fund manager’s report - may 2014 from the ceo’s desk · cpi in˜ation for the month of may was...

From the CEO’s deskFund Manager’s Report - May 2014

Economic Snapshot

Key Economic Indicators

Equity Market Review

Money Market Review

The major news which kept the market participants excited throughout the month were conclusion of Indian elections with Narendra Modi’s clean victory, increase in weight of Pak Equities in MSCI frontier market, approval of USD 11bn loan by World bank which will be disbursed over the next 5 years, receipt of 3G/4G license payments and proposals regarding upcoming budget announcement. CPI in�ation for the month of May was recorded at 8.3% YoY as compared to 9.2% during the previous month, down 0.3% MoM. The average in�ation for the period ended 11MFY14 stood at 8.7%. Due to higher in�ation �gure during the month of April, SBP kept the policy rate unchanged at 10% in the recently announced monetary policy. In the months ahead, the impact of higher prices in the month of Ramadan and government’s continuation of tari� rationalization policy might keep the in�ation �gure on the higher side.According to recently released economic survey, the GDP of the country grew by 4.14% in FY14 against the growth of 3.70% in the same period last year. The growth was supported by 5.87% growth in industrial sector (against 1.37% last year), 2.12% growth in agriculture (2.88% last year) and 4.29% growth in services sector (4.85% last year). Total foreign investment reached to USD 2979mn during 10MFY14 as compared to USD 1277mn in the corresponding period last year, out of which FDI has reached to USD 750.9mn. Remittances from oversees Pakistanis also showed a growth of 11.45% during 10MFY14 as remittances reached USD12.89bn during the period as compared to USD 11.56bn during the corresponding period last year. Receipts from 3G & 4G license lead to increase in Foreign exchange reserves, which stood at USD 13.44bn as of May 23rd 2014, showing growth of 10% from reserves held in April. Higher foreign reserves supported the domestic currency which remained stable during the month of May. Budget for FY14-15 is broadly perceived to be continuation of economic policies designed in previous budget, so we expect that the economy will continue to perform better in line with economic targets set by the government.

The benchmark index closed at all time high level of 29,738 points and earned return of 2.9% MoM and 18% CYTD courtesy last two trading session where market increased 750 points with average volume of 250 million. Otherwise market remained sluggish activity during the month, average daily trading volumes declined by 45% MoM to 112.5mn shares from 205.9mn shares/day in the preceding month. However, foreign participation remained intact as FIPI was recorded at USD 70mn which was mainly due to increase in Pakistan’s weight in MSCI Frontier market. Apart from increase in weight, PSO & LUCK were upgraded from MSCI small cap to MSCI FM and KEL & PAKT were added while HUBC was removed from the index.Sector wise performance shows a mixed trend as some sector performed positive including utilities (4.6%), Banks (3.6%), Construction & Materials (3.6%), Textiles (2.4%), Electricity (1.1%), while Oil & gas and telecom sectors yielded negative returns (-0.6 & -3.9% respectively) during the month.Budget for FY14-15, recently announced by Finance minister, is broadly perceived to be neutral for the stock market. Capital gain tax which was supposed to be increased from 10% for equities held up to six months to 17.5% is now increased to 12.5% for holding period of up to 12 months. This move is welcome by the market participants. Going forward, the direction of economic, political and law and order situation in the country will set the mood for the market.

SBP conducted two T-Bill auctions during the month. Target of the �rst auction (15 May) was PKR 450 billionagainst which SBP accepted PKR 384 billion (maturities PKR 483 billion). Cut of for the 3-month, 6-month and 1

year were 9.9564%, 9.9791%, 9.99% respectively. Target for the second auction (29 May ) was PKR 400 billionagainst which SBP accepted PKR 86 billion (maturities PKR 382 billion). Cut of for the 3-month and 6-monthwere 9.9564% and 9.9791% respectively.

