lakson outlook march 20173

LAKSON GROUP ONLINE www.li.com.pk [email protected] TELEPHONE + 92 21 3569 8000 UAN: +92 21 111 Lakson F: +92 21 3568 165...

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LAKSON GROUP

ONLINE www.li.com.pk [email protected]

TELEPHONE + 92 21 3569 8000 UAN: +92 21 111 Lakson F: +92 21 3568 1653

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 during Mar'17 clocked in at 4.9% Year-on-Year, compared to 4.2% in Feb'17. On a month-on-month basis, CPI was up by 0.8% as compared to an increase of 0.10% during Mar'16. Perishable food items (+12.5% MoM), transport (+0.54% MoM) and communication (+0.84% MoM) caused the uptick on a MoM basis. Core Inflation stood at 5.3% in Mar'17, same as Feb'17. Inflationary expectation is on the rise, as we have seen an uptick in POL product prices during the past month. Other macro indicators have improved, where Large-scale manufacturing (LSM) increased by 3.5%YoY in Jan'17, major contributors were Iron and Steel (17.46%) and Electronics (13.49%). Private sector credit off-take continues to accelerate (up 13.3%YoY in Feb'17 vs. 7.7% in Feb'16) with impetus from Construction (+24%YoY), Apparel and Garments (+20%YoY) and Food (+16%YoY) sectors.

Yield Curve 11.5% 10.5% 9.5% 8.5% 7.5% 6.5% 5.5% 1W

2M

2Y

5Y

28-Feb-17

Foreign direct investment continued to inch up and recorded a growth of 6% YoY to USD 1,285mn. During the month of Feb'17, FDI flows stood at USD 122.9mn, 52% higher compared to USD 80.8mn in Jan'17. The current account deficit for Feb'17 clocked in at USD 800mn, taking the cumulative 8M FY17 deficit to USD5.47bn compared to USD2.48bn during the same period last year, up by 121% YoY. As exports remained flat in 8M FY17, imports rose by 11% resulting in 27% hike in trade deficit while lower CSF inflows this year increased the services deficit by 10%. Remittances were also down by 2% YoY and stood at USD 12.36bn in 8M FY17.

6M

8Y

15Y

31-Mar-17

USD/PKR vs. Forex Reserves

Forex Res. (USD bn.) - RHS

106.0

23.0 22.5 22.0 21.5 21.0

USD/PKR

Fixed Income Review 105.0

SBP kept the policy/discount Rate unchanged at 5.75%/6.25% in the Mar'17 MPS, backed by recent pick-up in inflation (9MFY17 CPI: 4.0%YoY) and cautious view on external account. GoP borrowed PkR28.6bn through PIBs in Mar'17, against target of PKR 50bn, concentrated majorly in 3yr tenor (PKR 26.29bn). Yield on PIBs remained flat across the board for 3yr/5yr/10yr PIBs at 6.40%/6.89%/7.94%. Meanwhile, GoP raised PKR 434bn through T-Bills in Mar'17 against target of PkR450bn. Cut off yields of 3M/6M T-Bills inched up by 4bps/2bps to 5.99%/6.01% during the month under review.

20.5 20.0 104.0

19.5 19.0 18.5 18.0

103.0 1-Mar

8-Mar

15-Mar

22-Mar

29-Mar

Equities Review The month of March'17 persisted on dull note as the KSE 30 index declined by almost 2% while average daily volumes clocked in at 246mn shares posting a contraction of 30% M/M. The main stories at the bourse were 1) the uncertainty surrounding the much hyped Panama case, which kept a lid on proceedings, 2) tightening of the regulatory noose around movement of funds, declaration of wealth and scrutiny of stock brokerage firms and 3) conclusion of a broadly uneventful earnings season as most companies reported flattish results whereby an unexpected absence in payouts from key names dampened sentiment. Foreign participants remained on the sidelines with a net sell of USD 20mn despite the key MSCI-EM upgrade being just around the corner. The top gainers during the month were SNGP (up 19.41%) which rallied on account of expansion in its pipeline network, followed by CSAP as it gathered 18.41% on the back of a strong order book. The losers list was topped by AKBL as it shed 15.45% on account of post result profit taking, while KEL followed next as it pared 14.17% of its value on a lower multi-year tariff being provided for by NEPRA.

Market Rates 6.25%

6.00%

5.75% 1-Mar

10-Mar

6M KIBOR

19-Mar O/N Repo Rate

28-Mar 6M T-Bill

SBP kept the policy/discount rate unchanged at 5.75% / 6.25%.

5

Economic & Markets Review INTERNATIONAL Developed Markets Most Developed equity markets performed well in March, with the MSCI EAFE Index (Europe, Australia, and Far East) up 2.28% in the month, leading to a growth of 6% for the first quarter of 2017. Prominent markets that rallied included France (CAC: +5.4%), Germany (DAX: +4.0%), Spain (IBEX: 9.5%) and Italy (FTSEMIB: +8.4%). UK's equities ended the month flat as their Prime Minister invoked Article 50 thereby initiating the process of exiting the EU. Unlike EAFE, however, US markets were little changed in March, with the S&P 500 down by only 0.04%. US equity markets were up in the first part of the month, but the failure of the American Health Care Act led equities to pare gains because it made investors doubt the US administration's ability to follow through on other policy matters, like tax reforms and infrastructure spending. Going forward, we expect US equities to perform better because the economy is doing extremely well, with the Q4 GDP growth having been revised up to 2.1% in March. After declining in the month of February, yields were mostly up in March across most developed countries, including Italy (5-yr sovereign bond yield up 28bps), Switzerland (+16bps) and Germany (+19bps). Emerging markets Like January and February, Emerging market equities rose in the last month of the quarter too, with the MSCI EM index up 2.35% MoM in March, leading to a return of 11.1% for the quarter. The rally in Indian equities continued well into March, as the BSE Sensex Index returned 11.2% in the first quarter of 2017. The rally was sustained by strong fund inflows, especially by foreign institutional investors, as their confidence in India's economic growth strengthened. Indian equity market in fact saw the biggest monthly foreign portfolio investment in March, of USD 5.23bn, since local authorities started maintaining data in 2002. Mexico (+3.6%) and South Korea (+3.3%) also contributed towards propelling the MSCI EM Index in March.

