Pakistan: NAFA Riba Free Savings Fund Report - March 2017

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1. 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.