LAKSON GROUP
ONLINE www.li.com.pk
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ADDR ESS Lakson Investments Limited. Lakson Square, Building No. 2, Sarwar Shaheed Road, Karachi-74200, Pakistan
CONTENTS 04
06
07
Economic & Markets Review
FMR Lakson Money Market Fund
FMR Lakson Income Fund
08
09
10
FMR Lakson Equity Fund
FMR Lakson Tactical Fund
FMR Lakson Islamic Tactical Fund
13
14
11 FMR Lakson Asset Allocation Developed Markets Fund
Funds Return History
17 Markets Information
Mutual Funds Performance Comparison
4
Economic & Markets Review PAKISTAN Economy
CPI inflation in July 2017 dipped to 2.9% vs. 3.9% in June 2017. In spite of a 0.3% MoM uptick during Jul-17 yearly inflation fell sharply, due to the high base effect of Jul16. Lower inflation was attributable to weaker food / beverage & tobacco / transport inflation of 0.7% YoY / -15.9% YoY / 3.2% YoY. Sharp increase in food item prices in Ramadan last year, compared with lower regulated prices this time created a base effect of -2.7ppt in food inflation. Moving ahead, CPI would remain contained unless the GoP decides to pass through higher international oil prices to the domestic consumer. Large-scale manufacturing (LSM) increased by 5.7%YoY in 11M FY17, major contributors were Iron and Steel (20.01%YoY), Electronics (16.2% YoY) and Automobiles (12.3%YoY). Private sector credit off-take continue to accelerate (up 15%YoY in Mar'17 vs. 8% in Mar'16) with impetus from Construction (+29%YoY), Apparel and Garments (+27%YoY) and Food (+18%YoY) sectors.
Yield Curve 11.5% 10.5% 9.5% 8.5% 7.5% 6.5% 5.5% 1W
During the month of June, current account deficit clocked in at US$ 1.4bn, taking the full year current account deficit to US$ 12.1bn or 4% of GDP. Fall in exports by US$ 3.4bn and surge in non-oil imports (US$ 11.0bn) outweighed the gains from lower oil prices and increased remittances. FDI depicted growth of 4.5% YoY to US$ 2.4bn in FY17. During the month of Jun'17, FDI flows stood at US$ 199mn, lower by 32% MoM Remittances dropped by 1% MoM to US$ 1.83bn in Jun'17, and on a YoY basis, were down by 3.0% during FY17 to US$ 19.30bn. This was primarily attributable to 5% YoY decline in remittances from MENA Region (63% of total remittances). Foreign exchange reserves declined by 5% to US$ 20.28bn in Jul'17 vs. USD 21bn in Jun'17. Equities
The PSX-30 index moved within a wide band of 1,353 points during July'17 amid thin participation, with average daily turnover of 56.83mn shares. The index fell to 22,747 during first half of the month due to political uncertainty created by JIT proceedings, but recovery in later sessions clipped month’s the loss to 413 points. The much awaited verdict in Panama Papers case was the major development during the last leg of the month, wherein the apex court disqualified the PM from holding public office and referred the case to National Accountability Bureau (N.A.B) for the commencement of criminal investigation against the Sharif family. The persistent political turmoil remained the major factor leading to netselling of USD37.95mn by foreign investors during the month. However, all E&P stocks outperformed the index upon upsurge in international crude prices, whereas HCAR, LUCK, UBL and HBL came in as the worst performers owing to profit taking ahead of apex court's verdict in the Panama Papers case.
2M
6M
2Y
5Y
30-Jun-17
8Y
15Y
31-Jul-17
USD/PKR vs. Forex Reserves
Forex Res. (USD bn.) - RHS
109.0
22.0
USD/PKR
21.5 108.0
21.0 20.5
107.0
20.0 106.0
19.5 19.0
105.0
18.5 104.0
18.0 1-Jul
8-Jul
15-Jul
22-Jul
29-Jul
Market Rates
Fixed Income
6.25%
In its Monetary Policy Statement in July, the central bank kept Policy/Discount rate unchanged at 5.75%/6.25% citing concerns on the external front and buildup in inflationary trends due to rising economic activity and credit off-take. In two T-Bill auctions during July, the government raised PKR 1,616 bn. Weighted average yields were broadly unchanged at 5.99%/6.01%/6.04% for 3/6/12month tenures. In the PIB auction, GoP raised PKR 54.47bn, where the greatest participation was seen in the 10yr tenure. Cut off yield for 3/5/10yr tenure were 6.40%/6.89%/7.93%.
6.00%
5.75% 4-Jul 6M KIBOR
13-Jul
22-Jul O/N Repo Rate
31-Jul 6M T-Bill
During the month of June, current account deficit clocked in at US$ 1.4bn, taking the full year current account deficit to US$ 12.1bn.
5
Economic & Markets Review INTERNATIONAL Developed Markets Developed markets mostly performed well in July, with the MSCI Europe, Australasia and Far East (EAFE) Index rising by 2.85%. A number of countries in the Eurozone outperformed the EAFE Index, while UK and the US underperformed. Sweden and Ireland posted losses during the month. While the S&P 500 underperformed the MSCI EAFE Index, it still managed to post sizable returns of 1.93% in July. Sentiments were helped by a strong earnings season and reporting of 0.6% GDP growth in Q2CY12. Fed's decision to hold the policy rate constant was also welcomed by the market. On the other hand, the ruling party's failure to pass the Obamacare repeal bill dented investors' confidence in the President's ability to bring about healthcare and tax reforms. Furthermore, University of Michigan's survey showed that consumer confidence was at a nine month low in July. Going forward, the perceived ability of the new administration to introduce reforms will drive the market. Eurozone countries, especially Austria, Belgium, Italy and the Netherlands outperformed due to posting of strong economic growth numbers in the second quarter. Sentiment in the Eurozone was also helped by Greece (an emerging market) getting in principle approval for IMF's standby arrangement as well as the country's return to bond markets. Sweden was one of the few countries whose equities actually declined during the month. The country's OMX Stockholm 30 Index was down 3.4%, even though data released towards the end of July showed that the country's GDP grew at the fastest rate in Q2 since 2010. The figure, 1.7%, far exceeded economist's consensus expectations of 0.9%, and Q1's reported GDP growth rate of 0.6%. Emerging markets July was the best month for Emerging Markets (EM) this year since January, as the MSCI EM Index rose by 5.48%. Heavyweights China and Brazil underperformed their peers, while smaller markets like Turkey, South Africa and UAE outperformed. Most countries gave a positive return during the month with the exception of Saudi Arabia, Argentina and Malaysia.
Performance of Equities and Commodities 140%
MSCI World Index MSCI EM Index DB Commodity Index
120%
100%
80%
60% Jul-16
Oct-16
Jan-17
Apr-17
Valuation of International Markets 24 20 16 12 8
India's BSE Sensex Index surged by 5.2%, and the 50-share Nifty breached the psychological level of 10,000 points for the first time during the month. A rally in metal stocks and quarterly earnings optimism boosted sentiments. Going forward implementation of the Goods and Services Tax (GST) can be disruptive, but strong earnings growth on the back of low base effect and low interest rates can potentially lead the market higher. Furthermore, markets may be affected by the signals on inflation the Reserve Bank of India gives in its monetary policy meeting in August, wherein analysts expect a rate cut.
