feb fmr 2017 updated benchmarks - faysal fundscement sector was amongst largest contributors to the...

February 2017

Disclaimer: The 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 inmutual funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependent on forces and factors affecting the capital markets. These may goup or down based on market conditions. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the Investment policies and therisks involved.

Economic ReviewOver the past few months, Pakistan’s economy has received largely positive coverage in a number of international media outlets. For a country usually in the news for its endemic political instability and prolonged battles with Islamist militancy, this shift in focus heralds an interesting change. Pakistan’s economy could become the 16th largest by 2050 based on its gross domestic product (GDP) at purchasing power parity (PPP), said a report prepared by PricewaterhouseCoopers (PwC), a multinational professional services network headquartered in London and considered among the ‘Big Four’ auditors. This means the country would overtake Italy and Canada, which currently rank at 12th and 17th places, respectively.There is no doubt that Pakistan’s economy has seen qualitative shifts towards increased marketization and commodification in the past two decades. However, the claims extrapolated from these shifts require further scrutiny. Beyond macroeconomic indicators, another factor that has received considerable attention in recent coverage is the country’s growing middle class. One recent piece, published in the Wall Street Journal, cited this burgeoning middle class as the primary fuel behind the twin boon of democratic stability and economic growth.Pakistan's consumer price index (CPI) inflation rate accelerated to 4.22% year-on-year in February from 3.66% in January, setting ground for a tight monetary policy stance, as perishable food (food inflation, which accounts for one-third of the consumer price index (CPI) inflation basket, rose 3.1%) and fuel prices were seen rebounding. On a month-on-month basis, prices rose by 0.28% in February. The rise in month-on-month inflation was mostly due to higher prices of food items such as tomatoes, peas, oranges and chicken.The total liquid foreign exchange reserves of the country reached $21.822 billion during the month ended. Forex reserves held by the State Bank of Pakistan (SBP) stood at $16.851 billion, while the foreign exchange reserves of commercial banks amounted to $4.971 billion.Pakistan’s current account deficit widened by 90% in the first seven months (Jul-Jan) of 2016-17, standing at $4.72 billion compared with $2.48 billion in the same period of the previous year. his year, the gap in the first seven months (Jul-Jan) of the ongoing fiscal year 2016-17 has already widened by 45% compared to the entire last year’s level. The current account deficit was equal to 2.5% of gross domestic product in July-January 2016/17 as against 1.5% ($2.479 billion) a year earlier, according to the State Bank of Pakistan (SBP). In January, the current account deficit amounted to $1.189 billion as compared to $1.025 billion in the previous month. Ballooning current account deficit was due to higher trade gap and slowdown in workers’ remittance inflows and foreign investment.Remittances, sent by Pakistanis living aboard, continue to decline since the start of this fiscal year. Remittances decreased 1.87% to $10.946 billion during 7MFY17. Economists feared that prospects of the balance of payments would further be bleak in the months to come. Rising global oil prices, dried foreign inflows and lower exports would build pressure on the current account position. The balance of trade in goods and services posted a deficit of $15.208 billion in July-January FY17 compared with $12.449 billion in the same period of the last year. Trade deficit rose to $17.428 billion in this period from $13.544 billion a year ago due to increased exports and decreased imports. Exports fell to $11.685 billion from $12.073 billion, while imports rose to $29.113 billion from $25.617 billion. An expected spike in the oil and non-oil import bills would exert pressure on foreign exchange reserves of the country. Increasing share of liquefied natural gas in the import mix may become more challenging to bolster the current account position. A structural weakness in the external account depicted by continuous drop in exports and remittances pose threat to the economic sustainability.Foreign direct investment (FDI) is somehow a source of support to the balance of payment position. The country attracted $1.161 billion in FDI in the July-January period of 2016/17, up from $1.056 billion a year earlier. That showed a 9.9% increase in FDI over the corresponding period of the last fiscal year. Pakistan’s image as an attractive investment destination is improving, despite security challenges and political instability. The country mostly received FDIs from Netherlands, China, and Turkey. Investment made by Dutch companies in the country accounted for almost half of the FDI flows recorded during July-January FY17. The Dutch companies invested $456 million in some businesses, particularly, the food sector in July-January FY17 compared with $9.6 million in the corresponding period of last year.Large scale manufacturing (LSM) sector posted year-on-year 3.9% growth in the first half of the current fiscal year as construction boom aroused demand of steel products amid the China-sponsored infrastructure developments. The PBS recorded 7.04% rise in LSM output in December 2016 over the last year and month-on-month 12.89% increase. This healthy growth in LSM sector can enable the government to achieve the GDP’s growth target of 5.7% during the ongoing financial year.Iron and steel production recorded the highest growth of 15.63% during the July-De-cember period of 2016/17. Electronics manufacturing registered the second highest rise of 14.35% in the period under review, followed by non-metallic mineral products (9.31%), pharmaceuticals (7.9%), food, beverages and tobacco (6.95%), automobiles (6.67%), paper and board (5.69%), fertilizers (3.47%), rubber products (0.45%) and textile (0.14%). In December 2016, iron and steel production of 20.85% was also the highest among all the major industries, followed by food, beverages and tobacco (16.24%) and paper and paper board (16.13%). Improving economic indicators are encouraging to local as well as foreign investors. Pakistan’s strategic location at the crossroads of the Middle East has always been prized for South Asia, Central Asia and its economic potential.The current performance of Pakistan’s economy is living up to its promise.

