FUND MANAGER REPORT - AWT InvestmentsFund Manager Report - October 2017 Key Economic Indicators 2 of...

FOR THE MONTH OCTOBER 2017

FUND MANAGER REPORT

AWTINVESTMENTS

AWT INVESTMENTS LIMITED

Fund Manager Report - October 2017

Key Economic Indicators

2 of 11 MUFAP’s recommended format

“This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an o�er 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 O�ering Document to understand the investment policies and risks involved.”

Economic Indicators Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17External Sector IndicatorsOverall Balance of Payments USD million (520) 484 88 926 309 606 397 (336) 271 1,532 (147) 761 n.a.Current Account Balance USD million (381) (839) (1,083) (1,189) (744) (562) (1,234) (1,581) (1,431) (2,053) (550) (956) n.a.Exports USD million 1,756 1,762 1,727 1,780 1,638 1,801 1,766 1,944 1,865 1,631 2,104 1,744 n.a.Imports USD million 4,026 4,255 4,488 4,737 4,445 5,009 4,052 4,572 5,054 4,835 4,262 3,911 n.a.Worker's Remittances USD million 1,560 1,616 1,584 1,488 1,417 1,695 1,539 1,867 1,840 1,542 1,955 1,294 n.a.Foreign Direct Investment USD million 67 460 595 81 123 297 132 295 199 223 235 205 n.a.Foreign Portfolio Investment USD million (67) (95) (302) (75) 1 (8) (41) 26 (871) (11) (145) 28 n.a.Forex Reserves USD billion 24.33 23.29 23.20 22.24 22.07 21.80 21.57 21.19 21.40 20.44 20.00 20.05 19.90 Exchange Rate against PKRUSD Period End 104.58 104.85 104.38 104.75 104.79 104.81 104.73 104.81 104.84 105.40 105.23 105.41 105.33 Inflation IndicatorsGeneral CPI YoY change 4.20% 3.81% 3.70% 3.66% 4.22% 4.94% 4.78% 5.02% 3.93% 2.91% 3.42% 3.86% 3.80%Food CPI YoY change 4.40% 3.30% 3.00% 2.60% 3.70% 5.00% 4.40% 4.90% 2.40% -0.10% 1.30% 2.40% 2.20%Core (NFNE) YoY change 5.20% 5.30% 5.20% 5.40% 5.30% 5.30% 5.50% 5.50% 5.50% 5.60% 5.50% 5.40% 5.30%Core (Trimmed) YoY change 3.80% 3.80% 3.70% 3.80% 4.10% 4.50% 4.80% 4.80% 4.20% 4.00% 4.20% 4.10% 4.00%Interest RatesSBP Policy Rate Current 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75%6 Month KIBOR Month Avg. 6.08% 6.08% 6.15% 6.12% 6.13% 6.14% 6.16% 6.15% 6.15% 6.14% 6.15% 6.16% 6.17%12 Month KIBOR Month Avg. 6.37% 6.40% 6.43% 6.41% 6.41% 6.41% 6.47% 6.45% 6.46% 6.46% 6.46% 6.47% 6.47%3 Month T-Bill Yield Month Avg. 5.88% 5.91% 6.67% 5.90% 5.92% 5.94% 5.97% 5.99% 5.99% 5.98% 5.98% 5.98% 5.98%6 Month T-Bill Yield Month Avg. 5.91% 5.93% 5.98% 5.91% 5.96% 5.98% 6.00% 6.01% 6.01% 6.00% 6.00% 6.01% 6.01%12 Month T-Bill Yield Month Avg. 5.92% 5.97% 6.03% 5.94% 5.98% 5.99% 6.03% 6.05% 6.04% 6.03% 6.03% 6.03% 6.03%10 Year PIB Yield Month Avg. 7.80% 7.80% 7.80% 7.94% 7.94% 7.94% 7.94% 7.94% 7.94% 7.94% 7.94% 7.94% 7.94%

AWT Investments Limited

Market ReviewFund Manager Report - October 2017

Equity Market Review:

Money Market Review:



In the two T-Bill auction held in the month of Oct’17, the government raised total amount PKR 1,517,236Mn against the target of PKR 1,300bn.The cut o�-yield remained unchanged in both the auctions. The cut o� yield stood at 5.9910% and 6.0109% for 3M and 6M security, respectively. While no participa-tion was seen in the 12M tenor security in both of the T-Bill auction.

No participation was witnessed in the PIBs auction held on October 19, 2017.

In the month of October the KSE100 declined by 6.6% (to 39,617), with a low near 39400 and high near 41100. After making a low below 40,000 in on Oct 13 market bounced to 42,000 on Oct 20 before retreating again by month end to close at 12 months low. Market carried bearish momentum and as uncertain domestic politics topped news and dampened investor sentiments. The overall trading activity declined by 3% MoM as the average traded shares stood at 148mn.Foreigner remained net sellers during the month, o�oading shares with USD8.9mn, whereas the buy support came from Banks/DFIs (USD32.25), Other Organization (USD19.97), and Individuals (USD17.62).

