fund manager report - awt investmentsduring december, e&p was the top performing sector amid...

FOR THE MONTH DECEMBER 2017

FUND MANAGER REPORT

AWTINVESTMENTS

AWT INVESTMENTS LIMITED

Fund Manager Report - December 2017

Key Economic Indicators

2 of 11 MUFAP’s recommended format

“This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an o�er 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 O�ering Document to understand the investment policies and risks involved.”

AWT Investments Limited

Economic Indicators May-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17External Sector IndicatorsOverall Balance of Payments USD million (688) 88 926 309 606 397 (336) 271 1,532 (147) 761 352 793 n.a.Current Account Balance USD million (792) (1,083) (1,189) (744) (562) (1,234) (1,581) (1,431) (2,053) (550) (956) (1,315) (1,436) n.a.Exports USD million 1,832 1,727 1,780 1,638 1,801 1,766 1,944 1,865 1,631 2,104 1,744 1,980 2,141 n.a.Imports USD million 4,008 4,488 4,737 4,445 5,009 4,052 4,572 5,054 4,835 4,262 3,911 4,442 4,482 n.a.Worker's Remittances USD million 1,799 1,584 1,488 1,417 1,695 1,539 1,867 1,840 1,542 1,955 1,294 1,654 1,577 n.a.Foreign Direct Investment USD million 64 595 81 123 297 132 295 199 223 235 205 278 207 n.a.Foreign Portfolio Investment USD million 4 (302) (75) 1 (8) (41) 26 (871) (11) (145) 28 25 (43) n.a.Forex Reserves USD billion 21.61 23.20 22.24 22.07 21.80 21.57 21.19 21.40 20.44 20.00 20.05 19.90 18.75 20.19 Exchange Rate against PKRUSD Period End 104.74 104.38 104.75 104.79 104.81 104.73 104.81 104.84 105.40 105.23 105.41 105.33 105.38 110.54 Inflation IndicatorsGeneral CPI YoY change 3.17% 3.70% 3.66% 4.22% 4.94% 4.78% 5.02% 3.93% 2.91% 3.42% 3.86% 3.80% 3.97% 4.57%Food CPI YoY change 2.10% 3.00% 2.60% 3.70% 5.00% 4.40% 4.90% 2.40% -0.10% 1.30% 2.40% 2.20% 2.40% 3.80%Core (NFNE) YoY change 4.60% 5.20% 5.40% 5.30% 5.30% 5.50% 5.50% 5.50% 5.60% 5.50% 5.40% 5.30% 5.50% 5.50%Core (Trimmed) YoY change 3.60% 3.70% 3.80% 4.10% 4.50% 4.80% 4.80% 4.20% 4.00% 4.20% 4.10% 4.00% 4.20% 4.70%Interest RatesSBP Policy Rate Current 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75%6 Month KIBOR Month Avg. 6.31% 6.15% 6.12% 6.13% 6.14% 6.16% 6.15% 6.15% 6.14% 6.15% 6.16% 6.17% 6.18% 6.21%12 Month KIBOR Month Avg. 6.62% 6.43% 6.41% 6.41% 6.41% 6.47% 6.45% 6.46% 6.46% 6.46% 6.47% 6.47% 6.47% 6.49%3 Month T-Bill Yield Month Avg. 6.11% 6.67% 5.90% 5.92% 5.94% 5.97% 5.99% 5.99% 5.98% 5.98% 5.98% 5.98% 5.97% 6.00%6 Month T-Bill Yield Month Avg. 6.14% 5.98% 5.91% 5.96% 5.98% 6.00% 6.01% 6.01% 6.00% 6.00% 6.01% 6.01% 6.01% 6.02%12 Month T-Bill Yield Month Avg. 6.18% 6.03% 5.94% 5.98% 5.99% 6.03% 6.05% 6.04% 6.03% 6.03% 6.03% 6.03% 6.03% 6.04%10 Year PIB Yield Month Avg. 8.18% 7.80% 7.94% 7.94% 7.94% 7.94% 7.94% 7.94% 7.94% 7.94% 7.94% 7.94% 7.94% 7.94%n.a.=Not AvailableSource: SBP, MoF, PBS

Market ReviewFund Manager Report - December 2017



Money Market Review:In the outgoing month, the government raised a total of PKR0.68bn as against the amount of PKR 1100bn in Treasury Bills. No participation was witnessed in the 12M paper in both the auctions held. The yield across 3M and 6M securities remained at 5.9910% and 6.0109%, also no participation was witnessed in 6M paper in the second T Bill auction held in Dec’17.

PIBs yields have moved up as indicated is PKRV of 3, 5, and 10yr up by 35bps, 32bps and 10bps to 7.15%, 7.66%, and 8.34% respectively. Activity remained very thin in PIB market given market expectations of possible increase in the policy rate by January 2018 end.

