fund manager report august 2019 · 2019. 8. 9. · performance summary of key funds august 2019...

NBP FUNDSManaging Your Savings

Fund Manager ReportAugust 2019

NAFA Islamic Saving Plans

***Underlying investment of the above strategy is as follows NISTP: 100% NRFSF, NIMSP:50% NRFSF and 50% NISIF, NISIP: 100% NISIF. NRFSF: NBP RIBA FREE SAVINGS FUND (Formerly; NAFA RIBA FREE SAVINGS FUND); NISIF: NBP ISLAMIC SARMAYA IZAFA FUND (Formerly; NAFA ISLAMIC ASSET ALLOCATION FUND); Note: Performance shown is of the underlying funds as on August 31, 2019, based on dividend reinvestment gross of withholding Taxes, excluding cost of front end load. The performance reported is net of Management Fee, Takaful premium, and all other expenses. Taxes apply as per current income tax law; **Subject to conditions as per section 62 of the Income Tax Ordinance, 2001; *Terms & Conditions apply; Disclaimer: All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Documents to understand investment policies and the risks involved. The underlying scheme holds certain non-compliant investments. Before making any investment decision, investors should review the latest monthly Fund Manager Report and Financial Statements. The reported returns may include provisioning and reversal of provisioning against some debt securities.

Aap kay har khwab kay liye hamaray saving plans

NBP Fund Management Limited

Contact our Investment Consultant for free Investment advice

/[email protected] SMS Invest to 9995 0800-20002 www.nbpfunds.com

Wealth

Retirement

Education

Wedding

Benefits at a Glance:

Withdrawl ofInvestment any time

without penalty

Optional life & accidentaltakaful Coverage ofup to Rs. 50 Lacs*

Avail up to20% Tax Savings**

Grow Your Savings Smartly

NAFA Islamic Surmaya Tahaffuz Plan (NISTP)

NAFA Islamic Mutawazan Surmaya Plan (NIMSP)

NAFA Islamic Surmaya Izafa Plan (NISIP)

Saving Plans

Balanced Growth

Preservation of Capital

Capital Growth

ObjectiveLast 8 Year Performance of Underlying Funds***

7.1%

9.9%

11.9%

17.4 Lacs

21.2 Lacs

24.5 Lacs

Annualized Profit Value of Rs. 10 Lacs

Rated by PACRAAM1

Table of Contents

Table of Contents

NBP Government Securities Liquid Fund (NGSLF)

NBP Money Market Fund (NMMF)

NBP Islamic Money Market Fund (NIMMF)

NBP Riba Free Savings Fund (NRFSF)

NBP Islamic Mahana Amdani Fund (NIMAF)Formerly; NBP Aitemaad Mahana Amdani Fund (NAMAF)

NBP Financial Sector Income Fund (NFSIF)

NBP Balanced Fund (NBF)Formerly; NAFA Multi Asset Fund (NMF)

NBP Islamic Sarmaya Izafa Fund (NISIF)Formerly; NAFA Islamic Asset Allocation Fund (NIAAF)

NBP Sarmaya Izafa Fund (NSIF)Formerly; NAFA Asset Allocation Fund (NAAF)

NBP Mahana Amdani Fund (NMAF)Formerly; NAFA Savings Plus Fund (NSPF)

NAFA Government Securities Savings Fund (NGSSF)

NBP Government Securities Plan - I (NGSP-I)

NBP Stock Fund (NSF)

NAFA Financial Sector Fund (NFSF)

NBP Islamic Stock Fund (NISF)

Capital Market Review

Pg. 02-03

Pg. 04

CEO’s Write-up

Pg. 01Performance Summary Sheet of Key Funds

NBP Savings Fund (NBP-SF)Formerly; NAFA Income Fund (NIF)

NBP Islamic Savings Fund (NBP-ISF)Formerly; NAFA Islamic Income Fund (NIIF)NBP Income Opportunity Fund (NIOF)

NAFA Pension Fund (NPF)

NAFA Islamic Pension Fund (NIPF)

NAFA Islamic Principal Protected Fund-II (NIPPF-II)

NAFA Islamic Active Allocation Plan-I (NIAAP-I)

NAFA Islamic Active Allocation Plan-II (NIAAP-II)

NAFA Islamic Active Allocation Plan-III (NIAAP-III)

NAFA Islamic Active Allocation Plan-IV (NIAAP-IV)

NAFA Islamic Active Allocation Plan-V (NIAAP-V)

NAFA Islamic Active Allocation Plan-VI (NIAAP-VI)

NAFA Islamic Active Allocation Plan-VII (NIAAP-VII)

NAFA Islamic Active Allocation Plan-VIII (NIAAP-VIII)

NAFA Islamic Capital Preservation Plan-II (NICPP-II)

NAFA Islamic Capital Preservation Plan-III (NICPP-III)

NAFA Islamic Capital Preservation Plan-IV (NICPP-IV)

NBP Islamic Capital Preservation Plan-V (NICPP-V)

NAFA Islamic Capital Preservation Plan-I (NICPP-I)

NBP Active Allocation Riba Free Savings Fund (NAARFSF)

NBP Islamic Active Allocation Equity Fund (NIAAEF)

NBP Islamic Regular Income Fund (NIRIF)

NBP Islamic Energy Fund (NIEF)

Pg. 05

Pg. 06

Pg. 07

Pg. 10

Pg. 11

Pg. 12

Pg. 19

Pg. 17

Pg. 16

Pg. 09

Pg. 08

Pg. 21

Pg. 23

Pg. 20

Pg. 15

Pg. 13

Pg. 14

Pg. 23

Pg. 25

Pg. 26

Pg. 27

Pg. 28

Pg. 29

Pg. 30

Pg. 31

Pg. 32

Pg. 33

Pg. 34

Pg. 36

Pg. 37

Pg. 38

Pg. 39

Pg. 35

Pg. 40

Pg. 41

Pg. 42

Pg. 18

Pg. 22

Formerly; NAFA Government Securities Liquid Fund (NGSLF)

Formerly; NAFA Active Allocation Riba Free Savings Fund (NAARFSF)

Formerly; NAFA Islamic Active Allocation Equity Fund (NIAAEF)

Formerly; NAFA Money Market Fund (NMMF)

Formerly; NAFA Islamic Money Market Fund (NIMMF)

Formerly; NAFA Riba Free Savings Fund (NRFSF)

Formerly; NAFA Financial Sector Income Fund (NFSIF)

Formerly; NAFA Income Opportunity Fund (NIOF)

Formerly; NBP Aitemaad Regular Payment Fund (NARPF)

Formerly; NAFA Islamic Stock Fund (NISF)

Formerly; NAFA Islamic Energy Fund (NIEF)

Formerly; NAFA Stock Fund (NSF)


Performance Summary of Key Funds

August 2019

Disclaimer: This publication is for informational purpose only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell the fund. All investments in mutual funds and pension funds are subject to market risks. Past Performance is not necessarily indicative of future results. Please read the Offering Document to understand investment policies and the risks involved.

StabilityRating

Fund Size(Rs. In Crore)

InceptionDate

234

2,680

60

737

660

534

254

AAA (f)

AA (f)

AA- (f)

A (f)

A+ (f)

A (f)

A- (f)

15-May-09

23-Feb-12

21-Nov-09

20-Aug-10

28-Oct-11

21-Apr-06

26-Oct-07

8.6%

8.5%

7.9%

6.5%

8.6%

7.4%

7.9%

5.7%

8.8%

8.2%

8.1%

10.1%

6.8%

5.7%

SinceInception

8.3%

8.7%

8.9%

6.8%

8.7%

6.7%

7.4%

6.7%

10.9%

8.3%

13.2%

9.0%

9.2%

6.6%

FY2015

Fixed Income Funds Annualized Returns

Equity Related Funds Cumulative ReturnsAnnualized

Returns

NG

SLF

NMM

FN

MA

FN

RFSF

NFS

IFN

IOF

NBP

-ISF

NSI

FN

BF

Ris

k Pr

ofile

Low

est R

isk

Mod

erat

e Ri

sk

20-Aug-10

19-Jan-07

26-Oct-07

19-Jan-07

09-Jan-15

NBP Sarmaya Izafa Fund(Formerly:NAFA Asset Allocation Fund)

Benchmark

NBP Balanced Fund(Formerly:NAFA Multi Asset Fund)

Benchmark

NBP Islamic Sarmaya Izafa Fund(Formerly:NAFA Islamic Asset Allocation Fund)

Benchmark

NBP Stock Fund

Benchmark

NBP Islamic Stock Fund

Benchmark

132

126

476

896

316

(3.9%)

(4.4%)

(3.8%)

(4.2%)

(4.8%)

(4.8%)

(7.2%)

