May 2013
Lakson Outlook Economic and Markets Review FMR Lakson Money Market Fund FMR Lakson Income Fund FMR Lakson Equity Fund FMR Lakson Asset Allocation Developed Markets Fund FMR Lakson Asset Allocation Emerging Markets Fund FMR Lakson Asset Allocation Global Commodities Fund Mutual Funds Performance Comparison Markets Information
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Our investors' interests always come first. We believe that if we serve our clients well, our own success will follow. Integrity and honesty are at the heart of our business. We expect our people to maintain high ethical standards. Our commitment to our clients, integrity, professional excellence, entrepreneurial spirit and teamwork will set us apart. Our firm shares bonuses with all employees - not just top management, but also those who perform standard administrative and clerical duties. Our goal is to provide superior returns to our shareholders. Profitability is critical to achieving superior returns, building our capital, and attracting and keeping the best people. Our business is highly competitive and we will aggressively seek to expand our client relationships. However, we are always fair competitors and never denigrate other firms.
Table of contents Economic & Markets Review
04 - 05
Lakson Money Market Fund
06
Lakson Income Fund
07
Lakson Equity Fund
08
Lakson Asset Allocation Global Commodities Fund
09
Lakson Asset Allocation Developed Markets Fund
10 - 11
Lakson Asset Allocation Emerging Markets Fund
12 - 13
Mutual Funds Performance Comparison
14 - 15
Markets Information
16 - 17
03
Lakson Outlook - May 2013
Economic & Markets Review - Pakistan Economic Review Inflation continued its easing trend and the headline inflation as measured by Consumer Price Index ("CPI") for May '13 clocked in at 5.1% YoY; the lowest level witnessed during the last 9 years and since the rebasing of the index. On a month on month basis the CPI increased by 0.5%, whereby the major contribution came from an increase in prices of Perishable Food Items, which surged by 6.3% MoM. All other major items including "Housing, Electricity & Fuel" and "Non-perishable Food Items" remained muted which resulted in softened monthly inflation. For the 11MFY13, the CPI averaged at 7.5% compared to an average of 11.0% for the 11MFY12; a decline of 344 bps. We expect the CPI to average around 7.5% for the full year FY13. The external account position of Pakistan remained weak as the current account posted a deficit of USD 354 million in April '13. The cumulative current account deficit for the 10MFY13 stood at USD 1,418 million compared to a deficit of USD 3,354 million in the 10MFY12, a decline of 58% YoY. The trade deficit declined by 13.7% YoY in the 10MFY13 to USD 13.16 billion compared to USD 15.25 billion in the 10MFY12. A declined in the trade deficit is mainly due to payments made by US under the Coalition Support Fund. The remittances continued to support the external account in the absence of any significant financial and capital inflows. During the 10MFY13 the remittances stood at USD 11.57 billion compared to USD 10.88 billion in the 10MFY12, a growth of 6.4% YoY. During May '13, the foreign exchange reserves of the country declined by USD 355 million owing to a weak external account position. The foreign exchange reserves were supported to some extent by foreign portfolio inflows of USD 281 million. The total liquid reserves of the country stood at USD 11.46 billion, while the SBP reserves stood at USD 6.40 billion. Despite all the odds, Pak Rupee depreciated by only 0.1% against the green-back during the month and USD/PKR ended the month at 98.55. Fixed Income Market The month of May '13 marked a slight shift in money market dynamics, although its longterm trajectory remained unchanged. The Ministry of Finance raised PKR 521 billion through two T-Bill auctions against a maturity of PKR 431 billion. The market participants regained their enthusiasm for T-Bills as the bid-to-cover ratio for the two auctions came in at 1.30x (0.65x in April) while the 77% of total bids came in the 12-month tenor. The shift to the longer tenor is in stark contrast to the trend seen in April '13 wherein participants had a strong preference for the shorter-end of the yield curve due to expectations of a hike in the discount rate. However, increasing positive real interest rates and a delay in IMF program have changed the market expectations regarding monetary policy. The cutoff yields on TBills came down by 9, 7, and 7 bps respectively for the 3, 6 and 12 month T-Bills. Active participation in the PIB auction was also witnessed in May '13 as the investors placed bids of PKR 98 billion against the auction target of PKR 25 billion and maturity of PKR 3.6 billion. Secondary market yields on the 3Y, 5Y and 10Y bonds fell by 82bps, 85bps and 98bps respectively, resulting in a flattening of the yield curve. The SBP's average weekly injections through open market operations came in at PKR 297 billion; representing a 33% MoM decline as the SBP aims at reducing the size of the liquidity injections. Meanwhile, the 6month KIBOR remained unchanged since April-end at 9.58%, while the 12-month KIBOR declined by 6bps to 9.86%. Equity Market Review May '13 was another record-setting month for the equity market as the KSE-100 Index recorded a 14.96% return. The market celebrated the peaceful transition of power from one democratic government to another democratic government. The investors brushed aside a host of economic indicators which portrayed a bleak picture of the Pakistani economy in the medium-term, and instead pinned their hopes on a reform agenda of the new government. Average daily volumes of the KSE-100 Index scrips rose 85% MoM while average daily traded value increased by 73% MoM, as a broad based activity was seen in the market. The MoM surge in volume/value numbers is also due to a low-base effect of April, wherein investors remained on the sidelines, waiting for clarity on the political front. Foreign investors continued to show interest in the local equity markets as the FIPI net inflow in May '13 came in at USD 271 million compared to USD 98 million in April. However, a significant portion of this inflow was due to Unilever's de-listing. Pakistan was one of the best performing markets in the region as it outperformed the monthly returns of just 5.6% for China and 1.3% for India. As we move into FY14, investors should focus on the fiscal and monetary policies as the economy requires some structural reforms that may not be very market friendly in short to medium term.
Yield Curve
13.0% 12.0% 11.0% 10.0% 9.0% 8.0% 1W
2M
6M
2Y
5Y
30-Apr-13
8Y
15Y
31-May-13
USD/PKR vs. Forex Reserves
99.0
12.5
Forex Res. (USD bn.) - RHS USD/PKR
98.8
12.3
98.5
12.0
98.3
11.8
98.0
11.5 1-Apr
8-Apr
15-Apr
22-Apr
29-Apr
Market Rates 12.8% 11.8% 10.8% 9.8% 8.8% 7.8% 6.8% 2-May
11-May
6M KIBOR
20-May
O/N Repo Rate
29-May
6M T-Bill
The cumulative current account deficit for the 10MFY13 stood at USD 1,418 million, down 58% YoY.
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. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily an indication of future results.