Equity Market Review:The market witnessed strong rebound in last seven trading sessions after hitting one and half year intraday low of 37,768 on December 19 and closed the month with 1.15% gain at 40,471.48. In the period July-Dec 17, the index is down 13.1%. The month started on depressed note amid weakening Rupee falling over 5%. After the halt in rupee slide and some clarity on the political front with the passage of Delimitation Bill that signaled possibility of timely elections in 2018, last days of the month saw market rebounding under the lead of market heavy weight banks and oil/gas exploration stocks. by oversold reading.

Foreign selling eased o� in Dec-17, as net out�ows stood at USD 4.3mn vs. USD51.8mn in the previous month. Amongst local participants, companies and mutual funds stood out as net buyers at USD25.1 and 17.9mn respectively.

During December, E&P was the top performing sector amid further 5% increase in international oil prices. Banks also outperformed and rebounded strongly from their lows in the month amid expectations of increase in policy rate by the central bank in January 2018. Textile stocks also rebounded in December as Rupee depreciation has improved textile export prospects. Cements stocks witnessed sharp lows in December, before rebounding strongly in last days of the month amid oversold levels and attractive valuations. At the same time, oil/gas marketing distribution companies, re�neries and IPPs underperformed as uncertainty prevailed over the future of furnace oil based power projects, following government announcement to give preference to LNG �red power plants and reduce electricity purchase from existing furnace oil plants.

In December, leading brokerage houses came out with their strategy reports for 2018, giving KSE100 targets in the range of 45,000-50,000. These sell side reports on market outlook partly helped in controlling panic like situation earlier in December. In the near term, domestic politics will continue to dominate investors’ sentiments as the country moves into election year. On macroeconomic front, the growing size of trade de�cit and widening current account de�cit has exposed the rupee for further devaluation in coming months. Moreover, in�ation number is gradually on the rise and there is distinct possibility that the central bank may opt for tightening by increasing the policy rate at 25 bps (presently at 5.75%) in its scheduled MPS announcement by January end. Overall direction of the market is expected to be sideways with sector speci�c developments driving the index such as movement in international oil prices (for E&P) or possible increase in policy rate (for banks). While index heavy weight sectors like E&P and Banks may bene�t, these developments will further deepen macroeconomic concerns given the negative impact of oil price increase on trade balance and interest rate increase on debt servicing cost for borrowers (most signi�cantly for the government).

Economic Review:Major event on the economic front was 5% depreciation of Pak rupee against USD to 110.6 from 105.4 in December, after remaining mostly unchanged during past four years. Currency started to move downward on December 12 and reached the present levels on December 20. Both the central bank and government described this adjustment as a necessary (market driven) move in the backdrop of increasing trade de�cit of the country.

CPI in�ation increased by 4.6% YoY in December 2017 as compared to an increase of 4% in the previous month (and 3.7% increase in December 2016). On month on month basis, it decreased by 0.1% in December 2017 as compared to an increase of 0.4% in the previous month and decrease of 0.7% in December 2016.

The country’s current account de�cit has increased 122% to USD5.013bn in Jul-Oct of FY18 compared to USD2.259bn in the corresponding period. This has been a result of i)26% YoY growth in goods’ imports to USD17.4bn in 4MFY18 from USD13.8bnin 4MFY17. Jump in imports is led by machinery, petroleum products and LNG. On the other hand, exports posted some improvements on yearly basis where goods export grew by 10% YoY to USD9.3bn from USD8.5bn, incentivized by export package. Remittances remained stagnant growing by 2% YoY to USD6.4bn in 4MFY18from USD6.3bn.

GDP growth target remained on track for FY2018, with LSM posting growth of 8.77% in October and 9.64% growth in 4MFY18. The government has project-ed 6.3% expansion target for large industries in FY18, against FY17 increase of 5.6%.

Fitch Ratings has maintained Pakistan’s credit rating at ‘B’ with stable outlook and warned of medium-sized risks due to sliding foreign exchange reserves and widening current account de�cit since IMF’s program ended in September 2016. The credit rating agency said Pakistan is unlikely to face external �nancing di�culties in short term due to recent raising USD2.5bn via an international bond issuance in November. It added the SBP’s decision of allowing the rupee to depreciate against the dollar in early December, could contribute towards controlling the decline in the external position. While growth prospects of Pakistan remain intact with FY18 GDP growth expected at ~6%.


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

Fund Objective

Fund Manager’s Review

Investment Committee Members

Salman H. Sheikh

Hamza Saboor

Basharatullah KhanKhawar Salman

Chief Executive O�cer

Chief Financial O�cer

Chief Investment O�cerFund Manager

Asif Iqbal

M. Saeed Khalid

Head of Compliance and Risk

Acting Head of Research

The scheme has maintained a provision gainst Worker's Welfare Fund's liability to the tune of Rs.1,657,701, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs.1.1896/2.89% enhancing the YTD return to 7.44% p.a.

