financial statements for the year ended june 30, 2016 - faysal … · 06 faysal asset management...

Financial Statements for the year ended June 30, 2016

Review Report to the Unit Holders on the Statment of Compliance withthe best practices of the code of corporate governance

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Faysal Asset Management Faysal Savings Growth Fund04

NIB Bank LimitedSoneri Bank LimitedBank Alfalah LimitedFaysal Bank LimitedThe Bank of PunjabAskari Bank LimitedUBL Ameen - Islamic BankingHabib Metropolitan LimitedAllied Bank LimitedHabib Bank LimitedSummit Bank Limited

Faysal Asset Management Limited

Mr. Nauman Ansari, ChairmanMr. Razi-Ur-Rahman Khan, DirectorMr. Osman Khan, DirectorSyed Ibad-Ur-Rehman Chishti, DirectorMr. Mohammad Zahid Ahmed, DirectorMr. Farooq Hadi, DirectorMr. Enamullah Khan, Chief Executive Officer

Mr. Umairullah Khan

Mr. Razi-Ur-Rahman Khan, ChairmanSyed Ibad-ur-Rehman Chisti, MemberMr. Osman Khan, Member

Central Depository Company of Pakistan Limited,

Chief Financial Officerand Company Secretary of theManagement Company

Mr. Osman Khan, ChairmanMr. Razi-Ur-Rahman Khan, MemberSyed Ibad-Ur-Rehman Chishti, MemberMr. Enamullah Khan, Member

HR Comittee

EY Ford Rhodes, Chartered Accountants

Faysal Asset Management Faysal Savings Growth Fund 05


REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY

The Directors of the Faysal Asset Management Limited, the Management Company of Faysal Savings Growth Fund (FSGF), are pleased to present the Annual Report on the operations of FSGF along with the audited accounts, Reports of the Trustee and Auditors to the Unit Holders for the year ended June 30, 2016.

SALE AND REDEMPTION OF UNITS

During the year, units worth Rupees 10,675.059 million were issued and units with a value of Rupees 8,716.680 million were redeemed.

UNIT HOLDERS

As of June 30, 2016, 40,434,417 units with a value of Rs. 4,111.374 million were outstanding (June 30, 2015: 19,728,893 units with a value of Rs. 2,004.257 million).

UNIT PRICES

Unit prices are being announced on a daily basis based on the NAV of the underlying portfolio. The highest and lowest offer/redemption prices during the year as well as the prices prevailing as of June 30, 2016 were as below:

Offer Price Redemption Price Highest 109.46 109.46 Lowest 101.59 101.59 As of June 30, 2016 101.68 101.68

ECONOMIC OUTLOOK

Pakistan’s economy underwent substantial progress during the course of fiscal year 2016. Almost all the critical macroeconomic indicators exhibited continuous progress which alleviated the GDP growth to reach 8-year high of 4.7%. The industrial sector activities made significant strides on the back of better energy supply and improved law and order situation. Despite the challenges on external front in the form of declining exports amid deteriorating global growth prospects and heavy agricultural losses, economic recovery process remained on track. The average inflation during FY16 declined to 47-year low of 2.86% against 4.53% in the same period last year. Such historical lows were achieved on the back of falling commodity prices and contained food inflation along with help from prudent monetary and fiscal policies. The ‘Perishable Food Items’ and ‘Transport’ heads registered year-on-year negative readings at -1.82% and -5.18% respectively. Likewise, all the other CPI basket items remained benign throughout the year.

International reserve buffers held by State Bank of Pakistan (SBP) were effectively rebuilt during the year. By the year end, foreign exchange reserves reached to USD 18.1 billion, sufficient to finance four months of imports. Muted global oil prices, steady remittances growth, improved Foreign Direct Investments (FDI) and FX borrowing played the much needed role in consolidation of the foreign exchange reserves.

According to the figures of State Bank of Pakistan (SBP), current account deficit (CAD) for the fiscal year 2016 contracted by 6.8% to USD 2.5 billion as compared to USD 2.7 billion in the same period last year. Workers’ remittances, despite looming concerns of slowdown in Gulf region, remained upbeat clocking in at USD 19.9 billion (up 6.4% year-on-year) as compared to USD 18.7 billion during the last fiscal year. The current account deficit was further alleviated with an impressive surge of 39% in Foreign Direct Investments (FDI) which clocked in at USD 1.3 billon as compared to USD 0.9 billion last year. This improvement came mainly on account of investment inflows coming from the China-Pakistan Economic Corridor (CPEC) project.

Export, on the other hand, underwent decline of 8.6% on the back of global meltdown and low commodity prices. Nevertheless, imports bill was reduced by mere 2% owing to substantial increase in non-oil imports (up 79% to USD 31.8 billion). Accordingly, balance of payments position clocked in at USD -2.6 billion, declining by mere 0.3% as compared to the last year. CAD as % of GDP clocked in at -0.9% as compared to -0.17% during the last fiscal year.

According to Pakistan Bureau of Statistics (PBS), overall Large Scale Manufacturing (LSM) sector has exhibited growth of 3.45% during July-May 2015-16 when compared with the same period of last year. Major industries driving the growth were a) automobiles (up 18%), b) fertilizers (up 15%), c) nonmetallic mineral products (up 11%), d) leather products (up 9%), e) chemicals (up 9%), f) rubber products (up 7%) and g) pharmaceuticals (up 6%).

During the year, broad-based improvements in underlying economic indicators facilitated the State Bank of Pakistan (SBP) to cut its policy rate by a cumulative 75bps in FY16; over and above cut of 300bps in FY15. Going forward, GDP growth is anticipated to remain buoyant on the back of construction and development activities under China Pakistan Economic Corridor (CPEC) and strengthened private sector credit growth. Nonetheless, risks pertaining to challenging global environment and its looming impact on exports and remittances growth could be very critical and may undermine the growth prospects.

REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY


INCOME DISTRIBUTION

The Board of directors has not approved Final distribution as the income for year is already distributed via Interims distribution at the rate of 7.80% (i.e Rs. 7.80 per unit of par value of Rs.100 each).

MUTUAL FUND RATING

Pakistan Credit rating Agency (PACRA) has assigned a “AA-(f)” stability rating to Faysal Savings Growth Fund. This rating denotes High degree of stability in the Net Asset Value.

CORPORATE GOVERNANCE

A prescribed under clause 5.19.23 of the Listing Regulations of Pakistan Stock Exchange Limited, Statement of Compliance with the Code of Corporate Governance along with the auditors’ report thereon for the year ended June 30, 2016 forms part of this annual report.

1. Statements under clause 5.19.11 of the Code:

a. The financial statements, prepared by the management of the listed Fund, present its state of affairs fairly, the result of its operations, cash flows and changes in equity;

b. Proper books of account of the listed Fund have been maintained; c. Appropriate accounting policies have been consistently applied in preparation of financial statements and

accounting estimates are based on reasonable and prudent judgment; d. International Financial Reporting Standards, as applicable in Pakistan, have been followed in preparation of

financial statements and any departures therefrom has been adequately disclosed and explained; e. The system of internal control is sound in design and has been effectively implemented and monitored; f. There are no significant doubts upon the listed Fund’s ability to continue as a going concern; g. The details of taxes, duties, levies and charges outstanding, are disclosed in the financial statements; h. The number of board and committees’ meetings held during the year and attendance by each director forms part

of this Annual Report; and i. The prescribed pattern of shareholding is given as part of this Annual Report.

The sale and repurchase of units of the Fund carried out by the directors, CEO, COO, CFO, Head of Internal Audit, Company Secretary, their spouses and minor children, and the Management Company.

Trades By: Investment Redemption ------------ (No. of Units) ---------

Management Company 95 33,481Key Management Personnel 16,831 -

PATTERN OF HOLDING

The Pattern of Holding as at June 30, 2016 of FSGF is given as part of this Annual Report.

AUDITORS

The present auditors Messers EY Ford Rhodes, Chartered Accountants retire and, being eligible, offer themselves for re-appointment. The Board endorses the recommendation of the Audit Committee for re-appointment of Messers EY Ford Rhodes, Chartered Accountants as the auditors for the year ending June 30, 2017.

ACKNOWLEDGEMENT

The Board of Directors of the Management Company is thankful to unit holders for their confidence on the Management, the Securities and Exchange Commission of Pakistan and the management of Pakistan Stock Exchange for their valuable support, assistance and guidance. The Board also thanks the employees of the Management Company and the Trustee for their dedication and hard work.

For and on behalf of the Board

Enamullah KhanKarachi: September 26, 2016 Chief Executive Officer

FUND MANAGER’S REPORT

Economic Review

Pakistan’s economy underwent substantial progress during the course of fiscal year 2016. Almost all the critical macroeconomic indicators exhibited continuous progress which alleviated the GDP growth to reach 8‐year high of 4.7%. The industrial sector activities made significant strides on the back of better energy supply and improved law and order situation. Despite the challenges on external front in the form of declining exports amid deteriorating global growth prospects and heavy agricultural losses, economic recovery process remained on track.

The average inflation during FY16 declined to 47‐year low of 2.86% against 4.53% in the same period last year. Such historical lows were achieved on the back of falling commodity prices and contained food inflation along with help from prudent monetary and fiscal policies. The ‘Perishable Food Items’ and ‘Transport’ heads registered year‐on‐year negative readings at ‐1.82% and ‐5.18% respectively. Likewise, all the other CPI basket items remained benign throughout the year.

International reserve buffers held by State Bank of Pakistan (SBP) were effectively rebuilt during the year. By the year end, foreign exchange reserves reached to USD 18.1 billion, sufficient to finance four months of imports. Muted global oil prices, steady remittances growth, improved Foreign Direct Investments (FDI) and FX borrowing played the much needed role in consolidation of the foreign exchange reserves.

According to the figures of State Bank of Pakistan (SBP), current account deficit (CAD) for the fiscal year 2016 contracted by 6.8% to USD 2.5 billion as compared to USD 2.7 billion in the same period last year. Workers’ remittances, despite looming concerns of slowdown in Gulf region, remained upbeat clocking in at USD 19.9 billion (up 6.4% year‐on‐year) as compared to USD 18.7 billion during the last fiscal year. The current account deficit was further alleviated with an impressive surge of 39% in Foreign Direct Investments (FDI) which clocked in at USD 1.3 billon as compared to USD 0.9 billion last year. This improvement came mainly on account of investment inflows coming from the China‐Pakistan Economic Corridor (CPEC) project.