04
Lakson Outlook - May 2013
Economic & Markets Review - International Developed Markets
The MSCI World Index recorded a decline of 0.29% in May '13. Most of the developed market equities continued to gain during the month, with the notable exception of Japan where the market fell sharply in the latter half of the month. In the US, the concern was about how soon the Fed would stop the stimulus. The market reacted negatively to the Fed speeches and the notes, which spoke of an eventual pullback in stimulus and low interest rates. The market, though, moved higher since it was widely felt that the Fed would not act until the economy was stronger. While the US focused on when stimulus would be cut, several countries moved to add or extend stimulus via programs such as France and lower interest rates such as Australia, Europe, and South Korea. US economic data was mixed but started off relatively positive as the US non-farm payrolls report for April surprised on the upside with an increase of 165,000 jobs. The Chicago Purchasing Managers' Index also rose and exceeded expectations. Housing prices and sales continued to improve in US, aided by limited inventories and low mortgage rates. Eurozone equity markets registered gains over the month, although performance was volatile and equities lost steam towards the end of the period. The MSCI Europe Index posted an increase of 1.3% in May '13. Eurozone macroeconomic data remained poor, with figures showing that GDP for the Eurozone contracted by 0.2% in the first quarter of 2013. Even Germany, the Eurozone's economic powerhouse, registered disappointing GDP figures with growth of just 0.1%. The European Central Bank (ECB) cut interest rates to a record low of 0.5% from 0.75% previously. At the end of the month, the European Commission relaxed its focus on austerity measures, agreeing to give some countries more time to reach deficit targets. Emerging Markets The MSCI Emerging Markets Index declined by 2.9% during May '13. A major drag on performance was the ongoing uncertainty surrounding the direction of monetary policy in the US. The Asian emerging markets outperformed the MSCI Emerging Markets Index while the emerging EMEA and emerging Latin American markets underperformed the MSCI Emerging Markets Index. China's manufacturing data for April '13 showed a slowdown in expansion. The country's official Purchasing Managers' Index reading fell to 50.6 for April '13 and concerns remain that further weak data could feed into slower GDP growth for the second quarter. A sub-index of new export orders also fell, signaling continued weak global demand. Chinese trade data for April '13 saw strong import growth but the country's equally robust exports continued to raise questions about the veracity of its export data, especially when set against the weakening numbers for other major Asian exporters. In Brazil some weak corporate earnings results weighed on stocks early in the month. Brazil's commodity-related stocks also slipped following the disappointing industrial production numbers from China. Official data releases showed that the Brazilian economy grew by just 0.6% in the first quarter of 2013. Over the 12 months to the end of March, Latin America's largest economy expanded by 1.9%. This subdued economic activity comes at a time when the central bank is becoming concerned about mounting inflation pressures and it recently moved to increase interest rates by 50 basis points to 8.00%. In India worries resurfaced over its GDP growth, which hit a decade-low of 5% in the year ending March. Further concerns over the weakness of the Indian rupee also contributed to negative sentiment. In terms of policy moves, several central banks cut official interest rates during the month. Turkey's central bank reduced interest rates by 50 basis points to 4.50%. Hungary also reduced interest rates from 4.75% to 4.50%. The central
Commodities
The DBC Commodity Index declined by 1.3% during May '13 as some of the major commodities declined during the month. WTI declined by 1.8% during May '13 due to ample supplies, an announcement from OPEC (Organization of the Petroleum Exporting Countries) that its output target will remain unchanged at 30 million barrels per day, and news that the 590,000 bpd Keystone pipeline had restarted. Weak economic data also showed that the US consumer spending fell in April '13 for the first time in almost a year, and the Eurozone figures indicated that unemployment in the 17-country bloc reached a new high last month. Gold prices declined by 6% during May '13 and Silver also hit its lowest level since September '10. US data showing low inflation and a six-year high consumer sentiment weighed on the precious metals, with bullion notching sharp losses for the second consecutive month. On the other hand industrial metals gained during the month with the exception of nickel. Lead inventories continued to decline, bringing the shortage to 31% this year; on the other hand, nickel inventories were high and put pressure on the prices. In April '13 copper production in Chile dropped by 1.2% from one year earlier, due to strikes, production line problems and lower ore grades in some deposits. Agricultural commodities witnessed a mixed trend during the month. Corn and Soybeans were up during the month supported by low inventories and increased buying from China. On the other hand wheat, cotton and sugar declined during the month. A slowdown in cotton buying particularly from China caused a decline in its price. The slowdown in buying also contributed to the loss in sugar as Chinese inventories doubled since last season.
Performance of Equities & Commodities
140%
MSCI World Index MSCI EM Index
MSCI EM Index
DB Commodity Index
DB Commodity Index
120%
100%
80% May-12
Jul-12
Sep-12 Nov-12
Jan-13 Mar-13
Valuations of International Markets
20 16 12 8 4 -
DM
US
UK
Japan Canada EM Brazil Russia India China
P/E Multiple
The US market reacted negatively to the Fed speeches and the notes, which spoke of an eventual pullback in stimulus and low interest rates.
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. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily an indication of future results.
05
May-13
Lakson Outlook - May 2013
Lakson Money Market Fund
MUFAPs Recommended Format
Investment Objective 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 The Lakson Money Market Fund ("LMMF") yielded an annualized return of 7.84% in May '13 compared to the Benchmark (average return of all money market funds) return of 8.08% p.a. The LMMF underperformed the average money market fund by 25bps. The yield since inception (13th November 2009) of the LMMF stood at 10.64% p.a. compared to a 10.74% p.a. return for the average money market fund. During the month, the LMMF increased exposure in TDRs to 36% as the banks offered better rates on TDRs due to tight market liquidity situation and to raise June end crossing deposits to improve their balance sheets. Exposure in T-Bills was reduced to 59% to generate liquidity for placing deposits with banks at higher rates. As of May 31, 2013, the Weighted Average Maturity ("WAM") of the LMMF portfolio was 33 days. The WAM of the LMMF remained unchanged as we remained invested in shorter tenure T-Bills to take advantage of the tight liquidity situation in the market that caused an increase in the yields of shorter tenure T-Bills. The portfolio of the LMMF still offers very high liquidity and as on May 31, 2013, 59% portfolio of the LMMF comprised of instruments that can be liquidated within six (6) business days keeping in view the present market situation. The Standard Deviation, a measure of the volatility of the fund's performance, of monthly returns of the LMMF since inception is just 1.60%. WWF Disclosure As of May 31, 2013 the LMMF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 37.10 million. If the same were not made the NAV per unit of the LMMF would be higher by PKR 0.4210. If the LMMF would not have made the WWF provisions during FY13, the year to date annualized return of the LMMF for FY13 would be higher by 0.16%. For details investors are advised to read the Note 9.1 of the latest Financial Statements (Quarterly Report as of March 31, 2013) of the LMMF.