(8.5%)

(8.5%)

(8.6%)

(15.8%)

(10.4%)

(15.2%)

(9.9%)

(19.0%)

(17.8%)

(28.4%)

(28.1%)

(32.2%)

(34.7%)

(7.3%)

(6.1%)

(6.9%)

(5.9%)

(8.7%)

(8.2%)

(12.6%)

(12.3%)

(14.7%)

(14.6%)

(8.7%)

(3.9%)

(8.5%)

(3.6%)

(11.4%)

(10.5%)

(18.0%)

(18.2%)

(20.1%)

(23.8%)

(6.8%)

(2.8%)

(6.2%)

(2.8%)

(8.7%)

(3.6%)

(9.7%)

(10.0%)

(12.8%)

(9.6%)

29.9%

14.2%

28.4%

14.1%

20.3%

11.9%

33.7%

17.9%

32.5%

18.8%

7.6%

6.2%

8.7%

7.1%

13.1%

9.2%

11.4%

7.1%

12.9%

15.5%

24.6%

9.6%

26.8%

11.0%

33.8%

12.1%

36.9%

12.3%

n/a

n/a

12.2%

7.4%

11.8%

7.0%

10.5%

7.1%

11.3%

2.9%

(0.2%)

(2.7%)

FY2016

5.7%

6.0%

6.3%

4.6%

6.3%

4.7%

5.5%

4.9%

6.4%

5.9%

7.5%

6.5%

7.4%

4.8%

8.5%

8.7%

9.0%

8.7%

9.1%

10.2%

8.8%

3.7%

9.3%

10.2%

9.2%

10.2%

8.5%

3.7%

5.3%

5.4%

5.6%

5.4%

5.4%

6.3%

5.2%

2.4%

6.0%

6.3%

5.3%

6.3%

5.1%

2.4%

FY2018

12.3%

12.8%

12.5%

12.8%

12.1%

14.1%

11.4%

5.7%

12.8%

14.1%

11.1%

14.1%

11.2%

5.7%

12.1%

12.5%

12.5%

12.5%

12.0%

13.8%

11.4%

5.6%

12.5%

13.8%

11.1%

13.8%

10.8%

5.6%

August2019 FYTD

Rolling12

Months

9.6%

9.7%

10.1%

9.7%

10.1%

11.2%

9.8%

4.2%

10.4%

11.2%

9.9%

11.2%

9.5%

4.2%

FY2019

FY2017

7.6%

5.3%

6.6%

5.1%

8.1%

5.8%

5.9%

3.1%

8.4%

6.0%

6.3%

6.1%

5.4%

3.9%

NIS

IFN

SFN

ISF

Hig

hest

Ris

k

Fund Name

Notes: 1) Performance is net of management fee and all expenses. The calculation of performance does not include cost of front-end load. The performance reported is based on dividend reinvestment (gross of with-holding tax where applicable). 2) Tax credit also available as per section 62 of the Income Tax Ordinance, 2001. 3) Taxes apply.

n/a = Not applicable. Asset Manager Rating: AM1 by PACRA (Very High Quality)

NBP Government Securities Liquid Fund

Benchmark

NBP Money Market Fund

Benchmark

NBP Mahana Amdani Fund(Formerly:NAFA Savings Plus Fund)

Benchmark

NBP Riba Free Savings Fund

Benchmark

NBP Financial Sector Income Fund

Benchmark

NBP Income Opportunity Fund

Benchmark

NBP Islamic Savings Fund(Formerly:NAFA Islamic Income Fund)

Benchmark

Page 01


(Formerly:NAFA Government Securities Liquid Fund )

(Formerly: NAFA Money Market Fund )

(Formerly: NAFA Riba Free Savings Fund )

(Formerly: NAFA Financial Sector Income Fund )

(Formerly: NAFA Income Opportunity Fund )

(Formerly: NAFA Islamic Stock Fund )

(Formerly: NAFA Stock Fund )

Disclaimer: This publication is for informational purpose only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell the fund. All investments in mutual funds and pension funds are subject to market risks. The price of units may go up as well as down. Past Performance is not necessarily indicative of future results.


Improving Stock Market Prospects

Economy:In the face of the challenging economic backdrop, the incumbent government since taking oath has embarked on aggressive stabilization policies, including market determined exchange rate regime, resulting in 26.4% devaluation of PKR versus US Dollar; monetary policy tightening with 575 bps hike in the Policy Rate; levying/expanding of import duties; and a drive to document the economy. These policy measures have started manifesting the desired results.

Stock Market:Due to the dismal economic performance and high interest rates, the stock market declined by a hefty 44% over the last couple of years. Going forward, we believe that the stock market will show a good performance due to the following reasons:

Current Account Deficit (CAD), the Achille’s heel of Pakistan economy, shrank by 32% YoY during FY2019 to USD 13.5 billion. More encouragingly, CAD has dropped massively by 73% to USD 0.6 billion during July 2019 versus USD 2.1 billion last July, and it is expected to be at around USD 8.1 billion in FY2020 and USD 7 billion in FY2021 (see Chart 1). With entry into the IMF program, the focus on external financing for FY2020 has shifted to relatively cheaper resources i.e. multilateral agencies such as the World Bank, Asian Development Bank, Islamic Development Bank. The IMF loan program will also facilitate access to international capital markets via Euro bonds and Foreign Portfolio Investment.

The market determined exchange rate regime has led to the latest Real Effective Exchange Rate (REER) reading of 91 as of July-19, which indicates no need for large PKR devaluation (see Chart 2). However, given the still uncomfortable Balance of Payment (BoP) position we may see some more adjustment in PKR/US$ parity going forward.

As a consequence of the ongoing tightening policies, economic activity has slowed down significantly as reflected by the 3.6% contraction in the Large Scale Manufacturing (LSM) data during FY2019. GDP growth is anticipated to decelerate to around 2% in FY2020 before picking up to 3.8% in FY2021.

After posting a multi-decade high fiscal deficit of 8.9% of GDP in FY19, the government has set an ambitious tax collection target, however the overall fiscal deficit is still expected to clock-in at around 8% due to higher debt servicing cost.

While interest rates are near their peak, a nominal rise of 50bps cannot be ruled out to further curtail the consumption demand. That said, we expect the reversal of the monetary tightening in the next six to nine months, following drop in inflation.

On the economic front, improving Current Account Deficit and expected drop in inflation & interest rates in the next twelve months would lead to re-rating of the market as current valuations are incorporating all the negatives while ignoring the positive outlook (see Chart 3 & Chart 4).

From the valuation stand point, the stock market is trading at a compelling forward Price-to-Earnings multiple of 5.4 times (Earnings Yield of 18%), and offers attractive dividend yield of 7%.

2.8 4.9

12.6

19.9

13.5 8.1 7.0 6.2 1.0%

1.7%

4.2%

6.3%

4.8%

3.1%2.5%

2.1%

0%

1%

2%

3%

4%

5%

6%

7%

0

4

8

12

16

20

24

FY15 FY16 FY17 FY18 FY19 FY20f FY21f FY22f

Annual CAD (USD bn) (LHS) CAD as % of GDP (RHS)

Chart 1 - Current account deficit showing drop after policy measures taken

Source: SBP, NBP Funds Research

100

110

120

130

140

150

160

17090

95

100

105

110

115

120

125

130Ja

n-17

Feb-

17M

ar-1

7Ap

r-17

May

-17

Jun-

17Ju

l-17

Aug-

17Se

p-17

Oct

-17

Nov-

17De

c-17

Jan-

18Fe

b-18

Mar

-18

Apr-

18M

ay-1

8Ju

n-18

Jul-1

8Au

g-18

Sep-

18O

ct-1

8No

v-18

Dec-

18Ja

n-19

Feb-

19M

ar-1

9Ap

r-19

May

-19

Jun-

19

REER (LHS) USD/PKR Exchange Rate (RHS)

Chart 2 - PKR is now near its REER

Source: SBP & Bloomberg

Despite slowdown in GDP growth, overall corporate earnings remain resilient and are still poised to grow at double-digit rate for 2020 and 2021, helped by robust profitability of the Index heavy Banking, Fertilizer and Oil & Gas Exploration sectors.

To summarize, we hold on to the view that the stock market holds potential to post a healthy double-digit return in FY2020, and beyond given: (i) attractive valuations as captured in the forward Price to Earnings multiple of 5.4 times; (ii) a robust double-digit corporate earnings growth expected for 2020 and 2021; (iii) ample local liquidity; (iv) alleviating concerns on the Balance of Payment (BoP) position; and (v) contrary to the foreign portfolio outflows during the last three years, increasing odds of continuation of foreign portfolio inflows. We advise investors to look past the dismal performance of the stock market and consider adding positions in equities gradually keeping their long-term investment objectives in mind.

