Funds Under Management MCB-Arif Habib Savings and ...€¦ · United Bank Limited Bank Al Falah...
Transcript of Funds Under Management MCB-Arif Habib Savings and ...€¦ · United Bank Limited Bank Al Falah...
Funds Under Management
of
MCB-Arif Habib Savings and Investments Limited
AM2 Plus by PACRA
Quarterly ReportSeptember 30,2015
(Unaudited)
MCB PAKISTAN ASSET ALLOCATION FUND
(Formerly: MCB DYNAMIC ALLOCATION FUND)
CONTENTS
Fund�s Information
Report of the Directors of Management Company
Condensed Interim Statement of Assets and Liabilities
Condensed Interim Income Statement (Un-audited)
Condensed Interim Other Comprehensive Income (Unaudited)
Condensed Interim Distribution Statement (Un-audited)
Condensed Interim Statement of Movement in Unit Holders� Funds (Un-audited)
Condensed Interim Cash Flow Statement (Un-audited)
Notes to and forming part of the Condensed Interim Financial Statements (Un-audited)
155
156
158
159
160
161
162
163
164
154
FUND�S INFORMATION
155 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
MCB Bank Limited
Stadnard Chartered Bank Limited
United Bank Limited
Bank Al Falah Limited
Faysal Bank Limited
NIB Bank Limited
Company Secretary &
Chief Financial Officer
Human Resource &
Remuneration Committee
Central Despository Company of Pakistan Limited
CDC House, 99-B Block �B�, S.M.C.H.S,
Main Shahrah-e-Faisal, Karachi-74400
MCB-Arif Habib Savings and Investments Limited
Mr. Ahmed Jahangir
KPMG Taseer Hadi & Co.
Chartered Accountants
1st Floor, Sheikh Sultan Trust Building No. 2
Beaumont Road, Karachi - 75530.
AM2 + Management Quality Rating assigned by PACRA
Bawaney & Partners
3rd & 4th Floor, 68 C, Lane 13, Bukhari Commercial Area,
Phase VI, DHA, Karachi.
MCB-Arif Habib Savings and Investments Limited
REPORT OF THE DIRECTORS OF MANAGEMENT COMPANYFOR THE QUARTER ENDED SEPTEMBER 30, 2015
156 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
Dear Investor,
On behalf of the Board of Directors, I am pleased to present MCB Pakistan Asset Allocation Fund's (Formerly: MCB DynamicAllocation Fund) accounts review for the first quarter ended September 30th, 2015.
Economy and Money Market Overview
Benefits of more than 50 percent drop year on year in crude oil prices are visible in the macroeconomic score card positivelynudging the Balance of Payment, Foreign Exchange Reserves, Inflation, Interest rates and the Fiscal deficit. A net benefit ofmore than USD 1 billion is visible in the trade account during first two months of fiscal year which has offset the otherwiseslower exports. In the same period, Balance of Payment Account also remained stable where a near USD 394 million CurrentAccount deficit has been largely offset by Financial and Capital Account Inflows. During the same period last year, the countryhad a negative balance of payment of near USD 729 million mainly derived from a current account deficit of about USD 1,456million. With controlled current account deficit, the support of IMF tranche, CSF flows and multilateral flows, reserves remainedfirm near USD 18.5 billion (Sep-18) mark giving resilience to PKR which underwent relatively lesser depreciation in the fragileenvironment prevailing in the emerging markets. Although, the local fuel prices were cushioned by increase in taxes, yet thedrop in crude oil along with other commodity prices, kept the inflation contribution from food and other sectors at lower levels.During the first quarter, headline inflation average remained near 1.6% which along with strong external account position,created comfortable space for another 50 basis point cut in policy rate in September monetary policy. M2 growth remainedmildly negative on FY15 to date basis (18-Sep) which reflects the seasonal adjustment where NDA continually supported bya net govt. borrowing of about PKR 255 billion with a muted contribution from NFA in absence of any major net inflows.Money markets remained cautiously optimistic about further cut in discount rate and its sustainability. Yield Curve has thusrecently witnessed a slight increase in slope with longer dated bonds remaining relatively less responsive to the change in policyrate. Increasingly the markets continue to remain cautious primarily due to low quality of market liquidity which has beenreliant on OMO injections and the expected uptick in inflation as 2nd half FY16 inflation is expected to remain near 6% largelydue to low base effect.
Equities Market Overview
The bourse underperformed during the quarter with KSE 100 Index closing about 6.1% lower at the end of first quarter. Thequarter began with the overall positive momentum carried forward through FY-15 on the back of positive macroeconomicdirection and stable valuations at KSE. However after crossing 36,000 in early August, the index could not sustain the momentuminitially due to political noise while later after showing some recovery, the negative spell that started in global emerging marketstruck harder at the local bourse. Despite a growing stable macro environment and another 50 basis points cut in policy rate,concerns of foreign selling coupled with speculation and fears of a fall out of wider scope investigations into corruption casesfrom politicians to defaulted stock market brokers stalled the buying activity from investors. During the quarter, the participationat KSE remained commensurate KSE100 Index direction as the volumes that averaged above 400 million till early August,dropped to below 250 million shares during remaining quarter which fell further to 183 million in September, worst monthduring the quarter in which KSE 100 index shed more than 7%. Foreign investors withdrew more than USD 105 million duringthe quarter, about USD 82 million were withdrawn in the first two months while September remained relatively calm mainlydue to lack of liquidity and a bigger correction at the local bourse. Oil & Gas, Banks and Telecom with high concentration offoreign investors remained among the key laggards.
Fund Performance
The fund posted a return of -1.43% during the period under review while since inception return of fund stood at 61.38%. Thefund decreased its exposure towards equities from 27.5% to 25.6% at quarter end.
The fund took a cautious due to market volatility. During the quarter, the fund reduced its exposure in most of the sectors atquarter-end.
On the fixed income side, the exposure towards T-bills was reduced to book capital gains and the liquidity was routed towardsbank balances at attractive rates. Exposure in PIBs was reduced mainly from longer duration bonds to hedge fund returns againstreversal in monetary easing scenario. Exposure in TFCs was marginally reduced.
The Net Assets of the Fund as at September 30, 2015 stood at Rs. 3,132 million as compared to Rs 2,640 million as at June30, 2015 registering an increase of 18.64%. The Net Asset Value (NAV) per unit as at September 30, 2015 was Rs. 76.2741.
REPORT OF THE DIRECTORS OF MANAGEMENT COMPANYFOR THE QUARTER ENDED SEPTEMBER 30, 2015
157 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
Future Outlook
Oil prices have improved the economic scorecard significantly particularly the external account and inflation while providingan opportunity to address the chronic energy issues along with fiscal management. Most of the indicators have improvedpassively however critical indicators which still lack significant improvement include Credit off take and Capital Expenditurealong with FDI. Despite conducive macro environment, growth is yet to pick up and we hope the China Pakistan Corridorprovides the required growth impetus for investment to pick up. Government still remains significantly dependent on domesticborrowing to fund fiscal deficit and still progress has remained slow on key reforms including energy, privatization and revenuegeneration. Security situation has also improved which however remains a long and continuing challenge with potential risksto infrastructure plans going forward.
