islamic savings fund manager report of shari’ah compliant ......rated by pacra contact our...

Fund Manager Reportof Shari’ah Compliant SchemesOctober 2019

Islamic Savings

NBP FUNDSManaging Your Savings

NBP Fund Management Limited Rated by PACRAAM1

Contact our Investment Consultant for free Investment advice

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

رباسے پاک

MONEYTIME IS

MAKE YOUR INVESTMENTS WORK FOR YOU

12.5%NBP ISLAMICSAVINGS FUND

p.a profit*In Oct-19

Formerly: NAFA Islamic Income Fund. Fund Stability Rating: A-(f) by PACRA; Category: Shari’ah Compliant Income Fund; Fund size: Rs 248 Crore as on 31 October 2019; *Benchmark: 6 month average deposit rate of three A rated Islamic Banks/Islamic Windows of Conventional Banks as selected by MUFAP; Benchmark annualized return for the month of October 2019 is 6.3% p.a. Since Inception return from October 26, 2007 till October 31, 2019 was 6.9% p.a vs benchmark 5.7% p.a; Last one year return was 10.4% vs benchmark 4.8%; Return of NBP-ISF in fiscal year 2019, 2018, 2017, 2016 & 2015 was 8.5%, 5.1%, 5.4%, 7.4% & 9.2% respectively and benchmark was 3.7%, 2.4%, 3.9%, 4.8% & 6.6% respectively; Note: Performance is net of management fee and all other expenses based on dividend reinvestment and gross of withholding taxes where applicable excluding cost of frontend load; Subject to conditions as per section 62 of the Income Tax Ordinance, 2001; Disclaimer: All investment in mutual funds are subject to market risk. Past performance is not necessarily indicative of future results. Please read the O�ering Documents to understand the 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.

Table of Contents

NBP Riba Free Savings Fund (NRFSF)

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

NBP Islamic Money Market Fund (NIMMF)

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

NBP Islamic Regular Income Fund (NARPF)

Capital Market Review

CEO’s Write-up

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

NAFA Islamic Pension Fund (NIPF)

NBP Islamic Stock Fund (NISF)

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)

NBP Active Allocation Riba Free Savings Fund (NAARFSF)

NBP Islamic Active Allocation Equity Fund (NIAAEF)

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

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)

NBP Islamic Energy Fund (NIEF)

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Islamic Savings

NBP FUNDSManaging Your SavingsTable of Contents

Formerly; NAFA Islamic Money Market Fund (NIMMF)

Formerly; NAFA Riba Free Savings Fund (NRFSF)

Formerly; NBP Aitemaad Regular Payment Fund (NARPF)

Formerly; NAFA Islamic Stock Fund (NISF)

Formerly; NAFA Islamic Energy Fund (NIEF)

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

Formerly; NAFA Islamic Active Allocation Equity Fund (NIAAEF)

12.5%

Declining fixed income yields - improving stock market prospects

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.

Islamic Savings


Economy: Stabilization policies undertaken during the last one year have shown positive results in terms of sharp contraction in the Current Account Deficit (CAD) (see Chart-1). While recovery in the manufacturing sector would take some time, many key macroeconomic indicators are signaling improving economic prospects:

We expect inflation to drop sharply in the next fiscal year before peaking at around 12% in January 2020. In our view, we are near the beginning of monetary easing cycle and expect a 4% cut in the Discount Rate in the next twenty four months (see Chart-2).

The fixed income market has responded to the changing inflation outlook and interest rate trajectory as the sovereign yield curve has witnessed a drastic shift, and is now in inverted shape. Yield on 6-month T-Bills is down by 71 bps from its peak on July 20th to 13.2%. Similarly, yield on 10-year PIBs is down by 262 bps from its recent high on May 20th to 11.3%. This reflects expectation of monetary easing going ahead.

Amid tightening policies, economic activity has slowed down as reflected by the 6% contraction in the Large Scale Manufacturing (LSM) index in July & August 2019. However, we expect economic activity to start picking-up and economic growth to recover to 3.6% in FY2021 and 4% in FY2022.

The first quarterly review of IMF is ongoing and the government has met most of the performance targets. A positive nod from the IMF will ensure smooth sailing for floating of bonds in the international markets in the coming months, which will augment the Foreign Exchange reserves. Although tepid progress in terms of FATF compliance remains an area of concern, we expect the government to take the requisite steps in order to comply with the conditions for moving out of the grey list.

Stock Market: The source of economic crises witnessed in 1998, 2008 and the recent one was external funding gap that eventually led to a massive PKR devaluation, surge in inflation, spike in interest rates, and deceleration of GDP growth. This in turn, fueled a slump in the stock market. Faced with tough economic conditions, stabilization policies were undertaken including hike in interest rate, currency devaluation, and other demand compression measures. Resultantly, as the economy was put on the stabilization path, the stock market responded positively, with new highs. More specifically, after a hefty decline of 63% in the 1998 crisis, the market delivered a robust return of 381% during the subsequent five years. Similarly, after a sharp decline of 69% in the 2008 crisis, the stock market delivered a hefty 461% return during the next five years.

1.3 1.

41.

31.

71.

31.

21.

9 2.0

2.0 2.

10.

7 0.9

1.5

1.5 1.5

0.9

0.3

0.9

1.2

1.0

0.9

0.7

0.6

0.3

0.6 0.7

0.6

0.6 0.7 0.7 0.8

0.7 0.

8

0.0

0.5

1.0

1.5

2.0

2.5

Oct

-17

Dec

-17

Feb-

18

Apr-

18

Jun-

18

Aug-

18

Oct

-18

Dec

-18

Feb-

19

Apr-

19

Jun-

19

Aug-

19

Oct

-19

Dec

-19

Feb-

20

Apr-

20

Jun-

20

Source: SBP, NBP Funds Research

Chart 1 - Meaningful drop in the monthly Current Account Deficit (USD Bln)

CPI, Jan-20, 12.1%

Inflation (CPI)6.9%

DR, Jul-19, 13.8%

Discount Rate (DR)10.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Jul-1

3

Dec-

13

May

-14

Oct

-14

Mar

-15

Aug-

15

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16

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16

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16

Apr-

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17

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18

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8

Dec-

18

May

-19

Oct

-19

Mar

-20

Aug-

20

Jan-

21

Jun-

21

Inflation (CPI) Discount Rate (DR)

Source: SBP, PBS, NBP Funds Research

Chart 2 - Interest rates to decline from 2HFY20

6%-8

%-4

4%20

%44

%-1

0%30

%92

%

55%

41%

34% 38%

-11%

-42%

36%

29%

10%

52%

41%

16%

10% 23

%-1

0%-1

9%

-80%

-40%

0%

40%

80%

120%

FY96

FY97

FY98

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

Chart 3 - Equity has performed well after economic crises

Source: PSX

KSE

100

Ret

urn

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.

Islamic Savings


We reiterate our view that the stock market has potential to deliver robust returns in FY2020, and beyond. Therefore, we advise investors to further build positions, keeping their long-term investment objectives in mind.

Continued improvement in external account position, and expected drop in inflation & interest rates;

Overall corporate earnings are expected to remain resilient, and are poised to grow at double-digit rate for 2019 and 2020;

From the valuation standpoint, the stock market is currently trading at a compelling forward Price-to-Earnings multiple of 6.0 times (Earnings Yield of 17%), and offers an attractive dividend yield of 7%.

The stock market Index declined from around 53,000 in May 2017 to about 29,000 level in August 2019. However, declining bond yields and improving Current Account Deficit (CAD) have sparked a sharp rebound of 19% in the equity market from its recent low in mid-August 2019. Presently, the Index is trading at 34,000, which is still 35% below its peak in May 2017. We expect the stock market to continue its positive momentum due to the following reasons:

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. The price of units may go up as well as down. Past performance is not necessarily indicative of future results. Please read the Offering Documents to understand the investment policies and the risks involved.

Capital Market ReviewIslamic Savings


October 2019Stock Market Review

Money Market Review

After rising handsomely by 10.7% during September, the rally at the local bourse picked-up steam during the outgoing month as the benchmark KMI-30 Index rose by a hefty 4,691 points (9.2%) on a month-on-month basis. Key catalysts? On the economic front, encouragingly, the Current Account Deficit (CAD) in 1QFY2020 has clocked-in at USD 1.55 billion versus USD 4.29 billion in 1QFY2019. Sovereign yields continued their downward trend and in the recent T-bills auction on 23rd October, yields on 3-month, 6-month, and 12-month tenors declined by 0.39%, 0.26% and 0.68%, respectively. Similarly, in the PIB auction held on 30th October, yields on 3-year, 5-year, and 10-year PIBs declined by 115 bps, 90 bps, and 90 bps to 11.8%, 11.6%, and 11.35%, respectively. Sharp decline in the sovereign yields and significantly improving CAD has created room for the Policy Rate cut in the upcoming bi-monthly Monetary Policy Review in November 2019. After some initial knee jerk reaction, investors looked past the FATF’s conclusion where Pakistan was given February 2020 as the final deadline to complete its full action plan. Market participants also ignored the so called Azadi-march/sit-in by the opposition parties. In the ongoing corporate results season, the Index heavy companies belonging to the defensive sectors such as Oil and Gas Exploration & Production and Fertilizer sectors posted strong results with healthy payouts that provided support to the market.

During the month, Foreign Investors and Insurance Companies were the main sellers in the market, off-loading positions to the tune of USD 13 million and USD 7 million, respectively. On the contrary, Individuals and Other Organizations were the major buyers in the market, accumulating positions to the tune of USD 13 million and USD 9 million, respectively. Cements, Chemicals, Engineering, Foods & Personal Care, Oil & Gas Marketing Companies, Pharmaceuticals, and Transport sectors performed better than the market. On the contrary, Automobile Assembler, Banks, Glass & Ceramics, Paper & Board, Power Generation, and Textile sectors lagged behind.

What is next? We reiterate our positive view on the stock market. The key catalysts for the market would be the move by the central bank in the upcoming Monetary Policy Review in November and progress on issuance of the Euro Bonds/Sukuks to shore up the FX reserves. We expect year-on-year CPI inflation at 10% for October 2019 due to base effect and project it to peak at around 12% in January 2020. From the valuation perspective, despite a strong 24% recovery from its recent low of 44,929 points on August 16, 2019, the market is trading at a cheap forward Price-to-Earnings (P/E) multiple of 6 (Earnings Yield of 17%) and is offering an attractive dividend yield of 7%. While slowing economic activity has hurt the profitability of the cyclical sectors, overall, the profitability of the corporate listed sector remains resilient helped by the Index heavy Oil & Gas Exploration, Banking, Fertilizer, and Power sectors. We expect corporate earnings to grow at double-digit rates for 2020 and 2021. Furthermore, odds are increasing for the continuation of net foreign buying in the market. Declining yields on the fixed income avenues have made a strong case for flow of funds to equities.