Sector wise performance showed that all the major sectors ended in the red zone except for Re�neries (+39% MoM). The sectors that witnessed the most dull performance were Cable & Electrical goods (-18% MoM), Cement (-14% MoM), and Engineering (-13% MoM). Poor results in the Cable & Electric goods sector dragged its performance, the looming cement supply additions in coming years and cement pricing risk weighed heavily on the Cement. Meanwhile, the devaluation fears preventing from steel scrips to post any positive returns.

The market has broadly ignored some of the positive development for local manufacturers during the month like imposition of RD, the revamped export package and increase in duties on certain import items to curtail widening of the current account de�cit. With result season coming to an end, developments on the political and macroeconomic front will majorly in�uence market direction. The upward trend in oil prices with expectations of oil cut by OPEC and Saudi’s steadfast approach to bring global crude inventories back to their 5 year average will likely push the Oil and Gas sector in the green zone.Overall valuations have reached attractive levels across various sectors. With macro risks largely discounted in share prices, we believe downside risk is limited. In the near term, however, uncertain domestic politics and headwinds on external account may keep equity risk premium high.

Economic Review:CPI in�ation increased by 3.8% on YoY basis in October 2017 as compared to an increase of 3.9% in the previous month and 4.2% in October 2016. On MoM basis, it increased by 0.7% in October 2017 as compared to an increase of 0.6% in the previous month and increase of 0.8% in October 2016. Central projec-tion for CPI in current �scal year is 5% compared to 4.1% in FY2017. As long as CPI stays below the threshold of 5%, there is less likelihood of increase in policy rate from prevailing 5.75%.

On the external front, the trade de�cit has widened by 30% YoY during 1QFY18 to USD9.1bn (USD3bn average per month). Good’s imports have grown by 22% YoY to USD14.3bn in 1QFY18 attributed to rise in petroleum and machinery imports. Exports for 1QFY18 stood at USD5.2bn showing a growth of 11% YoY and averaging at USD1.7bn per month.

Overseas Pakistani workers remitted USD4.8bn in 1QFY18. The remitted amount is 1% higher than in the corresponding period. However, MoM basis, the in�ows of home remittance witnessed a declining trend. During Sep’17, the in�ows of worker’s remittances amounted to USD1.3bn, which is 34% lower than the Aug’17 and 20% lower than Sep’16. During Aug’17, in�ows worth USD1.9bn were received. LSM recorded growth of 8.5% YoY in the second month of FY18. In July, LSM posted a YoY growth of 13%. The LSM target for FY18 is 6.3%, it grew 5.6% in FY17. In Jul-Aug, LSM posted growth of 11.3% on an annual basis. Meanwhile, in August 2017 growth was primarily seen in steel products, petroleum products and autos.

S&P maintained Pakistan ‘B’ long term and short term sovereign rating. The rating agency sees stable economic and �scal outlook for the short and long term with a downward revision on the external sector.


The objective of the fund is to generate consistent returns with minimal risk by investing primarily in Government Securities, cash and near cash instruments

Fund Objective

Fund Manager’s Review

Investment Committee Members

Salman H. Sheikh

Hamza Saboor

Basharatullah KhanKhawar Salman

Chief Executive O�cer

Chief Financial O�cer

Chief Investment O�cerFund Manager

Asif Iqbal

M. Saeed Khalid

Head of Compliance and Risk

Acting Head of Research

*please note that SWWF liability for PRIMUS Daily Reserve Fund till the close of �nancial year ended June 30, 2013 since inception will be borne by the management company*The scheme has maintained a provision gainst Worker's Welfare Fund's liability to the tune of Rs.1,642,504, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs.1.1819/4.28% enhancing the YTD return to 9.02% p.a.

SWWF DisclosureTotal Expense Ratio is 0.69% which Includes 0.07% of Governement Levy and 0.03% of SECP Fee calculated as % of Average Net Asset Value.

Total Expense Ratio

PIML Daily Reserve Fund



Fund Details

Fund Type

Category

Fund Stability Rating

Benchmark

Inception Date

Dealing Days

Cut-o� Time

Pricing Mechanism

**Management Fee

Load

Risk Pro�le

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Open End

Money Market

AA(f ) by PACRA (13th December 2016)

70% average of 3 Month PKRV rate +30 % 3-Month average deposit rate of three scheduled banks rated AA as selected by MUFAP.

Management Co. Rating AM3+ by JCR-VIS (14 July 2017)

1st January 2013

Daily (days when Banks are open for business)

4.00 pm

Forward

0.75%

0% (Front-end) 0% (Back-end)

Low Risk

Pakistan Stock Exchange

Leverage Nil

Central Depository Company of Pakistan Ltd.

Deloitte Yousuf Adil ‘Chartered Accountants’

Mohsin Tayebaly & Co.