With stable macro environment and pace expected to pick up on the infrastructure projects, we expect the environment to remainconducive for capital markets. We expect the full year inflation to remain below 4.5% as remainder year inflation is expectedto gradually pick up and thus provides a stable interest rate outlook. Budgeted target for economic growth appear achievablewhile fiscal deficit may marginally exceed due to challenges in revenue collection despite significant reduction in subsidies.With Policy Rate at 6% and SBP committed to contain the money market volatility and liquidity through continuous OMOsupport, we expect stable environment for short term papers and medium term bonds while longer dated bonds would respondto further confirmations on external account including trade account and exchange rate which in turn would remain dependenton commodity prices and multilateral flows.
Volatility in global markets particularly emerging equity markets and commodities may affect the short term returns howeverdirect affect remains muted for Pakistan. Global slowdown poses a challenge for exports particularly textiles while significantlylower oil prices can affect the worker remittances from Middle East in particular. Given the steep drop in crude oil prices, therisks remain manageable however sustained degradation shall be a bigger challenge. A disconnect in current improvement inmacro economic variables and KSE performance offers an opportunity for investors to add equities which offer higher returnpotential on risk adjusted basis for long term investors. Improved outlook on GDP growth, Current Account and controlledfiscal balance in a low inflationary environment supports the case for equities where a PE of 9x prospective earnings alongwith a dividend yield of 6% with a regional valuation discount in excess of 32% affirms case for higher return potential. Weexpect infrastructure linked sectors including Cements, Steel, Power and Consumption driven sectors to drive returns whileOil & Gas and Banking Sectors remain attractive on long term valuations.
Acknowledgment
The Board is thankful to the Fund's valued investors, the Securities and Exchange Commission of Pakistan and the Trusteesof the Fund for their continued cooperation and support. The Directors also appreciate the efforts put in by the management team.
On behalf of Directors,
__________________Yasir QadriChief Executive OfficerDated: October 16, 2015
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIESAS AT SEPTEMBER 30, 2015
158 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
Chief Executive Officer Director
(Management Company)
For MCB-Arif Habib Savings and Investments Limited
ASSETS
Balances with bank
Investments
Dividend and Profit receivables
Receivable from National Clearing Company of Pakistan Limited
Fair value of derivative asset
Advances,deposits and prepayments
Total assets
LIABILITIES
Payable to the Management Company
Payable to Central Depository of Pakistan Limited - Trustee
Annual fee payable to Securities and Exchange Commission of Pakistan
Accrued and other liabilities
Total liabilities
NET ASSETS
Unit holders� fund
NUMBER OF UNITS IN ISSUE
NET ASSET VALUE PER UNIT
These annexed notes from 1 to 11 form an integral part of these financial statements.
Unaudtied Audtied
NoteSeptember 30, June 30,
2015
978,320 252,325
6 2,189,662 2,366,195
25,775 52,117
23,985 41,067
- 1,257
191 4,124
3,217,932 2,717,085
9,331 14,736
388 297
727 1,326
7 75,857 61,025
86,303 77,384
3,131,629 2,639,701
3,131,629 2,639,701
41,057,586 34,114,128
Rupees
76.27 77.38
(Rupees in '000)
Number of units
2015
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)FOR THE QUARTER ENDED SEPTEMBER 30, 2015
159 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
Chief Executive Officer Director
(Management Company)
For MCB-Arif Habib Savings and Investments Limited
INCOME
Capital (loss) / gain on sale of investments
Dividend income
Profit on bank deposits and term deposit receipts
Income from government securities
Income from Term Finance Certificates
Income from spread transactions
Other Income
Net unrealised (diminution) in the fair value of future contracts
Net unrealised (diminution) / appreciation on re-measurement of investments classified as
'financial assets at fair value through profit or loss'
Total Income
EXPENSES
Remuneration of the Management Company
Sindh sales tax and federal excise duty on remuneration of the Management Company
Remuneration of the Trustee
Annual fee - Securities and Exchange Commission of Pakistan
Brokerage and settlement charges
Auditors' remuneration
Other expenses
Net Income from operating activities
Element of income / (loss) and capital gains / (losses) included in
the prices of units issued less those in units redeemed
- from realized / unrealized capital gain
- from other income
Provision for Workers' Welfare Fund
Net Income for the period before taxation
Taxation
Net income for the period after taxation
Earning per Unit (EPU)
These annexed notes from 1 to 11 form an integral part of these financial statements.
Unaudited Unaudited
Note September 30,
2015
September 30,
2014
(17,763) 10,393
8,802 1,369
4,132 5,224
22,210 10,084
225 756
2,392 -
15,885 6
35,884 27,832
(1,257) -
(2,759) 92
31,867 27,924
15,315 3,997
4,938 1,335
1,159 400
727 190
1,417 1,295
226 158
259 102
24,042 7,477
7,825 20,447
5,475 293
(4,299) (504)
1,176 (211)
7.2 - (405)
9,001 19,831
8 -
9,001 19,831
(Rupees in '000)
-
CONDENSED INTERIM OTHER COMPREHENSIVE INCOME (UNAUDITED)FOR THE QUARTER ENDED SEPTEMBER 30, 2015
160 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
Chief Executive Officer Director
(Management Company)
For MCB-Arif Habib Savings and Investments Limited
Net income for the period after taxation
Net unrealised (dimunition) / appreciation on re-measurement of investments
classified as 'available for sale'
Total comprehensive (loss) / income for the period
These annexed notes from 1 to 11 form an integral part of these financial statements.
Unaudited Unaudited
September 30,
2015
September 30,
2014
9,001 19,831
(55,225) 1,714
(46,224) 21,545
(Rupees in '000)
CONDENSED INTERIM DISTRIBUTION STATEMENT (UNAUDITED)FOR THE QUARTER ENDED SEPTEMBER 30, 2015
161 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
Chief Executive Officer Director
(Management Company)
For MCB-Arif Habib Savings and Investments Limited
Undistributed loss brought forward
Distributions to the unit holders of the Fund:
Element of (loss) / income and capital (losses) / gains included in
the prices of units issued less those in units redeemed - amount
forms part of the unit holders' fund
Total Comprehensive (loss) / income for the period
Undistributed loss carried forward
These annexed notes from 1 to 11 form an integral part of these financial statements.