Asset Allocation
Credit Split
LOPs 5%
TDRs 36%
AA 17% AA+ 5% T-Bills 59%
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (31.05.2013) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark Dealing Days Cut-Off Time Fund Rating Asset Manager Rating
Open-End Money Market Fund 8,819 100.0625 Previous Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 1.25% None None November 13, 2009 Average of returns earned by Money Market Funds in the industry. Mon - Fri 4:00 PM 'AA' by PACRA AM3+
Performance Morningstar FY13 - YTD May-13 2 Months 3 Months 6 Months 12 Months CY13 - YTD
LMMF 8.82% 7.84% 7.90% 7.82% 7.87% 8.95% 7.78%
Benchmark 9.16% 8.08% 8.19% 8.13% 8.15% 9.23% 8.07%
Simple Annualized FY13 - YTD May-13 2 Months 3 Months 6 Months 12 Months CY13 - YTD
LMMF 8.79% 7.57% 7.65% 7.60% 7.72% 8.95% 7.61%
Benchmark 9.12% 7.80% 7.92% 7.90% 7.99% 9.23% 7.88%
AAA 78%
LMMF vs. Benchmark 125.00 120.00
Asset Allocation
115.00
Instruments Government Securities (T-Bills) Placements with Banks (TDRs) Placements with DFIs (LOPs) Cash
Mar-13 Apr-13 May-13 % of Total Assets 55% 96% 59% 36% 0% 36% 0% 0% 5% 9% 4% 0%
WAM* Days 32 35 15 1
9.71% 9.39% 9.34%
9.60%
9.91%
9.38%
9.45%
110.00 105.00 100.00 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Benchmark
LMMF
* Weighted Average Maturity
Key Interest Rates (Monthly Average) KIBOR (1W, 1M, 3M, 6M, 12M) T-Bills (3M, 6M, 12M) Repo (O/N, 1M, 3M, 6M, 12M)
9.65% 9.44% 9.12%
* Source: Bloomberg, Reuters
Disclosures Leverage as on May 31, 2013 Non Performing Assets WAM of Portfolio
9.56% 9.41% 9.36%
Investment Committee Babar Ali Lakhani Muhammad Umair Chauhan Mustafa O. Pasha Syed Imran Raza Kazmi Maryam Hidayatallah
Chairman
Nil. Nil. 33 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. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily an indication of future results.
06
Lakson Outlook - May 2013
Lakson Income Fund
MUFAPs Recommended Format
Investment Objective 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 The Lakson Income Fund ("LIF") provided an annualized yield of 7.97% for the month of May '13, compared to the Benchmark return (average return of all income funds) of 7.70%. The LIF outperformed the average income fund by 27bps. The yield since inception (13th November 2009) of the LIF stands at an annualized rate of 10.94%, compared to the Benchmark return of 8.17% p.a. During the month the LIF reduced exposure in T-Bills to 43% and took exposure in TDRs and LOPs that offered better yields than the T-Bills of similar maturities. During the month prices of non-traded TFCs remained volatile but despite that the LIF continued to provide a consistent return to its investors. As of May 31, 2013, the WAM of the LIF portfolio was 357 days compared to 366 days at the start of the month. The WAM declined slightly during the month as the exposure in short term TDRs was taken. As of May 31, 2013, 44% of the portfolio of the LIF comprised of liquid instruments that can be liquidated within six (6) business days keeping in view the prevailing market conditions. In a situation where the income funds are providing very volatile returns, the standard deviation of annualized monthly returns of the LIF is only 1.77% compared to 3.87% for the Benchmark.
WWF Disclosure As of May 31, 2013 the LIF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 8.32 million. If the same were not made the NAV per unit of the LIF would be higher by PKR 0.4269. If the LIF would not have made the WWF provisions during FY13, the year to date annualized return of the LIF for FY13 would be higher by 0.17%. For details investors are advised to read the Note 10.1 of the latest Financial Statements (Quarterly Report as of March 31, 2013) of the LIF.
Asset Allocation CPs 13%
Credit Split
Cash MTS 1% 4%
LOPs 8%
A+ 1% AAAA 11% 2%
NR 4%
T-Bills 43%
AAA 59%
AA+ 23%
TDRs 15% TFCs 16%
TFCs Portfolio Name of the Issue Askari Bank Limited Bank Al Habib Limited Bank Alfalah Limited NIB Bank Limited Orix Leasing Pakistan Limited Pakistan Mobile Communications Pakistan Mobile Communications Standard Chartered Bank
Issue Date 23-Dec-11 30-Jun-11 20-Feb-13 05-Mar-08 30-Jun-11 28-Oct-08 18-Apr-12 29-Jun-12
Rating % of Total Assets AA3.77% AA 1.13% AA3.33% A+ 0.75% AA+ 1.77% AA1.27% AA2.99% AAA 1.24%
Government Securities (T-Bills) Placements with Banks (TDRs) Placements with DFIs (LOPs) Term Finance Certificates (TFCs) Commercial Papers (CPs) Margin Trading System (MTS) Cash
Mar-13
Apr-13
46% 15% 15% 18% 13% 4% 4%
% of Total Assets 63% 0% 0% 16% 13% 4% 4%
* Weighted Average Maturity
Disclosures Leverage as on May 31, 2013 Non Performing Assets WAM of Portfolio
Benchmark Dealing Days Cut-Off Time Fund Rating Asset Manager Rating
Open-End Income Fund 1,959 100.5311 Forward Day CDC Pakistan Limited KPMG Taseer Hadi & Co. 1.50% 1.50% None November 13, 2009 Average of returns earned by the Income Funds in the industry Mon - Fri 4:00 PM 'A+' by PACRA AM3+
Performance Morningstar FY13 - YTD May-13 2 Months 3 Months 6 Months 12 Months CY13 - YTD
LIF 9.34% 7.97% 8.91% 8.64% 8.65% 9.62% 8.35%
Benchmark 9.02% 7.70% 8.48% 8.55% 8.49% 9.14% 7.98%
Simple annualized FY13 - YTD May-13 2 Months 3 Months 6 Months 12 Months CY13 - YTD
LIF 9.31% 7.69% 8.60% 8.38% 8.47% 9.62% 8.15%
Benchmark 8.99% 7.43% 8.19% 8.28% 8.30% 9.14% 7.80%
LIF vs. Benchmark 125 120 115 110 105
Asset Allocation Instruments
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (31.05.2013) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date
May-13
WAM*
43% 15% 8% 16% 13% 4% 1%
Days 33 35 17 2,033 49 30 1
100
Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Benchmark
LIF
Investment Committee Babar Ali Lakhani Muhammad Umair Chauhan Mustafa O. Pasha Syed Imran Raza Kazmi Maryam Hidayatallah
Chairman
Nil. Nil. 357 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. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily an indication of future results.