Chart 3 - Correlation between Stock Marketand Interest Rate movement

-

10,000

20,000

30,000

40,000

50,000

60,000

0%

2%

4%

6%

8%

10%

12%

14%

16%

31-J

an-0

6

31-J

an-0

7

31-J

an-0

8

31-J

an-0

9

31-J

an-1

0

31-J

an-1

1

31-J

an-1

2

31-J

an-1

3

31-J

an-1

4

31-J

an-1

5

31-J

an-1

6

31-J

an-1

7

31-J

an-1

8

31-J

an-1

9

KIBOR KSE-100Coeff. of Determination (R2) : 0.61Relationship : -veSignificance : YES

31-A

ug-1

9

(LHS) (RHS)

Chart 4 - Manageable CAD time period has resulted inpositive market performance

41%

34% 38

%

-11%

-42%

36%

29%

10%

52%

41%

16%

10%

23%

-10%

-19%

-1.4%

-3.6%

-4.5%

-8.2%

-5.5%

-2.2%

0.1%

-2.0%

-1.1%-1.3%-1.0%

-1.7%

-4.2%

-6.3%

-4.8%

-9.0%

-8.0%

-7.0%

-6.0%

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

-60%

-40%

-20%

0%

20%

40%

60%

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

Current Account Deficit (% of GDP)

KSE

100

Inde

x Re

turn

KSE-100 CAD as % of GDP

Source: SBP, PSX & NBP Funds Research

(LHS) (RHS)

Page 03




August 2019

Stock Market Review

Money Market Review

Capital Market Review NBP FUNDSManaging Your Savings

Amid amplified volatility, the stock market remained in the grip of bears, albeit a hefty rebound in the third week of the month, with the benchmark KSE-100 Index declining sharply by 7.1% on a month-on-month basis. August 2019 was the seventh consecutive month of losses at the local bourse. The market shrugged off the significantly improved Current Account Deficit (CAD) number for July 2019 that clocked in at USD 579 million versus USD 2,130 million for the same period last year. Conversely, the focus of the market participants shifted squarely to the deteriorating relationship between the nuclear-armed India-Pakistan after the repeal of article 370 and imposition of curfew/lockdown by the former in Indian occupied Kashmir. The news flow regarding the shortfall in budgetary revenue collection for the ongoing fiscal year also sent jitters in the market. Towards the end of the month, the announcement of government’s intention to partially sell its stakes in the Index heavy OGDCL & PPL also weighed on the performance of the stock market. Consequently, despite dirt cheap valuations in the broader part of the market, investors resorted to indiscriminate selling or opted to stay on the side line. During the month, Automobile Assemblers, Chemicals, Oil & Gas Exploration, Oil & Gas Marketing Companies, Power Generation & Distribution lagged the market. On the other hand, Cement, Commercial Banks, Engineering, Fertilizer, and Textile Composite sectors performed better than the market. Looking at the participant-wise activity during the month, Mutual Funds and Insurance Companies remained the major sellers in the market, offloading equities worth USD 34 million and USD 10 million, respectively. Alongside, Foreign Investors turned sellers, liquidating positions worth USD 4 million. On the contrary, Individual Investors and Banks/DFIs, continued to be the main buyers in the market, accumulating fresh positions to the tune of USD 28 million and USD 8 million, respectively. Similarly, Companies added net equity positions amounting to USD 6 million.

What lies ahead? On the economic front, stabilization policies including monetary policy tightening, PKR devaluation, and expanding the tax base/increasing the tax rates have started yielding positive results as the CAD for July 2019 has shrunk significantly. We also expect inflation to start moderating in the 2nd half of FY2020 after peaking at around 13% in February 2020. From the valuation perspective, after a hefty 44% decline in the benchmark KSE-100 Index from all-time high level of 52,876 points hit in May 2017 to 29,672 points, the market is trading at a compelling forward Price-to-Earnings (P/E) multiple of 5.4 and offers around 7% dividend yield. On a relative basis, this indiscriminate sell-off has made PSX the cheapest market in the region. Corporate earnings growth, the overarching determinant of the stock market performance, remains resilient despite slowing economic growth and is expected to grow at double-digit rate for 2020 and 2021, helped by the Index heavy Oil & Gas Exploration, Banking, Power, and Fertilizer sectors. Contrary to the foreign portfolio outflows during the last three years, there are increasing odds of continuation of foreign portfolio inflows this year and beyond.

Taken it all together, we advise investors to look past the dismal performance of the stock market over the last two years or so and consider adding their positions in equities gradually, keeping long-term investment objectives in mind as the market holds potential to deliver robust returns.

After recording 10.3% YoY in July 2019, inflation as measured by CPI is expected to go up in the next few months. The inflation outlook is driven by upside inflationary pressures from the second-round impact of the recent PKR depreciation, higher government borrowing from the banking system, recent adjustments in utility prices and rising food prices. However, the inflation going forward in FY21 is expected to fall. We expect inflation to peak at around 13% in February and start falling by the end of FY2020. We expect that interest is nearing its peak however, a further 50 bps increase can not be ruled out.

During the outgoing month, SBP held two T-Bill auctions with a combined target of Rs. 2,600 billion against the maturity of Rs. 3,341 billion. In the first T-Bill auction, an amount of Rs. 1,229 billion was accepted at a cut-off yield of 13.75%, 13.95% and 14.25% for 3-month, 6-month and 12-month tenors, respectively. In the second T-Bill auction, an amount of Rs. 701 billion was accepted where the cut-off yield was maintained at 13.75% for the 3-month tenor while yields for 6-month and 12-month tenures were noted at 13.94% and 14.24%, respectively. In the PIB auction, bids worth Rs. 514 billion were realized for 3-year, 5-year and 10-year at a cut-off yield of 14.25%, 13.55% and 13.15%, respectively; while bids for 20-years were rejected. Furthermore, SBP in the recent floating rate PIB auction dated 21-August-19, attracted bids worth Rs. 47.5 billion. Out of the total bids, only Rs. 41.5 billion was accepted at a cut-off margin of 75 basis points over the benchmark (i.e. weighted average yield of the 6-month Market Treasury Bills).

We have calibrated the portfolio of our money market and income funds based on our interest rate outlook and will remain alert to any developments that may influence our investment strategy.

NBP Government Securities Liquid Fund (NGSLF)Formerly; NAFA Government Securities Liquid Fund (NGSLF)

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 investment policies and the risks involved.

Dr. Amjad Waheed, CFASajjad Anwar, CFA

Muhammad Ali Bhabha, CFA, FRMHassan Raza, CFA

August 2019

31-August-19Asset Allocation (% of Total Assets)

Sindh Workers' Welfare Fund (SWWF)

94.3%4.4%1.3%

100.0%Nil

31-July-19

62.9%28.0%9.1%

100.0%Nil

T-Bills Bank Deposits Others including receivables Total Leverage

Unit Price (31/08/2019): Rs. 10.1962

Launch Date: May 15, 2009 Fund Size: Rs. 2,339 million Type: Open-end – Money Market FundDealing Days: Daily – Monday to Saturday Dealing Time: (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M (Saturday) 9:00 A.M to 1:00 P.M Settlement: 2-3 business days Pricing Mechanism: Forward Pricing Load: Front end: 0%, Back end: 0% Management Fee: 3% of Net Income (Min 0.4% p.a., Max 1.0% p.a.). 0.40% p.a. of average net assets during the month.Total Expense Ratio: 1.68% p.a. (including 0.34% government levies) Selling & Marketing expenses: 0.7% p.a.Risk Profile: Exceptionally Low Fund Stability Rating: "AAA (f)" by PACRA Listing: Pakistan Stock Exchange Custodian & Trustee: Central Depository Company (CDC) Auditors: Deloitte Yousuf Adil Chartered Accountants Benchmark:** 70% 3-Month PKRV & 30% average 3-Month deposit rates of three AA rated banks as selected by MUFAP Fund Manager: Muhammad Ali Bhabha, CFA, FRMMinimum Growth Unit: Rs. 10,000/- Subscription: Income Unit: Rs. 100,000/- Asset Manager Rating: AM1 by PACRA (Very High Quality)

The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs.18,580,263/-. If the same were not made the NAV per unit/last one year return of scheme would be higher by Rs. 0.0810/0.87%. For details investors are advised to read note 5 of the latest financial statements of the Scheme.

The Fund earned an annualized return of 12.3% during August 2019 versus the Benchmark return of 12.8%. The return generated by the Fund is net of management fee and all other expenses.