Unaudited Unaudited
September 30,
2015
September 30,
2014
(770,383) (304,929)
(155,849) 1,583
(46,224) 21,545
(972,456) (281,801)
(Rupees in '000)
CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS� FUND (UNAUDITED)FOR THE QUARTER ENDED SEPTEMBER 30, 2015
162 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
Chief Executive Officer Director
(Management Company)
For MCB-Arif Habib Savings and Investments Limited
Net assets at beginning of the period
Issue of 13,396,440 (2014: 1,005,931) units
Redemption of 6,452,982 (2014: 1,015,416) units
Element of (income) / loss and capital (gains) / losses included in
prices of units issued less those in units redeemed
- amount representing (income) / loss and capital (gains) / losses -
transferred to income statement
- from realized / unrealized capital gain
- from other income
- amount representing loss that forms part of unit holders' fund -
transferred to distribution statement
Element of (loss) / income and capital (loss) / gain included in prices of units
issued less those in units redeemed - amount representing unrealised income
Net unrealised (diminution) / appreceationon re-measurement of investment
classified as ' financial assets at fair value through profit or loss'
Capital (loss) / gain on sale of investments -net
Profit from other operating activities
Net unrealised (diminution) / appreciation in fair value of investments classified as
'at available for sale'
Net assets as at the end of the period
These annexed notes from 1 to 11 form an integral part of these financial statements.
Unaudited Unaudited
September 30, September 30,
2014
2,639,701 779,117
1,036,448 73,054
(497,120) (73,961)
539,328 (907)
293(5,475)
4,299
155,849 (1,583)
154,673 (1,372)
(155,849) 1,583
(2,759) 92
(17,763) 10,393
29,523 9,346
9,001 19,831
(55,225) 1,714
3,131,629 798,252
(Rupees in '000)
2015
(504)
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)FOR THE QUARTER ENDED SEPTEMBER 30, 2015
163 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
Chief Executive Officer Director
(Management Company)
For MCB-Arif Habib Savings and Investments Limited
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income for the period before taxation
Adjustments for non-cash charges and other items:
Net unrealised diminution on remeasurement of investment classified as
'financial assets at fair value through profit or loss'
Element of (income) / loss and capital (gains) / losses included in
the prices of units issued less those in units redeemed
- from realized / unrealized capital gain
- from other income
(Increase) / decrease in assets
Investments - net
Receivable against sale of Investment
Dividend and profit receivable
Advances, deposits prepayments and other receivable
Increase / (decrease) in liabilities
Payable to Management Company
Annual fee payable to Securities and Exchange Commission of Pakistan
Accrued and other liabilities
Net cash generated from operating activities
CASH FLOWS FROM FINANCING ACTIVITIES
Net receipts from issue of units
Net payments on redemption of units
Distribution during the period
Net cash generated from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
These annexed notes from 1 to 11 form an integral part of these financial statements.
Unaudited Unaudited
September 30, September 30,
9,001 19,831
4,016 (92)
(5,475) (293)
4,299 504
11,842 19,950
117,292 16,480
(0) 98,942
26,342 7,733
22,273 (38,115)
165,906 85,039
9,331 (407)
727 189
(1,139) 1,410
8,919 1,193
186,667 106,183
1,036,448 73,054
(497,120) (73,961)
- -
539,328 (907)
725,995 105,276
252,325 96,667
978,320 201,943
(Rupees in '000)
2015 2014
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE QUARTER ENDED SEPTEMBER 30, 2015
164 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
1 LEGAL STATUS AND NATURE OF BUSINESS
MCB Pakistan Asset Allocation Fund ( formerly : MCB Dynamic Allocation Fund) ["the Fund"] was established under
the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules) and Non Banking
Finance Companies and Notified Entities Regulations, 2007 and was approved as an open end investment scheme by
the Securities and Exchange Commission of Pakistan (SECP) on 17 December 2007. It was constituted under a Trust
Deed dated 22 November 2007 between MCB Asset Management Company Limited (MCB-AMC) as the Management
Company, a company incorporated under the Companies Ordinance, 1984 and Central Depository Company of Pakistan
Limited as the Trustee, also incorporated under the Companies Ordinance, 1984.
Pursuant to merger of MCB Asset Management Limited and Arif Habib Investment Limited, the name of the Management
Company has been changed from Arif Habib Investment Limited to MCB-Arif Habib Savings and Investments Limited.
The Management company of the Fund has been licensed to act as Asset Management Company under the NBFC Rules
through a certificate of registration issued by the SECP. The registered office of the Management Company is situated
at 8th floor, Technocity Corporate Tower, Hasrat Mohani Road, Karachi.
The Fund is an open ended mutual fund and offers units for public subscription on a continuous basis. The units of the
Fund can be transferred to / from the funds managed by the management company and can also be redeemed by
surrendering to the Fund. The units are listed on the Lahore Stock Exchange.
Under circular 7 dated 6 March 2009 issued by the SECP, the Fund is categorised as an Asset Allocation Scheme. The
Management Company is in the process of making requisite amendments in relation to categorisation, investment
objectives and relevant benchmark in the constitutive documents of the Fund.
Title to the assets of the Fund is held in the name of Central Depository Company of Pakistan Limted as Trustee of the
Fund.
The Pakistan Credit Rating Agency (PACRA) Limited has assigned an asset manager rating of 'AM2+' -positive outlook
to the Management Company and Fund performance ranking of 4-star for Short term and 5-star for long term
2 BASIS OF PREPARATION
2.1 Statement of compliance
This condensed interim financial information has been prepared in accordance with the requirements of the International
Accounting Standard 34 - Interim Financial Reporting and provisions of and directives issued under the Companies
Ordinance, 1984, the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBC Rules),
the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the NBFC Regulations) and directives
issued by the Securities and Exchange Commission of Pakistan (SECP). In case where requirements differ, the provisions
of or directives issued under the Companies Ordinance, 1984,the Non-Banking Finance Companies (Establishment and
Regulation) Rules, 2003 (the NBFC Rules), the Non-Banking Finance Companies and Notified Entities Regulations,
2008 (the NBFC Regulations) and directives issued by the Securities and Exchange Commission of Pakistan (SECP)
have been followed.
This condensed interim financial information does not include all the information and disclosures required for full
annual financial statements and should be read in conjunction with the financial statements for the year ended 30 June
2015.
This condensed interim financial information is unaudited. The disclosures made in this condensed interim financial
information have, however, been limited based on the requirements of the International Accounting Standard 34: 'Interim
Financial Reporting'. The Directors of the asset management company declare that this condensed interim financial
information give a true and fair view of the Fund.
The comparatives in the condensed interim statement of assets and liabilities presented in the condensed interim financial
information as at 30 September 2015 have been extracted from the audited financial statements of the Fund for the year
ended 30 June 2015, where as the comparative in condensed interim income statement, condensed interim distribution
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE QUARTER ENDED SEPTEMBER 30, 2015
165 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
statement, condensed interim statement of movement in unit holders' fund and condensed interim cash flow statement
are extracted from unaudited condensed interim financial information for the period ended 30 September 2014
2.2 Basis of measurement
This condensed interim financial information have been prepared on the basis of historical cost convention except that
investments have been included at fair value.
