Fund Manager Report February 2018 Feb - 18 (Final...Cement sector substantially underperformed...

Fund Manager Report February 2018

Fund Manager Review – February 2018

Macroeconomic Overview

During Feb-18, YoY CPI inflation clocked in at 3.80% YoY, 62bps lower than YoY CPI inflation recorded Jan-18 as average prices fell 0.31% MoM . 8MFY18 CPI inflation has averaged 3.84%. The MoM decline CPI index was primarily driven by a 1.1% dip in food prices in Feb-18, which fell for the third consecutive month in a row.

Non-food inflation clocked in at 4.9% YoY while core NFNE inflation stood at 5.2% YoY in Feb-18, both indices unchanged from the last month while MoM increase in both slowed down to 0.2% MoM from 0.8% in Jan-18.

Post currency devaluation in Dec-17 and a pre-emptive hike in the policy rate by SBP, CPI inflation has remained low in Feb-18 as well, due to lower food prices. The PKR remained virtually unchanged against the USD during Feb-18, hovering between 110.54 - 110.59. Ex-food price instability, CPI inflation may pick up in the coming months owing to impact of currency devaluation in December-17. We continue to anticipate CPI inflation to clock in at 4.3% YoY in FY18.

On the external front, Current Account Deficit (CAD) jumped to USD 1.6bn or 6.0% of GDP for the month of Jan-18 according to latest data available from SBP. This led to 7MFY18 CAD to clock in at 4.7% of GDP compared to 3.5% of GDP during 7MFY17. The increase in deficit was primarily driven by a 20.6%

MoM increase in deficit in Balance on trade of Goods, which increased to 10.2% of GDP in Jan-18, compared to 8.4% in Dec-17. Financial account inflows also recorded a large MoMdecrease owing to high base effect from Sukuk/Eurobond inflows of USD 2.5bn during Dec-17.

Fixed Income Review

Secondary market yields were pushed up by 20-25 bps across short term papers during Feb-18, with yields on 3m, 6m and 1yr paper closing the month at 6.21%, 6.36% and 6.62%. Yields on 3yr and 5yr PIBs rose by 31/25bps to 7.81% and 8.35% respectively. Yield on 10yr PIB edged up 15bps to 8.64%. In the two T-Bill auctions conducted during the month of Feb-18, SBP raised a total of PKR 1,374bn against a target of PKR 1,450bn and maturity of PKR 1,404.6bn. All bids in the PIB auction held during Feb-18 were rejected, against a target of PKR 50bn and maturity of PKR 8.1bn.

Equity Market Review

The benchmark KSE-100 index receded by 810pts or 1.8% during the month of Feb-18. The weak index performance was attributed to foreign outflows of USD 32.5mn, decline in regional stock markets over global sell-off owing to lower commodity prices, and local & geo-political uncertainty denting investors sentiments.

Moreover, uncertainty over FATF decision to classify Pakistan in the grey list for terrorist financing also kept local & foreign investors at bay. Autos, cement, & textile underperformed the index during Feb-18. Daily average traded volume fell by 13.3% to 204mn. Foreigners were net sellers where outflows were recorded in the banking (USD 21.4mn), E&P (USD 10.0mn), & fertilizer (USD 6.3mn) sectors.

On local front, insurance (USD 38.1mn), & companies (USD 7.7mn) were the major buyers.

Cement sector substantially

underperformed KSE-100 during Feb-18,

primarily due to below expected financial

results. Textile sector performance was hit

by slowdown in textile exports in Jan-18

compared to 1HFY18. Auto sector

underperformed the KSE-100 due to below

expected financial results along with profit

taking in stocks.

Oil prices remained volatile during the

month of Feb-18. Oil prices declined by

8.5% during the first half of Feb-18 over

concerns of rising inventories but recovered

later by 5.5% over Saudi & Russia backed

statement of further cuts in output to

stabilize the oil prices. Local petroleum

prices increased further by 4.4% MoM.

We expect some recovery in benchmark

index owing to positive developments in the

cement sector at the end of Feb-18 and

successful completion of senate elections.

Moreover, end of result season coupled

with lack of triggers may trim the trading

activity.