Equity Review

Money Market ReviewMarket remained short of liquidity during the month of February’17 and to accomplish this liquidity shortage, SBP conducted 5 OMO – Injections where the total participation stood at PKR 4.126trn and total accepted amount was PKR 3.908trn and the weighted average rate of all OMO – Injections was 5.82%. This is 0.64% more participation and 0.76% higher acceptance relative to last month.Central bank conducted two T bill auctions during the month under discussion, where in first auction the cut offs were increased by 04 bps for 3M – 5.9463%, were increased by 06bps for 6M – 5.9258% and 03 bps for 12M – 5.9598%. However, in second auction yield curve remain stagnant at current levels across all maturities. The total amount realized was PKR 1,254.2bn against the target of PKR 1,100bn and total maturities of PKR 1,155.34bn.In the monthly PIB auction The State bank of Pakistan (SBP) sold PKR 58.178 billion worth of long-term Pakistan Investment Bonds (PIBs).The raised amount was higher than the pre-auction target of PKR 50 billion where the major concentration of investors was witnessed in 3yrs tenor followed by 5yr and 10yr. Cut – offs for the auction held during the period under discussion were marginally decreased to; 3yr – 6.4066%%, 5yr – 6.8994%, 10yr – 7.9406% and 20yr- no bids. Moody’s & Fitch’s Ratings expected Pakistan’s real GDP to expand with progressing remarks on Country’s prospects. Fitch Ratings affirmed Pakistan’s Long-Term Foreign and Local-Currency Issuer Default Ratings (IDRs) at 'B' with stable outlook, confirming the progress achieved by the present Government under its economic reform agenda in recognition of the country’s strengthened foreign exchange reserves, fiscal deficit reductions and significant progress made on structural reforms. Furthermore, Moody’s Credit rating agency appraised Pakistani banks, with stable deposit-based funding structure, poised to benefit during the current and next year from a spurt in loan growth fuelled by the economic stimulus measures of the present government and China-fund-ed infrastructure projects, viewing outlook for Pakistan’s banking system as stable on expectation of how bank creditworthiness will evolve in this system over the next 12 to 18 months. It rated “b3” average asset-weighted Baseline Credit Assessment (BCA), or standalone credit strength, for top five largest banks, which together account for around 50% of total banking system deposits.

PSX 100 index remained range bound during the month as market participants weighed political and macroeconomic risks amid tightening regulatory compliance, which were visible in thin participation as volumes for overall PSX were down 20.25% MoM at 353.51mn shares (PSX-100 volumes: 140mn), while avg. traded value decreased by 25% MoM (US$ 161.87mn). Supreme Court finally reserved its judgment over Panama case, to be announced later, while market participants kept a close eye for clarity on the subject. Furthermore, despite strong corporate result stocks failed to attract investor attention. The benchmark PSX 100 Index closed the month at 48,534.2 points (-0.5% MoM, -223.4 points), moving in a range of 4.5% (2,176 points) and making a high/low of 50,322.6 points/48,146.7 points. FY2017TD return of the Index stands at 1.5% (1.1% in USD terms).After three consecutive months of unabated outflow, Foreigners continued to be net sellers of US$ 29.6mn in Feb 2017, though relatively 73% lower than last month’s wipe out of US$ 110mn worth of equities. On a YTD basis, Foreigners have incurred net outflow of US$ 140.5 mn worth of equities. Local asset managers thrived again with net buying of US$ 49 mn with Retail Individuals supporting this rally incurred net buying of US$ 43 mn. On a YTD basis, MF have emerged net buyers of US$ 91.9 mn, while Individuals have been net sellers of US$ 3.4mn so far.Dissecting sector’s performances, index heavy-weights that dragged the overall benchmark index were Power, Autos, E&P’s, Banks and Chemicals declining by 6%, 3%, 2%, 1% and 1% respectively. Sectors contributing positively to the market were Gas distribution, Paper & Board and Insurance gaining 17%, 16% and 13% respective-ly. Cement sector was amongst largest contributors to the index during the month as rumors regarding Bestway Cement’s acquisition of Dewan Cement’s North Plant hit the bourse, thereby reducing the risk of Chinese entrance in the domestic cement manufac-turing industry. Also expansion plans by local manufacturers kept the sector abreast.A latest report of Leading International Magazine Forbes elucidated that, the bullish trend of the stock exchange that soared close to 500% since 2009 with 56% increase during the last twelve months, driven by a number of favorable economic fundamentals. It also noted that investor hype about the potential of the Pakistani economy could further take the equity market much higher. Moving ahead, market trajectory is likely to be dictated by developments on panama case in the upcoming month along with uncertainty of law and order conditions as results for all heavy weight sectors have been announced already, while chatter regarding curbs on illegal financing by brokerage houses may keep a lid on overall volumes. The key theme plays of MSCI reclassification, PSX-divestment, influx of foreign funds and timely completion of CPEC, are long-term triggers for the index. PSX-100 is currently trading at a PER of 9.7x (2017) against Asia Pac regional average of 14.5x while offering twice as better dividend yield of ~5.0 % versus ~2.5% offered by the region at a P/Bv of 1.7x.

Faysal Money Market Fund

Faysal Money Market Fund (FMMF) seeks to provide stable andcompetitive returns in line with the money markets exhibiting lowvolatility consistent with capital preservation by constructing a liquidportfolio of low risk short term investments yielding competitive returns.

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 inmutual funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependent on forces and factors affecting the capital markets. These may goup or down based on market conditions. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the Investment policies and therisks involved.

FY17 to Date

Month on Month

1 year Trailing

7.43%

4.31%

6.87%

5.25%

5.27%

5.33%

Returns (%)FMMFBenchmark (YTD)

FY 148.35%8.44%

FY 139.06%8.83%

FY 1210.98%9.98%

106.101,098.01

Government SecuritiesAAAAA+AANR (include receivables against sale of Government Securities)

79.81%0.02%

10.31%9.68%0.18%

FMMF Benchmark(Annualized % p.a Holding Period)

FY 158.64%7.72%

AA (f) (PACRA)

PKR 5,000

Deloitte Yousuf Adil,Charted Accountants

FY 165.67%5.34%

70% Three months PKRV rates + 30% three monthsaverage deposit rates of three –AA ratedscheduled Banks

Min Subscription

Jan’17Feb’17

Cash18.43%

Othersincluding

Receivables,0.54%

T-Bills71.77%

T-Bills79.81%

COI/Placementswith Banks

andDFI9.27%

Cash,9.71%

COI/Placements with Banks and DFIs,

10.30%

T-Bills,

Othersincluding

Receivables,0.18%

5.19

%

5.19

%

5.03

%

4.87

%

4.82

%

4.81

%

4.82

%

5.24

%

5.26

%

5.29

%

5.25

%

5.27

%

5.05

%

5.08

%

5.68

%

5.99

%

5.47

%

5.33

%

5.60

%

4.82

%

4.61

%

5.24

%

22.4

7%

4.31

%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Faysal Money Market Fund yielded a return of 4.31% on a month-on-month basis whereas the year-to-date return consolidated at 7.43%. During the month, exposure was increased in T-Bills to 79.81% and placements with financial institutions to 10% as superior yields were on offer. Your fund is actively exploring lucrative investment avenues and trading opportunities to generate greater gains.