2.3 Functional and presentation currency
This condensed interim financial information is presented in Pak Rupees which is the functional and presentation currency
of the Fund and rounded to the nearest thousand rupees.
3 SIGNIFICANT ACCOUNTING POLICIES
The accounting policies adopted for the preparation of these condensed interim financial statements are the same as those
applied in the preparation of the annual published financial statements of the Fund for the year ended June 30, 2015.
4 ESTIMATES AND JUDGEMENTS
The preparation of condensed interim financial information requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income
and expenses. Actual results may differ from these estimates. In preparing this condensed interim financial information,
the significant judgments made by management in applying accounting policies and the key sources of estimation
uncertainty were the same as those that applied to financial statements as at and for the year ended 30 June 2015.
5 FINANCIAL RISK MANAGEMENT
The Fund's financial risk management objectives and policies are consistent with that disclosed in the financial statements
as at and for the year ended 30 June 2015.
2015
Unaudited Audited
September 30,
2015
June 30,
6.1.1 7,817 281,708
6.1.2 10,062 10,007
6.1.3 366,656 522,200
384,535 813,915
6.2.1 817,406 733,205
6.2.2 987,721 819,075
1,805,127 1,552,280
2,189,662 2,366,195
(Rupees in '000)
Note
6
6.1
6.2
INVESTMENTS
Held for trading investments
- Quoted equity securities
- Term finance certificates - listed
- Government Securities
Available for sale investments
- Quoted equity securities
- Government Securities
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE QUARTER ENDED SEPTEMBER 30, 2015
166 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
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--
--
0.0
0%
0.0
0%
0.0
0%
Fau
ji F
erti
lize
r C
om
pan
y L
imit
ed-
50
0-
50
0-
--
-0
.00
%0
.00
%0
.00
%
--
--
-
Fo
od
& P
erso
na
l C
are
Pro
du
cts
En
gro
Fo
od
s L
imit
ed4
2,5
00
70
,50
0-
11
3,0
00
--
--
0.0
0%
0.0
0%
0.0
0%
--
-0
.00
%0
.00
%
Oil
& G
as
Ex
po
lora
tio
n C
om
pa
nie
s
Oil
& G
as D
evel
opm
ent
Com
pan
y L
imit
ed7
6,7
00
21
,50
0-
35
,70
06
2,5
00
10
,94
77
,79
2(3
,15
5)
0.2
5%
0.3
6%
0.0
0%
Pak
ista
n O
ilfi
elds
Lim
ited
-5
,90
0-
5,9
00
--
--
0.0
0%
0.0
0%
0.0
0%
Pak
ista
n P
etro
leum
Lim
ited
18
,00
02
1,0
00
-3
9,0
00
--
--
0.0
0%
0.0
0%
0.0
0%
10
,94
77
,79
2(3
,15
5)
0.2
5%
0.3
6%
Ap
pre
cia
tio
n/
(dim
inu
tio
n)
----
----
----
-(R
up
ees
in '
00
0)-
----
----
--
Na
me
of
inv
este
e co
mp
an
y
Nu
mb
er
of
sha
res
Ba
lan
ce a
s a
t S
ep
tem
ber
30
, 2
01
5
Ma
rk
et
va
lue
as
a
per
cen
ta
ge o
f n
et
ass
ets
Ma
rk
et
va
lue
as
a
per
cen
ta
ge o
f
tota
l
inves
tme
nt
Per
cen
ta
ge o
f
pa
id u
p
ca
pit
al
of
inv
este
e
com
pa
ny
hel
d
As
at
Ju
l y 1
,
20
15
Pu
rch
ase
s
du
rin
g t
he
perio
d
Ma
rk
et
va
lue
Dis
po
sed
off
du
rin
g
the p
erio
d
Bon
us/
rig
hts
issu
e
As
at
Sep
tem
ber
30
, 2
01
5
Ca
rry
ing
va
lue
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE QUARTER ENDED SEPTEMBER 30, 2015
167 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
Oil
An
d G
as
Ma
rket
ing
Co
mp
an
ies
Pak
ista
n S
tate
Oil
Com
pan
y L
imit
ed3
5,5
00
19
,50
0-
55
,00
0-
--
-0
.00
%0
.00
%0
.00
%
Sui
South
ern G
as C
om
pan
y L
imit
ed1
63
,50
09
6,5
00
-2
60
,00
0-
--
-0
.00
%0
.00
%0
.00
%
--
-0
.00
%0
.00
%
Po
wer
Gen
era
tio
n &
Dis
trib
uti
on
K-E
lect
ric
Lim
ited
-1
66
,00
0-
16
6,0
00
--
--
0.0
0%
0.0
0%
0.0
0%
--
-0
.00
%0
.00
%
To
tal
as
at
30
sep
tem
ber
20
15
10
,97
57
,81
7(3
,15
8)
0.2
5%
0.3
6%
To
tal
- J
un
e 3
0,
20
15
28
0,0
35
28
1,7
08
1,6
73
10
.67
%11
.91
%
Ma
rk
et
va
lue
as
a
per
cen
ta
ge o
f
tota
l
inves
tme
nt
Per
cen
ta
ge o
f
pa
id u
p
ca
pit
al
of
inv
este
e
com
pa
ny
hel
d
As
at
Ju
ly 1
,
20
15
Pu
rch
ase
s
du
rin
g t
he
yea
r
Bon
us/
rig
hts
issu
e
Dis
po
sed
off
du
rin
g
the
yea
r
As
at
Sep
tem
ber
30
, 2