NGSLF's stability rating is 'AAA (f)' awarded by PACRA. NGSLF is the largest Fund in Pakistan with this rating. The rating reflects exceptionally strong credit and liquidity profile of the Fund. Average daily allocation for the last 365 days in short-term T-Bills was 77% of net assets. While at the end of the month, T-Bills comprised of around 94.3% of the Total Assets and around 97.6% of the Net Assets. Weighted average time to maturity of the Fund is 39 days.

We will rebalance the allocation of the Fund proactively based on the capital market outlook.

To generate optimal return with minimum risk, to provide easy liquidity and reasonable income to its unit holders by investing primarily in short-term Government Securities.

* Annualized Return Based on Morning Star Methodology All other returns are Annualized Simple Return

The performance reported is net of management fee & all other expenses and based ondividend reinvestment gross of with-holding tax where applicable.

Performance Period

Performance %August2019

12.3%

12.8%

FYTD2020

12.1%

12.5%

Rolling12

Months

9.6%

9.7%

8.5%

8.7%

FY2016

5.7%

6.0%

FY2017

7.6%

5.3%

FY2018

5.3%

5.4%

8.3%

8.7%

FY2015

7.6%

6.9%

Last 3years*

7.2%

6.9%

Last 5years*

8.5%

8.5%

Last 10years*

8.6%

8.5%

Since LaunchMay 15, 2009*

NBP Government Securities Liquid FundFormerly; NAFA Government Securities Liquid Fund (NGSLF)

Benchmark**

Notes: 1) 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.

Credit Quality of the Portfolio as of August 31, 2019 (% of Total Assets)

T-Bills (AAA rated)AAAAA+AAAA-A-Others including receivablesTotal

94.3%0.5%3.3%0.2%0.2%0.2%1.3%

100.0%

** effective from September 01, 2016; previously 70% 3-Month T-Bills & 30% average 3-Month depositrates (AA & above rated banks)

FY2019

Fund Manager’s Commentary

Page 05


NBP Money Market Fund (NMMF)Formerly; NAFA Money Market Fund (NMMF)


August 2019

To provide stable income stream with preservation of capital by investing in

AA and above rated banks and money market instruments.

The Fund earned an annualized return of 12.5% p.a. during August 2019 versus the Benchmark return of 12.8% p.a. Since its launch in February 2012, the Fund has outperformed its Benchmark by 1.4% p.a. by earning an annualized return of 7.9% p.a. This outperformance is net of management fee and all other expenses.

Being a money market scheme, the Fund has very restrictive investment guidelines. The authorized investments of the Fund include T-Bills, Bank Deposits and Money Market instruments. Minimum eligible rating is AA, while the Fund is not allowed to invest in any security exceeding six months maturity. The weighted average time to maturity of the Fund cannot exceed 90 days. The Fund is rated AA(f) by PACRA which denotes a very strong capacity to maintain relative stability in returns and very low exposure to risks.

Weighted average time to maturity of the Fund is 9 days. We will rebalance the allocation of the Fund proactively based on the capital market outlook.

Unit Price (31/08/2019): Rs. 9.8787MONTHLY REPORT (MUFAP's Recommended Format)

Launch Date: February 23, 2012Fund Size: Rs. 26,803 millionType: Open-end – Money Market FundDealing Days: Daily – Monday to SaturdayDealing Time: (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M (Saturday) 9:00 A.M to 1:00 P.MSettlement: 2-3 business daysPricing Mechanism: Forward PricingLoad:*** Front End Load (Individual): without life insurance 0.5%, with life insurance 3% (Nil on investment above Rs. 26 million) Front End Load (Other): 0.5% (Nil on investment above Rs. 16 million) Back End Load: NILManagement Fee: 3% of Net Income (Min 0.4% p.a., Max 1.0% p.a.) w.e.f 12-July-19. 0.49% p.a. of average net assets during the month.Selling & Marketing expenses: 0.7% p.a.Total Expense Ratio: 1.60% p.a. (including 0.35% government levies)Risk Profile: Very LowFund Stability Rating: "AA (f)" by PACRAListing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: Deloitte Yousuf Adil Chartered AccountantsBenchmark:** 70% 3-Month PKRV & 30% average 3-Month deposit rates of three AA rated banks as selected by MUFAPFund Manager: Muhammad Ali Bhabha, CFA, FRMMinimum Growth Unit: Rs. 10,000/-Subscription: Income Unit: Rs. 100,000/-Asset Manager Rating: AM1 by PACRA (Very High Quality)

Short Term Sukuks T-bills Commercial Paper Bank Deposits Others including receivables Total Leverage

Asset Allocation (% of Total Assets)


1.6%21.5%2.7%

71.8%2.4%

100.0%Nil

31-August-191.7%

--

92.9%5.4%

100.0%Nil

31-July-19

12.5%

12.8%

7.9%

6.5%

9.0%

8.7%

Aug2019

12.5%

12.5%

FYTD2020

10.1%

9.7%

Rolling12

Months

6.3%

4.6%

7.4%

6.9%

Last 3years*

7.4%

6.3%

Last 5years*

8.9%

6.8%

FY2015

FY2016

6.6%

5.1%

FY2017

5.6%

5.4%

FY2018

Since LaunchFebruary 23, 2012*


The performance reported is net of management fee & all otherexpenses and based on dividend reinvestment gross of with-holdingtax where applicable.

NBP Money Market FundFormerly: NAFA Money Market Fund

Performance Period

The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 82,886,133/-. If the same were not made the NAV per unit/last one year return of scheme would be higher by Rs. 0.0305/0.34%. For details investors are advised to read note 7 of the latest financial statements of the Scheme.



Notes: 1) 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.

Performance %


Government Securities (AAA rated)AA+AAA-Others including receivablesTotal

21.5%71.6%4.4%0.1%2.4%

100.0%

** effective from September 01, 2016; Previously 3-Month deposit rates (AA & above rated banks)*** effective from January 02 , 2017

FY2019

Page 06


Top Sukuk Holdings (as at August 31, 2019)Name of Sukuk

HUBCO Sukuk 02-APR-19 02-OCT-19Total

% of Total Assets

1.6%1.6%


NBP Islamic Money Market Fund (NIMMF)Formerly; NAFA Islamic Money Market Fund (NIMMF)

Page 07



August 2019

To provide competitive return with maximum possible capital preservation by

investing in low risk and liquid Shariah Compliant authorized instruments.

The Fund generated an annualized return of 11.7% p.a. for the month of August 2019 versus the Benchmark return of 5.4% p.a., thus registering an outperformance of 6.3% p.a. This reported return is net of management fee and all other expenses.

The Fund aims to consistently provide better return than the profit rates offered by Islamic Banks / Islamic windows of commercial banks. Minimum eligible rating is AA, while the Fund is not allowed to invest in any security exceeding six months maturity. The weighted average time to maturity of the Fund cannot exceed 90 days which provides easy liquidity along with a high-quality credit profile.

Around 83% of net assets of the Fund are invested in bank deposits which enhances the liquidity profile of the Fund. The weighted average time to maturity of the Fund is 1 day.


Unit Price (31/08/2019): Rs. 10.2292MONTHLY REPORT (MUFAP's Recommended Format)

Launch Date: February 28, 2018Fund Size: Rs. 3,593 millionFund Size (excluding Rs. 3,116 millioninvestment by Fund of Funds) Type: Open-end – Shariah Compliant Money Market FundDealing Days: Daily – Monday to SaturdayDealing Time: (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M (Saturday) 9:00 A.M to 1:00 P.MSettlement: 2-3 business daysPricing Mechanism Forward PricingLoad: Front End Load: 0.5%Back End Load: NILManagement Fee: 1% of Net Income (Min 0.1% p.a., Max 1.0% p.a.). 0.12% p.a. of average net assets during the month. Total Expense Ratio: 1.28% (including 0.28% government levies)Selling & Marketing expenses: 0.7% p.a.Risk Profile: Very LowFund Stability Rating: "AA (f)" by PACRAListing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: Deloitte Yousuf Adil Chartered AccountantsBenchmark: Three months average deposit rates of three (3) AA rated Islamic Banks or Islamic windows of Conventional Banks as selected by MUFAP.Fund Manager: Muhammad Ali Bhabha, CFA, FRMMinimum Growth Unit: Rs. 10,000/-Subscription: Income Unit: Rs. 100,000/-Asset Manager Rating: AM1 by PACRA (Very High Quality)

Placement with BanksBank Deposits Others including receivables Total Leverage



15.9%82.7%1.4%

100.0%Nil

31-August-19-

99.0%1.0%

100.0%Nil

31-July-19

7.9%

3.4%

Since LaunchFebruary 28, 2018*

11.7%

5.4%

August2019

12.1%

5.2%

FYTD2020

9.3%

3.8%

Rolling12

Months

8.1%

3.4%

FY2019

*Annualized Return Based on Morning Star MethodologyAll other returns are Annualized Simple Return

NBP Islamic Money Market FundFormerly; NAFA Islamic Money Market Fund (NIMMF)

Performance Period

The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 3,417,106/-. If the same were not made the NAV per unit/since inception return of scheme would be higher by Rs. 0.0097/0.10%. For details investors are advised to read note 7 of the latest financial statements of the Scheme.




