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Company’s MessageFund Manager’s Report - December 2014

Economic Snapshot

Key

Econ

omic

Indi

cato

rs

Equity Market Review

Money Market ReviewYear 2014 came to an end with notable economic reforms despite prevalence of adverse political situation. The year was marked with re-initiation of Government’s privatization process, commence-ment of previously delayed 3G/4G spectrum auction, issuance of Bond and sukuk in international markets, sharp decline in oil prices, decline in CPI in�ation, initiation of monetary easing by central bank and foreign exchange reserves of the country. The foreign investors showed their enormous con�dence in above mentioned international transactions and furthermore, IMF has also showed its satisfaction over reform agenda of the country.Foreign exchange reserves of the country have reached to the level of USD 15mn as compared to USD 8.3mn in CY13 implying satisfactory import cover for the country. Local currency appreciated by 5% during the year due growth in foreign reserves. CPI in�ation clocked in at 4.3% in the month of December as compared to 4% in November, with sharpest decline of 1% on MoM basis in past twelve months. CPI was recorded at 6.1% for the period 1HFY15, as compared to 8.9% in the corresponding period last year. Key reason for soft CPI numbers is lower food prices and Oil prices, which plunged by ~50% during the year due to higher shale oil production in US and spike in overall supply of the commodity. The impact of decline is visible in in�ation but its impact on external account is yet to be re�ected as oil import bill forms the major chunk of external account. Current account de�cit of the country widened by 8.8% during 5MFY15 and stood at USD 2.34bn as opposed to USD 2.15bn in the corresponding period, where as overall balance of external account clocked in at USD 901mn during 5MFY15 as compared to USD 2.06bn in corresponding period last year. We expect the surplus to rise in the month of December. Due to soft CPI numbers and better macroeconomic circumstances, SBP announced a cut 50bps in policy rate in the month of November. We expect further monetary easing during 2HFY15 on the back of lower CPI and declining oil prices.We expect macroeconomic picture to get better in CY15 on many fronts, �rstly liquidity of the economy is improving owing to better foreign in�ows, lower import bill and declining budgetary borrowing, secondly expected monetary easing will likely boost the economic growth. Apart from that continuation of reform agenda by the government will pave the way to recovery of �scal balances and economic growth.

SBP conducted two t-bill auctions during the month. Target for the �rst auction held on December 10, was PKR 100bn, against which the SBP generated PKR 73.60bn. Cut o�yields for 3 month, 6 month and 1 year were 9.4568%, 9.4940% and 9.4951% respectively. Target for the second auction held on December 24th, was PKR 75bn, against which the government raised 50.15bn. Cut o� yields for 3 month and 6 month and 1 year were 9.4789%, 9.4801% and 9.4731 respectively.SBP also conducted PIB auction on December 17th, in which the government borrowed PKR 148.28bn against the target of PKR 50bn. Cut o� yield set for 3yr, 5yr and 10yr PIBs were 10.5979%, 10.7994% and 11.7049% respectively.

KSE-100 index continued its buoyant performance in CY14 by yielding a return of 27% after earning 49% each in CY13 & CY12. Though the market remained volatile due to many politically hyped situations as well as some unfavorable steps introduced in budget for FY15, the improvement on macroeconomic reforms kept the market upbeat. After earning 27% return, the index became third best performing market in the world and second best performing in the region (after China). Reasons for high volatility in the market were 1) imposition of 5% advance tax on dividends, 5% tax on bonus shares & imposition of alternate corporate tax of 17% introduced in Budget for FY15 2) protests held by opposition parties and 3) commencement of military operations against terrorists (Operation Zarb-e-Azb). However, despite theses negatives market performance soared ahead of economic reforms initiated by the government including privatization of SOEs, issuance of bond & sukuk in international market. Apart from that sharp decline in oil prices also impacted positively on the country’s economy.During the month of December the index registered a growth of 3%. Positives during the month were further decline in oil prices and approval and release of two loan tranches worth USD 1.05bn by IMF during the month. Foreigners remained net sellers of USD 49.5mn during the month, where major selling was witnessed in chemicals & oil & gas sectors. On cumulative basis, net in�ow of FIPI for the period CY14 stood at USD 384.65mn close to last year’s foreign investment of USD 393.39mn. Outlook for performance of market in CY15 seems to be positive as macroeconomic situation is getting better ahead of building forex reserves, declining oil prices, lower in�ation resulting in easing monetary policy. SBP may announce another cut in the upcoming monetary policy on the back of softening CPI in�ation. All this along with high earning expectations of the corporates due to plunging costs and improving margins bode well for the equity market in the year CY15.