01
5
Ca
rry
ing
va
lue
Ma
rket
va
lue
Ap
pre
cia
tio
n/
(dim
inu
tio
n)
Na
me
of
inv
este
e co
mp
an
y
Nu
mb
er
of
sha
res
Ba
lan
ce a
s a
t S
ep
tem
ber
30
, 2
01
5
Ma
rk
et
va
lue
as
a
per
cen
ta
ge o
f n
et
ass
ets
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE QUARTER ENDED SEPTEMBER 30, 2015
168 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
6.1
.2T
erm
fin
an
ce c
erti
fica
tes
- li
sted
Cer
tifi
cate
s h
avin
g a
fac
e v
alu
e o
f R
s. 5
,00
0 e
ach
un
less
sta
ted
oth
erw
ise
Ban
k A
lfal
ah L
imit
ed-V
2
,00
0 -
- 2
,00
0 1
0,0
05
1
0,0
62
5
7
To
tal
- S
epte
mb
er 3
0, 2
01
5 1
0,0
05
1
0,0
62
5
7
To
tal
- Ju
ne
30
, 2
01
5 1
0,1
24
1
0,0
07
(1
17
)
6.1
.3G
over
nm
ent
Sec
uri
ties
Tre
asu
ry B
ills
Tre
asu
ry B
ills
- 2
Mo
nth
s-
30
0,0
00
.00
30
0,0
00
.00
- -
--
Tre
asu
ry B
ills
- 3
Mo
nth
s4
37
,50
01
,07
5,0
00
1
,48
7,5
00
2
5,0
00
2
5,0
00
2
5,0
00
-
Tre
asu
ry B
ills
- 6
Mo
nth
s2
5,0
00
70
0,0
00
52
5,0
00
2
00
,00
0 1
99
,47
5 1
99
,50
5 3
0
Tre
asu
ry B
ills
- 1
2 M
on
ths
-3
00
,00
01
50
,00
0 1
50
,00
0 1
41
,83
9 1
42
,15
1 3
12
To
tal
- S
epte
mb
er 3
0, 2
01
5 3
66
,31
4 3
66
,65
6 3
42
To
tal
- Ju
ne
30
, 2
01
5 4
57
,13
1 4
57
,03
1(1
00
)
PIB
- 5
Yea
rs6
5,0
00
-6
5,0
00
-
-
-
-
-
-
-
Tota
l in
ves
tmen
ts i
n G
over
nm
ent
Sec
uri
ties
- S
epte
mb
er 2
015
3
66
,31
4 3
66
,65
6 3
42
To
tal
inv
estm
ents
in
Go
ver
nm
ent
Sec
uri
ties
- Ju
ne
20
15
5
22
,95
7 5
22
,20
0(7
57
)
Nam
e of
inves
tee
com
pan
y
Nu
mb
er o
f C
erti
fica
tes
As
at
Ju
ly
01
, 2
01
5
Pu
rch
ase
d
du
rin
g t
he
yea
r
Dis
po
sed
du
rin
g t
he
yea
r
As
at
Sep
tem
ber
30,
20
15
Ba
lan
ce a
s a
t S
epte
mb
er 3
0, 2
01
5
Ap
pre
cia
tio
n/
(Dim
inu
tion
)M
ark
et v
alu
eC
ost
22
.06
%
Ma
rket
va
lue
as
a
per
cen
tag
e o
f to
tal
Inves
tmen
ts
Ma
rket
va
lue
as
a
per
cen
tag
e o
f to
tal
Inves
tmen
ts
6.5
0%
51
.88
%
19
.79
%
---
----
----
----
----
----
(Ru
pee
s in
'0
00
)---
----
----
----
----
----
----
-
Nam
e of
inves
tee
com
pan
y
----
----
- (R
up
ees
in '
00
0)-
----
----
As
at
Ju
ly
01
, 2
01
5
Pu
rch
ase
d
du
rin
g t
he
yea
r
Dis
po
sed
/Ma
t
ure
d d
uri
ng
the
yea
r
As
at
Sep
tem
ber
30,
20
15
Ap
pre
cia
tio
n/
(Dim
inu
tion
)M
ark
et v
alu
eC
ostB
ala
nce
as
at
Sep
tem
ber
30
, 2
01
5F
ace
valu
e
Ma
rket
va
lue
as
a p
erce
nta
ge
of
net
ass
ets
0.8
0%
6.3
7%
11.7
1%
17
.32
%
95
.35
%
19
.31
%
4.5
4%
36
.97
%
0.0
0%
0.0
0%
0.0
0%
0.0
0%
11.7
1%
95
.35
%
0.0
0%
0.0
0%
0.3
2%
0.3
2%
3.1
7%
2.6
2%
2.6
2%
4.8
3%
Ma
rket
va
lue
as
a p
erce
nta
ge
of
net
ass
ets
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE QUARTER ENDED SEPTEMBER 30, 2015
169 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
Au
tom
ob
ile
Ass
emb
ler
81
,25
04
9,6
00
-3
3,5
20
97
,33
01
20
,72
19
7,4
66
(23
,25
5)
3.1
1%
4.4
5%
0.1
2
Mil
lat
Tra
cto
rs L
imit
ed7
0,9
00
--
-7
0,9
00
43
,48
64
4,2
90
80
41
.41
%2
.02
%0
.16
16
4,2
07
14
1,7
56
(22
,45
1)
4.5
3%
Au
tom
ob
ile
Part
s &
Acc
esso
ries
Th
al L
imit
ed*
-5
0,0
00
--
50
,00
01
6,0
16
12
,65
0(3
,36
6)
0.4
0%
0.5
8%
0.0
6
16
,01
61
2,6
50
(3,3
66
)0
.40
%
Ca
ble
& E
lect
rica
l G
oo
ds
Pak
Ele
ktr
on
Lim
ited
40
2,0
00
10
0,0
00
-5
02
,00
0-
--
-0
.00
%0
.00
%0
.00
--
-0
.00
%
Con
stru
ctio
n &
Mate
rials
Ch
erat
Cem
ent
Lim
ited
-6
5,5
00
--
65
,50
05
,83
45
,64
7(1
87
)0
.18
%0
.26
%0
.04
D.G
. K
han
Cem
ent
Lim
ited
30
0,0
00
20
2,5
00
-5
02
,50
0-
--
-0
.00
%0
.00
%0
.00
-3
00
,00
0-
30
0,0
00
--
--
0.0
0%
0.0
0%
0.0
0
Pak
cem
Lim
ited
30
8-
--
30
86
6-
0.0
0%
0.0
0%
0.0
0
5,8
40
5,6
53
(18
7)
0.1
8%
Com
mer
cial
Ban
ks
Hab
ib B
ank
Lim
ite d
94
--
-9
41
61
93
0.0
0%
0.0
0%
0.0
0U
nit
ed B
ank
Lim
ited
-2
5,0
00
--
25
,00
04
,13
33
,66
8(4
65
)0
.12
%0
.17
%0
.00
4,1
49
3,6
87
(46
2)
0.1
2%
En
gin
eeri
ng
Inte
rnat
ion
al S
teel
s L
imit
ed1
,00
0,0
00
--
-1
,00
0,0
00
28
,06
02
6,2
20
(1,8
40
)0
.84
%1
.20
%0
.23
28
,06
02
6,2
20
(1,8
40
)0
.84
%
Fer
tili
zer
En
gro
Fer
tili
zer
Lim
ited
-5
00
,00
0-
-5
00