After recording at 11.4% YoY in September 2019, inflation as measured by CPI for October 2019 is expected to clock in at 10%. Inflation is likely to peak at around 12% in the beginning of CY2020, and we expect a sharp decline in inflation in CY2020. In our view, significant improvement in CAD situation, and sharp decline in sovereign bond yield have made a strong case for the Policy Rate cut sooner than later. SBP has stated that the positive impact of recent stabilization measures has started to materialize gradually. The SBP through its Monetary Policy Committee (MPC) highlighted that the interbank foreign exchange market has adjusted relatively well and with the continued adjustment in the current account, the rupee has strengthened modestly against the US dollar. The current account deficit is also showing signs of improvements and we expect this trend to continue. The floatation of bonds in the international market is expected to lend support to the SBP’s net liquid foreign exchange reserves that stood at around USD 7.91 billion at October end.

During the outgoing month, SBP held two T-Bill auctions with a combined target of Rs. 1.6 trillion against the maturity of Rs. 2.9 trillion. In the first T-Bill auction, an amount of Rs. 811 billion was accepted at a cut-off yield of 13.69%, 13.55% and 13.47% for 3-month, 6-month and 12-month tenors, respectively. In the second T-Bill auction, an amount of Rs. 622 billion was accepted at a cut-off yield of 13.3% for 3-month and 6-month tenors and 12.79% for 12-month tenor. In the PIB auction, bids worth Rs. 126 billion were realized for 3-year, 5-year and 10-year tenors at a cut-off yield of 11.8%, 11.6% and 11.35%, respectively; while bids for 20-year were rejected. Furthermore, SBP in the recent floating rate PIB auction dated 30-October-19, attracted bids worth Rs. 198 billion. Out of the total bids, only Rs. 54 billion was accepted at a cut-off margin of 31 basis points over the benchmark (i.e. weighted average yield of the 06-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 Riba Free Savings Fund (NRFSF)Formerly; NAFA Riba Free Savings Fund (NRFSF) Islamic Savings


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

October 2019

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

14.8%16.1%67.2%1.9%

100.0%Nil

31-Oct-1914.7%15.6%68.9%0.8%

100.0%Nil

30-Sep-19Asset Allocation (% of Total Assets)

Sindh Workers' Welfare Fund (SWWF)

Unit Price (31/10/2019): Rs. 10.6103

Launch Date: August 20, 2010Fund Size: Rs. 5,933 millionType: Open-end – Shari'ah 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. 0.76% p.a. of average net assets.Total Expense Ratio: 2.01% p.a. (including 0.37% 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 Shari'ah Compliant banks and money market / debt securities.

The Fund generated an annualized return of 12.0% p.a. for the month of October 2019 versus the Benchmark return of 6.3% p.a, 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 Shari'ah 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 70% 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 27 days.

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

The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 20,630,061/-. If the same were not made the NAV per unit/last one year return of scheme would be higher by Rs. 0.0369/0.38% For details investors are advised to read note 6 of the latest financial statements of the Scheme.

* 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 on dividend reinvestment gross of with-holding tax where applicable.

Performance Period

Performance %Oct2019

12.0%

6.3%

Rolling12

Months

10.6%

4.8%

FYTD2020

11.8%

5.9%

8.8%

3.7%

7.4%

6.7%

FY2015

5.9%

3.1%

FY2017

5.2%

2.4%

FY2018

5.5%

4.9%

FY2016

7.4%

3.3%

Last 3years*

6.9%

4.1%

Last 5years*

8.0%

5.7%

Since LaunchAugust 20, 2010*

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

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.

Fund Manager’s Commentary

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

AAAAA+AAA+A-Others including receivablesTotal

0.1%0.1%16.1%58.8%23.0%1.9%

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

Islamic Savings


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

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 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. 17,049 millionType: Open-end – Shari'ah 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.Total Expense Ratio: 1.41% (including 0.31% 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 Shari'ah Compliant money market and debt avenues.

The Fund generated an annualized return of 12.5% p.a. in October 2019 versus the Benchmark return of 6.3% p.a., thus registering an outperformance of 6.2% 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 Shari'ah 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 that provides easy liquidity. The Fund is allowed to invest in Shari'ah 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 76% 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 16 days.


October 2019

Since LaunchOctober 06, 2018*

10.8%

4.6%

Oct2019

12.5%

6.3%

FYTD2020

12.4%

5.9%

Rolling12

Months

11.0%

4.8%

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

-14.9%9.3%

74.9%0.9%

100.0%Nil

31-Oct-192.6%

14.5%12.2%68.3%2.4%

100.0%Nil


Unit Price (31/10/2019): Rs. 10.3426

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.




AAAAA+AAAA-A+A-Others including receivablesTotal

3.0%1.1%7.7%2.0%62.6%22.7%0.9%

100.0%

The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 13,075,486/-. If the same were not made the NAV per unit/last one year return of scheme would be higher by Rs. 0.0079/0.08%. For details investors are advised to read note 12.1 of the latest financial statements of the Scheme.


%


Islamic Savings


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

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

Value of Investments

after Provision

% of Net

Assets

% ofGrossAssets

Provisionheld

General Information

Top Sukuk Holdings (as at October 31, 2019)

Name of the Members of Investment Committee


Investment Objective



Asset Allocation (% of Total Assets)Sukuks Placement with Banks (Islamic) Bank Deposits Commercial Papers (Islamic) Others including receivables Total Leverage

4.5%14.8%65.9%13.6%1.2%

100.0%Nil

31-Oct-194.4%

14.6%66.1%13.1%1.8%

100.0%Nil

30-Sep-19

Launch Date: October 26, 2007Fund Size: Rs. 2,476 millionType: Open-end – Shari'ah 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. 0.75% p.a. of average net assetsTotal Expense Ratio: 2.05% p.a. (including 0.37% 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 Shari'ah Compliant manner by investing in Shari'ah Compliant debt securities, money market instruments and bank deposits.

During the month under review, the Fund posted an annualized return of 12.5% p.a. as compared to the Benchmark return of 6.3% p.a., thus register-ing an outperformance of 6.2% p.a. This outperformance is net of manage-ment fee and all other expenses.

The allocation in corporate Sukuks stood at around 5% of the net assets. Around 67% 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% p.a. and weighted average time to maturity is 4.9 years. The weighted average time to maturity of the Fund is 106 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

3.4%1.1%4.5%

MONTHLY REPORT (MUFAP's Recommended Format)Unit Price (31/10/2019): Rs. 9.8953 October 2019

The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 13,960,272/-. If the same were not made the NAV per unit/last one year return of scheme would be higher by Rs. 0.0558/0.62%. For details investors are advised to read note 6 of the latest financial statements of the Scheme.


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

Performance Period


FY2015

12.5%

6.3%

Rolling12

Months

10.4%

4.8%

FYTD2020

11.6%

5.9%

8.5%

3.7%

9.2%

6.6%

FY2016

7.4%

4.8%

FY2017

5.4%

3.9%

FY2018

5.1%

2.4%

7.1%

3.5%

Last 3years*

7.3%

4.2%

Last 5years*

9.3%

5.6%

Last 10years*

6.9%

5.7%

Since Launch October 26, 2007*

NBP Islamic Savings FundFormerly; NAFA Islamic Income Fund

Benchmark**




AAAAA+AAAA-A+AA-Others including receivablesTotal

0.2%0.1%17.0%0.1%57.4%1.1%22.9%1.2%

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



October 2019

To provide competitive return with maximum possible capital preservation by

investing in low risk and liquid Shari'ah Compliant authorized instruments.

The Fund generated an annualized return of 12.6% p.a. for the month of October 2019 versus the Benchmark return of 5.8% p.a., thus registering an outperformance of 6.8% 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, thereby providing easy liquidity along with a high-quality credit profile.

Around 84% 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 4 days.


Unit Price (31/10/2019): Rs. 10.4417MONTHLY REPORT (MUFAP's Recommended Format)

Launch Date: February 28, 2018Fund Size: Rs. 3,551 millionFund Size (excluding Rs. 3,278 millioninvestment by Fund of Funds) Type: Open-end – Shari'ah 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.). 0.13% p.a. of average net assets. Total Expense Ratio: 1.32% (including 0.29% 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

Asset Allocation (% of Total Assets)


14.7%83.3%2.0%

100.0%Nil

31-Oct-1914.1%83.2%2.7%

100.0%Nil

30-Sep-19

8.4%

3.6%

Since LaunchFebruary 28, 2018*

12.6%

5.8%

Oct2019

12.4%

5.5%

FYTD2020

10.5%

4.3%

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. 4,961,261.68/-. If the same were not made the NAV per unit/since inception return of scheme would be higher by Rs. 0.0146/0.15%. For details investors are advised to read note 14 of the latest financial statements of the Scheme.




Performance %


AAAAA+AAAA-A-Others including receivablesTotal

37.7%5.1

55.0%0.1%0.1%2.0%

100.0%

Note: Amount invested by fund of funds is Rs. 273 million

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


Islamic Savings


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

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 Documents to understand the investment policies and the risk 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 return may include provisions and reversal of provisions against some debt securities.

‘s

October 2019

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


Top Ten Holdings (as on October 31, 2019)

Details of Non-Compliant Investments

Equities / Stocks Cash SukukOthers Total Leverage

67.0%17.7%13.7%1.6%

100.0%Nil

30-Sep-1964.9%18.9%14.4%1.8%

100.0%Nil

PER6.46.7

NISIFPBV1.51.0

DY6.3%6.3%

Unit Price (31/10/2019): Rs. 14.2455

Launch Date: October 26, 2007Fund Size: Rs. 5,154 million Type: Open-end-Shari'ah Compliant -Asset Allocation FundDealing Days: Daily – Monday to FridayDealing Time: (Mon-Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business daysPricing Mechanism: Forward PricingLoad:*** Front End Load (Individual): 3%, (Nil on investment above Rs. 101 million) Front End Load (Other): 3% (Nil on investment above Rs. 50 million) Back End Load: NILManagement Fee: 1.5% per annum w.e.f 12-Jul-19 Total Expense Ratio (%) 3.37% p.a (including 0.36% government levies)Selling & Marketing Expenses 1.15% per annum Risk Profile: Moderate Listing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: Deloitte Yousuf Adil Chartered AccountantsBenchmark:** Daily weighted return of KMI-30 Index & 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP, based on Fund's actual allocation.Fund Manager: Taha Khan Javed, CFAMinimum Growth Unit: Rs. 10,000/-Subscription: Income Unit: Rs. 100,000/-Asset Manager Rating: AM1 by PACRA (Very High Quality)

To generate capital appreciation by investing in Shari'ah Compliant equity and equity related securities and income by investing in Shari'ah Compliant bank deposits, debt & money market securities.

During the month under review, unit price (NAV) of NBP Islamic Sarmaya Izafa Fund (NISIF) increased by 5.9% whereas the Benchmark increased by 6.4%, thus an underperformance of 0.5% was recorded. Since inception your Fund has posted 11.6% p.a return, versus 8.2% p.a by the Benchmark. Thus, to-date the outperformance of your Fund stands at 3.4% p.a. This outperformance is net of management fee and all other expenses.