Global stocks �nished the year with solid gains, but not without wild gyrations along the way. Pakistan’s capital market was no exception and despite tension on the political front and fragile security situation in the country, 2014 proved to be a year of growth and exuberance for the Capital market of the Country with KSE Index generating a handsome return of 27%.This may be a prelude to what’s to come, as we expect more episodes of volatility as we enter the New Year. Stocks may not march upward in a straight line, but they should continue to do relatively well in 2015 and better than �xed income and cash. The fact that our economy is entering 2015 with strong momentum should help company earnings growth, allowing stocks to move higher this year. And while valuations are not cheap, they are supported by low in�ation and declining interest rates. But on top of that, investors will continue to wrestle with several lingering domestic political and security issues as well as geopolitical issues, particularly with respect to Russia.Higher volatility in 2015 might tempt some investors to head for the exits. But avoiding the markets can cost you over time. For the most part, investors hold cash out of an abundance of caution. Truth be told, all investing requires trade-o�s. Even cash comes with a few: It won’t �uctuate in value like stocks and �xed income, but in an environment like today, it historically has provided negative returns when you factor in in�ation and taxes. With that in mind, get o� the sidelines and put your cash to workOn the international front, Oil prices are now down roughly 45% year-to-date. Lower oil prices will help mitigate the global slowdown, but plunging oil prices are in�icting real harm on several countries, notably Venezuela and Russia. Lowered prices in the international energy markets have positive aspects for the European consumers, who pay less for the fuel, but the e�ect will be only short-term. In the long-term however the weaker economic situation in countries producing energy resources, caused by lower oil and gas prices, mostly in Russia, is extremely unpro�table for Europe. For Example: The lowering of the oil and gas prices in combination with the sanctions, pushed by the Ukrainian crisis, will drop the Russian GDP by �ve percent per annum, and thus it will cause cutting of the Italian export by about 50%.Setting aside the uselessness or imminence of the sanctions, one should highlight a clear skew: regardless of the ruble rate against dollar, which is lower by almost a half, the American export to Russia is growing, while the export from Europe is shrinking. Russia has presented a startling proposal to overcome the tensions with the EU: The EU should renounce the free trade agreement with the United States and enter into a partnership with the newly established Eurasian Economic Union instead. A free trade zone with the neighbors would make more sense than a deal with the US. The treaty establishing the Eurasian Union entered into life on Thursday (1 January). It includes Armenia, Belarus, Kazakhstan, and Russia, with Kyrgyzstan to join in May. Piecing it all together, we begin the year with a few key recommendations. Prefer stocks over bonds and put your cash to work, but be selective, you’ll have to be even pickier about the stocks you select and also expand your investment horizon. Prepare for volatility and focus on assets where value o�ers some down-side protection; �nally, seek growth potential in select sectors and scrip. The silver lining – volatility means down and up, stock market pullbacks could create buying opportunities for long term investors.We believe it’s our responsibility to help investors of all sizes, to succeed in the New World of Investing. We were built to provide the global market insight, breadth of capabilities, unbiased investment advice and deep risk management expertise these times require. Investing with PRIMUS gives you access to every asset class and investment style, as well as extensive market intelligence and risk analysis, to help build the dynamic, diverse portfolios �exible with the chang-ing times.When you invest with PRIMUS, you invest with con�dence. We believe in a disciplined and methodical approach to investing. It is the foundation of everything we do and the best way to create long term value for investors. PRIMUS is one of the top mutual fund companies in Pakistan whose strength and credibility have made it one of the most respected �nancial institutions.We will do our best to re�ect all this in positioning the savings and investments you have entrusted to us to manage. We will be emphasizing the importance of economic growth and work very hard to identify opportunities that remain attractive. We will seek to navigate this environment for you by maintaining a higher degree of operational agility and a solid dose of resilience.Thank you for the trust you have placed in us. We value your con�dence, and will continue to work diligently to meet your expectations. If you have any query regarding any of your PRIMUS funds investments please contact your account manager at 0092-213-529-0006. We also invite you to visit our website www.prim-usinvestments.com to learn more about our fund, views and thought leadership.