Performance %


AAAOthers including receivablesTotal

98.6%1.4%

100.0%

Note: Amount invested by fund of funds is Rs. 447 million

The performance reported is net of management fee & all other expenses andbased on dividend reinvestment gross of with-holding tax where applicable.


NAFA Government Securities Savings Fund (NGSSF)



The performance reported is net of management fee & all other expensesand based on dividend reinvestment gross of with-holding tax where applicable.



August 2019



14.6%57.2%25.9%2.3%

100.0%Nil

31-August-1913.8%57.7%26.6%1.9%

100.0%Nil

31-July-19PIBs Tbills Bank Deposits Others including receivables Total Leverage

Unit Price (31/08/2019): Rs. 10.5305

Launch Date: July 10, 2014 Fund Size: Rs. 937 million Type: Open-end – Income Fund Dealing Days: Daily – Monday to Saturday Dealing Time: (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M (Saturday) 9:00 A.M to 1:00 P.MSettlement: 2-3 business days Pricing Mechanism Forward Pricing Load:*** Front End Load (Individual): without life insurance 1%, with life insurance 3% (Nil on investment above Rs. 26 million) Front End Load (Other): 1% (Nil on investment above Rs. 16 million) Back End Load: NILManagement Fee: 1.5% of Net Income (min: 0.2% p.a., max: 1.0% p.a.) w.e.f. 12-Jul-19. 0.22% p.a. of average net assets during the month.Total Expense Ratio: 1.40% p.a.(including 0.29% government levies)Selling & Marketing expenses: 0.7% p.aRisk Profile: Low Fund stability rating "AA- (f)" by PACRA Listing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC) Auditors: A. F. Ferguson & Co. Chartered AccountantsBenchmark:** 6-Month PKRV Fund Manager: Muhammad Ali Bhabha, CFA, FRM Minimum Growth Unit: Rs. 10,000/- Subscription: Income Unit: Rs. 100,000/- Asset Manager Rating: AM1 by PACRA (Very High Quality)


To provide competitive return from portfolio of low credit risk by investing primarily in Government Securities.

During the month under review, the Fund generated an annualized return of 13.1% against the Benchmark return of 13.9%. Since its launch in July 2014, the Fund offered an annualized return of 8.0% against the Benchmark return of 7.7%, hence an outperformance of 0.3% p.a. This outperformance is net of management fee and all other expenses.

NAFA Government Securities Savings Fund (NGSSF) invests a minimum of 70% in Government Securities. The Fund invests a minimum 10% of its assets in less than 90 days T-Bills or saving accounts with banks, which enhances liquidity profile of the Fund.

As the asset allocation of the Fund shows, exposure in Government Securities was around 72% of the Total Assets and 73% of the Net Assets at the end of the month with average Yield to Maturity of 13.59% p.a. Last one year allocation in Government Securities was around 72% of net assets. The weighted average time-to-maturity of the Fund is 0.3 year.


Performance Period

Performance %

8.0%

7.7%

Since LaunchJuly 10, 2014*

13.1%

13.9%

August2019

12.0%

13.7%

FYTD2020

8.9%

11.0%

Rolling12

Months

7.8%

9.9%

FY2019

5.8%

5.9%

6.5%

6.2%

FY2016

6.6%

7.8%

7.9%

7.6%

Last 3years*

Last 5years*

NAFA Government Securities Savings Fund

Benchmark**



Government Securities (AAA rated)AAAAA+AA-A+AA-Others including receivablesTotal

71.8%0.4%0.1%1.3%15.2%8.8%0.1%2.3%

100.0%

** effective from September 01, 2016; Previously 70% average 6-Month PKRV & 30% average 3-Month deposit rates (A+ & above rated banks)*** effective from January 02, 2017

FY2017

5.0%

6.2%

FY2018

Page 08



NBP Government Securities Plan-I (NGSP-I)

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 investment policies and the risks involved.



August 2019

PIBs T-Bills Bank Deposits Others including receivablesTotal Leverage

86.4%5.0%6.5%2.1%

100.0%Nil

31-August-1985.0%4.9%8.7%1.4%

100.0%Nil

31-July-19Asset Allocation (% of Total Assets)


Unit Price (31/08/2019): Rs. 10.1938

Launch Date: March 18, 2019Fund Size: Rs. 272 millionType: Open-end – Income FundDealing Days: Daily – Monday to FridayDealing Time: (Mon - Fri) 9:00 A.M to 2:00 P.MSettlement: 2-3 business daysPricing Mechanism: Forward PricingLoad: Front End Load: without life takaful 1%, with life takaful (amount upto Rs.5 million) 3%, with life takaful (amount over & above Rs.5 million) 1% Back End: 0%, Contingent Load: 0.25%Management Fee: 0.6% p.a.Total Expense Ratio: 1.66% p.a.(including 0.33% government levies)Selling & Marketing expenses: 0.1% p.a.Risk Profile: LowFund Stability Rating: "AA-(f)" by PACRAListing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: KPMG Taseer Hadi & Co. Chartered AccountantsBenchmark:** Average 6-month PKRVFund Manager: Muhammad Ali Bhabha CFA,FRMMinimum Subscription: Rs. 10,000/-Asset Manager Rating: AM1 by PACRA (Very High Quality)

To provide attractive return with capital preservation at maturity of the plan, by investing in Government Securities not exceeding maturity of the plan.

The Fund posted an annualized return of 15.7% p.a. in August 2019 as compared to the Benchmark return of 13.9% p.a. Since inception, the Fund generated an annualized return of 5.4% p.a. against the Benchmark return of 12.5% p.a. The performance is net of management fee and all other expenses.

NBP Government Securities Plan I (NGSP-I) has a fixed maturity of July 12, 2021. The Fund invests a minimum of 90% in Government Securities and maximum 10% of its assets in saving accounts with banks or in upto 90 days T-Bills, which enhances liquidity profile of the Fund.

As the asset allocation of the Fund shows, exposure in Government Securities was around 91% of Total Assets and 93% of Net Assets respectively, at the end of the month. The weighted average time-to-maturity of the Fund is 1.6 years.


The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 158,332/. If the same were not made the NAV per unit/since inception return of scheme would be higher by Rs. 0.0059/0.13%. For details investors are advised to read the note 10.1 of the latest financial statements of the Scheme.

*Simple Annualized Return The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable.

Performance Period

Performance %*

5.4%

12.5%

Since LaunchMarch 18, 2019

15.7%

13.9%

August2019

11.3%

13.7%

FYTD2020

NBP Government Securities Plan-I

Benchmark




Government Securities (AAA rated)AA-Others including receivablesTotal

91.4%6.5%2.1%

100.0%

Page 09


NBP Mahana Amdani Fund (NMAF)Formerly; NAFA Savings Plus Fund (NSPF)


August 2019



Placements with Banks Commercial Paper Bank Deposits Others including receivables Total Leverage

8.1%7.5%

81.8%2.6%

100.0%Nil

31-August-199.2%

-89.2%1.6%

100.0%Nil

31-July-19

Unit Price (31/08/2019): Rs. 10.3709

Launch Date: November 21, 2009Fund Size: Rs. 598 millionType: Open-end – Income fundDealing Days: Daily – Monday to SaturdayDealing Time: (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M (Saturday) 9:00 A.M to 1:00 P.MSettlement: 2-3 business daysPricing Mechanism: Forward PricingLoad:*** Front End Load (Individual): without life insurance 0.5%, with life insurance 3% (Nil on investment above Rs. 26 million) Front End Load (Other): 0.5% (Nil on investment above Rs. 16 million) Back End Load: NILManagement Fee: 6% of Net Income (min: 0.5% p.a., max: 1.50% p.a.) w.e.f 12-July-19. 0.79% p.a. of average net assets during the month Total Expense Ratio: 2.38% p.a. (including 0.37% government levies)Selling & Marketing expenses: 0.7% p.a.Risk Profile: Very LowFund Stability Rating: "AA- (f)" by PACRAListing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: A. F. Ferguson & Co. Chartered Accountants (from 2019-20)Benchmark:** 6-Month KIBOR Fund Manager: Muhammad Ali Bhabha, CFA, FRMMinimum Growth Unit: Rs. 1,000/-Subscription: Income Unit: Rs. 100,000/-Asset Manager Rating: AM1 by PACRA (Very High Quality)

The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 2,363,940/-. If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs. 0.0410/0.44%. For details investors are advised to read note 5 of the latest financial statements of the Scheme.