Mr.Razi Ur Rahman Khan

Mr.Syed Shahid IqbalMs.Sania Awan

SR. Fund Specialist - Fixed IncomeMr.Ayub Khuhro

Chief Executive Officer

Acting Head of Research

Chief Investment Officer

INVESTMENT COMMITTEE

Weighted Average Maturity* 6.05 Days1.25%

*Excluding Government Securities

Total Expense Ratio TER includes 0.20% representing government levy and SECP feeexcluding reversal of WWF.

The Scheme has maintained provisions against Sindh Workers' Welfare Fund liabilty to the tune of Rs. 1,911,612 as at February 28, 2017. If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs 0.185 (0.16%). For details investors are advised to read the Note 6.1 of the latest financial statements for the year ended December 31, 2016.

Faysal Savings Growth Fund

To generate competitive returns by investing primarily in debt and fixed income instruments having investment grade credit rating.Investment Objective


105.84

2,886.51

6.15%

5.81%

6.15%

6.08%

6.13%

6.15%

(include receivables against sale of investments)

FY17 to Date

Month on Month

1 year Trailing

FSGF Benchmark(Annualized % p.a) Holding Period

AA- (f) (PACRA)

FY 15

12.81%

6.61%

FY 14

8.81%

9.76%

FY 13

8.67%

9.88%

Six months KIBOR rates

FY 16

7.75%

6.50%

Feb’17

Othersincluding

Receivables,0.58%

TFC/Sukuk,20.93%

Cash20.61%

PIBs,5.21%

MTS30.68%

T-Bills,21.98%

HBL TFC

Bank Al Habib Limited TFC

JS TFC

BOP TFC

6.86%

3.46%

5.47%

5.13%

Government Securities 27.20%AAA 6.86%AA+ 23.50%AA 2.21%AA- 5.57%A+ 5.47%MTS (Unrated) 30.68%NR 0.58%

Jan’17

Othersincluding

Receivables,0.83%

TFC/Sukuk,20.86%

Cash7.93%

T-Bills28.57%

PIBs11.16%

MTS31.0%

6.31

%

6.32

%

6.27

%

6.06

%

5.98

%

5.98

%

6.00

%

6.05

%

6.09

%

6.14

%

6.12

%

6.13

%7.57

%

2.82

% 5.44

% 7.66

%

8.34

%

1.84

% 3.56

%

1.49

% 3.19

%

0.80

%

23.2

5%

5.81

%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Faysal Savings Growth Fund generated a return of 5.81% on a month-on-month basis whereas the year-to-date return clocked in at 6.15%, outperforming the benchmark by 7bps. During the month, 5.21% of the portfolio was allocated to PIBs. Exposure in PIBs was reduced from 11.16% in the previous month. Exposure in T-bills was also reduced to 21.98% from 28.57% last month. However, your fund maintained its holding in MTS at 30.68%. Going forward, the fund will continue to build exposure in MTS markets to enhance yields with a proactive investment strategy for competitive returns.

Weighted Average Maturity* 1.88 Yrs2.29%

*Excluding Government SecuritiesTotal Expense Ratio TER includes 0.29% representing government levy and SECP fee

excluding reversal of WWF.

The Scheme has maintained provisions against Sindh Workers' Welfare Fund liabilty to the tune of Rs. 5,448,777 as at February 28, 2017. If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs. 0.20 (0.19%). For details investors are advised to read the Note 7.1 of the latest financial statements for the year ended December 31, 2016.








Government SecuritiesAAAAA+AAAA-A+NR (include receivables against sale of investments)

25.94%0.06%0.07%1.41%

59.13%11.93%1.47%

Faysal Financial Sector Opportunity Fund (FFSOF) seeks to provide a competitive rate of returns to its investors by investing in money marketand debt instruments with major exposure in financial sector instruments.


104.6974.32

5.35%4.87%5.75%

6.08%6.13%6.15%

FY17 to DateMonth on Month1 year Trailing

FFSOF Benchmark

AA-(f) (JCRVIS)Moderate

(Annualized % p.a) Holding Period

FY 157.41%8.22%

Feb’17

Cash36.79%

Othersincluding

Receivables,1.47%

TFCs,35.80%

FY 167.08%5.88%

Faysal Financial Sector Opportunity Fund

Bank Alfalah TFC

NIB TFC2

BOP TFC

12.07%

11.90%11.78%

T-Bills,25.94%

Six months KIBOR rates

Jan’17

Cash60.01%

Othersincluding

Receivables,1.89%

TFCs,38.10%

Faysal Financial Sector Opportunity Fund yielded a return of 5.35% on year-to-date basis whereas the month-on-month return clocked in at 4.87%. Exposures in financial TFC’s are expected to be maintained going forward as interest rates continue to remain under pressure. Your fund will continue to strategize in accordance with the macroeconomic landscape and market dynamics.