4 DM
US
UK
Japan
Canada
EM
Brazil
Russia
India
China
P/E Multiple
Greece's ASE Index lost steam in July, after gaining 28% in the first half of 2017, as of positive news flow could not counter the profit booking. The good news included (i) IMF's in principle approval of a standby arrangement for Greece worth EUR 1.6bn, and (ii) Greece's return to the bond market after three years. China's Shanghai composite underperformed its peers and rose by only 2.5% in July even though MSCI had decided in favor of adding some mainland Chinese stocks to its benchmark emerging markets index in June, and even though the country's reported GDP growth rate for the second quarter, 6.9%, exceeded expectations of 6.8%. After two flat months the Brazilian Bovespa Index rose 4.8% in July as investors responded positively to the sentencing of Former President Luiz Inacio Lula da Silva on charges of corruption. Sentiments in the Brazilian market continue to be dominated by corruption charges against politicians, and developments on the charges against President Michel Temer are likely to affect the market. Commodities markets Almost all commodities rallied in July, with the lead being taken by steel. July was the third straight month of price hike, and Chinese Cold Rolled Coil increased by 11.4%, Hot Rolled Coil increased by 10.6% and UK's exported steel scrap price rose by 12.5%. Reason for rise in steel scrap price is a continuous rise in nickel prices. Furthermore, Chinese rebar prices have risen because the Chinese Government has deployed 18 teams to inspect low-end steel plants and clamp down on them. China has already closed around 120 million tonnes of annual low-grade steel capacity, mostly making products for the construction industry, in the first half of the year. Oil prices too rallied in July mostly due to a fall in stockpiles of crude oil in the US. Data released by Energy Information Administration in the last week of July showed that US crude stocks fell sharply by 7.2m barrels on robust refining activity and a jump in exports. This was a bigger draw than analysts had anticipated and marked the fourth straight week of declines. Further, the front of the Brent oil futures curve moved into backwardation, suggesting the oil market is tightening in the near term. Later months, however, remain at a premium signaling the glut is far from over. Moreover, Saudi Arabia's pledge to cut exports and Nigeria's agreement to cap its output further helped sentiment. Arab Light price closed the month at USD 50.69/bbl, up 10.39% from a month earlier, while Brent closed at USD 52.72/bbl, up 7.5% from a month earlier. Going forward there are chances that Saudi Arabia may not honour its commitment to cut exports as it will have excess supply of oil after the summer, when oil is used for producing electricity for air-conditioning. The ending of summer, and the driving season, in the US, will also result in lesser demand in that country. These seasonality factors can have an adverse affect on international oil prices in the coming months. Following the rally in crude oil prices, prices of petrochemicals too increased in July, with price of South East Asian Purified Terephthalic Acid (PTA) up 7.2%, Ethylene up 7.9%, Paraxylene (Px) up 4.5%, and Poly-vinyl Chloride (PVC) up 2.3% during the month. The month of July came as a relief for these commodities as they have mostly been declining since March of this year.
July was the best month for Emerging Markets (EM) this year since January.
6
LAKSON MONEY MARKET FUND MUFAP’s Recommended Format Investment Objective
FU ND F AC T S
The investment objective of the Lakson Money Market Fund is to provide stable and competitive returns in line with the money markets, exhibiting low volatility consistent with capital preservation by constructing a liquid portfolio of low risk short term investments. Performance Review
SWWF Disclosure
The Lakson Money Market Fund generated an annualized return of 5.39% against the benchmark return of 5.16% during Jul'17. During CY17TD the Fund has returned 7.66% to unit holders against the benchmark of 5.31% and outperformed by 2.35%. Asset allocation changed with allocation to T bill at 98%. As a result portfolio WAM was calculated at 33 days. Going forward the Fund will focus on increasing exposure to attractive Cash and Term deposit placements in order to generate returns and mitigate interest rate risk.
As of July 31th, 2017 the LMMF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 5.79 million. If the same were not made the NAV per unit of the LMMF would be higher by PKR 0.1278. If the LMMF would not have made the SWWF provisions during FY18, the year to date annualized return of the LMMF for FY18 would be higher by 0.13%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LMMF.
Total Expense Ratio (TER)
Fund Type Category Net Assets (PKR Mil.) NAV (31.07.2017) Pricing Mechanism Trustee Auditor Management Fee
Front End Load Back End Load Launch Date Benchmark*
Dealing Days Cut-Off Time Fund Stability Rating Asset Manager Rating Risk Profile
Open-End Money Market Fund 4,562 100.6205 Previous Day CDC Pakistan Limited BDO Ebrahim & Co. 10% of Gross Earnings subject to a minimum of 0.50% and maximum of 1.00% of the average annual net assets. Current - 0.64% None None November 13, 2009 70% average 3 months PKRV rates + 30% average 3 months deposit rate of three AA rated banks Mon-Fri 4:00 PM 'AA' by PACRA (09.12.2016) AM2+ by PACRA (15.05.2017) Low Risk
1.03% (This is inclusive of 0.29% representing Government levies and SECP Fees) YTD 0.09% (This is inclusive of 0.03% representing Government levies and SECP Fees) 1% 1%
Asset Allocation
1%
T Bills Cash Others
Govt. Sec. AA+
Credit Split
98%
98%
Asset Allocation Instruments (% of total Assets) Instruments Placements with Banks & DFIs PIBs T Bills Cash Others including receivables * Weighted Average Maturity
May-17 0% 0% 90% 10% 0%
Jun-17 0% 0% 0% 100% 0%
Jul-17 0% 0% 98% 1% 1%
WAM* days 0 0 33 1
PERFORMANCE Morningstar FY17 - YTD July-17 2 Months 3 Months 6 Months 12 Months CY17 - YTD
LMMF 5.52% 5.52% 7.67% 6.77% 6.07% 6.80% 7.79%
Benchmark 5.26% 5.26% 5.28% 5.32% 5.37% 5.27% 5.37%
Simple Annualized FY17 - YTD July-17 2 Months 3 Months 6 Months 12 Months CY17 - YTD 3 Years 5 Years Since Inception
LMMF 5.39% 5.39% 7.44% 6.60% 5.98% 6.80% 7.66% 5.71% 7.29% 11.85%
Benchmark 5.14% 5.14% 5.16% 5.22% 5.30% 5.27% 5.31% 5.77% 7.40% 11.71%
*The benchmark of the Fund was changed in February 2014 and September 2016.
LMMF vs. Benchmark 108
Non Compliant Investments Name on investment Type of instrument Value of investment before provisioning
107
Disclosures Leverage as on July 31st, 2017 Non Performing Assets WAM of Portfolio
106 105
Nil Nil 33 Days
Total provision held Value of investment after provisioning % 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. Tha Lakson Money Market Fund holds certain non-complaint investments. Before making any investment decision investors should review this document and the latest financial statements.
LAKSON OUTLOOK
104 103 102 101 100 Jul-16
Aug-16 Sep-16 Oct-16 Nov-16 LMMF
Dec-16
Jan-17 Feb-17
Mar-17
Apr-17
May-17 Jun-17
Benchmark
INVESTMENT COMMITTEE Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA
Chairman
July 2017
7
LAKSON INCOME FUND MUFAP’s Recommended Format Investment Objective
FUND FACTS
The investment objective of the Lakson Income Fund is to provide competitive total return through investment in a diversified portfolio of fixed income securities. Investments will be made in a variegated mix of short term, medium term and longer term maturities depending on the assessment by the Investment Team of interest rate trends and prospective returns. Performance Review
SWWF Disclosure
In Jul 2017, LIF generated an annualized return of 5.67% against the benchmark return of 6.11%. Asset allocation changed with placements at 16%, cash exposure increased to 60%, corporate debt increased to 10.91%, MTS decreased to 0.61% and RBFS at 0.51% . This resulted in a portfolio WAM of 172 days. Going forward the Fund will concentrate on building exposure to high quality corporate debt and bank deposits placements.
As of July 31st, 2017 the LIF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 4.99 million. If the same were not made the NAV per unit of the LIF would be higher by PKR 0.1261. If the LIF would not have made the SWWF provisions during FY18, the year to date annualized return of the LIF for FY18 would be higher by 0.12%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the LIF.