Performance of Equities and Commodities 140%

MSCI World Index MSCI EM Index DB Commodity Index

120%

100%

80%

60% Mar-16

Jun-16

Sep-16

Dec-16

Mar-17

Valuation of International Markets 24 20 16 12 8 4 -

DM

US

UK

Japan Canada EM

Brazil Russia India China

P/E Multiple

The Russian MICEX Index, on the other hand, slipped by 2% in March, and ended the quarter with losses of 10.6%. Tumbling oil prices and sanctions weighed on the country's equity market, while local anti-corruption protests worsened sentiment. On the fixed income front, yields declined across most of the emerging countries. 5year sovereign bond yields declined by 22bps in Mexico, 24bps in Brazil, 45bps in Russia and by 7bps in India. Dip in yields was partially attributable to fall in international crude oil prices and their implication for inflation. Commodities Market Review International crude oil prices trended downwards during the month with both Arab Light and WTI crude oil prices falling below the levels of USD50/bbl intra-month. The decline in prices was triggered by US crude oil inventory data released in the beginning of March, which showed that inventory surged by 8.2m barrels against expectation of 1.3m bbls. However, crude oil prices recovered slightly due to lower buildup in US crude oil inventory. Moreover, oil prices were buoyed by signals from OPEC members, especially Kuwait, that they are considering extending the OPEC oil output cut beyond June 2017, despite the rising threat of USA capturing market share. Greater US capital expenditure on exploration and production activities continued with the number of rig counts at standing at 824, as opposed to a rig count of 754 in February. Arab Light and Brent crude oil prices both dipped by around 6%, while WTI prices declined by 7%. For the remainder of the fiscal year 2017 oil prices are expected to be range-bound, with higher US production countering lower production by OPEC members. Possible catalysts for oil prices include the OPEC meeting scheduled for May, clashes in Libya and any further deterioration in the Middle East security outlook. Like oil prices, Middle Eastern Urea prices, which usually track international crude oil prices, declined during March. Prices dipped to a level of USD 212/MT, from a CY17 high of USD 280/MT, reached at the end of January. Similarly, most of the petrochemical chain declined during the month in reaction to crude oil prices. South East Asian PTA prices were down by 3.6%, while Paraxylene prices in the same region were down by 7.8%. Ethylene prices too declined by 15%; however, in the past year they have moved independently of crude oil prices. Moreover, for the first time since June 2016, Cold Rolled Coil prices (mainland China) declined on a MoM basis in March. Furthermore, hot rolled coil prices dipped by 9.5% in March, while UK export scrap prices declined by 4%.

US markets were little changed in March, with the S&P 500 down by only 0.04%.

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 5.09% against the benchmark return of 5.28% in March 2017. During FY17TD the Fund has returned 6.73% to unit holders against the benchmark of 5.20% and outperformed by 1.53%. Asset allocation changed with cash deposits at 100% and T bill exposure at 0%. As a result portfolio WAM was calculated at 1 day. Going forward the Fund will focus on increasing exposure to attractive Cash and Term deposits in order to generate returns and mitigate interest rate risk.

As of March 31st, 2017 the LMMF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 7.44 million. If the same were not made the NAV per unit of the LMMF would be higher by PKR 0.1628. If the LMMF would not have made the SWWF provisions during FY17, the year to date annualized return of the LMMF for FY17 would be higher by 0.15%. 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 (31.03.2017) Pricing Mechanism Trustee Auditor Management Fee

Front End Load Back End Load Launch Date Benchmark*

Dealing Days Cut-Off Time Fund Rating Risk Profile Asset Manager Rating

Open-End Money Market Fund 4,804 105.1993 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 - 0.60% None None November 13, 2009 70% average 3 months PKRV rates + 30% average 3 months deposit rate of three AA rated banks Mon-Fri 4:00 PM 'AA' by PACRA (31.12.2015) Low Risk AM2 by PACRA (08.06.2016)

1.00% (This is inclusive of 0.27% representing Government levies and SECP Fees) YTD 0.75% (This is inclusive of 0.20% representing Government levies and SECP Fees) 1%

Asset Allocation

10%

Credit Split

Cash Others

AAA AA

90%

100%

Asset Allocation Instruments (% of total Assets) Instruments Placements with Banks & DFIs PIBs T Bills Cash Others including receivables * Weighted Average Maturity Non Compliant Investments Name on investment Type of instrument Value of investment before provisioning

Jan-17 10% 0% 79% 12% 0%

Feb-17 0% 0% 91% 9% -1%

Mar-17 0% 0% 0% 101% -1%

WAM* days 0 0 0 1

Morningstar FY17 - YTD March-17 2 Months 3 Months 6 Months 12 Months CY17 - YTD

LMMF 6.78% 5.21% 5.17% 9.55% 7.44% 6.45% 9.55%

Benchmark 5.23% 5.41% 5.43% 5.36% 5.35% 5.25% 5.36%

Simple Annualized FY17 - YTD March-17 2 Months 3 Months 6 Months 12 Months CY17 - YTD 3 Years 5 Years Since Inception

LMMF 6.73% 5.09% 5.06% 9.22% 7.31% 6.46% 9.22% 7.59% 8.61% 11.85%

Benchmark 5.20% 5.28% 5.31% 5.26% 5.28% 5.25% 5.26% 6.90% 8.33% 11.79%

*The benchmark of the Fund was changed in February 2014 and September 2016.

LMMF vs. Benchmark Disclosures Leverage as on March 31st, 2017 Non Performing Assets WAM of Portfolio

Nil Nil 1 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

PERFORMANCE

118 117 116 115 114 113 112 111 110 109 108 107 106 105 104 103 102 101 100 Jun-14

Nov-14

Apr-15 Benchmark

Sep-15

Feb-16

Jul-16

Dec-16

LMMF

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

March 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 March 2017, LIF generated an annualized return of 5.03% against the benchmark return of 6.13%. Over FY17TD the LIF has generated a return of 5.84% . Asset allocation changed with placements at 19%, cash exposure increase to 49% while corporate debt at 10% and MTS at 17%. This translated the portfolio WAM to 261 days. Going forward the Fund will concentrate on building exposure to high quality corporate debt and bank deposits placements.