To minimize risk, preserve capital and generate a reasonable return along with a high degree of liquidity from a portfolio primarily constituted of bank deposits and money market instruments.

The Fund earned an annualized return of 12.1% p.a. during the month versus the Benchmark return of 14.1% p.a. Since its launch in November 2009, the Fund has offered an annualized return of 8.6% p.a. against the Benchmark return of 7.4% p.a., hence an outperformance of 1.2% p.a. This outperformance is net of management fee and all other expenses.

The Fund is allowed to invest in Government Securities up to a maximum maturity of 3 years and also in debt securities with rating of A and above with a maximum remaining maturity of 1 year. The Fund invests 25% of its net assets in less than 90 days T-Bills or saving accounts with banks, which further enhances liquidity profile of the Fund.

The portfolio of NMAF is invested in TDRs, Commercial Papers and bank deposits. The weighted average time to maturity of the entire Fund is around 16 days. Our internal guidelines permit MTS financing in only fundamentally strong companies with lower volatility. It is pertinent to mention that in this asset class the Fund provides financing at only pre-determined rates of return with no direct exposure to the stock market.






Performance Period

Performance %Aug2019

12.1%

14.1%

FYTD2020

12.0%

13.8%

Rolling12

Months

9.1%

10.2%

10.1%

11.2%

8.7%

6.7%

FY2015

6.3%

4.7%

FY2016

8.1%

5.8%

FY2017

5.4%

6.3%

FY2018

7.9%

8.0%

Last 3years*

7.6%

7.0%

Last 5years*

8.6%

7.4%

Since LaunchNovember 21, 2009*

NBP Mahana Amdani FundFormerly; NAFA Savings Plus Fund

Benchmark**



AAAAA+AAAA-A+AA-Others including receivablesTotal

1.2%0.4%7.8%64.8%18.2%4.8%0.2%2.6%

100.0%

** effective from September 01, 2016; Previously Average 6-Month deposit rate (A & above rated banks)*** effective from January 02, 2017

FY2019

Page 10



NBP Riba Free Savings Fund (NRFSF)Formerly; NAFA Riba Free Savings Fund (NRFSF)

Page 11





August 2019

Placement with BanksCommercial Paper (Islamic) Bank Deposits Others including receivables Total Leverage

14.5%14.2%70.3%1.0%

100.0%Nil

31-August-1913.6%10.1%75.4%0.9%

100.0%Nil



Unit Price (31/08/2019): Rs. 10.4028

Launch Date: August 20, 2010Fund Size: Rs. 7,373 millionType: Open-end – Shariah Compliant Income FundDealing Days: Daily – Monday to SaturdayDealing Time: (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M (Saturday) 9:00 A.M to 1:00 P.MSettlement: 2-3 business daysPricing Mechanism: Forward PricingLoad:*** Front End Load (Individual): without life Takaful 0.5%, with life Takaful 3% (Nil on investment above Rs. 26 million) Front End Load (Other): 0.5% (Nil on investment above Rs. 16 million) Back End Load: NILManagement Fee: 6% of Net Income (min: 0.5% p.a., max: 1.25% p.a.) w.e.f 12-jul-19. 0.74% p.a. of average net assets during the month.Total Expense Ratio: 1.97% p.a. (including 0.36% government levies)Selling & Marketing expenses: 0.7% p.a. Risk Profile: Very LowFund Stability Rating: "A(f)" by PACRAListing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: Deloitte Yousuf Adil Chartered AccountantsBenchmark:** 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAPFund Manager: Muhammad Ali Bhabha CFA,FRMMinimum Growth Unit: Rs. 10,000/-Subscription: Income Unit: Rs. 100,000/-Asset Manager Rating: AM1 by PACRA (Very High Quality)

To provide preservation of capital and earn a reasonable rate of return along with a high degree of liquidity by investing in short-term Shariah Compliant banks and money market / debt securities.

The Fund generated an annualized return of 11.4% for the month of August 2019 versus the Benchmark return of 5.7%, thus registering an outperformance of 5.7% p.a. This reported return is net of management fee and all other expenses.

The Fund aims to consistently provide better return than the profit rates offered by Islamic Banks / Islamic windows of commercial banks, while also providing easy liquidity along with a high-quality credit profile. The Fund is allowed to invest in short-term Shariah Compliant money market securities of up to six months maturity rated AA- or better. The Fund is not authorized to invest in corporate debt securities and equities.

Around 71 % of net assets of the portfolio are invested in bank deposits which enhance the liquidity profile of the Fund. The weighted average time to maturity of the Fund is 10 days.


The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 17,977,703/-. If the same were not made the NAV per unit/last one year return of scheme would be higher by Rs. 0.0254/0.27% For details investors are advised to read note 5 of the latest financial statements of the Scheme.


The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable.

Performance Period


11.4%

5.7%

Rolling12

Months

9.8%

4.2%

FYTD2020

11.4%

5.6%

8.8%

3.7%

7.4%

6.7%

FY2015

5.9%

3.1%

FY2017

5.2%

2.4%

FY2018

5.5%

4.9%

FY2016

7.0%

3.2%

Last 3years*

6.7%

4.1%

Last 5years*

7.9%

5.7%

Since LaunchAugust 20, 2010*

NBP Riba Free Savings FundFormerly; NAFA Riba Free Savings Fund (NRFSF)

Benchmark**




AAAAAAA-A+A-Others including receivablesTotal

0.3%8.5%5.8%58.1%26.3%1.0%

100.0%** effective from September 01, 2016; Previously Average 6-month deposit rate of A- and above rated Islamic Banks*** effective from January 02, 2017

FY2019

NBP Islamic Mahana Amdani Fund (NIMAF)Formerly; NBP Aitemaad Mahana Amdani Fund (NAMAF)


Page 12


*Simple Annualized Return The performance reported is net of management fee & all other expenses and basedon dividend reinvestment gross of with-holding tax where applicable.

Launch Date: October 06, 2018Fund Size: Rs. 10,896 millionType: Open-end – Shariah Compliant Income FundDealing Days: Daily – Monday to SaturdayDealing Time: (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M (Saturday) 9:00 A.M to 1:00 P.MSettlement: 2-3 business daysPricing Mechanism Forward PricingLoad: Front End Load : without life takaful 1%, with life takaful(amount upto Rs.5 million) 3%, with life takaful(amount over & above Rs.5 million) 1% Back End Load: NILManagement Fee: 1.5% of Net Income (Min 0.2%, Max 1.5% p.a.) w.e.f 12-July-2019 0.20% p.a. of average net assets during the month.

Total Expense Ratio: 1.42% (including 0.32% government levies)Selling & Marketing expenses: 0.7% p.aRisk Profile: LowFund Stability Rating: ‘A(f)’ by PACRAListing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: A. F. Ferguson & Co. Chartered AccountantsBenchmark: 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAPFund Manager: Muhammad Ali Bhabha, CFA, FRMMinimum Subscription Growth Unit: Rs. 10,000/- Income Unit: Rs. 100,000/-Asset Manager Rating: AM1 by PACRA (Very High Quality)

To provide monthly income to investors by investing in Shariah Compliant money market and debt avenues.

The Fund generated an annualized return of 12.0% p.a. in August 2019 versus the Benchmark return of 5.7% p.a., thus registering an outperformance of 6.3% p.a. This reported return is net of management fee and all other expenses.

The Fund aims to provide monthly income to investors by investing in Shariah Compliant money market and debt avenues. Minimum eligible rating is A-, while the Fund is allowed to invest with Islamic Banks, Islamic branches / windows of conventional banks providing easy liquidity. The Fund is allowed to invest in Shariah Compliant Money Market instruments & debt securities rated A- or better. The Fund is not authorized to invest in Equities. The weighted average time to maturity of the Fund cannot exceed 4 years excluding government securities.

Around 70% of net assets of the Fund are invested in bank deposits which enhances the liquidity profile of the Fund. The weighted average time to maturity of the Fund is 21 days.

We will rebalance the allocation of the Fund proactively based on the capital market outlook

August 2019

Since LaunchOctober 06, 2018

10.3%

4.3%

August 2019

12.0%

5.7%

FYTD 2020

12.1%

5.6%

NBP Islamic Mahana Amdani FundFormerly; NBP Aitemaad Mahana Amdani Fund

Performance Period

Sukuk Placement with BanksCommercial Paper (Islamic) Bank Deposits Others including receivables Total Leverage

3.1%15.0%10.8%69.4%1.7%

100.0%Nil

31-August-194.4%

17.7%3.0%

72.3%2.6%

100.0%Nil


Unit Price (31/08/2019): Rs. 10.1306





AAAAAAA-A+A-Others including receivablesTotal

0.2%11.9%2.7%57.6%25.9%1.7%

100.0%The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 7,313,776/-. If the same were not made the NAV per unit/last one year return of scheme would be higher by Rs. 0.0068/0.08%. For details investors are advised to read note 5 of the latest financial statements of the Scheme.