SWWF DisclosureTotal Expense Ratio is 1.04% which Includes 0.11% of Governement Levy and 0.04% of SECP Fee calculated as % of Average Net Asset Value.

Total Expense Ratio

PIML Daily Reserve Fund



Fund Details

Fund Type

Category

Fund Stability Rating

Benchmark

Inception Date

Dealing Days

Cut-o� Time

Pricing Mechanism

**Management Fee

Load

Risk Pro�le

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Open End

Money Market

AA(f ) by PACRA (14th July 2017)

70% average of 3 Month PKRV rate +30 % 3-Month average deposit rate of three scheduled banks rated AA as selected by MUFAP.

Management Co. Rating AM3+ by JCR-VIS (15th December 2016)

1st January 2013

Daily (days when Banks/Stock exchange are open for business)

4:30 pm

Forward

0.75%

0% (Front-end) 0% (Back-end)

Low Risk

Pakistan Stock Exchange

Leverage Nil

Central Depository Company of Pakistan Ltd.

KPMG Taseer Hadi & Co.

Mohsin Tayebaly & Co.

Khawar Salman


During the month, PIML-DRF delivered an annualized return of 3.98% as compared to the benchmark return of 5.22%, underperforming its benchmark. Year to date return of the fund is 4.55%. The fund maintained its exposure in cash at bank at 97.97% . The weighted average time to maturity of the portfolio is at 1 day.

Portfolio Allocation (as % of total assets) Dec. ‘17*

Credit Quality of Portfolio (as % of T.A.) Dec. ‘17 Nov. ‘17

Fund returns are calculated NAV with dividends reinvested (excluding sales load)“Performance data does not include the cost incurred directly by an investor in the form of salesloads etc.”

Fund Performance PIML - DRF

Fund Statistics

Portfolio Allocation (as % of T.A.) Dec‘17 Nov‘17

**Morning Star ***Average of Reporting Period*Simple Annualized

**E�ective from 7th August 2017


Portfolio Allocation (as % of total assets) Nov. ‘17

97.81%

2.19% Cash at Bank

Others including receivables (NR)

Cash at Bank 97.97% 97.81%Others including receivables (NR) 2.03% 2.19%Total 100.00% 100.00%

97.97%

2.03% Cash at Bank


AA 97.97% 97.81%Other including recievables (NR) 2.02% 2.18%Total 100.00% 100.00%

PDRF* PDRF** Benchmark***FYTD 4.55% 4.60% 5.18%CYTD 5.86% 5.86% 5.23%12M Trailing 5.86% 5.86% 5.23%Since Inception 8.82% 7.58% 6.67%5- Years Return 8.82% 0.00% 6.67%AAR-Since Inception 9.06% 0.00% 7.86%Last 3Yrs 6.84% 0.00% 5.55%Nov-17 4.15% 4.23% 5.20%Dec-17 3.98% 4.05% 5.22%

Period FY13 FY14 FY15 FY16 FY17 FY18TDPerformance 9.87% 8.91% 9.58% 6.00% 6.16% 4.55%Benchmark 7.93% 8.43% 7.77% 5.39% 4.42% 5.18%

Months Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17Performance 18.89% 4.30% 4.38% 4.91% 4.26% 4.21% 4.02% 6.87% 3.90% 4.15% 4.15% 3.98%Benchmark 5.25% 5.27% 5.28% 5.31% 5.31% 5.22% 5.19% 5.17% 5.17% 5.20% 5.20% 5.22%

Net Assets (PKR mn) 115.05NAV per Unit (PKR) 82.57 Weighted Average Maturity (days) 1Sharpe Ratio* -1.17Information Ratio 0.109Standard Deviation 1.21%*Annualized

Since Inception FY13 FY14 FY15 FY16 FY17Return % 9.87% 9.52% 10.09% 9.35% 9.09%Benchmark % 7.93% 8.28% 8.07% 7.16% 6.18%

The scheme has maintained a provision gainst Worker's Welfare Fund's liability to the tune of Rs.10,660,655, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs.1.2945/2.40% enhancing the YTD return to 8.30% p.a.

SWWF Disclosure


Portfolio Allocation (as % of T.A.)

Top TFCs Holdings (as % of T.A.)

Fund Statistics

Fund Performance PIML -IF

PIML Income Fund



Fund Details

Fund Type

Category


Benchmark

Inception Date

Dealing Days

Cut-o� Time

Pricing Mechanism

*Management Fee

Load

Risk Pro�le

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Open End

Income Scheme

A+ (f ) by PACRA (12th July 2017)

Average of 6M KIBOR rates for the period under review.

