National Bank Of Pakistan: Fund Manager Report of Shariah Compliant Schemes - March 2017

Transcription

1. Fund Manager Report of Shariah Compliant Schemes March 2017 * AUM as at Mar 31, 2017
2. Table of Contents Pg . 01 CEO’s Write-up Pg. 02 Capital Market Review Pg. 03 NAFA Riba Free Savings Fund Pg. 04 NAFA Islamic Income Fund (Formerly; NAFA Islamic Aggressive Income Fund) Pg. 05 NAFA Islamic Asset Allocation Fund Pg. 06 NAFA Islamic Stock Fund Pg. 07 NAFA Islamic Pension Fund Pg. 08 NAFA Islamic Principal Protected Fund-I (NIPPF-I) Pg. 09 NAFA Islamic Principal Protected Fund-II (NIPPF-II) Pg. 10 NAFA Islamic Principal Preservation Fund (NIPPF) Pg. 11 NAFA Islamic Active Allocation Plan-I (NIAAP-I) Pg. 12 NAFA Islamic Active Allocation Plan-II (NIAAP-II) Pg. 13 NAFA Islamic Active Allocation Plan-III (NIAAP-III) Pg. 14 NAFA Islamic Active Allocation Plan-IV (NIAAP-IV) Pg. 15 NAFA Islamic Active Allocation Plan-V (NIAAP-V) Pg. 16 NAFA Active Allocation Riba Free Savings Fund Pg. 17 NAFA Islamic Active Allocation Equity Fund Pg. 18 NAFA Islamic Energy Fund Pg. 19 Table of Contents Performance Summary of NAFA’s Shariah Compliant Funds
3. Performance Summary of NAFA ’s Shariah Compliant Funds Capital Markets Review “March 2017” NAFA Islamic Mutual Funds - Collective Investment Schemes (CISs) Fund Name Fund Size Stability Inception March 2017 (Rs. In Crore) Rating Date FYTD Lowest Risk NRFSF 182 A (f) NIAIF (Formerly; NAFA Islamic Aggressive Income Fund) Risk Profile Moderate Risk NIAAF NISF Since Inception 5.5% 7.4% 7.8% 8.7% 10.8% 8.1% 2.8% 3.3% 3.7% 4.9% 6.7% 6.7% 7.3% 8.3% 6.6% 308 A- (f) 4.4% 5.3% 5.7% 7.4% 9.2% 13.6% 6.8% 19.0% 6.7% 3.5% 4.3% 4.4% 4.8% 6.6% 7.9% 6.3% 26-Oct-07 6.5% 7.0% Annualized Return Cumulative Returns 1,356 26-Oct-07 Benchmark High Risk FY 2012 5.9% Equity Related Islamic Funds NAFA Islamic Stock Fund FY FY 2014 2013 6.0% Benchmark NAFA Islamic Asset Allocation Fund FY 2015 20-Aug-10 4.4% Benchmark NAFA Islamic Income Fund FY 2016 Annualized Returns Islamic Income Funds NAFA Riba Free Savings Fund Rolling 12 Months 709 09-Jan-15 Benchmark 0.2% 21.9% 31.5% 13.1% 33.8% 22.2% 36.3% 13.2% 17.3% (1.1%) 14.5% 20.6% 9.2% 12.1% 17.7% 28.9% 11.1% 12.0% 1.2% 36.4% 49.3% 12.9% n/a n/a n/a n/a 27.4% (2.1%) 23.7% 40.5% 15.5% n/a n/a n/a n/a 22.1% NAFA ISLAMIC PENSION FUND (NIPF) - Voluntary Pension Scheme (VPS) Annualized Returns NIPF - Money Market Sub-fund 20 02-Jul-13 2.9% 3.9% 3.9% 3.9% 6.2% n/a n/a n/a 5.5% NIPF - Debt Sub-fund 30 02-Jul-13 1.2% 3.8% 3.6% 3.8% 5.6% n/a n/a n/a 5.4% Annualized Return Cumulative Returns NIPF - Equity Sub-fund 86 02-Jul-13 1.1% 36.3% 51.6% 16.9% 51.5% n/a n/a n/a 37.4% High Risk Risk Profile Low Risk Fund Name Notes: 1) Performance is net of management fee and all expenses. The calculation of performance does not include cost of front-end load. For mutual funds the performance reported is based on dividend reinvestment (gross of with-holding tax where applicable). 2) Tax credit also available as per section 62 & 63 of the Income Tax Ordinance, 2001. 3) Taxes apply. n/a = Not applicable. Asset Manager Rating: AM2++ by PACRA (High Investment Management Standards) Disclaimer: This publication is for informational purpose only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell the fund. All investments in mutual funds and pension funds are subject to market risks. Past Performance is not necessarily indicative of future results. Please read the Offering Document to understand investment policies and the risks involved. Page 01
4. The Real Size of Pakistan Economy ? While talking of potential size of Pakistan’s economy, most people especially foreigners don’t realize that the GDP of our economy is much larger than the official figure of USD285bn. This is because the official data does not capture the contribution of informal economy, which as per different estimates varies between 30% to as high as 90% of the official GDP. Taking a guestimate of 50% contribution coming from informal economy, the actual GDP of Pakistan economy is around USD428bn. Income generated by the informal economy is usually not recorded for taxation purposes, and is often unavailable for inclusion in GDP computations. Contribution of Key Sectors to GDP & Tax Collection Untaxed economy as a % of GDP 40% 60% GDP 50% 30% Tax 40% 20% 30% Source: Bloomberg, Asian Development Bank (ADB) US China Canada 10% India 0% Turkey 20% Pakistan 10% 0% Agriculture Manufacturing Services Source: Sustainable Development Policy Institute (SDPI) There are a large number of economic activities that fall outside the official reporting system and do not come under the tax net. Some of these activities are illegal, such as corruption, smuggling, and narcotics. Other activities are legal but are not reported to avoid taxes such as beauty parlors, hair salons, tyre shops, grocery stores, etc. This group as a whole comprises the underground or black economy. Among others, the key reasons for the incessant growth of the underground economy are abundant availability of bearer financial instruments such as foreign exchange bearer certificates, and prize bond schemes, etc, which are mostly exempt from tax obligations and reporting requirements. Onerous tax burden, punitive regulations & reporting requirements, along with heavy handedness of tax authorities has also contributed to the growth of the informal or parallel economy. Gross under reporting of property values, negligible tax collection of agriculture income, and no reporting or underreporting of income by businesses, add to the undocumented economy. The only exception is large corporate and also salaried class that is documented and taxed heavily. The underground economy causes large fiscal losses to the government due to loss of tax revenues, demand pressures on public services, inefficient allocation of resources, and distortion of incentive structure and the growth trajectory of the economy. This is also a key reason for high cost of doing business, which combined with discretion exercisable by the public officials, has restrained the private sector-led development strategy of the economy. About 50% of the labor force in Pakistan is working in the parallel economy based on some studies. GDP Motor cycles Refrigerator Local Cement Paints Beverages Cars Split AC Petrol On the positive side, the undocumented demand from Pakistan’s Three year average volumetric growth of 195 million people means the nation’s purchasing power is higher than the official per capita income of USD1560/annum, various domestic products versus GDP growth which is evident from the rise in consumer demand and 20.0% changing lifestyle in both larger and smaller cities. New shopping malls and restaurants are coming up in urban areas 15.0% along with new housing societies to cater to the rising middle class, urban population. To get an idea of the real purchasing 10.0% power, prices of newly built 500sq yard house in posh localities of Karachi and Islamabad has reached upto USD1mn, and 5.0% luxury apartment above USD0.5mn. Rise in consumerism is evident from double digit volumetric growth in Refrigerator, 0.0% Deep freezer, Beverage, Paints, Cement, Motorcycle, Automobile, Petrol sales during the last three years versus average 4.3% real GDP growth. Around 14% p.a. corporate earnings growth of the listed companies over the last 5 years also Source: PBS, Industry Sources corroborates with this view. Instead of isolated measures, a comprehensive policy framework is needed to reduce the size of the black economy, which entails economic liberalization, fiscal discipline, enhanced space for the private sector, tax reforms with a focus on tax cuts and broadening of tax base. Reforms to reduce corruption should be an essential element of this strategy. Sound and predictable legal system is absolutely necessary that penalizes the illegal activities and unfair practices, and fosters entrepreneurial activity. Strengthening and overhauling the governance system, property rights and enhancing the administrative capacity of the state are essential for reducing the size of the black economy, and unlocking the potential of the economy. 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. Page 02