Export, on the other hand, underwent decline of 8.6% on the back of global meltdown and low commodity prices. Nevertheless, imports bill was reduced by mere 2% owing to substantial increase in non‐oil imports (up 79% to USD 31.8 billion). Accordingly, balance of payments position clocked in at USD ‐2.6 billion, declining by mere 0.3% as compared to the last year. CAD as % of GDP clocked in at ‐ 0.9% as compared to 1.0% during the last fiscal year.

According to Pakistan Bureau of Statistics (PBS), overall Large Scale Manufacturing (LSM) sector has exhibited growth of 3.45% during July‐May 2015‐16 when compared with the same period of last year. Major industries driving the growth were a) automobiles (up 18%), b) fertilizers (up 15%), c) nonmetallic mineral products (up 11%), d) leather products (up 9%), e) chemicals (up 9%), f) rubber products (up 7%) and g) pharmaceuticals (up 6%).

During the year, broad‐based improvements in underlying economic indicators facilitated the State Bank of Pakistan (SBP) to cut its policy rate by a cumulative 75bps in FY16; over and above cut of 300bps in FY15. Going forward, GDP growth is anticipated to remain buoyant on the back of construction and development activities under China Pakistan Economic Corridor (CPEC) and strengthened private sector credit growth. Nonetheless, risks pertaining to challenging global environment and its looming impact on exports and remittances growth could be very critical and may undermine the growth prospects.

Money Market Review

SBP announced six MPS – Monetary Policy Statement during FY16, where discount rate and policy rate was slashed by 75bps from 7.00% to 6.25% and 6.5% to 5.75% respectively which is the all‐time low interest rate in the history of Pakistan on the back of i) Going forward higher inflationary projections, ii) limited credit uptick, iii) Balance of payments risk in the form of higher trade deficit going forward but China Pakistan Economic Corridor bodes well for future prospects of foreign inflows in the country.

During the period under discussion of FY16 money market mostly remained illiquid and SBP conducted various OMO – Injections where the total injected amount was PKR 57,764.15bn and the total participation amount was PKR 60,685.21bn. The weighted average rate of the injected amount during the quarter was 6.10%. During the same period 8 OMO‐Mop ups were witnessed where the mopped up amount was PKR 497.35mn at weighted average rate of 6.06%.

SBP conducted fortnightly T bill auctions during FY16 where the total accepted amount was PKR 4,523.49bn where the total stipulated target of SBP was PKR 5,175bn and the cuts offs were lowered by max 89bps across all three tenors. Cut‐offs for the last auction of the FY16 were; 3M – 5.9017%, 6M – 5.9250% and 12M – 5.9590% where they were 6.7963%, 6.8011% and 6.8221% for 3M, 6M & 12M at the start of FY16 .



September 26, 2016


This statement is being presented to comply with the Code of Corporate Governance (the CCG) contained in Paragraph 5.19 of Chapter 5 of Pakistan Stock Exchange Limited’s Regulations (Formerly: Karachi Stock Exchange) for the purpose of establishing a framework of good governance, whereby a listed company is managed in compliance with the best practices of Corporate Governance. The Board of Directors (the Board) of Faysal Asset Management Limited (the Management Company), an unlisted public company, manages the affairs of Faysal Savings Growth Fund (the Fund). The Fund being a unit trust open end scheme does not have its own Board of Directors. The Management Company has applied the principles contained in the Code to the Fund in the following manner:

1. The Management Company encourages representation of independent non-executive directors. At present, the Board includes:

The independent directors meet the criteria of independence under clause 5.19.1 (b) of the CCG. 2. The directors have confirmed that none of them are serving as a director on more than seven listed companies,

including the Management Company.

3. All the resident directors of the Management Company are registered taxpayers and none of them have defaulted in payment of any loan to a banking company, a DFI or an NBFI, or being a Broker of a stock exchange, has been declared as a defaulter by that stock exchange.

4. A casual vacancy occurred on the board on 11 December 2015, which has subsequently been filled on 9th August, 2016, after soliciting necessary approvals from the Security and Exchange Commission of Pakistan.

5. The Management Company has prepared a “Code of Conduct” and has ensured that appropriate steps have been taken to disseminate it throughout the company along with its supporting policies and procedures.

6. The Board has developed a vision / mission statement, an overall corporate strategy and significant policies for the Fund. A complete record of particulars of significant policies along with the dates on which these were approved or amended has been maintained.

7. All the powers of the Board have been duly exercised and decisions on material transactions, including appointment, determination of remuneration and terms and conditions of employment of the Chief Executive Officer (CEO) and other executive and non-executive directors have been taken by the Board / shareholders.

8. The meetings of the Board were presided over by the Chairman and, in his absence, by a director elected by the Board for this purpose and the Board met at least once in every quarter, during the year. Written notices of the Board meetings, along with agenda and working papers, were circulated at least seven days before the meetings. The minutes of the meetings were appropriately recorded and circulated.

9. All the directors of the Management Company are well-conversant with the relevant laws applicable to the Fund and Management Company, its policies and procedures and provisions of memorandum and articles of association and are aware of their duties and responsibilities. The Compliance with the requirement of certification of directors is ensured.

10. The board has approved the appointment of Head of Internal Audit including his remuneration and terms and conditions of employment.

STATEMENT OF COMPLIANCE WITH THE BEST PRACTICES OF THECODE OF CORPORATE GOVERNANCE

Independent Director Mr. Osman Asghar Executive Director Mr. Enamullah Khan (CEO)Non-Executive Director Mr. Nauman Ansari Syed Ibad-Ur-Rehman Chishti Mr. Razi-Ur-Rahman Khan Mr. Mohammad Zahid Ahmed

Category Names


11. The Directors' report relating to the Fund for the year ended June 30, 2016 has been prepared in compliance with the requirements of the Code and fully describes the salient matters required to be disclosed.

12. The financial statements of the Fund were duly endorsed by the CEO and CFO of the Management Company before approval of the Board.

13. The Directors, CEO, and executives do not hold any interest in the units of the Fund other than that disclosed in the Directors' report.

14. The Management Company has complied with all the corporate and financial reporting requirements of the CCG.

15. The Board has formed an Audit Committee. It comprises of three members, all of whom are non-executive directors of the Management Company including the chairman of the Committee.

16. The meetings of the Audit Committee were held at least once in every quarter and prior to the approval of interim and final results of the Fund as required by the CCG. However, the meeting due in first quarter of the year 2016 was held on October 6, 2015 due to delay in finalisation of the financial statements for the year ended June 30, 2015. The terms of reference of the Committee have been formed and advised to the Committee for compliance.

17. The Board has formed an HR and Compensation Committee. It comprises of four members of whom two are non-executive directors and the chairman of the Committee is an independent director.

18. The Management Company has outsourced the internal audit function to KPMG Taseer Hadi & Co. Chartered Accountants (the Firm) who are considered suitably qualified and experienced for the purpose and are conversant with the policies and procedures of the Fund.

19. The statutory auditors of the Fund have confirmed that they have been given a satisfactory rating under the Quality Control Review program of the Institute of Chartered Accountants of Pakistan (ICAP), that they or any of the partners of the firm, their spouses and minor children do not hold shares of the Management Company or units of the Fund and that the firm and all its partners are in compliance with the International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the ICAP.

20. The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard.

21. The ‘closed period’, prior to the announcement of interim / final results, and business decisions, which may materially affect the market price of Fund’s units, was determined and intimated to directors, employees and stock exchange.

22. Material / price sensitive information has been disseminated among all market participants at once through stock exchange.

23. We confirm that all applicable material principles enshrined in the Code have been complied with.

Karachi Enamullah Khan Dated: September 26, 2016 Chief Executive Officer

STATEMENT OF COMPLIANCE WITH THE BEST PRACTICES OF THECODE OF CORPORATE GOVERNANCE


INDEPENDENT AUDITORS’ REPORT TO THE UNIT HOLDERS


INDEPENDENT AUDITORS’ REPORT TO THE UNIT HOLDERS

September 26, 2016

STATEMENT OF ASSETS AND LIABILITIESAS AT JUNE 30, 2016

Faysal Asset Management Faysal Savings Growth Fund18 1

June 30, June 30,2016 2015

NoteAssets

7stpiecer tisoped mret dna secnalab knaB 2,599,358,891 952,655,600 8stnemtsevnI 723,429,252 668,527,169

Receivable against Margin Trading System (MTS) 605,015,568 431,364,401 9 selbaviecer rehto dna stisoped ,stnemyaperP 20,921,531 23,724,515

Receivable against issue of units 411,019,579 - 128,447,953,4stessa latoT 2,076,271,685

Liabilities

01ynapmoC tnemeganaM eht ot elbayaP 3,491,134 569,800 11eetsurT eht ot elbayap noitarenumeR 410,812 219,132 21seitilibail rehto dna deurccA 78,072,272 71,226,227

Payable on redemption of units 166,396,177 - 593,073,842seitilibail latoT 72,015,159

624,473,111,4stessa teN 2,004,256,526

624,473,111,4)dehcatta tnemetats rep sa( dnuf 'sredloh tinU 2,004,256,526

Commitments 13

714,434,04eussi ni stinu fo rebmuN 19,728,893

86.101tinu rep eulav stessa teN 101.59

The annexed notes from 1 to 21 form an integral part of these financial statements.