SBP also conducted a PIB auction on 22 May with atarget of PKR 90 billion and accepted amount was 238 billion. Cut o_ for 3,5 and 10 years PIBs came at 12.0953%,12.5531% and 12.9016% respectively.

During the period under review the State Bank of Pakistan announced the monetary policy and as discussed in our previous report the rates remained unchanged.Lots of signs show improvement of our ailing economy. The inbound remittances have improved and Pace is now picking up especially in areas of construction and development, car sales and textiles. The major trend of the stock market is still bullish with favorite sectors being the textiles, cement, autos, oil and �nancial institutions.Government has set very ambitious targets for itself in the recent budget. So far the economy is showing improvement while major hindrance remains the law and order of the country.This month will be marked by the half year closing, time for funds to invest in long term maturity bonds and deposit placements; hence it is a good time to invest!!!!The coming month will be Ramzan and food in�ation will be sky high although Government has already announced subsidy for the holy month, the pro�t takers will reap the bene�t of high demand during the month.On the international front:Congratulations Europe: you now get to pay your bank to keep your deposits for you. ECB o�cially has lowered the deposit facility rate to negative (as in you pay the bank to hold your deposits) is shocking.• Deposit facility rate cut by 10 bps to -0.10%. As in negative. As in deposits are now charged a fee.This is an attempt by ECB to encourage banks to lend to the real economy, but a negative deposit rate can be damaging for money market. Negative rates would also destroy the business model for money- market funds, which would face the prospect of paying to invest.We believe it’s our responsibility to help investors of all sizes, to succeed in the New World of Investing. We were built to provide the global market insight, breadth of capabilities, unbiased investment advice and deep risk management expertise these times require. Investing with PRIMUS gives you access to every asset class and investment style, as well as extensive market intelligence and risk analysis, to help build the dynamic, diverse portfolios �exible with the changing times.When you invest with PRIMUS, you invest with con�dence. We believe in a disciplined and methodical approach to investing. It is the foundation of everything we do and the best way to create long term value for investors. PRIMUS is one of the top mutual fund companies in Pakistan whose strength and credibility have made it one of the most respected �nancial institutions.We will do our best to re�ect all this in positioning the savings and investments you have entrusted to us to manage. We will be emphasizing the importance of economic growth and work very hard to identify opportunities that remain attractive. We will seek to navigate this environment for you by maintaining a higher degree of operational agility and a solid dose of resilience.Thank you for the trust you have placed in us. We value your con�dence, and will continue to work diligently to meet your expectations. If you have any query regarding any of your PRIMUS funds investments please contact your account manager at 0092-213-529-0006. We also invite you to visit our website www.primusinvestments.com to learn more about our fund, views and thought leadership.