5. Capital Market Review March 2017 Stock Market Review During the month , the stock market swung between gains and losses driven by lingering uncertainty on the Panama Leaks case verdict by the apex court, overshadowing all the positives and prompting the broader investors to remain on the sideline. Ongoing drive of SECP against the in-house badla financing by the brokers also weighed on the market activity and soured sentiments in the market. The recent fall in the global oil prices amid increasing doubts on the extension of agreed supply cut by OPEC and non-OPEC producers and sharp supply addition by the US Shale producers led the decline in the oil & gas sector. Fading trump rally in the global equities amid potential delays on the proposed fiscal stimulus also tempered the momentum on the local bourse. Foreign selling continued during the month with net outflow recorded at US $ 23 million. Mutual funds along with the Insurance sector and Companies remained net-buyers whereas, individual investors offloaded position by around US $32 million. We see the recent sell-off in equities in the face of unabated foreign selling, lingering Panama Leaks case verdict, and liquidity drain amid the apex regulator crackdown on the badla financing by the broker as buying opportunity in selected sectors for the patient investors. During the month, Automobile Assemblers, Chemicals, Engineering, Oil & Gas Marketing, Paper & Board, Refinery, and Transport sectors performed better than the market while, Fertilizer, Oil & Gas Exploration, Power Generation & Distribution sectors lagged behind. Healthy earnings announcements and improving future outlook amid strong volumetric growth and robust profit margins resulted in the out-performance of the Automobile & Assembler sector. Gas distribution companies led the upside of OMC sector amid improving earnings outlook. Investors accumulated position in Paper & Board sector on the back of better than expected corporate results by a select company and improving earnings outlook considering likely imposition of anti-dumping duty on imports. We attribute the abysmal performance of the Fertilizer sector to the weak global price outlook of urea amid supply glut. Owing to un-impressive earnings announcements and lower than expected payouts the Power Generation & Distribution sector failed to draw investors’ interest. Driven by renewed fall in the global oil prices, the Oil & Gas Exploration sector depicted subdued performance. Going forward, we still see substantial upside potential for equities driven by reasonable valuations as captured in forward P/E multiples of 10.4x; benign near-term inflation and interest rates; improving macro-economic outlook; buoyant business and consumer sentiment; and expectation of healthy foreign inflows from funds tracking MSCI EM Index. That said, we may see bouts of volatility amid domestic political fluidity and global policy uncertainty. Investors are advised to stay the course unfazed by the confusing headlines, keeping long-term objective in mind. Money Market Review Inflation as measured by CPI increased to 4.9% for March 2017 mainly due to spike in perishable food items as compared to 4.2% reading for February 2017. Barring any major supply side shock we see inflation to remain range bound in the near term. State Bank of Pakistan (SBP) in its bi-monthly Monetary Policy Statement maintained the policy rate at 5.75%. Overnight repo rate remained close to the policy rate due to improved interbank liquidity conditions. The external account remained under pressure due to stagnant exports, increasing imports, and tapering off remittances growth, resulting in drawdown in foreign exchange reserves that stood at USD 21.8 billion against USD 22.1 billion in February 2017. During the month of March, SBP held three T-Bill auctions with a combined target of Rs. 800 billion and a maturity of Rs. 713 billion. In the first T-Bill auction, Ministry of Finance (MoF) realized Rs. 397 billion against the target of Rs. 350 billion and maturity of Rs. 347 billion. Cut-off yields were maintained at 5.95% for the 3-month tenor and 5.99% for 6 month and 12 month tenors, respectively. The bid pattern skewed towards 03 month tenor. In the second T-Bill auction, an amount of Rs. 287 billion was accepted against the target of Rs. 350 billion and maturity of Rs. 309 billion wherein the cut-off yields were maintained for 03 month and 06 month tenors while, the bids worth Rs. 19 billion in 12 month tenor were rejected. The bid pattern remained tilted towards 03 month tenor. In the third T-Bill auction, Ministry of Finance (MoF) realized Rs. 162 billion against the target of Rs. 100 billion and maturity of Rs. 57 billion. The cut-off yields increased to 5.99% and 6.01% for 03 month and 06 month respectively while no bids were received in 12 months. The bid pattern skewed towards 06 months as compared to 03 months. Besides, in the PIB auction, Ministry of Finance (MoF) accepted Rs. 29 billion against the target and maturity of Rs. 50 billion at cut-off yields of 6.41%, 6.90% and 7.94% for 03 year, 05 year and 10 year tenors, respectively. Bids worth Rs. 161 million were received in 20 years but were rejected. We have adjusted the portfolio of our money market and income funds based on the capital market expectations and closely monitoring the developments in the capital markets and will rebalance the portfolio accordingly. Our Contacts Contact our Investment Consultant for free Investment advice Call 0800-20002 sms NAFA INVEST to 8080 www.nafafunds.com info@nafafunds.com 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. Page 03
6. Capital Review NAFAMarkets Riba Free Savings Fund (NRFSF) March 2017 Unit Price (31/03/2017): Rs. 10.6291 Performance % Performance Period Mar 2017 FYTD 2017 Trailing 12 months Apr 16 - Mar 17 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 Since Launch August 20, 2010* NAFA Riba Free Savings Fund 4.4% 6.0% 5.9% 5.5% 7.4% 7.8% 8.7% 10.8% 8.1% Benchmark* 2.8% 3.3% 3.7% 4.9% 6.7% 6.7% 7.3% 8.3% 6.6% * Annualized Return Based on Morning Star Methodology All other returns are Annualized Simple Return Launch Date: Fund Size: Type: Dealing Days: Dealing Time: Settlement: Pricing Mechanism: Load:*** Management Fee: Total Expense Ratio: Risk Profile: Fund Stability Rating: Listing: Custodian & Trustee: Auditors: Benchmark:** Fund Manager: Minimum Subscription: Asset Manager Rating: The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. August 20, 2010 Rs. 1,822 million Open-end – Shariah Compliant Income Fund Daily – Monday to Saturday (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M (Saturday) 9:00 A.M to 1:00 P.M 2-3 business days Forward Pricing 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: NIL 10% of Net Income (Min 0.5% p.a., Max 1.25% p.a.) 1.34% p.a.(including 0.38% government levies) Very Low "A(f)" by PACRA Pakistan Stock Exchange Central Depository Company (CDC) Deloitte Yousuf Adil Chartered Accountants 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP Muhammad Ali Bhabha CFA,FRM Growth Unit: Rs. 10,000/Income Unit: Rs. 100,000/AM2++ by PACRA (High Investment Management Standards) ** effective from September 01, 2016; Previously Average 6-month deposit rate of A- and above rated Islamic Banks *** effective from January 02, 2017 Asset Allocation (% of Total Assets) GOP Ijara Sukuks Bank Deposits Others including receivables Total Leverage 31-Mar-17 28-Feb-17 5.5% 93.3% 1.2% 100.0% Nil 5.7% 93.0% 1.3% 100.0% Nil Sindh Workers' Welfare Fund (SWWF) To provide preservation of capital and earn a reasonable rate of return along with a high degree of liquidity by investing in short-term Shariah compliant banks and money market / debt securities. The Fund generated an annualized return of 4.4% for the month of March 2017 versus the Benchmark return of 2.8% thus registering an outperformance of 1.6% p.a. During FYTD the Fund has outperformed its Benchmark by 2.7% by earning an annualized return of 6.0%. This outperformance is net of management fee and all other expenses. The Fund aims to consistently provide better return than the profit rates offered by Islamic Banks / Islamic windows of commercial banks, while also providing easy liquidity along with a high quality credit profile. The Fund is allowed to invest in short-term Shariah compliant money market securities of up to six months maturity rated AA- or better. The Fund is not authorized to invest in corporate debt securities and the Equities. The allocation of the Fund is around 5.6% of net assets in GOP Ijarah Sukuks, which are floating rate instruments with 6-months coupon re-setting. Around 94% of net assets of the portfolio is invested in bank deposits which enhances the liquidity profile of the Fund. The weighted average time to maturity of the fund is 35 days. We will rebalance the allocation of the fund proactively based on the capital market outlook. Credit Quality of the Portfolio as of Mar 31, 2017 (% of Total Assets) GOP Ijarah Sukuk (AAA rated) AAA AA+ AA AAA+ A AOthers including receivables Total 5.5% 32.8% 9.6% 0.3% 0.2% 1.9% 0.1% 48.4% 1.2% 100.0% The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 1,985,218/-. If the same were not made the NAV per unit/last one year return of scheme would be higher by Rs. 0.0116/0.12%. For details investors are advised to read note 11 of the Financial Statements of the Scheme for the half year ended December 31, 2016. Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Muhammad Ali Bhabha, CFA, FRM Hassan Raza, CFA 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. 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. Page 04