Dec-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14External Sector IndicatorsOverall Balance of Payments USD million 211 916 1,049 2200 1,398 507 348 379 -394 308 258 n.aCurrent Account Balance USD million 285 164 (156) (111) (57) -89 -773 -560 -79 -223 -475 n.aExports USD million 2,327 2,074 2,152 4,197 2,088 2097 1900 1886 2195 2090 1892 n.aImports USD million 3,593 3,136 3,382 3,278 3,591 3317 4002 3906 4002 3528 3042 n.aWorker's Remittances USD million 1384 1,210 1,337 1,216 1,438 1166 1649 1329 1717 1383 1321 n.aForeign Direct Investment USD million 90 79.2 63.5 81.1 610.9 188.6 24 63 82 254 21 n.aForeign Portfolio Investment USD million 18 1.1 -5.4 2,115 122 403 67 19 56 5 36 n.aForex Reserves USD billion 8.31 8.74 10.07 12.18 13.47 13.57 14.30 13.58 13.51 13.44 13.21 14.94Exchange Rate against PKRUSD Month Avg. 105.32 105.39 99.97 98.79 98.59 98.75 98.65 101.86 102.63 102.82 101.88 100.55Inflation IndicatorsGeneral CPI YoY change 10.9% 7.9% 8.5% 9.2% 8.3% 8.2% 7.9% 7.0% 7.7% 5.8% 4.0% 4.3%Food CPI YoY change 13.0% 7.6% 9.3% 9.9% 7.4% 7.4% 7.0% 5.6% 7.2% 5.2% 2.1% 3.4%Core (NFNE) YoY change 8.5% 7.8% 7.6% 8.5% 8.7% 8.7% 8.3% 7.9% 8.0% 7.8% 6.9% 6.7%Core (Trimmed) YoY change 9.2% 8.1% 8.1% 9.0% 8.3% 7.9% 7.6% 7.1% 7.1% 6.0% 5.3% 5.2%Monetary GrowthBroad Money (M2) YoY growth 14.1% 12.9% 11.9% 12.7% 11.5% 12.3% 15.6% 10.6% 10.0% 11.2% 9.8% 10.2%GoP's Borrowing from SBP YoY growth 74.2% 64.2% 35.1% 32.2% 7.7% 19.2% 14.5% -12.3% -24.6% - -23.7% -32.9%Pvt. Sector Credit YoY growth 4.8% 4.4% 4.0% 5.3% 8.1% 7.9% -0.8% 11.6% 11.2% - 9.9% 7.9%Interest RatesSBP Policy Rate Current 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 9.50% 9.50%6 Month KIBOR Month Avg. 9.78% 10.13% 10.18% 10.20% 10.17% 10.17% 10.17% 10.18% 10.18% 10.19% 9.86% 9.65%12 Month KIBOR Month Avg. 10.19% 10.43% 10.47% 10.45% 10.44% 10.45% 10.45% 10.48% 10.50% 10.50% 10.14% 9.95%3 Month T-Bill Yield Month Avg. 9.90% 9.95% 10.01% 9.97% 9.96% 9.95% 9.94% 9.96% 9.95% 9.94% 9.64% 9.48%6 Month T-Bill Yield Month Avg. 9.98% 9.97% 10.00% 9.98% 9.98% 10.00% 10.00% 10.01% 10.01% 9.97% 9.64% 9.48%12 Month T-Bill Yield Month Avg. - 9.99% 10.00% 10.00% 10.01% 10.05% 10.06% 10.07% 10.07% 10.02% 9.68% 9.47%10 Year PIB Yield Month Avg. 12.87% 12.80% 12.81% 12.81% 12.85% 13.01% 13.10% 13.28% 13.39% 13.10% 11.84% 11.70%

Source: SBP, MoF, PBSn.a.=Not Available

Fund Manager’s Review

Portfolio Allocation (as % of total assets)Fund Objective

Fund Details

Investment Committee Members

Fund TypeCategoryFund Stability RatingBenchmark

Inception DateDealing DaysCut-o� TimePricing MechanismManagement FeeLoadRisk Pro�leListing

