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Company’s MessageFund Manager’s Report - October 2014

Economic Snapshot

Key

Econ

omic

Indi

cato

rs

Equity Market Review

Money Market ReviewThe month of October witnessed continuous decline in international prices of commodities mainly oil, which will provide much needed relief to the external account through lower import bill. Apart from that overall economy has started performing well after the sit-ins were concluded by the political parties. CPI in�ation of the month reached at 17 month low of 5.8% YoY down from 7.7% in the month of September, which resulted in average 4MFY15 in�ation of 7.1%. MoM in�ation posted an uptick of 0.21%. Main reason for soft CPI reading is high base e�ect along with weak food prices and overall slowdown in other heads as well. Amid declining oil prices, we can expect in�ation to remain at the lower side for the next month as well.Other Macroeconomic indicators strolling on the path of recovery are foreign exchange reserves and remittances. Forex reserves had declined to the level of USD 13.2bn during the month, have recovered to USD 13.44bn at the end of October. Remittances sent by overseas Pakistanis depicted a growth of 20% YoY during the 1QFY15 and reached the level of USD 4.69bn. On the �ipside current account de�cit of the country widened to USD 1.3bn during the �rst quarter as compared to de�cit of USD 1.26bn in the corresponding period last year. However, going forward we are anticipating improvement in current account on the back of lower international oil prices and expected stability in the local currency. We foresee better economic outlook going forward on the back of relative stability on political side, improvement in economic indicators, successful IMF review for 4th & 5th tranche, declining oil prices and also expectations of policy rate cut in the upcoming monetary policy, which will prove bene�cial for not only industries but also government as cost of borrowing of the government will decline signi�cantly.

SBP conducted three t-bill auctions during the month. Target for the �rst auction held on October 1st, was PKR 150bn, against which the SBP generated PKR 42bn. Cuto� yields for 3 month and 6 month were 9.9741% and 9.9791% respectively and there was no bids for 1 year paper. Target for the second auction held on October 15th, was PKR 200bn, against which the government raised 124bn. Cuto� yields for 3 month and 6 month were 9.9564% and 9.9791% respectively and there was no bids for 1 year paper. Target for the third auction held on October 29th, was PKR 200bn, against which the government raised 206bn. Cuto� yields for 3 month, 6 month and 1 year were 9.9564%, 9.99% and 9.99% respectively.SBP also conducted PIB auction on October 23th, in which the government borrowed PKR 154.998bn against the target of PKR 15bn. Cut of yield set for 3yr, 5yr and 10yr PIBs were 12.4803%, 12.9770% and 13.4494% respectively.

Pakistan benchmark index KSE100 recorded a return of 2.2% MoM in October 2014 as compared to gain of 4.1% in the preceding month. The market remained range bound during the month mainly due to drag in heavy weight sector of the index i.e. Oil & Gas sector. Continuous decline in international oil prices along with poor quarterly results dragged the sector down by 6.9% MoM. While on the positive side Auto sector was the top performer due to JPY depreciation, launch of new products and high expectations from upcoming Auto policy. Foreign portfolio investment registered a decline of USD 31mn during the month with major selling witnessed in Oil & Gas and power sector, which was also the main reason for limited upward movement in equity market in the month under review. Despite heavy foreign out�ows, the benchmark index gained 650 points. Sector wise performance shows that Autos, food producers, cements & electricity sectors outperformed the index with MoM returns of 17.4%, 6.5%, 5.3% and 4.9% respectively where as textiles, oil & gas and telecom sectors underperformed the index with MoM returns of 0.4%, -6.9% and -11.3% respectively. CPI in�ation for the month has clocked in at 5.8% YoY 17month CPI �gure has led to the market expectation of policy rate cut in the upcoming monetary policy. Expectations of lower discount rate along with successful IMF review and lower oil prices, which is bene�cial for the economy, which is expected to boost the equity market performance going forward.

The month under review was full of good news and festivities; �rst there was diwali, then Malala won the Noble Peace Prize and for the market the Dharna a�ect subsided that gave market a substantial boost.

The capital market is enjoying a recovery but Political and Policy confusion, crowded trades and slow growth remains a concern. While the political front remained relatively calm, the risk assets have had a good run during the past month and will continue to do so.