7. NAFA Islamic Income Fund (NIIF) Capital Markets Review (Formerly; NAFA Islamic Aggressive Income Fund) MONTHLY REPORT (MUFAP's Recommended Format) Unit Price (31/03/2017): Rs. 9.8606 March 2017 Performance % Performance Period Since Launch FY FY Mar FYTD Trailing 12 months FY FY FY 2017 2017 Apr 16 - Mar 17 2016 2015 2014 2013 2012 October 26, 2007* NAFA Islamic Income Fund 4.4% 5.3% 5.7% 7.4% 9.2% 13.6% 6.8% 19.0% 6.7% Benchmark** 3.5% 4.3% 4.4% 4.8% 6.6% 6.5% 7.0% 7.9% 6.3% (Formerly; NAFA Islamic Aggressive Income Fund) * 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. General Information Launch Date: Fund Size: Type: Dealing Days: Dealing Time: Settlement: Pricing Mechanism: Load:*** Management Fee: Total Expense Ratio: Risk Profile: Fund Stability Rating: Listing: Custodian & Trustee: Auditors: Benchmark:** Fund Manager: Minimum Subscription: Asset Manager Rating: Investment Objective October 26, 2007 Rs. 3,076 million Open-end – Shariah Compliant Income Fund Daily – Monday to Friday (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M 2-3 business days Forward Pricing 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: NIL 10% of Net Income (Min 0.5% p.a., Max 1.0% p.a.) 1.19% p.a. (including 0.33% government levies) Low to Medium "A-(f)" by PACRA Pakistan Stock Exchange Central Depository Company (CDC) Deloitte Yousuf Adil Chartered Accountants 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP Muhammad Ali Bhabha, CFA, FRM Growth Unit: Rs. 10,000/Income Unit: Rs. 100,000/AM2++ by PACRA (High Investment Management Standards) ** 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 Asset Allocation (% of Total Assets) 31-Mar-17 Sukuks GOP Ijara Sukuks - Govt. Backed Bank Deposits Others including receivables Total Leverage 28-Feb-17 1.6% 4.0% 93.4% 1.0% 100.0% Nil 0.9% 3.2% 95.2% 0.7% 100.0% Nil Top Sukuk Holdings (as at Mar 31, 2017) To seek preservation of capital and earn a reasonable rate of return in a Shariah compliant manner. Fund Manager Commentary During the month under review, the Fund posted an annualized return of 4.4% as compared to the Benchmark return of 3.5% thus registering an outperformance of 0.9% p.a. During FYTD, the Fund has posted 5.3% annualized return versus 4.3% by the Benchmark, hence an outperformance of 1.0% p.a. This outperformance is net of management fee and all other expenses. The allocation in corporate Sukuks stood at around 1% of the net assets. Around 97% of net assets of the portfolio is 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 5.1% p.a. and weighted average time to maturity is 1.8 years. 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. SECP has approved the change in category of NAFA Islamic Aggressive Income Fund from Shariah Compliant Aggressive Income Fund to Shariah Compliant Income Fund w.e.f. March 14, 2017. Consequently name of NAFA Islamic Aggressive Income Fund has been changed to NAFA Islamic Income Fund from March 14, 2017. Details of Non-Compliant Investments Particulars New Allied Electronics (Sukuk I) New Allied Electronics (Sukuk II) Value of Type of Investments Investment before Provision SUKUK SUKUK Total Name of Sukuk % of Total Assets K Electric Azm Sukuk - 5 Yrs Total 0.9% 0.9% Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 3,255,343/-. If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs. 0.0104/0.11%. For details investors are advised to read note 11 of the Financial Statements of the Scheme for the half year ended December 31, 2016. 110,000,000 4,905,437 114,905,437 Provision held Value of Investments after Provision % of Net Assets % of Gross Assets 110,000,000 4,905,437 114,905,437 - 0.0% 0.0% Credit Quality of the Portfolio as of Mar 31, 2017 (% of Total Assets) GOP Ijarah Sukuk (AAA rated) AAA AA+ AA AAA+ AOthers including receivables Total 3.2% 37.2% 0.1% 1.0% 0.1% 10.4% 47.3% 0.7% 100.0% Name of the Members of Investment Committee Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Muhammad Ali Bhabha, CFA, FRM Hassan Raza, CFA 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. 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. Page 05
8. Capital Review NAFA Markets Islamic Asset Allocation Fund (NIAAF) March 2017 Unit Price (31/03/2017): Rs.19.0030 Performance % Mar FYTD Rolling 12 Months FY 2017 2017 Apr 16 - Mar 17 2016 Performance Period FY 2015 FY 2014 FY 2013 Since Launch FY 2012 October 26, 2007* NAFA Islamic Asset Allocation Fund 0.2% 21.9% 31.5% 13.1% 33.8% 22.2% 36.3% 13.2% 17.3% Benchmark** 20.6% 9.2% 12.1% 17.7% 28.9% 11.1% 12.0% (1.1%) 14.5% The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. * Annualized Return All Other returns are Cumulative Note:** Effective from September 01, 2016; Previously average of (i) average 3-month Islamic banks deposit rate (ii) 6-month KIBOR or its Shariah 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 Allocation from 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. PBV 4.3 2.7 DY 3.7% 4.0% 12.2% 10.2% 7.7% 7.0% 5.1% 18.4% Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Taha Khan Javed, CFA Hassan Raza, CFA Muhammad Ali Bhabha, CFA, FRM Benchmark ** 25.8% 10.3% 13.4% 5.8% NIAAF, 99.0% 80.0% 60.0% Benchmark ** 45.8% 40.0% 20.0% 0.0% Top Five Sectors (% of Total Assets) (as on 31 Mar, 2017) Cement Oil & Gas Exploration Companies Fertilizer Oil & Gas Marketing Companies Textile Composite Others NIAAF Annualized Return Risk (Std. Deviation) 100.0% Cum. Return 31-Mar-17 58.9% 0.3% 40.0% 0.8% 100.0% Nil 31-Dec-16 PER 10.6 11.9 60.6% 38.6% 0.8% 100.0% Nil Relative Performance of NAFA Islamic Asset Allocation Fund (NIAAF) for the Last Three Years 120.0% 30-Sep-16 NIAAF 28-Feb-17 30-Jun-16 Equities / Stocks Sukuks Cash Others Total Leverage 31-Mar-17 31-Mar-16 Asset Allocation (% of Total Assets) 31-Dec-15 *** effective from January 02, 2017 30-Sep-15 Fund Manager: Minimum Subscription: Asset Manager Rating: 30-Jun-15 Benchmark:** NIAAF started off the month with an allocation of around 59% in equities, which increased to around 61% towards the end of the month. NIAAF outperformed the Benchmark in March as the Fund was underweight in select Power Generation & Distribution Companies, and Oil & Gas Exploration Companies sectors stocks which underperformed the market and overweight in select Oil & Gas Marketing Companies, Oil & Gas Exploration Companies, Automobile Assembler, Glass & Ceramics, and Cable & Electrical good sectors stocks which outperformed the market. During the month, the allocation was primarily increased in Cement, Engineering, Oil & Gas Marketing Companies, and Power Generation & Distribution Companies sectors, whereas it was reduced Primarily in Oil & Gas Exploration Companies, Pharmaceutical, Textile Composite, and Fertilizer sectors. 31-Mar-15 Risk Profile: Listing: Custodian & Trustee: Auditors: 31-Dec-14 Management Fee: Total Expense Ratio (%) ‘s During the month under review, unit price (NAV) of NAFA Islamic Asset Allocation Fund increased by 0.2% whereas the Benchmark decreased by 1.1%, thus your Fund outperformed the Benchmark by 1.3 %. Since inception your Fund has posted 17.3% p.a return, versus 12.0% p.a by the Benchmark. Thus, to-date the outperformance of your Fund stands at 5.3% p.a. This outperformance is net of management fee and all other expenses. 30-Sep-14 Settlement: Pricing Mechanism: Load:*** To generate capital appreciation by investing in Shariah Compliant equity and equity related securities and income by investing in Shariah Compliant bank deposits, debt & money market securities. 30-Jun-14 October 26, 2007 Rs. 13,561 million Open-end-Shariah Compliant -Asset Allocation Fund Daily – Monday to Friday (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M 2-3 business days Forward Pricing 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: NIL 2% per annum 3.70% p.a (including 1.34% government levies) Moderate Pakistan Stock Exchange Central Depository Company (CDC) Deloitte Yousuf Adil Chartered Accountants 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. Taha Khan Javed, CFA Growth Unit: Rs. 10,000/Income Unit: Rs. 100,000/AM2++ by PACRA (High Investment Management Standards) 31-Mar-14 Launch Date: Fund Size: Type: Dealing Days: Dealing Time: Top Ten Holdings (as on 31 Mar, 2017) % of Total Assets % of Total Assets Engro Corporation Ltd Equity 4.4% Engro Fertilizer Ltd Equity 2.7% Mari Petroleum Company Ltd Equity 3.6% Millat Tractors Ltd Equity 2.6% Lucky Cement Ltd Equity 3.2% Nishat Mills Ltd Equity 2.6% Pakistan State Oil Co. Ltd Equity 3.1% Kohinoor Textile Mills Ltd Equity 2.5% D G Khan Cement Co Ltd Equity 2.9% Oil & Gas Dev Co Ltd Equity 2.4% Details of Non-Compliant Investments Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 63,868,057/-If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs 0.0895/0.62%. For details investors are advised to read the Note 11 of the Financial Statements of the Scheme for the half year ended December 31, 2016. Eden Housing (Sukuk II) Total SUKUK 4,921,875 4,921,875 - - - 4,921,875 4,921,875 - - - 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. 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. Page 06