Trustee

AuditorLegal AdvisorFund Manager

Open End

Management Co. Rating AM3 by JCR-VIS

Money Market

Portfolio Allocation (as % of total assets)

Dec’14

Nov’14

Cash at BanksPlacements with DFIsPlacements with Banks

Total

T-Bills

Others including receivables

Dec‘1444.32%14.65%0.00%

100.00%

40.77%

0.26%

Credit Quality of Portfolio (as % of total assets)

AAA (Government Securities)AAAAA+

NR (Others including receivables)Total

Dec‘1440.77%43.60%15.26%

0.26%100.00%

AA 0.12%

Reverse Repo against Govt. Securities 0.00%

Nov‘1446.11%14.55%0.00%

100.00%

30.42%

0.53%

Nov‘1430.42%39.20%21.46%

0.53%100.00%

8.39%

8.39%

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

Ahmed AteeqRahaila AleemM. Ali KazmiSalman Kazmi

CEOCFO & Company SecretaryChief Investment O�cerFund Manager

Waqas Ahmad KhanAli Kamal

Head of RiskHead of Research

Fund StatisticsNet Asset (PKR mn)

WWF Disclosure

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

3,529.462104.8330

-0.8042Information RatioStandard Deviation ** Annualized

0.55460.390%

deposit rate of AA & above rated Banks

1st January 2013Daily (days when Banks are open for business)

4.00 pmForward0.45%0% (Front-end) 0% (Back-end)Low RiskIslamabad Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.

Mohsin Tayebaly & Co.Salman Kazmi

PIML Daily Reserve Fund generated an annualized return of 8.94% against the benchmark return of 8.60% in the outgoing month, outperforming the benchmark return by 34 basis points. Also the fund recorded 9.77% (November: 9.73%) return since inception outperforming the benchmark return by 1.37% (November: 1.34%).

The performance was mainly attributed by the gains in government securities. The exposure in T-bill was also increased from around 31% of net assets to 41% of net assets in the outgoing month. The placement with Banks and DFIs coupled with the cash at bank (at attractive rates), also supported the fund’s performance.

At the month end, net assets were recorded at 3.529 billion. The weighted average time to maturity of the portfolio is 30 days.

We intend to reposition the portfolio and increase exposure in government securities, seeking opportunities to accomplish higher returns.

The objective of the fund is to generate consistent returns with minimal risk by investing primarily in Government Securities, cash and near cash instru-ments

* Please note that WWF liability for PRIMUS Daily Reserve Fund till the close of �nancial year ended June 30, 2013 since inception will be borne by the management company *The scheme has maintained provision against Worker’s Welfare Fund’s liability to the tune of Rs.11,764,991, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.3494/ 0.66% enhancing the YTD return to 9.87% p.a”

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

Fund PerformanceSince Inception 9.77% 9.34% 8.40% 9.21% 8.71%

*Simple Annualized**Morning Star

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

PDRF* PDRF** Benchmark***

-

PDRFFYTD

-8.94% 9.31% 8.60%Dec-149.30% 9.71% 8.61%Nov-14 - -

BenchmarkFYTD

Fund Manager’s Report -December 2014PRIMUS Daily Reserve Fund

“MUFAP’s Recommended Format”


Placements with DFIs14.65%

T-Bills40.77%

Cash at Bank44.32%

Others including receivables (NR)

0.26%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%Benchmark PDRF

Placements with DFIs

14.55%

Reverse Repo against Govt.

Securities8.39%

T-Bills30.42%

Cash at Bank46.11%


0.53%


Portfolio Allocation (as % of total assets)Fund Objective

Fund Details


Fund TypeCategoryFund Stability Rating

Benchmark


Trustee


Open EndIncome Scheme


Placements with Banks

Cash at Bank

T-Bills

Total

Dec‘14

Dec‘14

Nov‘14

Dec‘14

0.00%

21.95%

2.27%Others including receivables (NR) 3.26%

100.00%


AAA (Government Securities) 54.27%

AA+ 13.42%

Total 100.00%

Placements with DFIs 11.70%

AA 0.01%

Others including receivables (NR) 3.26%

PIBs 51.99%TFCs / Sukuks 8.83%

AA- 8.59%A- 20.19%

AAA 0.26%

Nov‘14

Nov‘14

0.00%

1.79%

57.84%1.44%

100.00%

79.58%

11.09%

100.00%

9.46%

0.01%

1.44%

21.74%7.72%

7.72%0.00%

0.15%

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






Fund Statistics

WWF Disclosure

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

Weighted Average Maturity (days)Sharpe Ratio *

4,158.994108.74314.0917

Information RatioStandard Deviation ** Annualized

0.20941.933%

17th April 2014Daily (days when Banks are open for business)