5.73

%

5.73

%

5.62

%

5.43

%

5.37

%

5.37

%

5.39

%

5.39

%

6.09

%

6.14

%

6.12

%

6.13

%

5.60

%

2.30

% 4.56

%

12.7

3%

8.62

%

- 0.1

2%

1.19

%

- 0.2

3%

4.54

%

4.95

%

18.2

3%

4.87

%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

NON COMPLIANCEName of

Non-ComplaintInvestment

Ratingrequired

ExistingRating

RequiredExposure asa % of NAV

ExistingExposure

as a % of NAVBreach

Type ofInstrument

Value of Investmentbefore provisioning

Provision(If any)

Value ofInvestment

afterprovisioning

% of NetAssets

% ofTotal

AssetsBank Al Falah Limited

NIB Bank LimitedThe Bank of Punjab

AA- AA-

AA- AA-

AA- AA- 0%-10%

0%-10%

0%-10%

12.41%

12.11%

12.24%

12.41%

12.11%

12.24%

12.07%

11.78%

11.90%

2.41%

2.24%

2.11%

9,221,396

TFC

TFC

TFC -

--

9,221,396

9,093,704

9,000,000

9,093,704

9,000,000

DESCRIPTION Minimum Fund Size Actual Fund Size100,000,000 74,316,359Net Assets (PKR)


*Excluding Government SecuritiesTotal Expense Ratio TER includes 0.16% representing government levy and SECP fee

excluding reversal of WWF.

The Scheme has maintained provisions against Sindh Workers' Welfare Fund liabilty to the tune of Rs. 310,972 as at February 28, 2017. If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs. 0.438 (0.45%). For details investors are advised to read the Note 8.2 of the latest financial statements for the year ended December 31, 2016.








Faysal Islamic Savings Growth Fund (FISGF) seeks to provide maximum possible preservation of capital and a reasonable rate of return viainvesting in Shariah Compliant money market and debt securit ies having good credit quality rating and l iquidity.


5.78%

3.83%

5.72%

3.24%

2.84%

3.71%

105.84

1267.58

AA+

AAA

AA

A+

AA-

NR (include receivables against sale of investments)

7.04%

16.43%

2.08%3.89%

69.66%

0.91%

FY17 to Date

Month on Month

1 year Trailing


FISGF Benchmark(Annualized % p.a) Holding Period

K-Electric AZM Sukuk III

TPL Trakker Sukuk

Engro Rupaya Sukuk-2

Byco Oil Pakistan

Engro Fertilizer Sukuk

6.01%

4.12%

1.87%

16.42%

3.89%

Feb’ 17

Returns (%)

FISGF

Benchmark (YTD)

FY 14

7.65%

6.92%

FY 13

8.28%

7.30%

FY 12

11.24%

8.70%

FY 15

8.22%

6.61%

Cash,59.75%

Others,including

receivables0.91%

TFCs/Sukuk

32.30%

FY 16

5.50%

4.68%

Faysal Islamic Savings Growth Fund

Six months average deposit rates of three A rated scheduledIslamic Banks of Islamic windows of conventional Banks

Com7.04%

Faysal Islamic Savings and Growth Fund yielded an annualized return of 5.78% on a year-to-date basis whereas the month-on-month return clocked in at 3.83%. During the month, your fund increased its exposure towards Islamic commercial securities to 32.30% and in certificate of Musharika to 7.04%. Going forward, your fund will continue to explore Islamic investment avenues in order to provide competitive returns.

Jan’17

Cash,61.32%

Others,including

receivables0.75%TFCs/

Sukuk31.14%

COM6.78%

4.34

%

4.42

%

4.45

%

4.32

%

4.32

%

4.32

%

4.30

%

2.84

%

2.80

%

2.82

%

2.75

%

2.84

%

8.15

%

4.81

%

4.53

%

5.24

%

10.17%

7.79

%

4.00

% 4.99

%

4.32

%

3.26

%

6.85

%

3.83

%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%



Ratingrequired

ExistingRating


ExistingExposure

as a % of NAVBreach

Type ofInstrument


Provision(If any)

Value ofInvestment

afterprovisioning

% of NetAssets

% ofTotal

Assets

BYCO OilPakistan Ltd Sukuk A- AAA 0%-15% 16.57% 1.57% Sukuk 210,000,000 - 210,000,000 16.57% 16.42%












Faysal Income & Growth Fund

Faysal Income & Growth Fund (FIGF) seeks to provide its investors withoptimal yields through a diversified portfolio consisting of both long-term

fixed instruments as well as short–term money market securities.

Fund TypeCategoryStability RatingRisk ProfileLaunch DateCustodian/TrusteeAuditor

Management FeeFront/Back end LoadMin SubscriptionBenchmarkPricing MechanismDealing DaysCut-Off TimingAMC RatingNAV per Unit (PKR)Net Assets (PKR mn)Leverage

Open EndedAggressive Income FundA(f) (PACRA)MediumOctober 10, 2005CDCErnst & Young Ford Rhodes Sidat Hyder,Chartered Accountants1.50%NilPKR. 5,000One year KIBOR ratesForwardMonday-Friday9:00 am - 5:00 pmAM3++ (JCRVIS)108.351,069.97Nil

FUND INFORMATION

Note: Funds returns computed on NAV to NAV with the dividend reinvestment(excluding Sales Load)

Returns (%)FIGFBenchmark (YTD)

FY 148.82%9.87%

FY 139.50%9.92%

FY 1213.55%12.24%

ASSET QUALITY (% OF TOTAL ASSETS)AAA

AA+

AA

AA-

A+

A-NR (include receivables against sale of investments)

A

Investment Objective

MUFAP’s recommended formatDisclaimer: 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 inmutual funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependent on forces and factors affecting the capital markets. These may goup or down based on market conditions. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the Investment policies and therisks involved.

ASSET ALLOCATION (% OF TOTAL ASSETS)

FY 1512.14%9.03%

9.27%

0.02%

0.95%

21.37%

58.59%

5.22%

3.75%

0.82%

TFCS/SUKUK HOLDINGS (% OF TOTAL ASSETS)

FY 169.41%6.59%

Cash,59.60%

Feb’17

Othersincluding

Receivables,0.82%

TFC/Sukuk,39.58

FY17 to Date

Month on Month

1 year trailing

3.97%

4.59%

5.96%

6.38%

6.40%

6.45%

FUND RETURNSFIGF Benchmark(Annualized % p.a) Holding Period

JS bank PPTFC

Byco Oil Pakistan

10.37%

9.26%

BOP TFC

Ghani Gases Limited TFC

6.11%

3.75%

Cash,51.52%

Jan’17

Othersincluding

Receivables,1.84%TFCs

40.33%

PIBs6.33%

6.41

%

6.41

%

6.36

%

6.17

%

6.08

%

6.08

%

6.09

%

6.37

%

6.40

%

6.43

%

6.41

%

6.40

%

13.3

1%

4.43

%

7.60

%

12.7

9%

11.4

9%

0.00

% 1.94

%

-1.9

9%

3.19

%

-0.1

1%12.79%

4.59

%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

Faysal Income and Growth Fund yielded an annualized return of 3.97% on a year-to-date basis whereas the month-on-month return clocked in at 4.59%. During the month, exit strategy was implemented for PIBs and exposure in TFCs was also reduced to 39.58% from 40.33% last month. Going forward, your fund will strive to maximize returns in a competitive macroeconomic landscape.