-

5.00

10.00

3m 6m 12m 3yr 5yr 10yr

Yield Curve

Jan-18 Feb-18

Source: MUFAP

Source: KSE

50

100

150

200

250

300

42,000

42,500

43,000

43,500

44,000

44,500

2-F

eb

8-F

eb 13

-…

16

-…

21

-…

26

-…

KSE-100 VolumeKSE-100 performance during Feb-18

-32

0

8

-8 -21

3

38

-3

15

-50

-30

-10

10

30

50

FIP

I

Ind

ivid

ual

s

Co

mp

anie

s

Ban

ks/D

FIs

Mu

tual

Fu

nd

s

Bro

kers

Insu

ran

ce

NB

FC

Oth

er

Portfolio flows - Feb-18 – USD mn

Source: NCCPL

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Feb

-17

Mar

-17

Ap

r-17

May

-17

Jun

-17

Jul-

17

Au

g-17

Sep

-17

Oct

-17

No

v-17

Dec

-17

Jan

-18

Feb

-18

YoY CPI inflation - Monthly trend

Source: PBS

110.52

110.54

110.56

110.58

110.60

PKR/USD during Feb-18

Source: SBP

0.0%

2.0%

4.0%

6.0%

8.0%

Dec

-17

Jan

-18

1Q

FY1

8

2Q

FY1

8

7M

FY1

7

7M

FY1

8

Current Account Deficit (% of GDP)

Source: PBS

0.00%

96.57%

3.43%

89.16%

10.35%0.49%

0.00%

50.00%

100.00%

150.00%

T-Bills Cash Other incl. receivables

31 jan 2018 28 feb 2018

Asset Allocation (% of Total Assets)

Leverage: Nil

Key Statistics

NAV (PKR/Unit) 103.6330

Net Assets (PKR mn) 522.797

Duration (Days) 63

Weighted Average Maturity (Days) 63

Expense Ratio (Annualized) 1.35%

Levy Ratio (Annualized) 0.26%

Since Inception Return 10.09%

Fund Information

Fund Objective

The objective of the Fund is to provide the investors with a high level of liquidity along with extremely low credit and price volatility. The Fund shall provide the facility to invest in an underlying portfolio primarily comprising of government securities (Treasury Bills) and other Authorized Investments which shall enable the investor to manage their liquidity efficiently.

Type of Scheme Open-end

Nature of Scheme Money Market Fund

Inception Date 18-Sept-09

Benchmark70% average 3 month PKRV + 30% Average 3-month deposit rate as selected by MUFAP

Dealing Day/cut off time

Monday – Friday 10.00 am

Pricing Mechanism Backward

Minimum Investment PKR 5,000

Front end load 0.00%

Back end load 0.00%

Management Fee 0.50% p.a.

Trustee Central Depository Company of Pakistan Ltd. (CDC)

Auditor KPMG Taseer Hadi & Co.

Registrar Askari Investment Management Ltd.

Listing Pakistan Stock Exchange

Askari Cash Fund (Formerly Askari Sovereign Cash Fund)

IC Members:

CEO Adeel Ahmed Khan

CFO Adeel Shahid

Fund Manager Faisal Raza

Monthly Review

In the month of Feb-18, Askari Cash Fund posted a return of 5.50% ascompared to its benchmark return of 5.29%. Assets under management ofthe fund closed the month at PKR 522 million as compared to PKR 534million in previous month. During the month funds were mostly invested ascash due to worthwhile rates offered by Banks. By month end, duration ofthe funds stood at 63 day as compared to 01 day in previous month.

February - 2018

MUFAP RECOMMENDED FORMAT

Performance* YTD MoM 365-Days 3-Years 5-Years

ACF 4.92% 5.50% 5.21% 7.00% 7.55%

Benchmark 5.21% 5.29% 5.17% 5.70% 7.00%

Historical Returns

FY13 FY14 FY15 FY16 FY17

ACF 9.24% 8.07% 8.86% 5.56% 8.49%

Benchmark 8.83% 8.88% 8.35% 5.87% 5.25%

Risk Profile of the Fund

AMC Rating “AM 3”

Fund Stability Rating AA+ by JCR-VIS

Risk Profile Low

Disclosures

SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers’ Welfare Fund’s liability to the tune of Rs.1.77million, if the same were not made the NAV per unit/ YTD return of Scheme would be higher by Rs.0.3526 / 0.35%.

AAA, 99.50%

N.R., 0.50%

AAA N.R.

Portfolio Quality (% of Total Assets)

Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved. The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. The calculation of performance does not include cost of front end load .Notes:*Operational Bank Account1) The calculation of performance does not include cost of front end load. 2) Taxes apply. Further, tax credit also available as per section 62 of the Income Tax Ordinance, 2001.

*Adjusted for dividend

Key Statistics






PAKOMAN Advantage Asset Allocation FundFebruary - 2018

Monthly Review

In the Month of Feb-18, Pak Oman Advantage Asset Allocation Fund showeda return of -2.17% against the benchmark return of -0.57%,. During themonth , Sector with major exposure were Cement, Oil and gas exploration,Banks ad automobile which closed at the month at 13.80%, 12.38%, 7.11%and 7.87% respectively. By the month end, equity exposure stood at 62.06%as compare to 50.20% in the previous month. Exposure against debts closedat 17.26% as compare to 18.13% in the previous month. Remaining fundsmaintained I Bank accounts ad receivable .

