPL Trakker Limited (13-Apr-16)* 104.8064 25.42%


Dawood Hercules Corp. Ltd. (1-Mar-18) 100.0001 6.32%


Historical Returns


AIIF 8.74% 7.93% 6.52% 5.08% 5.49% 4.79%

Benchmark 6.65% 7.34% 6.41% 4.31% 2.92% 2.45%

Disclosures

SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers’ Welfare Fund’s liability to the tune of Rs.1.414 million, if the same were not made the NAV per unit/YTD return of Scheme would be higher by Rs.0.771/ 0.76%.

AA, 31.26%

A+, 25.52%

A, 39.34%

A-, 0.12% N.R., 3.77%AA

A+

A

A-

N.R.




IC Members:



CIO Jamshed Aziz



*Discretion Applied

9.92%

88.23%

1.04% 0.81%9.96%

0.00%

89.59%

0.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

TFCs T-Bill Cash Other incl.receivables

30 Nov 18 31 Dec 18


Leverage: Nil


ASYE 6.02% 8.88% 5.60% 5.31% 7.51%

Benchmark 8.77% 10.46% 7.59% 6.34% 7.20%

Key Statistics










Fund Stability Rating A+ by JCR-VIS


Fund Information

Fund Objective

The objective of the Fund is to generate relatively higher yield than the conventional bank deposits, from a portfolio constituted of credit worthy sovereign instruments and banking sector fixed income instruments and deposits.


Nature of Scheme Income Scheme

Inception Date 07-July-12

Benchmark Average 6 month PKRV


Mon – Fri 9:00am / 4:30 pm




Back end load 0.00%








Askari Sovereign Yield Enhancer

Monthly Review

In the month of Dec -18, Askari Sovereign Yield Enhancer posted a return of8.88% against a benchmark of 10.46%. On year to date basis fund posted areturn of 6.02% as compared to benchmark return of 8.77%. By month end,exposure against Treasury Bills were kept at nil against 88.23% in theprevious month. By month end, exposure in Term Finance Certificate stoodat 9.96% while remaining 88.59% of fund were invested as Cash with Banks.

December- 2018



Bank of Punjab Ltd. (23-12-16) 98.8200 9.96%


Historical Returns


ASYE 10.98% 8.83% 10.74% 9.21% 4.83% 4.53%

Benchmark 8.92% 8.09% 8.33% 5.31% 6.10% 6.21%

Disclosures

SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers’ Welfare Fund’s liability to the tune of Rs.2.387 million, if the same were not made the NAV per unit/ YTD return of Scheme would be higher by Rs.1.5640 / 1.53%.

AA+, 0.57%

AA-, 98.89%

N.R., 0.54%

AA+

AA-

N.R.




IC Members:



CIO Jamshed Aziz



*Discretion Applied

Key Statistics






Askari Asset Allocation FundDecember- 2018

Top 10 holdings (% of Assets)


Netsol Technologies Limited 3.68%





Sui Northern Gas Pipelines Limited

1.80%

Lucky Cement 1.74%

Faysal Bank Limited 1.56%




7.75%

Fertilizers 4.45%


3.89%


3.72%

Technology & Communication

3.68%

Others 12.16%

38.33%

15.59%

34.34%

11.74%

35.66%

10.07%

42.79%

11.48%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

Equitiy Cash TFCs/Sukuk Other receivables

30 Nov 18 31 Dec 18


Leverage: Nil

Historical Returns


AAAF 39.87% 19.31% 15.40% -6.25% 10.49% -18.84%

Benchmark 22.73% 18.24% 17.85% 3.84% 10.03% -12.15%


AAAF -5.11% -4.27% -7.93% -14.36% 7.03%

Benchmark -2.41% -3.78% -4.17% -0.73% 9.65%

IC Members:



CIO Jamshed Aziz


Fund Information

Fund Objective

The objective of the Fund is to provide investors, an investment solution through disciplined and structured investment techniques. The Fund shall target capitalizing on opportunities available in both fixed income and equity markets using in-house research and proprietary investment matrix.


Nature of Scheme Asset Allocation Fund


Benchmark

Weighted Average Daily Return of KSE-30 Index and 6 month KIBOR as per amount investment in equities and fixed income investments including cash and cash equivalents respectively.