NISIF started off the month with an allocation of around 65% in equities, which increased to around 67% towards the end of the month. NIAAF underperformed the Benchmark in October as the Fund was underweight in select Oil & Gas Exploration Companies, Fertilizer, Cement, and Pharmaceuticals sectors stocks which outperformed the market and overweight in select Textile Composite and Glass & Ceramics sectors stocks which underperformed the market. During the month, the allocation was increased primarily in Oil & Gas Marketing Companies, Cement, and Chemicals sectors, whereas it was reduced primarily in Fertilizer and Oil & Gas Exploration Companies sectors.

Engro Corporation Ltd

Oil & Gas Dev Co Ltd

Hub Power Company Ltd

Engro Powergen Thar (Pvt) Ltd


Eden Housing (Sukuk II)

Total

4,921,875

4,921,875

4,921,875

4,921,875

-

-

-

-

Pak Petroleum Ltd

Engro Fertilizer Ltd

Mari Petroleum Company Ltd

Meezan Bank Ltd

Lucky Cement Ltd

-

-

SUKUK

Equity

Equity

Equity

Equity

Equity

5.5%

5.4%

4.7%

4.7%

2.9%

Equity

Equity

Equity

Sukuk

Sukuk

9.1%

8.2%

6.0%

5.6%

5.6%

% of TotalAssets

% of TotalAssets

The Scheme has maintained provisions against worker’s welfare Fund’s liability to the tune of Rs. 62,902,629/- if the same were not made the NAV Per unit/return of the Scheme would be higher by Rs. 0.1738/1.10%. For details investors are advised to read the note 5 of the latestFinancial Statements of the Scheme.


Muhammad Ali Bhabha, CFA, FRMTaha Khan Javed, CFA

Hassan Raza, CFA

* Annualized ReturnAll Other returns are Cumulative

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

Performance Period


FYTD2020

5.9%

6.4%

3.7%

4.5%

Rolling12

Months

(9.7%)

(8.0%)

(11.4%)

(10.5%)

33.8%

12.1%

FY2015

13.1%

9.2%

FY2016

20.3%

11.9%

FY2017

(8.7%)

(3.6%)

FY2018

(1.6%)

0.2%

Last 3Years*

7.4%

3.8%

Last 5Years*

14.1%

10.7%

Last 10Years*

11.6%

8.2%

Since LaunchOctober 26, 2007*

Benchmark**

NBP Islamic Sarmaya Izafa FundFormerly; NAFA Islamic Asset Allocation Fund

Note:** Effective from September 01, 2016; Previously average of (i) average 3-month Islamic banks deposit rate (ii) 6-month KIBOR or its Shari'ah Compliant equivalent (iii) KMI 30 Index** KSE-30 is used as equity component for the Benchmark before June 30, 2008, the launch date of KMI-30 Index. The fund category was changed to Islamic Asset Allocationfrom Islamic Balanced with effect from April 22, 2014. Consequently, allowed equity range is now 0% to 90% which previously was 30% to 70%. Previous benchmark was

50% KMI-30 Index & 50% Islamic Bank Deposit.


Top Five Sectors (% of Total Assets) (as on October 31, 2019)

Oil & Gas Exploration CompaniesFertilizerPower Generation & DistributionCementCommercial BanksOthers

21.3%14.5%6.3%4.7%4.7%

15.5%

*** effective from January 02, 2017

FY2019

**** Based on NBP Funds estimates

NBP Islamic Regular Income Fund (NIRIF)Formerly; NBP Aitemaad Regular Payment Fund (NARPF) Islamic Savings


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 Documents to understand the investment policies and the risk involved.

*Cumulative Return [Returns are net of management fee & all other expenses]

Launch Date: October 31, 2018Fund Size: Rs. 110 millionType: Open-end – Shari'ah Compliant Asset Allocation FundDealing Days: Daily – Monday to FridayDealing Time: (Mon - Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business daysPricing Mechanism Forward PricingLoad:*** Front end: 3.0% Back end: NilManagement Fee: 1.5% per annum w.e.f 12-Jul-19 (Currently no fee is being changed)Selling & Marketing Expenses: 1.15% per annumTotal Expense Ratio: 2.59% p.a (including 0.25% government levies)Risk Profile: ModerateListing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: KPMG Taseer Hadi & Co, Chartered AccountantsBenchmark: Daily weighted return of KMI-30 Index & 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP, based on Fund's actual allocation.Fund Manager: Taha Khan Javed, CFAMinimum Subscription: Growth Unit: Rs. 10,000/- Income Unit: Rs. 100,000/-Asset Manager Rating: AM1 by PACRA (Very High Quality)

The objective of the Fund is to provide regular payments to investors by investing in Shari'ah Compliant Debt, Money Market & Equity investment avenues.

NBP Islamic Regular Income Fund is aimed at meeting investors' regular income needs along with growth in investment value through payment of regular dividend by investing in Shari'ah Compliant Debt, Money Market & Equity investment avenues.

NIRIF started off the month with an allocation of around 73% in equities, which increased to around 76% towards the end of the month. NIRIF underperformed the Benchmark in October as the Fund was underweight in select Transport and Pharmaceuticals sectors stocks which outperformed the market and overweight in select Oil & Gas Exploration Companies sector stock which underperformed the market. During the month, the allocation was increased primarily in Oil & Gas Exploration Companies and Fertilizer sectors, whereas it was reduced primarily in Power Generation & Distribution Companies sector.

October 2019

Since Launch*October 31, 2018

(14.6%)

(16.7%)

Oct 2019 Rolling 12 Months

4.5%

7.1%

FYTD 2020

3.2%

3.3%

(14.6%)

(16.7%)

NBP Islamic Regular Income FundFormerly; NBP Aitemaad Regular Payment Fund (NARPF)

Performance Period

Equities / Stocks Cash Others Total Leverage

75.9%19.9%4.2%

100.0%Nil

31-Oct-1972.5%23.5%4.0%

100.0%Nil


Unit Price (31/10/2019): Rs. 8.5416




Hassan Raza, CFA

%*

Characteristics of Equity Portfolio**

PER6.06.7

NIRIFKMI-30

PBV1.41.0

DY8.7%6.3%

**Based on NBP Funds estimates


FertilizerOil & Gas Exploration CompaniesPower Generation & DistributionOil & Gas Marketing CompaniesTechnology & CommunicationOthers

26.0%25.9%9.5%4.9%3.2%6.4%


The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 69,302/-If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs 0.0054/0.05%. For details investors are advised to read the Note 13.1 of the Financial Statements.





Pakistan Oilfields Ltd



Pak Petroleum Ltd

Pakistan Telecommunication

Attock Petroleum Ltd

Nishat Mills Ltd

Paksitan State Oil Co Ltd

5.8%

3.2%

2.9%

2.6%

1.7%

13.1%

12.8%

11.4%

9.5%

8.6%

Equity

Equity

Equity

Equity

Equity

Equity

Equity

Equity

Equity

Equity

% of TotalAssets

AssetsClass

% of TotalAssets

AssetsClass*** effective from January 02, 2017

NBP Islamic Stock Fund (NISF)Formerly; NAFA Islamic Stock Fund (NISF) Islamic Savings


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




Pak Petroleum Ltd

Meezan Bank Ltd




Lucky Cement Ltd


Engro Polymer

6.5%

6.3%

5.1%

5.0%

3.3%

10.9%

10.6%

8.3%

7.5%

6.6%

% of TotalAssets

% of TotalAssets



‘

Launch Date: January 9, 2015Fund Size: Rs. 4,104 million Type: Open-end-Shari'ah Compliant-Equity FundDealing Days: Daily – Monday to FridayDealing Time: (Mon-Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business daysPricing Mechanism: Forward Pricing Load:** Front End Load (Individual):3% (Nil on investment above Rs. 101 million) Front End Load (Other): 3% (Nil on investment above Rs. 50 million) Back End Load: NILManagement Fee: 1.5% per annum w.e.f 12-Jul-19Total Expense Ratio (%): 3.44% p.a (including 0.33% government levies)Selling & Marketing Expenses: 1.15% per annumRisk Profile: HighListing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: KPMG Taseer Hadi & Co, Chartered AccountantsBenchmark: KMI-30 IndexFund Manager: Sajjad Anwar, CFAMinimum: Growth Unit: Rs. 10,000/-Subscription: Income Unit: Rs. 100,000/-Asset Manager Rating: AM1 by PACRA (Very High Quality)

The objective of the Fund is to provide investors with long term capital growth

from an actively managed portfolio of Shari'ah Compliant listed equities.

During the month under review, NBP Islamic Stock Fund’s (NISF) unit price (NAV) increased by 8.0%, whereas the Benchmark increased by 9.2%, thus an underperformance of 1.2% was recorded. Since inception on January 9, 2015 your Fund NAV has increased by 3.5% p.a versus 1.3% p.a increase in the Benchmark. Thus, to-date the outperformance of your Fund stands at 2.2% p.a. This outperformance is net of management fee and all other expenses.

NISF started off the month with an allocation of around 90% in equities, which increased to around 93% towards the end of the month. NISF underperformed the Benchmark in October as the Fund was underweight in select Fertilizer, Cement, Pharmaceuticals, and Oil & Gas Marketing Companies sectors stocks which outperformed the market and overweight in select Power Generation & Distribution Companies and Glass & Ceramics sectors stocks which underperformed the market. During the month, the allocation was increased primarily in Engineering, Cement, and Chemicals sectors, whereas it was reduced primarily in Oil & Gas Exploration Companies, Fertilizer, and Power Generation & Distribution Companies sectors.

October 2019

Since Launch*January 09, 2015

3.5%

1.3%

Oct2019

8.0%

9.2%

FYTD2020

1.8%

3.2%

Rolling12

Months

(21.3%)

(22.2%)

(20.1%)

(23.8%)

FY2016

12.9%

15.5%

Last 3Years*

(5.1%)

(5.7%)

FY2017

32.5%

18.8%

FY2018

(12.8%)

(9.6%)

NBP Islamic Stock FundFormerly; NAFA Islamic Stock Fund (NISF)

Performance Period

Equities / Stocks Cash Equivalents Others including receivables Total Leverage

PER6.16.7

NISFKMI-30

PBV1.51.0

DY6.2%6.3%


Taha Khan Javed, CFAHassan Raza, CFA

92.5%6.0%1.5%

100.0%Nil

31-Oct-19

90.0%8.0%2.0%

100.0%Nil


Characteristics of Equity Portfolio***

Unit Price (31/10/2019): Rs. 9.2729

The Scheme has maintained provisions against Sindh worker’s welfare Fund’s liability to the tune of Rs. 45,648,039/- if the same were not made the NAV Per unit/last one year return of the Scheme would be higher by Rs. 0.1031/0.88% age.For details investors are advised to read the Note 5 of the latest Financial Statements of the Scheme.