Top 10 holdings (% of Total Assets)

DG Khan Cement Co. Ltd. 5.23%

Indus Motor Company Limited 5.03%

Habib Bank Limited 4.69%

Hub Power Co. Ltd. 4.05%

Cherat Cement Co. Ltd. 3.79%

Pakistan Petroleum Limited 3.44%

Oil and Gas Development Co. Ltd. 3.32%

Engro Corporation Limited 3.27%

Pak Elektron Limited 3.12%

Pakistan Oil Fields Limited 2.86%

Equity Sector Allocation (% of Total Assets)

Cements 13.80%

Oil and Gas Exploration

12.38%

Automobile Assemblers

7.87%

Commercial Banks 7.11%

Power Generation and Distribution

4.05%

Others 13.19%

50.20%

29.09%

18.13%

2.59%

62.06%

2.37%

17.26% 18.31%

0.00%

20.00%

40.00%

60.00%

80.00%

Equities Cash* TFCs/Sukuks Others incl.receivables

31 jan 2018 28 feb 2018


Leverage: Nil

Historical Returns


POAAF 31.82% 8.74% 12.62% 7.76% 19.89%

Benchmark 31.06% 25.49% 12.50% 8.19% 10.21%

Performance(%)

YTD MoM 365-Days 3-Years 5-Years

POAAF -18.86% -2.17% -22.55% 12.38% 44.76%

Benchmark* -5.68% -0.57% -13.93% 13.57% 55.26%

IC Members:


CFO Adeel Shahid

Fund Manager Muneeb Sikander



Fund Information

Fund Objective

POAAAF shall invent in a diversified portfolio of Securities such as equities, profit bearing securities and other instruments, including securities available for investments outside Pakistan, subject to applicable laws.


Nature of Scheme Asset Allocation

Inception Date 30-Oct-08

BenchmarkBenchmark WA return of KSE-30 index + WA return of 6M KIBOR on actual proportion.


Mon – Fri 9:00am / 3:30 pm

Pricing Mechanism Forward



Back end load 2.00%

Management Fee 2.00 % p.a.

Trustee MCB Financial Services Ltd.

Auditor Deloitte Yousuf Adil Co. Ltd.

Registrar Jwafs Registrar





Fund Ranking 3 Star (short term) PACRA / 3 Star (Long term) PACRA

Risk Profile Medium

Top Exposures (As on 28-Feb 2018)

Instrument Price % of Total Assets

TPL Corporation Limited TFC (14-Dec-17) 100.0000 6.00%

International Brands Limited (15-Nov-17) 100.0000 11.26%

Disclosures:

SWWF (As per Circular 17 of 2012): The scheme has maintained provision against SWWF amounting Rs. 1.56 million. If the above recognition had not been made, the net asset value per unit/YTD return of the Scheme would be higher by 0.6374 per unit / 0.99 percent.

Key Statistics






PAKOMAN Islamic Asset Allocation FundFebruary - 2018

Monthly Review

In the moth of Feb-18, Pak Oman Islamic Asset Allocation Fund posted areturn of -2.23 % as compared to -1.05% benchmark rate. By the monthend, sectors with major exposures were oil ad gas exploration, Cements andfertilizer which closed the month at 11.41%, 8.54% and 6.32% respectively.Equity exposure stood at 48.85% as compare to 44.19% I the previousmonth. Exposure in Sukuk was 13.82% as compare to 11.52 in the previousmonth while reaming funds were maintained in Bank accounts adreceivable.



41.97% 44.19%

11.52%

2.33%

48.85%

34.77%

13.82%

2.56%

0.00%

20.00%

40.00%

60.00%

Cash* Equities TFCs/Sukuks Others incl.receivables

Jan-18 Dec-17


Leverage: Nil

Performance YTD MoM 365-Days 3-Years 5-Years

POIAAF -18.94% -2.23% -23.93% 13.49% 47.03%

Benchmark* -3.88% -1.05% -10.39% 23.25% 58.15%

IC Members:


CFO Adeel Shahid




Hub Power Company Ltd. 5.36%

Oil & Gas Development Co Limited 3.57%

Mari Petroleum 3.22%

DG Khan Cement Co. Ltd 2.67%



Pakistan Petroleum Limited 2.12%

Al-Ghazi Tractors Limited. 2.04%

Pakistan State Oil Limited 1.99%

Equity Sector Allocation (% of Assets)


11.41%

Cements 8.54%

Fertilizers 6.32%


5.36%

Oil and Gas Marketing

3.77%

Others 5.73%

Fund Information

Fund Objective

The primary objective is to provide investors with high current income and long term capital growth primarily by investing in a diversified portfolio of Shariah compliant investment, instruments, including Shariah compliant securities available for investment outside Pakistan, subject to applicable laws.