Regards, CEO

Source: SBP, MoF, PBSn.a.=Not Available

May-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14External Sector IndicatorsOverall Balance of Payments USD million (150) (351) (529) 211 (261) 916 992 2200 n.aCurrent Account Balance USD million (530) (96) (584) 173 (473) 164 (156) -55 n.aExports USD million 2,263 2,068 1,844 2,358 2164 2,074 2,152 2143 n.aImports USD million 3,361 3,616 3,177 3,563 3595 3,136 3,382 3287 n.aWorker's Remittances USD million 1,186 1348 1,130 1,385 1,246 1,210 1,337 1312 n.aForeign Direct Investment USD million 465 52.8 47.1 85 106.9 79.2 63.5 81 n.aForeign Portfolio Investment USD million (312) 33.6 (73.0) 17 31.5 1.1 -5.4 2116 n.aForex Reserves USD billion 11.47 9.52 8.25 8.31 7.99 8.74 10.07 12.18 13.44Exchange Rate against PKRUSD Month Avg. 98.43 106.27 108.56 107.51 106.97 105.39 99.97 98.79 98.83Inflation IndicatorsGeneral CPI YoY change 5.10% 9.1% 10.9% 9.2% 7.9% 7.9% 8.5% 9.2% 8.3%Food CPI YoY change 6.50% 9.8% 13.0% 9.3% 7.2% 7.6% 9.3% 9.9% 7.4%Core (NFNE) YoY change 8.10% 8.4% 8.50% 8.2% 8.0% 7.8% 7.6% 8.5% 8.7%Core (Trimmed) YoY change 6.70% 9.0% 9.20% 8.7% 8.2% 8.1% 8.1% 9.0% 8.3%Monetary GrowthBroad Money (M2) YoY growth 15.70% 14.2% 14.2% 14.4% 13.1% 12.9% 11.9% 12.7% 11.6%GoP's Borrowing from SBP YoY growth 22.60% 83.6% 78.0% 69.1% 77.1% 64.2% 35.1% 32.2% -6.0%Pvt. Sector Credit YoY growth 2.00% 1.1 1.0% 1.9% 3.8% 4.4% 4.0% 5.3% 7.6%Interest RatesSBP Policy Rate Current 9.50% 9.50% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%6 Month KIBOR Month Avg. 9.60% 9.55% 10.08% 10.15% 10.19% 10.13% 10.18% 10.20% 10.17%12 Month KIBOR Month Avg. 9.91% 10.02% 10.43% 10.48% 10.47% 10.43% 10.47% 10.45% 10.44%3 Month T-Bill Yield Month Avg. 9.44% 9.32% 9.86% 10.12% 9.97% 9.95% 10.01% 9.97% 9.96%6 Month T-Bill Yield Month Avg. 9.39% 9.46% 9.97% 10.15% 9.99% 9.97% 10.00% 9.98% 9.98%12 Month T-Bill Yield Month Avg. 9.41% 9.77% 10.09% 10.22% 10.01% 9.99% 10.00% 10.00% 10.01%10 Year PIB Yield Month Avg. 11.27% 12.85% 13.08% 12.75% 12.81% 12.80% 12.81% 12.81% 12.87%

Fund Manager’s Review

Portfolio Allocation (as % of total assets)Fund Objective

Fund Details

Investment Committee Members

Fund TypeCategoryFund Stability RatingBenchmark

Inception DateDealing DaysCut-o� TimePricing MechanismManagement FeeLoadRisk Pro�leListing

Trustee

AuditorLegal AdvisorFund Manager

Open End

Management Co. Rating AM3 by JCR-VIS

Money Market

Portfolio Allocation (as % of total assets)

May‘14

Cash at BanksPlacements with DFIsPlacements with Banks

Total

T-BillsOthers including receivables

May‘1423.71%25.33%13.95%

100.00%

35.74%1.27%

Credit Quality of Portfolio (as % of total assets)

AAA (Government Securities)AAAAA+

NR (Others including receivables)Total

May‘1435.74%20.88%28.16%

1.27%100.00%

AA 13.95%

Apr‘142.56%

33.82%13.43%

100.00%

49.78%0.41%

Apr‘1449.78%12.47%21.89%

0.41%100.00%

15.45%

AA+ by PACRA50% 3 months PKRV + 3 months average

Ahmed AteeqRahaila AleemM. Ali KazmiSalman Kazmi

CEOCFO & Company SecretaryChief Investment O�cerFund Manager

Arfeen ZiaAli Kamal

Head of RiskHead of Research

Fund StatisticsNet Asset (PKR mn)

WWF Disclosure

NAV per Unit (PKR)Weighted Average Maturity (days)Sharpe Ratio *

5,018.011101.579556

-3.0707Information RatioStandard Deviation ** Annualized

0.55780.353%

deposit rate of AA & above rated Banks

1st January 2013Daily (days when Banks are open for business)

4.00 pmForward0.45%0% (Front-end) 0% (Back-end)Low RiskIslamabad Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.Deloitte PakistanMohsin Tayebaly & Co.Salman Kazmi

PDRF generated an annualized return of 8.55% versus the benchmark return of 8.52% for the month of May, an outperformance of 0.03bps. During May, we increased the weighted average time to maturity of the portfolio from 53 days to 80 days by increasing our exposure towards slightly longer duration government securities. We positioned around 35.74% T-bill portfolio in order to take full advantage of any yield curve movement which attributed in decent mark-to-market gains. Further, the placement with DFIs and Banks constituted 13.95% and 25.33% of net assets respectively, at attractive rates. Thus, the fund was able to generate competitive returns for the month.We intend to maintain exposure in longer duration maturities and take advantage of any movement in the yield curve.