%*


Top Sukuk Holdings (as at August 31, 2019)Name of Sukuk

HUBCO Sukuk 02-APR-19 02-OCT-19Total

% of Total Assets

3.1%3.1%




Launch Date: October 28, 2011 Fund Size: Rs. 6,602 Million Type: Open-end – Income Fund Dealing Days: Daily – Monday to Saturday Dealing Time: (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M (Saturday) 9:00 A.M to 1:00 P.MSettlement: 2-3 business days Pricing Mechanism Forward Pricing Load:*** Front End Load (Individual): 1% (Nil on investment above Rs. 26 million) Front End Load (Other): 1% (Nil on investment above Rs. 16 million) Back End Load: NIL Management Fee: 6% of Net Income (min: 0.5% p.a., max: 1.5% p.a.) w.e.f 12-July-19. 0.83% p.a. of average net assets during the month. Total Expense Ratio: 2.10% p.a. (including 0.39% government levies)Selling & Marketing expenses: 0.7% p.a.Risk Profile: Low Fund stability rating ‘A+(f)’ by PACRA Listing: Pakistan Stock Exchange Custodian & Trustee: Central Depository Company (CDC)Auditors: KPMG Taseer Hadi & Co. Chartered AccountantsBenchmark:** 6-Month KIBOR Fund Manager: Muhammad Ali Bhabha, CFA, FRMMinimum Growth Unit: Rs. 10,000/- Subscription: Income Unit: Rs. 100,000/- Asset Manager Rating: AM1 by PACRA (Very High Quality)

To provide income enhancement and preservation of capital by investing in prime quality Financial Sector TFCs/Sukuks, Bank deposits and short-term money market instruments.

The Fund generated an annualized return of 12.8% p.a. in the month of August 2019 versus the Benchmark return of 14.1% p.a. Since its launch in October 2011, the Fund has generated an annualized return of 8.8% p.a. against the Benchmark return of 8.2% p.a., hence an outperformance of 0.6% p.a. This outperformance is net of management fee and all other expenses.

The Fund is unique as it invests a minimum 70% of its assets in Financial Sector (mainly banks) debt securities, instruments or deposits. Minimum entity rating of issuers of debt securities is “AA-“. This minimizes credit risk and at the same time enhances liquidity of the Fund. Duration of the overall portfolio cannot be more than one year. This minimizes interest rate or pricing risk. The Fund invests 25% of its net assets in less than 90 days T-Bills or saving accounts with banks, which further enhances liquidity profile of the Fund.

Exposure in TFCs was around 14% of net assets at the end of the month with average time to maturity of around 3.6 years. The TFC portfolio of the Fund is predominantly floating rate linked to KIBOR. The weighted average time-to-maturity of the Fund is 0.5 year.


TFC/Sukuk Commercial Paper Bank Deposits Others including receivables Total Leverage

13.9%6.9%

77.1%2.1%

100.0%Nil

31-August-198.5%

-89.1%2.4%

100.0%Nil


Unit Price (31/08/2019): Rs. 10.7348

Top TFC (as at August 31, 2019) (% of Total Assets)


Name of TFCHUBCO Suk Rev 22-AUG-19 22-AUG-23Jahangir Siddiqui and Company Ltd. 06-Mar-18 06-Mar-23JS Bank Limited 14-DEC-16 14-DEC-23HBL TFC 19-FEB-16 19-FEB-26Jahangir Siddiqui and Company Ltd. 18-Jul-17 18-Jul-22Bank of Punjab Limited 23-APR-18 23-APR-28Jahangir Siddiqui and Company Ltd. 24-JUN-16 24-Jun-21Total

% of Total Assets6.0%2.4%1.8%1.5%1.3%0.7%0.2%

13.9%

The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 13,587,532/-. If the same were not made the NAV per unit/last one year return of scheme would be higher by Rs. 0.0221/0.23%. For details investors are advised to read note 14.1 of the latest financial statements of the Scheme.



Performance Period


12.8%

14.1%

FYTD2020

12.5%

13.8%

Rolling12

Months

10.4%

11.2%

9.3%

10.2%

10.9%

8.3%

FY2015

6.4%

5.9%

FY2016

8.4%

6.0%

FY2017

6.0%

6.3%

FY2018

8.3%

8.0%

Last 3years*

8.3%

7.5%

Last 5years*

8.8%

8.2%

Since LaunchOctober 28, 2011*

NBP Financial Sector Income FundFormerly; NAFA Financial Sector Income Fund

Benchmark**


NBP Financial Sector Income Fund (NFSIF)Formerly; NAFA Financial Sector Income Fund (NFSIF)

August 2019


AAAAA+AAAA-A+AOthers including receivablesTotal

1.8%23.5%7.5%4.5%38.6%22.0%2.1%

100.0%

** effective from September 01, 2016; Previously 70% 6-Month KIBOR & 30% average 3-Month deposit rates (A & above rated banks)***effective from January 02, 2017

FY2019


Page 13


NBP Islamic Savings Fund (NBP-ISF)Formerly; NAFA Islamic Income Fund (NIIF)

Page 14


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 investment policies and the risks involved. The scheme holds certain non-compliant investments. Before making any investment decision, investors should review the latest monthly Fund Manager Report and Financial Statements. The reported returns may include provisioning and reversal of provisioning against some debt securities.

Details of Non-Compliant Investments

Particulars

New Allied Electronics Limited I

New Allied Electronics Limited II

SUKUK

SUKUK

110,000,000

4,905,437

110,000,000

4,905,437

-

-

-

-

-

-

Type ofInvestment

Value of Investments

before Provision


after Provision

% of Net

Assets

% ofGrossAssets

Provisionheld

General Information

Top Sukuk Holdings (as at August 31, 2019)

Name of the Members of Investment Committee


Investment Objective



Asset Allocation (% of Total Assets)Sukuks GOP Ijara Sukuks - Govt. BackedPlacement with Banks (Islamic) Bank Deposits Commercial Papers (Islamic) Others including receivables Total Leverage

4.4%-

14.7%65.2%14.7%1.0%

100.0%Nil

31-August-194.3%2.6%

14.1%63.3%14.0%1.7%

100.0%Nil

31-July-19

Launch Date: October 26, 2007Fund Size: Rs. 2,536 millionType: Open-end – Shariah Compliant Income FundDealing Days: Daily – Monday to FridayDealing Time: (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.MSettlement: 2-3 business daysPricing Mechanism: Forward PricingLoad:*** Front End Load (Individual): without life Takaful 1%, with life Takaful 3% (Nil on investment above Rs. 26 million) Front End Load (Other): 1% (Nil on investment above Rs. 16 million) Back End Load: NILManagement Fee: 6% of Net Income (min: 0.5% p.a., max: 1.0% p.a.) w.e.f 12-July-19. 0.73% p.a. of average net assets during the month.Total Expense Ratio: 1.98% p.a. (including 0.35% government levies)Selling & Marketing expenses: 0.7% p.a.Risk Profile: Low to MediumFund Stability Rating: "A-(f)" by PACRAListing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: Deloitte Yousuf Adil Chartered AccountantsBenchmark:** 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAPFund Manager: Muhammad Ali Bhabha, CFA, FRMMinimum Growth Unit: Rs. 10,000/-Subscription: Income Unit: Rs. 100,000/-Asset Manager Rating: AM1 by PACRA (Very High Quality)

To earn a reasonable rate of return in a Shariah compliant manner by investing in Shariah Compliant debt securities, money market instruments and bank deposits.

During the month under review, the Fund posted an annualized return of 11.2% p.a. as compared to the Benchmark return of 5.7% p.a., thus register-ing an outperformance of 5.5% p.a. This outperformance is net of manage-ment fee and all other expenses.

The allocation in corporate Sukuks stood at 4.5% of the net assets. Around 66% of net assets of the portfolio are allocated in bank deposits. The higher allocation in bank deposits is due to better yields as compared to other authorized alternative investment avenues.

The weighted average Yield-to-Maturity (YTM) of the Sukuk portfolio is around 15.5% p.a. and weighted average time to maturity is 5.0 years. The weighted average time to maturity of the Fund is 87 days.

We will rebalance the allocation of the fund proactively based on the capital market outlook.