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FAYSAL SAVINGS GROWTH FUNDSTATEMENT OF ASSETS AND LIABILITIES

AS AT JUNE 30, 2016

(Management Company)For Faysal Asset Management Limited

-------------- (Rupees) --------------

--------- (Number of units) ---------

-------------- (Rupees) --------------

INCOME STATEMENTFOR THE YEAR ENDED JUNE 30, 2016


June 30, June 30,2016 2015

etoNemocnIProfit earned on debt and government securities classified as 'at fair

value through profit or loss' - held-for-trading 134,619,999 109,121,608 Mark-up earned on letter of placements, commercial papers and

clean placements - classified as 'held to maturity' 2,251,986 1,888,636 Income from Margin Trading System (MTS) 86,401,747 48,387,074 Return on bank balances and term deposit receipts 88,691,013 42,293,070 Net gain / (loss) on investments classified as 'at fair value

through profit or loss' - held-for-trading:- Net capital gain on sale of investments 59,902,068 86,976,429 - Net unrealised gain / (loss) on revaluation of investments 8.4 7,323,531 (12,425,347)

67,225,599 74,551,082 443,091,973emocni latoT 276,241,470

Expenses1.01ynapmoC tnemeganaM eht fo noitarenumeR 62,742,241 28,874,978 3.21seitud dna sexat tceridni rof noisivorP 11,444,185 5,312,996 2.01eef tnemeganaM no xat selaS 8,783,914 4,331,247 1.11eetsurT eht fo noitarenumeR 4,399,653 2,486,325 2.11eef eetsurT no xat selaS 615,951 -

Brokerage charges 1,698,701 881,194 Bank charges 223,463 189,450

41 noitarenumer 'srotiduA 642,300 630,858 1.21eef launna PCES 3,143,699 1,443,749

Legal and professional charges - 142,857 Fees and subscription 312,860 284,674 Settlement charges and federal excise duty 10,348,059 4,334,132 Printing charges and other expenses 282,317 308,072

2.21dnuF erafleW 'srekroW rof noisivorP - 2,990,997 Reimbursement of expense to the Management Company 10.3 2,077,621 -

469,417,601sesnepxe latoT 52,211,529 083,574,272seitivitca gnitarepo morf emocni teN 224,029,941

Element of loss and capital losses included in prices of units)430,900,611(ten - demeeder stinu ni esoht ssel dlos (77,471,081)

643,664,651noitaxat erofeb raey eht rof emocni teN 146,558,860

51noitaxaT - -

643,664,651noitaxat retfa raey eht rof emocni teN 146,558,860

Other comprehensive income for the year - -

643,664,651raey eht rof emocni evisneherpmoc latoT 146,558,860


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-------------- (Rupees) --------------

FAYSAL SAVINGS GROWTH FUNDINCOME STATEMENT

FOR THE YEAR ENDED JUNE 30, 2016

For Faysal Asset Management Limited(Management Company)


DISTRIBUTION STATEMENTFOR THE YEAR ENDED JUNE 30, 2016

3

June 30, June 30,2016 2015

615,786,73drawrof thguorb emocni detubirtsidnU 35,084,073 [includes unrealised loss on investments of Rs.12,207,089(2014: unrealised loss of Rs.142,267)]

Interim bonus distribution for the period ended June 18, 2015 @ Rs.6.00per unit declared for distribution on June 19, 2015 - (52,874,698)

Interim cash distribution for the period ended June 18, 2015 @ Rs.6.00per unit declared for distribution on June 19, 2015 - (14,341,839)


Interim bonus distribution for the period ended June 24, 2016 @ Rs.3.00per unit declared for distribution on June 27, 2016 (30,616,587) -

Interim cash distribution for the period ended June 24, 2016 @ Rs.3.00per unit declared for distribution on June 27, 2016 (28,161,387) -


Net income for the year after taxation 156,466,346 146,558,860

231,133,14drawrof deirrac emocni detubirtsidnU 37,687,516[includes unrealised gain on investments of Rs.7,323,531(2015: unrealised loss of Rs.12,207,089)]



FAYSAL SAVINGS GROWTH FUNDDISTRIBUTION STATEMENT


-------------- (Rupees) --------------

(Management Company)For Faysal Asset Management Limited

CASH FLOW STATEMENTFOR THE YEAR ENDED JUNE 30, 2016


4

June 30, June 30,2016 2015

NoteCASH FLOWS FROM OPERATING ACTIVITIESNet income for the year before taxation 156,466,346 146,558,860

Adjustments for non-cash and other items:Net (gain) / loss on investments classified as 'at fair value through

profit or loss' - held-for-trading:- Net capital gain on sale of investments (59,902,068) (86,976,429) - Net unrealised (gain) / loss on revaluation of investments (7,323,531) 12,425,347

Profit earned on debt and government securities classified as 'at fair value through profit or loss' - held-for-trading (134,619,999) (109,121,608)

Mark-up earned on letter of placements, commercial papers andclean placements - classified as 'held to maturity' (2,251,986) (1,888,636)

Income from Margin Trading System (MTS) (86,401,747) (48,387,074) Return on bank balances and term deposit receipts (88,691,013) (42,293,070) Element of loss and capital losses included in prices of units

sold less those in units redeemed - net 116,009,034 77,471,081 (106,714,964) (52,211,529)

(Increase) / decrease in assetsPrepayments, deposits and receivable from issue of units (411,019,579) 4,300,000

Increase / (decrease) in liabilitiesPayable to the Management Company 2,921,334 (1,241,567) Remuneration payable to the Trustee 191,680 61,463 Accrued and other liabilities 6,846,045 16,837,529

9,959,059 15,657,425

Proceeds from sale / redemption of investments 17,019,151,765 8,616,007,572Payments made against purchase of investment (17,006,828,249) (8,545,350,334)Payments made against Margin Trading System (MTS) (173,651,167) (160,910,012) Profits and returns received 314,767,729 209,839,511

)604,533,453(seitivitca gnitarepo morf detareneg hsac teN 87,332,633

CASH FLOWS FROM FINANCING ACTIVITIESAmounts received against issue of units 10,675,059,994 5,027,113,162Payments made against redemption of units (8,550,284,325) (4,574,161,712)Dividend paid (123,736,972) (93,358,802)

796,830,100,2seitivitca gnicnanif morf detareneg hsac teN 359,592,648

Net increase in cash and cash equivalents during the year 1,646,703,291 446,925,281 Cash and cash equivalents at beginning of the year 952,655,600 505,730,319 Cash and cash equivalents at end of the year 7 2,599,358,891 952,655,600



(Management Company)

-------------- (Rupees) --------------

For Faysal Asset Management Limited

FAYSAL SAVINGS GROWTH FUND

FOR THE YEAR ENDED JUNE 30, 2016CASH FLOW STATEMENT

FOR THE YEAR ENDED JUNE 30, 2016STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND


June 30, June 30,2016 2015

Net assets value per unit at beginning of the year 101.59 101.46

Net assets value per unit at end of the year 101.68 101.59

625,652,400,2raey eht fo gninnigeb ta stessa teN 1,418,355,854

Amounts received on issue of units * 10,675,059,994 5,027,113,162Amounts paid on redemption of units ** (8,716,680,502) (4,574,161,712)

1,958,379,492 452,951,450 Element of loss and capital losses included in prices of units sold less

those in units redeemed - net 116,009,034 77,471,081



Tax on interim bonus distribution for the period ended June 24, 2016 @ Rs.0.15 per unit declared for distribution on June 27, 2016 (1,530,829) -



Net capital gain on sale of investments 59,902,068 86,976,429 Net unrealised gain / (loss) on revaluation of investments 7,323,531 (12,425,347) Other net income for the year 89,240,747 72,007,778

643,664,651raey eht rof emocni evisneherpmoc latoT 146,558,860

624,473,111,4raey eht fo dne ta stessa teN 2,004,256,526

* Number of units issued (including 301,285 bonus units issuedduring the year ended June 30, 2016 and 501,468 bonusunits issued during the year ended June 30, 2015) 102,168,817 47,768,019

** Number of units redeemed 81,463,293 42,018,983


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------------ (Rupees) ------------

------- (Number of units) -------

FAYSAL SAVINGS GROWTH FUNDSTATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND


FOR THE YEAR ENDED JUNE 30, 2016STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND


1. LEGAL STATUS AND NATURE OF BUSINESS

The Fund is categorised as an "Income Scheme" as per the Circular No. 7 of 2009 issued by SECP.

JCR - VIS has awarded an "AM3++" asset manager rating to the Management Company as of May 04, 2016.

2. STATEMENT OF COMPLIANCE

3. BASIS OF MEASUREMENT

3.1

3.2

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Fund is an open-ended income fund and is listed on the Pakistan Stock Exchange Limited (formerlyKarachi Stock Exchange Limited). Units are offered for public subscription on a continuous basis and the unitsare transferable and can be redeemed by surrendering them to the Fund. The Fund was launched on May 07,2007.

These financial statements have been prepared in accordance with approved accounting standards asapplicable in Pakistan. Approved accounting standards comprise of such International Financial ReportingStandards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified under theCompanies Ordinance, 1984, the requirements of the Trust Deed, the NBFC Rules, the Non Banking FinanceCompanies and Notified Entities Regulation, 2008 (the NBFC Regulations) and directives issued by SECP.Wherever the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations or the directives issuedby the SECP differ with the requirements of IFRS, the requirements of the Trust Deed, the NBFC Rules, theNBFC Regulations or the requirements of the said directives prevail.

These financial statements have been prepared under the historical cost convention, except for certaininvestments and derivatives which are accounted for as stated in notes 4.3 and 4.4 below.

These financial statements are presented in Pak rupees, which is the Fund's functional and presentationcurrency.

The Pakistan Credit Rating Agency Limited (PACRA) has assigned a "AA-(f)" stability rating to Faysal SavingsGrowth Fund as of December 31, 2015.

The objective of the Fund is to seek maximum possible preservation of capital and a reasonable rate of returnvia investing primarily in money market and debt securities having good credit rating and liquidity.

The accounting policies adopted in the preparation of these financial statements are consistent with those ofthe previous financial year, except as described in note 4.1.

FAYSAL SAVINGS GROWTH FUNDNOTES TO THE FINANCIAL STATEMENTS


Faysal Savings Growth Fund (the Fund) has been established under the Non-Banking Finance Companies(Establishment and Regulation), Rules 2003 (the NBFC Rules) and has been authorised as a unit trust schemeby the Securities and Exchange Commission of Pakistan (SECP) on February 27, 2007. It has been constitutedunder a Trust Deed, dated December 28, 2006 between Faysal Asset Management Limited (the ManagementCompany), a company incorporated under the Companies Ordinance, 1984 and Central Depository Companyof Pakistan Limited (CDC) as the Trustee, also a company incorporated under the Companies Ordinance,1984.


NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED JUNE 30, 2016

7 FAYSAL SAVINGS GROWTH FUND

4.1 New Standards, Interpretations and Amendments

IFRS 10 – Consolidated Financial Statements

IFRS 11 – Joint Arrangements

IFRS 12 – Disclosure of Interests in Other Entities

IFRS 13 – Fair Value Measurement

4.2

4.3 Investments

At fair value through profit or loss

The investments of the Fund, upon initial recognition, are classified as investment at fair value throughprofit or loss, available-for-sale or held to maturity investments as appropriate.

All investments, are initially measured at fair value plus, in the case of investments not at fair valuethrough profit or loss, transaction costs that are directly attributable to acquisition.

All regular way purchases / sales of investments that require delivery with in the time frame establishedby the regulation of market convention are recognised on the trade date, i.e. the date on which the Fundcommits to purchase / sell the investment. Regular way purchases / sales of investments require deliveryof securities within the period generally established by the regulation or market convention such as "T+2".

Element of income / (loss) and capital gains / (losses) included in prices of units issued less thosein units redeemed

An equalisation account called the "Element of income / (loss) and capital gains / (losses) included inprices of units issued less those in units redeemed" (the Element) is created in order to prevent thedilution of per unit income and distribution of income already paid out on redemption.

The Element is arrived at by comparing the unit prices with opening Ex - Net Assets Value (NAV) at thebeginning of the financial year. The Element so computed is recognised in the income statement exceptto the extent that the amount represented by unrealised appreciation / diminution arising on available-for-sale securities is included in distribution statement.

The net “element of income / loss and capital gains / losses included in prices of units sold less those inunits redeemed” during an accounting period is transferred to the income statement.

This category has two sub-categories, namely; financial instruments held-for-trading, and thosedesignated at fair value through profit or loss upon initial recognition.

Investments which are acquired principally for the purposes of generating profit from short-termfluctuation in price or are part of the portfolio in which there is recent actual pattern of short-term profittaking are classified as held-for-trading.

Investments designated at fair value through profit or loss upon initial recognition include those group offinancial assets which are managed and their performance evaluated on a fair value basis, in accordancewith the documented risk management / investment strategy.

The adoption of the above accounting standards did not have any effect on the financial statementsexcept for certain disclosures due to adoption of IFRS 13 (see note 18).

The Fund has adopted the following accounting standard and the amendments and interpretation ofIFRSs which became effective for the current year:

NOTES TO THE FINANCIAL STATEMENTS



These investments are initially recognised at fair value, being the cost of the consideration given.

Held to maturity investments

Available-for-sale investments

Fair value of investments is determined as follows:

Debt securities

Government securities

These are valued by reference to the quotations obtained from reuters page.

4.4 Derivatives

4.5 Securities under repurchase / resale agreements

After initial measurement, investment at fair value through profit or loss are carried at fair value and thegains or losses on revaluation are recognised in the income statement.

Investment securities with fixed maturities and fixed or determinable payments are classified as 'held-to-maturity investments' when management has both the intention and ability to hold to maturity. After initialmeasurement, such investments are carried at amortised cost less any provision for impairment exceptfor in case of debt securities and government securities, which are carried at fair value in accordance withthe requirements of the NBFC Regulations.

Investments which are not classified in any of the preceding categories are classified as available-for-saleinvestments. After initial measurement, such investments are measured at fair value with unrealised gainor loss recognised directly in the unit holders' fund until the investment is derecognised or determined tobe impaired at which time the cumulative gain or loss previously recognised in unit holders' fund is takento the income statement.

The Fund’s investment in debt securities is revalued at the rates quoted by Mutual Funds Association ofPakistan (MUFAP) in accordance with the SECP’s Circular No.33 of 2012 dated October 24, 2012, readwith Regulation 66(b) of the NBFC Regulations.

Derivative instruments held by the Fund generally comprise of futures contracts, options and forwardcontracts etc. in the capital market. These are initially recognised at cost and are subsequentlyremeasured at their fair value. The fair value of derivative instruments is calculated as being the netdifference between the contract price and the closing price reported on the primary exchange of theinstrument. Derivative with positive market values (un-realised gains) are included in other assets andderivatives with negative market values (un-realised losses) are included in other liabilities in thestatement of assets and liabilities. The resultant gains and losses are included in income currently.

Derivative financial instruments entered into by the Fund do not meet the hedging criteria as defined byInternational Accounting Standard - 39, Financial Instruments: Recognition and Measurement,consequently hedge accounting is not used by the Fund.

Transactions of purchase under resale (reverse-repo) of marketable and government securities areentered into at contracted rates for specified periods of time. Securities purchased with a correspondingcommitment to resell at a specified future date (reverse-repos) are not recognised in the statement ofassets and liabilities. Amounts paid under these agreements are included in receivable in respect ofreverse repurchase transactions. The difference between purchase and resale price is treated as incomefrom reverse repurchase transactions and accrued over the life of the reverse-repo agreement.




4.6 Provisions

4.7 Issuance and redemption of units

4.8 Cash and cash equivalents

4.9 Revenue recognition

4.10 Expenses

4.11 Taxation

Provisions are recognised when the Fund has a present legal or constructive obligation as a result of pastevents, it is probable that an outflow of resources embodying economic benefits will be required to settlethe obligation and a reliable estimate of the obligation can be made. Provisions are regularly reviewedand adjusted to reflect the current best estimate.

Transactions of sale under repurchase (repo) of marketable and government securities are entered into atcontracted rates for specified periods of time. Securities sold with a simultaneous commitment torepurchase at a specified future date (repos) continue to be recognised in the statement of assets andliabilities and are measured in accordance with accounting policies for investment securities. Thecounterparty liabilities for amounts received under these transactions are recorded as financial liabilities.The difference between sale and repurchase price is treated as borrowing charges and accrued over thelife of the repo agreement.

Units issued are recorded at the offer price prevalent on the day the investment form, complete in allrespects, is received. The offer price represents the net assets value of units at the end of the day plusthe allowable sales load. The sales load is payable to the Management Company as processing fee.Issue of units is recorded on acceptance of application for sale.

The Fund is exempt from taxation under clause 99 of Part I of the 2nd Schedule to the Income TaxOrdinance, 2001, subject to the condition that not less than 90% of its accounting income excludingrealised and unrealised capital gains for the year is distributed amongst the unit holders.

Gain or loss on sale of marketable and government securities is accounted for in the year in which itarises.

All expenses, including management fee and trustee fee, are recognised in the income statement on anaccrual basis.

Units redeemed are recorded at the redemption price, prevalent on the day the redemption form completein all respects is accepted. The redemption price represents the net assets value at the end of the day.Redemption of units is recorded on acceptance of application for redemption.

Cash and cash equivalents comprise cash at banks and short-term deposits with an original maturity ofthree months or less. Cash and cash equivalents are carried in the statement of assets and liabilities atcost.

Unrealised gains or losses arising on revaluation of investments classified as 'financial assets at fair value through profit or loss' are included in the income statement in the period in which they arise.

Mark-up on government securities, debt securities, return on certificates of investment, profit on cleanplacements, return on bank balances and term deposit receipts, income from reverse repurchaseagreements and income from Margin Trading System (MTS) are recognised on a time proportion basisusing effective interest rate method.




4.12 Net Assets Value (NAV) per unit

4.13 Distribution to unit holders

4.14 Preliminary expenses and floatation costs

4.15 Financial assets and financial liabilities

Impairment of financial assets

Impairment is determined as follows:

(a)

(b) for assets carried at fair value, impairment is the difference between cost and fair value.

(c)

In addition, a provision is made to cover impairment for specific groups of assets where there is ameasurable decrease in estimated future cash flows.

An assessment is made at each statement of assets and liabilities date to determine whether there isobjective evidence that a specific financial asset may be impaired. If such evidence exists, anyimpairment loss, is recognised in the income statement.

For available-for-sale equity investments, reversal of impairment losses are recorded as increasesin cumulative changes in fair value through unit holders' fund.

for assets carried at amortised cost, impairment is based on estimated cash flows discounted atthe original effective interest rate.

for assets carried at cost, impairment is present value of future cash flows discounted at thecurrent market rate of return for a similar financial asset.

Distribution to unit holders made subsequent to the statement of assets and liabilities date are consideredas non-adjusting events and are recognised in the financial statements in the period in which suchdividends are declared and approved by the Board of Directors of the Management Company.

Preliminary expenses and floatation costs represent expenditure incurred in connection withincorporation, registration, establishment and authorisation of the Fund till the close of the Initial PublicOffering Period. These costs are to be amortised over a period not exceeding sixty months in accordancewith the Trust deeds.

The net assets value per unit disclosed in the statement of assets and liabilities is calculated by dividingthe net assets of the Fund by the number of units in issue at the year end.

All financial assets and financial liabilities are recognised at the time when the Fund becomes a party tothe contractual provisions of the instrument. Financial assets are derecognised when the contractualrights to receive cash flows related to the asset expire. Financial liabilities are derecognised when theyare extinguished, that is, when the obligation specified in the contract is discharged, cancelled or expires.Any gain or loss on derecognition of the financial assets and financial liabilities is taken to incomestatement currently.

Financial assets carried in the statement of assets and liabilities include bank balances and term depositreceipts, investments, receivable against Margin Trading System (MTS), receivable against issue of unitsand deposits and other receivables.

Financial liabilities carried in the statement of assets and liabilities include payable to the ManagementCompany, remuneration payable to the Trustee, payable on redemption of units and accrued and otherliabilities.




Offsetting of financial assets and financial liabilities

4.16 Receivable against Margin Trading System (MTS)

5. ACCOUNTING ESTIMATES AND JUDGMENTS

6.