Management Co. Rating

9th August 2012

Daily (days when Banks/Stock Exchange are open for business)

4.30 pm

Forward

1%


Low to Moderate Risk


Leverage Nil



Khawar Salman

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

Fund Objective

Portfolio Allocation (as % of total assets) Dec. ‘17



Salman H. Sheikh

Hamza Saboor

Basharatullah Khan

Khawar Salman

Chief Investment O�cer

Fund Manager

Asif Iqbal

M. Saeed Khalid


Acting Head of ResearchTotal Expense Ratio is 0.90% which Includes 0.14% of Governement Levy and 0.04% SECP Fee calculated as % Average Net Asset Value.

Total Expense Ratio

Dec.‘17 Nov.‘17




Dec.17

AM3+ by JCR-VIS (15th December 2016)

Fund returns are calculated NAV to NAV with dividends reinvested (excluding sales load)

During the month, PIML-IF delivered an annualized return of 1.87% as compared to its benchmark return of 6.21%, underperforming its benchmark. Lower fund return in the month was due to valuation loss on AKBL TFC (price decline). Year to date return of the fund is 5.90%. The fund's exposure in TFC/Sukuks securities was 24.41% of the net assets as compared to 23.89% in the previous month, with banks deposits at 76%. The weighted average time to maturity of the portfolio is at 409 days.

KPMG Taseer Hadi and Co.

“Performance data does not include the cost incurred directly by an investor in the form of salesloads etc.”

*simple Annualized ***Aaverage of reporting period**Morning Star n.a = not applicable

**E�ective from 7th August 2017


Portfolio Allocation (as % of total assets) Nov. ‘17

23%

76%

1% TFCs/Sukuks

Cash at Bank

TFCs/Sukuks 23.48% 22.77%Cash at Bank 75.73% 75.88%Others including receivables (NR) 0.79% 1.35%Total 100.00% 100.00%

AA+ 0.59% 0.00%AA 2.14% 0.00%AA- 14.81% 95.12%A+ 8.20% 3.64%A- 73.47% 0.00%Other including recievables (NR) 0.79% 1.24%Total 100.00% 100.00%

AKBL TFC-IV 23-Dec-11 - 23-Dec-21 8.08

TPL Sukuk 15-Apr-16 -13-Aug-21 2.79

HPL Sukuk 07-Jan-16 - 07-Jan-22 1.80

ASPIN Sukuk 30-Nov-17 - 30-Nov-23 5.40

BAHL AT1 20-Dec-17 - 20-Dec-22 5.40

PIML-IF* PIML-IF** Benchmark***FYTD 5.90% 5.99% 6.16%CYTD 6.33% 6.33% 6.15%12M Trailing 6.33% 6.33% 6.15%Since Inception 11.92% 9.65% 7.67%5- Years Return 10.02% 0.00% 7.27%AAR-Since Inception 10.35% 0.00% 8.41%Last 3 Yrs 9.92% 0.00% 6.23%Nov-17 5.43% 5.57% 6.18%Dec-17 1.87% 1.88% 6.21%


Period FY13 FY14 FY15 FY16 FY17 FY18TDPerformance 8.72% 8.24% 16.96% 11.71% 4.68% 5.90%Benchmark 9.46% 9.46% 8.35% 5.93% 6.10% 6.16%

Since Inception FY13 FY14 FY15 FY16 FY17Return % 8.72% 8.81% 12.61% 13.47% 12.18%Benchmark % 9.46% 9.44% 8.55% 7.39% 7.43%

Net Assets (PKR mn) 890.38NAV per Unit (PKR) 108.11Weighted Average Maturity (days) 409Sharpe Ratio* -0.08Information Ratio 0.189Standard Deviation 0.63%

*Annualized

KSE 100 index and six (6) months KIBOR rates on the basis of actual proportion held by the scheme during the period under review.

1yr PKRV yield used as Risk‐Free rate. * Annualized

**R‐Square measures the correlation between the benchmark and the funds return

Fund Statistics

Top 10 Holdings (as % of T.A.) Symbol Dec. ‘17

Fund Performance PIML - SMAF

The scheme has maintained a provision gainst Worker's Welfare Fund's liability to the tune of Rs.1,405,807, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs.1.0347/2.02% enhancing the YTD return to -12.09% p.a.

SWWF Disclosure



PIML Strategic Multi Asset Fund



Fund Details

Fund Type

Category

Benchmark

Inception Date

Dealing Days

Cut-o� Time

Pricing Mechanism

Management Fee

Load

Risk Pro�le

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Fund Manager

Open End

Balanced Fund


23rd August 2013


4.30 pm

Forward

2% p.a.