4.00 pmForward1.00%0% (Front-end) 0% (Back-end)Low RiskKarachi Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.M.Yousuf Adil Saleem & Co. ‘Chartered Accountants’

Mohsin Tayebaly & Co.Salman Kazmi

The fund again outperformed the benchmark return massively. The fund reported extraordinary return of 24.58% for December 2014, outperforming the benchmark return by a substantial margin of 15.58%. Moreover the fund on FYTD basis, also outperformed the benchmark return by 7.62% (November: 5.70%) at 16.93% (November: 15.06%).The performance was mainly attributed by the accumulation in longer term government and debt securities. Furthermore, we increased our exposure in the high yielding assets in order to generate better returns. The exposure in PIB was increased by around 30% in the outgoing month. Also the exposure in TFC/Sukuk was increased by one percent at around 9% of net assets by addition of Standard Chartered TFC in the portfolio.At the month end, net assets were recorded at 4.159 billion where government securities constituted major allocation of around 55% (PIBs: 52.38% & T-bills: 2.29%). The portfolio duration of the fund is 941 days.We intend to remain vigilant and reposition the portfolio in accordance with the market, while maintaining greater exposure in the government securities, seeking opportunities to maximize the returns.

The objective of PIML - Income Fund (formerly Primus Cash Fund) is to gener-ate competitive returns by investing in short to long term debt instruments and securities.

The scheme has maintained provision against Worker’s Welfare Fund’s liability to the tune of Rs. 14,919,432, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.3901/ 0.71% enhancing the YTD return to 17.64% p.a”

Fund PerformanceSince Inception 11.11% 10.35% 9.36%



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

- -24.58% 27.55% 9.00%Dec-1417.45% 18.92% 9.14%Nov-14 - -

16.93% 9.31%

BenchmarkFYTD

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



Placements with DFIs11.70%

TFCs / Sukuks8.83%

PIBs51.99%

T-Bills2.27%

Cash at Bank 21.95%

Others including receivables (NR) 3.26%

Top 10 TFCs / Sukuks Holdings (as % of T.A.) Dec' 14 Nov' 14AKBL PPTFC-V 30-Sep-14 - 30-Sep-24 8.59% 7.72%SCBPL TFC 29-Jun-12 - 29-Jun-22 0.24% 0.00%

-15.0%-10.0%

-5.0%0.0%5.0%

10.0%15.0%20.0%25.0%30.0%

Benchmark PIF

Placements with DFIs

9.46%

TFCs / Sukuks7.72% PIBs

21.74%

T-Bills57.84%

Cash at Bank1.79%


1.44%

Dec‘14

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

Fund Performance

Since Inception 25.11% 28.25%**

4.86% 2.18%**Dec-145.15% 2.22%**Nov-14

*Absolute Returns**Weighted Average Returns

PSMAF* Benchmark14.49%

PSMAFFYTD

- -- -

7.12%

BenchmarkFYTD



Fund Objective

Fund Details




Trustee


Open EndBalanced Fund


Equity Securities

Others Including Receiveables (NR)Total

Total

Cash at Bank

Dec‘1464.60%

5.37%100.00%

17.58%

Dec‘14

Sector Allocation (as % of Total Assets)


AAA (Government Securities)AAA

NR (includes equity investments)

12.46%0.28%

69.96%100.00%

PIB 12.46%

AA & Above 15.22%AA- 2.07%

Nov‘1460.49%

9.05%100.00%

16.85%

Nov‘1413.62%

0.49%

69.54%100.00%

13.62%

10.11%6.25%

N/A


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


WWF Disclosure

NAV per Unit (PKR)Sharpe Ratio ^^

162.774119.750.7522

Treynor Ratio^^Standard Deviation *^^

3M PKRV yield used as Risk‐Free rate. ^^ The look back period is 250 working days (Since inception).* Annualized.**^R‐Square measures the correlation between the benchmark and the fund

0.0710Beta^^ 1.1027R-Square**^^^ 80.03%Value at Risk 1.08%

10.41%

23rd August 2013Daily (days when Banks are open for business)

4.00 pmForward2% p.a.2% (Front-end) 0% (Back-end)Moderate to HighKarachi Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.