,00
04
9,0
89
44
,90
0(4
,18
9)
1.4
3%
2.0
5%
0.0
4E
ng
ro C
orp
ora
tio
n L
imit
ed-
80
,00
0-
79
,80
02
00
64
60
(4)
0.0
0%
0.0
0%
0.0
0
48
9,0
00
55
0,0
00
-2
05
,00
08
34
,00
03
6,5
42
38
,59
82
,05
61
.23
%1
.76
%0
.04
-6
00
,00
0-
-6
00
,00
03
6,3
51
36
,09
0(2
61
)1
.15
%1
.65
%0
.06
54
2,6
00
--
-5
42
,60
07
7,4
45
66
,98
4(1
0,4
61
)2
.14
%3
.06
%0
.04
19
9,4
91
18
6,6
32
(12
,85
9)
5.9
6%
Food
& P
erso
nal
Care
Pro
du
cts
En
gro
Fo
od
s L
imit
e d-
50
,00
0-
-5
0,0
00
8,3
15
7,3
68
(94
7)
0.2
4%
0.3
4%
0.0
1S
hez
an I
nte
rnat
ion
al L
imit
ed4
,65
0-
--
4,6
50
5,8
82
3,5
34
(2,3
48
)0
.11
%0
.16
%0
.06
14
,19
71
0,9
02
(3,2
95
)0
.35
%
Gla
ss &
Cer
am
ics
53
5,5
00
--
-5
35
,50
03
1,3
17
38
,79
77
,48
01
.24
%1
.77
%0
.73
31
,31
73
8,7
97
7,4
80
1.2
4%
Carr
yin
g v
alu
eM
ark
et v
alu
eN
am
e of
inves
tee
com
pan
y
Nu
mb
er o
f sh
are
sB
ala
nce
as
at
Sep
tem
ber
30
, 2
01
5
As
at
Ju
ly
01
, 2
01
5
Pu
rch
ase
s
du
rin
g t
he
yea
r
Bon
us/
rig
hts
issu
e
Dis
po
sed
off
du
rin
g t
he
yea
r
As
at
Sep
tem
ber
30
, 2
01
5
---
----
----
----
----
----
(Ru
pee
s in
'0
00
)---
----
----
---
Per
cen
tag
e
of
paid
up
cap
ita
l o
f
inv
este
e
com
pan
y
hel
d
(per
cen
tag
e
%)
App
reci
atio
n/
(dim
inut
ion)
Ma
rket
va
lue
as
a p
erce
nta
ge
of
net
ass
ets
Mark
et
va
lue
as
a
per
cen
tag
e
of
tota
l
inves
tmen
t
Avail
ab
le f
or
sale
in
ves
tmen
ts6.2
6.2
.1Q
uote
d e
qu
ity s
ecu
riti
es
Ind
us
Mo
tors
Co
mp
any
Lim
ited
Map
le L
eaf
Cem
ent F
acto
ry L
imite
d
Fat
ima
Fer
tili
zer
Com
pany
Lim
ited
Fau
ji F
erti
lize
r B
in Q
asim
Lim
ited
Fau
ji F
erti
lize
r C
ompa
ny L
imit
ed
Tar
iq G
lass
In
du
stri
es L
imit
ed
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE QUARTER ENDED SEPTEMBER 30, 2015
170 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
-2
95
,00
0-
-2
95
,00
01
5,7
16
15
,36
1(3
55
)0
.49
%0
.70
%0
.08
50
,00
05
0,0
00
--
10
0,0
00
22
,83
12
1,8
67
(96
4)
0.7
0%
1.0
0%
0.0
8
38
,54
73
7,2
28
(1,3
19
)1
.19
%
20
0,5
00
33
9,3
00
-2
00
,00
03
39
,80
04
5,5
15
42
,36
3(3
,15
2)
1.3
5%
1.9
3%
0.0
1
15
5,7
00
--
15
0,0
00
5,7
00
2,2
37
1,6
75
(56
2)
0.0
5%
0.0
8%
0.0
0
30
0,0
00
--
30
0,0
00
--
--
0.0
0%
0.0
0%
0.0
0
47
,75
24
4,0
38
(3,7
14
)1
.41
%
88
,20
02
00
,00
0-
-2
88
,20
09
1,6
67
83
,11
4(8
,55
3)
2.6
5%
3.8
0%
0.1
1
-5
08
,50
0-
-5
08
,50
01
8,7
76
15
,98
2(2
,79
4)
0.5
1%
0.7
3%
0.0
8
110
,44
39
9,0
96
(11
,34
7)
3.1
6%
80
,00
02
00
,00
0-
94
,15
0-
10
6,6
69
99
,15
1(7
,51
8)
3.1
7%
4.5
3%
0.2
1
10
6,6
69
99
,15
1(7
,51
8)
3.1
7%
75
,50
0-
-7
5,0
00
50
04
64
93
0.0
0%
0.0
0%
0.0
0
-3
28
,00
0-
32
8,0
00
--
--
0.0
0%
0.0
0%
0.0
0
80
0,0
00
19
,00
0-
19
,00
08
00
,00
02
7,8
112
3,3
36
(4,4
75
)0
.75
%1
.07
%0
.21
1,7
75
,50
0-
--
1,7
75
,50
05
5,5
10
49
,62
5(5
,88
5)
1.5
8%
2.2
7%
0.4
8
83
,36
77
3,0
10
(10
,35
7)
2.3
3%
2,2
00
--
2,2
00
--
--
0.0
0%
0.0
0%
0.0
0
--
-0
.00
%
-7
84
,00
0-
-7
84
,00
01
4,4
32
12
,79
5(1
,63
7)
0.4
1%
0.5
8%
0.0
8
39
0,3
68
--
-3
90
,36
81
4,1
95
25
,79
211
,59
70
.82
%1
.18
%0
.35
28
,62
73
8,5
87
9,9
60
1.2
3%
27
.76
%
* P
ar v
alue
Rs.
5/-
eac
h s
har
e
Carr
yin
g v
alu
eM
ark
et v
alu
eN
am
e of
inves
tee
com
pan
y
Nu
mb
er o
f sh
are
sB
ala
nce
as
at
Sep
tem
ber
30
, 2
01
5
As
at
Ju
ly
01
, 2
01
5
Pu
rch
ase
s
du
rin
g t
he
yea
r
Bon
us/
rig
hts
issu
e
Dis
po
sed
off
du
rin
g t
he
yea
r
As
at
Sep
tem
ber
30
, 2
01
5
---
----
----
----
----
----
(Ru
pee
s in
'0
00
)---
----
----
---
Per
cen
tag
e
of
paid
up
cap
ita
l o
f
inv
este
e
com
pan
y
hel
d
(per
cen
tag
e
%)
App
reci
atio
n/
(dim
inut
ion)
Ma
rket
va
lue
as
a p
erce
nta
ge
of
net
ass
ets
Mark
et
va
lue
as
a
per
cen
tag
e
of
tota
l
inves
tmen
t
Inves
tmen
tsin
clude
shar
esw
ith
mar
ket
val
ue
aggre
gat
ing
to2
7.0
9m
illi
on
that
hav
eb
een
ple
dg
edw
ith
Nat
ional
Cle
arin
gC
om
pan
yo
fP
akis
tan
Lim
ited
for
guar
ante
eing
sett
lem
ent
of
Fund's
trad
esin
term
s o
f C
ircu
lar
no
. 11
dat
ed O
cto
ber
23
, 2
00
7 i
ssu
ed b
y t
he
SE
CP.