Nature of Scheme Shariah Complaint Asset Allocation


BenchmarkBenchmark WA return of KMI-30 index + WA return of 6M ADR of 3 A rated Islamic banks on actual proportion.

Shariah Advisor Mr. Najeeb Ahmed Khan


Mon – Fri 9:00am / 3:30 pm




Back end load 2.00%



Auditor A. F. Fergusons & Co.





Fund Ranking 3 Star (short term) PACRA / 3 Star (Long term) PACRA

Risk Profile Medium Top Exposures (As on 28-Feb-2018)



Disclosures:



Historical Returns


POIAAF 20.45% 17.32% 15.61% 10.37% 17.34%

Benchmark 30.49% 18.21% 13.32% 10.35% 19.31%

22.30% 19.92%

55.11%

2.67%

32.33%

19.82%

44.95%

2.90%

0.00%

20.00%

40.00%

60.00%

Cash Bank Placements Sukuk Other incl.receivables

31 jan 2018 28 feb 2018


Leverage: Nil

15.85%

14.70%

14.40%19.82%

32.33%

2.90%

AA AA- A+

A A- N.R.



POAIIF 5.00% 6.60% 4.94% 4.88% 4.79%

Benchmark* 2.47% 2.50% 2.48% 3.78% 5.10%

Key Statistics



Duration (Days) 0.20

Weighted Average Maturity (Years) 1.95




Fund Information

Fund Objective

The primary Objective is to provide investor(s) with competitive current income and long term capital growth primarily by investing in a diversified portfolio of shariah compliant securities available for investment outside Pakistan subject to applicable laws.


Nature of Scheme Shariah Complaint Income Scheme


BenchmarkBenchmark 6 month average deposit rates of 3 A rated scheduled Islamic Banks.



Mon – Fri 9:00am / 3:30 pm




Back end load 2.00%



Auditor A. F. Fergusons & Co.



PAKOMAN Advantage Islamic Income Fund

IC Members:


CFO Adeel Shahid

Fund Manager Sumaira Shaukat

Monthly Review

In the month of Feb-18, Pak Oman Advantage Islamic Income Fund posted areturn of 6.60% against its benchmark of 2.50%. Net Asset of the Fund wasPKR 248 million as compared to PKR 247 million. By the month end,exposure against sukuk stood at 44.95% as compared to 55.11% in theprevious month. Exposure against bank Placement closed at 19.82% ascompared to 19.92% in the previous month. Remaining Funds of the fundwere invested as cash with Islamic Bank/ Islamic windows of commercialBanks.

February - 2018


Historical Returns


POAIIF 7.34% 3.43% 4.77% 4.37% 6.42%

Benchmark 6.57% 6.54% 6.55% 4.89% 2.92%

Top Exposures (As on 28-Feb-2018)



TPL Trakker Limited (13-Apr-16) 103.8000 14.40%

Dawood Hercules Corp. Limited (28-Feb-18) 100.0000 7.93%

Dawood Hercules Corp. Limited II (16-Nov-17) 100.6000 6.78%



Fund Stability Rating A (f) PACRA

Risk Profile of the Fund Low to Medium

Disclosures

SWWF (As per Circular 17 of 2012): The scheme has maintained provision against SWWF amounting Rs. 0.705 million. If the above recognition had not been made, the net asset value per unit/YTD return of the Scheme would be higher by 0.1537 per unit/0.29 Percent.



1.65%

70.14%

18.49%8.81%

0.91%7.16%

69.37%

18.30%

4.55% 0.62%

0.00%

20.00%

40.00%

60.00%

80.00%

Cash* T-Bill TFCs Term Deposits Other incl.receivables

31 jan 2018 28 feb 2018


Leverage: Nil

69.37%

8.89%

13.96%

7.16%

AAA AA+ A+ A-



POGSF 4.65% 3.81% 4.63% 5.88% 6.63%

Benchmark* 6.00% 6.23% 6.03% 6.20% 7.26%

Key Statistics



Duration (Days) 61 Days

Weighted Average Maturity (Years) 1.04 Years




Fund Information

Fund Objective

The primary objective of Pak Oman Government Securities Fund (POGSF) is to provide its unit holders competitive returns from portfolio of investment with low credit risk with maximum possible preservation of capital via investing in Government Securities.


Nature of Scheme Income

Inception Date 28-July-11

Benchmark Average 6M PKRV rates.


Mon – Fri 9:00am / 3:30 pm




Back end load 2.00%



Auditor Deloitte Yousuf Adil Co. Ltd.