Name of Sukuk

Engro Polymer Chemical Ltd 11-JAN-19 11-JUL-26SHAKARGANJ FOODS 10-JUL-18 10-JUL-24Total

% of Total Assets

3.3%1.1%4.4%

MONTHLY REPORT (MUFAP's Recommended Format)Unit Price (31/08/2019): Rs. 9.6981 August 2019




Performance Period


FY2015

11.2%

5.7%

Rolling12

Months

9.5%

4.2%

FYTD2020

10.8%

5.6%

8.5%

3.7%

9.2%

6.6%

FY2016

7.4%

4.8%

FY2017

5.4%

3.9%

FY2018

5.1%

2.4%

6.7%

3.4%

Last 3years*

7.2%

4.2%

Last 5years*

7.9%

5.6%

Last 10years*

6.8%

5.7%

Since Launch October 26, 2007*

NBP Islamic Savings FundFormerly; NAFA Islamic Income Fund

Benchmark**





0.2%0.1%18.1%0.2%52.3%1.1%27.0%1.0%

100.0%

** effective from March 14, 2017; Previously 1-year average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP*** effective from January 02, 2017

FY2019

NBP Income Opportunity Fund (NIOF)Formerly; NAFA Income Opportunity Fund (NIOF)


General Information

Top Ten TFC/Sukuk Holdings (as at August 31, 2019)





Asset Allocation (% of Total Assets) 31-August-19



TFCs / Sukuks Commercial Papers (Islamic) Placements with Banks Bank Deposits Others including receivables Total Leverage

38.0%9.7%2.4%

47.1%2.8%

100.0%Nil

31-July-1934.1%9.5%2.3%

51.9%2.2%

100.0%Nil

Launch Date: April 21, 2006Fund Size: Rs. 5,343 millionType: Open-end – Income FundDealing Days: Daily – Monday to SaturdayDealing Time: (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M (Saturday) 9:00 A.M to 1:00 P.MSettlement: 2-3 business daysPricing Mechanism: Forward PricingLoad:** Front End Load (Individual): 1% (Nil on investment above Rs. 26 million) Front End Load (Other): 1% (Nil on investment above Rs. 16 million) Back End Load: NILManagement Fee: 6% of Net Income (min: 0.5% p.a., max: 1.0% p.a.) w.e.f 12-July-19. 0.78% p.a. of average net assets during the month.Total Expense Ratio: 2.03% p.a.(including 0.36% government levies)Selling & Marketing expenses: 0.7% p.a.Risk Profile: LowFund Stability Rating: "A(f)" by PACRAListing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: Deloitte Yousuf Adil Chartered AccountantsBenchmark: 6-Month KIBORFund Manager: Muhammad Ali Bhabha, CFA, FRMMinimum: Growth Unit: Rs. 10,000/-Subscription: Income Unit: Rs. 100,000/-Asset Manager Rating: AM1 by PACRA (Very High Quality)

To seek maximum possible preservation of capital and a reasonable rate of return via investing primarily in money market & debt securities having good credit rating and liquidity.

The Fund posted an annualized return of 11.1% p.a. in August 2019 as compared to the Benchmark return of 14.1% p.a. The reported return is net of management fee and all other expenses.

The weighted average time to maturity of the Fund is around 1.4 years. The Fund's sector allocation is fairly diversified with exposure to Banking, Financial Services and Fertilizer sectors. TFC portfolio of the Fund is predominantly floating rate linked to KIBOR. However, since TFCs prices may go up or down, therefore, only investors with medium-term investment horizon are advised to invest in this Fund.


Name of TFCs / SukuksDawood Hercules Corp Ltd 16-NOV-17 16-NOV-22JS Bank Limited 14-DEC-16 14-DEC-23HUBCO Suk-2 Rev 22-AUG-19 22-AUG-23HBL TFC 19-FEB-16 19-FEB-26BANK ALFALAH LTD - V - REVISED 20-FEB-13 20-FEB-21Jahangir Siddiqui and Company Ltd. 06-Mar-18 06-Mar-23Bank of Punjab Limited 23-APR-18 23-APR-28JS Bank Limited 29-DEC-17 29-DEC-24Javedan Corp Ltd. Suk 04-Oct-18 04-Oct-26Silk Bank Limited 10-Aug-17 10-Aug-25Total

7.9%5.5%3.7%3.6%3.0%2.7%2.7%1.8%1.8%1.6%34.3%

% of Total Assets


Particulars

AgriTech Limited I - Revised II 29-NOV-07 29-NOV-19

AgriTech Limited V 01-JUL-11 01-JAN-20

Azgard Nine Limited III (PP) - Revised 04-DEC-07 04-DEC-20

Azgard Nine Limited V (PPTFC Markup) 31-MAR-12 31-MAR-21

Dewan Cement Limited (Pre-IPO) 17-JAN-08 17-JAN-22

New Allied Electronics Limited (PP) 15-MAY-07 15-NOV-20

PACE Pakistan Limited - Revised 15-FEB-08 15-FEB-22

Saudi Pak Leasing Company Limited - Revised II 13-MAR-08 13-MAR-21

Worldcall Rs - III 10-APR-18 20-SEP-26

Eden House Limited - Sukuk Revised 29-MAR-08 29-SEP-19

New Allied Electronics Limited II - Sukuk 03-DEC-07 03-DEC-20

Azgard Nine Limited (Non-Voting Ordinary Shares)

Total

TFC

TFC

TFC

TFC

TFC

TFC

TFC

TFC

TFC

TFC

Sukuk

Sukuk

Equity

149,860,200

32,320,000

108,376,850

82,180,000

150,000,000

31,706,536

149,820,000

41,321,115

74,976,975

9,056,250

44,148,934

12,854

873,779,714

149,860,200

32,320,000

108,376,850

82,180,000

150,000,000

31,706,536

149,820,000

41,321,115

74,976,975

9,056,250

44,148,934

12,854

873,779,714

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

0.0%

-

-

-

-

-

-

-

-

-

-

-

-

0.0%

Type ofInvestment


before Provision


after Provision

% of Net

Assets

% ofGrossAssets

Provisionheld

MONTHLY REPORT (MUFAP's Recommended Format)Unit Price (31/08/2019): Rs. 10.9319 August 2019




4.0%23.6%18.8%14.0%26.4%8.4%2.0%2.8%

100.0%


** effective from January 02, 2017


The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable.

Performance Period


FY2015

13.2%

9.0%

FY2017

6.3%

6.1%

FY2018

5.3%

6.3%

FY2016

7.5%

6.5%

11.1%

14.1%

FYTD2020

11.1%

13.8%

Rolling12

Months

9.9%

11.2%

9.2%

10.2%

7.1%

8.0%

Last 3years*

8.3%

7.8%

Last 5years*

7.9%

9.6%

Last 10years*

8.1%

10.1%

Since LaunchApril 21, 2006 *

NBP Income Opportunity FundFormerly; NAFA Income Opportunity Fund (NIOF)

Benchmark

FY2019

Page 15


NBP Savings Fund (NBP-SF)Formerly; NAFA Income Fund (NIF)


Top TFC (as at August 31, 2019)


General Information




Asset Allocation (% of Total Assets) 31-August-19



Name of TFC / SukukAskari Commercial Bank Limited 30-SEP-14 30-SEP-24Jahangir Siddiqui and Company Ltd. 24-Jun-16 24-Jun-21Jahangir Siddiqui and Company Ltd. 18-Jul-17 18-Jul-22Total

% of Total Assets3.1%1.7%1.4%6.2%

Particulars

AgriTech Limited II - Revised II 14-JAN-08-14-JUL-21

AgriTech Limited V 01-JUL-11-01-JAN-20

Saudi Pak Leasing Company Limited- Revised II13-MAR-08 13-MAR-21

Worldcall RS-III 10-APR-18 20-SEP-26

Eden House Limited - Sukuk Revised 29-MAR-08 29-SEP-19

New Allied Electronics Limited II - Sukuk 03-DEC-07 03-DEC-20

Total

149,875,800

22,180,000

41,321,115

23,326,170

19,687,500

49,054,371

305,444,956

149,875,800

22,180,000

41,321,115

23,326,170

19,687,500

49,054,371

305,444,956

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

TFC

TFC

TFC

TFC

SUKUK

SUKUK

Type ofInvestment


beforeProvision


after Provision

%of NetAssets

%of GrossAssets

ProvisionheldTFCs / Sukuks

Commercial paper Placement with Banks Bank Deposits Others including receivables Total Leverage

6.2%9.9%8.3%

73.4%2.2%

100.0%Nil

31-July-196.0%1.9%8.0%

82.1%2.0%

100.0%Nil

Launch Date: March 28, 2008Fund Size: Rs. 1,164 millionType: Open-end – Income FundDealing Days: Daily – Monday to FridayDealing Time: (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.MSettlement: 2-3 business daysPricing Mechanism: Forward PricingLoad:** Front End Load (Individual): without life insuranc