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

* Please note that WWF liability for PRIMUS Daily Reserve Fund till the close of �nancial year ended June 30, 2013 since inception will be borne by the management company *The scheme has maintained provision against Worker’s Welfare Fund’s liability to the tune of Rs.8,427,394, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.1706/ 0.18% enhancing the YTD return to 9.03% p.a”

Fund PerformanceSince Inception 9.48% 9.31% 8.27% 8.84% 8.43%

*Simple Annualized**Morning Star

***Average of reporting period n.a = not applicable

PDRF* PDRF** Benchmark***

-

PDRFFYTD

-8.55% 8.89% 8.52%May-14- -8.96% 9.34% 8.74%Apr-14

BenchmarkFYTD

Fund Manager’s Report - May 2014Daily Reserve Fund

“MUFAP’s Recommended Format”

Portfolio Allocation (as % of total assets) Apr‘14

Placements with Banks13.43%

Placements with DFIs33.82%

T-Bills49.78%

Cash at Bank2.56%

Others including receivables

0.41%


Placements with DFIs25.33%

T-Bills35.74%

Cash at Bank23.71%

Others including receivables (NR)

1.27%

0.0%2.0%4.0%6.0%8.0%

10.0%12.0%14.0%

Jan-

13Fe

b-13

Mar-1

3Ap

r-13

May-1

3Ju

n-13

Jul-1

3Au

g-13

Sep-

13Oc

t-13

Nov-1

3De

c-13

Jan-

14Fe

b-14

Mar-1

4Ap

r-14

May-1

4

Benchmark PDRF



Fund Details


Fund TypeCategoryFund Stability Rating

Benchmark


Trustee


Open EndIncome Scheme


Placements with Banks

Cash at Bank

T-Bills

Total

May‘14

May‘14

May‘14

2.55%

0.29%

25.08%Others including receivables 2.64%

100.00%


AAA (Government Securities) 94.52%AAA 0.28%AA+ 0.01%

Total 100.00%

Placements with DFIs 0.00%

AA 2.55%NR (Others including receivables) 2.64%

PIBs 69.44%

Apr‘14

Apr‘14

3.95%

0.76%

23.66%2.11%

100.00%

87.64%4.70%

5.54%

100.00%

5.54%

0.00%2.11%

63.98%

A+70% 6 month Kibor & 30% average of 6 month depositrate of 3 banks rated AA- and above




Arfeen ZiaAli Kamal


Fund Statistics

WWF Disclosure

NAV per Unit (PKR)Net Asset (PKR mn)

Weighted Average Maturity (days)Sharpe Ratio *

4,294.355101.6223


0.06051.637%

17th April 2014Daily (days when Banks are open for business)

4.00 pmForward1.00%0% (Front-end) 0% (Back-end)Low RiskKarachi Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.M.Yousuf Adil Saleem & Co. ‘Chartered Accountants’

Mohsin Tayebaly & Co.Salman Kazmi

PIML Income Fund generated a negative return of -8.45% against the benchmark return of 9.30% for the month of May, owing to the changes PKRV spreads between 2 and 3 years, creating opportunity of capital gains in future.At month end, government securities constituted 94% (T-bills 25.08% & PIBs 69.44% of net asset) compared to 90% in April.We intend to maintain high duration portfolio in anticipation of gains from government securities, translating into competitive returns.