Khawar Salman


In the month of Oct' 17 , PIML-DRF generated an annualized return of 4.08% as compared to the benchmark return of 5.16%, underperforming its benchmark. Year to date return of the fund is 4.76%. The fund maintained its exposure in cash at bank at 97.72% . The weighted average time to maturity of the portfolio is at 1 day.

Portfolio Allocation (as % of total assets) Oct. ‘17*

Credit Quality of Portfolio (as % of T.A.) Oct. ‘17 Sep ‘17

Fund returns are calculated NAV with dividends reinvested (excluding sales load)“Performance data does not include the cost incurred directly by an investor in the form of salesloads etc.”

Fund Performance PIML - DRF

Fund Statistics

* Annualized

Portfolio Allocation (as % of T.A.) Oct‘17 Sep’17

Portfolio Allocation (as % of total assets) Sept. ‘17

Months Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17

Performance 3.87% 6.68% 18.89% 4.30% 4.38% 4.91% 4.26% 4.21% 4.02% 6.87% 3.90% 4.03%Benchmark 5.26% 5.29% 5.25% 5.27% 5.28% 5.31% 5.31% 5.22% 5.19% 5.17% 5.17% 5.16%

Period FY13 FY14 FY15 FY16 FY17 FY18TDPerformance 9.87% 8.91% 9.58% 6.00% 6.16% 4.76%Benchmark 7.93% 8.43% 7.77% 5.39% 4.42% 5.17%

Cash at Bank 97.72% 97.29%Others including receivables (NR) 2.28% 2.71%Total 100.00% 100.00%

AA 97.71% 97.28%Other including recievables (NR) 2.28% 2.71%Total 100.00% 100.00%

97.72%

2.28%Cash at Bank

Others including receivables (NR)

Net Assets (PKR mn) 114.01NAV per Unit (PKR) 82.03Weighted Average Maturity (days) 1Sharpe Ratio* -0.96Information Ratio 0.118Standard Deviation 1.21%*Annualized

Since Inception FY13 FY14 FY15 FY16 FY17Return % 9.87% 9.52% 10.09% 9.35% 9.09%Benchmark % 7.93% 8.28% 8.07% 7.16% 6.18%

PDRF* PDRF** Benchmark***FYTD 4.74% 4.82% 5.17%CYTD 6.14% 6.17% 5.23%12M Trailing 6.05% 6.05% 5.24%Since Inception 8.92% 7.70% 6.82%AAR-Since Inception 9.42% 0.00% 7.18%Last 3Yrs 8.75% 0.00% 5.74%Sep-17 3.90% 3.98% 5.17%Oct-17 4.03% 4.11% 5.16%

**Morning Star ***Average of Reporting Period*Simple Annualized

**E�ective from 7th August 2017

97.29%

2.71%

Placements with DFIs

T-Bills


The scheme has maintained a provision gainst Worker's Welfare Fund's liability to the tune of Rs.10,574,456, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs.1.6829/4.65% enhancing the YTD return to 11.57% p.a.

SWWF Disclosure


Portfolio Allocation (as % of T.A.)

Top TFCs Holdings (as % of T.A.)

Fund Statistics

Fund Performance PIML -IF

PIML Income Fund



Fund Details

Fund Type

Category


Benchmark

Inception Date

Dealing Days

Cut-o� Time

Pricing Mechanism

*Management Fee

Load

Risk Pro�le

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Open End

Income Scheme

A+ (f ) by PACRA (30th December 2016)

Average of 6M KIBOR rates for the period under review.

Management Co. Rating

9th August 2012


5.00 pm

Forward

1%


Low to Moderate Risk


Leverage Nil



Khawar Salman

The objective of PIML - Income Fund (formerly Primus Cash Fund) is to generate competitive returns by invest-ing in short to long term debt instruments and securities.

Fund Objective

Portfolio Allocation (as % of total assets) Oct. ‘17

Portfolio Allocation (as % of total assets) Sept. ‘17



Salman H. Sheikh

Hamza Saboor

Basharatullah Khan

Khawar Salman

Chief Investment O�cer

Fund Manager

Asif Iqbal

M. Saeed Khalid


Acting Head of Research Total Expense Ratio is 0.64% which Includes 0.10% of Governement Levy and 0.03% SECP Fee calculated as % Average Net Asset Value.

Total Expense Ratio

Oct.‘17 Sep. ‘17



Credit Quality of Portfolio (as % of T.A.) Oct. ‘17 Sep. ‘17

Oct.17

AM3+ by JCR-VIS (12 July 2017)

Fund returns are calculated NAV to NAV with dividends reinvested (excluding sales load)

In the month of Oct' 17 , PIML-IF generated an annualized return of 5.32% as compared to its benchmark return of 6.17%, underper-forming its benchmark. Year to date return of the fund is 6.94%. The funds exposure in TFC/Sukuks securities was 17.73% of the net assets as compared to 18% of the net assets in the previous month, while cash at bank has increased to 86.15% from 81% of the net asset in the previous month.The weighted average time to maturity of the portfolio is at 260 days.