Effective date(accounting periods

Standard or Interpretation beginning on or after)

IFRS 2 – Share-based Payments – Classification and Measurement 8102 ,10 yraunaJ)stnemdnemA( snoitcasnarT stnemyaP desab-erahS fo

IFRS 10 – Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investment in Associates – Investment Entities: Applying the Consolidation Exception (Amendment) January 01, 2016

IFRS 10 – Consolidated Financial Statements and IAS 28 Investmentin Associates and Joint Ventures - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendment) Not yet finalized

IFRS 11 – Joint Arrangements - Accounting for Acquisition 6102 ,10 yraunaJ)tnemdnemA( noitarepO tnioJ ni tseretnI fo

IAS 1 – Presentation of Financial Statements - 6102 ,10 yraunaJ)tnemdnemA( evitaitinI erusolcsiD

IAS 7 – Financial Instruments: Disclosures - 7102 ,10 yraunaJ)tnemdnemA( - evitaitinI erusolcsiD

Transactions for purchase of marketable securities under Margin Trading System (MTS) are entered intoat contracted rates for specified period of time. Securities purchased under the MTS are not recognised inthe statement of assets and liabilities. The amount paid under such agreement is recognised as"receivable against Margin Trading System (MTS)". Profit is recognised on accrual basis using theeffective interest rate method. Cash releases are adjusted against the receivable as reduction in theamount of receivable. The maximum maturity of a MTS contract is 60 calendar days and 25% of theexposure is released automatically at the expiry of every 15th calendar day.

The preparation of financial statements requires management to make judgments, estimates and assumptionsthat effect the application of policies and reported amounts of assets and liabilities, income and expenses. Theestimates and associated assumptions are based on historical experience and various other factors that arebelieved to be reasonable under the circumstances, the result of which form the basis of making judgmentsabout carrying values of assets and liabilities. The estimates and underlying assumptions are reviewed on anongoing basis.

Judgments made by management in the application of accounting policies that have significant effect on thefinancial statements and estimates with a significant risk of material adjustment are explained in notes 4.3, 4.4and 4.15 to the financial statements.

STANDARDS, INTERPRETATIONS AND AMENDMENTS TO APPROVED ACCOUNTING STANDARDSTHAT ARE NOT YET EFFECTIVE

The following revised standards, interpretations and amendments with respect to the approved accountingstandards as applicable in Pakistan would be effective from the dates mentioned below against the respectivestandards, interpretations and amendments:

Financial assets and financial liabilities are only offset and the net amount reported in the statement ofassets and liabilities when there is a legally enforceable right to set off the recognised amount and theFund intends to either settle on a net basis, or to realise the asset and settle the liability simultaneously.




Effective date(accounting periods

Standard or Interpretation beginning on or after)

IAS 12 – Income Taxes – Recognition of Deferred Tax Assets 7102 ,10 yraunaJ)stnemdnemA( sessol dezilaernU rof

IAS 16 – Property, Plant and Equipment and IAS 38intangible assets - Clarification of Acceptable Method of

6102 ,10 yraunaJ)tnemdnemA( noitazitromA dna noitaicerpeD

IAS 16 – Property, Plant and Equipment IAS 41 Agriculture – 6102 ,10 yraunaJ)tnemdnemA( stnalP reraeB :erutlucirgA

IAS 27 – Separate Financial Statements – Equity Method 6102 ,10 yraunaJ)tnemdnemA( stnemetatS laicnaniF etarapeS ni

IASB Effective date(annual periods

beginning on or after)Standards

IFRS 9 – Financial Instruments: Classification and Measurement January 01, 2018

IFRS 14 – Regulatory Deferral Accounts January 01, 2016

IFRS 15 – Revenue from Contracts with Customers January 01, 2018

IFRS 16 – Leases January 01, 2019

June 30, June 30,2016 2015

Note7. BANK BALANCES AND TERM DEPOSIT RECEIPTS

Cash at bank - PLS savings accounts 7.1 2,599,358,891 752,655,600 Term deposit receipts - 200,000,000

2,599,358,891 952,655,600

7.1

8. INVESTMENTS

'At fair value through profit or loss' - held-for-trading1.8seitiruces tbeD 77,418,750 107,086,572 2.8seitiruces tnemnrevoG 646,010,502 561,440,597

Held to maturityLetter of placements 8.3 - -

723,429,252 668,527,169

-------------- (Rupees) ---------------

These carry mark-up ranging between 3.75% to 6.60% (June 30, 2015: 4.50% to 6.70%) per annum andinclude balance of Rs.2.46 million (June 30, 2015: Rs.3.21 million) held with Faysal Bank Limited, arelated party.

Further, following new standards have been issued by IASB which are yet to be notified by the SECP for thepurpose of applicability in Pakistan.

The above standards and amendments are not expected to have any material impact on the Fund's financialstatements in the period of initial application.

In addition to the above standards and amendments, improvements to various accounting standards have alsobeen issued by the IASB in September 2014. Such improvements are generally effective for accounting periodsbeginning on or after January 01, 2016. The Fund expects that such improvements to the standards will nothave any material impact on the Fund's financial statements in the period of initial application.


NOTES TO THE FINANCIAL STATEMENTSD

NUF

HT

WO

RG

SG

NIV

AS L

AS

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31

8.1

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Eng

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15

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77

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2,41

8,75

0

10.7

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620

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6

107,

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8.1.

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2022

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Mar

k-up

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(p

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Mar

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8.1

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50

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0

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(loss

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June 30, June 30,2016 2015

Note8.4 Net unrealised gain / (loss) on revaluation of

investments

Market value of investments 723,429,252 668,527,169 Less: Cost of investments 716,105,721 680,734,258

7,323,531 (12,207,089)

Net unrealised loss on investments at beginningof the year 12,207,089 142,267

Realised on disposal during the year (12,207,089) (360,525) - (218,258)

7,323,531 (12,425,347)

9. PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES - considered good

Prepayments 169,179 169,179 Security deposits

- National Clearing Company of Pakistan Limited 250,000 250,000 - Central Depository Company of Pakistan Limited 100,000 100,000

350,000 350,000

Income receivable on Margin Trading System (MTS) 3,772,413 2,645,007 Profit receivable on debt and government securities 10,772,453 15,300,847 Return receivable on bank balances and term

1.9stpiecer tisoped 5,857,486 5,259,482 20,921,531 23,724,515

9.1

10. PAYABLE TO THE MANAGEMENT COMPANY

1.01elbayap eef tnemeganaM 1,239,924 523,701 2.01 eef tnemeganaM no elbayap xat selaS 173,589 46,099

Reimbursement of expenses payable to the Management3.01ynapmoC 2,077,621 -

3,491,134 569,800

10.1

10.2

10.3

The Management Company is entitled to a remuneration for services rendered to the Fund under theprovisions of the NBFC Regulations during the first five years of a Fund’s existence of an amount notexceeding three percent of the average annual net assets of the Fund and thereafter of an amount equalto two percent of such assets. The Management Company has charged its remuneration at the rate of1.50% per annum of the daily net assets value of the Fund (June 30, 2015: 1.50%).

---------------- (Rupees) -------------

This includes return receivable amounting to Rs.10,244 (June 30, 2015: Rs.14,778) on balance held withFaysal Bank Limited (a related party).

The Government of Sindh has levied Sindh Sales Tax at the rate of 14% (June 30, 2015: 15%) on theremuneration of the Management Company through the Sindh Sales Tax on Services Act, 2011.

SECP has introduced "expense ratio" vide amendments in NBFC Regulations dated November 25, 2015,whereby, the total expense ratio of an income scheme shall be capped at 2% of average daily net assetsvalue of the scheme. The regulation further states that for the purpose of expense ratio, expensesincurred in relation to any government levy on funds such as sales tax, federal excise duty, SECP fee,etc. shall be excluded while calculating expense ratio. Furthermore, under NBFC Regulation 60(3)(s),wherein the Management Company is allowed to charge their cost to Collective Investment Schemes(CIS) in respect of fees and expenses related to registrar services, accounting, operations and valuationservices related to that CIS. The maximum cost that can be charged in this regard is up to 0.1% of theaverage annual net assets of that CIS or actual, whichever is less. Accordingly, this represents theamount payable to the Management Company to maintain the expense ratio of the Fund within theprescribed limits.




June 30, June 30,2016 2015

Note11. REMUNERATION PAYABLE TO THE TRUSTEE

1.11eetsurT eht ot elbayap noitarenumeR 360,361 219,132 2.11eef eetsurT no elbayap xat selaS 50,451 -

410,812 219,132

11.1

11.2

12. ACCRUED AND OTHER LIABILITIES

1.21elbayap eef launna PCES 3,143,700 1,443,749 Accrued liabilities 4,058,978 3,395,067 With holding tax payable 342 6,962,345 Zakat payable 33,331 33,331

2.21 dnuF erafleW 'srekroW rof noisivorP 52,554,556 52,554,556 Provision for indirect taxes and duties 12.3 18,281,365 6,837,179

78,072,272 71,226,227

12.1

12.2

This represents annual fee payable to the SECP in accordance with the NBFC Regulations, whereby theFund is required to pay SECP annually an amount equal to 0.075% (June 30, 2015: 0.075%) per annumof the daily net assets value of the Fund.

The Trustee is entitled to a monthly remuneration for services rendered to the Fund under the provisionsof the Trust Deed as per the tariff specified therein, based on the daily net assets value of the Fund.

The Government of Sindh has levied Sindh Sales Tax at the rate of 14% on the remuneration of theTrustee through the Sindh Sales Tax on Services Act, 2011.

The Finance Act, 2008 introduced an amendment to the Workers' Welfare Fund Ordinance, 1971 (WWFOrdinance). As a result of this amendment it is alleged that all Collective Investment Schemes / mutualfunds (CISs) whose income exceeds Rs.0.5 million in a tax year, have been brought within the scope ofthe WWF Ordinance, thus rendering them liable to pay contribution to WWF at the rate of two percent oftheir accounting or taxable income, whichever is higher. In this regard, a constitutional petition has beenfiled by certain CISs through their trustees in the Honorable High Court of Sindh, challenging theapplicability of WWF to the CISs, which is pending adjudication.

In August 2011, the Honorable Lahore High Court (LHC), in a Constitutional Petition relating to theamendments brought in the WWF Ordinance, 1971 through the Finance Act, 2006, and the Finance Act,2008, has declared the said amendments as unlawful and unconstitutional and struck them down. InMarch 2013, a larger bench of the Honorable High Court of Sindh (SHC) has passed an order declaringthat the amendments introduced in the WWF Ordinance through Finance Acts, 2006 and 2008respectively do not suffer from any constitutional or legal infirmity. However, as mentioned above, theconstitutional petition challenging the applicability of WWF on mutual funds is still pending adjudicationand not yet decided. The Management Company has considered the implications of the above judgmentof SHC and is of the view that the matter will eventually be settled in its favor and WWF will not be leviedon the Fund.