Mon – Fri 9:00am / 4:30 pm




Back end load 2.50%











Fund Ranking 1 Year - 2 Star, 3 Year – 2 Star, 5 Year - 2 Star by JCR-VIS

Risk Profile Medium

Disclosures:

SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers’ Welfare Fund’s liability to the tune of Rs.0.675 million, if the same were not made the NAV per unit/ YTD Return of Scheme would be higher by Rs 0.0051 / 0.02%.

Monthly Review

In the month of Dec -18, Askari Asset Allocation Fund posted a return of -4.21% as compared to benchmark return of -3.78%. Net Asset of the Fundsstood at PKR 132 million as compared to PKR 178 million in the previousmonth. By the month end, equity exposure was increased to 35.66% ascompared to 38.33% in the previous month. Cash position stood at 10.07%of the total fund size. While 42.79% of the assets were invested in debtsecurities.


**Absolute *Adjusted for dividend


Instrument Price% of Total

Assets

Bank of Punjab Limited – (13-Apr-18) 98.3251 12.52%



TPL Corp Limited TFC (14-Dec-17) 99.9625 7.54%

**Absolute Return

Key Statistics






Askari Islamic Asset Allocation FundDecember- 2018






Mari Petroleum 3.37%

Sui Northern Gas Pipelines Limited 3.26%







12.07%


11.31%

Fertilizers 9.91%


4.54%

Cements 4.02%

Others 18.56%

63.19%

19.77%

8.33% 8.71%

60.40%

21.17%

9.70% 8.72%

0.00%

20.00%

40.00%

60.00%

80.00%

Equitiy Cash TFC Others receivables

30 Nov 18 31 Dec 18


Leverage: Nil

Historical Returns


AIAAF 30.80% 12.53% 12.32% -2.82% 13.08% -20.00%

Benchmark 27.51% 17.21% 12.44% 9.54% 10.03% -5.22%


AIAAF -7.92% -5.12% -9.78% -10.85% -0.19%

Benchmark -8.09 -7.11% -7.50% 10.38% 28.52%

IC Members:



CIO Jamshed Aziz



**Absolute *Adjusted for dividend

Fund Information

Fund Objective

The objective of the Fund is to provide investors a Shariah compliant investment solution through disciplined and structured investment techniques. The fund shall target capitalizing on opportunities available in both Shariah compliant debt and equity markets using in-house research and proprietary investment matrix.


Nature of Scheme Shariah Compliant Asset Allocation


Benchmark

Weighted Average Daily Return of KMI- 30 Index and 6 month average deposit rate of 3 Islamic Banks as per amount invested in equities and fixed income investments including cash & cashequivalents respectively.



Mon – Fri 9:00am / 4:30 pm




Back end load 5.00%











Fund Ranking 1 Year – 3 Star, 3 Year – 1 Star, 5 Year - 2 Star by JCR-VI

Risk Profile Medium

Disclosures:

SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers’ Welfare Fund’s liability to the tune of Rs.0.3995 million, if the same were not made the NAV per unit/ YTD return of Scheme would be higher by 0.3566 / 0.38%.

Monthly Review

In the month of Dec 18, Askari Islamic Asset Allocation Fund posted a returnof -5.12% as against the benchmark return of -7.11%. Net Assets of the fundstood at PKR 97 million as compared to the PKR 113 million in the previousmonth. During the month equity exposure stood at 60.40% as compared tothe 63.19% in the previous month. At the month end, Cash was maintainedat 21.17%. While exposure in TFC is kept at 9.70% of total fund size.


Instrument Price% of Total

Assets


**Absolute Return

Key Statistics






Askari Equity FundDecember- 2018




Bank Al-Habib Limited 3.95%


Pakistan State Oil Ltd. 3.37%

Faysal Bank Limited 3.35%

Habib Bank Limited 3.16%





Banks 21.50%


10.78%

Power Generation and Distribution 8.90%

Fertilizers 6.44%

Oil and Gas Marketing 5.80%

Others 11.45%

82.92%

12.28%4.80%

64.88%

31.25%

3.86%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

Equity Cash Others Receivables

30 Nov 18 31 Dec 18


Leverage: Nil

Historical Returns


AEF 42.07% 28.73% 17.59% -5.25% 14.80% -22.06%

Benchmark 35.95% 25.96% 5.67% 0.37% 12.00% -15.18%


AEF -11.64% -8.43% -13.75% -14.59% 9.06%

Benchmark -16.51% -11.32% -15.05% -9.45% -4.37%

IC Members:



CIO Jamshed Aziz



**Absoulute *Adjusted for dividend

Fund Information

Fund Objective

The objective of Askari Equity Fund (AEF) is to provide equity investors a vehicle for their long term investment needs, capable of locking in capital appreciation and securing reasonable dividends from listed equity securities. The Fund would seek to replicate benchmark returns and reduce volatility compared with the benchmark through efficient equity allocations, enhancing “Risk Adjusted Returns”.