“Performance data does not include the cost incurred directly by an investor in the form of salesloads etc.”

TFCs/Sukuks 16.85% 17.31%Cash at Bank 81.91% 81.35%Others including receivables (NR) 1.24% 1.34%Total 100.00% 100.00%

AKBL TFC-IV 23-Dec-11 - 23-Dec-21 10.87 3.56 2.35

TPL Sukuk 15-Apr-16 -13-Aug-21HPL Sukuk 07-Jan-16 - 07-Jan-22

AA+ 0.00% 0.24%AA- 95.12% 94.72%A+ 3.64% 3.69%Other including recievables (NR) 1.24% 1.34%Total 100.00% 100.00%

Months Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17Performance 3.09% 6.70% 11.52% 5.00% 4.98% 5.13% 4.84% 7.01% 6.70% 7.87% 7.67% 5.28%Benchmark 6.09% 4.41% 6.12% 6.13% 6.13% 6.16% 6.15% 6.15% 6.14% 6.15% 6.16% 6.17%

Period FY13 FY14 FY15 FY16 FY17 FY18TDPerformance 8.72% 8.24% 16.96% 11.71% 4.68% 6.94%Benchmark 9.46% 9.46% 8.35% 5.93% 6.10% 6.16%

Net Assets (PKR mn) 675.30NAV per Unit (PKR) 107.47Weighted Average Maturity (days) 260Sharpe Ratio* 1.44Information Ratio 0.097Standard Deviation 0.73%*Annualized

Since Inception FY13 FY14 FY15 FY16 FY17Return % 8.72% 8.81% 12.61% 13.47% 11.35%Benchmark % 9.46% 9.44% 8.55% 7.39% 7.43%

PIML-IF* PIML-IF** Benchmark***FYTD 6.92% 7.08% 6.16%CYTD 6.77% 6.81% 6.15%12M Trailing 5.56% 5.56% 6.14%Since Inception 11.31% 9.83% 7.31%AAR-Since Inception 10.89% 0.00% 47.58%Last 3 Yrs 10.52% 0.00% 6.40%Sep-17 7.67% 7.94% 6.16%Oct-17 5.28% 5.41% 6.17%*simple Annualized ***Aaverage of reporting period**Morning Star n.a = not applicable

**E�ective from 7th August 2017

17%

82%

1% TFCs/Sukuks

Cash at Bank


17%

82%

1% TFCs/Sukuks

Cash at Bank


Name of Non-Compliant Type of Value of Investment Provisioning Value of Investment Limit % of Gross % of NetInvestment Investment Before Provisioning held (if any) After Provisioning Asset AssetAKBL-TFC-V TFC 77,201,058 - 77,201,058 10.00% 10.87% 11.43%


KSE 100 index and six (6) months KIBOR rates on the basis of actual proportion held by the scheme during the period under review.

1yr PKRV yield used as Risk‐Free rate. * Annualized

**R‐Square measures the correlation between the benchmark and the funds return

Fund Statistics

Top 10 Holdings (as % of T.A.) Symbol Oct. ‘17

Fund Performance PIML - SMAF

The scheme has maintained a provision gainst Worker's Welfare Fund's liability to the tune of Rs.1,405,807, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs.1.0115/2.97% enhancing the YTD return to -12.52% p.a.

SWWF Disclosure



PIML Strategic Multi Asset Fund



Fund Details

Fund Type

Category

Benchmark

Inception Date

Dealing Days

Cut-o� Time

Pricing Mechanism

Management Fee

Load

Risk Pro�le

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Fund Manager

Open End

Balanced Fund


23rd August 2013


4.00 pm

Forward

2% p.a.


Moderate to High


Leverage Nil



Nisha Ahuja

Nisha Ahuja



Sector Allocation (as % of T.A.)

Credit Quality of Portfolio (as % of T.A.)

Oct. ‘17 Sept. ‘17

Oct.‘17 Sept. ‘17


Salman H. Sheikh

Hamza Saboor

Basharatullah Khan Chief Investment O�cer

Asif Iqbal

M. Saeed Khalid






AM3+ by JCR-VIS (15 December 2016)

Total Expense Ratio is 1.31% which Includes 0.11% of Governement Levy and 0.03% of SECP Fee calculated as % of Average Net Asset Value.

Total Expense Ratio

In the month of Oct'17, the fund posted return of -6.62% against the benchmark return of -4.25%, denoting underperformance of 237bps. Major contribution in the fund's negative return came from its holding in LUCK, PAEL and INIL. The top �ve holdings of the fund are PSO, LUCK, NML, ENGRO and OGDC, having 50% of the weight.The overall valuations have reached attractive levels across various sectors. . With macro risks largely discounted in share prices, we believe downside risk is limited. In the near term, however, uncertain domestic politics and headwinds on external account may keep equity risk premium high.