Further, in May 2014, the Honorable Peshawar High Court (PHC) held that the impugned levy ofcontribution introduced in the Ordinance through Finance Acts, 1996 and 2009 lacks the essentialmandate to be introduced and passed through a Money Bill under the constitution and, hence, theamendments made through the Finance Acts are declared as 'Ultra Vires'.

As the matter relating to the levy of WWF is currently pending in the SHC, the Management Company, asa matter of prudence, has decided to retain the provision for WWF amounting to Rs.52.55 million (June30, 2015: Rs.52.55 million) in these financial statements. Had the provision not been made, the netassets value per unit of the Fund would have been higher by Rs.1.30 (1.28%) per unit (June 30, 2015:Rs.2.66 (2.62%) per unit).

As per the legal counsel handling the case, the constitutional petition filed by the CIS to challenge theWWF contribution has not been affected by SHC judgment.

------------- (Rupees) -------------




12.3

June 30, June 30,2016 2015

13. COMMITMENTS

Margin Trading System (MTS) transactions entered into by theFund which have not been settled as at year end

Purchase transactions 189,529,660 106,189,436 Sale transactions 112,031,948 64,090,088

14. AUDITORS' REMUNERATION

Audit fee 367,500 367,500 Review and other certifications 189,000 189,000 Other 52,500 46,533

609,000 603,033 Sales tax 33,300 27,825

642,300 630,858

15. TAXATION

The income of the Fund is exempt from income tax under Clause (99) of Part 1 of the Second Schedule to theIncome Tax Ordinance, 2001 (Clause 99) subject to the condition that not less than 90 percent of theaccounting income for the year, as reduced by capital gains, whether realized or unrealized, is distributed incash amongst the unit holders. The Management Company has distributed not less than 90 percent of itsannual accounting income in cash to avail the tax exemption. Accordingly, no provision for current and deferredtax has been made in these financial statements.

----------------- (Rupees) --------------

As per the requirements of the Finance Act, 2013, Federal Excise Duty (FED) at the rate of 16% (June30, 2015: 16%) on the services of the Management Company has been applied effective June 13, 2013.The Management Company is of the view that since the remuneration is already subject to provincialsales tax, further levy of FED results in double taxation, does not appear to be the spirit of the law. Thematter has been collectively taken up by the Management Company jointly with other Asset ManagementCompanies and CDC on behalf of Collective Investment Schemes through a constitutional petition filed inthe Honourable Sindh High Court (SHC) in September 2013. The Fund, as a matter of abundant caution,has charged FED and sales tax on service thereon in its financial statements with effect from June 13,2013. As at June 30, 2016, the Fund has held a provision for FED aggregating to Rs.18.28 million (June30, 2015: Rs.6.84 million).

The Sindh High Court in its decision dated July 16, 2016 maintained the previous order passed againstother constitutional petition whereby levy of FED is declared to be ‘Ultra Vires’ the Constitution. Themanagement is however of the view that since the Federal government still has the right to appealagainst the order, the provision held for FED shall not be reversed.

Further, as per the Finance Act, 2016, the management fees charged by the asset managementcompany have been declared exempt from the levy of FED with effect from July 01, 2016. Accordingly,no provision for FED is made from July 01, 2016 onwards.

The Finance Act, 2015 has excluded Mutual Funds and Collective Investment Schemes from thedefinition of 'industrial establishment' subject to WWF under WWF Ordinance, 1971. Accordingly, noprovision for WWF is made from July 01, 2015 onwards. However, provision made till June 30, 2015 hasnot been reversed as the above lawsuit is pending in the SHC.




16. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

16.1

16.2 The transactions with connected persons are in the normal course of business, at contracted rates.

16.3

June 30, June 30,2016 2015

Transactions during the year

Faysal Asset Management Limited (Management Company)Remuneration of the Management Company 62,742,241 28,874,978 Sales tax on Management fee 8,783,914 4,331,247 Reimbursement of expense to the Management Company

Bouns issue of 89 units in lieu of 5% payment of withholding tax(2015: Nil Units)

2,077,621 -

-

9,075

Issue of 3 units (2015: 1,532 units) 322

Redemption of 33,481 units (2015: 355,889 units) 3,405,042 38,731,156

155,410

Cash dividend paid 429 207,213 Bonus issue of 3 units (2015: 1,699 units) 255 172,425

Faysal Bank Limited (Group / Associated Company)Return on PLS savings accounts 656,459 607,740 Issue of 4,270,288 units (2015: 2,840,807 units) 450,000,000 300,000,000 Redemption of 1,672,405 units (2015: Nil units) 170,000,000 - Cash dividend paid 54,248,296 27,721,911 Bank charges 25,559 20,359

Faysal Asset Management Limited - Staff Provident FundRedemption of Nil units (2015: 15,821units) - 1,805,206

Faysal Asset Management Limited - Staff Gratuity FundRedemption of Nil units (2015: 5,678 units) - 647,899

Directors and Key Management Personnel of the Management Company

Issue of 15,813 units (2015: 435,821 units) 1,656,893 46,775,000 Issuance on conversion of Nil units (2015: 3,618 units) - 376,980 Redemption of Nil units (2015: 530,721 units) - 58,640,045 Redemption on conversion of Nil units (2015: 30,279 units) - 3,417,543 Bonus issue of 1,018 units (2015: 1,316 units) 103,507 133,495 Cash dividend paid - 153,780

Central Depository Company of Pakistan Limited - (Trustee of the Fund)Remuneration of the Trustee 4,399,653 2,486,325 Sales tax on Trustee fee 615,951 - Settlement charges 1,497,502 382,340

------------- (Rupees) -------------

Connected persons / related parties include Faysal Asset Management Limited being the ManagementCompany, CDC being the Trustee, other collective investment schemes managed by the ManagementCompany, Faysal Asset Management Limited - Staff Provident Fund, Faysal Asset Management Limited -Staff Gratuity Fund, Faysal Bank Limited, Faysal Bank Limited - Staff Provident Fund, Faysal BankLimited - Staff Gratuity Fund and other entities under common management and / or directorship and thedirectors and officers of the Management Company and the Trustee.

The details of significant transactions carried out by the Fund with connected persons / related parties andbalances with them at year end are as follows:


June 30, June 30,2016 2015

Unit holders holding 10% or more units

Habib Metropolitan Bank LimitedReturn on PLS savings accounts - 44,192 Redemption of Nil units (2015: 523,082 units) - 59,041,968

Attock Cement Pakistan LimitedIssue of Nil units (2015: 2,268,542 units) - 250,000,000 Redemption of Nil units (2015: 1,978,470 units) - 208,039,907 Redemption on conversion of Nil units (2015: 1,794,788 units) - 204,928,839

Bulk Management Pakistan (Pvt) LimitedRedemption of Nil units (2015: 596,391 units) - 65,000,000 Redemption on conversion of Nil units (2015: 838,168 units) - 90,738,188

Outstanding balances

Faysal Asset Management Limited (Management Company)Management fee payable 1,239,924 523,701 Sales tax payable on Management fee 173,589 46,099 Reimbursement of expenses payable to the Management

Company 2,077,621 - Units in issue 95 units (June 30, 2015: 33,481 units) 9,660 3,401,359

* Faysal Bank Limited (Group / Associated Company)Balance in PLS savings accounts 2,463,668 3,209,542 Return receivable on PLS savings accounts 10,244 14,778 Units in issue 6,954,909 units (June 30, 2015: 4,357,026 units) 707,175,147 442,630,288

Faysal Money Market Fund -(Fund under common management)Receivable from Faysal Money Market Fund 411,019,579 -Payable to Faysal Money Market Fund 166,396,177

Central Depository Company of Pakistan Limited - (Trustee of the Fund)Remuneration payable to the Trustee 360,361 219,132 Sales tax payable on Trustee fee 50,451 - Security deposit 100,000 100,000

Directors and Key Management Personnel of the Management CompanyUnits in issue 38,880 units (June 30, 2015: 22,049 units) 3,953,318 2,239,898

Unit holder holding 10% or more units

** Habib Metropolitan Bank LimitedBalance in PLS savings accounts - 61,047

* Faysal Bank Limited also holds more than 10% units in the Fund.

** Unit holding as at June 30, 2016 is less than 10%.

------------- (Rupees) -------------




June 30, June 30,2016 2015

Unit holders holding 10% or more units

Habib Metropolitan Bank LimitedReturn on PLS savings accounts - 44,192 Redemption of Nil units (2015: 523,082 units) - 59,041,968

Attock Cement Pakistan LimitedIssue of Nil units (2015: 2,268,542 units) - 250,000,000 Redemption of Nil units (2015: 1,978,470 units) - 208,039,907 Redemption on conversion of Nil units (2015: 1,794,788 units) - 204,928,839

Bulk Management Pakistan (Pvt) LimitedRedemption of Nil units (2015: 596,391 units) - 65,000,000 Redemption on conversion of Nil units (2015: 838,168 units) - 90,738,188

Outstanding balances

Faysal Asset Management Limited (Management Company)Management fee payable 1,239,924 523,701 Sales tax payable on Management fee 173,589 46,099 Reimbursement of expenses payable to the Management

Company 2,077,621 - Units in issue 95 units (June 30, 2015: 33,481 units) 9,660 3,401,359

* Faysal Bank Limited (Group / Associated Company)Balance in PLS savings accounts 2,463,668 3,209,542 Return receivable on PLS savings accounts 10,244 14,778 Units in issue 6,954,909 units (June 30, 2015: 4,357,026 units) 707,175,147 442,630,288

Faysal Money Market Fund -(Fund under common management)Receivable from Faysal Money Market Fund 411,019,579 -Payable to Faysal Money Market Fund 166,396,177

Central Depository Company of Pakistan Limited - (Trustee of the Fund)Remuneration payable to the Trustee 360,361 219,132 Sales tax payable on Trustee fee 50,451 - Security deposit 100,000 100,000

Directors and Key Management Personnel of the Management CompanyUnits in issue 38,880 units (June 30, 2015: 22,049 units) 3,953,318 2,239,898

Unit holder holding 10% or more units

** Habib Metropolitan Bank LimitedBalance in PLS savings accounts - 61,047

* Faysal Bank Limited also holds more than 10% units in the Fund.