07
Lakson Outlook - May 2013
Lakson Equity Fund
MUFAPs Recommended Format
Investment Objective 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 The Lakson Equity Fund ("LEF") increased by 8.77% in May '13 compared to the KSE-30 Index return of 15.30% and the KSE-100 Index return of 14.96%. The LEF underperformed the KSE-30 Index by 6.5% and the KSE-100 Index by 6.2%. The LEF has provided a cumulative return of 83.41% since its inception. During the month, the LEF increased its exposure in equities to 75% compared to 73% at the start of the month. The LEF increased exposure in Construction & Materials and Chemicals sectors while the exposure in Oil & Gas sector was reduced. Presently the market is trading at a P/E multiple of 9.28x with an average dividend yield of 6.06%. WWF Disclosure As of May 31, 2013 the LEF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 1.92 million. If the same were not made the NAV per unit of the LEF would be higher by PKR 1.3305. If the LEF would not have made the WWF provisions during FY13, the year to date return of the LEF for FY13 would be higher by 0.81%. For details investors are advised to read the Note 7.1 of the latest Financial Statements (Quarterly Report as of March 31, 2013) of the LEF.
Fund Facts
Fund Type Category Net Assets (PKR Mil.) NAV (31.05.2013) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark Dealing Days Cut-Off Time Asset Manager Rating
Open-End Equity Fund 203 141.1286 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 3.00% 3.00% None November 13, 2009 KSE-100 Index Mon-Fri 4:00 PM AM3+
Asset Allocation
Top 10 Holdings (In Alphabetical Order) D. G. Khan Cement Engro Corporation Limited Fatima Fertilizer Company Limited Fauji Fertilizer Company Limited Kohat Cement Limited Lucky Cement Limited Nishat Mills Limited Pakistan Oilfields Limited Pakistan Petroleum Limited United Bank Limited
5.13% 6.55% 3.78% 7.31% 5.90% 6.62% 3.13% 7.68% 8.60% 3.34%
Sectorwise Exposure
Apr-13
May-13
Construction & Materials Oil & Gas Chemicals Commercial Banks Personal Goods Others
19.66% 19.22% 14.32% 10.36% 4.94% 3.99%
22.13% 16.28% 17.63% 10.83% 4.70% 3.44%
Others Personal Goods
Performance Const. & Mat.
Commercial Banks
Chemicals Oil & Gas
FY13 - YTD May-13 2 Months 3 Months 6 Months 12 Months CY13 - YTD
LEF
KSE-30
KSE-100
39.69% 8.77% 11.46% 11.75% 20.02% 38.91% 18.88%
41.59% 15.30% 18.80% 13.49% 25.77% 41.24% 22.64%
58.12% 14.96% 20.95% 20.08% 31.67% 58.29% 29.09%
Sectorwise Exposure Cash & Equi. 13% T-Bills 12%
LEF vs. Benchmark 175.00
Equities 75%
160.00 145.00 130.00
Asset Allocation (% of Total Assets) Equities Treasury Bills Cash & Equivalents
115.00
Mar-13 75% 0% 25%
Apr-13 73% 13% 15%
May-13 75% 12% 13%
100.00 85.00 Jun-11
Sep-11 LEF
Dec-11
Mar-12
Jun-12
Sep-12
Dec-12
KSE-100
Mar-13
KSE-30
Pakistan vs. Global Markets Country Pakistan India Malaysia Dubai USA USA
Index KSE-100 BSE Sensex 30 FTSE KLCI DFM General DJIA S&P 500
* Source: Reuters, Bloomberg
Disclosures Leverage as on May 31, 2013 Non Performing Assets
Nil. Nil.
1M Return 14.96% 1.31% 3.00% 10.84% 1.86% 2.08%
P/E 9.28 17.48 16.37 15.22 14.63 15.92
Div. Yield 6.06% 1.76% 3.28% 3.25% 2.49% 2.13%
Investment Committee Babar Ali Lakhani Muhammad Umair Chauhan Mustafa O. Pasha Syed Imran Raza Kazmi Maryam Hidayatallah
Chairman
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. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily an indication of future results.
08
Lakson Outlook - May 2013
Lakson Asset Allocation Global Commodities Fund
MUFAPs Recommended Format
Investment Objective The investment objective of the Lakson Asset Allocation Global Commodities Fund is to provide longterm capital appreciation by investing in a mix of domestic debt and commodities. Performance Review The Lakson Asset Allocation Global Commodities Fund ("LAAGCF") increased by 0.13% in May '13 compared to the Benchmark (70% 6-month T-Bills + 30% DB Commodity Index) return of 0.17%. The LAAGCF underperformed the Benchmark by 4bps. The LAAGCF has appreciated by 9.89% since its inception. As of May 31, 2013, the LAAGCF has 26% exposure in International commodities. The LAAGCF's 26% international exposure is in DB Balanced Commodity ETF which tracks the performance of DBLC-OY Balanced Index. During the month the DB Commodity Index declined by 1.3%. WWF Disclosure As of May 31, 2013 the LAAGCF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 0.77 million. If the same were not made the NAV per unit of the LAAGCF would be higher by PKR 0.1763. If the LAAGCF would not have made the WWF provisions during FY13, the year to date return of the LAAGCF for FY13 would be higher by 0.08%. For details investors are advised to read the Note 7.1 of the latest Financial Statements (Quarterly Report as of March 31, 2013) of the LAAGCF.
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (31.05.2013) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark Dealing Days Cut-Off Time Asset Manager Rating
Open-End Asset Allocation Fund 452 104.1248 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 2.00% 2.50% None October 10, 2011 30% DB Commodity Index +70% 6-month TBills Mon - Fri 04:00 PM AM3+
Global Commodities (DB Balanced Commodity ETF) Commodity Gold WTI Crude Oil RBOB Gasoline Brent Crude Oil Heating Oil Sugar Soybeans Corn Aluminium Zinc Copper Natural Gas Silver Minnepolis Wheat Wheat (Kansas) Wheat Sectorwise Exposure as of Energy Agriculture Base Metals Precious Metals
Weight as of Apr-13 12.33% 8.89% 8.66% 8.40% 8.21% 7.41% 7.32% 7.01% 6.10% 6.04% 5.91% 4.25% 2.72% 2.32% 2.25% 2.18%
Asset Allocation Fund Performance
Cash 2% Commodities 26%
T-Bills 72%
FY13 - YTD May-13 2 Months 3 Months 6 Months 12 Months CY13 - YTD Since Inception
Sectorwise Exposure
LAAGCF
Benchmark
3.82% 0.13% -0.54% -0.42% -0.29% 4.73% -0.12% 9.89%
7.98% 0.17% -0.33% 0.50% 1.67% 9.63% 1.31% 15.32%
LAAGCF vs. Benchmark 115.00
Precious Metals 15.05%
Apr-13 38.41% 28.49% 18.05% 15.05%
112.00
Energy 38.41%
Base Metals 18.05%
109.00 106.00 103.00
Agriculture 28.49%
100.00 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Benchmark
LAAGCF
Asset Allocation Instruments Government Securities (T-Bills) Global Commodities Cash
Mar-13 Apr-13 May-13 % of Total Assets 71% 73% 72% 27% 26% 26% 2% 1% 2%
Disclosures Leverage as on May 31, 2013 Non Performing Assets
Nil. Nil.