Fund Type Category Net Assets (PKR Mil.) NAV (31.07.2017) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark* Dealing Days Cut-Off Time Fund Stability Rating Asset Manager Rating Risk Profile
Open-End Income Fund 4,007 101.1607 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 1.50% 1.50% None November 13, 2009 Average daily rate of 6M KIBOR (Ask) Mon-Fri 4:00 PM 'A+' by PACRA (09.12.2016) AM2+ by PACRA (15.05.2017) Medium Risk
PERFORMANCE Total Expense Ratio (TER) 2.06% (This is inclusive of 0.41% representing Government levies and SECP Fees) YTD 0.18% (This is inclusive of 0.04% representing Government levies and SECP Fees)
9%
16% 2%
Asset Allocation
8% 3% 1% 1%
60%
Placements with Banks & DFIs T-Bills TFC Sukuk MTS Spread Tran Cash Others
5%
27%
2% 2% 6% 1% 1%
Credit Split 46%
Gov Sec AAA AA+ AA AAA AUnrated
Asset Allocation Instruments (% of total Assets) Instruments Placements with Banks & DFIs PIBs T Bills TFCs Sukuks MTS Spread Transactions Cash Others including receivables * Weighted Average Maturity
May-17 20% 0% 2% 6% 3% 7% 0% 57% 5%
Jun-17 26% 0% 3% 6% 3% 2% 6% 50% 5%
Jul-17 16% 0% 2% 8% 3% 1% 1% 60% 9%
WAM* days 142 0 26 1749 280 0 0 1
Morningstar FY17 - YTD July-17 2 Months 3 Months 6 Months 12 Months CY17 - YTD Simple Annualized FY17 - YTD July-17 2 Months 3 Months 6 Months 12 Months CY17 - YTD 3 Years 5 Years Since Inception
LIF 5.82% 5.82% 12.24% 9.97% 7.91% 6.92% 7.93% LIF 5.67% 5.67% 11.66% 9.62% 7.76% 6.92% 7.80% 9.64% 10.23% 14.28%
Benchmark 6.28% 6.28% 6.28% 6.28% 6.26% 6.28% 6.25% Benchmark 6.11% 6.11% 6.12% 6.14% 6.16% 6.28% 6.17% 7.43% 8.25% 11.90%
*The benchmark of the Fund was changed in September 2016
LIF vs. Benchmark 107 106 105 104
Disclosures
TFCs/Sukuk Portfolio Name of the Issuer PEL SUKUK Habib Bank Limited I JSCL TFC Bank Al Falah Limited V Askari Bank Limited IV NRSP K-Electric AZM Sukuk III
Issue Date
Rating
% of Total Assets
25-Aug-16
A
1.97%
19-Feb-16 18-Jul-22
AAA AA+
1.85% 1.84%
20-Feb-13
AA-
1.63%
23-Dec-11 30-Jun-16
AAA
1.39% 1.23%
24-Feb-14
AA
1.01%
Leverage as on July 31st, 2017 Non Performing Assets WAM of Portfolio
103 102
Nil Nil 172 Days
Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved.
LAKSON OUTLOOK
101 100 Jul-16
Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17
LIF
Apr-17
May-17 Jun-17
Benchmark
INVESTMENT COMMITTEE Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA
Chairman
July 2017
8
LAKSON EQUITY FUND MUFAP’s Recommended Format Investment Objective
FUND FACTS
The investment objective of the Lakson Equity Fund is to provide long term capital appreciation by investing mainly in equity and related listed securities. Investments will be made in companies of substance, financial strength and demonstrably superior management skills with some exposure given to smaller capitalized value stocks. Performance Review
SWWF Disclosure
In the first month of the new financial year, LEF generated a return of -2.1% vs the benchmark return of -1.7%, clocking a MTD and FYTD underperformance of 40bps. The fund maintained a strong position in the market with an overall position of 90% in equities. LEF realized gains in Construction and redeployed proceeds into Oil & Gas Exploration. Reshuffling within the sectors took place to reduce fundamentally inflated stocks and maintain higher exposure in stocks that were trading at cheap valuations.
As of July 31st, 2017 the LEF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 38.09 million. If the same were not made the NAV per unit of the LEF would be higher by PKR 1.2622. If the LEF would not have made the SWWF provisions during FY18, the year to date return of the LEF for FY18 would be higher by 0.98%. For details investors are advised to read the latest Financial Statements of the LEF.
Open-End Equity Fund 3,868 128.1618 Forward Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 2.00% 3.00% None November 13, 2009 KSE-30 Index (Total Return Index) Mon-Fri 4:00 PM 4 Star (08.05.17) AM2+ by PACRA (15.05.2017) High Risk
PERFORMANCE*
Total Expense Ratio (TER) 2.70% (This is inclusive of 0.40% representing Government levies and SECP Fees) YTD 0.23% (This is inclusive of 0.04% representing Government levies and SECP Fees) Top 10 Holdings Weight Habib Bank Limited 4.80% Hub Power Co 4.39% Mari Petroleum Co. Limited 4.24% United Bank Limited 4.24% Oil & Gas Development Co 4.08% Sui North Gas Pipelines Limited 4.08% Lucky Cement Limited 3.96% Nishat Mills Limited 3.93% MCB Bank Limited 3.77% Engro Corporation Limited 3.44%
Sectorwise Exposure Chemicals*
Jun-17
Jul-17
7.98%
7.03%
Comm Banks
23.38% 22.83%
Const. & Mat.
14.72%
Electricity
5.36%
5.37%
Oil & Gas Exp
9.22%
12.18%
8.41%
8.13%
Others
21.66%
21.61%
*Includes fertilizers
1%
7% 22%
Equity Cash Others
12.58%
Oil & Gas Mktg
11%
Asset Allocation
Fund Type Category Net Assets (PKR Mil.) NAV (31.07.2017) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark* Dealing Days Cut-Off Time Fund Performance Ranking (1 Year) Asset Manager Rating Risk Profile
8%
Sector wise Exposure
23%
12% 5%
90%
13%
Chemicals Comm Banks Const. & Mat Electricity Oil & Gas Exp Oil & Gas Mktg Others
LEF -2.10% -2.10% -9.47% -6.70% -2.99% 17.08% -1.33% 64.61% 196.00% 312.10%
FY17 - YTD July-17 2 Months 3 Months 6 Months 12 Months CY17- YTD 3 Year 5 Year Since Inception
Benchmark** -1.70% -1.70% -10.28% -7.55% -7.24% 10.35% -5.62% 19.05% 127.79% 266.20%
*Returns based on last working day NAV **KSE-30 Total Return
LEF vs. Benchmark 145 140 135 130 125 120 115
Asset Allocation (% of Total Assets) May-17 Jun-17 Jul-17
Pakistan vs. Global Markets
110
Country
105
Index
Equities
89%
91%
90%
T-Bills
0%
0%
0%
Pakistan KSE-100
Cash
10%
5%
11%
India
Others
1%
4%
-1%
Disclosures Leverage as on July 31st, 2017 Non Performing Assets
Sensex 30 4.10% 22.93
1.19 3.14
DFM General
-4.05% 15.98
4.24
USA
DJIA
0.33% 18.48
2.36
USA
S&P 500
1.16% 21.41
1.97
Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved.
LAKSON OUTLOOK
100 Jun-16
Aug-16
Oct-16
LEF
Dec-16
Feb-17
KSE-100
Apr-17
Jun-17
KSE-30
BSE
Malaysia FTSE KLCI -0.12% 16.77 Dubai Nil Nil
1M P/E Div. Ret. Yield 2.62% 10.65 4.28
INVESTMENT COMMITTEE Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA
Chairman
July 2017
9
Lakson Tactical Fund
(Formerly: Lakson Asset Allocation Global Commodities Fund)
MUFAP’s Recommended Format Investment Objective
FUND FACTS
The investment objective of the Lakson Tactical Fund (Formerly: Lakson Asset Allocation Global Commodities Fund) is to provide long-term capital appreciation by investing in a mix of securities comprising debt, equity and commodities future contracts. Performance Review
SWWF Disclosure
During the month of July 2017 the Lakson Tactical Fund generated an absolute return of -1.01% against the benchmark return of 0.68%. The fund has underformed the benchmark by -0.34% during the month. Allocation was focused between Equities (60%), Placements with Banks & DIFs (17%), Cash (18%) and TFCs/Sukuks (4%). Going forward the fund will look to minimize interest rate risk while maintaining a healthy exposure to equities.
As of July 31st, 2017 the LTF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 3.61 million. If the same were not made the NAV per unit of the LTF would be higher by PKR 0.3167. If the LTF would not have made the SWWF provisions during FY18, the year to date return of the LTF for FY18 would be higher by 0.30%. For details investors are advised to read the latest Financial Statements of the LTF.