On the �xed income side, confusion over policy direction has helped to reintroduce market to more elevated volatility levels. Market in anticipation of a rate cut in the upcoming monetary policy has already discounted the long term bonds. The transition now under way presents both risk and opportunities. Diversi�ca-tion is one of the best responses to uncertainty, and of late many investors have sought it in �xed income strategies.

Today, we �nd ourselves in a position where monetary policy has clearly been driving �nancial assets in�ation. It’s not news to investors that monetary policy and �nancial crisis aftershocks have changed the bond market. What some may not fully appreciate is the depth and persistence of the changes.

The �xed income landscape will continue to evolve and present challenges to investors seeking returns and diversi�cation. In times like these, and in the times to come, adaptability is likely to be an important advantage.

Investors can sit on some cash, but we believe being entirely on the sidelines is not a sensible option. There are opportunity costs to holding cash. The unique nature of the recovery and the current global dynamics are creating tremendous opportunities. With an understanding of the nuances of the macro picture and rigorous bottom-up analysis, investors have the opportunity to play this hand very successfully.

On the international front, the US is �nally enjoying a self sustaining economic recovery, but slow global growth remains a concern and the �nancial markets are bouncing up and down by the day. A fascinating dynamic of US dollar strength and commodity price weakness is having a profound in�uence on the in�ation in US. Besides currency dynamics the factors at play in the recent commodity price slump includes global economic downward pressure especially in so-called commodity “super cycle,” which now appears to be contracting along with China’s slowing GDP, which is unlikely to rebound anytime soon. We can expect further downward pressure in precious metals, energy and industrial commodities.

Executing a �exible strategy takes signi�cant resources, including the right people and capabilities around the world as well as tools that can analyze diverse exposures on a risk-factor level and aggregate them across the portfolio.

We believe it’s our responsibility to help investors of all sizes, to succeed in the New World of Investing. We were built to provide the global market insight, breadth of capabilities, unbiased investment advice and deep risk management expertise these times require. Investing with PRIMUS gives you access to every asset class and investment style, as well as extensive market intelligence and risk analysis, to help build the dynamic, diverse portfolios �exible with the chang-ing times.When you invest with PRIMUS, you invest with con�dence. We believe in a disciplined and methodical approach to investing. It is the foundation of everything we do and the best way to create long term value for investors. PRIMUS is one of the top mutual fund companies in Pakistan whose strength and credibility have made it one of the most respected �nancial institutions.We will do our best to re�ect all this in positioning the savings and investments you have entrusted to us to manage. We will be emphasizing the importance of economic growth and work very hard to identify opportunities that remain attractive. We will seek to navigate this environment for you by maintaining a higher degree of operational agility and a solid dose of resilience.Thank you for the trust you have placed in us. We value your con�dence, and will continue to work diligently to meet your expectations. If you have any query regarding any of your PRIMUS funds investments please contact your account manager at 0092-213-529-0006. We also invite you to visit our website www.prim-usinvestments.com to learn more about our fund, views and thought leadership.