Moderate to High


Leverage Nil



Nisha Ahuja

Nisha Ahuja


Sector Allocation (as % of T.A.) Dec.‘17 Nov. ‘17


Salman H. Sheikh

Hamza Saboor

Basharatullah Khan Chief Investment O�cer

Asif Iqbal

M. Saeed Khalid






AM3+ by JCR-VIS (15 December 2016)

Total Expense Ratio is 1.98% which Includes 0.16% of Governement Levy and 0.04% of SECP Fee calculated as % of Average Net Asset Value.

Total Expense Ratio

The fund delievered the return of 1.13% against the benchmark return of 0.93%, denoting outperformance of 20bps. Top �ve holdings of the fund are LUCK, PSO, NML, OGDC and Engro. Market witnessed sharp rebound in last days of the month after the index fell to new lows of 2017 earlier. Attractive valuations, oversold levels and sectors speci�c triggers helped the market to close the month on positive note. Market may continue to see volatility amid unstable politics and macroeconomic concerns but attractive valuations of key stocks has reduced the downside risk for equities with expectations of postive returns in medium term.

Deloitte Yousuf Adil ‘Chartered Accountants’


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

Fund Objective


*simple Annualized **Aaverage of reporting period

Months Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17Performance 1.89% -0.32% -1.10% 2.78% 1.68% -6.68% -1.98% -7.67% 0.14% 0.49% 0.49% 1.13%Benchmark 1.52% -0.18% -0.39% 1.77% 1.93% -4.84% -0.49% -6.50% 2.14% 0.82% 0.82% 0.93%

Since Inception FY14 FY15 FY16 FY17Return % 9.27% 40.56% 50.15% 73.59%Benchmark % 18.80% 36.51% 49.13% 76.31%

CEMENT 9.63% 9.33%TEXTILE COMPOSITE 8.98% 8.46%OIL AND GAS 8.10% 7.66%OIL AND GAS MARKETING 6.63% 7.02%ENGINEERING 6.32% 6.55%OTHERS 43.47% 42.40%

LUCKY CEMENT LUCK 7.76%PAKISTAN STATE OIL PSO 6.63%NISHAT MILLS LTD NML 6.26%OIL AND GAS DEVELOPMENT OGDC 5.22%ENGRO CORP ENGRO 4.60%PAKISTAN PETROLEUM PPL 2.87%AISHA STEEL MILLS ASL 2.78%SYNTHETIC PRODUCTS AND ENTERPRISES SPEL 2.74%UNITED BANK LTD UBL 2.74%GUL AHMED TEXTILES MILLS GATM 2.72%

Portfolio Allocation (as % of T.A.) Dec. ‘17 Nov. ‘17

Equity Securities 60.48% 63.16%Cash at Bank 34% 33%Others including recievables (NR) 5.25% 3.83%Total 100% 100%

Credit Quality of Portfolio (as % of T.A.) Dec ‘17 Nov.‘17

AA- 35% 33%(NR) (includes equity investments) 65% 67%Total 100% 100%

61%34%

5%

Dec'17Equity Securities

Cash at Bank

Others including recievables (NR)

Net Assets (PKR mn) 139.33NAV per Unit (PKR) 102.54Sharpe Ratio* -1.25Standard Deviation* 14.57%Treynor Ratio -0.154Beta 1.18R - Square** 91.48%Value at Risk 1.52%

PIML-SMAF* Benchmark***FYTD -14.11% -7.35%CYTD -15.83% -8.04%12M Trailing -15.83% -8.04%Since Inception 49.09% 60.52%AAR-Since Inception 9.46% 11.12%Last 3 Yrs 19.17% 23.51%Nov-18 0.49% 0.82%Dec-18 1.13% 0.91%

Period FY14 FY15 FY16 FY17 FY18TDPerformance 9.27% 28.64% 6.82% 15.61% -14.11%Benchmark 18.80% 13.40% 8.59% 17.54% -7.35%

The scheme has maintained a provision gainst Worker's Welfare

Fund's liability to the tune of Rs.1,582,895, if the same were not

made the NAV per unit/year to date (YTD) return of the scheme

would be higher by Rs.1.4040/2.61% enhancing the YTD return

to -18.59% p.a.

SWWF Disclosure

Sector Allocation (as % of T.A.) Dec. ‘17 Nov. ‘17

Top 10 Equty Holdings (as % of T.A.) Symbol Dec. ‘17

Fund Statistics

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

Fund Objective

Portfolio Allocation (as % of total assets) Dec ‘17


PIML Islamic Equity Fund



Fund Details

Fund Type

Category

Benchmark

Inception Date

Dealing Days

Cut-o� Time

Pricing Mechanism

Management Fee

Load

Risk Pro�le

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Open End

Islamic Equity Scheme

KMI - 30 Index


4th March 2014


4.30 pm

Forward

2% p.a.