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

The scheme has maintained provision against Worker’s Welfare Fund’s liability to the tune of Rs. 8,914,108, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.2109/ 0.23% enhancing the YTD return to 8.32% p.a”

Fund PerformanceSince Inception 8.72% 8.44% 9.48%



PIML IF* PIML IF** Benchmark***PIML IFFYTD

- --8.45% -8.13% 9.30%May-14- -27.33% 31.03% 9.68%Apr-14

8.10% 9.48%

BenchmarkFYTD

Fund Manager’s Report - May 2014PIML Income Fund (PIML-IF) (formerly; PRIMUS Cash Fund PCF)




Placements with DFIs

5.54%PIBs

63.98%

T- Bills23.66%

Cash at Bank0.76%


2.11%


PIBs69.44%

T-Bills25.08%

Cash at Bank0.29%


2.64%

-15.0%-10.0%

-5.0%0.0%5.0%

10.0%15.0%20.0%25.0%30.0%

Aug-

12Se

p-12

Oct-1

2No

v-12

Dec-1

2Ja

n-13

Feb-

13Ma

r-13

Apr-1

3Ma

y-13

Jun-

13Ju

l-13

Aug-

13Se

p-13

Oct-1

3No

v-13

Dec-1

3Ja

n-14

Feb-

14Ma

r-14

Apr-1

4Ma

y-14

Benchmark PIF

May‘14

Fund Performance

Since Inception 10.02% 18.08%**

1.06% 1.88%**May-14

*Absolute Returns**Weighted Average Returns

PSMAF* Benchmark10.02%

PSMAFFYTD

- -0.69% 3.97%**Apr-14 - -

18.08%

BenchmarkFYTD



Fund Details




Trustee


Open EndBalanced Fund


Equity Securities

Others Including ReceiveablesTotal

Total

Cash at Bank

May‘1456.18%

8.44%100.00%

19.49%

May‘14 Apr‘14

May‘14

Sector Allocation (as % of Total Assets)


AAA (Government Securities)AAA

NR (includes equity investments)

15.89%5.03%

64.62%100.00%

PIB 15.89%

AA & Above 0.05%AA- 14.40%

Apr‘1452.72%

9.29%100.00%

21.33%

Apr‘1416.66%

5.24%

62.01%100.00%

16.66%

0.09%15.99%

N/A


Ahmed Ateeq CEORahaila Aleem CFO & Company SecretaryM. Ali Kazmi Chief Investment O�cerM. Samir Malik, CFA Head of EquityArfeen Zia Head of RiskAli Kamal Head of Research


WWF Disclosure

NAV per Unit (PKR)Sharpe Ratio ^^

117.977109.180.5297

Treynor Ratio^^Standard Deviation *^^

3M PKRV yield used as Risk‐Free rate. ^^ The look back period is 169 working days (Since inception).* Annualized.**^R‐Square measures the correlation between the benchmark and the fund

0.0576Beta^^ 0.8401R-Square**^^^ 48.11%Value at Risk 0.95%

9.13%

23rd August 2013Daily (days when Banks are open for business)

4.00 pmForward2% p.a.2% (Front-end) 0% (Back-end)Moderate to HighKarachi Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.Deloitte PakistanMohsin Tayebaly & Co.M. Samir Malik, CFA

The Fund generated a return of 1.06%, compared to its benchmark return of 1.88% for the month of May. The underperformance of the Fund is primarily due to the underperfor-mance of Telecommunication and textile sector. Our current allocation is expected to generate higher return going forward due to resolution of circular debt and higher PSDP announcement for the FY14-15 budget.

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.