As of March 31st, 2017 the LIF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 7.40 million. If the same were not made the NAV per unit of the LIF would be higher by PKR 0.1986. If the LIF would not have made the SWWF provisions during FY17, the year to date annualized return of the LIF for FY17 would be higher by 0.19%. 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 (31.03.2017) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark* Dealing Days Cut-Off Time Fund Rating Risk Profile Asset Manager Rating

Open-End Income Fund 3,936 105.5751 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 1.50% 1.50% None November 13, 2009 Average daily rate of 6M KIBOR (Ask) Mon-Fri 4:00 PM 'A+' by PACRA (31.12.2015) Medium Risk AM2 by PACRA (8.06.2016)

PERFORMANCE Total Expense Ratio (TER) 2.14% (This is inclusive of 0.43% representing Government levies and SECP Fees) YTD 1.61% (This is inclusive of 0.33% representing Government levies and SECP Fees)

19%

49%

Asset Allocation

4% 1% 7% 3%

17%

5%

Placements with Banks & DFIs PIB T-Bills TFC Sukuk MTS Cash

1% 2% 1%

17%

Credit Split

48%

25%

Gov Sec AAA AA+ AA AAA Unrated

Asset Allocation Instruments (% of total Assets) Instruments Placements with Banks & DFIs PIBs T Bills TFCs Sukuks MTS Cash Others including receivables * Weighted Average Maturity

Jan-17 22% 4% 1% 8% 4% 16% 45% 0%

NRSP PEL SUKUK Habib Bank Limited I Bank Al Falah Limited V Askari Bank Limited IV K-Electric AZM Sukuk III

Mar-17 19% 4% 1% 7% 3% 17% 49% 1%

WAM* days 108 2584 41 1781 401 0 0

Disclosures

TFCs/Sukuk Portfolio Name of the Issuer

Feb-17 21% 4% 3% 8% 4% 23% 37% 0%

Issue Date

Rating

% of Total Assets

30-Jun-16 25-Aug-16

A A

1.59% 2.05%

19-Feb-16

AAA

1.90%

20-Feb-13

AA-

1.68%

23-Dec-11

AA-

1.44%

24-Feb-14

AA

1.05%

Leverage as on March 31st, 2017 Non Performing Assets WAM of Portfolio

Nil Nil 261 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

Morningstar FY17 - YTD March-17 2 Months 3 Months 6 Months 12 Months CY17 - YTD Simple Annualized FY17 - YTD March-17 2 Months 3 Months 6 Months 12 Months CY17 - YTD 3 Years 5 Years Since Inception

LIF 5.89% 5.15% 5.69% 6.49% 6.12% 6.09% 6.49% LIF 5.84% 5.03% 5.56% 6.34% 6.03% 6.11% 6.34% 11.92% 13.25% 14.12%

Benchmark 5.98% 6.30% 6.29% 6.27% 6.20% 6.17% 6.27% Benchmark 5.94% 6.13% 6.13% 6.13% 6.11% 6.17% 6.13% 10.53% 11.50% 11.94%

*The benchmark of the Fund was changed in September 2016

LIF vs. Benchmark 128 126 124 122 120 118 116 114 112 110 108 106 104 102 100 Jun-14

Nov-14

Apr-15

Benchmark

Sep-15

Feb-16

Jul-16

Dec-16

LIF

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

March 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

LEF managed to clock in a significant outperformance against the benchmark during March'17, when it generated a MTD return of 0.2% vs. -1.9% for KSE30 (total return). This adds to the FYTD return, bringing it up to 27.6% vs. 22.9% for the benchmark. The fund reduced exposure by 4% in the market, realising gains in sectors that were trading above their fundamental valuations. LEF trimmed out of Chemicals, Banks and Oil & Gas Exploration. Proceeds from the sa le were redeployed into OM Cs, Construction & Materials and Power Generation.

As of March 31st, 2017 the LEF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 39.04 million. If the same were not made the NAV per unit of the LEF would be higher by PKR 1.2461. If the LEF would not have made the SWWF provisions during FY17, the year to date return of the LEF for FY17 would be higher by 0.85%. For details investors are advised to read the latest Financial Statements of the LEF.

3.56% (This is inclusive of 1.20% representing Government levies and SECP Fees) YTD 2.67% (This is inclusive of 0.89% representing Government levies and SECP Fees) Sectorwise Exposure 6.55% 5.79% 5.09% 4.33% 4.11% 3.82% 3.75% 3.48% 3.26% 2.97%

Feb-17

Mar-17

Chemicals*

8.38%

7.74%

Comm Banks

22.77% 22.39%

Const. & Mat.

12.53%

13.52%

Electricity

4.68%

4.88%

Oil & Gas Exp

11.92%

9.85%

Oil & Gas Mktg

7.58%

8.45%

23.70%

21.37%

Others

8%

Sector wise Exposure

23%

10% 5%

88%

14%

Chemicals Comm Banks Const. & Mat Electricity Oil & Gas Exp Oil & Gas Mktg Others

*Returns based on last working day NAV **KSE-30 Total Return

Country

Index

92%

92%

88%

T-Bills

0%

0%

0%

Pakistan KSE-100

Cash

8%

8%

10%

India

Others

0%

0%

2%

500 400 300 200

Pakistan vs. Global Markets

Equities

Disclosures Leverage as on March 31st, 2017 Non Performing Assets

Benchmark** 22.87% -1.93% -1.67% 0.05% 17.30% 38.80% 0.05% 36.52% 119.62% 178.22%

600

8% 21%

Asset Allocation (% of Total Assets) Dec-17 Feb-17 Mar-17

LEF 27.57% 0.22% 0.01% 1.72% 19.02% 39.47% 1.72% 81.80% 222.37% 324.84%

LEF vs. Benchmark

10%

Equity Cash Others

FY17 - YTD March-17 2 Months 3 Months 6 Months 12 Months CY17- YTD 3 Year 5 Year Since Inception

*Includes fertilizers

2%

Asset Allocation

Open-End Equity Fund 4,571 145.8480 Forward Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 2.00% 3.00% None November 13, 2009 KSE-30 Index (Total Return Index) Mon-Fri 4:00 PM High Risk AM2 by PACRA (8.06.2016)

PERFORMANCE*

Total Expense Ratio (TER)

Top 10 Holdings Habib Bank Limited United Bank Limited Lucky Cement Limited Sui North Gas Pipelines Limited Pakistan State Oil Limited DG Khan Cement Limited Nishat Mills Limited Oil & Gas Development Co Indus Motor Co Limited Kohat Cement Limited

Fund Type Category Net Assets (PKR Mil.) NAV (31.03.2017) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark* Dealing Days Cut-Off Time Risk Profile Asset Manager Rating

1M P/E Div. Ret. Yield -0.78% 11.10 4.47

BSE Sensex 30 3.05% 21.98 1.27

100 0 Mar-16 May-16 Jul-16 LEF

Sep-16 Nov-16 Jan-17 Mar-17 KSE-100

KSE-30

Malaysia FTSE KLCI 2.73% 17.16 3.16 Dubai Nil Nil

DFM General

-4.13% 14.87 3.92

USA

DJIA

-0.72% 19.05 2.36

USA

S&P 500

-0.04% 21.75 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

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

March 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 March 2017 the Lakson Tactical Fund generated an absolute return of 0.38% against the benchmark return of -0.57%. The fund has outperformed the benchmark by 0.95% during the month. Allocation was foc us e d b etween E qui t ie s ( 4 5% ) , Placements with Banks & DIFs (19%) Cash (28%),TFCs/Sukuks (3%) and PIBs (3%). Going forward the fund will look to minimize interest rate risk while maintaining a healthy exposure to equities.