Moderate to High


Leverage Nil




Basharatullah Khan



Fund Performance PIML - IEF



Salman H. Sheikh

Hamza Saboor

Basharatullah Khan

Basharatullah Khan


Asif Iqbal

M. Saeed Khalid





Fund Manager


Total Expense Ratio

The fund delievered return of 0.71% against the benchmark return of 0.76%, denoting underperformance of 5bps. Top �ve holdings of the

fund are OGDC, LUCK, ENGR, PSO and NML. Market witnessed sharp rebound in last days of the month after the index fell to new lows of

2017 earlier. Attractive valuations, oversold levels and sectors speci�c triggers helped the market to close the month on positive note.

Market may continue to see volatility amid unstable politics and macroeconomic concerns but attractive valuations of key stocks has

reduced the downside risk for equities with expectations of postive returns in medium term.


*Absolute Return


Months Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17Performance 2.34% -1.45% -2.50% 4.19% 0.93% -8.93% -3.44% -12.60% 0.17% 0.42% 0.42% 0.71%BM 2.47% -0.29% -2.09% 3.23% 3.53% -8.99% 0.72% -11.94% 2.49% 1.19% 1.19% 0.76%


Period FY14 FY15 FY16 FY17 FY18TDPerformance 4.58% 24.96% 7.30% 17.02% -21.20%Benchmark 10.70% 20.10% 15.53% 18.80% -12.71%

CEMENT 13.17% 12.56%OIL AND GAS 12.91% 12.27%FERTILIZER 10.13% 9.63%OIL AND GAS MAREKTING 9.12% 11.64%ENGINEERING 9.12% 8.16%OTHERS 25.64% 19.22%

OIL AND GAS DEVELOPMENT CO OGDC 12.91%LUCKY CEMENT LUCK 12.72%ENGRO CORP ENGRO 10.13%PAKISTAN STATE OIL PSO 8.37%NISHAT MILLS LTD NML 5.93%PACKAGES PKGS 4.93%INTERNATIONAL INDUSTRIES LTD INIL 4.76%SEARLE CO SEARL 3.72%SYNTHETIC PRODUCTS AND ENTERPRISES SPEL 3.60%MUGHAL IRON AND STEEL MUGHAL 3.24%

Portfolio Allocation (as % of T.A.) Dec. ‘17 Nov.’17

Credit Quality of Portfolio (as % of T.A.) Dec.‘17 Nov. ‘17

Equity Securities 74.36% 83.47%Cash at Bank 16.68% 11.73%Others including recievables (NR) 8.97% 4.79%Total 100% 100%

AA- 0% 12%A+ 16.00% 0.00%NR (includes equity investments) 84.00% 88.30%Total 100% 100%

74%

17%9%

Dec'17Equity Securities

Cash at Bank


Net Assets (PKR mn) 121.48NAV per Unit (PKR) 107.75Sharpe Ratio -1.25Standard Deviation* 20.20%Treynor Ratio -0.278Beta 0.91R - Square** 90.04%Value at Risk 2.10%

PIML-IEF* Benchmark**FYTD -21.20% -12.71%CYTD -25.03% -16.12%12M Trailing -25.03% -16.12%Since Inception 29.31% 59.21%AAR-Since Inception 6.94% 12.91%Last 3 Yrs 15.67% 35.23%Nov-17 0.42% 1.19%Dec-17 0.71% 0.76%

3M PKRV yield used as Risk-Free rate

*Annualized

** R-Square measures the correlation between the benchmark and the fund




The scheme has maintained a provision gainst Worker's Welfare Fund's liability to the tune of Rs.301,176, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs.0.2915/0.57% enhancing the YTD return to 4.77% p.a.

SWWF Disclosure

PIML Islamic Income Fund



During the month, PIML-IIF delivered an annualized return of 3.66% as compared to its benchmark return of 2.61%, outperforming its

benchmark by 105bps.Year to date return of the fund is 4.20%. The fund maintained its exposure in cash at bank at 84% and Sukuk at

14.04% of the net asset. The weighted average time to maturity of the portfolio is at 305 days.

Fund Details

Fund Type

Category


Benchmark

Inception Date

Dealing Days

Cut-o� Time

Pricing Mechanism

*Management Fee

Load

Risk Pro�le

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Open End

Islamic Income Scheme

A(f ) by PACRA (12th July 2017)

6 month average deposit rates of three (3) A rated scheduled Islamic Banks or Islamic windows of Conventional Banks as selected by MUFAP.*


4th March 2014


4:30 pm

Forward

0.75%


Low to Moderate Risk


Leverage Nil


KPMG Taseer Hadi & Co


Khawar Salman

The investment objective of the fund is to generate competitive risk adjusted returns by investing in short, medium and long-term Shariah Compliant Fixed Income Instruments.