PIML-SMAF* Benchmark**FYTD -15.49% -8.85%CYTD -17.20% -9.61%12M Trailing -5.08% 1.58%Since Inception 46.70% 57.76%AAR-Since Inception 8.91% 10.93%Last 3 Yrs 25.63% 16.79%Sep-17 0.14% 2.14%Oct-17 -6.62% -4.25%

Months Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17Performance 5.25% 8.92% 1.89% -0.32% -1.10% 2.78% 1.68% -6.68% -1.98% -7.67% 0.14% -6.62%

Benchmark 4.87% 8.88% 1.52% -0.18% -0.39% 1.77% 1.93% -4.84% -0.49% -6.50% 2.14% -4.25%

Performance 9.27% 28.64% 6.82% 15.61% -15.49%Benchmark 18.80% 13.40% 8.59% 17.54% -8.85%

Period FY14 FY15 FY16 FY17 FY18TD

Equity Securities 64.36% 64.65%Cash at Bank 32.84% 30.94%Others including recievables (NR) 2.79% 4.41%Total 100% 100%

64%

33%3%

Oct'17

Equity Securities

Cash at Bank

Others including recievables (NR)

CEMENT 9.07% 9.65%COMMERCIAL BANKS 8.18% 5.90%OIL & GAS MARKETING COMPANIES 7.57% 11.22%TEXTILE COMPOSITE 7.48% 2.00%OIL & GAS 7.02% 4.00%OTHERS 42.00% 28.27%

Pakistan State Oil PSO 7.57%Lucky Cement Ltd LUCK 7.20%Nishat Mills Ltd NML 5.37%Engro Corp ECORP 4.59%Oil & Gas Development Co OGDC 4.54%Bank Alfalah BAFL 3.35%Aisha Steel Mill Ltd ASL 2.81%United Bank Ltd UBL 2.57%Synthetic Products Enterprises Ltd SPEL 2.50%Pakistan Petroleum Ltd PPL 2.47%

AAA 0.0% 30.9%AA & above 0.00% 0.00%AA- 33.00% 0.00%(NR) (includes equity investments) 67.20% 69.08%Total 100% 100%

Net Assets (PKR mn) 140.23NAV per Unit (PKR) 100.90Sharpe Ratio* -1.40Standard Deviation* 14.01%Treynor Ratio -0.170Beta 1.15R - Square** 90.84%Value at Risk 1.46%

Since Inception FY14 FY15 FY16 FY17Return % 9.27% 40.56% 50.15% 73.59%Benchmark % 18.80% 36.51% 49.13% 76.31%

The objective of PIML-SMAF, an open-end balanced scheme, is o�ering retail and institutional clients a product that aims to maximize return and minimize risk. For this purpose, a balanced portfolio is created that has an optimal mix of equity, debt securities and commodity.

Fund Objective

*Absolute Return **Average of Reporting Period


Oct. ‘17 Sept. ‘17

The scheme has maintained a provision gainst Worker's Welfare

Fund's liability to the tune of Rs.1,582,895, if the same were not

made the NAV per unit/year to date (YTD) return of the scheme

would be higher by Rs.1.3910/3.87% enhancing the YTD return

to -18.21% p.a.

SWWF Disclosure

Portfolio Allocation (as % of T.A.) Oct. ‘17 Sept.’17Sector Allocation (as % of T.A.) Oct. ‘17 Sept. ‘17

Top 10 Equty Holdings (as % of T.A.) Symbol Oct. ‘17

Credit Quality of Portfolio (as % of T.A.) Oct.‘17 Sept. ‘17

Fund Statistics

The objective of PIML-IEF is to achieve long term capital growth by investing mainly in Shariah Compliant listed equity securities.

Fund Objective

Portfolio Allocation (as % of total assets) Oct‘17


PIML Islamic Equity Fund



Fund Details

Fund Type

Category

Benchmark

Inception Date

Dealing Days

Cut-o� Time

Pricing Mechanism

Management Fee

Load

Risk Pro�le

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Open End

Islamic Equity Scheme

KMI - 30 Index


4th March 2014


4.00 pm

Forward

2% p.a.


Moderate to High


Leverage Nil


KPMG Taseer Hadi & Co.


Basharatullah Khan



Fund Performance PIML - IEF



Salman H. Sheikh

Hamza Saboor

Basharatullah Khan

Basharatullah Khan


Asif Iqbal

M. Saeed Khalid





Fund Manager


Total Expense Ratio

In the month of Oct'17, the fund posted return of -7.84% against the benchmark return of -5.8%, denoting underperformance of 204bps.

Major contribution in the fund's negative return came from INIL, LUCK, SNGP and ENGRO. The top �ve holdings of the fund are LUCK,

OGDC, ENGRO, PSO and NML The overall valuations have reached attractive levels across various sectors. . With macro risks largely

discounted in share prices, we believe downside risk is limited. In the near term, however, uncertain domestic politics and headwinds on

external account may keep equity risk premium high.