Fund Type Category Net Assets (PKR Mil.) NAV (31.07.2017) Pricing Mechanism Trustee Auditor Management Fee
Front End Load Back End Load Launch Date Benchmark*
Total Expense Ratio (TER) 1.97% (This is inclusive of 0.31% representing Government levies and SECP Fees) YTD 0.17% (This is inclusive of 0.03% representing Government levies and SECP Fees) Asset Allocation (% of Total Assets) May-17 Jun-17 Jul-17 Placements
1% 18%
with Banks & DIFs
21%
28%
17%
PIBs
2%
0%
0%
TFC/Sukuks
3%
4%
4%
Equity
44%
54%
60%
Cash
29%
11%
18%
Others
1%
3%
1%
Top 10 Equity Holdings (%age of total assets) Securities
Jul-17 Weight
Lucky Cement Habib Bank United Bank Engro Corp. Oil & Gas Dev. Mari Petroleum Hub Power Co. MCB Bank Ltd. Sui North Gas Nishat Mills Ltd.
3.30% 3.26% 2.99% 2.98% 2.95% 2.76% 2.75% 2.70% 2.51% 2.44%
Leverage as on July 31st, 2017 Non Performing Assets
17%
Asset Allocation
4%
Placement with Banks & DFIs
Nil Nil
LTF -1.01% -1.01% -2.88% -0.70% 2.34% 13.39% 3.18% 34.48% 43.33% 54.05%
Benchmark -0.68% -0.68% -5.00% -3.34% -2.27% 6.92% -1.30% 11.69% 22.74% 34.92%
Jun-17
Jul-17
Const. and Mat.
14.21%
11.01%
FY17 - YTD July-17 2 Months 3 Months 6 Months 12 Months CY17-YTD 3 Years 5 Years Since Inception
Oil & Gas Exp.
12.12%
8.51%
*The benchmark of the Fund was changed in September 2016.
Electricity
5.29%
5.54%
Chemicals*
7.30%
5.26%
Oil & Gas Mar.
8.03%
5.08%
Equity Cash Others
60%
Sectorwise Exposure
LTF vs. Benchmark 125
120
Auto Assemblers & Parts
4.62%
5.01%
Others
11.18%
20.07%
115
110
*Includes fertilizers 105
The returns and the benchmark before April 19, 2016 were computed on the basis of investment objectives and policies before conversion and therefore do not offer a comparison
This is being reported for the Investor information only Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved.
LAKSON OUTLOOK
PERFORMANCE
TFC
The significant change in the performance of the fund is reflective of the change in the Investment objectives and thereby a change in its investment policies on the conversion of the Fund w.e.f April 19, 2016.
Disclosures
Dealing Days Cut-Off Time Asset Manager Rating Risk Profile
Open-End Asset Allocation Fund 1,239 105.6078 Forward Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 10% of the gross earnings of the Scheme, calculated on a daily basis. The fee is subject to a minimum of 1% and maximum of 2% of the average annual net assets of the Scheme. Current - 1.34% 2.50% None October 11, 2011 Weighted average daily return of KSE30 Index, 6M KIBOR and the DBIQ Optimum Yield Diversified Commodity Index Excess Return based on the Scheme's actual proportion in the equity, debt securities and commodities Mon-Fri 4:00 PM AM2+ by PACRA (15.05.2017) Medium Risk
100 Jun-16
Jul-16
Aug-16 Sep-16
Oct-16
Nov-16 Dec-16
Benchmark
Jan-17 Feb-17
Mar-17
Apr-17 May-17
Jun-17
Jul-17
LTF
INVESTMENT COMMITTEE Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA
Chairman
July 2017
10
Lakson ISLAMIC Tactical Fund (Formerly: Lakson Asset Allocation Emerging Markets Fund)
MUFAP’s Recommended Format Investment Objective
FUND FACTS
The investment objective of the Lakson Islamice Tcatical Fund (Formerly: Lakson Asset Allocation Emerging Markets Fund) is to provide long- term capital appreciation by exclusively investing in Shariah Complaint avenues including equities, fixed income instruments and emerging market securities. Performance Review
SWWF Disclosure
During the month of July 2017 the Lakson Islamic Tactical Fund generated return of 0.30% against the benchmark return of 0.62%. The fund has underperformed the benchmark by -0.31% during the month. Fund exposure is in Equities (63%) and Cash (37%). A build up in Shariah compliant equities and fixed income instruments will be targeted, going forward.
As of July 31st, 2017 the LITF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 0.169 million. If the same were not made the NAV per unit of the LAAEMF would be higher by PKR 0.0968. If the LITF would not have made the SWWF provisions during FY18, the year to date return of the LITF for FY18 would be higher by 0.09%. For details investors are advised to read the latest Financial Statements of the LITF.
Fund Type Category Net Assets (PKR Mil.) NAV (31.07.2017) Pricing Mechanism Trustee Auditor Management Fee
Front End Load Back End Load Launch Date Benchmark*
Total Expense Ratio (TER) 2.93% (This is inclusive of 0.44% representing Government levies and SECP Fees) YTD 0.25% (This is inclusive of 0.04% representing Government levies and SECP Fees)
Asset Allocation (% of Total Assets) May-17 Jun-17 Jul-17 37%
Asset Allocation
63%
Top 10 Equity Holdings (%age of total assets) Securities
Equities Cash
Jul-17 Weight
Lucky Cement
3.30%
Habib Bank
3.26%
United Bank
2.99%
Engro Corp.
2.98%
Oil & Gas Dev.
2.95%
Mari Petroleum
2.76%
Hub Power Co.
2.75%
MCB Bank Ltd.
2.70%
Sui North Gas
2.51%
Nishat Mills Ltd.
2.44%
Disclosures Leverage as on July 31st, 2017 Non Performing Assets
Equities
42%
47%
63%
Sukuk
1%
0%
0%
Cash
54%
51%
37%
Others
2%
2%
0%
AM2+ by PACRA (15.05.2017) Medium Risk
PERFORMANCE LITF 0.30% 0.30% -2.55% -1.05% 2.16% 9.03% 2.30% 17.91% 33.79% 42.82%
Jun-17
Jul-17
12.78%
14.21%
Oil & Gas Exp.
7.07%
12.12%
Oil & Gas Mar.
6.07%
8.03%
*The benchmark of the Fund was changed in September 2016.
Chemicals*
5.73%
7.30%
Electricity
3.76%
5.29%
& Parts
4.03%
4.62%
114
Others
8.06%
11.18%
112
Sectorwise Exposure Const. and Mat.
Auto Assemblers
LITF vs. Benchmark 118 116
110
*Includes fertilizers The change in the performance of the fund is reflective of the change in the Investment objectives and thereby a change in its investment policies on the conversion of the Fund from a conventional asset allocation fund to a Shariah Compliant Asset Allocation Fund w.e.f September 21, 2016.
108 106 104 102 100 Jun-16
Jul-16
Aug-16 Sep-16
Oct-16
Nov-16 Dec-16
Benchmark
Nil Nil
Benchmark 0.62% 0.62% -4.19% -2.48% -1.57% 7.35% -0.70% 11.21% 30.91% 45.50%
FY17 - YTD July-17 2 Months 3 Months 6 Months 12 Months CY17-YTD 3 Years 5 Years Since Inception
The returns and the benchmark before September 21, 2016 were computed on the basis of investment objectives and policies before conversion and therefore do not offer a comparison. This is being reported for the Investor information only
Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved.
LAKSON OUTLOOK
Dealing Days Cut-Off Time Asset Manager Rating Risk Profile
Open-End Shariah Compliant Asset Allocation Fund 178 101.8768 Forward Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 10% of the gross earnings of the Scheme, calculated on a daily basis. The fee is subject to a minimum of 1% and maximum of 2% of the average annual net assets of the Scheme. Current 1.36% 2.50% None October 11, 2011 Weighted average daily return of KMI30 Index, 6M deposit rates of three A rated Islamic Banks or Islamic windows of Conventional Banks and MSCI Emerging Markets Islamic Index based on the Scheme's actual proportion in the equity, debt and emerging market securities Mon-Fri 4:00 PM
Jan-17 Feb-17
Mar-17
Apr-17 May-17
Jun-17
Jul-17
LITF
INVESTMENT COMMITTEE Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA
Chairman
July 2017
11
Lakson Asset Allocation Developed Markets Fund MUFAP’s Recommended Format Investment Objective
FUND FACTS
The investment objective of the Lakson Asset Allocation Developed Markets Fund is to provide long-term capital appreciation by investing in a mix of domestic debt and developed markets securities.