9. NAFA Islamic Stock Fund (NISF) March 2017 Unit Price (31/03/2017): Rs.15.6006 Performance Period Mar 2017 FYTD 2017 Rolling 12 Months Apr 16 - Mar 17 NAFA Islamic Stock Fund 1.2% 36.4% 49.3% 12.9% 27.4% (2.1%) 23.7% 40.5% 15.5% 22.1% Settlement: Pricing Mechanism Load:** Management Fee: Total Expense Ratio (%) Risk Profile Listing: Custodian & Trustee: Auditors: Benchmark: Fund Manager: Minimum Subscription: Asset Manager Rating: Since Launch* January 09, 2015 The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. * Annualized Return All Other returns are Cumulative Launch Date: Fund Size: Type: Dealing Days: Dealing Time: FY 2016 January 9, 2015 Rs. 7,093 million Open-end-Shariah Compliant-Equity Fund Daily – Monday to Friday (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M 2-3 business days Forward Pricing 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: NIL 2% per annum 4.13% p.a.(including 1.62% government levies) High Pakistan Stock Exchange Central Depository Company (CDC) A. F. Ferguson & Co. Chartered Accountants KMI-30 Index Sajjad Anwar, CFA Growth Unit: Rs. 10,000/Income Unit: Rs. 100,000/AM2++ by PACRA (High Investment Management Standards) The objective of the Fund is to provide investors with long term capital growth from an actively managed portfolio of Shariah Compliant listed equities. ‘ During the month under review, NAFA Islamic Stock Fund’s (NISF) unit price (NAV) increased by 1.2%, whereas the Benchmark decreased by 2.1%, thus an outformance of 3.3% was recorded. Since inception on January 9, 2015 your Fund has posted 27.4% p.a return, versus 22.1% p.a by the Benchmark. Thus, to-date the outperformance of your Fund stands at 5.3% p.a. This outperformance is net of management fee and all other expenses. NISF started off the month with an allocation of around 89% in equities, which was maintained during the month. NISF outperformed the Benchmark in March as the Fund was underweight in select Power Generation & Distribution Companies, Automobile Assembler, and Oil & Gas Exploration Companies sectors stocks which underperformed the market and overweight in select Oil & Gas Marketing Companies, Oil & Gas Exploration Companies, Automobile Assembler, Glass & Ceramics, and Miscellaneous sectors stocks which outperformed the market. During the month, the allocation was increased primarily in Cement, Engineering, Miscellaneous, Glass & Ceramics, and Pharmaceuticals Sectors, whereas it was reduced primarily in Fertilizer, Power Generation & Distribution Companies, Oil & Gas Marketing Companies, and Textile Composite sectors. Relative Performance of NAFA Islamic Stock Fund (NISF) Since Launch on January 09, 2015 80% NISF Annualized Return Risk (Std. Deviation) 60% Benchmark 27.4% 14.7% Peers Avg. 22.1% 15.3% NISF, 71.5% 21.0% 14.9% Benchmark, 56.0% Peers Avg., 52.9% ** effective from January 02, 2017 28-Feb-17 88.6% 10.7% 0.7% 100.0% Nil 88.8% 8.4% 2.8% 100.0% Nil Characteristics of Equity Portfolio*** 20.1% 12.1% 10.4% 9.7% 6.7% 29.6% 15-Feb-17 29-Dec-16 11-Nov-16 7-Aug-16 24-Sep-16 3-May-16 20-Jun-16 16-Mar-16 Top Ten Holdings (as on 31 Mar, 2017) % of Total Assets Top Five Sectors (% of Total Assets) (as on 31 Mar, 2017) Cement Oil & Gas Exploration Companies Oil & Gas Marketing Companies Fertilizer Automobile Assembler Others 28-Jan-16 6-Sep-15 24-Oct-15 2-Jun-15 DY 3.2% 4.0% 20-Jul-15 -20% 15-Apr-15 PBV 4.1 2.7 0% 9-Jan-15 PER 10.1 11.9 20% 11-Dec-15 NISF KMI-30 40% 31-Mar-17 31-Mar-17 Equities / Stocks Cash Equivalents Others including receivables Total Leverage 26-Feb-15 Asset Allocation (% of Total Assets) Cumulative Return % of Total Assets Engro Corporation Ltd Equity 5.6% Sui Northern Gas Ltd Equity 3.2% Mari Petroleum Company Ltd Equity 4.8% Millat Tractors Ltd Equity 3.0% Lucky Cement Ltd Equity 4.7% Oil & Gas Dev.Co Equity 3.0% D G Khan Cement Co Ltd Equity 4.4% Attock Cement Pakistan Ltd Equity 2.8% Hub Power Company Ltd Equity 3.4% Pakistan State Oil Co. Ltd Equity 2.7% Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 44,099,501/-If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs 0.0970/0.93%. For details investors are advised to read the Note 10.2 of the Financial Statements of the Scheme for the half year ended December 31, 2016. 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. Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Taha Khan Javed, CFA Hassan Raza, CFA 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. Page 07
10. NAFA Islamic Pension Fund (NIPF) March 2017 MONTHLY REPORT (MUFAP's Recommended Format) Performance % Fund Size NAV Per Unit (Rs.) Mar FYTD Rolling 12 Months FY 2017 Apr 16 - Mar 17 2016 FY 2015 Since Launch July 02, 2013 (Rs. in mln) Mar 31, 2017 NIPF-Equity Sub-fund 862.5 331.3755 1.1%* 36.3%* NIPF-Debt Sub-fund 296.4 123.0193 1.2% 3.8% 3.6% 3.8% 5.6% 5.4% NIPF-Money Market Sub-fund 196.4 123.2443 2.9% 3.9% 3.9% 3.9% 6.2% 5.5% * Cumulative Returns All Other returns are annualized Dealing Days: Dealing Time: Pricing Mechanism Front end Load: Back end Load: Management Fee: Total Expense Ratio (%) Risk Profile Custodian & Trustee: Auditors: Fund Manager: Minimum Subscription: Asset Manager Rating: Leverage Government Securities (AAA rated) AAA AA+ AA AAA+ Others Total Debt 38.1% 25.3% 19.3% 1.2% 14.3% 1.8% 100.0% Money Market 7.6% 9.4% 37.5% 5.3% 19.0% 19.3% 1.9% 100.0% Asset Allocation (% of Total Assets) Equity Sub-fund 31-Mar-17 Equity Cash Equivalents Others including receivables Total Cash Equivalents GOP Ijara Sukuk Others Total Money Market Sub-fund Cash Equivalents GOP Ijara Sukuk Others Total 16.9%* 51.5%* 37.4% Investment Objective July 2, 2013 Rs. 1,355 million Open-end – Shariah Compliant Voluntary Pension Scheme Daily – Monday to Friday (Mon-Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 05:30 P.M Forward Pricing Upto 3% on Contributions 0% On average Annual Net Assets of each Sub-Fund. Equity, Debt, Money Market 1.50% p.a. Equity 3.36% p.a. (including 1.54% government levies) Debt 2.18% p.a. (including 0.43% government levies) Money Market 2.27% p.a. (including 0.44% government levies) Investor dependent Central Depository Company (CDC) KPMG Taseer Hadi & Co. Chartered Accountants Sajjad Anwar, CFA Initial: Rs. 10,000/Subsequent: Rs. 1000/AM2++ by PACRA (High Investment Management Standards) Nil Credit Quality of the Portfolio (as on 31 Mar 2017) Debt Sub-fund 51.6%* The performance reported is net of management fee & all other expenses. General Information Launch Date: Fund size: NIPF Type: 2017 93.2% 5.8% 1.0% 100.0% 31-Mar-17 60.1% 38.1% 1.8% 100.0% 31-Mar-17 90.5% 7.6% 1.9% 100.0% Name of the Members of Investment Committee Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Taha Khan Javed, CFA, Muhammad Ali Bhabha, CFA, Hassan Raza, CFA To provide a secure source of savings and regular income after retirement to the Participants. Fund Manager’s Commentary During the month of March: NIPF Equity Sub-fund unit price increased by 1.1% as compared to 2.1% decrease in KMI-30 Index. The Sub-fund was around 93% invested in equities with major weights in Cement, Oil & Gas Exploration Companies, and Fertilizers sectors. Equity Sub-fund maintains exposure of atleast 90% in listed equities on average. Last 90 days average allocation in equity was 95.6% of net asset. NIPF Debt Sub-fund generated annualized return of 1.2%.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 A+ rated Islamic banks / AA rated Islamic windows. Weighted Average Maturity of Sub-fund is 0.6 year. NIPF Money Market Sub-fund generated annualized return of 2.9%. 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 is 49 days. Top Five Sectors (% of Total Assets) (as on 31 Mar, 2017) Top Ten Holdings of Equity Sub-fund (as on 31 Mar, 2017) 28-Feb-17 93.7% 5.8% 0.5% 100.0% 28-Feb-17 59.2% 39.3% 1.5% 100.0% (% of Total Assets) Engro Corporation Ltd Lucky Cement Ltd Mari Petroleum Company Ltd D G Khan Cement Co Ltd Pakistan State Oil Co. Ltd 5.6% 4.8% 4.5% 4.3% 3.6% (% of Total Assets) Pakistan Oilfields Ltd Nishat Mills Ltd Engro Fertilizer Ltd Pak Petroleum Ltd Hub Power Company Ltd 3.4% 3.0% 2.8% 2.8% 2.6% Sindh Workers' Welfare Fund (SWWF) NIPF has maintained provisions against Sindh Workers’ Welfare Fund’s liability in individual Sub-funds as stated below: 28-Feb-17 90.3% 8.0% 1.7% 100.0% 18.1% 12.9% 10.1% 8.5% 6.6% 37.0% Cement Oil & Gas Exploration Companies Fertilizer Automobile Assembler Oil & Gas Marketing Companies Others Total amount Provided Rs Equity Sub-fund Amount Per Unit Rs Last One Year return would otherwise have been higher by: 6,333,294 2.4334 1.11% Debt Sub-fund 397,861 0.1651 0.14% Money Market Sub-fund 252,207 0.1582 0.13% For details investors are advised to read the Note 12.1 of the Financial Statements of the Scheme for the half year ended December 31, 2016. 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. 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. Page 08