Oct-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14External Sector IndicatorsOverall Balance of Payments USD million (351) 916 1,049 2200 1,398 507 348 379 -394 n.aCurrent Account Balance USD million (96) 164 (156) (111) (57) -89 -773 -560 3 n.aExports USD million 2,193 2,074 2,152 4,197 2,088 2097 1900 1886 2174 n.aImports USD million 3,616 3,136 3,382 3,278 3,591 3317 4002 3906 3914 n.aWorker's Remittances USD million 1348 1,210 1,337 1,216 1,438 1166 1649 1329 1717 n.aForeign Direct Investment USD million - 79.2 63.5 81.1 610.9 188.6 24 63 82 n.aForeign Portfolio Investment USD million - 1.1 -5.4 2,115 122 403 67 19 56 n.aForex Reserves USD billion 9.52 8.74 10.07 12.18 13.47 13.57 14.30 13.58 13.51 13.44Exchange Rate against PKRUSD Month Avg. 106.91 105.39 99.97 98.79 98.59 98.75 98.65 101.86 102.63 102.82Inflation IndicatorsGeneral CPI YoY change 9.1% 7.9% 8.5% 9.2% 8.3% 8.2% 7.9% 7.0% 7.7% 5.8%Food CPI YoY change 9.8% 7.6% 9.3% 9.9% 7.4% 7.4% 7.0% 5.6% 7.2% 5.2%Core (NFNE) YoY change 8.4% 7.8% 7.6% 8.5% 8.7% 8.7% 8.3% 7.9% 8.0% 7.8%Core (Trimmed) YoY change 9.0% 8.1% 8.1% 9.0% 8.3% 7.9% 7.6% 7.1% 7.1% 6.0%Monetary GrowthBroad Money (M2) YoY growth 13.0% 12.9% 11.9% 12.7% 11.5% 12.3% 15.6% 10.6% 10.0% -GoP's Borrowing from SBP YoY growth 77.4% 64.2% 35.1% 32.2% 7.7% 19.2% 14.5% -12.3% -24.6% -Pvt. Sector Credit YoY growth 1.1% 4.4% 4.0% 5.3% 8.1% 7.9% -0.8% 11.6% 11.2% -Interest RatesSBP Policy Rate Current 9.50% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%6 Month KIBOR Month Avg. 9.55% 10.13% 10.18% 10.20% 10.17% 10.17% 10.17% 10.18% 10.18% 10.19%12 Month KIBOR Month Avg. 10.02% 10.43% 10.47% 10.45% 10.44% 10.45% 10.45% 10.48% 10.50% 10.50%3 Month T-Bill Yield Month Avg. 9.32% 9.95% 10.01% 9.97% 9.96% 9.95% 9.94% 9.96% 9.95% 9.94%6 Month T-Bill Yield Month Avg. 9.46% 9.97% 10.00% 9.98% 9.98% 10.00% 10.00% 10.01% 10.01% 9.97%12 Month T-Bill Yield Month Avg. 9.77% 9.99% 10.00% 10.00% 10.01% 10.05% 10.06% 10.07% 10.07% 10.02%10 Year PIB Yield Month Avg. 12.85% 12.80% 12.81% 12.81% 12.85% 13.01% 13.10% 13.28% 13.39% 13.10%

Source: SBP, MoF, PBSn.a.=Not Available

Fund Manager’s Review

Portfolio Allocation (as % of total assets)Fund Objective

Fund Details

Investment Committee Members

Fund TypeCategoryFund Stability RatingBenchmark

Inception DateDealing DaysCut-o� TimePricing MechanismManagement FeeLoadRisk Pro�leListing

Trustee

AuditorLegal AdvisorFund Manager

Open End

Management Co. Rating AM3 by JCR-VIS

Money Market

Portfolio Allocation (as % of total assets)

Oct’14

Cash at BanksPlacements with DFIsPlacements with Banks

Total

T-Bills

Others including receivables

Oct‘145.90%

25.95%9.33%

100.00%

49.72%

0.36%

Credit Quality of Portfolio (as % of total assets)

AAA (Government Securities)AAAAA+

NR (Others including receivables)Total

Oct‘1449.72%

9.40%24.49%

0.36%100.00%

AA 16.03%

Reverse Repo against Govt. Securities 8.74%

Sep‘141.36%

30.74%19.91%

100.00%

38.31%

1.04%

Sep‘1438.31%

0.05%31.04%

1.04%100.00%

29.56%

8.65%

AA+ by PACRA50% 3 months PKRV + 3 months average

Ahmed AteeqRahaila AleemM. Ali KazmiSalman Kazmi

CEOCFO & Company SecretaryChief Investment O�cerFund Manager

Arfeen ZiaAli Kamal

Head of RiskHead of Research

Fund StatisticsNet Asset (PKR mn)

WWF Disclosure

NAV per Unit (PKR)Weighted Average Maturity (days)Sharpe Ratio *

3,408.434103.251166

-1.3492Information RatioStandard Deviation ** Annualized

0.54180.391%

deposit rate of AA & above rated Banks

1st January 2013Daily (days when Banks are open for business)

4.00 pmForward0.45%0% (Front-end) 0% (Back-end)Low RiskIslamabad Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.

Mohsin Tayebaly & Co.Salman Kazmi

PRIMUS Daily Reserve Fund generated an annualized return of 9.13% versus the benchmark return of 8.75% for the month of October, outperforming the benchmark return by 38 basis points. Also the fund recorded 9.68% return since inception outperforming the benchmark return by 1.30%. The performance was mainly attributed by the gains from government securities and cash deposits. Also the placement with Banks and DFIs was made at attractive rates supporting the fund’s performance.