TPL Trakker Sukuk

NRSP TFC

4.87%

5.22%



Ratingrequired

ExistingRating


ExistingExposure

as a % of NAVBreach

Type ofInstrument


Provision(If any)

Value ofInvestment

afterprovisioning

% of NetAssets

% ofTotal

AssetsJS Bank Limited

As per offering document; Investment Policy 2.2, Debt/Fixed Income Securities;

BBB A+ 0%-10% 10.47% 10.47% 10.37%0.47% 112,000,000TFC - 112,000,000

DESCRIPTIONExposure Limit Rangt Actual Holding

63%-100% 60.16%

Securities and/or instruments issued or guaranteed, whether directly or indirectly, by Federal or Provincial Government / Authority of Pakistan, including but not limited to Federal Investment Bonds, Treasury Bills, Pakistan Investment Bonds and includes any securities or instruments issued by such entities majority of which is owned, whether directly or indirectly, by the Federal or Provincial Government / Authority of Pakistan or other deposits in the banks and Non-Banking Finance Companies.




The Scheme has maintained provisions against Sindh Workers' Welfare Fund liabilty to the tune of Rs. 1,857,514 as at February 28, 2017. If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs.0.188 (0.20%). For details investors are advised to read the Note 8.1 of the latest inancial statements for the the year ended December 31, 2016.








Faysal Asset Allocation Fund (FAAF) endeavors to provide investors with an opportunity to earn long-term capital appreciation optimizingthrough broad mix of asset classes encompassing equity, fixed income & money market instruments.



79.16156.80

14.97%-1.25%24.50%

24.76%-0.38%45.39%

ICI Pakistan LimitedSui Northern Gas Piplines Company LimitedSearle Pakistan LimitedPackages LimitedKot Addu Power Company LimitedEngro Fertilizers LtdHub Power Company LimitedHascol Petroleum LtdMari Petroleum Company LtdSinger Pakistan

5.65%5.46%4.80%4.68%4.14%4.14%3.99%3.88%3.67%3.24%

Oil & Gas Marketing CompaniesElectricity

Automobile Assembler

CementOil & Gas Exploration Companies

Others

Jan’178.53%8.09%7.32%7.15%6.11%

44.20%

Feb’179.35%9.30%

6.22%

7.84%6.62%

44.77%

0.02%

11.91%

0.004%

0.05%

88.02%

FY17 to DateMonth on Month1 year trailing


FAAF Benchmark

AAA

AA+

AA

AA-

NR (Include Equity Investments)

(Absolute % p.a) Holding Period

Returns (%)

FAAF

Benchmark (YTD)

FY 14

17.01%

30.21%

FY 13

20.26%

34.43%

FY 12

(0.02)%

11.62%

FY 15

16.16%

13.44%

Feb’17

Cash11.98%

Equities,85.74%

Othersincluding

Receivables2.28%

FY 16

(2.46)%

9.14%

Note: “The FAAF scheme holds certain non-compliant investments. Before making any investment decision, investors should review this document and latest financial statements.”

Faysal Asset Allocation Fund



Ratingrequired

ExistingRating


ExistingExposure

as a % of NAVBreach

Type ofInstrument


Provision(If any)

Value ofInvestment

afterprovisioning

% of NetAssets

% ofTotal

AssetsTrust Investment Bank Limited*

* Fully provided.

BBB Withdrawn 10% - - - - -TFC 13,137,042 13,137,042

Faysal Asset Allocation Fund yielded an absolute return of 14.97% on year-to-date basis, whereas the benchmark gave a negative 0.38% return. During the month, your fund increased its equity exposure to 85.74% from 81.40% last month to take advantage of the bullish sentiment surrounding the equity market. Going forward, your fund will devise its portfolio strategy whilst keeping in view the dynamics of different asset classes, with more focus towards the equity asset class.

Jan’17

Cash11.97%

Equities,81.40%

Othersincluding

Receivables6.63%


Ms.Sania Awan

Mr.Ayub KhuhroMr. Saif Hasan



Chief Investment OfficerFund Manager (Equity)


4.54%Total Expense Ratio TER includes 0.64% representing government levy and SECP feeexcluding reversal of WWF.


Faysal Balanced Growth Fund


Faysal Balanced Growth Fund (FBGF) endeavors to provide investors with an opportunity to earn income and long-term capital appreciationby investing in a large pool of funds representing equity / non equity investments in a broad range of sectors and financial instruments

74.82453.09

16.40%

-1.11%

24.15%

-0.14%

36.98%

AA+

AA

AA-

NR (Include Equity Investments)

27.96%

0.02%

0.02%

72.01%

FY17 to Date

Month on Month

1 year trailing

FBGF Benchmark

3.54%

3.43%

3.40%

3.26%

3.22%

2.96%

2.73%

2.71%

2.70%

2.67%

Cherat Cement Company Limited

Hub Power Company Limited

Roshan Packages

Sui Northern Gas Pipelines Co.