11. Capital MarketsPrincipal Review Protected Fund-I (NIPPF-I) NAFA Islamic March 2017 Unit Price (31/03/2017): Rs 101.6211 % Performance period Mar 2017 FYTD Rolling 12 Months FY 2017 Apr 16 - Mar 17 2016 NAFA Islamic Principal Protected Fund-I (NIPPF-I) 0.4% 18.6% 24.2% 4.2% 21.3% 15.0% 0.04% 12.4% 20.2% 7.7% 11.0% 11.4% The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. NIPPF-I KMI-30 NIPPF-I 53.8% 40.0% 20.0% Islamic Bank Deposit 11.2% -20.0% 21-Jan-17 0.0% Top Ten Holdings (as on 31 Mar, 2017) % of Total Assets Top Five Sectors (% of Total Assets) (as on 31 Mar, 2017) Oil & Gas Exploration Companies Cement Fertilizer Oil & Gas Marketing Companies Pharmaceuticals Others 2.1% 1.2% 1.0% 1.0% 0.9% 1.7% Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 2,739,012/-If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs 2.5986/3.18%. For details investors are advised to read the Note 10.2 of the Financial Statements of the Scheme for the half year ended December 31, 2016. 31-Mar-17 DY 3.5% 4.0% 60.0% 1-Nov-16 PBV 2.6 2.7 Cumulative Return KMI-30 83.6% 80.0% 12-Aug-16 PER 9.1 11.9 3.5% 0.05% 3-Mar-16 7.7% 88.2% 4.1% 100.0% Nil 21.9% 14.9% 23-May-16 28-Feb-17 7.9% 88.7% 3.4% 100.0% Nil Islamic Bank Deposit 13-Dec-15 31-Mar-17 Equities / Stocks Cash Others including receivables Total Leverage 15.0% 6.7% KMI-30 23-Sep-15 Asset Allocation (% of Total Assets) Annualized Return Annualized STDEV (Risk) 4-Jul-15 Fund Manager: Asset Manager Rating: 100.0% NIPPF-I 14-Apr-15 Benchmark: Relative Performance of NAFA Islamic Principal Protected Fund-I (NIPPF-I) Since Inception on March 5, 2014 23-Jan-15 Risk Profile: Listing: Custodian & Trustee: Auditors: Since inception, NIPPF-I has generated a return of 15.0% p.a versus 11.4% p.a return of the Benchmark. The current equity exposure stands at around 8%. During the month, maximum multiplier stood a 0.3 whereas minimum multiplier was 0.2.Key holdings of the Fund belong to Oil & Gas Exploration Companies, Cement, and Fertilizer Companies sectors. In line with directive no 18 of 2016, effective from 01st January 2017, the equity exposure of the Fund is capped at 10%. Consequently, going forward, your Fund may not be able to offer attractive returns due to very low exposure in the stock market. 3-Nov-14 Total Expense Ratio (%) ‘ 14-Aug-14 Settlement: Pricing Mechanism: Load: Management Fee: The objective of NAFA Islamic Principal Protected Fund-I is to earn a potentially high return through dynamic asset allocation between shariah compliant Equities and Money Market investment avenues, while providing principal protection. 5-Mar-14 Dealing Days: Dealing Time: March 5, 2014 Rs. 107 million Open-end Shariah Compliant Capital Protected Fund Daily – Monday to Friday (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M 2-3 business days Forward Pricing Back end: 0% Equity component 2% per annum Others: 12% of Net Income (Min 0.5% p.a., Max 1.0% p.a.) 3.63% p.a. (including 1.13% government levies) Low Pakistan Stock Exchange Central Depository Company (CDC) A. F. Ferguson & Co. Chartered Accountants Daily weighted return of KMI-30 index & Islamic Bank Deposits based on Fund’s actual allocation. Sajjad Anwar, CFA AM2++ by PACRA (High Investment Management Standards) 25-May-14 * Annualized Return All Other returns are Cumulative Launch Date: Fund Size: Type: FY Since Launch 2015 March 05, 2014* % of Total Assets Pakistan State Oil Co. Ltd Equity 0.9% Pak Petroleum Ltd Equity 0.7% Nishat Mills Ltd Equity 0.8% Engro Corporation Ltd Equity 0.6% Pakistan Oilfields Ltd Equity 0.7% D G Khan Cement Co Ltd Equity 0.5% Glaxo Healthcare Pak Ltd Equity 0.7% Pak Elektron Ltd Equity 0.4% Mari Petroleum Company Ltd Equity 0.7% Engro Fertilizer Ltd Equity 0.4% Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Taha Khan Javed, CFA Hassan Raza, CFA Muhammad Ali Bhabha, CFA, FRM 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. 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. Page 09
12. Capital MarketsPrincipal Review Protected Fund-II (NIPPF-II) NAFA Islamic March 2017 Unit Price (31/03/2017): Rs.101.2336 Mar 2017 Performance Period FYTD Rolling 12 Months 2017 Apr 16 - Mar 17 FY 2016 FY 2015 Since Launch June 27, 2014* 25.4% 32.6% 3.3% 21.0% 17.8% 0.03% 15.6% 25.6% 8.9% 12.2% 13.5% NAFA Islamic Principal Protected Fund-II (NIPPF-II) 0.6% NIPPF-II KMI-30 PER 9.3 11.9 PBV 4.1 2.7 40.0% 20.0% 3.3% 1.4% 1.2% 1.0% 1.0% 0.7% Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 3,393,369,/-If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs 1.5112/1.98%. For details investors are advised to read the Note 10.2 of the Financial Statements of the Scheme for the half year ended December 31, 2016. 3-Feb-17 27-Nov-16 -20.0% 31-Mar-17 Islamic Bank Deposit 9.6% 0.0% Top Ten Holdings (as on 31 Mar, 2017) DY 3.9% 4.0% Top Five Sectors (% of Total Assets) (as on 31 Mar, 2017) Cement Oil & Gas Exploration Companies Textile Composite Power Generation & Distribution Engineering Others NIPPF-II, 57.0% 20-Sep-16 7.9% 89.1% 3.0% 100.0% Nil Cumulative Return KMI-30, 74.5% 60.0% 14-Jul-16 28-Feb-17 3.4% 0.05% 7-May-16 8.6% 89.3% 2.1% 100.0% Nil 22.3% 15.2% Islamic Bank Deposit 29-Feb-16 31-Mar-17 Equities / Stocks Cash Equivalents Others including receivables Total Leverage 17.8% 9.1% 23-Dec-15 Asset Allocation (% of Total Assets) KMI-30 16-Oct-15 Fund Manager: Asset Manager Rating: Annualized Return Annualized STDEV (Risk) 80.0% NIPPF-II 2-Jun-15 Benchmark: Relative Performance of NAFA Islamic Principal Protected Fund-II (NIPPF-II) Since Inception on June 27, 2014 100.0% 9-Aug-15 Risk Profile: Listing: Custodian & Trustee: Auditors: Since inception, NIPPF- II has generated a return of 17.8% p.a versus 13.5% p.a return of the Benchmark. The current equity exposure stands at around 9%. During the month,multiplier remained at 0.2. Key holdings of the Fund belong to Cement, Oil & Gas Exploration Companies, and Textile Composite. In line with directive no 18 of 2016, effective from 01st January 2017, the equity exposure of the Fund is capped at 10%. Consequently, going forward, your Fund may not be able to offer attractive returns due to very low exposure in the stock market. 17-Jan-15 Total Expense Ratio (%) ‘ 26-Mar-15 Settlement: Pricing Mechanism: Load: Management Fee: The objective of NAFA Islamic Principal Protected Fund-II is to earn a potentially high return through dynamic asset allocation between Shariah compliant Equities and Money Market investment avenues, while providing principal protection. 10-Nov-14 Dealing Days: Dealing Time: June 27, 2014 Rs. 227 million Open-end Shariah Compliant -Capital Protected Fund Daily – Monday to Friday (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M 2-3 business days Forward Pricing Back end: 0% Equity component 2% per annum Others: 12% of Net Income (Min 0.5% p.a., Max 1.0% p.a.) 3.34% p.a (including 0.93% government levies) Low Pakistan Stock Exchange Central Depository Company (CDC) A. F. Ferguson & Co. Chartered Accountants Daily weighted return of KMI-30 index & Islamic Bank Deposits based on Fund’s actual allocation. Sajjad Anwar, CFA AM2++ by PACRA (High Investment Management Standards) 3-Sep-14 Launch Date: Fund Size: Type: The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. 27-Jun-14 * Annualized Return All Other returns are Cumulative % of Total Assets % of Total Assets Pioneer Cement Ltd Equity 1.4% Mughal Iron & Steel Ind Ltd Equity 1.0% Mari Petroleum Company Ltd Equity 1.4% Fauji Cement Company Ltd Equity 0.9% D G Khan Cement Co Ltd Equity 1.1% Engro Corporation Ltd Equity 0.4% Kot Addu Power Co Ltd Equity 1.0% Kohinoor Textile Mills Ltd Equity 0.2% Nishat Mills Ltd Equity 1.0% Hascol Petroleum Ltd Equity 0.1% Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Muhammad Ali Bhabha, CFA, FRM Taha Khan Javed, CFA Hassan Raza, CFA 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. 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. Page 10