Mohsin Tayebaly & Co.M. Samir Malik, CFA

The Fund generated a return of 4.86% compared to its benchmark return of 2.18% for the month of December, outperforming its benchmark for the month by 269 bps. Due to the recent decline in oil prices and for the best interest of our investors, we reduced our exposure in the Oil & Gas Sector and increased our investments in the Textile and Cement Manufacturing Sectors. The Fund exposure in equities increased from 62.24% of net assets to 65.33% of net assets in the outgoing month.

The objective of PIML-SMAF, an open-end balanced scheme, is o�ering retail and institutional clients a product that aims to maximize return and minimize risk. For this purpose, a balanced portfolio is created that has an optimal mix of equity, debt securities and commodity.

The scheme has maintained provision against Worker’s Welfare Fund’s liability to the tune of Rs. 451,752 if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.3324 / 0.28% enhancing the YTD return to 14.77% p.a”

Fund Manager’s Report - December 2014Strategic Multi Asset Fund


KSE 100 index, 3 month PKRV and Daily Closing Pakistan Rupee Spot Gold Prices at the Pakistan Mercantile Exchange Limited (PMEX) based on the weighted average exposure of the scheme to eqquity, debt and gold future contracts during the period under review

Equity Securities64.60%

PIB12.46%

Cash at Bank17.58%


5.37%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

Aug-

13

Sep-

13

Oct-1

3

Nov-

13

Dec-

13

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov-

14

Dec-

14

Benchmark PSMAF

Sector Allocation (as % of T.A.) Dec '14 Nov '14Const. & Materials (Cement) 22.20% 18.13%Oil and Gas 7.10% 9.40%Comm. Banks 11.34% 10.83%Electricity 10.05% 9.92%Automobile and Parts 4.49% 4.25%Personal Goods (Textile) 3.03% 2.93%Chemicals 2.56% 1.98%Pharma & Bio Tech 0.93% 1.08%Non Life Insurance 0.90% 0.95%Household Goods 1.99% 1.03%Total 64.60% 60.49%

Top 10 Equity Holdings (as % of T.A.) Dec '14D.G. Khan Cement Co. Ltd. DGKC 7.39%Pakistan State Oil Co. Ltd. PSO 6.96%Kot Addu Power Co. Ltd. KAPCO 4.80%Fauji Cement Co. Ltd. FCCL 3.92%Pak Suzuki Motor Co. Ltd. PSMC 3.61%National Bank of Pakistan NBP 3.38%Lucky Cement Ltd. LUCK 3.34%Maple Leaf Cement Factory Ltd. MLCF 3.09%Nishat Chunian Power Ltd. NCPL 3.01%United Bank Ltd. UBL 2.93%

Fund Manager’s ReviewThe Fund generated a return of 3.11% compared to its benchmark return of 1.90% for the month of December, outperforming its benchmark for the month by 120 bps. Due to the recent decline in oil prices and for the best interest of our investors, we reduced our exposure in the Oil & Gas Sector and increased our exposure in the sectors which would bene�t from falling oil prices. The Fund exposure in equities increased from 81.84% of net assets to 86.96% of net assets in the outgoing month.

Fund Manager’s Report - December 2014Islamic Equity Fund

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

Fund Objective

Fund Details




Trustee


Open EndIslamic Equity Scheme


Equity Securities

Others Including ReceiveablesTotal

Total

Cash at Bank

Shariah Compliant Govt. Securities

Sector Allocation (as % of Total Assets)


AAAAANR (includes equity investments)

Dec‘14

85.85%0.00%

3.18%100.00%

10.97%

Dec‘1410.09%

0.88%89.03%

100.00%

Nov‘14

80.50%0.00%

6.02%100.00%

13.48%

Nov‘148.95%4.53%

86.52%100.00%

N/AKMI - 30 Index


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


WWF Disclosure

NAV per Unit (PKR)Sharpe Ratio ^^

128.271110.420.1052

Treynor Ratio^^Standard Deviation *^^

3M PKRV yield used as Risk‐Free rate. ^^ The look back period is 204 working days (Since inception).* Annualized.**^R‐Square measures the correlation between the benchmark and the fund

0.0175Beta^^ 0.8317R-Square**^^^ 69.59%Value at Risk 1.44%

13.83%

4th March 2014Daily (days when Banks are open for business)

4.00 pmForward2% p.a.2% (Front-end) 0% (Back-end)Moderate to HighKarachi Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.KPMG Taseer Hadi & Co.Mohsin Tayebaly & Co.M. Samir Malik, CFA

The objective of PIML-IEF is to achieve long term capital growth by invest-ing mainly in Shariah Compliant listed equity securities.



