Pakistan: NAFA Islamic Active Allocation Equity Fund Report - July 2017

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1. Capital Markets Review NAFA Islamic Active Allocation Equity Fund (NIAAEF) July 2017 Unit Price (31/07/2017) Rs: 13.3023 July 2017 Rolling 12 Months Aug 16-Jul 17 FY 2017 Since Launch* January 18, 2016 (0.9%) 21.0% 30.1% 32.0% 0.7% 12.9% 18.8% 31.1% Performance Period NAFA Islamic Active Allocation Equity Fund * 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 (%) 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. 4,441 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 3.13% p.a. (including 0.38% government levies) Selling & Marketing Expenses 0.4% per annum Custodian & Trustee: Central Depository Company (CDC) Auditors: A. F. Ferguson & Co. Chartered Accountants Benchmark: KMI-30 Index Fund Manager: Taha Khan Javed, CFA Asset Manager Rating: AM1 by PACRA (Very High Quality) Asset Allocation (% of Total Assets) 31-July-17 Equities / Stocks Cash Equivalents Others including receivables Total Leverage NIAAEF KMI-30 PER 9.1 11.1 ‘ 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 86% towards the end of the month. NIAAEF underperformed the Benchmark in July as the Fund was underweight in select Oil & Gas Exploration Companies, Power Generation & Distribution Companies, Oil & Gas Marketing Companies, and Fertilizer sectors stocks that outperformed the market and overweight in select Cement, Glass & Ceramics, Technology & Communication, Miscellaneous, Engineering, and Automobile Assembler sectors stocks which underperformed the market. During the month, the allocation was increased primarily in Oil & Gas Exploration Companies, Chemical, Technology & Communication, whereas it was reduced primarily in Automobile Assembler, Cable & Electrical Goods, and Cement sectors. Top Ten Holdings (as on 31 July, 2017) % of Total Assets 30-June-17 86.1% 8.6% 5.3% 100.0% Nil PBV 3.1 1.8 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. 88.7% 10.6% 0.7% 100.0% Nil % of Total Assets Mari Petroleum Company Ltd Equity 5.1% Oil & Gas Dev Co Ltd Equity 3.4% Engro Corporation Ltd Equity 4.5% Hub Power Company Ltd Equity 3.1% Pak Petroleum Ltd Equity 4.2% Nishat Mills Ltd Equity 2.9% Pakistan Oilfields Ltd Equity 3.6% Kohinoor Textile Mills Ltd Equity 2.8% Lucky Cement Ltd Equity 3.6% Millat Tractors Ltd Equity 2.8% DY 3.5% 3.8% Top Five Sectors (% of Total Assets) (as on 31 July, 2017) Oil & Gas Exploration Companies Cement Fertilizer Oil & Gas Marketing Companies Automobile Assembler Others 16.4% 16.2% 8.2% 7.4% 6.6% 31.3% Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 29,057,183/-If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs0.087/0.79%. For details investors are advised to read the Note 6 of the Financial Statements of the Scheme for the period ended March 31, 2017. 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.