13. Capital MarketsPrincipal Review Preservation Fund (NIPPF) NAFA Islamic March 2017 Unit Price (31/03/2017): Rs.101.5061 % Performance Period NAFA Islamic Principal Preservation Fund (NIPPF) FYTD 2017 Rolling 12 Months Apr 16 - Mar 17 FY 2016 Since Launch January 09, 2015* 0.4% 14.3% 17.9% 4.0% 10.5% 0.1% 11.5% 16.6% 3.6% 8.8% The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. NIAAF NISF KMI-30 PER 10.6 10.1 11.9 PBV 4.3 4.1 2.7 DY 3.7% 3.2% 4.0% Top Holdings (%age of total assets) (as on 31 Mar, 2017) NAFA Islamic Asset Allocation Fund NAFA Islamic Stock Fund Total 30.0% NIPPF, 24.8% 20.0% 10.0% Islamic Bank Deposit, 6.7% 0.0% 12-Feb-17 31-Mar-17 23-Dec-16 2-Nov-16 -20.0% 12-Sep-16 -10.0% 2-Jun-16 9.8% 2.7% 85.6% 1.9% 100.0% Nil KMI-30, 56.0% 40.0% 23-Jul-16 10.4% 2.9% 84.3% 2.4% 100.0% Nil Islamic Asset Allocation Fund Islamic Stock Fund Cash Others including receivables Total Leverage 3.0% 0.03% 50.0% 12-Apr-16 28-Feb-17 Return Islamic Bank Deposit 22.1% 15.3% 1-Jan-16 31-Mar-17 KMI-30 10.5% 5.0% 21-Feb-16 Asset Allocation (% of Total Assets) NIPPF 11-Nov-15 ** effective from September 01, 2016; Previously daily weighted return of KMI-30 index & Islamic Bank Deposits based on Fund's actual allocation. Annualized Return Annualized STDEV (Risk) 60.0% 1-Aug-15 Fund Manager: Asset Manager Rating: 70.0% Relative Performance of NAFA Islamic Principal Preservation Fund (NIPPF) Since Inception on January 9, 2015 Cumulative 21-Sep-15 Total Expense Ratio (%) Listing: Risk Profile: Custodian & Trustee: Auditors: Benchmark:** Since inception, NIPPF has generated a return of 10.5% p.a versus 8.8% p.a return of the Benchmark. The current exposure in equity/asset allocation funds stands at 13.3%. During the month,multiplier remained at 0.5. In line with directive no 18 of 2016, effective from 01st January 2017, the equity exposure of the Fund is capped at 10%. Consequently, going forward, your Fund may not be able to offer attractive returns due to very low exposure in the stock market. 11-Jun-15 Management Fee: ‘ 21-Apr-15 Settlement: Pricing Mechanism: Back end Load: The objective of NAFA Islamic Principal Preservation Fund is to earn a potentially high return through dynamic asset allocation between Shariah compliant equity related, and Shariah compliant income/ money market Collective Investment Schemes, while providing principal preservation. 9-Jan-15 January 9, 2015 Rs. 427 million Open End Shariah Compliant Fund of Funds Daily – Monday to Friday (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M 2-3 business days Forward Pricing 1% in year 1, 0.5% in year 2 and no load beyond 2 years 1) On invested amount in NAFA fund, no additional fee. 2) Cash in Bank account: 12% of Net Income (Min 0.5% p.a., Max 1.0% p.a.) 1.81% p.a (including 0.72% government levies) Pakistan Stock Exchange Low Central Depository Company (CDC) A. F. Ferguson & Co. Chartered Accountants Combination of benchmarks of underlying schemes on the basis of actual investment i.e.NISF: KMI-30 Index NIAAF: 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 Cash: 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP Sajjad Anwar, CFA AM2++ by PACRA (High Investment Management Standards) 1-Mar-15 * Annualized Return All Other returns are Cumulative Launch Date: Fund Size: Type: Dealing Days: Dealing Time: Mar 2017 Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Taha Khan Javed, CFA Hassan Raza, CFA Muhammad Ali Bhabha, CFA, FRM 10.4% 2.9% 13.3% Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 3,893,013/-If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs 0.9253/1.07%. For details investors are advised to read the Note 9.1 of the Financial Statements of the Scheme for the half year ended December 31, 2016. 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. 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. Principal Preservation only applies to unit holders who hold their investments until initial maturity of two years. Page 11
14. Capital MarketsActive Review NAFA Islamic Allocation Plan-I (NIAAP-I) Unit Price (31/03/2017): Rs.140.1336 March 2017 Performance Period Mar 2017 FYTD 2017 Rolling 12 Months Apr 16 - Mar 17 Since Launch* January 15, 2016 NAFA Islamic Active Allocation Plan-I 0.2% 26.5% 35.1% 32.2% (1.6%) 20.0% 31.6% 31.4% * Annualized Return All Other returns are Cumulative Launch Date: Fund Size: Type: Dealing Days: Dealing Time: [Returns are net of management fee & all other expenses] January 15, 2016 Rs. 980 million Open Ended Shariah Compliant Fund of Funds Daily – Monday to Friday (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M 2-3 business days Forward Pricing Nil 1) On invested amount in NAFA fund, no additional fee. 2) Cash in Bank account: 1.25% p.a. 1.26% p.a (including 0.94% government levies) Low to moderate Pakistan Stock Exchange Central Depository Company (CDC) A. F. Ferguson & Co. Chartered Accountants 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) Sajjad Anwar, CFA AM2++ by PACRA (High Investment Management Standards) Settlement: Pricing Mechanism Back end Load: Management Fee: Total Expense Ratio (%) Risk Profile Listing: Custodian & Trustee: Auditors: Benchmark:** Fund Manager: Asset Manager Rating: 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. ‘ NAFA 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 NAFA 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 32.2% p.a versus 31.4% p.a return of the Benchmark. The current exposure in Equity Fund and Income Fund stands at 78.1% & 16.1% respectively. The Plan can invest up to 95% 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. ** effective from September 01, 2016; Previously daily weighted return of KMI-30 index & 6 month deposit rate of A- and above rated Islamic banks and windows based on actual investment. Asset Allocation (% of Total Assets) 31-Mar-17 Shariah Compliant Funds Cash Equivalents Others including receivables Total Leverage NIAAEF KMI-30 PER 10.5 11.9 28-Feb-17 94.2% 5.8% 0.0% 100.0% Nil PBV 4.4 2.7 92.8% 7.1% 0.1% 100.0% Nil DY 3.7% 4.0% Top Holdings (%age of total assets) (as on 31 Mar, 2017) NAFA Islamic Active Allocation Equity Fund NAFA Active Allocation Riba Free Savings Fund Total 78.1% 16.1% 94.2% 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. Sindh Workers' Welfare Fund (SWWF) Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Muhammad Ali Bhabha, CFA, FRM Taha Khan Javed, CFA Hassan Raza, CFA The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 5,847,476/-If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs 0.8360/0.81%. For details investors are advised to read the Note 10 of the Financial Statements of the Scheme for the half year ended December 31, 2016. 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. Page 12
15. Capital MarketsActive Review NAFA Islamic Allocation Plan-II (NIAAP-II) March 2017 Unit Price (31/03/2017): Rs.135.1535 * Performance Period Mar 2017 FYTD 2017 Rolling 12 Months Apr 16-Mar 17 Since Launch March 04, 2016 NAFA Islamic Active Allocation Plan-II 0.2% 26.0% 34.4% 32.6% (1.6%) 19.6% 30.2% 29.5% The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. * Cumulative Returns Launch Date: Fund Size: Type: Dealing Days: Dealing Time: March 04, 2016 Rs. 772 million Open Ended Shariah Compliant Fund of Funds Daily – Monday to Friday (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M 2-3 business days Forward Pricing Nil 1) On invested amount in NAFA fund, no additional fee. 2) Cash in Bank account: 1.25% p.a. 1.20% p.a (including 0.85% government levies) Low to moderate Pakistan Stock Exchange Central Depository Company (CDC) A. F. Ferguson & Co. Chartered Accountants 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) Sajjad Anwar, CFA AM2++ by PACRA (High Investment Management Standards) Settlement: Pricing Mechanism Back end Load: Management Fee: Total Expense Ratio (%) Risk Profile Listing: Custodian & Trustee: Auditors: Benchmark:** Fund Manager: Asset Manager Rating: 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. ‘ NAFA 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 NAFA 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 cumulative return of 32.6% versus 29.5% return of the Benchmark. The current exposure in Equity Fund and Income Fund stands at 81.4% & 10.0% respectively. The Plan can invest up to 95% 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. ** effective from September 01, 2016; Previously daily weighted return of KMI-30 index & 6 month deposit rate of A- and above rated Islamic banks and windows based on actual investment. Asset Allocation (% of Total Assets) 31-Mar-17 Shariah Compliant Funds Cash Equivalents Others including receivables Total Leverage NIAAEF KMI-30 PER 10.5 11.9 91.4% 8.5% 0.1% 100.0% Nil PBV 4.4 2.7 28-Feb-17 93.7% 6.2% 0.1% 100.0% Nil DY 3.7% 4.0% Top Holdings (%age of total assets) (as on 31 Mar, 2017) NAFA Islamic Active Allocation Equity Fund NAFA Active Allocation Riba Free Savings Fund Total 81.4% 10.0% 91.4% 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. Sindh Workers' Welfare Fund (SWWF) Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Muhammad Ali Bhabha, CFA, FRM Taha Khan Javed, CFA Hassan Raza, CFA The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 4,232,106/-If the same were not made the NAV per unit/ since inception return of scheme would be higher by Rs 0.7406/0.74%. For details investors are advised to read the Note 10 of the Financial Statements of the Scheme for the half year ended December 31, 2016. 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. Page 13