Mari Petroleum Company Ltd

Indus Motor Company Ltd

Lucky Cement Ltd

IGI Insurance

ICI Pakistan Limited

International Steels Limited

Feb’17

7.67%7.08%5.83%

8.95%

4.72%32.41%

Jan’177.99%3.50%5.68%9.75%4.58%

31.52%

EngineeringPaper and BoardOil & Gas Exploration Companies

Cement

Automobile AssemblerOthers

Feb’17

Cash27.99%

Equities,66.66%

Othersincluding

Receivables0.98%

(Absolute % p.a) Holding Period

Returns (%)

FBGF

Benchmark (YTD)

FY 14

14.69%

23.53%

FY 13

19.15%

30.70%

FY 12

(4.69)%

11.59%

FY 15

19.83%

12.42%

FY 16

7.39%

8.60%

Faysal Balanced Growth Fund yielded an absolute return of -1.11% on month-on-month basis whereas the year-to-date return clocked in at 16.40%. During the month, your fund increased its equity exposure to 66.66% from 63.02% last month. Going forward, your fund will devise its portfolio strategy to keep in view the political, economic and corporate stance.

Jan’17

Cash15.83%

Equities,63.02%

Othersincluding

Receivables6.02%

TFCs3.75%

PIB’s11.38%TFCs,

4.36%

19.65%

4.10%Total Expense Ratio TER includes 0.51% representing government levy and SECP feeexcluding reversal of WWF.



Ms.Sania Awan







Ms.Sania Awan






Over the past few months, Pakistan’s economy has received largely positive coverage in a number of international media outlets. For a country usually in the news for its endemic political instability and prolonged battles with Islamist militancy, this shift in focus heralds an interesting change. Pakistan’s economy could become the 16th largest by 2050 based on its gross domestic product (GDP) at purchasing power parity (PPP), said a report prepared by PricewaterhouseCoopers (PwC), a multinational professional services network headquartered in London and considered among the ‘Big Four’ auditors. This means the country would overtake Italy and Canada, which currently rank at 12th and 17th places, respectively.There is no doubt that Pakistan’s economy has seen qualitative shifts towards increased marketization and commodification in the past two decades. However, the claims extrapolated from these shifts require further scrutiny. Beyond macroeconomic indicators, another factor that has received considerable attention in recent coverage is the country’s growing middle class. One recent piece, published in the Wall Street Journal, cited this burgeoning middle class as the primary fuel behind the twin boon of democratic stability and economic growth.Pakistan's consumer price index (CPI) inflation rate accelerated to 4.22% year-on-year in February from 3.66% in January, setting ground for a tight monetary policy stance, as perishable food (food inflation, which accounts for one-third of the consumer price index (CPI) inflation basket, rose 3.1%) and fuel prices were seen rebounding. On a month-on-month basis, prices rose by 0.28% in February. The rise in month-on-month inflation was mostly due to higher prices of food items such as tomatoes, peas, oranges and chicken.The total liquid foreign exchange reserves of the country reached $21.822 billion during the month ended. Forex reserves held by the State Bank of Pakistan (SBP) stood at $16.851 billion, while the foreign exchange reserves of commercial banks amounted to $4.971 billion.Pakistan’s current account deficit widened by 90% in the first seven months (Jul-Jan) of 2016-17, standing at $4.72 billion compared with $2.48 billion in the same period of the previous year. his year, the gap in the first seven months (Jul-Jan) of the ongoing fiscal year 2016-17 has already widened by 45% compared to the entire last year’s level. The current account deficit was equal to 2.5% of gross domestic product in July-January 2016/17 as against 1.5% ($2.479 billion) a year earlier, according to the State Bank of Pakistan (SBP). In January, the current account deficit amounted to $1.189 billion as compared to $1.025 billion in the previous month. Ballooning current account deficit was due to higher trade gap and slowdown in workers’ remittance inflows and foreign investment.Remittances, sent by Pakistanis living aboard, continue to decline since the start of this fiscal year. Remittances decreased 1.87% to $10.946 billion during 7MFY17. Economists feared that prospects of the balance of payments would further be bleak in the months to come. Rising global oil prices, dried foreign inflows and lower exports would build pressure on the current account position. The balance of trade in goods and services posted a deficit of $15.208 billion in July-January FY17 compared with $12.449 billion in the same period of the last year. Trade deficit rose to $17.428 billion in this period from $13.544 billion a year ago due to increased exports and decreased imports. Exports fell to $11.685 billion from $12.073 billion, while imports rose to $29.113 billion from $25.617 billion. An expected spike in the oil and non-oil import bills would exert pressure on foreign exchange reserves of the country. Increasing share of liquefied natural gas in the import mix may become more challenging to bolster the current account position. A structural weakness in the external account depicted by continuous drop in exports and remittances pose threat to the economic sustainability.Foreign direct investment (FDI) is somehow a source of support to the balance of payment position. The country attracted $1.161 billion in FDI in the July-January period of 2016/17, up from $1.056 billion a year earlier. That showed a 9.9% increase in FDI over the corresponding period of the last fiscal year. Pakistan’s image as an attractive investment destination is improving, despite security challenges and political instability. The country mostly received FDIs from Netherlands, China, and Turkey. Investment made by Dutch companies in the country accounted for almost half of the FDI flows recorded during July-January FY17. The Dutch companies invested $456 million in some businesses, particularly, the food sector in July-January FY17 compared with $9.6 million in the corresponding period of last year.Large scale manufacturing (LSM) sector posted year-on-year 3.9% growth in the first half of the current fiscal year as construction boom aroused demand of steel products amid the China-sponsored infrastructure developments. The PBS recorded 7.04% rise in LSM output in December 2016 over the last year and month-on-month 12.89% increase. This healthy growth in LSM sector can enable the government to achieve the GDP’s growth target of 5.7% during the ongoing financial year.Iron and steel production recorded the highest growth of 15.63% during the July-De-cember period of 2016/17. Electronics manufacturing registered the second highest rise of 14.35% in the period under review, followed by non-metallic mineral products (9.31%), pharmaceuticals (7.9%), food, beverages and tobacco (6.95%), automobiles (6.67%), paper and board (5.69%), fertilizers (3.47%), rubber products (0.45%) and textile (0.14%). In December 2016, iron and steel production of 20.85% was also the highest among all the major industries, followed by food, beverages and tobacco (16.24%) and paper and paper board (16.13%). Improving economic indicators are encouraging to local as well as foreign investors. Pakistan’s strategic location at the crossroads of the Middle East has always been prized for South Asia, Central Asia and its economic potential.The current performance of Pakistan’s economy is living up to its promise.