Performance %


Oil & Gas Exploration CompaniesFertilizerCementCommercial BanksPower Generation & DistributionOthers

30.2%17.5%8.2%7.5%6.8%

22.3%

** effective from January 02, 2017

FY2019

*** Based on NBP Funds estimates

NBP Islamic Energy Fund (NIEF)Formerly; NAFA Islamic Energy Fund (NIEF) Islamic Savings







Pak Petroleum Ltd


Sui Northern Gas Ltd

Pakistan State Oil Co Ltd

Attock Petroleum Ltd

K-Electric Ltd

Hi-Tech Lubricants Ltd

7.2%

4.9%

3.1%

1.9%

1.6%

16.9%

16.6%

14.6%

12.2%

10.7%

% of TotalAssets

% of TotalAssets

PER5.56.7

NIEFKMI-30

PBV1.71.0

DY5.8%6.3%

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 Documents to understand the investment policies and the risks involved.


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

‘

Launch Date: April 21, 2016Fund Size: Rs. 526 millionType: Open Ended Shari'ah Compliant Equity SchemeDealing Days: Daily – Monday to FridayDealing Time: (Mon - Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business daysPricing Mechanism Forward PricingLoad:** Front End Load (Individual): 3% (Nil on investment above Rs. 101 million) Front End Load (Other): 3% (Nil on investment above Rs. 50 million) Back End Load: NILManagement Fee: 1.5% p.a w.e.f 12-Jul-19Total Expense Ratio (%) 3.77% p.a (including 0.25% government levies)Selling & Marketing Expenses 1.15% per annum Risk Profile HighListing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: A. F. Ferguson & Co. Chartered AccountantsBenchmark: KMI-30 IndexFund Manager: Taha Khan Javed, CFAMinimum Growth Unit: Rs. 10,000/-Subscription: Income Unit: Rs. 100,000/-Asset Manager Rating: AM1 by PACRA ( Very High Quality)

The objective of NBP Islamic Energy Fund is to provide investors with long term capital growth from an actively managed portfolio of Shari’ah Compliant listed equities belonging to the Energy Sector.

NBP Funds launched its third open-end Islamic Equity Fund namely NBP Islamic Energy Fund (NIEF) in April, 2016. The aim of the Fund is to provide growth to the investment of unit holders over the long-term in approved Shari'ah Compliant energy stocks.

NIEF started off the month with an allocation of around 89% in equities, which increased to around 92% towards the end of the month. NIEF underperformed the Benchmark in October as the Fund was overweight in select Energy sectors stocks which underperformed the market. During the month, the allocation was increased primarily in Oil & Gas Exploration Companies sectors.

October 2019

Since Launch*April 21, 2016

0.4%

(1.5%)

Oct2019

9.0%

9.2%

FYTD2020

0.4%

3.2%

(26.8%)

(22.2%)

Rolling12

Months

FY2017

32.2%

18.8%

Last 3Years*

(6.1%)

(5.7%)

FY2018

(3.2%)

(9.6%)

FY2019

(27.8%)

(23.8%)

NBP Islamic Energy FundFormerly; NAFA Islamic Energy Fund (NIEF)

Performance Period


92.4%4.8%2.8%

100.0%Nil

31-Oct-1989.1%8.6%2.3%

100.0%Nil


Unit Price (31/10/2019): Rs. 9.1863

%



Sectors (% of Total Assets) (as on October 31, 2019)

Oil & Gas Exploration Companies

Oil & Gas Marketing Companies

Power Generation & Distribution

Refinery

60.4%

16.9%

14.4%

0.7%

**effective from January 02, 2017

The Scheme has maintained provisions against sindh worker’s welfare Fund’s liability to the tune of Rs. 14,050,569/- if the same were not made the NAV Per unit/return of the Scheme would be higher by Rs 0.2455/1.96%. For details investors are advised to read the note 5 of the latest Financial Statements.



NAFA Islamic Pension Fund (NIPF)Islamic Savings


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 Pension fund. All investments in Pension funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Documents to understand the investment policies and the risks involved.

General Information Investment Objective


To provide a secure source of savings and regular income after retirement tothe Participants.

MONTHLY REPORT (MUFAP's Recommended Format) October 2019

Name of the Members of Investment Committee

Asset Allocation (% of Total Assets)

31-Oct-19Equity Sub-fund

Credit Quality of the Portfolio (as on October 31, 2019)

EquityCash EquivalentsOthers including receivablesTotal

95.0%3.4%1.6%

100.0%31-Oct-19Debt Sub-fund

Cash EquivalentsBank PlacementGOP Ijara SukukSukukCommercial Papers (Islamic)OthersTotal

36.9%29.0%21.2%6.6%4.5%1.8%

100.0%31-Oct-19Money Market Sub-fund

Cash EquivalentsBank PlacementCommercial Papers (Islamic)OthersTotal

35.6%58.3%4.3%1.8%

100.0%

30-Sep-19

92.0%5.9%2.1%

100.0%30-Sep-19

36.4%29.3%21.3%6.7%4.5%1.8%

100.0%30-Sep-19

54.1%40.3%4.4%1.2%

100.0%

21.2%16.2%16.7%22.2%2.2%

19.7%1.8%

100.0%

Government Securities (AAA rated)AAAAA+AAAA-A+OthersTotal

-32.6%0.2%7.2%

38.5%19.7%1.8%

100.0%

Debt Money Market

During the month of October:

NIPF Equity Sub-fund unit price increased by 9.2%, inline with the bench-mark. The Sub-fund was around 95% invested in equities with major weights in Oil & Gas Exploration Companies, Fertilizer and Power Generation & Distribution sectors. Equity Sub-fund maintains exposure of atleast 90% in listed equities on average. Last 90 days average allocation in equity was 94% of net asset.

NIPF Debt Sub-fund generated annualized return of 11.1%. The Sub-fund was invested primarily in GoP Ijara Sukuks and Islamic bank deposits. Debt Sub-fund maintains a minimum combined exposure of 50% in Islamic Government Securities (25% minimum) and AA+ rated Islamic banks. Weighted Average Maturity of Sub-fund is 0.4 years.

NIPF Money Market Sub-fund generated annualized return of 11.2%. The Sub-fund was invested primarily in Islamic bank deposits. Money Market Sub-fund average maturity cannot exceed 1 year. Weighted Average Maturity of Sub-fund is 18 days.

Oil & Gas Dev Co LtdEngro Corporation LtdPak Petroleum LtdHub Power Company LtdMeezan Bank Ltd

8.9%8.4%8.1%7.6%7.3%

(% of Total Assets)

7.1%6.3%5.1%4.2%3.6%

Mari Petroleum Company LtdEngro Fertilizer LtdPakistan Oilfields Ltd Lucky Cement Ltd Sui Northern Gas Ltd

(% of Total Assets)

Top Ten Holdings of Equity Sub-fund (as on October 31, 2019)

Total amountProvided

Rs

Sindh Workers' Welfare Fund (SWWF)NIPF has maintained provisions against Sindh Workers’ Welfare Fund’s liability inindividual sub-Funds as stated below:

Equity Sub-fund

Debt Sub-fund

Money Market Sub-fund

7,304,613

1,600,891

1,734,658

2.0040

0.4285

0.3808

0.65%

0.33%

0.29%

Last One Yearreturn would

otherwise have

been higher by:

Amount Per

Unit

Rs

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 63 of the Income Tax Ordinance, 2001.

Top Sukuk Holdings of Debt Sub Funds (as at October 31, 2019)Name of Sukuk


% of Total Assets

6.6%


Oil & Gas Exploration CompaniesFertilizerPower Generation & DistributionCementCommercial BanksOthers

29.1%14.8%8.3%8.2%7.3%27.3%

Launch Date: July 2, 2013Fund size: Rs. 2,083 millionType: Open-end – Shari'ah Compliant Voluntary Pension SchemeDealing 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.MPricing Mechanism Forward PricingFront end Load: Upto 3% on ContributionsBack end Load: 0%Management Fee: On average Annual Net Assets of each Sub-Fund. Equity, Debt, Money Market 1.50% p.a. Equity 2.30% p.a. (including 0.41% government levies)Total Expense Ratio (%) Debt 2.18% p.a. (including 0.46% government levies) Money Market 2.17% p.a. (including 0.47% government levies)Risk Profile Investor dependentCustodian & Trustee: Central Depository Company (CDC)Auditors: Deloitte Yousuf Adil Chartered AccountantsFund Manager: Sajjad Anwar, CFAMinimum Initial: Rs. 10,000/-Subscription: Subsequent: Rs. 1000/-Asset Manager Rating: AM1 by PACRA (Very High Quality)Leverage Nil


Taha Khan Javed, CFA,Muhammad Ali Bhabha, CFA,

Hassan Raza, CFA

NIPF-Equity Sub-fund

NIPF-Debt Sub-fund

NIPF-Money Market Sub-fund

248.0109

140.5887

143.5281

904.0

525.3

653.8

The performance reported is net of management fee & all other expenses.* Cumulative Returns All Other returns are annualized

9.2%*

11.1%

11.2%

15.3%

5.4%

5.7%

NAV Per Unit(Rs.) Oct31, 2019

Oct2019

2.7%*

10.8%

11.0%

FYTD2020

(19.1%)*

8.6%

9.6%

Rolling12

Months

(10.5%)*

2.8%

3.6%

FY2018

(18.2%)*

6.1%

7.5%

FY2019

51.5%*

5.6%

6.2%

FY2015

9.1%

4.9%

5.4%

Last 5Years

(2.7%)

5.0%

5.7%

Last 3Years

16.9%*

3.8%

3.9%

FY2016

35.8%*

3.9%

3.8%

FY2017

Since LaunchJuly 02, 2013

Fund Size

(Rs. in mln)

Performance %

For details investors are advised to read the Note 5 of the latest Financial Statement of the Scheme.

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




Pak Petroleum Ltd


Meezan Bank Ltd





Engro Polymer

Lucky Cement Ltd

Equity

Equity

Equity

Equity

Equity

2.9%

2.3%

2.3%

1.9%

1.8%

Equity

Equity

Equity

Equity

Equity

4.9%

3.3%

3.3%

3.1%

3.0%

% of TotalAssets

% of TotalAssets

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 Documents to understand the investment policies and the risk involved. Capital protection only applies to unit holders who hold their investments until initial maturity of two years.

‘

Launch Date: June 27, 2014Fund Size: Rs. 110 millionType: Open-end Shari'ah Compliant -Capital Protected FundDealing Days: Daily – Monday to FridayDealing Time: (Mon-Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business daysPricing Mechanism: Forward PricingLoad: Back end: 0%Management Fee: Equity component 2% per annum Others: 12% of Net Income (Min 0.5% p.a., Max 1.0% p.a.) 1.27% p.a of Average Net AssetsRisk Profile: LowTotal Expense Ratio (%) 3.24% p.a (including 0.56% government levies)Selling & Marketing Expenses 0.4% per annum Listing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: KPMG Taseer Hadi & Co. Chartered AccountantsBenchmark: Daily weighted return of KMI-30 index & Islamic Bank Deposits based on Fund’s actual allocation.Fund Manager: Sajjad Anwar, CFAAsset Manager Rating: AM1 by PACRA (Very High Quality)

The objective of NAFA Islamic Principal Protected Fund-II is to earn a potentially high return through dynamic asset allocation between Shari'ah Compliant Equities and Money Market investment avenues, while providing principal protection.