PAKOMAN Government Securities Fund

IC Members:


CFO Adeel Shahid

Fund Manager Faisal Raza


Monthly Review

In the month of Feb-18, Pak Oman Government Security Fund posted areturn of 3.81% against its benchmark 6.23%. On YTD basis, the fund posteda return of 4.65% as compared to benchmark return of 6.00% . By monthend, exposure against treasury bills stood at 69.37% against 70.14% in theprevious month. Exposure against term deposit were 4.55% against 8.81% inthe previous moth. Exposure against Term Finance Certificates TFCs weremaintained at 18.30% against 18.49% I the previous month while reamingfunds were invested in Cash.

February - 2018

Historical Returns


POGSF 9.22% 7.08% 8.63% 8.75% 4.28%

Benchmark 8.67% 8.67% 8.12% 5.84% 5.64%



JS Bank Limited (14-Dec-16) 99.6075 9.41%

Jehangir Siddiqui Company Limited (18-July-17) 101.6315 8.89%



Fund Stability Rating A+ (f) PACRA

Risk Profile of Fund Low to Medium

Disclosures




41.24%

36.98%

13.36%

5.10%0.00% 0.00%

3.32%

42.60%

36.09%

9.16%

1.21% 0.20%

10.73%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

TFCs Cash TDR PIB T-Bills Ready Future O.Receivables

31 jan 2018 28 feb 2018


Leverage: Nil

8.44%

5.09%

5.50%

19.50%

38.57%3.05%

7.70%

1.22%

0.20%10.73%

AAAAA+AAAA-A+AA-BBB+Ready Future



AHYS 4.25% 4.04% 4.70% 6.30% 8.97%

Benchmark 6.51% 6.74% 6.50% 6.56% 7.89%

Key Statistics


Net Assets (PKR mn) 4,831.434

Duration (Years) 0.14







Fund Stability Rating A by JCR-VIS

Risk Profile of Fund Medium

Fund Information

Fund Objective

The objective of the Fund is to provide investors an opportunity to make competitive returns from fixed income securities while targeting a portfolio duration of six months.


Nature of Scheme Aggressive Fixed Income Scheme

Inception Date 16-Mar-06

Benchmark Average 1 Year KIBOR


Mon – Fri 9:00am / 4:30 pm




Back end load 1.00%






Askari High Yield Scheme

IC Members:


CFO Adeel Shahid


Monthly Review

In the month of Feb-18, Askari High Yield Scheme posted a return of 4.04%as benchmark return of 6.74%. During the moth fund underperform itsbenchmark due to mark to market loss In TFCs held in portfolio. Asset undermanagement closed at PKR 4,831 millions as compared PKR 4,415 inprevious month. By month end, exposure against Term Finance Certificate(TFCs) were 42.60% as compared to 41.24% in previous month. Exposureagainst Term Deposits were closed at 9.16% of the total fund size.Remaining funds were invested as Cash with A ad above rated Banks.

February - 2018


Instrument Price% of Total

Assets

Dawood Hercules Corp. Ltd. (28-Feb-18) 100.0000 7.33%



MCB Bank Ltd (19-06-2014) 100.8266 4.01%

Soneri Bank Ltd (08-07-2015) 100.9928 3.92%

Bank of Punjab Ltd. (23-12-2016) 99.2619 3.79%

Jehangir Siddiqui Co. Limited – TFC (18-07-2017) 101.6315 3.10%

Byco Petroleum Ltd (18-01-2017) 99.9166 2.93%

TPL Corp Ltd. (Formerly TPL Trakker – 14-Dec-17) 100.0000 2.44%

K-Electric Ltd - (17-06-15) 101.3938 1.71%


Historical Returns


AHYS 1.61% 11.63% 12.16% 8.23% 5.34%

Benchmark 9.93% 9.83% 8.97% 6.53% 6.33%

Disclosures

SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers’ Welfare Fund’s liability to the tune of Rs. 10.398 million, if the same were not made the NAV per unit/ YTD return of Scheme would be higher by Rs 0.2250 / 0.22%.



55.13%

29.05%

11.20%4.62%

63.65%

17.23% 15.29%

3.83%

0.00%

20.00%

40.00%

60.00%

80.00%

Corporate Sukuk Cash Bank Placement Other incl.receivables

31 jan 2018 28 feb 2018


Leverage: Nil


AIIF 4.97% 5.65% 4.82% 5.19% 6.16%

Benchmark 2.47% 2.50% 2.48% 3.78% 5.10%

Key Statistics










Fund Stability Rating A+ by JCR-VIS


Fund Information

Fund Objective

The objective of the Fund is to provide investors a Shariah compliant product with stable halal income. The fund would target on capitalizing available opportunities in the Shariah compliant income generating instruments. The Fund will focus on superior quality portfolio compared with average portfolio quality of Islamic income funds in the industry and enhanced returns over a 3 month horizon.