Investment Committee Babar Ali Lakhani Muhammad Umair Chauhan Mustafa O. Pasha Syed Imran Raza Kazmi Maryam Hidayatallah
Chairman
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. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily an indication of future results.
09
Lakson Outlook - May 2013
Lakson Asset Allocation Developed Markets Fund Investment Objective The investment objective of the Lakson Asset Allocation Developed Markets Fund is to provide longterm capital appreciation by investing in a mix of domestic debt and developed markets securities. Performance Review The Lakson Asset Allocation Developed Markets Fund ("LAADMF") increased by 0.61% in May '13 compared to the Benchmark (70% 6-month T-Bills + 30% MSCI World Index) return of 0.49%. The LAADMF outperformed the Benchmark by 12bps. The LAADMF has appreciated by 17.79% since its inception. As of May 31, 2013 the LAADMF has 29% exposure in the Developed Markets equities. The Developed Markets continued their positive trend during May '13 as the benchmark MSCI World Index increased by 0.29%. The LAADMF's 29% exposure international exposure is in iShares MSCI World ETF which tracks the performance of the MSCI World Index. WWF Disclosure As of May 31, 2013 the LAADMF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 1.73 million. If the same were not made the NAV per unit of the LAADMF would be higher by PKR 0.2928. If the LAADMF would not have made the WWF provisions during FY13, the year to date return of the LAADMF for FY13 would be higher by 0.22%. For details investors are advised to read the Note 7.1 of the latest Financial Statements (Quarterly Report as of March 31, 2013) of the LAADMF.
Developed Markets Equities (iShares MSCI World ETF)
Security Exxon Mobil Corp Apple Inc Microsoft Corp General Electric Cheveron Corp Intl Business Machines Corp Johnson & Johnson Nestle SA Google Inc AT&T Inc
Asset Allocation
As of May-13
% of ETF's Assets 1.51% 1.47% 0.94% 0.89% 0.85% 0.84% 0.83% 0.81% 0.78% 0.76%
Cash 2%
DM Equities 29%
MUFAPs Recommended Format
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (31.05.2013) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date Benchmark Dealing Days Cut-Off Time Asset Manager Rating
Fund Performance FY13 - YTD May-13 2 Months 3 Months 6 Months 12 Months CY13 - YTD Since Inception
Open-End Asset Allocation Fund 656 111.2462 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 2.00% 2.50% None October 10, 2011 30% MSCI World Index +70% 6-month T-Bills Mon - Fri 04:00 PM AM3+
LAADMF Benchmark 10.69% 0.61% 1.86% 2.80% 6.29% 12.10% 5.29% 17.79%
13.50% 0.49% 1.91% 3.19% 7.50% 16.38% 6.17% 25.28%
T-Bills 68%
LAADMF vs. Benchmark 125.00
120.00
Asset Allocation
115.00
Instruments
Mar-13 Apr-13 May-13 % of Total Assets 69% 70% 68% 29% 29% 29% 2% 1% 2%
Government Securities (T-Bills) Developed Markets (DM) Equities Cash
110.00
105.00
100.00 Dec-11 Feb-12
Apr-12
Jun-12
Aug-12
Oct-12 Dec-12 Feb-13
Benchmark
Apr-13
LAADMF
MSCI World Index Composition (As of May-13) Country United States United Kingdom Japan Canada France
Weight 54.39% 9.16% 8.85% 4.31% 3.98%
Sectors Financials Information Technology Consumer Discretionary Health Care Industrials
Disclosures Leverage as on May 31, 2013 Non Performing Assets
Weight 20.65% 11.92% 11.82% 11.21% 11.06%
Investment Committee Babar Ali Lakhani Muhammad Umair Chauhan Mustafa O. Pasha Syed Imran Raza Kazmi Maryam Hidayatallah
Chairman
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. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily an indication of future results.
10
Lakson Outlook - May 2013
iShares MSCI World ETF (Developed Markets): Allocations
Type IDWR LN Equity DES and click on Allocations
iShares MSCI World ETF (Developed Markets): Holdings
Type IDWR LN Equity DES and click on Holdings
11
Lakson Outlook - May 2013
Lakson Asset Allocation Emerging Markets Fund
MUFAPs Recommended Format
Investment Objective The investment objective of the Lakson Asset Allocation Emerging Markets Fund is to provide longterm capital appreciation by investing in a mix of domestic debt and emerging market securities. Performance Review The Lakson Asset Allocation Emerging Markets Fund ("LAAEMF") declined by 1.04% in May '13 compared to the Benchmark (70% 6-month T-Bills + 30% MSCI Emerging Markets Index) decline of 0.30%. The LAAEMF underperformed the Benchmark by 74bps. The LAAEMF has appreciated by 12.87% since its inception. As of May 31, 2013 the LAAEMF has 27% exposure in Emerging Markets equities. The LAAEMF's 27% international exposure is in iShares MSCI Emerging Markets ETF which tracks the performance of the MSCI Emerging Markets Index. Emerging Markets equities lost the positive momentum gained during the earlier part of the year as the MSCI Emerging Markets Index declined by 2.9% during May '13. WWF Disclosure As of May 31, 2013 the LAAEMF has maintained provisions against Workers' Welfare Fund's liability to the tune of PKR 0.91 million. If the same were not made the NAV per unit of the LAAEMF would be higher by PKR 0.2291. If the LAAEMF would not have made the WWF provisions during FY13, the year to date return of the LAAEMF for FY13 would be higher by 0.13%. For details investors are advised to read the Note 7.1 of the latest Financial Statements (Quarterly Report as of March 31, 2013) of the LAAEMF.
Emerging Market Equities (iShare MSCI EM ETF)
Security
Asset Allocation
As of May-13
Cash 3%
% of ETF Assts
Samsung Electronics Co Ltd
4.05%
Taiwan Semiconductor Manufacturing Co Ltd 2.41% China Mobile Ltd
EM Equities 27%
1.72%
China Construction Bank Corp
1.57%
Industrial & Commercial Bank of China Ltd
1.24%
Gazprom OAO
1.11%
Tencent Holdings Ltd.