Since inception, NIPPF-II has generated a return of 9.9% p.a versus Benchmark return of 7.3% p.a. The current equity exposure stands at around 37%. Key holdings of the Fund belong to Oil & Gas Exploration Companies, Fertilizer, and Commercial Banks sectors. During the month, multiplier stood at 0.8.

October 2019

Since LaunchJune 27, 2014*

9.9%

7.3%

NAFA Islamic Principal Protected Fund-II

Performance Period


PER6.36.7

NIPPF-IIKMI-30

PBV1.61.0

DY6.3%6.3%



Hassan Raza, CFA

37.2%58.3%4.5%

100.0%Nil

31-Oct-1934.0%60.1%

5.9%100.0%

Nil


Unit Price (31/10/2019): Rs. 106.1549

The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 3,737,392/-If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs 3.6143/3.49%. For details investors are advised to read the Note 6 of the latest Financial Statements.


Oct2019

4.5%

4.1%

FYTD2020

5.9%

4.8%

Rolling12

Months

2.6%

(0.02%)

FY2017

25.8%

16.1%

FY2018

0.8%

1.6%

(1.4%)

(3.7%)

FY2015

21.0%

12.2%

Last 3Years*

7.2%

6.0%

FY2016

3.3%

8.9%


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



Oil & Gas Exploration CompaniesFertilizerCommercial BanksOil & Gas Marketing CompaniesCementOthers

11.9%7.8%3.1%3.0%2.5%8.9%

FY2019

** Based on NBP Funds estimates

%

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



PER6.06.7

NIAAEFKMI-30

PBV1.61.0

DY6.2%6.3%

NBP Islamic Active Allocation Equity Fund(Formerly: NAFA Islamic Active Allocation Equity Fund)

NBP Active Allocation Riba Free Savings Fund(Formerly: NAFA Active Allocation Riba Free Savings Fund)

Total

70.8%

20.9%

91.7%

Top Holdings (% age of total assets)(as on October 31, 2019)


‘

Launch Date: January 15, 2016Fund Size: Rs. 136 millionType: Open Ended Shari'ah Compliant Fund of Funds Dealing Days: Daily – Monday to FridayDealing Time: (Mon - Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business daysPricing Mechanism: Forward PricingBack end Load: Nil 1) On invested amount in NBP funds, noManagement Fee: additional fee. 2) Cash in Bank account: 1.25% p.a. 0.02 % p.a of average net assets.Total Expense Ratio (%): 1.03% p.a (including 0.04% government levies)Risk Profile: Low to moderateListing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: A. F. Ferguson & Co. Chartered AccountantsBenchmark:** Daily weighted return of KMI-30 Index & 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP, based on Fund's actual allocation (which is combination of benchmarks of underlying schemes)Fund Manager: Sajjad Anwar, CFAAsset Manager Rating: AM1 by PACRA (Very High Quality)

The objective of the Fund is to provide investors an opportunity to earn attractive return from an actively managed portfolio of Shari’ah Compliant Equity Fund and Income Fund.

NBP Funds launched its NAFA Islamic Active Allocation Plan-I (NIAAP-I) in January, 2016 which is the first plan under NAFA Islamic Active Allocation Fund-I. The Active Allocation Plan is dynamically managed between dedicated equity related and income schemes managed by NBP Funds based on the Fund Manager’s outlook of the authorized asset-classes. The Plan is presently closed for new subscription. NIAAP-I has an initial maturity of two years. Since inception, NIAAP-I has generated a return of 3.6% p.a versus Benchmark return of 3.9% p.a. The current exposure in Income Fund and Equity Fund stands at 20.9% & 70.8%, respectively. The Plan can invest up to 100% in equity funds. We are confident that the Plan will generate good returns considering the improved macroeconomic and political outlook and dynamic equity allocation mechanism of the Fund.

October 2019


3.6%

3.9%

Oct2019

6.1%

6.9%

FYTD2020

4.3%

5.3%

Rolling12

Months

(7.2%)

(7.0%)

FY2017

24.3%

16.3%

Last 3year*

(1.3%)

(0.4%)

FY2018

(12.0%)

(8.5%)

FY2019

(9.5%)

(11.0%)

NAFA Islamic Active Allocation Plan-I

Performance Period

Shari'ah Compliant Funds Cash Equivalents Others including receivables Total Leverage

91.7%8.1%0.2%

100.0%Nil

31-Oct-1992.5%7.1%0.4%

100.0%Nil


Unit Price (31/10/2019): Rs. 110.1452

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 Documents to understand the investment policies and the risks involved.

%



Hassan Raza, CFA


** effective from September 01, 2016; Previously daily weighted return of KMI-30 index & 6 month deposit rateof A- and above rated Islamic banks and windows based on actual investment.

The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 4,946,637/-If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs 4.0161/3.38%. For details investors are advised to read the Note 5 of the latest Financial Statements of the Scheme.



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


Page 15


PER6.06.7

NIAAEFKMI-30

PBV1.61.0

DY6.2%6.3%


Total

92.2%

92.2%

Top Holdings (%age of total assets)(as on October 31, 2019)

* Annualized ReturnAll other returns are cumulative

‘

Launch Date: March 04, 2016Fund Size: Rs. 30 millionType: Open Ended Shari'ah Compliant Fund of Funds Dealing Days: Daily – Monday to FridayDealing Time: (Mon - Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business daysPricing Mechanism: Forward PricingBack end Load: Nil 1) On invested amount in NBP funds, noManagement Fee: additional fee. 2) Cash in Bank account: 1.25% p.a. 0.0% p.a of average net assets.Total Expense Ratio (%): 1.49% p.a (including 0.25% government levies)Risk Profile: Low to moderateListing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: A. F. Ferguson & Co. Chartered AccountantsBenchmark:** Daily weighted return of KMI-30 Index & 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP, based on Fund's actual allocation (which is combination of benchmarks of underlying schemes)Fund Manager: Sajjad Anwar, CFAAsset Manager Rating: AM1 by PACRA (Very High Quality)


NBP Funds launched its NAFA Islamic Active Allocation Plan-II (NIAAP-II) in March 2016 which is the second plan under NAFA Islamic Active Allocation Fund-I. The Active Allocation Plan is dynamically managed between dedicated equity related and income schemes managed by NBP Funds based on the Fund Manager’s outlook of the authorized asset-classes. The Plan is presently closed for new subscription. NIAAP-II has an initial maturity of two years. Since inception, NIAAP-II has generated a return of 4.5% p.a versus Benchmark return of 3.3% p.a. The current exposure in Income Fund stands at 92.2%. We are confident that the Plan will generate good returns considering the improved macroeconomic and political outlook and dynamic equity allocation mechanism of the Fund.

October 2019

Oct2019

1.1%

0.5%

FYTD2020

3.8%

1.9%

Rolling12

Months

(2.1%)

(4.8%)

FY2017

23.6%

15.9%

Last 3Years*

0.7%

0.4%

FY2018

(11.1%)

(8.1%)

FY2019

Since Launch*March 04, 2016

4.5%

3.3%

(4.1%)

(6.0%)

NAFA Islamic Active Allocation Plan-II

Performance Period


92.2%7.7%0.1%

100.0%Nil

31-Oct-1993.6%

5.9%0.5%

100.0%Nil


Unit Price (31/10/2019): Rs. 108.8598



Hassan Raza, CFA




The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 3,985,123/-If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs 14.5097/13.05%. For details investors are advised to read the Note 5 of the latest Financial Statements of the Scheme.


%


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


Page 16


PER6.06.7

NIAAEFKMI-30

PBV1.61.0

DY6.2%6.3%

73.3%

18.1%

91.4%

Top Holdings (% age of total assets)(as on October 31, 2019)

* Annualized ReturnsAll other returns are cumulative

‘

Launch Date: June 28, 2016Fund Size: Rs. 377 millionType: Open Ended Shari'ah Compliant Fund of Funds Dealing Days: Daily – Monday to FridayDealing Time: (Mon - Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business daysPricing Mechanism: Forward PricingBack end Load: Nil 1) On invested amount in NBP funds, noManagement Fee: additional fee. 2) Cash in Bank account: 1.25% p.a. 0.08% p.a of average net assets.Total Expense Ratio (%): 0.70% p.a (including 0.29% government levies)Risk Profile: Low to moderate Listing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: A. F. Ferguson & Co. Chartered AccountantsBenchmark:** Daily weighted return of KMI-30 Index & 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP, based on Fund's actual allocation (which is combination of benchmarks of underlying schemes)Fund Manager: Sajjad Anwar, CFAAsset Manager Rating: AM1 by PACRA (Very High Quality)


NBP Funds launched its NAFA Islamic Active Allocation Plan-III (NIAAP-III) in June 2016 which is the third plan under NAFA Islamic Active Allocation Fund-I. The Active Allocation Plan is dynamically managed between dedicated equity related and income schemes managed by NBP Funds based on the Fund Manager’s outlook of the authorized asset-classes. The Plan is presently closed for new subscription. NIAAP-III has an initial maturity of two years.

Since inception, NIAAP-III has increased by 1.4% p.a versus Benchmark returns of 1.0% p.a. The current exposure in Income Fund and Equity Fund stands at 18.1% & 73.3%, respectively. The Plan can invest up to 100% in equity funds. We are confident that the Plan will generate good returns considering the improved macroeconomic and political outlook and dynamic equity allocation mechanism of the Fund.

October 2019

Since Launch*June 28, 2016

1.4%

1.0%

Oct2019

6.0%

6.8%

FYTD2020

4.2%

5.1%

Rolling12

Months

(7.0%)

(7.0%)

FY2017

20.0%

13.4%

Last 3Years*

0.2%

1.3%

FY2018

(8.9%)

(5.0%)

(8.2%)

(9.5%)

NAFA Islamic Active Allocation Plan-III

Performance Period

Shari'ah Compliant Funds Cash Equivalents Other including receivablesTotal Leverage

91.4%8.5%0.1%

100.0%Nil

31-Oct-1991.7%8.2%0.1%

100.0%Nil


Unit Price (31/10/2019): Rs. 101.9284


%



Total



Hassan Raza, CFA



The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 4,118,327/-If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs 1.1146/1.02%. For details investors are advised to read the Note 5 of the latest Financial Statements.