The scheme has maintained provision against Worker’s Welfare Fund’s liability to the tune of Rs. 195,655 if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.1811 / 0.17% enhancing the YTD return to 10.19% p.a”

Fund Manager’s Report - May 2014Strategic Multi Asset Fund


KSE 100 index, 3 month PKRV and Daily Closing Pakistan Rupee Spot Gold Prices at the Pakistan Mercantile Exchange Limited (PMEX) based on the weighted average exposure of the scheme to eqquity, debt and gold future contracts during the period under review

Equity Securities56.18%

PIB15.89%

Cash at Bank19.49%


8.44%

Construction and Materials (Cement) 19.39% 17.96%Oil and Gas 11.64% 9.94%Electricity 9.60% 8.33%Commercial Banks 6.67% 6.15%Non Life Insurance 3.13% 3.16%Household Goods 0.89% 0.00%Chemicals 1.76% 1.87%Pharma and Bio Tech 1.63% 1.46%Fixed Line Telecommunication 1.12% 1.19%Automobile and Parts 0.35% 0.59%Total 56.18% 52.72%

Top 10 Equity Holdings (as % of T.A.) May '14Pakistan State Oil Co. Ltd. PSO 9.86%D.G. Khan Cement Co. Ltd. DGKC 6.87%Kot Addu Power Co. Ltd. KAPCO 4.80%Fauji Cement Co. Ltd. FCCL 3.70%Nishat Chunian Power Ltd. NCPL 3.47%Adamjee Insurance Co. Ltd. AICL 3.13%Lafarge Pakistan Cement Ltd. LPCL 3.00%Lucky Cement Ltd. LUCK 2.99%National Bank of Pakistan NBP 2.94%Maple Leaf Cement Factory Ltd. MLCF 2.81%

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00% Benchmark PSMAF

Fund Manager’s ReviewThe Fund generated a return of 1.19%, compared to its benchmark return of 1.93% for the month of May. We maintained our exposure to Shariah compliant equity investments and ended the month with exposure of 72.35% in equities, up from 71.21%. We maintain the concentration in our portfolio in favor of Oil & Gas and Construction & Material sectors and are hopeful that the said sectors will outperform thereby assisting the Fund to meet its benchmark requirements going forward due to higher expected oil production numbers and higher expected PSDP allocation in the FY14-15 budget.

Fund Manager’s Report - May 2014Islamic Equity Fund

May‘14Portfolio Allocation (as % of total assets)

Fund Objective

Fund Details




Trustee


Open EndIslamic Equity Scheme


Equity Securities

Others Including ReceiveablesTotal

Total

Cash at Bank

Shariah Compliant Govt. Securities

Apr‘14May‘14Sector Allocation (as % of Total Assets)


AAAAANR (includes equity investments)

May‘14

72.35%0.00%

5.29%100.00%

22.37%

May‘1422.17%

0.19%77.63%

100.00%

Apr‘14

71.21%0.00%

7.90%100.00%

20.90%

Apr‘141.76%

19.14%79.10%

100.00%

N/AKMI - 30 Index


Ahmed Ateeq CEORahaila Aleem CFO & Company SecretaryM. Ali Kazmi Chief Investment O�cerM. Samir Malik, CFA Head of EquityArfeen Zia Head of RiskAli Kamal Head of Research


WWF Disclosure

NAV per Unit (PKR)Sharpe Ratio ^^

115.182103.020.1698

Treynor Ratio^^Standard Deviation *^^

3M PKRV yield used as Risk‐Free rate. ^^ The look back period is 43 working days (Since inception).* Annualized.**^R‐Square measures the correlation between the benchmark and the fund

0.0383Beta^^ 0.3329R-Square**^^^ 54.74%Value at Risk 0.78%

7.50%

4th March 2014Daily (days when Banks are open for business)

4.00 pmForward2% p.a.2% (Front-end) 0% (Back-end)Moderate to HighKarachi Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.KPMG Taseer Hadi & Co.Mohsin Tayebaly & Co.M. Samir Malik, CFA

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

The scheme has maintained provision against Worker’s Welfare Fund’s liability to the tune of Rs. 44,682. if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.0400 / 0.04% enhancing the YTD return to 3.05% p.a”