Oil
& G
as D
evel
opm
ent C
ompa
ny L
imite
dP
akis
tan
Oil
fiel
ds
Lim
ited
Pak
ista
n P
etro
leu
m L
imit
ed
Pak
ista
n S
tate
Oil
Co
Lim
ited
Sui
Nor
ther
n G
as P
ipel
ines
Lim
ited
Hub P
ow
er C
om
pan
y L
imit
edK
ot A
ddu
Pow
er C
ompa
ny L
imit
ed
Tota
l -
Sep
tem
ber
30, 2015
To
tal
- J
un
e 3
0, 2
01
5
Syst
ems
Lim
ited
Hum
Net
work
Lim
ited
Tec
hn
olo
gy &
Com
mu
nic
ati
on
s
Ref
iner
yN
atio
nal
Ref
iner
y L
imit
ed
Pak
gen
Po
wer
Lim
ited
Lal
pir
Po
wer
Lim
ited
Pow
er G
ener
ati
on
& D
istr
ibu
tion
Pa
per
An
d B
oa
rd
Oil
An
d G
as
Mark
etin
g C
om
pan
ies
Oil
& G
as
Exp
olo
rati
on
Com
pan
ies
IGI
Insu
ran
ce L
imit
edA
dam
jee
Insu
ranc
e C
ompa
ny L
imite
dIn
sura
nce
Pac
kag
es L
imit
ed
8
78
,68
2 8
17
,40
6 (6
1,2
76
)2
6.1
0%
7
16
,85
97
33
,20
51
6,3
46
27
.76
%3
0.9
9%
37
.33
%
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE QUARTER ENDED SEPTEMBER 30, 2015
171 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
6.2
.2G
over
nm
ent
Sec
uri
ties
PIB
-3 y
ears
-1
50
,00
0 -
1
50
,00
0 1
54
,66
0 1
55
,82
1 1
,16
1
PIB
-5 y
ears
40
0,0
00
47
5,0
00
1
75
,00
0 7
00
,00
0 7
72
,26
6 7
74
,48
6 2
,22
0
PIB
-10
yea
rs3
50
,00
0-
30
0,0
00
5
0,0
00
5
7,6
99
5
7,4
14
(2
85
)
Tota
l -
Sep
tem
ber
30, 2014
9
84
,62
5 9
87
,72
1 3
,09
6
To
tal
- Ju
ne
30
, 2
01
5 8
38
,37
9 8
19
,07
51
9,3
04
)
7A
CC
RU
ED
AN
D O
TH
ER
LIA
BIL
ITIE
S
Sep
tem
ber
30,
20
15
(Un
au
dit
ed)
Jun
e 3
0,
20
15
(au
dit
ed)
Pro
vis
ion
fo
r F
eder
al E
xci
se D
uty
an
d r
elat
ed t
axes
on
man
agem
ent
fee
10
,36
77
,57
3
Pro
vis
ion
fo
r F
eder
al E
xci
se D
uty
on
sal
es l
oad
12
,33
59
,80
7
Pro
vis
ion
fo
r W
ork
ers'
Wel
fare
Fu
nd
13
,73
21
3,7
32
Wit
hh
old
ing
tax
pay
able
(d
edu
cted
on
div
iden
d
dis
trib
uti
on
)2
68
23
,52
7
Wit
hh
old
ing
tax
pay
able
(d
edu
cted
on
cap
ital
gai
ns)
88
3,1
75
Au
dit
ors
' rem
un
erat
ion
pay
able
17
04
46
Bro
ker
a ge
pay
able
1,1
64
2,5
84
Oth
ers
37
,73
31
81
75
,85
76
1,0
25
31
.54
%
Nam
e of
inves
tee
com
pan
y
Fa
ce v
alu
eB
ala
nce
as
at
Sep
tem
ber
30
, 2
01
5
---
----
----
----
----
----
(Ru
pee
s in
'0
00
)---
----
----
----
----
----
----
-
4.9
8%
7.1
2%
1.8
3%
2.6
2%
As
at
Ju
ly
01
, 2
01
5
Pu
rch
ase
d
du
rin
g t
he
yea
r
Dis
po
sed
/Ma
t
ure
d d
uri
ng
the
yea
r
As
at
Sep
tem
ber
30,
20
15
Cost
45
.11
%
31
.03
%3
4.6
2%
Ma
rket
va
lue
as
a p
erce
nta
ge
of
net
ass
ets
Ma
rket
va
lue
as
a
per
cen
tag
e o
f to
tal
Inves
tmen
tsM
ark
et v
alu
eA
pp
reci
ati
on
/
(Dim
inu
tion
)
24
.73
%3
5.3
7%
7.1
7.2
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE QUARTER ENDED SEPTEMBER 30, 2015
172 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
7.1 Provision for Federal Excise Duty and Related Taxes
The Finance Act, 2013 introduced an amendment to Federal Excise Act 2005 where by Federal Excise Duty (FED) has
been imposed at the rate of 16% of the services rendered by assets management companies .In this regard, a Constitutional
Petition has been filed by certain Collective Investment Schemes (CISs) through their trustees in the Honourable Sindh
High Court (SHC), challenging the levy of Federal Excise Duty on Asset Management Services after the eighteenth
amendment. The SHC in its short order dated 4 September 2013 directed the Federal Board of Revenue (FBR) not to take
any coercive action against the petitioners pursuant to impugned notices till next date of hearing. In view of uncertainty
regarding the applicability of FED on asset management services, the management, as a matter of abundant caution, has
decided to retain and continue with the provision of FED and related taxes in these financial statements aggregating to
Rs. Rs. 10.37 million as at 30 September 2015. In case, the suit is decided against the fund the same would be paid to
management company, who will be responsible for submitting the same to authorities. Had the said provision of FED
not been recorded in the books of account of the Fund, the Net Asset Value of the Fund would have been higher by Re
0.25 per unit as at 30 September 2015
7.2 Provision for Workers' Welfare Fund
The Finance Act 2008 introduced an amendment to the Workers' Welfare Fund Ordinance, 1971(WWF Ordinance). As
a result of this amendment it may be construed that all Collective Investment Schemes / mutual funds (CISs) whose
income exceeds Rs 0.5 million in a tax year, have been brought within the scope of the WWF Ordinance, thus rendering
them liable to pay contribution to WWF at the rate of two percent of their accounting or taxable income, whichever is
higher. In this regard, a constitutional petition has been filed by certain CISs through their trustees in the Honourable
High Court of Sindh (the Court), challenging the applicability of WWF to the CISs, which is pending for adjudication
On 15 July 2010, a clarification was issued by the Ministry of Labour and Manpower (the Ministry) which stated that
mutual funds are not liable to contribute to WWF on the basis of their income.However on 14 December 2010 the Ministry
filed its response against the Constitutional petition requesting the court to dismiss the petition. According to the legal
council who is handling the case,there is a contradiction between the aforementioned clarification issued by the Ministry
and the response filed by the Ministry in Court.