FY2019


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


Page 17

PER6.06.7

NIAAEF**KMI-30

PBV1.61.0

DY6.2%6.3%




Total


‘

Launch Date: September 30, 2016Fund Size: Rs. 205 millionType: Open Ended Shari'ah Compliant Fund of Funds Dealing Days: Daily – Monday to FridayDealing Time: (Mon - Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business daysPricing Mechanism: Forward PricingBack end Load: NilManagement Fee: 1) On invested amount in NBP funds, no additional fee. 2) Cash in Bank account: 1.25% p.a. 0.08% p.a of average net assets.Total Expense Ratio (%): 0.81% p.a (including 0.28% government levies)Risk Profile: Low to moderateListing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: A. F. Ferguson & Co. Chartered AccountantsBenchmark: Daily weighted return of KMI-30 Index & 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP, based on Fund's actual allocation (which is combination of benchmarks of underlying schemes)Fund Manager: Sajjad Anwar, CFAAsset Manager Rating: AM1 by PACRA (Very High Quality)


NBP Funds launched its NAFA Islamic Active Allocation Plan-IV (NIAAP-IV) in September, 2016 which is the fourth plan under NAFA Islamic Active Allocation Fund-I. The Active Allocation Plan is dynamically managed between dedicated equity related and income schemes managed by NBP Funds based on the Fund Manager’s outlook of the authorized asset-classes. The Plan is presently closed for new subscription. NIAAP-IV has an initial maturity of two years.

Since inception, unit price of NIAAP-IV has decreased by 1.4% p.a versus the Benchmark decline of 0.5% p.a. The current exposure in Income Fund and Equity Fund stands at 18.2% & 74.1%, respectively. The Plan can invest up to 100% in equity funds. We are confident that the Plan will generate good returns considering the improved macroeconomic and political outlook and dynamic equity allocation mechanism of the Fund.

October 2019

Since Launch*September 30, 2016

(1.4%)

(0.5%)

Oct2019

6.0%

6.9%

FYTD2020

4.2%

5.1%

Rolling12

Months

(7.2%)

(6.8%)

(9.3%)

(10.3%)

NAFA Islamic Active Allocation Plan-IV

Performance Period


92.3%7.5%0.2%

100.0%Nil

31-Oct-19

92.3%7.2%0.5%

100.0%Nil


Unit Price (31/10/2019): Rs. 92.1870


%



Hassan Raza, CFA


The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 1,899,328/-If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs 0.8523/0.86%. For details investors are advised to read the Note 5 of the Financial Statements.


FY2019

(9.6%)

(5.9%)

FY 2018



74.1%

18.2%

92.3%

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


Page 18

[Returns are net of management fee & all other expenses]

PER6.06.7

NIAAEF**KMI-30

PBV1.61.0

DY6.2%6.3%


* Annualized Return All Other returns are Cumulative

‘

Launch Date: January 12, 2017 Fund Size: Rs. 287 million Type: Open Ended Shari'ah Compliant Fund of Funds Dealing Days: Daily – Monday to FridayDealing Time: (Mon - Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business days Pricing Mechanism: Forward Pricing Back end Load: Nil Management Fee: 1) On invested amount in NBP funds, no additional fee. 2) Cash in Bank account: 1.25% p.a. 0.09% p.a of average net assets.Total Expense Ratio (%): 0.63% p.a (including 0.20% government levies) Risk Profile: Low to moderate Listing: Pakistan Stock Exchange Custodian & Trustee: Central Depository Company (CDC)Auditors: A. F. Ferguson & Co. Chartered AccountantsBenchmark: Daily weighted return of KMI-30 Index & 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP, based on Fund's actual allocation (which is combination of benchmarks of underlying schemes)Fund Manager: Sajjad Anwar, CFA Asset Manager Rating: AM1 by PACRA (Very High Quality)


NBP Funds launched its NAFA Islamic Active Allocation Plan-V (NIAAP-V) in January, 2017 which is the fifth plan under NAFA Islamic Active Allocation Fund-I. The Active Allocation Plan is dynamically managed between dedicated equity related and income schemes managed by NBP Funds based on the Fund Manager’s outlook of the authorized asset-classes. The Plan is presently closed for new subscription. NIAAP-V has an initial maturity of two years.

Since inception, unit price of NIAAP-V has decreased by 5.9% p.a versus the Benchmark decline of 5.8% p.a. The current exposure in Income Fund and Equity Fund stands at 16.6% & 74.7%, respectively. The Plan can invest up to 100% in equity funds. We are confident that the Plan will generate good returns considering the improved macroeconomic and political outlook and dynamic equity allocation mechanism of the Fund.

October 2019

Oct2019

6.1%

6.9%

FYTD2020

4.0%

5.0%

Rolling12

Months

(7.5%)

(7.2%)

FY2019

(9.5%)

(10.9%)

FY2018

(9.1%)

(4.9%)


(5.9%)

(5.8%)

NAFA Islamic Active Allocation Plan-V

Performance Period


91.3%8.6%0.1%

100.0%Nil

31-Oct-19

92.9%6.7%0.4%

100.0%Nil


Unit Price (31/10/2019): Rs. 84.3847


%



Total

74.7%

16.6%

91.3%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.

The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 159,855/-If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs 0.0469/0.05%. For details investors are advised to read the Note 5 of the Financial Statements.

Sindh Workers' Welfare Fund (SWWF) Dr. Amjad Waheed, CFASajjad Anwar, CFA


Hassan Raza, CFA


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


Page 19


PER6.06.7

NIAAEF**KMI-30

PBV1.61.0

DY6.2%6.3%



‘

Launch Date: May 26, 2017 Fund Size: Rs. 191 million Type: Open Ended Shari'ah Compliant Fund of Funds Dealing Days: Daily – Monday to FridayDealing Time: (Mon - Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business days Pricing Mechanism: Forward Pricing Back end Load: Nil Management Fee: 1) On invested amount in NBP funds, no additional fee. 2) Cash in Bank account: 1.25% p.a. 0.09 % p.a of average net assets.Total Expense Ratio (%): 0.69% p.a (including 0.25% government levies) Risk Profile: Low to moderate Listing: Pakistan Stock Exchange Custodian & Trustee: Central Depository Company (CDC)Auditors: KPMG Taseer Hadi & Co. Chartered AccountantsBenchmark: Daily weighted return of KMI-30 Index & 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP, based on Fund's actual allocation (which is combination of benchmarks of underlying schemes)Fund Manager: Sajjad Anwar, CFA Asset Manager Rating: AM1 by PACRA (Very High Quality)


NBP Funds launched its NAFA Islamic Active Allocation Plan-VI (NIAAP-VI) in May, 2017 which is the first plan under NAFA Islamic Active Allocation Fund-II. The Active Allocation Plan is dynamically managed between dedicated equity related and income schemes managed by NBP Funds based on the Fund Manager’s outlook of the authorized asset-classes. The Plan is presently closed for new subscription. NIAAP-VI has an initial maturity of two years.

Since inception, unit price of NIAAP-VI has decreased by 7.7% p.a versus the Benchmark decline of 7.1% p.a. The current exposure in Income Fund and Equity Fund stands at 17.0% & 75.1%, respectively. The Plan can invest up to 100% in equity funds. We are confident that the Plan will generate good returns considering the improved macroeconomic and political outlook and dynamic equity allocation mechanism of the Fund.

October 2019

Oct2019

6.0%

6.9%

FYTD2020

4.1%

5.0%

FY2019

(9.1%)

(10.7%)

FY2018

(7.8%)

(3.8%)

Rolling12

Months

(7.1%)

(7.0%)

Since Launch*May 26, 2017

(7.7%)

(7.1%)

NAFA Islamic Active Allocation Plan-VI

Performance Period


92.1%7.8%0.1%

100.0%Nil

31-Oct-19

92.7%7.2%0.1%

100.0%Nil


Unit Price (31/10/2019): Rs. 82.3188


%




Total

75.1%

17.0%

92.1%



Hassan Raza, CFA


The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 131,252/-If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs 0.0566/0.06%. For details investors are advised to read the Note 5 of the Financial Statements.


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


Page 20


PER6.06.7

NIAAEF**KMI-30

PBV1.61.0

DY6.2%6.3%



‘

Launch Date: June 29, 2017 Fund Size: Rs. 44 million Type: Open Ended Shari'ah Compliant Fund of FundsDealing Days: Daily – Monday to Friday Dealing Time: (Mon - Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business days Pricing Mechanism: Forward Pricing Back end Load: Nil Management Fee: 1) On invested amount in NBP funds, no additional fee. 2) Cash in Bank account: 1.25% p.a. 0.09% p.a of average net assets.Total Expense Ratio (%): 0.83% p.a (including 0.04% government levies) Risk Profile: Low to moderate Listing: Pakistan Stock Exchange Custodian & Trustee: Central Depository Company (CDC) Auditors: KPMG Taseer Hadi & Co. Chartered Accountants Benchmark: Daily weighted return of KMI-30 Index & 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP, based on Fund's actual allocation (which is combination of benchmarks of underlying schemes) Fund Manager: Sajjad Anwar, CFA Asset Manager Rating: AM1 by PACRA (Very High Quality)


NBP Funds launched its NAFA Islamic Active Allocation Plan-VII (NIAAP-VII) in June, 2017 which is the second plan under NAFA Islamic Active Allocation Fund-II. The Active Allocation Plan is dynamically managed between dedicated equity related and income schemes managed by NBP Funds based on the Fund Manager’s outlook of the authorized asset-classes. The Plan is presently closed for new subscription. NIAAP-VII has an initial maturity of two years.

Since inception, unit price of NIAAP-VII has decreased by 6.4% p.a versus the Benchmark decline of 5.4% p.a. The current exposure in Income Fund and Equity Fund stands at 45.9% & 49.1%, respectively. The Plan can invest up to 100% in equity funds. We are confident that the Plan will generate good returns considering the improved macroeconomic and political outlook and dynamic equity allocation mechanism of the Fund.

October 2019

Oct2019

4.1%

4.5%

FYTD2020

1.0%

2.1%

FY2019

(9.3%)

(10.8%)

FY2018

(6.5%)

(3.0%)

Rolling12

Months

(9.9%)

(9.6%)


(6.4%)

(5.4%)

NAFA Islamic Active Allocation Plan-VII

Performance Period


95.0%2.6%2.4%

100.0%Nil

31-Oct-19

92.0%7.9%0.1%

100.0%Nil


Unit Price (31/10/2019): Rs. 85.6298


%



Hassan Raza, CFA





Total

49.1%

45.9%

95.0%

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


Page 21


PER6.06.7

NIAAEF**KMI-30

PBV1.61.0

DY6.2%6.3%

NAFA Active Allocation Riba Free Savings Fund(Formerly: NAFA Active Allocation Riba Free Savings Fund)

Total

92.6%

92.6%



‘

Launch Date: November 3, 2017 Fund Size: Rs. 199 million Type: Open Ended Shari'ah Compliant Fund of FundsDealing Days: Daily – Monday to Friday Dealing Time: (Mon - Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business days Pricing Mechanism: Forward Pricing Back end Load: Nil Management Fee: 1) On invested amount in NBP funds, no additional fee. 2) Cash in Bank account: 1.25% p.a. 0.08% p.a of average net assets.Total Expense Ratio (%): 0.64% (including 0.25% government levies) Risk Profile: Low to moderate Listing: Pakistan Stock Exchange Custodian & Trustee: Central Depository Company (CDC) Auditors: KPMG Taseer Hadi & Co. Chartered Accountants Benchmark: Daily weighted return of KMI-30 Index & 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP, based on Fund's actual allocation (which is combination of benchmarks of underlying schemes) Fund Manager: Sajjad Anwar, CFA Asset Manager Rating: AM1 by PACRA (Very High Quality)


NBP Funds launched its NAFA Islamic Active Allocation Plan-VIII (NIAAP-VIII) in November, 2017 which is the third plan under NAFA Islamic Active Allocation Fund-II. The Active Allocation Plan is dynamically managed between dedicated equity related and income schemes managed by NBP Funds based on the Fund Manager’s outlook of the authorized asset-classes. The Plan is presently closed for new subscription. NIAAP-VIII has an initial maturity of two years.