Nature of Scheme Equity Fund

Inception Date 30-Mar-12

Benchmark KSE-30 Index


Mon – Fri 9:00am / 4:30 pm




Back end load 0.00%











Fund Ranking1 Year - 2 Star, 3 Year – 1 Star, 5 Year – 1 Star by

JCR-VIS

Risk Profile of Fund Medium to High

Disclosures:

SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers’ Welfare Fund’s liability to the tune of Rs.0.4596 million, if the same were not made the NAV per unit/YTD return of Scheme would be higher by Rs.0.3767 / 0.39%.

Monthly Review

In the month of Dec -18, Askari Equity Fund posted a return of -8.43% ascompared to its benchmark KSE-30 return of -11.32%. Net Assets of the fundstood at PKR 103 million as compared to PKR 127 million in the previousmonth. By the month end, equity exposure was 64.88% as compared to82.92% of the previous month. Cash was maintained at 31.25% of the totalsize of the fund.

**Absolute Return

*Equity exposure as percentage of Net Assets as on 31-Oct-18 stood at 76.25%

Non Compliant Exposures / Assets in Askari High Yield SchemeDecember- 2018

Name Of Non Compliant InvestmentType of

Investment

Value of Investment

Before Provisioning

Provision held if any

Value of Investment

After Provisioning

Suspended Markup

% of Net Assets

% of Gross Assets

Saudi Pak Leasing TFA 15,000,000 15,000,000 - - 0% 0%

Trust Investment Bank TFA 129,111,798 129,111,798 - 62,730,846 0% 0%

Pace Pakistan Limited TFC 74,895,000 74,895,000 26,127,415 51,871,317 0% 0%

Agritech Limited (30-11-2007) TFC 37,470,000 37,470,000 - 39,430,381 0% 0%

Agritech Limited (01-01-2012) TFC 11,875,000 11,875,000 - 7,078,801 0% 0%

New Allied Electronics (LG) PPTFC 10,221,613 10,221,613 14,300,909

Trust Investment Bank Limited TFC 18,742,500 18,742,500 - 10,962,447 0% 0%

Dewan Cement Limited TFC 125,000,000 125,000,000 - 167,150,856 0% 0%

Security Leasing Company Limited TFC 12,322,907 12,322,907 - - 0% 0%

TOTAL434,638,818 397,206,288 26,127,415 353,525,557 0% 0%

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. The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. The calculation of performance does not include cost of front end load .


Below are the details of non-Compliant exposure/assets in our funds. These non-compliant exposures/assets include non-performing assets which have been classified in line with the applicable SECP circulars and the provisioning policy** (available on our web site) approved by the Board of Directors of Askari Investment Management Limited.

**Presents market value of shares

Name Of Non-Compliant InvestmentType of

Investment

Value of Investment Before

Provisioning

Provision held if any

Value of Investment After

Provisioning% of Net Assets % of Gross Assets

International Brands Limited (15-Nov-17) Sukuk14,808,210 - 14,808,210

14.06% 13.67%

Askari Sovereign Yield Enhancer

Bank of Punjab Limited (23-Dec-16) TFC17,279,665 - 17,279,665

10.74% 9.96%

Pak Oman Government Securities Fund

JS Bank Limited (16-Dec-16) TFC27,095,243 - 27,095,243

10.33% 10.19%

Askari Islamic Income Fund

TPL Trakker Limited (13-Apr-16) Sukuk50,307,072 - 50,307,072

26.37% 25.42%


25.87% 24.94%

Pak Oman Advantage Islamic Income Fund


15.68% 15.45%

Askari High Yield Scheme

Dawood Hercules Corp. Limited (28-Feb-18)

Sukuk313,300,361 - 313,300,361

16.16% 15.63%


13.75% 13.30%


10.82% 10.47%


10.22% 9.88%

Askari Asset Allocation Fund


13.34% 12.52%


13.07% 12.26%


11.17% 10.48%

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