The objective of Faysal Islamic Asset Allocation Fund (FIAAF) is to earncompetitive riba free return by investing in various Shariah compliant assetclasses/instruments based on the market outlook and may easily changeallocation to take advantage of directional macro and micro economictrends and undervalued stocks.

Fund TypeCategoryRisk ProfileLaunch DateCustodian/TrusteeAuditor

Management FeeFront end Load

Back end Load

Min SubscriptionBenchmark*

Pricing MechanismDealing DaysCut-Off TimingAMC RatingNAV per Unit (PKR)Net Assets (PKR mn)Leverage

Open EndedShariah Compliant Asset Allocation SchemeModerate to High RiskSeptember 9, 2015CDCErnst & Young Ford Rhodes Sidat Hyder,Chartered Accountants2%0 - less than 2 million : 2%2 million - less than 5 million : 1%5 million and above : 0%

Back end - 0 %

PKR. 5,000KMI- 30 Index/6M Deposit rate for A & aboverated Islamic BanksForwardMonday-Friday9:00 am - 5:00 pmAM3++ (JCRVIS)113.98192.30Nil

FUND INFORMATION


FY17 to Date

Month on Month

1 year trailing

18.75%

0.11%

27.17%

20.81%

-0.27%

42.32%

Returns (%)FIAAFBenchmark (YTD)

FY 14--

FY 13--

FY 12--

FUND RETURNS




FIAAF Benchmark(Absolute % p.a) Holding Period

FY 15--

ASSET QUALITY (% OF TOTAL ASSETS)AAA+BBB+NR (include receivables against sale of investments)

2.92%15.53%

0.06%81.50%

6.55%

6.33%

6.12%

4.69%

4.45%

4.37%

4.11%

3.47%

3.47%

3.47%

Packages Limited

ICI Pakistan Limited

Sui Northern Gas Piplines Co.

Hub Power Company Limited

Lucky Cement Ltd

Searle Pakistan Limited

Mari Petroleum Company Ltd

Kot Addu Power Company Limited

Engro Fertilizers Ltd

Feb’17

Cash18.50%

Equities79.01%

Jan’1611.25%10.46%9.14%7.84%6.98%

33.55%

CementOil & Gas Marketing CompaniesElectricityAutomobile & PartsGeneral IndustriesOthers

Feb’1611.01%9.67%8.16%7.55%6.55%

36.07%

Othersincluding

Receivables2.48%

FY 16(4.02)%14.45%

Faysal Islamic Asset Allocation Fund

General Tyres and Rubber Co.

Faysal Islamic Asset Allocation Fund yielded an absolute return of 18.75% on year-to-date basis whereas the month-on-month return clocked in at 0.11%. During the month, your fund maintained its equity exposure at 79%. Going forward, your fund will explore lucrative securities in different Islamic asset classes in order to generate alpha.

Jan’17

Cash14.29%

Equities79.21%

Othersincluding

Receivables6.50%

4.57%Total Expense Ratio TER includes 0.57% representing government levy and SECP fee


Fund TypeCategoryRatingRisk ProfileLaunch DateCustodian/TrusteeAuditor

Management FeeFront/Back end Load

Min SubscriptionBenchmark

Pricing MechanismDealing DaysCut-Off TimingAMC RatingNAV per Unit (PKR)Net Assets (PKR mn)Leverage

Open EndedIncome Scheme“A+” f (PACRA)ModerateApril 8, 2016CDCErnst & Young Ford Rhodes Sidat Hyder,Chartered Accountants1.00%Less than PKR 5mn FEL will be1%,investment above PKR 5mn FEL will be 0%BEL 0%

PKR. 5,000Six months KIBOR rates

ForwardMonday-Friday9:00 am - 5:00 pmAM3++ (JCRVIS)103.73151.51Nil

FUND INFORMATION


FY17 to Date

Month on Month

1 year trailing

5.51%

5.05%

N/A

6.08%

6.13%

6.15%

Returns (%)FMTSFBenchmark (YTD)

FY 14--

FY 13--

FY 12--

FUND RETURNS

The objective of Faysal MTS Fund (FMTSF) is to provide competitivereturns primarily through investment in to MTS market.



FMTS Benchmark(Annualized % p.a) Holding Period

FY 15--


ASSET QUALITY (% OF TOTAL ASSETS)Government Securities

AA-

AA

MTS (Unrated)

NR (include receivables against sale of investments)

6.55%

21.68%

1.13%

68.27%

2.37%

Feb’17

MarginTrading System

(MTS)68.27%

Cash22.81%

Othersincluding

Receivables2.37%

T-Bills6.55%

FY 165.96%5.51%

Faysal MTS Fund

MTSF

Faysal MTS Fund yielded an annualized return of 5.51% on a year-to-date basis whereas the month-on-month return clocked in at 5.05%. During the month, exposure in Margin Trading System (MTS) was decreased to 68.27% from 72.25% last month. Going forward, your fund will explore new avenues in the MTS market to yield higher returns.

Jan’17

MarginTrading System

(MTS)72.25%

Cash18.62%

Othersincluding

Receivables2.23%

T-Bills6.90%

5.65

%

5.62

%

5.41

%

5.35

%

5.36

%

5.37

%

5.37

% 6.09

%

6.14

%

6.12

%

6.13

%

4.28

%

4.34

%

8.84

%

6.59

%

6.08

%

6.01

%

5.68

%

4.88

%

5.17

%

3.89

%

5.05

%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

Weighted Average Maturity* 0.11Yrs2.22%


Total Expense Ratio TER includes 0.22% representing government levy and SECP fee.