Nature of Scheme Shariah Complaint Islamic Income


BenchmarkAverage 6 months Placement (Deposit) rate as selected by MUFAP.



Monday – Friday 9.00 am to 4.30 pm




Back end load 1.00%






Askari Islamic Income Fund

IC Members:


CFO Adeel Shahid


Monthly Review

In the month of Feb-18, Askari Islamic Income Fund posted a return of 5.65%as compared to its benchmark of 2.50%. Asset Under management wereclosed at PKR 379 millions as compared to PKR 517 millions in the previousmonth. By the month end, exposure against Corporate Sukuk were kept at63.65% as compared 55.13% in the previous month. During the monthexposure against Term Deposits was kept at 15.29% as compared to 11.20%in the previous month. Around 17.23% of the fund size were invested asCash with A ad above rated Islamic Banks/ Islamic windows of CommercialBanks.

February - 2018




TPL Trakker Limited (13-Apr-16) 103.8000 12.70%

Dawood Hercules Corp. Limited II (28-Feb-18) 100.0000 10.20%

Byco Petroleum Limited (18-Jan-17) 99.9166 10.19%

K-Electric Ltd (17-06-15) 101.3938 5.32%

Dawood Hercules Corp. Limited II (16-Nov-17) 100.6000 3.85%

Engro Fertilizer Limited (09-Jul-2014) 102.4187 3.56%

Fatima Fertilizer Limited (28-Nov-16) 101.9092 2.55%


Historical Returns


AIIF 8.74% 7.93% 6.52% 5.08% 5.49%

Benchmark 6.65% 7.34% 6.41% 4.31% 2.92%

Disclosures

SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers’ Welfare Fund’s liability to the tune of Rs.1.17 million, if the same were not made the NAV per unit/YTD return of Scheme would be higher by Rs.0.3242 / 0.32%.

10.19%

5.32%

15.29%

20.15%12.70%

15.29%

17.23%

3.83%AAAAA+AAAA-A+AA-N.R.




11.15%

69.11%

2.85%

16.09%

0.80%

12.34%

76.21%

1.75%8.95%

0.75%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

TFCs T-Bill Cash Term Deposits Other incl.receivables

31 jan 2018 28 feb 2018


Leverage: Nil


ASYE 4.00% 3.41% 4.12% 6.35% 7.99%

Benchmark 6.00% 6.23% 6.03% 6.20% 7.26%

Key Statistics










Fund Stability Rating A+ by JCR-VIS


Fund Information

Fund Objective

The objective of the Fund is to generate relatively higher yield than the conventional bank deposits, from a portfolio constituted of credit worthy sovereign instruments and banking sector fixed income instruments and deposits.


Nature of Scheme Income Scheme

Inception Date 07-May-12

Benchmark Average 6 month PKRV


Mon – Fri 9:00am / 4:30 pm




Back end load 0.00%






Askari Sovereign Yield Enhancer

IC Members:


CFO Adeel Shahid

VP- Fund Management Faisal Raza

Monthly Review

In the month of Feb-18, Askari Sovereign Yield Enhancer posted a return of3.41% against a benchmark of 6.23%. On year to date basis fund posted areturn of 4.00% as compared to benchmark return of 6.00%. By month end,exposure against Treasury Bills were kept at 76.21% against 69.11% in theprevious month. During the month Term Finance Certificate were stood at12.34% as compared to 11.15% in the previous month. Exposure againstBanks placement were closed at 16.09% while remaining fund were investedas Cash with Banks.

February - 2018

Top Exposures (As on 28 Feb 2018)


Bank of Punjab TFC 99.2619 12.34%


Historical Returns


ASYE 10.98% 8.83% 10.74% 9.21% 4.83%

Benchmark 8.92% 8.09% 8.33% 5.31% 6.10%

Disclosures

SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers’ Welfare Fund’s liability to the tune of Rs.2.22 million, if the same were not made the NAV per unit/ YTD return of Scheme would be higher by Rs.1.24 / 1.22%.