Performance Review
SWWF Disclosure
During the month of July 2017 the Lakson Asset Allocation Developed Markets Fund generated an absolute return of 1.18% against the benchmark return of 1.28%. The fund has underperformed the benchmark by -0.10% during the month. Allocation has been taken in T bills (31%), PIBs (18%) and Developed Market Equities (46%). Exposure in equities has been focused on US indices which offer a superior risk/return profile to other Developed Markets.
As of July 31st, 2017 the LAADMF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 0.595 million. If the same were not made the NAV per unit of the LAADMF would be higher by PKR 0.3115. If the LAADMF would not have made the SWWF provisions during FY18, the year to date return of the LAADMF for FY17 would be higher by 0.26%. For details investors are advised to read the latest Financial Statements of the LAADMF.
Fund Type Category Net Assets (PKR Mil.) NAV (31.07.2017) Pricing Mechanism Trustee Auditor Management Fee
Front End Load Back End Load Launch Date Benchmark
Total Expense Ratio (TER) 2.81% (This is inclusive of 0.63% representing Government levies and SECP Fees) YTD 0.24% (This is inclusive of 0.05% representing Government levies and SECP Fees) Asset Allocation (% of Total Assets) May-17 Jun-17 Jul-17
1%4% 4% 31%
Asset Allocation 46%
T-Bill PIBs Equities Others Cash
18%
Developed Markets Equities (Jul-17) QQQ ETF % of Asset Apple Inc 12.09% Microsoft Corp 8.23% Amazon.com Inc 7.02% Facebook Inc 5.91% Alphabet Inc 4.76% Alphabet Inc 4.16% Comcast Corp 2.79% Intel Corp 2.55% Cisco Systems Inc 2.33% Amgen Inc 1.89% QQQ ETF (As of Jul-17) Country
T-Bills
48%
35%
31%
PIBs
18%
19%
18%
Developed Markets (DM) Equities
30%
30%
46%
Others
1%
1%
1%
Cash
3%
16%
4%
Vanguard S&P 500 Apple Inc Microsoft Corp Amazon.com Inc Facebook Inc Johnson & Johnson Exxon Mobil Corp JPMorgan Chase & Co Berkshire Hathaway Inc Alphabet Inc Alphabet Inc
% of Assets 3.60% 2.55% 1.84% 1.71% 1.71% 1.64% 1.56% 1.46% 1.33% 1.30%
Weight
Weight
United States
96.58%
United States
97.28%
China
2.23%
Ireland
1.04%
United Kingdom
0.67%
United Kingdom
0.58%
Isreal
0.26%
Switzerland
0.50%
LAADMF 1.18% 1.18% 1.15% 2.13% 4.90% 8.23% 7.03% 27.9% 54.4% 65.5%
FY17 - YTD July-17 2 Months 3 Months 6 Months 12 Months CY17-YTD 3 Years 5 Years Since Inception
Benchmark 1.28% 1.28% 1.71% 2.69% 5.22% 8.69% 6.47% 18.50% 49.79% 67.50%
*The benchmark of the Fund was changed in September 2016.
LAADMF vs. Benchmark 112
110
106
104
102
100 Jun-16
Jul-16
Aug-16 Sep-16
Oct-16
Nov-16 Dec-16
Benchmark
Jan-17 Feb-17
Mar-17
Apr-17 May-17
Jun-17
Jul-17
LAADMF
INVESTMENT COMMITTEE
Disclosures Nil Nil
Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved.
LAKSON OUTLOOK
PERFORMANCE
108
Vanguard S&P 500 (As of Jul-17) Sector
Leverage as on July 31st, 2017 Non Performing Assets
Dealing Days Cut-Off Time Asset Manager Rating Risk Profile
Open-End Asset Allocation Fund 230 120.3609 Forward Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 15% of the gross earnings of the Scheme, calculated on a daily basis. The fee is subject to a minimum of 1.25% and maximum of 2% of the average annual net assets of the Scheme. Current - 1.54% 2.50% None October 11, 2011 Weighted average daily return of 6M KIBOR and the MSCI World Index based on the Scheme's actual proportion in the debt securities and developed market securities Mon-Fri 4:00 PM AM2+ by PACRA (15.05.2017) Medium Risk
Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA
Chairman
July 2017
12
Powershare QQQ ETF (Developed Markets): Allocations Type QQQ US Equity DES and click on Allocations.
Vanguard S&P 500 ETF (Developed Markets): Allocations Type VUSD LN Equity DES and click on Allocations.
LAKSON OUTLOOK
July 2017
13
FUNDS RETURN HISTORY The periodic returns for the funds have been presented below as per SECP's SCD Circular No. 16 dated July 03, 2014. The returns presented below are: Yearly returns for the last five fiscal years and Absolute returns for every fiscal year since inception The returns have been annualized for money market and income schemes where the performance evaluation is less than one year.
Last 5 fiscal years
FY 2013
FY 2014
FY 2015
FY 2016
FY 2017
LAKSON MONEY M A R K ET FU N D ( L M M F )
FUND
8.76%
7.92%
8.57%
5.63%
6.80%
BM
9.14%
8.50%
8.45%
5.61%
5.28%
LAKSON INCOME FUND (LIF)
FUND
9.21%
8.38%
14.17%
8.57%
6.92%
BM
9.17%
8.31%
12.64%
7.16%
6.00%
LAKSON EQUITY FUND (LEF)
FUND
40.04%
32.12%
23.93%
10.60%
26.40%
BM
52.20%
28.59%
5.67%
0.37%
17.92%
LAKSON ASSET A L L O C AT I O N D E V E L O P E D M A R KET S FU N D ( L A A D M F )
FUND
10.52%
9.64%
7.76%
8.00%
9.01%
BM
13.45%
12.94%
5.34%
2.33%
9.09%
L A K S O N TA C T I C A L F U N D ( LT F ) *
FUND
3.44%
4.24%
8.86%
6.85%
17.23%
BM
7.89%
7.47%
-1.02%
3.18%
9.85%
LAKSON ISLAMIC TA C T I C A L FUND (LITF)**
FUND
5.46%
6.40%
4.96%
4.42%
8.99%
BM
8.50%
10.01%
3.36%
0.05%
8.23%
*Formerly: Lakson Asset Allocation Global Commodities Fund (LAAGCF) **Formerly: Lakson Asset Allocation Emerging Markets Fund (LAAEMF)
Since Inception Absolute Returns
LMMF vs BENCHMARK
LIF vs BENCHMARK
LEF vs BENCHMARK
LAADMF vs BENCHMARK
LT F v s B E N C H M A R K
LITF vs BENCHMARK
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
FY 2015
FY 2016
FY 2017
Fund
6.77%
19.25%
32.63%
44.25%
55.65%
68.98%
78.45%
90.58%
Benchmark
6.66%
19.21%
32.73%
44.86%
57.17%
70.45%
80.01%
89.52%
Fund
7.16%
19.49%
33.35%
45.63%
57.84%
80.20%
95.65%
109.18%
Benchmark
4.59%
15.90%
26.20%
37.77%
49.22%
68.08%
80.12%
90.92%
FUND
-0.66%
19.65%
31.30%
83.87%
142.93%
201.08%
233.00% 320.91%
BM
7.22%
37.82%
52.21%
131.67%
197.90%
214.79%
215.95% 272.55%
FUND
6.42%
17.61%
28.95%
38.96%
50.07%
63.59%
BM
10.63%
25.51%
41.75%
48.15%
51.60%
65.39%
FUND
5.85%
9.49%
14.13%
24.25%
32.76%
55.63%
BM
7.25%
15.71%
24.36%
19.84%
23.65%
35.83%
FUND
6.23%
12.03%
19.20%
25.11%
30.64%
42.39%
BM
9.82%
19.15%
31.08%
33.55%
33.61%
44.61%
Disclaimer: This publication is for informational purpose only and nothing herein should be construed as a solicication, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependent on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results. All returns are calculated assuming reinvested dividends.