Fund Performance

Since Inception 11.79% 17.7%

3.11% 1.90%Dec-144.64% 2.23%Nov-14

*Absolute Returnsn.a=not applicable

PIML-IEF* Benchmark6.89%

PIML-IEFFYTD

- -- -

6.4%

BenchmarkFYTD

Equity Securities85.85%

Cash at Bank10.97%


3.18%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00% Benchmark PIEF

Sector Allocation (as % of T.A.) Dec '14 Nov '14Oil and Gas 20.98% 31.41%Const. & Materials (Cement) 33.47% 28.32%Electricity 8.78% 6.12%Personal Goods (Textile) 6.84% 6.26%Automobile and Parts 6.67% 3.55%Fixed Line Telecom 1.77% 1.89%Pharma & Bio Tech 3.02% 1.39%Comm. Banks 2.35% 1.29%Chemicals 1.98% 0.27%Total 85.86% 80.50%

Top 10 Equity Holdings (as % of T.A.) Dec '14Pakistan State Oil Co. Ltd. PSO 12.95%D.G. Khan Cement Co. Ltd. DGKC 9.36%Lucky Cement Ltd. LUCK 7.70%Maple Leaf Cement Factory Ltd. MLCF 5.79%Nishat Mills Ltd. NML 5.35%Pak Suzuki Motor Co. Ltd. PSMC 5.14%Fauji Cement Co. Ltd. FCCL 4.97%Kot Addu Power Co. Ltd. KAPCO 4.56%Pakistan Oilfields Ltd. POL 4.38%Hub Power Co. Ltd. HUBC 4.22%

Fund Performance

Since Inception 5.75% 5.77% 6.44%



PIMLIMMF*

PIMLIMMF** Benchmark***

PIML-IMMFFYTD

- -5.35% 5.48% 6.48%Dec-146.12% 6.30% 6.40%Nov-14 - -

5.82% 6.41%

BenchmarkFYTD


Fund Objective

Fund Details




Trustee


Open EndIslamic Money Market Scheme


Sukuk

Cash at Bank

Total

Dec‘14

Nov‘14



AAA (Government Securities)AAAAA+

Total

GOP Ijara Sukuk - Govt. Backed

AAOthers including receivables (NR)

Dec‘14

Dec‘14

0.00%

97.15%2.85%

100.00%

0.00%96.47% 0.00%

100.00%

0.00%

0.68%2.85%

Nov‘14

Nov‘14

0.00%

96.00%4.00%

100.00%

0.00%95.28% 0.00%

100.00%

0.00%

0.72%4.00%

AA(F)3 month deposit rate of three AA andabove rated Islamic Banks







WWF Disclosure

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

122.006103.081

-9.1654Information RatioStandard Deviation ** Annualized

0.20040.417%

4th March 2014Daily (days when Banks are open for business)

4.00 pmForward0.50%2% (Front-end) 0% (Back-end)Low RiskIslamabad Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.KPMG Taseer Hadi & CoMohsin Tayebaly & Co.Salman Kazmi

The objective of PIML-IMMF is to seek high liquidity, competitive return and maximum possible preservation of the capital for investors by investing in low risk Shariah Compliant securities.


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

Fund Manager’s ReviewPIML Islamic Money Market Fund posted an annualized return of 5.35% against the benchmark return of 6.48% for the month of December. We intend to allocate the portfolio optimally; however, the fund is well placed with liquidity to cash in opportunities that may arise in Shariah complaint securities/instruments. The weighted average time to maturity of the portfolio is 01 day.



Cash at Bank97.15%


2.85%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

Benchmark IMMF

Cash at Bank96.00%


4.00%

company’s message - awt investments manager report... · 2018-07-02 · operations against...

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