As of March 31st, 2017 the LTF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 5.20 million. If the same were not made the NAV per unit of the LTF would be higher by PKR 0.4020. If the LTF would not have made the SWWF provisions during FY17, the year to date return of the LTF for FY17 would be higher by 0.34%. For details investors are advised to read the latest Financial Statements of the LTF.

Fund Type Category Net Assets (PKR Mil.) NAV (31.03.2017) Pricing Mechanism Trustee Auditor Management Fee

Open-End Asset Allocation Fund 1,513 117.0239 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 - 1.29% 2.50% None October 11, 2011 Weighted average daily return of KSE30 Index, 6M KIBOR and the DBIQ Optimum Yield Diversified Commodity Index Excess Return based on the Scheme's actual proportion in the equity, debt securities and commodities Mon-Fri 4:00 PM Medium Risk AM2 by PACRA (08.06.2016)

Front End Load Back End Load Launch Date Benchmark*

Total Expense Ratio (TER) 2.50% (This is inclusive of 0.73% representing Government levies and SECP Fees) YTD 1.88% (This is inclusive of 0.54% representing Government levies and SECP Fees) Asset Allocation (% of Total Assets) Jan-17 Feb-17 Mar-17

1%

Placements

Placement with Banks & DFIs

19%

with Banks

28%

& DIFs

22%

20%

19%

PIBs

4%

3%

3%

TFC/Sukuks

4%

4%

3%

Equity

41%

45%

45%

Cash

28%

26%

28%

Others

1%

2%

1%

Top 10 Equity Holdings (%age of total assets) Securities

Mar-17 Weight

Habib Bank United Bank Lucky Cement Sui North Gas Oil & Gas Dev. P.S.O. D.G.K.Cement Nishat Mills Indus Motor Co. Engro Corp

3.28% 2.97% 2.64% 2.21% 2.10% 2.08% 2.01% 1.93% 1.67% 1.58%

Asset Allocation

3% 3%

PIBs TFC Equity Cash Others

45%

Sectorwise Exposure Feb-17

Mar-17

Comm. Bank

11.13%

11.18%

Const. and Mat.

9.33%

9.48%

Oil & Gas Exp

6.01%

5.16%

Oil & Gas Mktg

3.61%

4.29%

Chemicals*

3.80%

3.78%

Auto Assemblers & Parts 3.40%

3.16%

Electricity

2.42%

2.56%

Others

5.14%

5.17%

*Includes fertilizers

Dealing Days Cut-Off Time Risk Profile Asset Manager Rating

PERFORMANCE LTF 14.03% 0.38% 0.57% 1.39% 10.22% 6.96% 1.39% 24.07% 34.61% 51.40%

FY17 - YTD March-17 2 Months 3 Months 6 Months 12 Months CY17-YTD 3 Years 5 Years Since Inception

Benchmark 11.45% -0.57% -0.18% 0.80% 8.53% 15.72% 0.80% 15.88% 29.48% 37.81%

*The benchmark of the Fund was changed in September 2016.

LTF vs. Benchmark 159.00

149.00

139.00

129.00

119.00

109.00

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 Leverage as on March 31st, 2017 Non Performing Assets

Nil Nil

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

99.00 Aug-12

Feb-13

Aug-13

Feb-14

Aug-14

Benchmark

Feb-15

Aug-15

Feb-16 Aug-16 Feb-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

March 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 March 2017 the Lakson Islamic Tactical Fund generated a return of 0.63% against the benchmark return of -0.76%. The fund has outperformed the benchmark by 1.39% during the month. Fund exposure is in cash (52%), equities (38%) and placements (8%). A build up in Shariah compliant equities and fixed income instruments will be targeted over 4QFY17.

As of March 31st, 2017 the LITF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 0.22 million. If the same were not made the NAV per unit of the LAAEMF would be higher by PKR 0.1319. If the LITF would not have made the SWWF provisions during FY17, the year to date return of the LITF for FY17 would be higher by 0.12%. For details investors are advised to read the latest Fi na nci a l S tatem ents of the L I TF.

Fund Type Category Net Assets (PKR Mil.) NAV (31.03.2017) Pricing Mechanism Trustee Auditor Management Fee

Front End Load Back End Load Launch Date Benchmark*

Total Expense Ratio (TER) 3.65% (This is inclusive of 0.67% representing Government levies and SECP Fees) YTD 2.74% (This is inclusive of 0.50% representing Government levies and SECP Fees)

Asset Allocation (% of Total Assets) Jan-17 Feb-17 Mar-17

2%

52%

Asset Allocation

38%

Equities Placements Cash Others

Equities

36%

44%

Placements

0%

10%

38% 8%

Cash

61%

45%

52%

Others

3%

2%

2%

Mar-17 Weight

Lucky Cement

3.38%

Sui North Gas

2.98%

D.G.K.Cement

2.53%

P.S.O.

2.46%

Indus Motor Co.

2.32%

Nishat Mills Ltd.

2.08%

Oil & Gas Dev.

2.08%

Kohat Cement

1.97%

Engro Corp

1.94%

Mari Petroleum

1.83%

Disclosures Leverage as on March 31st, 2017 Non Performing Assets

LITF 7.68% 0.63% 0.63% 0.76% 7.25% -5.13% 0.76% 5.69% 18.01% 40.68%

Feb-17

Mar-17

9.29%

9.16%

Oil & Gas Exp.

9.41%

6.14%

Oil & Gas Mar.

5.06%

5.44%

*The benchmark of the Fund was changed in September 2016.

Chemicals*

5.20%

4.48%

LITF vs. Benchmark 159.00

Auto Assemblers & Parts

3.97%

3.49%

149.00

Electricity

3.31%

3.24%

139.00

Others

7.45%

6.44%

129.00

*Includes fertilizers 119.00

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.

109.00 99.00 Aug-12

Feb-13

Aug-13

Feb-14

Aug-14

Benchmark

Nil Nil

Benchmark 9.79% -0.76% -0.76% 0.11% 6.91% 10.60% 0.11% 17.23% 33.40% 46.69%

Const. and Mat.