Since inception, unit price of NIAAP-VIII has decreased by 0.2% p.a versus the Benchmark decline of 0.9% p.a. The current exposure in Income Fund stands at 92.6%. The Plan can invest up to 100% in equity funds. We are confident that the Plan will generate good returns considering the improved macroeconomic and political outlook and dynamic equity allocation mechanism of the Fund.

October 2019

Oct2019

0.9%

0.5%

FYTD2020

3.5%

1.9%

Rolling12

Months

(2.5%)

(4.1%)

FY2019

(4.1%)

(5.2%)

Since Launch*November 03, 2017

(0.2%)

(0.9%)

NAFA Islamic Active Allocation Plan-VIII

Performance Period


92.6%7.3%0.1%

100.0%Nil

31-Oct-1994.5%5.4%0.1%

100.0%Nil


Unit Price (31/10/2019): Rs. 99.5292


%



Hassan Raza, CFA


The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 273,390/-If the same were not made the NAV per unit/ since inception return of scheme would be higher by Rs 0.137/0.13%. For details investors are advised to read the Note 5 of the latest Financial Statements.



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


Page 22

PER6.06.7

NIAAEF**KMI-30

PBV1.61.0

DY6.2%6.3%

NBP Islamic Money Market Fund(Formerly: NAFA Islamic Money Market Fund)

NBP Islamic Active Allocation Equity Fund(Formerly: NAFA Islamic Money Market Fund)

Total

64.8%

27.8%

92.6%



‘

Launch Date: February 28, 2018Fund Size: Rs. 418 millionType: Open Ended Shari'ah Compliant Fund of Funds - CPPIDealing Days: Daily – Monday to FridayDealing Time: (Mon-Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business daysPricing Mechanism: Forward PricingBack end Load: NilManagement Fee: 1) On invested amount in NBP funds, no additional fee. 2) Cash in Bank account: 1.0% p.a. 0.05% p.a of average net assets.Total Expense Ratio (%): 0.67% (including 0.29% government levies)Risk Profile: Low Listing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: KPMG Taseer Hadi & Co. Chartered Accountants Benchmark: Daily Weighted Return of KMI-30 Index and 3-months average deposit rate of three AA rated Islamic Banks or Islamic windows of Conventional Banks as selected by MUFAP, on the basis of actual investment by the Plan in equity and money market schemes.Fund Manager: Sajjad Anwar, CFA Asset Manager Rating: AM1 by PACRA (Very High Quality)

The objective of NAFA Islamic Capital Preservation Plan-I is to earn a potentially high return through dynamic asset allocation between Shari'ah Compliant Dedicated Equity and Money Market based Collective Investment Schemes, while providing Capital Preservation of the Initial Investment Value including sales load at completion of twenty four months and beyond.

NBP Funds launched its NAFA Islamic Capital Preservation Plan-I (NICPP-I) in February, 2018 which is the fourth plan under NAFA Islamic Active Allocation Fund-II. The Plan is dynamically allocated between the Equity Component and Money Market Component by using the Constant Proportion Portfolio Insurance (CPPI) Methodology. Allocation to Equity Component is generally increased when equity market is rising, while allocation to the Money Market Component is generally increased when the equity market declines. The Plan is presently closed for new subscription. NICPP-I has an initial maturity of two years.

Since inception, unit price of NICPP-I has increased by 4.3% p.a versus the Benchmark return of 1.9% p.a. The current exposure in Money Market Fund and Equity Fund stands at 64.8% & 27.8%, respectively. During the month, maximum multiplier stood at 4.5 whereas minimum multiplier was 3.5.

October 2019

Oct2019

2.6%

2.7%

FYTD2020

5.0%

3.9%

Rolling12

Months

4.5%

1.3%

FY2019

1.8%

(0.9%)

Since Launch*February 28, 2018

4.3%

1.9%

NAFA Islamic Capital Preservation Plan-I

Performance Period


92.6%7.2%0.2%

100.0%Nil

31-Oct-19

96.3%3.5%0.2%

100.0%Nil


Unit Price (31/10/2019): Rs. 105.2065

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 Documents to understand the investment policies and the risks involved. Capital preservation only applies to unit holders who hold their investments until initial maturity of two years.

%



Hassan Raza, CFA


The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 1,241,609/-If the same were not made the NAV per unit/ since inception return of scheme would be higher by Rs 0.3124/0.31%. For details investors are advised to read the Note 5 of the latest Financial Statements.




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


Page 23




‘

Launch Date: April 27, 2018Fund Size: Rs. 276 millionType: Open Ended Shari'ah Compliant Fund of Funds - CPPIDealing Days: Daily – Monday to FridayDealing Time: (Mon-Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business daysPricing Mechanism: Forward PricingBack end Load: NilManagement Fee: 1) On invested amount in NBP funds, no additional fee. 2) Cash in Bank account: 1.00% p.a. 0.84% p.a of average net assets.Total Expense Ratio (%): 1.57% (including 0.37% government levies)Risk Profile: Low Listing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: KPMG Taseer Hadi & Co. Chartered Accountants Benchmark: Daily Weighted Return of KMI-30 Index and 3-months average deposit rate of three AA rated Islamic Banks or Islamic windows of Conventional Banks as selected by MUFAP, on the basis of actual investment by the Plan in equity and money market schemes.Fund Manager: Sajjad Anwar, CFA Asset Manager Rating: AM1 by PACRA (Very High Quality)

NBP Funds launched its NAFA Islamic Capital Preservation Plan-II (NICPP-II) in April, 2018 which is the fifth plan under NAFA Islamic Active Allocation Fund-II. The Plan is dynamically allocated between the Equity Component and Money Market Component by using the Constant Proportion Portfolio Insurance (CPPI) Methodology. Allocation to Equity Component is generally increased when equity market is rising, while allocation to the Money Market Component is generally increased when the equity market declines. The Plan is presently closed for new subscription. NICPP-II has an initial maturity of two years.

Since inception, unit price of NICPP-II has increased by 3.3% p.a versus the Benchmark return of 0.5% p.a. The current exposure in Equity Fund stands at 24.9%. During the month, maximum multiplier stood at 4.2 whereas minimum multiplier was 3.2.

October 2019


24.9%72.7%2.4%

100.0%Nil

31-Oct-19

18.2%79.2%2.6%

100.0%Nil


Unit Price (31/10/2019): Rs. 104.3922


Oct2019

2.5%

2.4%

FYTD2020

4.3%

3.1%

Rolling12

Months

1.9%

(1.2%)

FY2019

0.1%

(2.5%)

Since Launch*April 27, 2018

3.3%

0.5%

NAFA Islamic Capital Preservation Plan-II

Performance Period

%




Hassan Raza, CFA

The objective of NAFA Islamic Capital Preservation Plan-II is to earn a potentially high return through dynamic asset allocation between Shari'ah Compliant Dedicated Equity and Money Market based Collective Investment Schemes, while providing Capital Preservation of the Initial Investment Value including sales load at completion of twenty four months and beyond.

PER6.06.7

NIAAEF**KMI-30** Based on NBP Funds estimates

PBV1.61.0

DY6.2%6.3%


Total

24.9%

24.9%



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


Page 24





‘

Launch Date: June 22, 2018Fund Size: Rs. 292 millionType: Open Ended Shari'ah Compliant Fund of Funds - CPPIDealing Days: Daily – Monday to FridayDealing Time: (Mon-Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business daysPricing Mechanism Forward PricingBack end Load: NilManagement Fee: 1) On invested amount in NBP funds, no additional fee. 2) Cash in Bank account: 1.00% p.a. 0.82% p.a of average net assets.Total Expense Ratio (%) 1.87%(including 0.33% government levies)Risk Profile Low Listing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: KPMG Taseer Hadi & Co. Chartered Accountants Benchmark: Daily Weighted Return of KMI-30 Index and 3-months average deposit rate of three AA rated Islamic Banks or Islamic windows of Conventional Banks as selected by MUFAP, on the basis of actual investment by the Plan in equity and money market schemes.Fund Manager: Sajjad Anwar, CFA Asset Manager Rating: AM1 by PACRA (Very High Quality)

NBP Funds launched its NAFA Islamic Capital Preservation Plan-III (NICPP-III) in June, 2018 which is the first plan under NAFA Islamic Active Allocation Fund-III. The Plan is dynamically allocated between the Equity Component and Money Market Component by using the Constant Proportion Portfolio Insurance (CPPI) Methodology. Allocation to Equity Component is generally increased when equity market is rising, while allocation to the Money Market Component is generally increased when the equity market declines. The Plan is presently closed for new subscription. NICPP-III has an initial maturity of two years.

Since inception, unit price of NICPP-III has increased by 2.9% p.a. versus the Benchmark return of 0.2% p.a. The current exposure in Equity Fund stands at 27.1%. During the month, maximum multiplier stood at 3.6 whereas minimum multiplier was 3.1.

October 2019


2.9%

0.2%

Oct2019

Rolling12

Months

2.5%

2.6%

FYTD2020

3.9%

2.7%

FY2019

(0.03%)

(2.5%)

1.6%

(1.4%)

NAFA Islamic Capital Preservation Plan-III

Performance Period


27.1%70.8%2.1%

100.0%Nil

31-Oct-19

19.3%79.4%1.3%

100.0%Nil


Unit Price (31/10/2019): Rs. 102.7585


%



Hassan Raza, CFA

The objective of NAFA Islamic Capital Preservation Plan-III is to earn a potentially high return through dynamic asset allocation between Shari'ah Compliant Dedicated Equity and Money Market based Collective Investment Schemes, while providing Capital Preservation of the Initial Investment Value including sales load at completion of twenty four months and beyond.