** Unit holding as at June 30, 2016 is less than 10%.

------------- (Rupees) -------------




17. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

17.1 Market risk

(i) Interest rate risk

(ii) Foreign currency risk

(iii) Equity price risk

17.2 Liquidity risk

Management of the Fund estimates that an increase of 100 basis points in the fixed interest rate, withall other factors remaining constant, would increase the Fund's income and increase in the net assetsof the Fund by Rs.12.51 million (June 30, 2015: Rs.9.93 million) and a decrease of 100 basis pointswould result in a decrease the Fund's income and decrease the net assets of the Fund by the sameamount. However, in practice, the actual results may differ from the sensitivity analysis.

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument willfluctuate because of changes in foreign exchange rates. The Fund does not have any financialinstruments in foreign currencies and hence is not exposed to such risk.

The Fund’s objective in managing risk is the creation and protection of unit holders’ value. Risk is inherent in theFund’s activities, but it is managed through monitoring and controlling activities which are primarily set up to beperformed based on limits established by the Management Company, Fund's constitutive documents and theregulations and directives of the SECP. These limits reflect the business strategy and market environment of theFund as well as the level of the risk that Fund is willing to accept. The Board of Directors of the ManagementCompany supervises the overall risk management approach within the Fund (also refer Annexure I to thesefinancial statements which describes the risk management structure of the Fund). The Fund is exposed tomarket risk, liquidity risk and credit risk arising from the financial instruments it holds.

Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due tochanges in market variables such as interest rates, foreign exchange rates and equity prices.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument willfluctuate because of changes in market interest rates. As of June 30, 2016, the Fund's exposure tothe risk of changes in market interest rates relates primarily to bank balances, receivable againstMargin Trading System (MTS), debt securities and government securities. The bank balances anddebt securities are subject to rates as declared by the respective banks / institutions on periodicbasis. The government securities are subject to fixed interest rates and valued by reference to thequotations obtained from reuters page. Receivable against Margin Trading System (MTS) are alsosubject to fixed interest rates which have been negotiated between the participants. As at June 30,2016, approximately 90.10% (June 30, 2015: 98.87%) of the Fund's financial assets are subject tointerest rates.

Management of the Fund estimates that an increase of 100 basis points in the floating interest rate,with all other factors remaining constant, would increase the Fund's income and increase in the netassets of the Fund by Rs.26.77 million (June 30, 2015: Rs.10.60 million) and a decrease of 100 basispoints would result in a decrease in the Fund's income and decrease in the net assets of the Fund bythe same amount. However, in practice, the actual results may differ from the sensitivity analysis.

Equity price risk is the risk of volatility in share prices resulting from their dependence on marketsentiments, speculative activities, supply and demand for shares and liquidity in the market. Theequity price risk exposure arises from the Fund's investment in equity securities. The Fund does nothave any equity instrument and it is not exposed to such risk.

Liquidity risk is defined as the risk that the Fund will encounter difficulty in meeting obligations associatedwith financial liabilities. Liquidity risk arises because of the possibility that the Fund could be required topay its liabilities earlier than expected. The Fund is exposed to cash redemptions of its redeemable unitson a regular basis. Units are redeemable at the unit holders' option based on the Fund’s net assets valueper unit at the time of redemption calculated in accordance with the Fund’s constitutive documents.




Upto three months

More than three

months and upto one

latoT raey

Financial liabilitiesPayable to the Management Company 3,317,545 - - 3,317,545 Remuneration payable to the Trustee 360,361 - - 360,361 Accrued and other liabilities 4,058,907 - - 4,058,907 Payable on redemption of units 166,396,177 - - 166,396,177

174,132,990 - - 174,132,990

Upto three months

More than three

months and upto one

latoT raey

Financial liabilitiesPayable to the Management Company 523,701 - - 523,701 Remuneration payable to the Trustee 219,132 - - 219,132 Accrued and other liabilities 2,938,784 456,283 - 3,395,067

3,681,617 456,283 - 4,137,900

17.3 Credit risk

June 30, June 30,2016 2015

Bank balances and term deposit receipts 2,599,358,891 952,655,600 Term finance certificates - unlisted - 107,086,572 Sukuk certificates - Listed 77,418,750 - Security deposits 350,000 350,000 Income receivable on Margin Trading System (MTS) 3,772,413 2,788,522 Profit receivable on debt securities 873,742 5,259,482 Return receivable on bank balances and term deposit receipts 5,857,486 2,645,007 Receivable against issue of units 411,019,579 - Receivable against Margin Trading System (MTS) 605,015,568 -

3,703,666,429 1,070,785,183

More than one year

-------------------------- (Rupees) --------------------------

June 30, 2015More than one

year

All deposits with banks, CDC and NCCPL are highly rated and risk of default is considered minimal.Further, investment in government securities i.e. Market treasury bills and Pakistan Investment Bonds arenot exposed to credit risk.

Concentration of credit risk exists when changes in economic or industry factors affect the group ofcounterparties whose aggregate credit exposure is significant in relation to the Fund’s total creditexposure. The Fund’s portfolio of financial assets is broadly diversified and transactions are entered intowith diverse credit worthy counterparties thereby mitigating any significant concentration of credit risk. Thetable below analyses the credit quality of the Fund's exposure:

June 30, 2016

-------------- (Rupees) --------------

The table below summarises the maturity profile of the Fund's financial liabilities based on contractualundiscounted payments.

Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Fundby failing to discharge its obligation. The Fund’s policy is to enter into financial contracts with reputablecounter parties in accordance with the internal guidelines, offering document and regulatory requirements.The table below analyses the Fund's maximum exposure to credit risk. The maximum exposure is showngross, before the effect of mitigation through the use of collateral agreements at reporting date:

-------------------------- (Rupees) --------------------------




June 30, June 30,2016 2015

Rating category

AAA, AA+, AA, AA- 72.27 99.72 Unrated 27.73 0.28

100.00 100.00

The table below analyses the Fund's concentration of credit risk by industrial distribution:

Commercial banks 70.18 92.41 Electricity - 0.02 Chemicals - 7.29 Others 29.82 0.28

100.00 100.00

17.4 Unit holders' fund

The Fund has no restrictions or specific capital requirements on the subscription and redemption of units.

18. FAIR VALUE OF FINANCIAL INSTRUMENTS

Level 1: quoted prices in active markets for identical assets or liabilities;

Level 2:

Level 3:

% of assets exposed to credit risk

In accordance with the risk management policies, the Fund endeavours to invest the subscriptionsreceived in appropriate investments while maintaining sufficient liquidity to meet redemption requests,such liquidity being augmented by short-term borrowings or disposal of investments where necessary.

The capital of the Fund is represented by the net assets attributable to holders of redeemable units. Thecapital structure depends on the issuance and redemption of units. The Fund’s objective when managingunit holders’ fund is to safeguard the Fund’s ability to continue as a going concern in order to seekmaximum preservation of unit holders’ fund and an optimum rate of return by investing in avenues havinggood credit rating and liquidity and to maintain a strong capital base to support the development of theinvestment activities of the Fund.

those with inputs for the asset or liability that are not based on observable market data (unobservableinputs).

IFRS 13 establishes a single source of guidance under IFRS for all fair value measurements and disclosuresabout fair value measurement where such measurements are required as permitted by other IFRSs. It definesfair value as the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date (i.e. an exit price). Adoption of IFRS 13 hasnot affected the financial statements.

---------------- (%) ----------------

Under the NBFC Regulations, the minimum size of an open end scheme shall be one hundred millionrupees at all the times during the life of the scheme.

Financial assets which are tradable in an open market are revalued at the market prices prevailing on thestatement of assets and liabilities date. The estimated fair value of all other financial assets and financialliabilities is considered not significantly different from book value.

The following table shows financial instruments recognized at fair value, analyzed between those whose fairvalue is based on:

those involving inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and



23FA

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-

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77

,418

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-

77

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,750

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77,4

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over

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-

99

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99,6

78,8

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tan

Inve

stm

ent B

onds

546,

331,

675

-

-

54

6,33

1,67

5-

546,

331,

675

-

546,

331,

675

Fina

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not m

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at fa

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Ban

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2,59

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t Mar

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605,

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411,

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ther

rece

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le-

20,7

52,3

52-

20,7

52,3

52-

-

-

-

72

3,42

9,25

2

1,03

6,78

7,49

9

2,59

9,35

8,89

1

4,35

9,57

5,64

2-

723,

429,

252

-

723,

429,

252

Leve

l 1Le

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tal

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ities

275,680,701setacifitrec ecnanif

mreT --

-

107,

086,

572

-

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7,08

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es005,054,99

sllib yrusaert tekraM -

-

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99

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-

99

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99,4

50,5

00790,099,164

sdnoB tne

mtsevnI natsikaP -

-

-

46

1,99

0,09

7-

461,

990,

097

-

461,

990,

097

Fina

ncia

l ass

ets

not m

easu

red

at fa

ir va

lue

-stpiecer tisoped

mret dna secnalab knaB

-

952,

655,

600

952,

655,

600

-

-

-

-

Rec

eiva

ble

agai

nst M

argi

n Tr

adin

g S

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m (M

TS)

-

43

1,36

4,40

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431,

364,

401

-

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-

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-elbaviecer rehto dna stisope

D

-

23

,555

,336

23

,555

,336

-

-

-

-

668,

527,

169

43

1,36

4,40

1

97

6,21

0,93

6

2,

076,

102,

506

-

66

8,52

7,16

9-

66

8,52

7,16

9

June

30,

201

6eulav riaF

tnuoma gniyrra

C

Inve

stm

ents

Dep

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and

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30

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201

6, th

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and

leve

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------

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(Rup

ees)

-----

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(Rup

ees)

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(Rup

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June

30,

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5eulav riaF

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Financial liabilitiesPayable to the Management Company - 3,317,545 3,317,545 Remuneration payable to the Trustee - 360,361 360,361 Accrued and other liabilities - 4,058,907 4,058,907 Payable on redemption of units - 166,396,177 166,396,177

- 174,132,990 174,132,990

Financial liabilitiesPayable to the Management Company - 523,701 523,701 Remuneration payable to the Trustee - 219,132 219,132 Accrued and other liabilities - 3,395,067 3,395,067

- 4,137,900 4,137,900

19. SUPPLEMENTARY NON FINANCIAL INFORMATION

20. GENERAL

Figures are rounded off to the nearest rupee.