1.09%
Petrobras - Petroleo Bras
1.06%
America Movil SAB de CV
1.05%
Itau Unibanco Holdings
1.02%
T-Bills 69%
Fund Facts Fund Type Category Net Assets (PKR Mil.) NAV (31.05.2013) Pricing Mechanism Trustee Auditor Management Fee Front End Load Back End Load Launch Date
Dealing Days Cut-Off Time Asset Manager Rating
Open-End Asset Allocation Fund 426 106.6709 Forward Day CDC Pakistan Limited BDO Ebrahim & Co. 2.00% 2.50% None October 10, 2011 30% MSCI Emerging Markets Index +70% 6-month T-Bills Mon - Fri 04:00 PM AM3+
Fund Performance
LAAEMF Benchmark
Benchmark
FY13 - YTD May-13 2 Months 3 Months 6 Months 12 Months CY13 - YTD Since Inception
6.25% -1.04% -0.40% -0.31% 2.09% 7.67% -0.22% 12.87%
9.91% -0.30% 0.37% 0.46% 3.92% 12.07% 1.80% 20.22%
LAAEMF vs. Benchmark 120.00
Asset Allocation Instruments Government Securities (T-Bills) Emerging Markets (EM) Equities Cash
116.00
Mar-13 Apr-13 May-13 % of Total Assets 70% 71% 69% 28% 28% 27% 2% 1% 3%
112.00 108.00 104.00 100.00 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Benchmark
LAAEMF
VWO Composition (As of May - 13) Country Exposure China South Korea Brazil Taiwan South Africa
17.83% 14.84% 12.07% 11.47% 6.72%
Sectors Allocations Financials Information Technology Energy Materials Consumer Staples
Disclosures Leverage as on May 31, 2013 Non Performing Assets
27.37% 14.62% 11.51% 9.85% 9.38%
Investment Committee Babar Ali Lakhani Muhammad Umair Chauhan Mustafa O. Pasha Syed Imran Raza Kazmi Maryam Hidayatallah
Chairman
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. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily an indication of future results.
12
Lakson Outlook - May 2013
iShares MSCI Emerging Markets ETF: Allocations
Type EEM US Equity DES and click on Allocations
iShares MSCI Emerging Markets ETF: Holdings
Type EEM US Equity DES and click on Holdings
13
Lakson Outlook - May 2013
Mutual Funds Performance Comparison Position as of June 03, 2013 Income Funds ABL Income Fund Atlas Income Fund Faysal Savings Growth Fund First Habib Income Fund HBL Income Fund IGI Income Fund JS Income Fund Lakson Income Fund MCB Dynamic Cash Fund NAFA Financial Sector Income Fund NAFA Income Fund NAFA Income Opportunity Fund NAFA Saving Plus Fund NIT - Income Fund Pakistan Income Fund PICIC Income Fund UBL Savings Income Fund
Annualized Returns (%) 30 Days 7.36 4.27 7.53 6.01 4.27 10.30 7.67 7.69 7.56 8.42 10.06 8.19 7.53 6.42 8.52 8.17 7.45
90 Days 7.63 6.85 7.44 6.81 6.76 9.13 7.91 8.38 8.32 8.50 9.00 12.41 7.80 7.26 9.59 8.07 7.73
180 Days 7.47 7.36 7.55 9.16 .55 9.13 9.09 8.47 8.24 8.70 4.04 15.44 7.95 7.91 7.59 8.05 7.64
270 Days 8.65 9.44 7.89 9.14 6.86 9.92 9.54 9.06 9.29 9.16 4.96 9.52 8.30 8.93 7.16 8.65 8.16
365 Days 9.86 9.74 8.80 9.56 7.90 9.74 10.95 9.62 9.77 9.85 5.78 8.94 8.90 9.69 7.52 9.75 9.48
7.65 8.25 7.63 7.61 7.58 7.90 8.00 7.54 7.60 8.08 7.93 8.15 7.62 7.83 7.57 7.99 7.68 7.87 7.45 9.43 7.50
7.83 8.43 7.74 7.76 7.72 7.90 7.98 7.73 7.84 8.15 7.91 8.12 7.59 7.88 7.62 7.91 8.03 7.84 7.52 9.06 7.60
7.89 8.52 7.88 7.87 7.80 7.95 8.04 7.85 8.09 8.25 7.90 8.22 7.67 8.00 7.62 7.97 8.04 7.86 7.79 N/A 7.74
8.39 8.82 8.33 8.46 8.21 8.46 8.46 8.27 8.57 8.71 8.30 8.65 8.12 8.46 8.00 8.45 8.40 8.36 8.21 N/A 8.18
9.10 9.65 9.20 9.39 9.16 9.31 9.15 9.18 9.45 9.59 9.27 9.36 8.95 9.21 8.75 9.27 8.81 9.19 N/A N/A 9.11
6.77 (15.92) 7.59 17.65 7.50 10.16 7.44 11.51 9.93
9.24 3.96 10.37 12.15 8.10 10.67 14.74 12.68 13.60
8.61 9.36 10.43 10.69 8.50 9.47 12.76 11.03 16.16
5.70 10.84 0.71 14.09 9.08 9.42 N/A 8.60 12.67
6.95 7.99 (0.65) 16.18 9.47 10.75 16.32 7.13 10.27
Money Market Funds ABL Cash Fund* AKD Cash Fund* Alfalah GHP Cash Fund* Askari Sovereign Cash Fund* Atlas Money Market Fund* BMA Empress Cash Fund* Faysal Money Market Fund* First Habib Cash Fund* HBL Money Market Fund* IGI Money Market Fund* JS Cash Fund KASB 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* Primus Cash Fund* Primus Daily Reserve Fund* UBL Liquidity Plus Fund
Aggressive Income Funds AKD Aggressive Income Fund Alfalah GHP Income Multiplier Fund Askari High Yield Scheme BMA Chundrigar Road Saving Fund Faysal Income & Growth Fund IGI Aggressive Income Fund KASB Income Opportunity Fund Pakistan Income Enhancement Fund United Growth & Income Fund
*These money market funds are providing liability related to Workers Welfare Fund N/A = Not Available
Source: MUFAP
14
Lakson Outlook - May 2013