Months Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17

Performance 6.33% 11.94% 2.34% -1.45% -2.50% 4.19% 0.93% -8.93% -3.44% -12.60% 0.17% -7.84%Benchmark 7.18% 14.51% 2.47% -0.29% -2.09% 3.23% 3.53% -8.99% 0.72% -11.94% 2.49% -5.80%

Period FY14 FY15 FY16 FY17 FY18TDPerformance 4.58% 24.96% 7.30% 17.02% -22.08%

Benchmark 10.70% 20.10% 15.53% 18.80% -14.38%


84%

11%5%

Oct'17

Equity Securities

Cash at Bank


OIL & GAS MARKETING COMPANIES 12.81% 12.88%CEMENT 12.33% 12.58%OIL AND GAS 11.33% 10.67%FERTILIZER 10.20% 10.12%ENGINEERING 7.72% 8.00%OTHERS 19.68% 32.21%

Lucky Cement Ltd LUCK 11.90%Oil & Gas Development Co OGDC 11.33%Engro Corp ENGRO 10.20%Pakistan State Oil PSO 9.65%Nishat Mills Ltd NML 5.13%Packages Ltd PKGS 4.76%International Industries Ltd INIL 4.47%Hub Power Co HUBC 4.05%Searle Co SEARL 3.59%Synthetic Products Enterprises Ltd SPEL 3.31%

AA+ 0.00% 10.72%AA- 11.00% 0.00%NR (includes equity investments) 89.36% 89.30%Total 100% 100%

PIML-IEF* BenchmarkFYTD -22.08% -14.38%CYTD -25.65% -17.73%12M Trailing -11.51% -2.41%Since Inception 27.86% 56.15%AAR-Since Inception 6.93% 12.94%Sep-17 0.17% 2.49%Oct-17 -7.84% -5.80%

Net Assets (PKR mn) 121.24NAV per Unit (PKR) 106.54Sharpe Ratio -1.35Standard Deviation* 19.44%Treynor Ratio -0.290Beta 0.90R - Square** 88.71%Value at Risk 2.02%1Y PKRV yield used as Risk-Free rate

*Annualized

** R-Square measures the correlation between the benchmark and the fund


*Absolute Return




Credit Quality of Portfolio (as % of T.A.) Oct. ‘17 Sept. ‘17

The scheme has maintained a provision gainst Worker's Welfare Fund's liability to the tune of Rs.288,990, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs.0.2967/0.86% enhancing the YTD return to 5.37% p.a.

SWWF Disclosure

PIML Islamic Income Fund



In the month of Oct' 17, PIML-IIF generated an annualized return of 4.25% as compared to benchmark return of 2.51%, outperforming its

benchmark by 174bps. Year to date return of the fund is 4.51%. The fund maintained its exposure in cash at bank at 99%. The weighted

average time to maturity of the portfolio is at 01 day.

Fund Details

Fund Type

Category


Benchmark

Inception Date

Dealing Days

Cut-o� Time

Pricing Mechanism

*Management Fee

Load

Risk Pro�le

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Open End

Islamic Income Scheme

A(f ) by PACRA (12th July 2017)

6 month average deposit rates of three (3) A rated scheduled Islamic Banks or Islamic windows of Conventional Banks as selected by MUFAP.*


4th March 2014


5.00 pm

Forward

0.75%


Low to Moderate Risk


Leverage Nil


KPMG Taseer Hadi & Co


Khawar Salman

The investment objective of the fund is to generate competitive risk adjusted returns by investing in short, medium and long-term Shariah Compliant Fixed Income Instruments.

Fund Objective

Portfolio Allocation (as % of T.A.) Oct. ‘17 Sept. ‘17

Fund Statistics

Apr‘15


Salman H. Sheikh

Hamza Saboor

Basharatullah Khan

Khawar Salman


Fund Manager

Asif Iqbal

M. Saeed Khalid



Portfolio Allocation (as % of total assets) Oct ‘17

Fund Performance PIML - IIF






Total Expense Ratio


Cash at Bank 98.00% 96.88%Others including receivables (NR) 2.00% 3.12%Total 100.00% 100.00%

98%

2% Cash at Bank


AA- 98.00% 96.88%Other including recievables (NR) 2.00% 3.12%Total 100.00% 100.00%

Months Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17Performance 7.23% 6.35% 2.02% 3.11% 3.12% 3.19% 3.10% 1.97% 3.19% 7.22% 3.21% 4.25%Benchmark 2.80% 2.82% 2.75% 2.75% 2.83% 2.74% 2.74% 2.37% 2.39% 2.31% 2.34% 2.51%

Performance 5.46% 5.08% 6.26% 4.37% 4.51%Benchmark 6.49% 6.18% 4.59% 3.01% 2.39%

FY14Period FY15 FY16 FY17 FY18TD

Net Assets (PKR mn) 100.11NAV per Unit (PKR) 102.79Weighted Average Maturity (days) 1Sharpe Ratio* (4.88) Information Ratio 0.27Standard Deviation 0.51%*Annualized


PIML-IIF* PIML-IIF** Benchmark***FYTD 4.51% 4.58% 2.39%CYTD 3.50% 3.51% 2.55%12M Trailing 4.08% 4.08% 2.60%Since Inception 5.58% 5.21% 4.55%AAR-Since Inception 7.07% 0.00% 6.21%Sep-17 3.21% 3.26% 2.34%Oct-17 4.25% 4.34% 2.51%*simple Annualized ***Aaverage of reporting period**Morning Star

*E�ective from 7th August 2017


Portfolio Allocation (as % of T.A.) Oct. ‘17 Sept. ‘17




would be higher by Rs.0.9925/2.83% enhancing the YTD return

to -17.97% p.a.