LAKSON OUTLOOK
July 2017
14
Mutual Funds Performance Comparison Annualized Returns (%): Positions as of August 01, 2017 IN COM E FUN DS ABL Income Fund Atlas Income Fund Faysal Financial Sector Opportunity Fund Faysal Savings Growth Fund First Habib Income Fund HBL Income Fund JS Income Fund Lakson Income Fund MCB DCF Income Fund NAFA Financial Sector Income Fund NAFA Income Fund NAFA Income Opportunity Fund NAFA Savings Plus Fund NIT - Income Fund Pakistan Income Fund UBL Government Securities Fund UBL Income Opportunity Fund
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
4.79 5.33 4.53 4.96 5.22 5.02 6.02 5.67 5.43 5.77 5.61 5.52 5.23 5.43 5.22 3.35 4.66
5.46 5.65 4.83 5.36 5.01 5.23 6.63 9.72 5.67 5.90 5.60 5.45 5.50 5.02 6.01 4.86 4.03
5.31 5.57 4.89 5.47 5.05 4.99 5.83 7.77 5.30 6.06 5.64 5.13 5.37 5.12 5.25 4.80 4.37
6.13 5.60 6.47 6.74 6.82 5.16 6.23 7.39 7.18 8.94 5.98 5.77 8.87 5.72 7.67 4.78 4.40
5.66 5.28 4.91 5.68 6.63 4.66 6.22 6.91 6.53 8.35 6.27 5.7 8.08 5.45 6.9 4.45 4.21
3.54 (4.21) 2.98 3.72 4.26 4.36 (4.64) 2.75 (7.10) 4.22 4.38 4.70
4.33 4.01 4.50 3.87 5.78 3.97 4.85 3.55 2.72 5.35 5.06 4.46
4.63 2.61 4.89 4.25 5.22 4.20 2.28 4.17 1.32 5.05 4.84 4.59
5.40 3.71 5.28 5.45 5.58 4.42 1.67 4.74 4.54 5.15 5.80 5.31
5.42 4.63 5.14 5.22 5.83 4.79 2.78 4.78 5.29 5.26 5.77 5.38
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
5.30 5.18 4.27 5.35 3.86 5.49 4.57 4.42 5.75 5.45 5.43 4.98 5.40 5.33 5.27 5.58 5.07 4.78 4.08 5.38 5.36
9.42 5.85 5.32 4.39 5.66 5.86 22.25 5.32 6.61 5.30 6.42 5.05 6.64 6.42 5.04 6.53 5.05 8.19 4.20 5.43 0.11
7.14 5.06 4.95 4.57 5.24 5.54 13.65 4.58 5.74 5.30 5.64 5.02 5.98 5.88 5.03 6.02 5.00 6.74 4.40 5.27 4.56
9.58 6.93 7.22 5.55 9.50 6.38 10.80 4.90 7.61 6.95 7.10 5.78 7.24 7.71 8.33 6.63 4.91 9.26 6.34 6.62 5.53
8.62 6.33 6.63 5.46 8.39 6.13 9.37 4.62 7.07 6.56 6.5 5.68 6.8 7.1 7.62 6.53 4.96 8.31 6.01 6.25 5.35
4.10 3.97 4.02
3.95 3.70 4.29
4.25 3.75 4.25
4.55 4.09 6.43
4.7 4.17 5.99
ISLAMIC INCOME FUNDS ABL Islamic Income Fund Al Ameen Islamic Sovereign Fund Alfalah GHP Islamic Income Fund Askari Islamic Income Fund Atlas Islamic Income Fund Faysal Islamic Savings Growth Fund JS Islamic Government Securities Fund Meezan Islamic Income Fund Meezan Sovereign Fund NAFA Islamic Income Fund NAFA Riba Free Savings Fund Pak Oman Advantage Islamic Income Fund MONEY MARKET FUNDS ABL Cash Fund AKD Cash Fund Alfalah GHP Cash Fund Alfalah GHP Money Market Fund Askari Sovereign Cash Fund Atlas Money Market Fund Atlas Sovereign Liquid Fund BMA Empress Cash Fund Faysal Money Market Fund First Habib Cash Fund HBL Money Market Fund JS Cash Fund Lakson Money Market Fund MCB Cash Management Optimizer NAFA Government Securities Liquid Fund NAFA Money Market Fund NIT Government Treasury Fund Pakistan Cash Management Fund PIML Daily Reserve Fund UBL Liquidity Plus Fund UBL Money Market Fund ISLAMIC MONEY MARKET FUNDS Al Ameen Islamic Cash Fund HBL Islamic Money Market Fund Meezan Cash Fund Note: NA - Not Available. Source: MUFAP.
LAKSON OUTLOOK
July 2017
15
Mutual Funds Performance Comparison Annualized Returns (%): Positions as of August 01, 2017 AGG RESSI VE IN CO ME FU NDS
30 DAYS
90 DAYS
180 DAYS
2 70 DAYS
365 DAYS
AKD Aggressive Income Fund Alfalah GHP Income Multiplier Fund Askari High Yield Scheme BMA Chundrigar Road Savings Fund Faysal Income & Growth Fund Pakistan Income Enhancement Fund UBL Growth & Income Fund
5.11 5.08 4.59 4.26 5.45 5.99 5.21
5.07 5.64 5.02 5.28 5.72 5.73 6.87
5.43 5.61 5.53 5.77 5.47 5.58 5.49
5.93 6.09 5.45 5.59 5.31 6.02 5.70
6.07 5.71 5.14 5.23 4.03 5.07 4.55
1.28
3.88
3.90
4.10
4.38
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
(2.05) (0.06) (2.19) (2.30) (2.15) (0.83) (2.17) (3.34) 5.23 (2.34) (2.33) 0.76 0.41 (0.07) (2.10) (2.11) (1.22) (0.96) (2.78) (2.89)
(5.58) (7.67) (4.49) (4.63) (6.91) (2.73) (10.26) (8.39) 0.17 (4.04) (5.33) (3.30) 0.29 (3.98) (5.44) (5.63) (3.54) (4.97) (8.86) (5.82)
(4.89) (11.25) (4.49) (4.78) (10.21) (4.06) (12.84) (10.60) (0.45) (5.06) (5.22) (4.95) 0.42 (5.28) (4.19) (6.85) (3.73) (3.89) (11.09) (3.60)
13.71 4.27 13.07 12.83 4.91 15.76 3.26 6.85 18.18 13.37 10.69 19.26 23.53 13.28 11.22 11.74 13.03 13.47 7.39 20.70
22.99 28.42 19.82 19.6 6.92 24.33 8.19 11.15 31.76 17.09 13.24 33.98 35.79 21.8 17.08 19.4 24.18 28.22 13.43 19.81
(0.75) (1.16) (1.61) (0.80) (0.94) (0.13) (1.75) (3.44)
(4.67) (5.15) (6.98) (3.27) (4.18) (2.54) (7.41) (9.46)
(3.82) (4.26) (7.06) (3.28) (5.28) (1.09) (7.50) (11.64)
16.76 14.84 10.43 15.85 12.68 17.42 9.42 5.02
22.12 16.96 12.89 19.97 16.51 32.88 12.21 7.6
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
(0.53) (1.25) (0.16) (1.30) (0.01)
(5.53) (3.38) (1.64) (3.10) (0.86)
(4.68) (2.53) (0.35) (2.89) 0.07
7.44 10.75 12.88 12.76 14.53
9.29 11.79 22.02 19.05 20.46
(1.06)
(4.25)
(4.10)
7.34
8.7
ISLAMIC AGGR ESSI VE INC OM E FUN DS Al Ameen Islamic Aggressive Income Fund
EQUITY FUNDS ABL Stock Fund AKD Opportunity Fund Alfalah GHP Alpha Fund Alfalah GHP Stock Fund Askari Equity Fund Atlas Stock Market Fund First Capital Mutual Fund First Habib Stock Fund HBL Energy Fund HBL Equity Fund HBL Stock Fund JS Growth Fund JS Large Cap Fund JS Value Fund Lakson Equity Fund MCB Pakistan Stock Market Fund NAFA Stock Fund National Investment Unit Trust PIML Value Equity Fund UBL Stock Advantage Fund ISLAMIC EQUITY FUNDS ABL Islamic Stock Fund Al Ameen Islamic Dedicated Equity Fund Al Meezan Mutual Fund Alfalah GHP Islamic Stock Fund HBL Islamic Equity Fund JS Islamic Fund Meezan Islamic Fund PIML Islamic Equity Fund BALANCED FUNDS Faysal Balanced Growth Fund HBL Multi Asset Fund NAFA Multi Asset Fund Pakistan Capital Market Fund Unit Trust of Pakistan ISLAMIC BALANCED FUNDS Meezan Balanced Fund
Note: NA - Not Available. Source: MUFAP.