21. DATE OF AUTHORISATION FOR ISSUE

_____________________ _____________ _____________Chief Executive Officer Director Director

The information regarding pattern of unit holding, top ten brokers, members of the Investment Committee,performance table, fund manager, meetings of the Board of Directors of the Management Company and ratingof the Fund and the Management Company has been disclosed in Annexure I to the financial statements.


The financial statements were authorised for issue on September 26, 2016 by the Board of Directors of theManagement Company.

June 30, 2016

----------------------------- (Rupees) -----------------------------

June 30, 2015

----------------------------- (Rupees) -----------------------------

'At fair value through profit

and loss' - held-for-trading

Other financial liabilities Total

'At fair value through profit

and loss' - held-for-trading

Other financial liabilities Total




SUPPLEMENTARY NON FINANCIAL INFORMATIONDISCLOSURE REQUIREMENTS UNDER CLAUSE 6 - NOTES TO THE ACCOUNTS

SUB CLAUSE (D), (F), (G), (H), (I) AND (J) OF THE 5TH SCHEDULE TO THE NON BANKING FINANCE COMPANIES AND NOTIFIED ENTITIES REGULATIONS, 2008

Annexure I

(i) PATTERN OF UNIT HOLDING

No. of investors Units held %

019,459,62 ynapmoc detaicossA 17.20649,723,43ynapmoc ecnarusnI 10.70141,623,382sdnuF tnemeriteR 8.23030,022,31908slaudividnI 32.69

---sIFD dna sknaB591sCFBN 0.00692,506,2153rehtO 31.17

878 40,434,417 100.00

(ii) TOP TEN BROKERS BY PERCENTAGE OF COMMISSION PAIDJune 30, 2016

%Invest Capital Securities 51.57C & M Management Ltd 12.09BMA CAPITAL 10.55Global Securities Pakistan Limited 7.36Invest & Finance Securities Ltd. 5.93Next Capital Limited 4.81Magenta Capital 3.16JS Global Capital Limited 1.81Icon Securities Limited 1.60Elixir Seurities 1.12

June 30, 2015%

Invest Capital Securities (Pvt.) Limited 43.36 Invest & Finanace Limited 13.21 JS Global Capital Limited 10.87 C & M Management Limited 9.71 BMA Capital Limited 5.55 Arif Habib Securities Limited 3.93 Icon Securities (Pvt) Limited 3.40 Next Capital Limited 3.33 Elixir Securities Pakistan (Pvt) Limited 2.97 Global Securities Pakistan Limited 2.87

(iii) THE MEMBERS OF THE INVESTMENT COMMITTEE

Following are the members of the Investment Committee of the Fund:

ecneirepxEnoitacifilauQemaNMr. Enam Ullah Khan B. Eco , FSA, Accreditations Over 24 yearsMr. Najm Ul Hassan MBA, ACMA, CFA I Over 21 yearsMr. Vasseh Ahmed Master in Science Over 8 yearsMr. Ayub Khuhro BSC Economics, CFA I Over 8 yearsSyed Shahid Iqbal B. COM Over 26 yearsMr. Hassan Bin Nasir MBA Over 8 yearsMr. Sarwar Khan (Non-Voting) ACCA, CFA II Over 8 years



Category

Name

Faysal Savings Growth Fund




(iv) PARTICULARS OF FUND MANAGERS

deganaM semehcS tnemtsevnI evitcelloC rehtOnoitacifilauQemaNdnuF tekraM yenoM lasyaFMOC .BlabqI dihahS deyS

Faysal Financial Sector Opportunity Fund

June 30, 2016 June 30, 2015 June 30, 2014

(v) PERFORMANCE TABLE

177,273,111,4 stessa teN 2,004,256,526 1,418,355,85486.101tinu rep eulav tessa teN 101.59 101.46 86.101ecirp reffO 101.59 101.46 86.101tinu rep ecirp esahcrupeR 101.59 101.46

96.30188.41188.411tinu rep ecirp reffo tsehgiH 96.30188.41188.411tinu rep ecirp esahcruper tsehgiH

74.101ecirp reffo tsewoL 101.47 101.45 74.101tinu rep ecirp esahcruper tsewoL 101.47 101.45

%18.8%18.21%57.7:nruter latoT%42.0%41.0%70.0htworg latipac -%75.8%76.21%86.7noitubirtsid emocni -

Average annual return:(Launch date: July 05, 2013)

%18.8%18.21%57.7raey eno -%36.8%18.01%82.01sraey owt -%63.9%20.01%97.9sraey eerht -

Distribution per unit:%75.8%58.21%08.7)tinu rep %( noitubirtsid miretnI -

-)tinu rep %( noitubirtsid laniF - - 0.00%7.80% 12.85% 8.57%

(vi) Expense ratio from the November 25, 2015 to June 30, 2016

The Fund's past performance is not necessarily indicative of future performance. Therefore, the unit pricesand investment returns may go down, as well as up.

Faysal Savings Growth Fund (FSGF) has total expense ratio (TER) of 2.56%, the TER inlcudes 0.57% representing government levy and SECP fee.

--------------------- (Rupees) ---------------------

(i) PATTERN OF UNIT HOLDING

No. of investors Units held %

019,459,62 ynapmoc detaicossA 17.20649,723,43ynapmoc ecnarusnI 10.70141,623,382sdnuF tnemeriteR 8.23030,022,31908slaudividnI 32.69

---sIFD dna sknaB591sCFBN 0.00692,506,2153rehtO 31.17

878 40,434,417 100.00

(ii) TOP TEN BROKERS BY PERCENTAGE OF COMMISSION PAIDJune 30, 2016

%Invest Capital Securities 51.57C & M Management Ltd 12.09BMA CAPITAL 10.55Global Securities Pakistan Limited 7.36Invest & Finance Securities Ltd. 5.93Next Capital Limited 4.81Magenta Capital 3.16JS Global Capital Limited 1.81Icon Securities Limited 1.60Elixir Seurities 1.12

June 30, 2015%

Invest Capital Securities (Pvt.) Limited 43.36 Invest & Finanace Limited 13.21 JS Global Capital Limited 10.87 C & M Management Limited 9.71 BMA Capital Limited 5.55 Arif Habib Securities Limited 3.93 Icon Securities (Pvt) Limited 3.40 Next Capital Limited 3.33 Elixir Securities Pakistan (Pvt) Limited 2.97 Global Securities Pakistan Limited 2.87

(iii) THE MEMBERS OF THE INVESTMENT COMMITTEE

Following are the members of the Investment Committee of the Fund:

ecneirepxEnoitacifilauQemaNMr. Enam Ullah Khan B. Eco , FSA, Accreditations Over 24 yearsMr. Najm Ul Hassan MBA, ACMA, CFA I Over 21 yearsMr. Vasseh Ahmed Master in Science Over 8 yearsMr. Ayub Khuhro BSC Economics, CFA I Over 8 yearsSyed Shahid Iqbal B. COM Over 26 yearsMr. Hassan Bin Nasir MBA Over 8 yearsMr. Sarwar Khan (Non-Voting) ACCA, CFA II Over 8 years



Category

Name





Annexure II

(vi) MEETINGS OF THE BOARD OF DIRECTORS

Meetings Sep 23 Oct 06 Oct 28 Feb 29 March 18 March 31 April 22 June 27Attended 2015 2015 2015 2016 2016 2016 2016 2016

111101117namriahC ,irasnA namuaN .rM

Mr. Osman Khan, Director 6 1 1 1 0 1 1 0 1

Mr. Zahid Ahmed, Director 4 N/A N/A N/A 1 1 1 1 0

Syed Ibad ur Rahman Chishti, Director 8 1 1 1 1 1 1 1 1

Mr. Razi ur Rahman, Director 8 1 1 1 1 1 1 1 1

Mr. Enamullah Khan, Chief Executive Officer 8 1 1 1 1 1 1 1 1

(vii) MEETINGS OF THE AUDIT COMMITTEE

Following is the analysis of the attendance in the meetings of the Audit Committee of the Management Company during the year:

Meetings Oct 06 Oct-27 Oct-28 Feb-26 Apr-22Attended 2015 2015 2015 2016 2016

Mr. Razi ur Rehman, Chairman 5 1 1 1 1 1

Mr. Osman Khan, Director 4 1 1 1 1 0

Syed Ibad ur Rahman Chishti, Director 5 1 1 1 1 1

(viii) MEETINGS OF THE BOARD HR COMMITTEE

Following is the analysis of the attendance in the meetings of the Board HR Committee of the Management Company during the year:

Meetings Oct 13 Oct 28 Dec 30 March 04Attended 2015 2015 2015 2016

Mr. Osman Khan, Chairman 4 1 1 1 1

11114rotceriD ,nahK namhaR ru izaR .rM

Syed Ibad ur Rahman Chishti, Director 4 1 1 1 1

Mr. Enamullah Khan, Chief Executive Officer 4 1 1 1 1

(ix) RATING OF THE FUND AND THE MANAGEMENT COMPANY

The PACRA Credit Rating Agency Limited has assigned a "AA-(f)" fund rating to Faysal Saving Growth Fund as of December 31, 2015 and the JCR-VIS Credit Rating Company Limited (JCR-VIS) has awarded an "AM3++" asset manager rating to the Management Company as of May 04, 2016.


(i)

Following is the analysis of the attendance in the meetings of the Board of Directors of the Management Company during the year:

Name of DirectorsMeetings held on

Name of MemberMeetings held on

Name of DirectorsMeetings held on

financial statements for the year ended june 30, 2016 - faysal … · 06 faysal asset management...

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