SWWF Disclosure

Fund Statistics

Sector Allocation (as % of T.A.) Oct. ‘17 Sept. ‘17

Top 10 Equty Holdings (as % of T.A.) Symbol Sept. ‘17

Fund Performance PIML - VEF

The objective of PIML-Value Equity Fund is to achieve long term capital growth by investing mainly in listed equity securities.

Fund Objective


PIML Value Equity Fund



Fund Details

Fund Type

Category

Benchmark

Inception Date

Dealing Days

Cut-o� Time

Pricing Mechanism

Management Fee

Load

Risk Pro�le

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Open End

Equity Scheme

KSE 100 Index


13th March 2015


4.00 pm

Forward

2% p.a.


Moderate to High


Leverage Nil

Central Depository Company o f Pakistan Ltd.



Basharatullah Khan


Credit Quality of Portfolio (as % of T.A.) Oct. ‘17 Sept. ‘17


Salman H. Sheikh

Hamza Saboor

Basharatullah Khan

Basharatullah Khan


Asif Iqbal

M. Saeed Khalid







Fund Manager


Total Expense Ratio

Fund Manager’s ReviewIn the month of Oct'17, the fund posted return of -8.72% against the benchmark return of -6.58%, denoting underperformance of 214bps.

Major contribution in the fund's negative return came from its holding in AICL, INIL, LUCK and SNGP. The top �ve holdings of the fund

are PSO, LUCK, NML, OGDC and SNGP, having 50% of the weight. The overall valuations have reached attractive levels across various

sectors. With macro risks largely discounted in share prices, we believe downside risk is limited. In the near term, however, uncertain

domestic politics and headwinds on external account may keep equity risk premium high.



92%

3%5%Equity Securities

Cash at Bank


OIL & GAS MARKETING COMPANIES 15.26% 13.23%CEMENT 10.92% 10.53%OIL & GAS 9.00% 5.00%ENGINEERING 8.90% 5.39%COMMERCIAL BANKS 7.24% 7.93%OTHERS 22.00% 45.69%

Pakistan State Oil PSO 9.48%Lucky Cement Ltd LUCK 7.55%Nishat Mills Ltd NML 5.94%Oil & Gas Development Co OGDC 5.79%Sui Northern Gas Pipeline SNGP 5.77%Adamjee Insurance Co Ltd AICL 5.51%Engro Corp ENGRO 5.39%Packages Ltd PKGS 5.14%Aisha Steel Mills ASL 4.71%Bank Alfalah BAFL 3.87%

AA- 3.00% 6.50%NR (includes equity investments) 96.90% 93.37%Total 100% 100%

PIML-VEF* BenchmarkFYTD -20.80% -14.92%CYTD -23.94% -17.13%12M Trailing -8.71% -0.69%Since Inception 11.01% 21.59%AAR-Since Inception 4.00% 7.25%Sep-17 0.64% 2.92%Oct-17 -8.72% -6.58%

Months Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17Performance 8.21% 10.92% 3.20% -1.59% -1.15% 3.91% 1.34% -9.16% -2.78% -11.33% 0.64% -8.72%

Benchmark 6.84% 12.16% 1.99% -0.46% -0.78% 2.38% 2.62% -8.23% -1.19% -10.44% 2.92% -6.58%

Period FY15 FY16 FY17 FY18TD

Performance 9.11% 4.99% 22.36% -20.80%Benchmark 4.64% 9.84% 23.24% -14.92%

Net Assets (PKR mn) 124.87NAV per Unit (PKR) 104.22Sharpe Ratio* -1.28Standard Deviation* 19.55%Treynor Ratio -0.236Beta 1.05R - Square** 89.37%Value at Risk 2.03%

3M PKRV yield used as Risk-Free rate

*Annualized

** R-Square measures the correlation between the benchmark and the fund

Since Inception FY15 FY16 FY17Return % 9.11% 14.55% 40.16%Benchmark % 4.64% 15.96% 42.91%

*Absolute Return





would be higher by Rs.0.4822/1.60% enhancing the YTD return to

-11.83% p.a.

SWWF Disclosure

Weighted average of 6-month KIBOR and KSE-100 index as per amount invested in equities and �xed income investments including cash & cash equivalent respectively

Fund Performance PIML - AAF

The investment objective of this fund is to earn competitive returns by investing in the various asset classes / instruments based on the market outlook.