LAKSON OUTLOOK
July 2017
16
Mutual Funds Performance Comparison Annualized Returns (%): Positions as of August 01, 2017 ASSET A LLO CATIO N FUN DS Alfalah GHP Value Fund Askari Asset Allocation Fund Faysal Asset Allocation Fund Lakson Asset Allocation Developed Markets Fund Lakson Tactical Fund MCB Pakistan Asset Allocation Fund MCB Pakistan Frequent Payout Fund NAFA Asset Allocation Fund Pak Oman Advantage Asset Allocation Fund UBL Asset Allocation Fund
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
(2.11) (1.45) (1.16) 1.18 (1.01) (0.28) 0.02 (0.91) (2.91) (0.58)
(3.95) (5.03) (12.08) 1.88 0.00 (0.93) 0.90 (1.72) (6.96) (0.94)
(4.14) (7.60) (12.89) 4.75 1.76 (3.64) 1.23 (0.05) (9.48) 0.62
10.12 4.22 2.38 8.72 9.71 2.18 3.56 12.61 4.60 8.97
17.31 4.85 0.04 8.23 13.39 5.46 5.11 22.36 8.27 10.73
0.17 (1.61) 0.30 (1.06) (0.18) (2.67)
(0.47) (4.63) (0.34) (7.04) (2.40) (8.34)
0.52 (6.47) 1.74 (6.28) (1.47) (11.11)
9.53 5.76 7.80 10.10 10.20 3.88
11.26 6.33 9.03 8.7 14.47 6.84
30 DAYS
90 DAYS
180 DAYS
270 DAYS
365 DAYS
0.31 (0.21)
0.58 0.19
1.59 1.30
4.02 N/A
6.26 N/A
0.63 0.16
0.70 0.33
3.62 1.47
13.62 12.82
17.13 20.17
ISLAMIC ASSET ALLOCATIO N FU ND S Al Ameen Islamic Asset Allocation Fund Askari Islamic Asset Allocation Fund Lakson Islamic Tactical Fund Meezan Asset Allocation Fund NAFA Islamic Asset Allocation Fund Pak Oman Islamic Asset Allocation Fund CAPITAL PROTECTED FUNDS JS Capital Protected Fund V UBL Capital Protected Fund III ISLAMIC CAPITAL PROTECTED FUNDS NAFA Islamic Principal Protected Fund I NAFA Islamic Principal Protected Fund II
Note: NA - Not Available. Source: MUFAP.
LAKSON OUTLOOK
July 2017
17
Markets Information Equities TOTAL RETURN IN PKR AND %
TOTAL RETURN IN USD AND %
MA RKETS
IND EX
YT D
3M
1Y
5Y
YT D
3M
1Y
World
MSCI All Country World Index
13.2%
4.9%
14.8%
66.7%
13.2%
4.9%
14.8%
51.1%
Developed
MSCI World Index
12.0%
4.4%
13.9%
73.0%
12.0%
4.4%
13.9%
56.8%
Emerging
MSCI Emerging Markets Index
23.7%
9.0%
22.1%
23.5%
23.7%
9.0%
22.1%
11.9%
Europe
MSCI Europe Index
16.4%
5.7%
16.5%
49.1%
16.4%
5.7%
16.5%
35.1%
China
CSI 300
12.9%
8.7%
16.7%
76.8%
12.9%
8.7%
16.7%
60.2%
Dubai
DFM
0.0%
0.0%
0.0%
262.1%
0.0%
0.0%
0.0%
228.2%
India
BSE Sensex 30
22.1%
8.7%
15.9%
108.1%
22.1%
8.7%
15.9%
88.6%
Japan
Nikkei 225
4.2%
3.8%
20.3%
152.8%
4.2%
3.8%
20.3%
129.2%
Malaysia
FTSE Bursa
7.2%
-0.5%
6.5%
19.0%
7.2%
-0.5%
6.5%
7.9%
Pakistan
KSE 100
-3.8%
-6.7%
16.4%
215.6%
-3.8%
-6.7%
16.4%
186.1%
Sri Lanka
Colombo All Share
6.6%
0.4%
3.8%
47.6%
6.6%
0.4%
3.8%
33.8%
UK
FTSE 100
3.2%
2.3%
9.6%
44.3%
3.2%
2.3%
9.6%
30.8%
US
DJIA
10.8%
4.5%
18.8%
85.7%
10.8%
4.5%
18.8%
68.3%
US
S&P 500
10.3%
3.6%
13.7%
97.6%
10.3%
3.6%
13.7%
79.1%
US
NASDAQ 100
20.9%
5.3%
24.3%
145.5%
20.9%
5.3%
24.3%
122.5%
Germany
DAX Index
5.5%
-2.6%
17.2%
97.4%
5.5%
-2.6%
17.2%
78.9%
CANADA
TSX 300 Composite Index
-0.9%
-2.8%
3.8%
43.2%
-0.9%
-2.8%
3.8%
29.8%
France
CAC - 40
4.8%
-3.3%
14.7%
70.7%
4.8%
-3.3%
14.7%
54.7%
Brazil
Sao Paulo SE Bovespa Index
9.5%
0.8%
15.0%
29.6%
9.5%
0.8%
15.0%
17.5%
Korea
Korea SE Kospi
18.6%
8.9%
19.2%
40.8%
18.6%
8.9%
19.2%
27.7%
Taiwan
Taiwan SE Weighted Index
12.7%
5.6%
16.1%
58.2%
12.7%
5.6%
16.1%
43.4%
Automobile and Parts
7.3%
-13.4%
123.9% 1128.1%
7.3%
-13.4%
123.9%
1013.2%
Banks
-9.7%
-7.0%
10.3%
95.1%
-9.7%
-7.0%
10.3%
76.9%
Chemicals
14.7%
-0.9%
-54.2%
-9.9%
14.7%
-0.9%
-54.2%
-18.4%
Construction and Materials
-18.9%
-21.2%
-5.5%
439.5%
-18.9%
-21.2%
-5.5%
389.0%
Electricity
41.6%
46.5%
39.0%
311.6%
41.6%
46.5%
39.0%
273.1%
Food Producers
3.8%
7.7%
13.9%
85.6%
3.8%
7.7%
13.9%
68.2%
Oil and Gas
1.1%
3.3%
23.3%
44.7%
1.1%
3.3%
23.3%
31.1%
Personal Goods
-6.5%
-2.0%
-6.5%
128.6%
-6.5%
-2.0%
-6.5%
107.2%
-30%
-5%
20%
45%
70%
5Y
KSE SECTORS
YTD 3-mo
Fixed Income CURRENT INTERBANK RATES
HISTORIC 6M INTERBANK RATES
1M
3M
6M
12 M
Y TD
3M
1Y
5Y
Govt. Securities vs. KIBOR 8.00%
MONEY MARKET
7.75% 7.50%
China
SHIBOR
3.89%
4.26%
4.35%
4.39%
NA
4.43%
3.70%
3.40%
Dubai
UAE IBOR
1.32%
1.53%
1.75%
2.13%
NA
1.72%
1.64%
1.41%
India
MIBOR
7.68%
7.80%
NA
NA
NA
NA
NA
NA
7.00% 6.75%
Japan
TIBOR
0.03%
0.06%
0.11%
0.13%
0.11%
0.11%
0.11%
0.15%
6.50%
Malaysia
KLIBOR
3.18%
3.43%
3.55%
3.63%
3.54%
3.54%
3.53%
3.68%
Pakistan
KIBOR
6.28%
6.14%
6.15%
6.46%
6.14%
6.15%
6.11%
6.28%
Sri Lanka
SLIBOR
10.26%
11.13%
12.00%
12.38%
11.78%
11.99%
11.65%
10.13%
5.50%
UK
LIBOR
0.25%
0.29%
0.42%
0.63%
0.48%
0.44%
0.51%
0.62%
US
SIBOR
1.23%
1.31%
1.46%
1.73%
1.41%
1.44%
1.34%
1.06%
5.25% 5.00%
Interbank Jul 17
7.25%
6.25% 6.00% 5.75%
1W CURRENT MARKET YIELDS
GOVERNMENT SECURITIES
HISTORIC 12M PAPER RATES
1M
3M
6M
1Y
2Y
12M Yields of Government Securities
3M
12 M
5Y
10 Y
Y TD
3M
1Y
2Y
China
2.63%
3.38%
3.61%
3.63%
3.15%
3.47%
2.77%
2.58%
India
India
8.31%
6.24%
NA
6.47%
6.28%
6.38%
6.35%
6.74%
Japan
Japan
-0.13%
-0.12%
-0.06%
0.08%
-0.22%
-0.12%
-0.26%
-0.22%
Malaysia
3.07%
3.13%
3.69%
3.99%
3.15%
3.14%
2.98%
2.92%
Pakistan
5.89%
5.96%
7.23%
8.22%
5.94%
5.96%
5.91%
6.08%
Pakistan
Sri Lanka
11.13%
12.38%
NA
NA
12.26%
12.46%
12.14%
10.57%
Sri Lanka
UK
0.19%
0.30%
0.59%
1.23%
0.13%