Fund Objective


Fund Statistics

Apr‘15


Salman H. Sheikh

Hamza Saboor

Basharatullah Khan

Khawar Salman


Fund Manager

Asif Iqbal

M. Saeed Khalid



Portfolio Allocation (as % of total assets) Dec ‘17

Fund Performance PIML - IIF






Total Expense Ratio


*simple Annualized ***Aaverage of reporting period**Morning Star

*E�ective from 7th August 2017


AA- 0.35% 84.60%A+ 83.86% 0.00%A 13.90% 13.60%Other including recievables (NR) 1.89% 1.80%Total 100.00% 100.00%

TFCs/Sukuks 13.90% 13.60%Cash at Bank 84.21% 84.60%Others including receivables (NR) 1.89% 1.80%Total 100.00% 100.00%


Period FY14 FY15 FY16 FY17 FY18TDPerformance 5.46% 5.08% 6.26% 4.37% 4.20%Benchmark 6.49% 6.18% 4.59% 3.01% 2.44%


Net Assets (PKR mn) 106.80NAV per Unit (PKR) 103.37Weighted Average Maturity (days) 305Sharpe Ratio* (3.64) Information Ratio 0.22Standard Deviation 0.49%*Annualized

PIML-IIF* PIML-IIF** Benchmark***FYTD 4.20% 4.24% 2.44%CYTD 3.51% 3.51% 2.56%12M Trailing 3.51% 3.51% 2.56%Since Inception 5.52% 5.13% 4.49%AAR-Since Inception 6.67% 0.00% 5.95%Last 3 Yrs 5.20% 0.00% 3.95%Nov-17 3.31% 3.37% 2.54%Dec-17 3.66% 3.73% 2.61%




would be higher by Rs.1.0258/1.95% enhancing the YTD return

to -17.91% p.a.

SWWF Disclosure

Fund Statistics


Top 10 Equty Holdings (as % of T.A.) Symbol Dec. ‘17

Fund Performance PIML - VEF

The objective of PIML-Value Equity Fund is to achieve long term capital growth by investing mainly in listed equity securities.

Fund Objective

Portfolio Allocation (as % of total assets) Dec.17

PIML Value Equity Fund



Fund Details

Fund Type

Category

Benchmark

Inception Date

Dealing Days

Cut-o� Time

Pricing Mechanism

Management Fee

Load

Risk Pro�le

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Open End

Equity Scheme

KSE 100 Index


13th March 2015


4.30 pm

Forward

2% p.a.


Moderate to High


Leverage Nil

Central Depository Company o f Pakistan Ltd.



Basharatullah Khan



Salman H. Sheikh

Hamza Saboor

Basharatullah Khan

Basharatullah Khan


Asif Iqbal

M. Saeed Khalid







Fund Manager


Total Expense Ratio

Fund Manager’s ReviewThe fund delievered return of 0.98% against the benchmark return of 1.15%, denoting underperformance of 17bps. Top �ve holdings of

the fund are PSO, LUCK, NML, OGDC and Engro. Market witnessed sharp rebound in last days of the month after the index fell to new lows

of 2017 earlier. Attractive valuations, oversold levels and sectors speci�c triggers helped the market to close the month on positive note.




*Absolute Return



Since Inception FY15 FY16 FY17Return % 9.11% 14.55% 40.16%Benchmark % 4.64% 15.96% 42.91%

Period FY15 FY16 FY17 FY18TDPerformance 9.11% 4.99% 22.36% -19.86%Benchmark 4.64% 9.84% 23.24% -13.09%

PIML-VEF* BenchmarkFYTD -19.86% -13.09%CYTD -23.12% -15.34%12M Trailing -23.12% -15.34%Since Inception 12.33% 24.21%AAR-Since Inception 4.19% 7.61%Nov-17 0.21% 0.99%Dec-17 0.98% 1.15%

CEMENT 11.39% 10.86%OIL AND GAS 10.29% 9.52%TEXTILE COMPOSITE 8.31% 7.68%OIL AND GAS MARKETING 8.22% 13.65%COMMERCIAL BANKS 7.74% 7.27%OTHERS 27.74% 22.92%

PAKISTAN STATE OIL PSO 8.22%LUCKY CEMENT LUCK 8.07%NISHAT MILLS LTD NML 6.86%OIL AND GAS DEVELOPMENT CO OGDC 6.60%ENGRO CORP ENGRO 5.35%INDUS MOTORS INDU 5.24%PACKAGES PKGS 5.03%AISHA STEEL MILLS ASL 4.63%ADAMJEE INSURANCE LTD AICL 4.48%BANK ALFALAH BAFL 4.14%


AA- 8% 5%(NR) (includes equity investments) 92% 95%Total 100% 100%


Equity Securities 86.83% 89.10%Cash at Bank 8.49% 4.95%Others including recievables (NR) 5% 6%Total 100% 100%

87%

8%5%

Dec'17

Equity Securities

Cash at Bank


Net Assets (PKR mn) 122.27NAV per Unit (PKR) 105.46Sharpe Ratio* -1.18Standard Deviation* 20.35%Treynor Ratio -0.224Beta 1.07R - Square** 91.14%Value at Risk 2.12%

3M PKRV yield used as Risk-Free rate

*Annualized

** R-Square measures the correlation between the benchmark and the fund




would be higher by Rs.0.4666/1.03% enhancing the YTD return to

-11.21% p.a.

