Pakistan: NAFA Financial Sector Income Fund (NFSIF) - October 2017

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1. NAFA Financial Sector Income Fund (NFSIF) October 2017 Unit Price (31/10/2017): Rs. 10.7110 Performance % Oct 2017 FY 2017 FY 2016 FY 2015 FY 2014 Since Launch FY Last 3 Last 5 2013 years* years* October 28, 2011* FYTD 2018 Rolling 12 months NAFA Financial Sector Income Fund 5.9% 6.2% 8.4% 8.4% 6.4% 10.9% 7.9% 9.3% 8.0% 8.3% 8.9% 6.2% 6.2% 6.1% 6.0% 5.9% 8.3% 8.9% 9.0% 6.4% 7.4% 7.9% Performance Period Benchmark** * 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. October 28, 2011 Rs. 1,820 Million Open-end – 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): 1% (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 1.5% p.a.) 1.32% p.a.(including 0.31% government levies) Low ‘A+(f)’ by PACRA Pakistan Stock Exchange Central Depository Company (CDC) KPMG Taseer Hadi & Co. Chartered Accountants 6-Month KIBOR Muhammad Ali Bhabha, CFA, FRM Growth Unit: Rs. 10,000/Income Unit: Rs. 100,000/AM1 by PACRA (Very High Quality) ** effective from September 01, 2016; Previously 70% 6-Month KIBOR & 30% average 3-Month deposit rates (A & above rated banks) ***effective from January 02, 2017 Asset Allocation (% of Total Assets) 31-Oct-17 The Fund generated an annualized return of 5.9% in the month of October 2017 versus the Benchmark return of 6.2%. Since its launch in October 2011, the Fund has generated an annualized return of 8.9% p.a. against the Benchmark return of 7.9% p.a., hence an outperformance of 1.0% p.a. This outperformance is net of management fee and all other expenses. The Fund is unique as it invests a minimum 70% of its assets in Financial Sector (mainly banks) debt securities, instruments or deposits. Minimum entity rating of issuers of debt securities is “AA-“. This minimizes credit risk and at the same time enhances liquidity of the Fund. Duration of the overall portfolio cannot be more than one year. This minimizes interest rate or pricing risk. The Fund invests 25% of its net assets in less than 90 days T-Bills or saving accounts with banks, which further enhances liquidity profile of the Fund. Exposure in TFCs was around 23% of net assets at the end of the month with average time to maturity of 3.2 years. The TFC portfolio of the Fund is predominantly floating rate linked to KIBOR. The weighted average time-to-maturity of the Fund is 0.8 year. We will rebalance the allocation of the Fund proactively based on the capital market outlook. 29-Sep-17 TFCs Commercial Paper Bank Placements Bank Deposits Others including receivables Total Leverage 22.2% 20.1% 1.6% 1.5% 18.9% 17.2% 55.9% 58.2% 1.4% 3.0% 100.0% 100.0% Nil Nil Top TFC (as at October 31, 2017) (% of Total Assets) Name of TFC Jahangir Siddiqui and Company Ltd. 18-Jul-17 18-Jul-22 JS Bank Limited 14-DEC-16 14-DEC-23 Bank Alfalah Limited IV - FT 02-DEC-09 02-DEC-17 Askari Bank Limited IV 23-Dec-11 23-Dec-21 Faysal Bank Limited III 27-DEC-10 27-DEC-17 Jahangir Siddiqui and Company Ltd. 24-Jun-16 24-Jun-21 Standard Chartered Bank (Pakistan) Limited IV - Revised 29-JUN-12 29-JUN-22 Total To provide income enhancement and preservation of capital by investing in prime quality Financial Sector TFCs/Sukuks, Bank deposits and short-term money market instruments. % of Total Assets 6.4% 6.4% 3.1% 2.4% 1.9% 1.1% 0.9% 22.2% Credit Quality of the Portfolio as of October 31, 2017 (% of Total Assets) AAA AA+ AA AAA+ AOthers including receivables Total 27.2% 21.9% 7.3% 16.5% 25.6% 0.1% 1.4% 100.0% Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 2,471,093/-. If the same were not made the NAV per unit/last one year return of scheme would be higher by Rs. 0.0145/0.15%. For details investors are advised to read note 9 of the financial statements of the Scheme for the period ended September 30, 2017. 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.