During the year ended 30 June 2012, the Honourable Lahore High Court (LHC) in a Constitutional Petition relating to
the amendments brought in the WWF Ordinance, 1971 through the Finance Act,2006 and the Finance Act, 2008 has
declared the said amendments as unlawful and unconstitutional and struck them down. In March 2013 a larger bench of
the Sindh High Court (SHC) in various constitutional petitions filed by institutions other than mutual funds declared that
amendments brought in the WWF Ordinance, 1971 through the Finance Act, 2006, and the Finance Act, 2008, do not
suffer from any constitutional or legal infirmity.
However, as per advice of legal counsel the stay granted to CIS remains intact and the constitution petitions filed by the
CIS to challenge the WWF contribution have not been affected by the SHC judgment.
Furthermore, in the Finance Act, 2015, the mutual funds have been excluded from the levy of WWF. As this change has
been made in the definition of the term 'Industrial Establishment' as defined in the Workers' Welfare Fund Ordinance,
1971, the change may appear to apply prospectively. Accordingly, the management is of the view that this change is
applicable from 01 July 2015. Hence, the matter regarding previous years would either need to be clarified by FBR or
would be resolved through courts. The management company, as a matter of abundant precaution, has decided to retain
the provision for WWF in these financial statements. The aggregate amount of WWF charge as on September 30, 2015 is
Rs. 13.732 million, if the same ware not made the NAV of the fund would have been higher by Rs. 0.33 per unit.
8 TAXATION
The Fund's income is exempt from Income Tax as per clause (99) of part I of the Second Schedule of the Income Tax
Ordinance, 2001 subject to the condition that not less than 90% of the accounting income for the year as reduced by
capital gains whether realised or unrealised is distributed amongst the unit holders. Furthermore, as per regulation 63
of the Non-Banking Finance Companies and Notified Entities Regulation, 2008, the fund is required to distribute 90%
of the net accounting income other than unrealised capital gains to the unit holders. The Fund is also exempt from the
provision of Section 113 (minimum tax) under clause 11A of Part IV of the Second Schedule to the Income Tax Ordinance
2001. Since the management has distributed the income earned by the Fund during the year to the unit holders in the
manner as explained above accordingly no provision for taxation has been made in these financial statements.
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE QUARTER ENDED SEPTEMBER 30, 2015
173 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
9 EARNINGS PER UNIT
Earnings per unit has not been disclosed as in the opinion of the management determination of cumulative weighted
average number of outstanding units for calculating earnings per unit is not practicable.
10 TRANSACTIONS WITH CONNECTED PERSONS
10.1 Connected persons of the Fund include the Management Company, other collective investment, schemes being managed
by the Management Company, MCB Bank Limited being the holding company of the Management Company, the Trustee,
directors and key management personnel, other associated undertaking and investors holding 10% or more units of the
Fund.
10.2 The transactions with connected persons are in the normal course of business, at contracted rates and terms determined
in accordance with market rates.
10.3 Remuneration payable to the Management Company and the fee payable to the Trustee are determined in accordance
with the the provisions of the NBFC Regulations 2008 and constitutive documents of the fund.
10.4 Details of transactions and balances at year end with related parties / connected persons, other than those which have
been disclosed elsewhere in these financial statements, are as follows:
10 510.5 Details of the transactions with the connected persons during
the period are as follows:
MCB Bank Limited
- Bank Charges
- Profit on saving accounts
MCB-Arif Habib Savings and Investments Limited
- Remuneration of the Management Company (including indirect taxes)
- Issued of 1,516,906 units (September 30, 2014: Nil units)
- Redemption of 549,625 units (September 30, 2014: Nil units)
Central Depository Company of Pakistan Limited
- Remuneration of the Trustee
- CDC settlement charges
Key management personnel
- Issued of 21,449 units (September 30, 2014: 23,362)
Brokerage
- Arif habib Limited
- Next Capital Private Limited
Dividend received
Adamjee Insurance Company Limited
MCB Bank Limited
UnauditedSeptember 30,
2015
UnauditedSeptember 30,
2014
Rupees in '000(Rupees in '000
18 5
553 4,418
20,252 5,332
118,152 -
43,000 -
1,159 400
105 31
1,650 1,768
29 -
71 73
443 -
- 37
-
-
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE QUARTER ENDED SEPTEMBER 30, 2015
174 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
10.6 Amount outstanding as at period end
MCB Bank Limited
- Bank balances
- Profit receivable on saving accounts
MCB-Arif Habib Savings and Investments Limited
Remuneration payable to the Management Company
- Sales tax payable on remuneration of Management Company
- Sales load payable
- Legal & Professional Charges
Units held: 967,281 units (June 2015: Nil units)
Central Depository Company of Pakistan Limited
- Remuneration payable to Trustee
- Security Deposits
Fatima Fertilizer Company Limited
- 834,000 shares held as at 30 September 2015 (June 2015: 489,000)
Adamjee Insurance Company Limited
- 295,000 shares held as at 30 September 2015 (June 2015: Nil)
Lalpir Power Limited
- 800,000 shares held as at 30 September 2015 (June 2015: 800,000)
Pakgen Power Limited
- 1,775,500 shares held as at 30 September 2015 (June 2015: 1,775,000)
D.G Khan Cement Company of Pakistan Limited Employees Provident Trust
Units held: 32,443 units (June 2015: 32443 units)
Key Management Personnel
- 128,743 units held (June 30, 2015: 99,550)
Arif Habib Limited
- Brokerage *
Next Capital Private Limited
- Brokerage *
UnauditedSeptember 30,
2015 2015
30,001 29,584
57 409
5,159 4,300
722 645
3,449 9,691
- 100
73,778 -
388 297
100 100
38,598 19,105
15,361 -
23,336 24,400
49,625 53,283
(Rupees in '000)
2,475 2,510
9,820 7,703
29 53
30 66
AuditedJune 30,
-
-
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE QUARTER ENDED SEPTEMBER 30, 2015
175 MCB Pakistan Asset Allocation Fund (Formerly: MCB Dynamic Allocation Fund)
Chief Executive Officer Director
(Management Company)
For MCB-Arif Habib Savings and Investments Limited
* The amount disclosed represents the amount of brokerage paid to connected persons and not the purchase or sale value
of securities transacted through them. The purchase or sale value has not been treated as transactions with connected
persons as the ultimate counter parties are not connected persons.
11 DATE OF AUTHORIZATION FOR ISSUE
These financial statements were authorised for issue on October 16, 2015 by the Board of Directors of the Management
Company.
MCB-Arif Habib Savings and Investments Limited
8th Floor, Techno City Corporate Tower, Hasrat Mohani Road, Karachi.
UAN: 11-11-622-24 (11-11-MCB-AH): Karachi, Lahore, Islamabad.
UAN: 111-468-378 (111-INVEST): Karachi, Lahore, Islamabad & Multan.
0800-622-24 (0800-MCB-AH), Fax: (+92-21) 32276898, 32276908
URL: www.mcbah.com, Email: [email protected]