SWWF Disclosure

Weighted average of 6-month KIBOR and KSE-100 index as per amount invested in equities and �xed income investments including cash & cash equivalent respectively

Fund Performance PIML - AAF

The investment objective of this fund is to earn competitive returns by investing in the various asset classes / instruments based on the market outlook.



PIML Asset Allocation Fund



Fund Details

Fund Type

Category

Benchmark

Inception Date

Dealing Days

Cut-o� Time

Pricing Mechanism

Management Fee

Load

Risk Pro�le

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Open End

Asset Allocation


12th April 2016

Daily (days when Banks/Stock Exchanges are open for business)

4.30 pm

Forward

2% p.a.

Front end 3%

Moderate to High


Leverage Nil




Nisha Ahuja


The fund delievered return of 0.78% against the benchmark return of 0.59%, denoting outperformance of 0.19%. Top �ve holdings of the

fund are NML, LUCK, INDU, PSO and MCB. Market witnessed sharp rebound in last days of the month after the index fell to new lows of

2017 earlier. Attractive valuations, oversold levels and sectors speci�c triggers helped the market to close the month on positive note.




Salman H. Sheikh

Hamza Saboor

Basharatullah Khan

Nisha Ahuja


Fund Manager

Asif Iqbal

M. Saeed Khalid





Fund Statistics

Fund Objective



Top 10 Holdings (as % of T.A.) Symbol Dec. ‘17



Total Expense Ratio


*Absolute Return



Since Inception FY16 FY17Return % 2.87% 5.68%Benchmark % 1.43% 17.68%

Period FY17 FY18TDPerformance 2.74% -12.24%Benchmark -8.90% -6.83%

PIML-AAF BenchmarkFYTD -12.24% -6.83%CYTD -13.91% -7.93%12M Trailing -13.91% -7.93%Since Inception -7.26% 14.69%AAR-Since Inception -6.67% 3.67%Nov-17 0.59% 0.79%Dec-17 0.78% 0.59%

ENGINEERING 9.55% 9.81%COMMERCIAL BANKS 8.64% 8.26%CEMENT 6.43% 6.29%TEXTILE COMPOSITE 6.11% 5.81%OIL AND GAS 5.53% 5.33%OTHERS 46.93% 45.60%

NISHAT MILLS LTD NML 6.11%LUCKY CEMENT LUCK 4.49%INDUS MOTORS INDU 3.78%PAKISTAN STATE OIL PSO 3.56%AISHA STEEL MILLS ASL 3.42%MUGHAL IRON AND STEEL MUGHAL 3.22%MUSLIM COMMERCIAL BANKS MCB 3.07%SYNTHETIC PRODUCTS AND ENTERPRISES SPEL 2.92%UNITED BANK LTD UBL 2.90%INTERNATIONAL INDUSTRIES LTD INIL 2.90%

Portfolio Allocation (as % of T.A.) Dec.’17 Nov.’17

Equity Securities 60.48% 62.48%Cash at Bank 34.27% 31.99%Others including receivables (NR) 5.25% 5.52%Total 100% 100%


AA- 0% 32%A- 34% 0%Others including receivables (NR) 66% 68%Total 100% 100%

61%34%

5%

Dec'17

Equity Securities

Cash at Bank


Net Assets (PKR mn) 204.48NAV per Unit (PKR) 90.88Standard Deviation* 14.89%Sharpe Ratio* (1.10) Information Ratio -0.104*Annualized

www.awtinvestments.com

Karachi O�ce:3rd Floor, Horizon Vista, Plot No. Commercial 1, Block No.4, Scheme No.5, Clifton, Karachi.

Board: (+92-21) 38658883

Islamabad O�ce:11-West, 1st Floor,Jinnah Avenue, Blue Area,Islamabad.Board: (+92-51) 2270471-3

Lahore O�ce:1st Floor, CommercialPlaza,852-D, Faisal Town,Akber Chowk, Lahore.Board: (+92-42)35860871-5

Head O�ce:AWT Plaza , 2nd �oor, Mall Road Rawalpindi.Tel: 051-9272379 (Direct)

AWT INVESTMENTS LIMITED

AWTINVESTMENTS

“A Joint venture of Army Welfare Trust and Pak Brunei Investment Company”

fund manager report - awt investmentsduring december, e&p was the top performing sector amid...

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