Sectorwise Exposure

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

PERFORMANCE FY17 - YTD March-17 2 Months 3 Months 6 Months 12 Months CY17-YTD 3 Years 5 Years Since Inception

8%

Top 10 Equity Holdings (%age of total assets) Securities

Dealing Days Cut-Off Time Risk Profile Asset Manager Rating

Open-End Shariah Compliant Asset Allocation Fund 182 107.3507 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 1.28% 2.50% None October 11, 2011 Weighted average daily return of KMI30 Index, 6M deposit rates of three A rated Islamic Banks or Islamic windows of Conventional Banks and MSCI Emerging Markets Islamic Index based on the Scheme's actual proportion in the equity, debt and emerging market securities Mon-Fri 4:00 PM Medium Risk AM2 by PACRA (08.06.2016)

Feb-15

Aug-15

Feb-16

Aug-16

Feb-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

March 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 March 2017 the Lakson Asset Allocation Developed Markets Fund generated an absolute return of 0.45% against the benchmark return of 0.62%. The fund has underperformed the benchmark by -0.17% during the month. Allocation has been taken in T bills (50%), PIBs (15%) and Developed Market Equities (29%). Exposure in equities has been focused on US indices which offer a superior risk/return profile to other Developed Markets.

As of March 31st, 2017 the LAADMF has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of PKR 0.66 million. If the same were not made the NAV per unit of the LAADMF would be higher by PKR 0.2791. If the LAADMF would not have made the SWWF provisions during FY17, the year to date return of the LAADMF for FY17 would be higher by 0.23%. For details investors are advised to read the latest Financial Statements of the LAADMF.

Fund Type Category Net Assets (PKR Mil.) NAV (31.03.2017) Pricing Mechanism Trustee Auditor Management Fee

Open-End Asset Allocation Fund 287 121.3758 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 - 1.50% 2.50% None October 11, 2011 Weighted average daily return of 6M KIBOR and the MSCI World Index based on the Scheme's actual proportion in the debt securities and developed market securities Mon-Fri 4:00 PM Medium Risk AM2 by PACRA (08.06.2016)

Front End Load Back End Load Launch Date Benchmark

Total Expense Ratio (TER) 2.59% (This is inclusive of 0.48% representing Government levies and SECP Fees) YTD 1.95% (This is inclusive of 0.36% representing Government levies and SECP Fees) Asset Allocation (% of Total Assets) Jan-17 Feb-17 Mar-17

4% 6% 28% 29%

Asset Allocation

37% 50%

T-Bill PIBs Equities Cash

15% 31%

Developed Markets Equities (Mar-17) QQQ ETF % of Asset Apple Inc 12.10% Microsoft Corp 8.09% Amazon.com Inc 6.89% Facebook Inc 5.32% Alphabet Inc 4.61% Alphabet Inc 4.04% Comcast Corp 2.85% Intel Corp 2.73% Cisco Systems Inc 2.67% Amgen Inc 1.93% QQQ ETF (As of Mar-17) Country United States

T-Bills

37%

50%

50%

PIBs

14%

15%

15%

Developed Markets (DM) Equities

30%

32%

29%

Others

0%

2%

0%

Cash

19%

2%

6%

Vanguard S&P 500 Apple Inc Microsoft Corp Exxon Mobil Corp Amazon.com Inc Johnson & Johnson JPMorgan Chase & Co Facebook Inc Berkshire Hathaway Inc General Electric Co Wells Fargo & Co

% of Assets 3.57% 2.43% 1.65% 1.63% 1.63% 1.59% 1.55% 1.51% 1.29% 1.28%

LAADMF 7.14% 0.45% 1.90% 3.96% 4.57% -0.76% 3.96% 17.1% 41.0% 60.8%

FY17 - YTD March-17 2 Months 3 Months 6 Months 12 Months CY17-YTD 3 Years 5 Years Since Inception

Benchmark 6.83% 0.62% 1.74% 2.94% 4.52% 7.72% 2.94% 18.58% 48.33% 61.96%

*The benchmark of the Fund was changed in September 2016.

LAADMF vs. Benchmark 169.00 159.00 149.00 139.00

Weight

Weight

119.00

96.85%

United States

97.47%

109.00

129.00

1.88%

Ireland

1.02%

United Kingdom

0.73%

Switzerland

0.50%

Isreal

0.28%

United Kingdom

0.48%

Bermuda

0.05%

99.00 Aug-12

Feb-13

Aug-13

Feb-14

Benchmark

Aug-14

Feb-15

Aug-15

Feb-16

Aug-16

Feb-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

Vanguard S&P 500 (As of Mar-2017) Sector

China

Leverage as on March 31st, 2017 Non Performing Assets

Dealing Days Cut-Off Time Risk Profile Asset Manager Rating

Babar Ali Lakhani Kashif Mustafa Mustafa O. Pasha, CFA Sana Abdullah, CFA Syed Saifullah Kazmi Hassan Bin Nasir Tayyaba Azeem Junaid Arshad, ACCA

Chairman

March 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

March 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 3 and 5 fiscal years

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

LAKSON MONEY M A R K ET FU N D ( L M M F )

Fund

11.19%

8.76%

7.90%

8.57%

5.60%

Benchmark

11.31%

9.14%

8.50%

8.45%

5.61%

LAKSON INCOME FUND (LIF)

Fund

11.57%

9.21%

8.38%

14.17%

8.57%

Benchmark

8.86%

9.17%

8.31%

12.64%

7.16%

LAKSON EQUITY FUND (LEF)

Fund

9.74%

40.02%

32.15%

23.93%

10.60%

Benchmark

10.45%

52.20%

25.96%

5.67%

0.37%

LAKSON ASSET 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

6.42%

10.52%

9.64%

7.76%

8.00%

Benchmark

10.63%

13.45%

12.94%

5.34%

2.33%

L A K S O N TA C T I C A L F U N D ( LT F ) *

Fund

5.85%

3.44%

4.24%

8.86%

6.85%

Benchmark

7.25%

7.89%

7.47%

-1.02%

3.18%

LAKSON ISLAMIC TA C T I C A L FUND (LITF)**

Fund

6.23%

5.46%

6.40%

4.96%

4.42%

Benchmark

9.82%

8.50%

10.01%

3.36%

0.05%

*Formerly: Lakson Asset Allocation Global Commodities Fund (LAAGCF) **Formerly: Lakson Asset Allocation Emerging Markets Fund (LAAEMF)