Mutual Funds Performance Comparison Position as of June 03, 2013 Equity Funds ABL Stock Fund AKD Opportunity Fund Alfalah GHP Alpha Fund Askari Equity Fund Atlas Stock Market Fund First Habib Stock Fund HBL Stock Fund IGI Stock Fund JS Large Cap Fund Lakson Equity Fund MCB Dynamic Stock Fund NAFA Stock Fund National Investment Unit Trust Pakistan Premier Fund Pakistan Stock Market Fund Pakistan Strategic Allocation Fund PICIC Stock Fund United Stock Advantage Fund
Absolute Returns (%) 30 Days 15.03 12.21 14.24 12.73 14.67 9.80 13.86 14.29 12.08 8.77 13.16 14.60 13.37 13.56 13.64 10.83 14.54 13.96
90 Days 21.45 33.19 17.72 17.24 15.89 15.09 14.74 17.33 16.22 11.89 16.33 17.76 23.64 16.58 16.73 13.00 20.28 19.62
180 Days 36.71 39.48 27.22 25.73 29.16 25.19 28.46 40.38 32.10 20.02 28.39 27.30 28.29 28.42 28.80 25.05 28.42 29.47
270 Days 42.77 55.66 31.06 32.88 36.17 28.47 33.50 47.91 41.51 26.50 36.83 35.41 40.44 35.55 36.44 31.59 34.88 36.64
365 Days 57.76 75.27 40.52 41.17 53.82 36.71 46.73 65.16 51.98 38.91 55.97 53.68 56.98 54.26 54.13 40.43 49.11 50.98
Balanced Funds Faysal Balanced Growth Fund
7.61
8.75
11.83
13.92
9.70
HBL Multi Asset Fund
10.30
12.11
22.60
27.48
38.28
NAFA Multi Asset Fund
9.54
13.27
20.83
22.65
32.78
Pakistan Capital Market Fund
8.69
11.14
17.62
22.43
31.68
Unit Trust of Pakistan
9.46
12.52
23.61
30.35
40.63
Alfalah GHP Value Fund
11.45
12.40
22.31
24.86`
31.79
Askari Asset Allocation Fund
9.99
13.98
20.33
28.20
38.29
Faysal Asset Allocation Fund
10.62
12.34
12.73
11.36
11.65
JS Aggressive Asset Allocation
5.84
7.88
14.52
15.47
24.71
KASB Asset Allocation Fund
3.91
5.18
15.22
17.55
25.10 12.10
Asset Allocation Funds
Lakson Asset Allocation Developed Markets Fund
0.61
2.90
6.29
8.65
Lakson Asset Allocation Emerging Markets Fund
(1.04)
(0.40)
2.09
4.92
7.67
Lakson Asset Allocation Global Commodities Fund
0.13
(0.11)
(0.29)
0.79
4.73
MCB Dynamic Allocation Fund
2.83
4.69
8.26
12.81
20.27
NAFA Asset Allocation Fund
9.65
10.88
20.11
21.47
31.53
Pak Oman Advantage Asset Allocation Fund
7.38
8.06
17.53
24.24
30.64
ABL AMC Capital Protected Fund
(0.66)
0.93
3.88
7.83
11.77
IGI Capital Protected Fund
0.64
0.62
2.88
4.55
4.37
Capital Protected Funds
N/A = Not Available
Source: MUFAP
15
Lakson Outlook - May 2013
Markets Information Equities Total Return in PKR and % Markets
Index
YTD-CY13 3-mo
World
MSCI All Country World Index
8.1%
Developed
MSCI World Index
10.0%
Emerging
MSCI Emerging Markets Index
-4.4%
Total Return in USD and %
1-yr
5-yr
YTD-CY13 3-mo
3.6%
23.2%
13.3%
8.1%
4.8%
25.0%
15.4%
10.0%
-4.3%
11.3%
-0.2%
-4.4%
1-yr
5-yr
3.6%
23.2%
-5.3%
4.8%
25.0%
-3.5%
-4.3%
11.3%
-16.6% -23.6%
Europe
MSCI Europe Index
5.3%
2.6%
30.7%
-8.6%
5.3%
2.6%
30.7%
China
CSI 300
3.3%
-2.5%
-1.0%
-13.6%
3.3%
-2.5%
-1.0%
-27.8%
Dubai
DFM
45.9%
22.8%
60.8%
-50.1%
45.9%
22.8%
60.8%
-58.3%
India
BSE Sensex 30
1.7%
4.8%
21.8%
44.0%
1.7%
4.8%
21.8%
20.4%
Japan
Nikkei 225
32.5%
19.2%
61.2%
14.9%
32.5%
19.2%
61.2%
-3.9%
Malaysia
FTSE Bursa
4.8%
8.0%
11.9%
65.9%
4.8%
8.0%
11.9%
38.6%
Pakistan
KSE 100
29.1%
20.1%
58.3%
79.9%
29.1%
20.1%
58.3%
50.4%
Sri Lanka
Colombo All Share
14.5%
14.7%
33.8%
203.6%
14.5%
14.7%
33.8%
153.8%
UK
FTSE 100
11.6%
3.5%
23.7%
30.1%
11.6%
3.5%
23.7%
8.7%
US
DJIA
15.3%
7.5%
22.0%
43.1%
15.3%
7.5%
22.0%
19.6%
US
S&P 500
14.3%
7.7%
24.5%
39.3%
14.3%
7.7%
24.5%
16.4%
US
NASDAQ 100
12.1%
8.9%
18.1%
75.5%
12.1%
8.9%
18.1%
46.7%
Germany
DAX Index
9.7%
7.8%
33.3%
40.8%
9.7%
7.8%
33.3%
17.6%
CANADA
TSX 300 Composite Index
1.7%
-1.3%
9.9%
2.9%
1.7%
-1.3%
9.9%
-14.0%
France
CAC - 40
Brazil
Sao Paulo SE Bovespa Index
8.4%
6.1%
30.9%
-5.8%
8.4%
6.1%
30.9%
-21.3%
-12.2%
-6.8%
-1.8%
-11.8%
-12.2%
-6.8%
-1.8%
-26.3%
Korea
Korea SE Kospi
0.2%
-1.3%
8.5%
29.3%
0.2%
-1.3%
8.5%
8.0%
Taiwan
Taiwan SE Weighted Index
7.2%
4.5%
13.1%
14.6%
7.2%
4.5%
13.1%
-4.2%
Automobile and Parts
51.4%
25.0%
62.1%
41.1%
51.4%
25.0%
62.1%
17.9%
Banks
15.1%
13.6%
31.2%
-24.2%
15.1%
13.6%
31.2%
-36.6%
-30%
-5%
20%
45%
70%
KSE Sectors
Chemicals
12.1%
7.5%
15.0%
43.5%
12.1%
7.5%
15.0%
19.9%
Construction and Materials
36.8%
23.1%
87.4%
90.6%
36.8%
23.1%
87.4%
59.3%
Electricity
37.3%
21.7%
65.5%
85.1%
37.3%
21.7%
65.5%
54.7%
Fixed Line Telecommunication
29.6%
-2.1%
52.1%
-46.4%
29.6%
-2.1%
52.1%
-55.2%
Food Producers
39.2%
29.3%
85.3%
360.6%
39.2%
29.3%
85.3%
285.0%
Non Life Insurance
16.4%
12.3%
37.2%
-46.4%
16.4%
12.3%
37.2%
-55.2%
Oil and Gas
25.0%
19.1%
48.5%
58.9%
25.0%
19.1%
48.5%
32.8%
Personal Goods
23.9%
18.1%
86.9%
62.9%
23.9%
18.1%
86.9%
36.2%
YTD 3-mo
Fixed Income Current Interbank Rates on Money Market
1M
3M
6M
12M
Historic 6-month Interbank Rates YTD-CY13 3-mo
1-yr
2-yr
China
SHIBOR
3.26%
3.88%
4.10%
4.40%
4.46%
4.10%
4.15%
4.71%
Dubai
UAE IBOR
0.60%
1.00%
1.22%
1.38%
1.55%
1.31%
1.47%
1.60%
India
MIBOR
8.12%
8.48%
N.A.