0.20%
0.13%
0.27%
UK
US
1.07%
1.21%
1.84%
2.29%
1.02%
1.17%
0.87%
0.68%
China
Malaysia
US 0%
LAKSON OUTLOOK
Govt. Sec. Jul 17
3%
6%
9%
12%
July 2017
18
Markets Information Commodities CURRENT PRICE
TOTAL RETURN
COMMODITY
UN IT
YT D
3M
1Y
5Y
DB Commodity Index
USD Excess Return
-5.1%
1.1%
5.2%
-42.0%
312.4
S&P Global Commodity Index
USD Total Return
-6.1%
1.0%
5.2%
-52.9%
2269.3
Dow Jones UBS Commodity Index
USD Total Return
-3.1%
0.7%
0.8%
-40.9%
171.4
Coal
USD/Tonne
5.4%
11.5%
52.4%
N.A
93.2
Copper
USc/lbs
15.4%
11.4%
30.2%
-15.4%
289.2
Cotton
USc/lbs
-0.2%
-12.1%
-4.9%
-0.1%
70.5
Gold
USD/t oz.
10.0%
-0.1%
-6.1%
-21.4%
1266.6
Palm Oil
USD/Tonne
-13.0%
0.6%
6.3%
-34.1%
624.1
Sugar
USc/lbs
-23.6%
-7.0%
-21.7%
-34.1%
14.9
Wheat
USD/Bushel (60Ibs)
16.3%
13.4%
16.4%
-46.6%
4.7
WTI
USD/bbl
-6.6%
1.7%
20.6%
-43.0%
50.2
Brent Crude
USD/bbl
-7.3%
1.8%
24.0%
-49.8%
52.7
Heating Oil
USd/Gallon
-3.1%
9.8%
29.5%
N.A
165.2
RBOB Gasoline
USD/Gallon
Natural Gas
USD/MMBTU
Silver
USD/t Ozs
2.4%
10.2%
29.1%
-41.5%
1.7
-25.0%
-14.7%
-2.9%
-12.9%
2.8
5.0%
-2.4%
-17.5%
-39.9%
16.8
140
DBCI
SPGSCI
DJUBS
130 120 110 100 90 80 Jul-16
Sep-16
Nov-16
Jan-17
Mar-17
May-17
Jul-17
Currencies CURRENT EXCHANGE RATES
TOTAL RETURN
Y TD
3M
1Y
5Y
190
Canadian Dollar
CAD
4.25%
5.41%
-0.18%
-14.22%
CAD - PKR
80.90
Euro
EUR
9.17%
4.88%
2.98%
2.98%
EUR - PKR
119.80
Indian Rupee
INR
4.63%
-0.72%
-8.11%
-22.97%
INR - PKR
0.93
Japanese Yen
JPY
4.63%
-0.72%
-8.11%
-22.97%
JPY - PKR
0.93
Pound Sterling
GBP
6.09%
0.65%
-2.03%
-7.91%
GBP - PKR
136.61
Singaporian Dollar
SGD
5.68%
1.55%
-2.05%
0.22%
SGD - PKR
76.17
US Dollar
USD
0.44%
0.07%
0.08%
10.70%
USD - PKR
104.83
EUR
CAD
USD
150 130 110 90 70 Jul-16
LAKSON OUTLOOK
GBP
170
Oct-16
Jan-17
Apr-17
July 2017
Jul-17
19
LAKSON OUTLOOK
July 2017
TRAN SAC T IO N L O C AT I ONS Islamabad Mr. Ali Kazmi - Branch Manager Office No.6, Mezzanine floor, Kashmir Plaza, Jinnah Avenue, Blue Area, Islamabad. UAN: 051.111-111-717 Fax: 051.2870228 Lahore Mr. Haider Abbas 14 Ali Block, 1st Floor New Garden Town, Lahore. Tel: 042.591.1025/26 Faisalabad Mr. Shahbaz Choudhry - Branch Manager 1 st Floor, FM Plaza 15-D, Peoples Colony, Faisalabad Tel: 041.324.1704/07 Fax: 041.855.4453
This information has been prepared by Lakson Investments for your general information and private use only. It does not constitute investment advice and is not intended to be an offer to buy or sell or a solicitation of an offer to buy or sell any securities mentioned. It should not be considered as an incentive to invest. The securities described in this document may not be eligible for sale or subscription in all jurisdictions or to certain categories of investors. This document is not intended for distribution to a person or within a jurisdiction where such distribution would be restricted or illegal. This document may not be conveyed to or used by a third party without our express consent. Any other use is not authorized. The information contained herein has been obtained from sources believed to be reliable and no member of Lakson Investments makes any warranty, expressed or implied, as to the accuracy or completeness of the information. All the information included in this presentation is current when this document is prepared and subject to changes at any time. Any forecast or projection or forward looking statement made in this document is not necessarily indicative of future or likely performance, future events or future financial performance of securities, countries, markets or companies. Such statements are only predictions and actual events or results may differ. Lakson Investments may from time to time provide services to the companies and their affiliates mentioned herein. Employees of Lakson Investments or ersons/entities connected to them may from time to time have position in or are holding any of the securities mentioned in this document. No consideration have been given to and no investigation was made of your investment objectives, financial situation or particulars, and accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of you acting on such information or opinion or estimate. Lakson Investments expressly disclaims any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on this information in this document. Disclaimer: All investments in mutual funds are subject to market risks. The NAV of Units may go up or down based on market conditions. Past performance is not necessarily indicative of the future results. The investors are advised in their own interest to carefully read the Offering Document in particular the investment policy in Clause 2.2 and risk disclosure and warning statements contained in Clause 2.11 and Part 11 respectively in this Offering Document.
Sialkot Mr. Nisar Bhatti - Branch Manager 1 st Floor, Karim Plaza Iqbal Town, Defence Road, Sialkot Tel: 052.324.1704/07 Fax: 052.324.1703
Decades of Seasoned Investment:
since 1954
Century Insurance
ANIMATIONS LaksonICE Business Solution
Century Paper Merit Packaging & Board Mills Limited
Accuray Surgicals