Since Inception Absolute Returns FY 2010 FY 2011 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 2012

FY 2013

FY 2014

FY 2015

FY 2016

Fund

6.77%

19.25%

32.63%

44.25%

55.65%

68.98%

78.45%

Benchmark

6.66%

19.21%

32.73%

44.86%

57.17%

70.45%

80.01%

Fund

7.16%

19.49%

33.35%

45.63%

57.84%

80.20%

95.65%

Benchmark

4.59%

15.90%

26.20%

37.77%

49.22%

68.08%

80.12%

Fund

-0.66%

19.65%

31.30%

83.84%

142.95%

201.09%

233.00%

Benchmark

7.32%

37.94%

52.35%

107.12%

160.89%

175.69%

126.44%

Fund

6.42%

17.62%

28.95%

38.96%

50.08%

Benchmark

10.63%

25.51%

41.75%

49.33%

52.81%

Fund

5.85%

9.49%

14.13%

24.25%

32.76%

Benchmark

7.25%

15.71%

24.36%

23.09%

27.00%

Fund

6.23%

12.03%

19.20%

25.11%

30.64%

Benchmark

9.82%

19.15%

31.08%

35.49%

35.56%

Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved.

LAKSON OUTLOOK

March 2017

14

Mutual Funds Performance Comparison Annualized Returns (%): Positions as of April 05, 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 PICIC Income Fund UBL Income Opportunity Fund (UIOF)

30 DAYS

90 DAYS

180 DAYS

270 DAYS

365 DAYS

4.82 5.62 5.23 5.49 4.72 4.81 5.56 5.18 3.92 6.59 5.37 4.88 5.30 4.87 4.66 6.32 4.25

8.17 5.12 9.67 11.81 9.98 5.80 5.29 6.16 10.68 14.79 6.55 6.23 15.37 7.28 11.97 7.24 4.83

6.28 5.44 6.40 6.84 7.95 5.23 5.98 6.03 7.79 10.27 6.08 5.81 10.44 6.00 8.52 6.12 4.74

N/A N/A N/A N/A N/A N/A N/A N/A N/A 9.16 N/A 6.52 8.91 N/A N/A N/A N/A

6.16 6.08 5.37 5.7 6.3 4.55 6.94 6.02 6.29 8.2 6.48 6.48 8.16 5.29 6.49 5.56 6.66

5.16 0.36 6.14 4.88 4.54 4.20 (1.45) 5.58 (1.71) 4.43 4.40 4.28

5.58 2.00 5.25 8.17 5.00 5.06 (1.50) 6.09 5.70 4.77 6.80 6.43

6.02 4.76 5.59 6.06 6.00 4.55 1.20 5.42 6.91 5.07 6.26 5.50

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 6.01 N/A

5.66 5.17 5.3 5.3 5.6 5.35 3 4.99 6.28 5.69 5.86 6.38

30 DAYS

90 DAYS

180 DAYS

270 DAYS

365 DAYS

4.65 4.43 4.78 4.80 4.66 5.15 4.67 3.92 4.93 5.28 4.60 4.90 5.19 5.24 4.89 5.33 5.24 5.38 4.44 5.02 4.14

13.67 10.49 11.27 7.13 17.54 7.67 4.66 4.78 10.78 9.99 9.53 7.01 9.20 10.85 14.31 7.42 13.65 6.19 9.35 9.06 7.23

9.45 7.48 8.17 6.17 11.33 6.54 4.82 4.49 7.93 7.70 7.29 6.10 7.39 8.20 9.86 6.57 9.59 5.81 7.34 7.05 5.79

8.32 N/A N/A N/A 9.34 N/A N/A N/A 7.15 N/A N/A 5.89 6.75 7.28 8.41 6.56 8.24 5.63 N/A 6.46 N/A

7.76 6.26 6.65 5.79 8.35 6.1 5.11 4.27 6.84 6.5 6.06 5.78 6.53 6.82 7.82 6.48 7.6 5.79 6.32 6.37 5.45

4.63 3.81 4.43

4.66 4.53 10.44

4.83 4.32 7.53

N/A N/A N/A

4.88 4.2 6.17

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 Pakistan Cash Management Fund PICIC Cash 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

March 2017

15

Mutual Funds Performance Comparison Annualized Returns (%): Positions as of April 05, 2017 AGG RESSI VE IN COM E FUN DS

30 DAYS

90 DAYS

180 DAYS

270 DAYS

365 DAYS

AKD Aggressive Income Fund Alfalah GHP Income Multiplier Fund Askari High Yield Scheme BMA Chundrigar Road Savings Fund Faysal Income & Growth Fund Pakistan Income Enhancement Fund UBL Growth & Income Fund

6.72 5.33 6.97 7.70 6.21 4.93 4.64

7.31 6.70 6.98 5.91 8.05 7.12 5.72

6.31 6.14 5.25 5.54 4.08 5.60 4.30

N/A N/A N/A N/A N/A N/A N/A

6.44 6.43 5.06 6.07 4.97 5.02 8.29

3.94

4.40

4.29

N/A

5.18

30 DAYS

90 DAYS

180 DAYS

270 DAYS

365 DAYS

(2.41) (4.30) (2.89) (2.84) (2.88) (3.28) (3.35) (2.16) (3.21) (2.96) (2.50) (3.08) (2.41) (3.11) (2.56) (1.25) (2.36) (2.60) (3.38) (2.25)

1.66 0.53 1.87 1.84 (1.97) (1.28) 2.75 0.44 (0.58) 3.24 3.69 1.15 0.38 1.07 0.50 1.29 2.06 1.46 (2.22) 3.38

20.53 12.05 19.90 20.27 13.71 20.48 15.95 17.97 15.22 24.11 18.34 14.90 17.59 19.46 18.60 18.98 18.34 18.67 15.13 18.96

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

46.3 59.6 37.14 37.34 31.57 45.16 37.96 34.67 31.33 45.37 40.35 35.53 36.82 43.86 48.31 49.41 44.8 34.87 30.28 39.67

(1.76) (2.03) (2.67) (2.16) (2.81) (2.37) (2.33) (3.24)

2.77 2.78 0.09 1.02 (0.79) 0.98 0.56 (2.52)

21.40 19.88 17.86 20.53 15.89 16.88 18.05 13.26

N/A N/A N/A N/A N/A N/A N/A N/A

42.08 39.52 39.31 34.51 33.18 48.37 40.8 24.97

30 DAYS

90 DAYS

180 DAYS

270 DAYS

365 DAYS

(0.87) (1.92) (1.42) (1.75) (1.71)