N.A.
Japan
TIBOR
0.15%
0.23%
0.33%
0.34%
Malaysia
KLIBOR
3.10%
3.21%
3.25%
Pakistan
KIBOR
9.67%
9.57%
9.62%
Sri Lanka
SLIBOR
11.46%
12.60%
UK
LIBOR
0.49%
US
SIBOR
0.20%
10.00% 9.75%
0.41%
0.42%
9.50%
0.34%
3.36%
3.25%
3.25%
3.25%
3.27%
9.94%
10.73%
9.57%
10.16%
11.46%
9.00%
13.01%
13.43%
12.80%
13.26%
13.54%
11.51%
8.75%
0.51%
0.59%
0.88%
0.97%
0.60%
0.79%
1.04%
8.50%
0.28%
0.43%
0.70%
0.63%
0.44%
0.57%
0.60%
9.25%
Interbank May-13 1W
Historic 12-Month Paper Rates
3M
12M
5Y
10Y
China
2.64%
2.79%
3.19%
3.44%
2.70%
India
7.52%
7.45%
7.53%
7.71%
8.05%
Japan
0.09%
0.09%
0.23%
0.60%
Malaysia
3.02%
3.02%
3.10%
3.33%
Pakistan
9.37%
9.46%
10.96%
Sri Lanka
9.20%
11.24%
UK
0.40%
0.27%
US
0.04%
0.10%
16
10.25%
0.42%
Current Market Yields on Government Securities
Govt. Securities vs. KIBOR
10.50%
YTD-CY13 3-mo
1M
3M
Govt. Sec. May-13 6M
1Y
2Y
12M Yields of Government Securities
1-yr
2-yr
2.72%
2.67%
2.87%
7.69%
7.93%
8.16%
0.09%
0.06%
0.09%
0.10%
3.03%
3.03%
3.03%
3.02%
Pakistan
11.79%
10.64%
9.52%
10.07%
11.32%
Sri Lanka
11.41%
11.93%
11.76%
11.15%
12.18%
10.49%
UK
0.76%
1.79%
0.30%
0.22%
0.26%
0.37%
US
0.74%
1.78%
0.15%
0.12%
0.15%
0.14%
China India Japan Malaysia
0%
3%
6%
Lakson Outlook - May 2013
9%
12%
Markets Information Commodities Total Return Commodity
Unit
YTD-CY13 3-mo
1-yr
Current Prices 5-yr
DB Commodity Index
USD Excess Return
-6.0%
-4.2%
3.6%
-34.2%
515.8
S&P Global Commodity Index
USD Total Return
-5.6%
-5.4%
3.0%
-52.3%
4613.6
Dow Jones UBS Commodity Index
USD Total Return
-6.0%
-4.3%
1.8%
-38.2%
262.9
Coal
USD/Tonne
-6.5%
-6.9%
-4.1%
N.A
87.7
Copper
USc/lbs
-9.9%
-6.7%
-2.2%
-8.7%
329.3
Cotton
USc/lbs
5.6%
-5.0%
10.9%
20.7%
79.4
Gold
USD/t oz.
-16.9%
-11.8%
-10.9%
56.9%
1392.6
Palm Oil
USD/Tonne
0.4%
-0.7%
-21.1%
-29.9%
762.8
Sugar
USc/lbs
-15.2%
-10.0%
-14.8%
65.2%
16.6
Wheat
USD/Bushel (60Ibs)
-9.3%
-0.3%
9.6%
-7.4%
7.1
WTI
USD/bbl
0.2%
-0.1%
6.3%
-27.8%
92.0
Brent Crude
USD/bbl
-9.6%
-9.9%
-1.5%
-21.4%
100.4
Heating Oil
USd/Gallon
-8.3%
-6.1%
3.2%
N.A
279.2 2.8
RBOB Gasoline
USD/Gallon
-1.2%
-4.7%
-1.6%
-18.5%
Natural Gas
USD/MMBTU
18.9%
14.3%
64.5%
-66.0%
4.0
Silver
USD/t Ozs
-26.3%
-21.7%
-19.9%
31.9%
22.2
DBCI
SPGSCI
DJUBS
115
105
95
85
75 May-12
Jul-12
Sep-12
Nov-12
Jan-13
Mar-13
May-13
Currencies Change Versus PKR in %
Current Exchange Rates
YTD-CY13
3-mo
1-yr
5-yr
170
Canadian Dollar
CAD
0.00%
0.00%
0.00%
-5.82%
CAD - PKR
63.10
Euro
EUR
0.00%
0.00%
0.00%
0.66%
EUR - PKR
104.20
Indian Rupee
INR
0.00%
0.00%
0.00%
2.73%
INR - PKR
1.6102
Japanese Yen
JPY
0.00%
0.00%
-1.58%
110.16%
JPY - PKR
1.1769
110
Pound Sterling
GBP
0.00%
0.00%
0.00%
-13.48%
GBP - PKR
114.13
90
Singaporian Dollar
SGD
0.00%
0.00%
0.00%
8.18%
SGD - PKR
52.85
US Dollar
USD
0.00%
0.00%
0.00%
19.65%
USD - PKR
79.63
17
GBP
EUR
CAD
USD
150 130
70 Apr-12
Jun-12
Jul-12 Sep-12
Oct-12 Dec-12 Jan-13 Mar-13
Lakson Outlook - May 2013
Notes
18
Lakson Outlook - May 2013
Disclaimer 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.
Transaction Locations: Islamabad: Contact Person: 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: Contact Person: Mr.Tassawar - Branch Manager 14 Ali Block, 1st Floor New Garden Town, Lahore. Tel: 042.591.1025/26 Rawalpindi: Contact Person: Mr. Tariq Aziz - Branch Manager Suite No.3, 1 st Floor, Majeed Plaza Bank Road, Rawalpindi Tel: 051.551.2251/52 Fax: 051.511.0996 Faisalabad: Contact Person: Mr. Shahbaz Choudhry - Branch Manager 1 st Floor, FM Plaza 15-D, Peoples Colony, Faisalabad Tel: 041.324.1704/07 Fax: 041.855.4453 Sialkot: Contact Person: Mr. Nisar Bhatti - Branch Manager 1 st Floor, Karim Plaza Iqbal Town, Defence Road, Sialkot Tel: 052.324.1704/07 Fax: 052.324.1703
19
Lakson Outlook - May 2013
1954
DECADES OF SEASONED INVESTMENT
Tritex Cotton
Century Insurance
Merit Packaging Limited
Century Paper & Board Mills
Hassan Ali Karabhai Foundation
Lakson Investments Limited. Lakson Square, Building No. 2, Sarwar Shaheed Road, Karachi-74200, Pakistan
UAN T F E
+92.21 111 Lakson +92.21 3569.8000 +92.21 3568.1653
[email protected] www.li.com.pk