AAA, 76.21%

AA-, 12.34%

A+, 8.95%

AAA

AA-

A+




Key Statistics





Since Inception Return** 28.35%

Askari Asset Allocation FundFebruary - 2018

Top 10 holdings (% of Assets)

The Searl Company Limited 4.48%

D.G. Khan Cement Limited 2.64%

International Steel Limited 2.08%

Oil and Gas Development Limited 1.76%

Ghani Gasses Limited 1.74%

Pak Electron Limited 1.66%

Nishat Chunian Limited 1.53%

Loads Limited 1.30%

Al-Ghazi Tractors Limited 1.21%

Askari Bank Limited 1.04%


Pharmaceuticals 4.48%

Cements 2.88%


2.74%

Engineering 2.50%

Chemicals 1.74%

Others 5.31%

11.38%

52.62%

12.76%

23.25%21.32%

53.67%

16.05%8.96%

0.00%

20.00%

40.00%

60.00%

Equitiy Cash TFCs/Sukuk Other receivables

31 jan 2018 28 feb 2018


Leverage: Nil

Historical Returns


AAAF 39.87% 19.31% 15.40% -6.25% 10.49%

Benchmark 22.73% 18.24% 17.85% 3.84% 10.03%


AAAF -15.72% -0.76% -19.93% -8.91% 42.89%

Benchmark -10.00% -0.06% -14.59% 2.76% 62.69%

IC Members:


CFO Adeel Shahid

Fund Information

Fund Objective

The objective of the Fund is to provide investors, an investment solution through disciplined and structured investment techniques. The Fund shall target capitalizing on opportunities available in both fixed income and equity markets using in-house research and proprietary investment matrix.


Nature of Scheme Asset Allocation Fund


Benchmark

Weighted Average Daily Return of KSE-30 Index and 6 month KIBOR as per amount investment in equities and fixed income investments including cash and cash equivalents respectively.


Mon – Fri 9:00am / 4:30 pm




Back end load 2.50%









Fund Ranking 1 Year - 2 Star, 3 Year – 2 Star, 5 Year - 2 Star by JCR-VIS

Risk Profile Medium

Disclosures:

SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers’ Welfare Fund’s liability to the tune of Rs.0.674 million, if the same were not made the NAV per unit/ YTD Return of Scheme would be higher by Rs.0.1939 / 0.36%.

Monthly Review

In the month of Feb-18, Askari Asset Allocation Fund posted a return of -0.76% as compared to benchmark return of -0.06%. Net Asset of the Fundsstood at PKR 154 million as compared to PKR 192 million in the previousmonth. By the month end, equity exposure was increased to 21.32% ascompared to 11.38% in the previous month. Cash was Maintained at 53.67%of the total fund size.


**Absolute *Adjusted for dividend


Instrument Price% of Total

Assets

TPL Corp. Ltd. (Formerly TPL Trakker Ltd. ) (14-Dec-17) 100.0000 7.41%


Key Statistics



Expense Ratio (Annualized) 5.29

Levy Ratio (Annualized) 0.57


Askari Islamic Asset Allocation FundFebruary - 2018




Pakistan Petroleum Ltd. 5.57%

Mari Petroleum Limited 5.44%

D.G Khan Cement Co. Limited 5.40%

Hub Power Company Limited 5.08%

Al-Ghazi Tractors Limited 3.68%



Pioneer Cement Limited 2.42%



20.64%

Cements 13.12%

Fertilizers 11.13%


5.44%

Power Generationand Distribution

5.08%

Others 11.52%

72.22%

23.36%

4.41%

70.30%

25.94%

3.76%

0.00%

20.00%

40.00%

60.00%

80.00%

Equitiy Cash Others receivables

31 jan 2018 28 feb 2018


Leverage: Nil

Historical Returns


AIAAF 30.80% 12.53% 12.32% -2.82% 13.08%

Benchmark 27.51% 17.21% 12.44% 9.54% 10.03%


AIAAF -17.21% -3.11% -19.96% -4.49% 28.84%

Benchmark -6.63% -1.66% -10.04% 21.45% 55.60%

IC Members:


CFO Adeel Shahid


**Absolute *Adjusted for dividend

Fund Information

Fund Objective

The objective of the Fund is to provide investors a Shariah compliant investment solution through disciplined and structured investment techniques. The fund shall target capitalizing on opportunities available in both Shariah compliant debt and equity markets using in-house research and proprietary investment matrix.


Nature of Scheme Shariah Complaint Asset Allocation


Benchmark

Weighted Average Daily Return of KMI- 30 Index and 6 month average deposit rate of 3 Islamic Banks as per amount invested in equities and fixed income investments including cash & cashequivalents respectively.



Mon – Fri 9:00am / 4:30 pm




Back end load 5.00%









Fund Ranking 1 Year – 3 Star, 3 Year – 1 Star, 5 Year - 2 Star by JCR-VI

Risk Profile Medium

Disclosures:

SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers’ Welfare Fund’s liability to the tune of Rs.0.399 million, if the same were not made the NAV per unit/ YTD return of Scheme would be higher by 0.2309 / 0.19%.