Fund Performance

Since Inception 3.02% 9.0%**

1.19% 1.93%**May-14

*Absolute Returnsn.a=not applicable

PIEF* Benchmark3.02%

PIEFFYTD

- -0.87% 3.3%**Apr-14 - -

9.0%

BenchmarkFYTD

Equity Securities72.35%

Cash at Bank22.37%


5.29%

Oil and Gas 32.21% 33.12%Construction and Materials (Cement) 25.62% 26.65%Personal Goods (Textile) 3.33% 3.54%Automobile and Parts 2.16% 3.22%Fixed Line Telecommunication 2.30% 2.24%Pharma and Bio Tech 1.71% 1.55%Electricity 5.01% 0.89%Chemicals 0.00% 0.00%Total 72.35% 71.21%

Top 10 Equity Holdings (as % of T.A.) May '14Pakistan State Oil Co. Ltd. PSO 12.47%Lucky Cement Ltd. LUCK 9.42%Pakistan Oilfields Ltd. POL 6.91%Pakistan Petroleum Ltd. PPL 6.52%Oil & Gas Development Co. OGDC 6.30%D.G. Khan Cement Co. Ltd. DGKC 5.31%Maple Leaf Cement Factory Ltd. MLCF 3.85%Nishat Mills Ltd. NML 3.33%Lafarge Pakistan Cement Ltd. LPCL 3.15%Fauji Cement Co. Ltd. FCCL 3.11%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

March April May

Benchmark PIEF

Fund PerformanceSince Inception 6.39% 6.55% 6.53%



PIMMF* PIMMF** Benchmark***PIMMFFYTD

- -1.85% 1.86% 6.39%May-14- -6.39% 6.58% 6.69%Apr-14

6.39% 6.53%

BenchmarkFYTD


Fund Objective

Fund Details




Trustee


Open EndIslamic Money Market Scheme


Sukuk

Cash at Bank

Total

May‘14



AAA (Government Securities)AAAAA+

Total

GOP Ijara Sukuk - Govt. Backed

AANR (Others including receivables)

May‘14

May‘14

0.00%

95.35%4.65%

100.00%

0.00%95.31% 0.00%

100.00%

0.00%

0.04%4.65%

Apr‘14

Apr‘14

0.00%

96.19%3.81%

100.00%

0.00%0.01%

0.00%

100.00%

0.00%

96.17%3.81%

N/A3 month deposit rate of three AA andabove rated Islamic Banks




Arfeen ZiaAli Kamal



WWF Disclosure

NAV per Unit (PKR)Weighted Average Maturity (days)Sharpe Ratio *

119.101101.561


0.17140.609%

4th March 2014Daily (days when Banks are open for business)

4.00 pmForward0.50%2% (Front-end) 0% (Back-end)Low RiskIslamabad Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.KPMG Taseer Hadi & CoMohsin Tayebaly & Co.Salman Kazmi

The objective of PIML-IMMF is to seek high liquidity, competitive return and maximum possible preservation of the capital for investors by investing in low risk Shariah Compliant securities.

The scheme has maintained provision against Worker’s Welfare Fund’s liability to the tune of Rs. 166,610, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.1421/ 0.57% enhancing the YTD return to 6.97% p.a”

Fund Manager’s Report - May 2014Islamic Money Market Fund

Fund Manager’s ReviewPIML Islamic Money Market Fund posted an annualized return of 1.85% versus the benchmark return of 6.39% for the month of May. We intend to allocate the portfolio optimally; however, the fund is well placed with liquidity to cash in any opportunities that may arise in Shariah complaint securities/instruments. The weighted average time to maturity of the portfolio is 01 day.



Cash at Bank96.19%


3.81%

Cash at Bank95.35%


4.65%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

Mar-14 Apr-14 May-14

Benchmark IMMF

Contact Details

Sonam Peswani Head of Marketing, SMAs & Investor ServicesNadeem A. Khan Manager Investor ServicesSha�q ur Rehman Bhatti

+922135290006-9+922135290006-9+923218968076Regional Head Corporate Sales

Asif Ahmed Siddiqui +923002278139Regional Head Corporate Sales

fund manager’s report - may 2014 from the ceo’s desk · cpi in˜ation for the month of may was...

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