16. Capital MarketsActive Review NAFA Islamic Allocation Plan-III (NIAAP-III) March 2017 Unit Price (31/03/2017): Rs.122.3547 * Performance Period Mar 2017 FYTD 2017 Rolling 6 Months Oct 16 - Mar 17 Since Launch June 28, 2016 NAFA Islamic Active Allocation Plan-III 0.2% 22.4% 16.2% 22.5% (1.6%) 17.0% 15.6% 17.8% The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. * Cumulative Returns Launch Date: Fund Size: Type: Dealing Days: Dealing Time: June 28, 2016 Rs. 1,185 million Open Ended Shariah Compliant Fund of Funds Daily – Monday to Friday (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M 2-3 business days Forward Pricing Nil 1) On invested amount in NAFA fund, no additional fee. 2) Cash in Bank account: 1.25% p.a. 0.89% p.a (including 0.55% government levies) Low to moderate Pakistan Stock Exchange Central Depository Company (CDC) A. F. Ferguson & Co. Chartered Accountants 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) Sajjad Anwar, CFA AM2++ by PACRA (High Investment Management Standards) Settlement: Pricing Mechanism Back end Load: Management Fee: Total Expense Ratio (%) Risk Profile Listing: Custodian & Trustee: Auditors: Benchmark:** Fund Manager: Asset Manager Rating: 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. ‘ NAFA 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 NAFA 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 generated a cumulative return of 22.5% versus 17.8% return of the Benchmark. The current exposure in Equity Fund and Income Fund stands at 78.2% & 13.2% respectively. The Plan can invest up to 95% 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. ** effective from September 01, 2016; Previously daily weighted return of KMI-30 index & 6 month deposit rate of A- and above rated Islamic banks and windows based on actual investment. Asset Allocation (% of Total Assets) 31-Mar-17 28-Feb-17 Shariah Compliant Funds Cash Equivalents Others including receivables Total Leverage NIAAEF KMI-30 PER 10.5 11.9 91.4% 8.6% 100.0% Nil PBV 4.4 2.7 90.8% 9.1% 0.1% 100.0% Nil DY 3.7% 4.0% Top Holdings (%age of total assets) (as on 31 Mar, 2017) NAFA Islamic Active Allocation Equity Fund NAFA Active Allocation Riba Free Savings Fund Total 78.2% 13.2% 91.4% 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. Sindh Workers' Welfare Fund (SWWF) Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Muhammad Ali Bhabha, CFA, FRM Taha Khan Javed, CFA Hassan Raza, CFA The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 4,441,987/-If the same were not made the NAV per unit/ since inception return of scheme would be higher by Rs 0.4585/0.46%. For details investors are advised to read the Note 10 of the Financial Statements of the Scheme for the half year ended December 31, 2016. 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. Page 14
17. Capital MarketsActive Review NAFA Islamic Allocation Plan-IV (NIAAP-IV) Unit Price (31/03/2017): Rs.114.4281 March 2017 Performance Period Mar 2017 Rolling 6 Months Oct 16-Mar 17 NAFA Islamic Active Allocation Plan-IV 0.2% 14.4% 14.4% (1.6%) 14.3% 14.3% * Cumulative Returns [Returns are net of management fee & all other expenses] Launch Date: Fund Size: Type: September 30, 2016 Rs. 823 million Open Ended Shariah Compliant Fund of Funds Daily – Monday to Friday (Mon-Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M 2-3 business days Forward Pricing Nil 1) On invested amount in NAFA fund, no additional fee. 2) Cash in Bank account: 1.25% p.a. 0.72% p.a (including 0.43% government levies) Low to moderate Pakistan Stock Exchange Central Depository Company (CDC) A. F. Ferguson & Co. Chartered Accountants 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) Sajjad Anwar, CFA AM2++ by PACRA (High Investment Management Standards) Dealing Days: Dealing Time: Settlement: Pricing Mechanism: Back end Load: Management Fee: Total Expense Ratio (%): Risk Profile: Listing: Custodian & Trustee: Auditors: Benchmark: Fund Manager: Asset Manager Rating: Asset Allocation (% of Total Assets) PER 10.5 11.9 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. ‘ NAFA 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 NAFA 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, NIAAP-IV has generated a cumulative return of 14.4% versus 14.3% return of the Benchmark. The current exposure in Equity Fund and Income Fund stands at 79.7% & 12.2% respectively. The Plan can invest up to 95% 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. 31-Mar-17 28-Feb-17 Shariah Compliant Funds Cash Equivalents Others including receivables Total Leverage NIAAEF** KMI-30 Since Launch September 30, 2016 91.9% 7.9% 0.2% 100.0% Nil PBV 4.4 2.7 93.3% 6.6% 0.1% 100.0% Nil DY 3.7% 4.0% Top Holdings (%age of total assets) (as on 31 Mar, 2017) NAFA Islamic Active Allocation Equity Fund NAFA Active Allocation Riba Free Savings Fund Total 79.7% 12.2% 91.9% 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. Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Muhammad Ali Bhabha, CFA, FRM Taha Khan Javed, CFA Hassan Raza, CFA Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 2,116,897/-If the same were not made the NAV per unit/ since inception return of scheme would be higher by Rs 0.2945/0.29%. For details investors are advised to read the Note 10 of the Financial Statements of the Scheme for the half year ended December 31, 2016. 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. Page 15
18. Capital MarketsActive Review NAFA Islamic Allocation Plan-V (NIAAP-V) Unit Price (31/03/2017): Rs. 100.5156 March 2017 Performance Period Mar 2017 Since Launch January 12 , 2017 NAFA Islamic Active Allocation Plan-V 0.2% 0.5% (1.4%) (2.2%) * Cumulative Returns [Returns are net of management fee & all other expenses] Launch Date: Fund Size: Type: January 12, 2017 Rs. 1,956 million Open Ended Shariah Compliant Fund of Funds Daily – Monday to Friday (Mon-Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M 2-3 business days Forward Pricing Nil 1) On invested amount in NAFA fund, no additional fee. 2) Cash in Bank account: 1.25% p.a. 0.25% p.a (including 0.08% government levies) Low to moderate Pakistan Stock Exchange Central Depository Company (CDC) A. F. Ferguson & Co. Chartered Accountants 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) Sajjad Anwar, CFA AM2++ by PACRA (High Investment Management Standards) Dealing Days: Dealing Time: Settlement: Pricing Mechanism Back end Load: Management Fee: Total Expense Ratio (%) Risk Profile Listing: Custodian & Trustee: Auditors: Benchmark: Fund Manager: Asset Manager Rating: Asset Allocation (% of Total Assets) 31-Mar-17 28-Feb-17 92.2% 7.8% 100.0% Nil 92.8% 7.0% 0.2% 100.0% Nil Shariah Compliant Funds Cash Equivalents Others including receivables Total Leverage NIAAEF** KMI-30 PER 10.5 11.9 PBV 4.4 2.7 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. ‘ NAFA 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 NAFA based on the Fund Manager’s outlook of the authorized asset-classes. The plan is presently closed for subscription. NIAAP-V has an initial maturity of two years. Since inception, NIAAP-V has generated a cumulative return of 0.5% whereas the Benchmark declined by 2.2%. The current exposure in Equity Fund and Income Fund stands at 69.6% & 22.6% respectively. The Plan can invest up to 95% 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. DY 3.7% 4.0% Top Holdings (%age of total assets) (as on 31 Mar, 2017) NAFA Islamic Active Allocation Equity Fund NAFA Active Allocation Riba Free Savings Fund Total 69.6% 22.6% 92.2% 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. Sindh Workers' Welfare Fund (SWWF) Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Muhammad Ali Bhabha, CFA, FRM Taha Khan Javed, CFA Hassan Raza, CFA The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 204,915/-If the same were not made the NAV per unit/ since inception return of scheme would be higher by Rs 0.0105/0.01%. For details investors are advised to read the Note 10 of the Financial Statements of the Scheme for the half year ended December 31, 2016. 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. Page 16