Monthly Review

In the month of Feb-18, Askari Islamic Asset Allocation Fund posted areturn of -3.11% as against the benchmark return of -1.66%. Net Assets ofthe fund stood at PKR 169 million as compared to the PKR 124 million inthe previous month. During the month equity exposure stood at 70.30% ascompared to the 72.22% in the previous month. At the month end, Cashwas maintained at 25.94% of the total fund size as compared to the 23.36%of the previous month, where as there was no fresh exposure in Ijara Sukukwitnessed.

Key Statistics






Askari Equity FundFebruary - 2018


Indus Motor Company Limited 7.88%

Hub Power Company Limited. 6.61%

Habib Bank Limited 6.06%

DG Khan Cement Co. Limited. 5.71%



Mari Petroleum Limited. 4.16%

Pakistan Petroleum Limited. 3.85%


MCB Bank Limited 3.10%



15.21%

Cements 14.68%


11.23%

Commercial Banks 10.77%


6.61%

Others 14.33%

80.38%

17.14%

2.45%

77.09%

19.74%

3.17%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

Equity Cash Others Receivables

31 jan 2018 28 feb 2018


Leverage: Nil

Historical Returns


AEF 42.07% 28.73% 17.59% -5.25% 14.80%

Benchmark 35.95% 25.96% 5.67% 0.37% 12.00%


AEF -17.59% -3.30% -22.78% -4.25% 55.90%

Benchmark -10.29% -1.74% -17.34% 3.44% 49.01%

IC Members:


CFO Adeel Shahid



**Absoulute *Adjusted for dividend

Fund Information

Fund Objective

The objective of Askari Equity Fund (AEF) is to provide equity investors a vehicle for their long term investment needs, capable of locking in capital appreciation and securing reasonable dividends from listed equity securities. The Fund would seek to replicate benchmark returns and reduce volatility compared with the benchmark through efficient equity allocations, enhancing “Risk Adjusted Returns”.


Nature of Scheme Equity Fund

Inception Date 30-Mar-12

Benchmark KSE-30 Index



Mon – Fri 9:00am / 4:30 pm




Back end load 0.00%









Fund Ranking1 Year - 2 Star, 3 Year – 1 Star, 5 Year – 1 Star by

JCR-VIS

Risk Profile of Fund Medium to High

Disclosures:

SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers’ Welfare Fund’s liability to the tune of Rs.0.459 million, if the same were not made the NAV per unit/YTD return of Scheme would be higher by Rs.0.3499 / 0.28%.

Monthly Review

In the month of Feb-18, Askari Equity Fund posted a return of -3.30% ascompared to its benchmark KSE-30 return of -1.74%. Net Assets of the fundstood at PKR 133 million as compared to PKR 137 million in the previousmonth. By the month end, equity exposure was 77.09% as compared to80.38% of the previous month. Cash and cash equivalent closed the monthat 19.74% % as compared to 17.14% in the previous month.

Non Compliant Exposures / Assets in Askari High Yield SchemeFebruary - 2018

Name Of Non Compliant InvestmentType of

Investment

Value of Investment

Before Provisioning

Provision held if any

Value of Investment

After Provisioning

Suspended Markup

% of Net Assets% of Gross

Assets

Saudi Pak Leasing TFA 15,000,000 15,000,000 - - 0% 0%

Trust Investment Bank TFA 129,111,798 129,111,798 - 62,730,846 0% 0%

Pace Pakistan Limited TFC 74,895,000 74,895,000 - 51,871,317 0% 0%

Agritech Limited (30-11-2007) TFC 59,952,000 59,952,000 - 39,430,381 0% 0%

Agritech Limited (01-01-2012) TFC 11,875,000 11,875,000 - 7,078,801 0% 0%

New Allied Electronics (LG) PPTFC 10,221,613 10,221,613 - 14,300,909 0% 0%

Trust Investment Bank Limited TFC 18,742,500 18,742,500 - 10,962,447 0% 0%

Dewan Cement Limited TFC 125,000,000 125,000,000 - 167,150,856 0% 0%

World call Telecom Limited TFC 8,994,598 8,994,598 - - - -

Security Leasing Company Limited TFC 12,322,907 12,322,907 - - 0% 0%

Total 483,083,794 479,665,874 3,417,920 353,525,557 0.00% 0.00%

Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and risks involved. The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. The calculation of performance does not include cost of front end load .


Below are the details of non-complaint exposure/assets in our funds. These non-compliant exposures/assets include non-performing assets which have been classified in line with the applicable SECP circulars and the provisioning policy** (available on our web site) approved by the Board of Directors of Askari Investment Management Limited.

**Presents market value of shares

Fund Manager Report February 2018 Feb - 18 (Final...Cement sector substantially underperformed...

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Transcript of Fund Manager Report February 2018 Feb - 18 (Final...Cement sector substantially underperformed...