Syed Shahid IqbalMs.Sania Awan






-4.02%14.45%

FY1510.39%11.10%

9.12%7.68%

10.72%10.79%

9.64%8.93%

8.26%8.59%

142.46%358.58%

157.55% 230.54%

FY15

FY1610.30%10.68%

8.59%7.24%

10.42%10.35%

8.97%8.32%

7.87%7.68%

160.37%398.01%

151.22% 260.75%

FY16

5.96%5.51%

FMTSF

Faysal Bank LimitedOld Bahawalpur Road Branch (133)129/1, Old Bahawalpur Road,Multan, Phone: 061-6214903

Faysal Bank Limited310-Upper Mall Shahrah-e-Quaid-e-Azam,Lahore,Phone: 042-35789201, 042-111-11-22-33,042-35789013Fax: 042-35751020310

Faysal Bank LimitedBilal Road, Civil Lines,Faisalabad, (111)Phone: (92 41) 2644476, 041-2644481-5,111-747-747Fax: 041-2640545, 041-2644486

Faysal Bank Limited9-A, Main Boulevard, Gulberg,Lahore, (148)Phone: 042-35817262 / 042-35787823-9Fax: 042-35787830

Faysal Bank Limited1 Fakhr-e-Alam Road Cantt,Peshawar, 411Phone: 091-5260337 / 091-5285289,5270176-8Fax: 091-5275503

Faysal Bank Limited841 Farooqabad, Main Mansehra Road,Peshawar,Phone: 0992-385927 / 0992-385919-28Fax: 0992-385921

Faysal Bank Limited32 Haider Road, Rawalpindi Cantt,Rawalpindi, 120Phone: 051-5701018 - 22Fax: 051-55258

Faysal Bank Limited15, Markaz F-7, Opposite FG College for Women,F-7/2,Islamabad, 332Phone: 051-111-11-22-33Fax: 051-2651331

Faysal Bank LimitedPlot Number 339, Main Bohra Bazar Saddar,Hyderabad,138Phone: 022-2728359 / 022-2728356-58Fax: 022-2728360

Faysal Bank Limited (282)Garrison Officers Mess, 12 Tufail Road,Lahore Cantt Lahore,Phone: 042-36604909-15Fax: 042-36604905

Faysal Bank Limited Branch (464)Awami Complex, Block No 2,New Garden Town, Lahore,Phone: 042-35861111, 042-35868776Fax: 042-35889869

Faysal Bank Limited Z Block Lahore, 326 Z, Commercial Area,DHA, Lahore,Phone: 042-35728246

Faysal Bank Limited136/1, Block-H, Commercial Area Phase I, DHA,Lahore Cantt,Lahore,Phone: 042-35897712-17Fax: 042-35897720

Faysal Bank Limited43 Shahrah-e-Quaid-e-Azam,Lahore,Phone: 042-37314051-53, 042-37236014-8Fax: 042-37314447

Faysal Bank Limited(457) 25-B-2, Gulberg III, Lahore,Phone: 042-35717141-5,Fax: 042-35718050

Faysal Bank LimitedCavalry Ground (3421)97- Commercial Area, Cavalry Ground,Lahore,Phone: 042-36603412-15Fax: 042-36603411

Faysal Bank Limited5th Road City Shopping Centre,Commercial Market, Satellite Town,Rawalpindi,Phone: 051-4424969-72Fax: 051-4424962

Faysal Bank Limited15-West, Jinnah Avenue Blue Area,Islamabad,Phone: 051-111-747-747,2275096-8Fax: 051-2275095

Faysal Bank Limited(194) Plot 14, F-11 Markaz,Islamabad,Phone: 051-2228142-4Fax: 051-2228145

Faysal Bank Limited(452) 78-W, Roshan Center, Jinnah Avenue,Blue Area,Islamabad,Phone: 051-227-5250-2Fax: 051-2275254

Faysal Bank Limited(144)130/1, Main Korangi Road, KM Centre,Phase I, DHA, Karachi,Phone: 021-35388161, 021-35388175Fax: 021-35391345

Faysal Bank Limited(173) 14-C, Khayaban e Tanzeem,Tauheed Commercial, DHA, Phase V,Karachi,Phone: 021-35877909-10Fax: 021-35877847Faysal Bank Limited

(118) Quality Heights, K.D.A Scheme # 5,Clifton,Karachi,Phone: 021-35863771-73Fax: 021-35863774

Faysal Bank Limited(269) Plot Number DC-1, 16-A and16-B,Block 5, Clifton Centre, Kehkashan,Karachi,

Phone: 021-35830113-5Fax: 021-35875404

Faysal Bank Limited(441) 19-C Bukhari Commercial Lane No 5,Ground, Basement and 1st Floor,Phase VI, DHA, Karachi,Phone: 021-35149595 - 97Fax: 021-35149591

Faysal Bank Limited(330) 16-Abdullah Haroon Road, Karachi,Phone: 111 11 22 33

Faysal Bank Limited(110) ST- 02, Main Shahra e Faisal(FAYSAL HOUSE), Karachi,Phone: 021-111-747-747, 32795200Fax: 021-32795234

Faysal Bank Limited(342) D-4, Block D, North Nazimabad,Karachi,Phone: 021-36721600-4Fax: 021-36721614

Faysal Bank Limited(338) Address: 22/C, Lane-2, ShahbazCommercial, Phase V1, DHA, Karachi(175) 14-C, Sunset Commercial Street # 2,Phase IV, DHA, Karachi,Phone: 021-35802423Fax: 021-35802425

Faysal Bank Limited(333) 72-A/Z, Block 7/8, Al-Riaz CooperativeHousing Society, KarachiPhone: 021-34376342, 021-

Faysal Bank Limited(165) Plot Number Commercial 7/1, Block 2, GreenBelt Residency No.13-16, KDA Scheme-5 Shop,Kehkashan, CliftonKarachi,Phone: 021-35877922, 021-35375103Fax: 021-35877925

Faysal Bank Limited(119) B -35,Block 13-A Main UniversityRoad,Gulshan e Iqbal, Phone: 021-3499 4262-3(422) State Life Building. 11, Abdullah HaroonRoad Karachi, Phone: 021-386 79355-56

Also Available at Branches of Faysal Bank Limited

feb fmr 2017 updated benchmarks - faysal fundscement sector was amongst largest contributors to the...

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