19. Capital Markets Review NAFA Active Allocation Riba Free Savings Fund (NAARFSF) March 2017 Unit Price (31/03/2017): 10.2676 Performance Period Mar 2017 FYTD 2017 Trailing 12 months Apr 16 - Mar 17 Since Launch* January 18, 2016 NAFA Active Allocation Riba Free Savings Fund 3.7% 3.7% 3.8% 4.0% 2.8% 3.3% 3.7% 3.8% *Annualized Return Based on Morning Star Methodology All other returns are Annualized Simple Return Launch Date: Fund Size: Type: Dealing Days: Dealing Time: Settlement: Pricing Mechanism Load: Management Fee: Total Expense Ratio: Risk Profile: Fund stability rating Listing: Custodian & Trustee: Auditors: Benchmark:** Fund Manager: Minimum Subscription Asset Manager Rating: The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. January 18, 2016 Rs. 946 million Open-end – Shariah Compliant Income Fund Daily – Monday to Friday (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M 2-3 business days Forward Pricing Front end: 0% Back end: 0% 1.25% per annum 2.06% p.a. (including 0.37% government levies) Low "A-(f)" by PACRA Pakistan Stock Exchange Central Depository Company (CDC) A. F. Ferguson & Co. Chartered Accountants 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP Muhammad Ali Bhabha, CFA, FRM Rs. 10,000/AM2++ by PACRA (High Investment Management Standards) ** effective from September 01, 2016; Previously Average of 6-Month deposit rates (A- & above rated Islamic banks) Asset Allocation (% of Total Assets) Bank Deposits Others including receivables Total Leverage 31-Mar-17 99.1% 0.9% 100.0% Nil 28-Feb-17 98.7% 1.3% 100.0% Nil Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 666,870/-. If the same were not made the NAV per unit/last one year return of scheme would be higher by Rs. 0.0072/0.07%. For details investors are advised to read note 10 of the Financial Statements of the Scheme for the half year ended December 31, 2016. To earn a reasonable rate of return along with a high degree of liquidity by investing in short-term Shari’ah compliant banks deposits and money market/debt securities. During the month under review, the Fund has generated an annualized return of 3.7% against the benchmark return of 2.8%. The performance is net of management fee and all other expenses. The Fund aims to consistently generate to 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 shariah compliant Government Securities of maturity up to 3 years as well as Shariah compliant money market and debt securities of up to 2 years maturity rated AA- or better. Around 100% 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 1 day. We will rebalance the allocation of the Fund proactively based on the capital market outlook. Credit Quality of the Portfolio as of March 31, 2017 (% of Total Assets) AAA AA+ A+ AOthers including receivables Total 43.9% 2.1% 3.7% 49.4% 0.9% 100.0% Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Muhammad Ali Bhabha, CFA, FRM Hassan Raza, CFA Notes: 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. 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. Page 17
20. Capital Markets Review NAFA Islamic Active Allocation Equity Fund (NIAAEF) March 2017 Unit Price (31/03/2017):15.1799 Performance Period Mar 2017 FYTD 2017 Rolling 12 Months Apr 16 - Mar 17 Since Launch* January 18, 2016 NAFA Islamic Active Allocation Equity Fund 0.2% 33.4% 48.8% 46.8% (2.1%) 23.7% 40.5% 45.4% * Annualized Return All Other returns are Cumulative Launch Date: Fund Size: Type: Dealing Days: Dealing Time: Settlement: Pricing Mechanism Load: Management Fee: Risk Profile Total Expense Ratio (%) Custodian & Trustee: Auditors: Benchmark: Fund Manager: Asset Manager Rating: The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. January 18, 2016 Rs. 4,391 million Open Ended Shariah Compliant Equity Scheme Daily – Monday to Friday (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M 2-3 business days Forward Pricing Front end-0% Back end-0% 2% p.a High 3.96% p.a. (including 1.52% government levies) Central Depository Company (CDC) A. F. Ferguson & Co. Chartered Accountants KMI-30 Index Taha Khan Javed, CFA AM2++ by PACRA ( High Investment Management Standards) Asset Allocation (% of Total Assets) 31-Mar-17 28-Feb-17 87.8% 11.5% 0.7% 100.0% Nil 88.7% 10.7% 0.6% 100.0% Nil Equities / Stocks Cash Equivalents Others including receivables Total Leverage NIAAEF KMI-30 PER 10.5 11.9 PBV 4.4 2.7 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. ‘ NAFA launched its second open-end Islamic Equity Fund namely NAFA 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 Shariah compliant equities. NIAAEF started off the month with an allocation of around 89% in equities, which decreased to around 88% towards the end of the month. NIAAEF outperformed the Benchmark in March as the Fund was underweight in select Power Generation & Distribution Companies, Automobile Assembler, and Oil & Gas Exploration Companies sectors stocks which underperformed the market and overweight in select Oil & Gas Marketing Companies, Oil & Gas Exploration Companies, Automobile Assembler, Glass & Ceramics, and Miscellaneous sectors stocks which outperformed the market. During the month, the allocation was increased primarily in Cable & Electrical Good, Automobile Assembler, Glass & Ceramics, and Engineering Sectors, whereas it was reduced primarily in Fertilizer, Oil & Gas Exploration Companies, and Oil & Gas Marketing Companies sectors. Top Ten Holdings (as on 31 Mar, 2017) % of Total Assets % of Total Assets Engro Corporation Ltd Equity 6.4% Attock Cement Pakistan Ltd Equity 3.7% Mari Gas Company Ltd Equity 4.9% Nishat Mills Ltd Equity 3.6% Lucky Cement Ltd Equity 4.9% Engro Fertilizer Ltd Equity 3.3% Pakistan State Oil Co. Ltd Equity 4.8% Shell Pakistan Ltd Equity 3.2% Kohinoor Textile Mills Ltd Equity 4.1% Hub Power Company Ltd Equity 3.2% DY 3.7% 4.0% Top Five Sectors (% of Total Assets) (as on 31 Mar, 2017) Cement Oil & Gas Exploration Companies Fertilizer Oil & Gas Marketing Companies Textile Composite Others 16.9% 12.6% 11.8% 8.9% 7.8% 29.7% Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 27,717,690/-If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs 0.0958/0.94%. For details investors are advised to read the Note 13 of the Financial Statements of the Scheme for the half year ended December 31, 2016. 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. Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Taha Khan Javed, CFA Hassan Raza, CFA 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. Page 18
21. Capital MarketsEnergy ReviewFund (NIEF) NAFA Islamic March 2017 Unit Price (31/03/2017): Rs.14.4246 %* Performance Period Mar 2017 FYTD 2017 Rolling 6 Months Oct 16 - Mar 17 Since Launch April 21, 2016 NAFA Islamic Energy Fund 0.6% 36.7% 22.2% 49.7% (2.1%) 23.7% 18.7% 38.8% The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. * Cumulative Return Launch Date: Fund Size: Type: Dealing Days: Dealing Time: Settlement: Pricing Mechanism Load:** Management Fee: Total Expense Ratio (%) Risk Profile Listing: Custodian & Trustee: Auditors: Benchmark: Fund Manager: Minimum Subscription: Asset Manager Rating: April 21, 2016 Rs. 2,863 million Open Ended Shariah Compliant Equity Scheme Daily – Monday to Friday (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M 2-3 business days Forward Pricing 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: NIL 2% p.a 4.0% p.a (including 1.47% government levies) High Pakistan Stock Exchange Central Depository Company (CDC) A. F. Ferguson & Co. Chartered Accountants KMI-30 Index Taha Khan Javed, CFA Growth Unit: Rs. 10,000/Income Unit: Rs. 100,000/AM2++ by PACRA ( High Investment Management Standards) **effective from January 02, 2017 Asset Allocation (% of Total Assets) 31-Mar-17 28-Feb-17 87.3% 11.2% 1.5% 100.0% Nil 85.2% 12.1% 2.7% 100.0% Nil Equities / Stocks Cash Equivalents Others including receivables Total Leverage NIEF KMI-30 PER 8.8 11.9 PBV 4.8 2.7 The objective of NAFA 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. ‘ NAFA launched its third open-end Islamic Equity Fund namely NAFA 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 Shariah compliant energy stocks. NIEF started off the month with an allocation of around 85% in equities, which increased to around 87% towards the end of the month. NIEF outperformed the Benchmark in March as the Fund was overweight in select Energy sectors stocks which outperformed the market. During the month, the allocation was increased in Oil & Gas Exploration Companies, and Oil & Gas Marketing Companies sectors. Top Ten Holdings (as on 31 Mar, 2017) % of Total Assets % of Total Assets Mari Petroleum Co Ltd Equity 11.6% Pakistan Oilfields Ltd Equity 6.8% Sui Northern Gas Ltd Equity 9.1% Hub Power Co Ltd Equity 6.3% Shell Pakistan Ltd Equity 9.0% Oil & Gas Dev.Co Equity 6.1% Pak Petroleum Ltd Equity 7.5% Attock Refinery Ltd Equity 4.7% Pakistan State Oil Co. Ltd Equity 7.4% K-Electric Ltd Equity 4.3% DY 3.8% 4.0% Sectors (% of Total Assets) (as on 31 Mar, 2017) Oil & Gas Marketing Companies Oil & Gas Exploration Companies Power Generation & Distribution Refinery 33.7% 31.9% 14.7% 7.0% 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. Sindh Workers' Welfare Fund (SWWF) Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Taha Khan Javed, CFA Hassan Raza, CFA The scheme has maintained provisions against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 17,472,630/-,If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs 0.0880/0.91%. For details investors are advised to read the Note 13 of the Financial Statements of the Scheme for the half year ended December 31, 2016. 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. Page 19