4.20 0.90 2.37 1.97 2.79

13.19 13.29 15.38 16.77 11.97

N/A N/A N/A N/A N/A

21.61 25.21 37.76 33.61 26.32

(1.59)

0.76

11.72

N/A

24.32

ISLAMIC AGGRESSIVE I NCO ME FUND S 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 Stock Fund JS Growth Fund JS Large Cap Fund JS Value Fund Lakson Equity Fund MCB Pakistan Stock Market Fund NAFA Stock Fund National Investment Unit Trust PICIC Energy Fund PICIC Stock Fund PIML Value Equity Fund 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 Stock Fund JS Islamic Fund Meezan Islamic Fund PIML Islamic Equity Fund BALANCED FUNDS Faysal Balanced Growth Fund HBL Multi Asset Fund NAFA Multi Asset Fund Pakistan Capital Market Fund Unit Trust of Pakistan ISLAMIC BALANCED FUNDS Meezan Balanced Fund

Note: NA - Not Available. Source: MUFAP.

LAKSON OUTLOOK

March 2017

16

Mutual Funds Performance Comparison Annualized Returns (%): Positions as of April 05, 2017 ASSET A LLO CATIO N FUN DS

30 DAYS

90 DAYS

180 DAYS

270 DAYS

365 DAYS

(2.43) (2.26) (2.01) 0.16 (0.91) (2.59) (0.15) (1.43) (3.18) (0.54)

0.31 0.13 6.46 3.62 0.88 (2.21) (0.13) 2.32 (2.10) 2.09

15.83 10.15 8.36 4.50 9.69 4.05 2.46 15.37 13.44 9.18

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

35.99 21.49 20.52 8.44 15.79 13.6 5.64 36.26 27.95 18.43

(0.55) (1.02) (0.67) (3.26) (1.43) (3.07)

2.05 0.66 0.62 0.42 0.74 (1.78)

10.08 10.76 7.43 17.24 12.61 14.12

N/A N/A N/A N/A N/A N/A

17.96 24.47 8.92 N/A 29.63 26.46

CAPITAL PROTECTED FUNDS

30 DAYS

90 DAYS

180 DAYS

270 DAYS

365 DAYS

HBL Mustahekum Sarmaya Fund 1 JS Capital Protected Fund V UBL Capital Protected Fund III

0.33 0.24 0.00

1.82 1.32 N/A

4.60 2.95 N/A

7.07 N/A N/A

8.99 N/A N/A

0.31 0.38

2.69 2.11

11.25 13.65

N/A N/A

23.09 30.98

Alfalah GHP Value Fund Askari Asset Allocation Fund Faysal Asset Allocation Fund Lakson Asset Allocation Developed Markets Fund Lakson Tactical Fund MCB Pakistan Asset Allocation Fund MCB Pakistan Frequent Payout Fund NAFA Asset Allocation Fund Pak Oman Advantage Asset Allocation Fund UBL Asset Allocation Fund ISLAMIC ASSET 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

ISLAMIC CAPITAL PROTECTED FUNDS NAFA Islamic Principal Protected Fund I NAFA Islamic Principal Protected Fund II

Note: NA - Not Available. Source: MUFAP.