PIML Asset Allocation Fund



Fund Details

Fund Type

Category

Benchmark

Inception Date

Dealing Days

Cut-o� Time

Pricing Mechanism

Management Fee

Load

Risk Pro�le

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Open End

Asset Allocation


12th April 2016


4.30 pm

Forward

2% p.a.

Front end 3%

Moderate to High


Leverage Nil




Nisha Ahuja


In the month of Oct'17, the fund posted return of -4.97% against the benchmark return of -3.8%, denoting underperformance of 117bps.

Major contribution to the fund's negative return came from its holding in INIL, LUCK, ENGRO and PKGS. The top �ve holdings of the fund

are NML, LUCK, PSO, ASL and MUGHAL The overall valuations have reached attractive levels across various sectors. . With macro risks

largely discounted in share prices, we believe downside risk is limited. In the near term, however, uncertain domestic politics and

headwinds on external account may keep equity risk premium high.


Credit Quality of Portfolio (as % of T.A.)

Oct.’17 Sept.’17

Oct. ‘17 Sept. ‘17


Salman H. Sheikh

Hamza Saboor

Basharatullah Khan

Nisha Ahuja


Fund Manager

Asif Iqbal

M. Saeed Khalid





Fund Statistics

Fund Objective

Fund returns are calculated NAV to NAV with dividends reinvested (excluding sales load)AM3+ by JCR-VIS (15 December 2016)

Top 10 Holdings (as % of T.A.) Symbol Oct. ‘17

Sector Allocation (as % of T.A.) Oct. ‘17 Sept. ‘17


Total Expense Ratio


PIML-AAF* BenchmarkFYTD -13.43% -8.14%CYTD -14.92% -9.52%12M Trailing -10.70% 2.01%Since Inception -8.51% 12.64%AAR-Since Inception -8.42% 3.04%Sep-17 0.71% 1.94%Oct-17 -4.97% -3.80%

Period FY17 FY18TDPerformance 2.74% -13.43%

Benchmark -8.90% -8.14%

Equity Securities 59.27% 59.48%Placement with banks 0% 0%Cash at Bank 34.74% 34.81%Others including receivables (NR) 6.00% 5.71%Total 100% 100%

59%

0%

35%

6%

Equity Securities

Placement with banks

Cash at Bank

AA- 35.00% 34.72%Other including recievables (NR) 65.30% 65.19%Total 100% 100%

ENGINEERING 9.94% 6.73%COMMERCIAL BANKS 8.54% 6.73%CEMENT 6.50% 6.95%TEXTILE COMPOSITE 5.57% 4.00%OIL & GAS MARKETING COMPANIES 4.33% 4.42%OTHERS 49.00% 28.56%

Nishat Mills Ltd NML 5.57%Lucky Cement Ltd LUCK 4.43%Pakistan State Oil PSO 4.33%Aisha Steel Mill Ltd ASL 3.67%Mughal Iron & Steel Ltd MUGHAL 3.41%MCB Ltd MCB 3.01%United Bank Ltd UBL 2.90%International Industries Ltd INIL 2.86%Synthetic Products Enterprises Ltd SPEL 2.83%Engro Corp Ltd ENGRO 2.67%

Net Assets (PKR mn) 195.16 NAV per Unit (PKR) 89.65Standard Deviation* 14.06%Sharpe Ratio* (1.25) Information Ratio -0.126*Annualized

Since Inception FY16 FY17Return % 2.87% 5.68%

Benchmark % 1.43% 17.68%

*Absolute Return


Months Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Feb-17 Sep-17 Oct-17Performance 0.13% 4.82% 2.56% -1.08% -0.66% 2.93% 2.51% -7.58% -2.52% -7.21% 0.71% -4.97%Benchmark 1.51% 6.45% 1.45% -0.07% -0.44% 1.82% 1.95% -5.79% -0.57% -6.16% 1.94% -3.80%

www.awtinvestments.com

Karachi O�ce:3rd Floor, Horizon Vista, Plot No. Commercial 1, Block No.4, Scheme No.5, Clifton, Karachi.

Board: (+92-21) 38658883

Islamabad O�ce:11-West, 1st Floor,Jinnah Avenue, Blue Area,Islamabad.Board: (+92-51) 2270471-3

Lahore O�ce:1st Floor, CommercialPlaza,852-D, Faisal Town,Akber Chowk, Lahore.Board: (+92-42)35860871-5

Head O�ce:AWT Plaza , 2nd �oor, Mall Road Rawalpindi.Tel: 051-9272379 (Direct)

AWT INVESTMENTS LIMITED

AWTINVESTMENTS

“A Joint venture of Army Welfare Trust and Pak Brunei Investment Company”

FUND MANAGER REPORT - AWT InvestmentsFund Manager Report - October 2017 Key Economic Indicators 2 of...

Documents

Transcript of FUND MANAGER REPORT - AWT InvestmentsFund Manager Report - October 2017 Key Economic Indicators 2 of...