Total

27.1%

27.1%

PER6.06.7


PBV1.61.0

DY6.2%6.3%

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


Page 25



‘

Launch Date: September 14, 2018Fund Size: Rs. 173 millionType: Open Ended Shari'ah Compliant Fund of Funds - CPPIDealing Days: Daily – Monday to FridayDealing Time: (Mon-Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business daysPricing Mechanism Forward PricingBack end Load: NilManagement Fee: 1) On invested amount in NBP funds, no additional fee. 2) Cash in Bank account: 1.00% p.a. 0.76 % p.a of average net assets.Total Expense Ratio (%) 1.78%(including 0.29% government levies) Risk Profile Low Listing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: KPMG Taseer Hadi & Co. Chartered Accountants Benchmark: Daily Weighted Return of KMI-30 Index and 3-months average deposit rate of three AA rated Islamic Banks or Islamic windows of Conventional Banks as selected by MUFAP, on the basis of actual investment by the Plan in equity and money market schemes.Fund Manager: Sajjad Anwar, CFA Asset Manager Rating: AM1 by PACRA (Very High Quality)

NBP Funds launched its NAFA Islamic Capital Preservation Plan-IV (NICPP-IV) in September, 2018 which is the second plan under NAFA Islamic Active Allocation Fund-III. The Plan is dynamically allocated between the Equity Component and Money Market Component by using the Constant Proportion Portfolio Insurance (CPPI) Methodology. Allocation to Equity Component is generally increased when equity market is rising, while allocation to the Money Market Component is generally increased when the equity market declines. The Plan is presently closed for new subscription. NICPP-IV has an initial maturity of two years.

Since inception, unit price of NICPP-IV has increased by 2.2% p.a versus the Benchmark return of 0.3% pa. The current exposure in Equity Fund stands at 28.9%. During the month, maximum multiplier stood at 3.6 whereas minimum multiplier was 3.1.

October 2019

Since Launch*September 14, 2018

2.2%

0.3%

Oct2019

2.8%

2.9%

FYTD2020

3.8%

3.2%

Rolling12 Months

1.3%

(0.9%)

NAFA Islamic Capital Preservation Plan-IV

Performance Period

Unit Price (31/10/2019): Rs. 102.5084


%


28.9%70.0%1.1%

100.0%Nil

31-Oct-19

25.0%73.9%1.1%

100.0%Nil




Hassan Raza, CFA

The objective of NAFA Islamic Capital Preservation Plan-IV is to earn a potentially high return through dynamic asset allocation between Shari'ah Compliant Dedicated Equity and Money Market based Collective Investment Schemes, while providing Capital Preservation of the Initial Investment Value including sales load at completion of twenty four months and beyond.






Total

28.9%

28.9%

PER6.06.7


PBV1.61.0

DY6.2%6.3%

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


Page 26



Total

36.6%

36.6%





Hassan Raza, CFA

{Returns are net of management fee & all other expenses}* Cumulative Returns

‘

Launch Date: December 17, 2018Fund Size: Rs. 110 millionType: Open Ended Shari'ah Compliant Fund of Funds - CPPIDealing Days: Daily – Monday to FridayDealing Time: (Mon-Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business daysPricing Mechanism Forward PricingBack end Load: NilManagement Fee: 1) On invested amount in NBP funds, no additional fee. 2) Cash in Bank account: 1.00% p.a. 0.74% p.a of average net assets.Total Expense Ratio (%) 1.98%(including 0.34% government levies) Risk Profile Low Listing: Pakistan Stock ExchangeCustodian & Trustee: Central Depository Company (CDC)Auditors: KPMG Taseer Hadi & Co. Chartered Accountants Benchmark: Daily Weighted Return of KMI-30 Index and 3-months average deposit rate of three AA rated Islamic Banks or Islamic windows of Conventional Banks as selected by MUFAP, on the basis of actual investment by the Plan in equity and money market schemes.Fund Manager: Sajjad Anwar, CFA Asset Manager Rating: AM1 by PACRA (Very High Quality)

NBP Funds launched its NBP Islamic Capital Preservation Plan-V (NICPP-V) in December, 2018 which is the third plan under NAFA Islamic Active Allocation Fund-III. The Plan is dynamically allocated between the Equity Component and Money Market Component by using the Constant Proportion Portfolio Insurance (CPPI) Methodology. Allocation to Equity Component is generally increased when equity market is rising, while allocation to the Money Market Component is generally increased when the equity market declines. The Plan is presently closed for new subscription. NICPP-V has an initial maturity of two years.

Since inception, unit price of NICPP-V has increased by 2.1% whereas the Benchmark increased by 0.3%. The current exposure in Equity Fund stands at 36.6%. During the month, maximum multiplier stood at 3.6 whereas minimum multiplier was 2.7.

October 2019

Since Launch*December 17, 2018

2.1%

0.3%

Oct2019

2.9%

3.2%

FYTD2020

4.0%

3.5%

Rolling6 Months

3.2%

2.3%

NBP Islamic Capital Preservation Plan-V

Performance Period

Unit Price (31/10/2019): Rs. 102.1390


%

Shari'ah Compliant FundCash Equivalents Others including receivables Total Leverage

36.6%61.1%2.3%

100.0%Nil

31-Oct-1925.4%73.1%

1.5%100.0%

Nil


The objective of NBP Islamic Capital Preservation Plan-V is to earn a potentially high return through dynamic asset allocation between Shari'ah Compliant Dedicated Equity and Money Market based Collective Investment Schemes, while providing Capital Preservation of the Initial Investment Value including sales load at completion of twenty four months and beyond.


PER6.06.7


PBV1.61.0

DY6.2%6.3%

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


Page 27


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

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

Launch Date: January 18, 2016Fund Size: Rs. 458 millionFund Size (excludinginvestment by Fund of Funds) Nil Type: Open-end – Shari'ah 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: 0%; Back end: 0%Management Fee: 9% of Net Income (min: 0.5% p.a., max: 1.25% p.a.) w.e.f 12-July-19. 1.07% p.a. of average net assets.Total Expense Ratio: 2.47% p.a. (including 0.38% government levies)Selling & Marketing expenses: 0.7% p.a.Risk Profile: LowFund stability rating "A-(f)" by PACRACustodian & 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 Rs. 10,000/-Asset Manager Rating: AM1 by PACRA (Very High Quality)

To earn a reasonable rate of return along with a high degree of liquidity by investing in short-term Shari’ah Compliant bank deposits and money market/debt securities.

During the month, the Fund generated an annualized return of 11.3% p.a. against the Benchmark return of 6.3% p.a., thus registering an outperformance of 5% p.a. The performance is net of management fee and all other expenses.

The Fund aims to consistently generate 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 Shari'ah Compliant Government Securities of maturity up to 3 years as well as Shari'ah Compliant money market and debt securities of up to 2 years maturity rated AA- or better.

Around 74% 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 time-to-maturity of the Fund is 20 days.


October 2019


Oct2019

11.3%

6.3%

Rolling12

Months

9.3%

4.8%

FYTD2020

10.5%

5.9%

FY2019

7.6%

3.7%

3.8%

3.1%

5.6%

3.5%

NBP Active Allocation Riba Free Savings FundFormerly; NAFA Active Allocation Riba Free Savings Fund (NAARFSF)

Performance Period

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

72.7%14.8%11.1%1.4%

100.0%Nil

31-Oct-1974.0%14.7%9.7%1.6%

100.0%Nil


Unit Price (31/10/2019): Rs. 10.3795





AAAAAA+A-Others including receivablesTotal

43.0%11.3%21.3%23.0%1.4%

100.0%

** effective from September 01, 2016; Previously Average of 6-Month deposit rates (A- & above rated Islamic banks)

Note: Amount invested by fund of funds is Rs. 458 million

The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 4,941,353/-. If the same were not made the NAV per unit/last one year return of scheme would be higher by Rs. 0.1120/1.18%. For details investors are advised to read note 5 of the latest financial statements of the Scheme.


FY2017

5.9%

3.3%

Last 3years*

4.1%

2.4%

FY2018

%


NBP Islamic Active Allocation Equity Fund (NIAAEF)Formerly; NAFA Islamic Active Allocation Equity Fund (NIAAEF) Islamic Savings


Page 28

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.




Pak Petroleum Ltd

Meezan Bank Ltd




Lucky Cement Ltd


Engro Polymer & Chemical Ltd

6.8%

6.3%

4.5%

4.5%

3.4%

10.6%

10.5%

8.8%

7.5%

6.9%

% of TotalAssets

% of TotalAssets

PER6.06.7

NIAAEFKMI-30

PBV1.61.0

DY6.2%6.3%

Note: Amount invested by fund of funds is Rs 1,281 million.



‘

Launch Date: January 18, 2016Fund Size: Rs. 1,281 millionFund Size: (Excludinginvestment by fund of funds) NilType: Open Ended Shari'ah Compliant Equity SchemeDealing Days: Daily – Monday to FridayDealing Time: (Mon - Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.MSettlement: 2-3 business daysPricing Mechanism: Forward PricingLoad: Front end-0% Back end-0%Management Fee: 1.5% per annum w.e.f 12-Jul-19Risk Profile: HighTotal Expense Ratio (%) 3.82% p.a. (including 0.46% government levies)Selling & Marketing Expenses: 1.15% per annumCustodian & Trustee: Central Depository Company (CDC)Auditors: A. F. Ferguson & Co. Chartered AccountantsBenchmark: KMI-30 IndexFund Manager: Taha Khan Javed, CFAAsset Manager Rating: AM1 by PACRA (Very High Quality)

The objective of the Fund is to provide investors with long term capital growth from an actively managed portfolio of Shari’ah Compliant listed equities.

NBP Funds launched its second open-end Islamic Equity Fund namely NBP Islamic Active Allocation Equity Fund (NIAAEF) in January, 2016. The aim of the Fund is to provide growth to the investment of unit holders over the long-term in approved Shari'ah Compliant equities. NIAAEF started off the month with an allocation of around 89% in equities which increased to around 92% towards the end of the month. NIAAEF underperformed the Benchmark in October as the Fund was underweight in select Fertilizer, Transport, Pharmaceuticals, and Oil & Gas Marketing Companies sectors stocks which outperformed the market and overweight in select Power Generation & Distribution Companies sector stock which underperformed the market. During the month, the allocation was increased primarily in Commercial Banks, Cement, Pharmaceuticals, and Chemicals sectors, whereas it was reduced primarily in Oil & Gas Exploration Companies, Fertilizer, and Textile Composite sectors.

October 2019


2.2%

1.8%

Oct2019

Rolling12

Months

(21.2%)

(22.2%)

8.1%

9.2%

FYTD2020

2.1%

3.2%

FY2017

30.1%

18.8%

Last 3years*

(5.6%)

(5.7%)

FY2018

(14.1%)

(9.6%)

FY2019

(19.9%)

(23.8%)

NBP Islamic Active Allocation Equity FundFormerly; NAFA Islamic Active Allocation Equity Fund (NIAAEF)

Performance Period


91.6%6.6%1.8%

100.0%Nil

31-Oct-1988.9%8.6%2.5%

100.0%Nil


Unit Price (31/10/2019) Rs. 9.2737



%


Oil & Gas Exploration CompaniesFertilizerCementCommercial BanksPower Generation & DistributionOthers

30.1%17.5%7.8%7.5%7.5%

21.2%

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

The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 29,808,862/-If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs 0.2159/1.83%. For details investors are advised to read the Note 5 of the Financial Statements of the scheme.