LAKSON OUTLOOK

March 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

5Y

World

MSCI All Country World Index

6.4%

6.4%

12.7%

55.2%

6.4%

6.4%

12.7%

34.7%

Developed

MSCI World Index

5.9%

5.9%

12.5%

62.8%

5.9%

5.9%

12.5%

41.3%

Emerging

MSCI Emerging Markets Index

11.1%

11.1%

14.5%

6.1%

11.1%

11.1%

14.5%

-8.0%

Europe

MSCI Europe Index

6.7%

6.7%

6.5%

31.1%

6.7%

6.7%

6.5%

13.8%

China

CSI 300

4.4%

4.4%

7.4%

62.2%

4.4%

4.4%

7.4%

40.8%

Dubai

DFM

0.0%

0.0%

0.0%

253.9%

0.0%

0.0%

0.0%

207.1%

India

BSE Sensex 30

11.2%

11.2%

16.9%

96.1%

11.2%

11.2%

16.9%

70.2%

Japan

Nikkei 225

-1.1%

-1.1%

12.8%

116.1%

-1.1%

-1.1%

12.8%

87.5%

Malaysia

FTSE Bursa

6.0%

6.0%

1.3%

25.6%

6.0%

6.0%

1.3%

9.0%

Pakistan

KSE 100

0.7%

0.7%

45.3%

249.9%

0.7%

0.7%

45.3%

203.6%

Sri Lanka

Colombo All Share

-2.7%

-2.7%

-0.2%

28.5%

-2.7%

-2.7%

-0.2%

11.5%

UK

FTSE 100

2.5%

2.5%

18.6%

46.3%

2.5%

2.5%

18.6%

26.9%

US

DJIA

4.6%

4.6%

16.8%

80.2%

4.6%

4.6%

16.8%

56.4%

US

S&P 500

5.5%

5.5%

14.7%

93.3%

5.5%

5.5%

14.7%

67.8%

US

NASDAQ 100

11.8%

11.8%

21.2%

127.4%

11.8%

11.8%

21.2%

97.3%

Germany

DAX Index

7.2%

7.2%

23.6%

104.3%

7.2%

7.2%

23.6%

77.2%

CANADA

TSX 300 Composite Index

1.7%

1.7%

15.2%

44.6%

1.7%

1.7%

15.2%

25.5%

France

CAC - 40

5.4%

5.4%

16.8%

72.4%

5.4%

5.4%

16.8%

49.6%

Brazil

Sao Paulo SE Bovespa Index

7.9%

7.9%

29.8%

16.1%

7.9%

7.9%

29.8%

0.7%

Korea

Korea SE Kospi

6.6%

6.6%

8.2%

23.6%

6.6%

6.6%

8.2%

7.3%

Taiwan

Taiwan SE Weighted Index

6.0%

6.0%

12.2%

42.5%

6.0%

6.0%

12.2%

23.7%

1060.5%

-30%

-5%

20%

45%

70%

KSE SECTORS Automobile and Parts

3.9%

3.9%

162.8% 1237.4%

3.9%

3.9%

162.8%

Banks

-3.9%

-3.9%

34.8%

118.3%

-3.9%

-3.9%

34.8%

89.5%

Chemicals

13.2%

13.2%

-51.6%

-14.9%

13.2%

13.2%

-51.6%

-26.1%

Construction and Materials

0.4%

0.4%

42.2%

699.4%

0.4%

0.4%

42.2%

593.6%

Electricity

-1.5%

-1.5%

12.9%

201.1%

-1.5%

-1.5%

12.9%

161.2%

Food Producers

-3.4%

-3.4%

10.1%

99.4%

-3.4%

-3.4%

10.1%

73.1%

Oil and Gas

-7.2%

-7.2%

40.7%

35.2%

-7.2%

-7.2%

40.7%

17.3%

Personal Goods

-7.9%

-7.9%

-0.3%

163.9%

-7.9%

-7.9%

-0.3%

129.0%

YTD 3-mo

Fixed Income

MONEY MARKET

Govt. Securities vs. KIBOR

CURRENT INTERBANK RATES

HISTORIC 6M INTERBANK RATES

1M

3M

6M

12 M

Y TD

3M

1Y

5Y

8.00% 7.75% 7.50% 7.25%

China

SHIBOR

4.35%

4.39%

4.35%

4.20%

NA

4.00%

3.22%

3.28%

Dubai

UAE IBOR

1.05%

1.47%

1.69%

2.22%

NA

1.65%

1.51%

1.27%

India

MIBOR

7.68%

7.80%

NA

NA

NA

NA

NA

NA

Japan

TIBOR

0.03%

0.06%

0.11%

0.13%

0.11%

0.11%

0.11%

0.18%

Malaysia

KLIBOR

3.18%

3.43%

3.54%

3.63%

3.54%

3.54%

3.60%

3.72%

Pakistan

KIBOR

6.27%

6.12%

6.16%

6.44%

6.13%

6.13%

6.13%

6.46%

Sri Lanka

SLIBOR

10.82%

11.26%

11.87%

12.35%

11.55%

11.55%

11.11%

9.34%

UK

LIBOR

0.26%

0.34%

0.49%

0.72%

0.52%

0.52%

0.59%

0.66%

US

SIBOR

0.98%

1.15%

1.42%

1.80%

1.37%

1.37%

1.18%

0.90%

Interbank Mar 17

7.00% 6.75% 6.50% 6.25% 6.00% 5.75% 5.50% 5.25% 5.00% 1W

CURRENT MARKET YIELDS

GOVERNMENT SECURITIES

HISTORIC 12M PAPER RATES

1M

3M

6M

1Y

2Y

12M Yields of Government Securities China

3M

12 M

5Y

10 Y

Y TD

3M

1Y

2Y

China

2.63%

2.87%

3.10%

3.29%

2.77%

2.78%

2.41%

2.38%

India

India

8.31%

6.10%

#N/A

6.68%

6.18%

6.18%

6.52%

6.98%

Japan

Japan

-0.20%

-0.20%

-0.12%

0.07%

-0.34%

-0.34%

-0.32%

-0.20%

Malaysia

Malaysia

3.15%

3.24%

3.82%

4.15%

3.13%

3.13%

2.83%

2.92%

Pakistan

5.87%

5.94%

7.11%

8.32%

5.91%

5.91%

5.93%

6.26%

Pakistan Sri Lanka

Sri Lanka

11.26%

12.35%

NA

NA

12.03%

12.03%

11.59%

9.75%

UK

0.27%

0.15%

0.56%

1.14%

0.09%

0.09%

0.19%

0.32%

UK

US

0.75%

1.02%

1.92%

2.39%

0.87%

0.87%

0.67%

0.53%

US 0%

LAKSON OUTLOOK

Govt. Sec. Mar 17

3%

6%

9%

12%

March 2017

18

Markets Information Commodities CURRENT PRICE

TOTAL RETURN

COMMODITY

UN IT

YT D

3M

1Y

5Y

DB Commodity Index

USD Excess Return

-3.7%

-3.7%

14.9%

-43.8%

316.9

S&P Global Commodity Index

USD Total Return

-5.1%

-5.1%

8.4%

-55.6%

2295.2

Dow Jones UBS Commodity Index

USD Total Return

-2.3%

-2.3%

8.7%

-39.4%

172.8

Coal

USD/Tonne

-8.7%

-8.7%

58.0%

N.A

80.8

Copper

USc/lbs

5.9%

5.9%

21.5%

-30.7%

265.3

Cotton

USc/lbs

9.5%

9.5%

32.3%

-17.3%

77.3

Gold

USD/t oz.

8.3%

8.3%

1.1%

-25.3%

1247.3

Palm Oil

USD/Tonne

-10.7%

-10.7%

-7.8%

-43.7%

640.2

Sugar

USc/lbs

-14.1%

-14.1%

9.2%

-32.2%

16.8

Wheat

USD/Bushel (60Ibs)

4.5%

4.5%

-9.9%

-35.5%

4.3

WTI

USD/bbl

-5.8%

-5.8%

32.0%

-50.9%

50.6

Brent Crude

USD/bbl

-7.0%

-7.0%

33.4%

-57.0%

52.8

Heating Oil

USd/Gallon

-7.7%

-7.7%

32.8%

N.A

157.4

RBOB Gasoline

USD/Gallon

2.1%

2.1%

19.2%

-49.8%

1.7

Natural Gas

USD/MMBTU

-14.3%

-14.3%

62.8%

50.0%

3.2

Silver

USD/t Ozs

14.2%

14.2%

18.1%

-43.8%

18.3

140

DBCI

SPGSCI

DJUBS

130 120 110 100 90 80 Mar-16

May-16

Jul-16

Sep-16

Nov-16

Jan-17

Mar-17

Currencies CURRENT EXCHANGE RATES

TOTAL RETURN

Y TD

3M

1Y

190

5Y

Canadian Dollar

CAD

1.42%

1.42%

1.70%

1.70%

CAD - PKR

78.70

Euro

EUR

1.76%

1.76%

-1.99%

-1.99%

EUR - PKR

111.68

Indian Rupee

INR

5.53%

5.53%

1.17%

1.17%

INR - PKR

0.94

Japanese Yen

JPY

5.53%

5.53%

1.17%

1.17%

JPY - PKR

0.94

Pound Sterling

GBP

2.16%

2.16%

-9.80%

-9.80%

GBP - PKR

131.55

Singaporian Dollar

SGD

4.07%

4.07%

0.66%

0.66%

SGD - PKR

75.01

US Dollar

USD

0.44%

0.44%

0.03%

0.03%

USD - PKR

104.83

EUR

CAD

USD

150 130 110 90 70 1-Mar-16

LAKSON OUTLOOK

GBP

170

1-Jun-16

1-Sep-16

1-Dec-16

1-Mar-17

March 2017

19

LAKSON OUTLOOK

March 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

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