At the month end, net assets were recorded at 3.408 billion where government securities constituted 50% exposure followed by placement with Banks and DFIs at 44% respectively. The weighted average time to maturity of the portfolio is 66 days.

We intend to maintain the exposure in government securities while positioning the portfolio accordingly to accomplish higher returns.

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

* Please note that WWF 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 provision against Worker’s Welfare Fund’s liability to the tune of Rs.10,639,816, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.3223/ 0.93% enhancing the YTD return to 10.02% p.a”

M.Yousuf Adil Saleem & Co. ‘Chartered Accountants’

Fund PerformanceSince Inception 9.68% 9.32% 8.38% 9.10% 8.77%

*Simple Annualized**Morning Star

***Average of reporting period n.a = not applicable

PDRF* PDRF** Benchmark***

-

PDRFFYTD

-9.13% 9.52% 8.75%Oct-149.24% 9.64% 8.78%Sep-14 - -

BenchmarkFYTD

Fund Manager’s Report -October 2014PRIMUS Daily Reserve Fund

“MUFAP’s Recommended Format”

Portfolio Allocation (as % of total assets) Sep‘14Placements with

Banks19.91% Placements with

DFIs30.74%

Reverse Repo against Govt.

Securities8.65%T-Bills

38.31%

Cash at Bank1.36%

Others including receivables (NR)

1.04%

Placements with Banks9.33%

Placements with DFIs

25.95%

Reverse Repo against Govt.

Securities8.74%

T-Bills49.72%

Cash at Bank5.90%


0.36%

0.0%2.0%4.0%6.0%8.0%

10.0%12.0%14.0%

Benchmark PDRF


Portfolio Allocation (as % of total assets)Fund Objective

Fund Details


Fund TypeCategoryFund Stability Rating

Benchmark


Trustee


Open EndIncome Scheme


Placements with Banks

Cash at Bank

T-Bills

Total

Oct‘14

Oct‘14

Oct‘14

0.00%

2.08%

23.51%Others including receivables (NR) 2.67%

100.00%


AAA (Government Securities) 82.05%

AA+ 5.55%

Total 100.00%

Placements with DFIs 5.55%

AA 0.01%

Others including receivables (NR) 2.67%

PIBs 58.54%TFCs / Sukuks 7.65%

AA- 7.65%A- 2.01%

Sep‘14

Sep‘14

1.71%

3.62%

21.61%1.45%

100.00%

78.98%AAA 0.05% 0.00%

8.25%

100.00%

6.65%

1.71%

1.45%

57.36%7.60%

7.60%2.02%

A+70% 6 month Kibor & 30% average of 6 month depositrate of 3 banks rated AA- and above




Arfeen ZiaAli Kamal


Fund Statistics

WWF Disclosure

NAV per Unit (PKR)Net Asset (PKR mn)

Weighted Average Maturity (days)Sharpe Ratio *

5,192.149105.01732.8767

Information RatioStandard Deviation ** Annualized

0.14681.760%

17th April 2014Daily (days when Banks are open for business)

4.00 pmForward1.00%0% (Front-end) 0% (Back-end)Low RiskKarachi Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.M.Yousuf Adil Saleem & Co. ‘Chartered Accountants’

Mohsin Tayebaly & Co.Salman Kazmi

PIML Income Fund not only generated extraordinary return of 22.74% for the month of October but also outperformed the benchmark and previous month’s return by substantial margins. The return for the month improved by 13.32% and 10.23% against the benchmark return of 9.42% and previous month’s return of 12.52% respectively. Also the fund on FYTD basis outperformed the benchmark by 4.85 percentage points at 14.28%.

The performance was mainly attributed by the growth of 3.12% in government securities, projecting sizeable mark-to-market gains besides exposure in privately placed debt security. The government securities contributed 2.50% gain as percentage of net assets.

At the month end, net assets were recorded at 5.192 billion (a growth of 7.39%) where government securities constituted major allocation of 83% (T-bills: 24% & PIBs: 59%). The portfolio duration of the fund is 628 days.

We intend to reposition the portfolio and maintain greater exposure in the government securities, seeking opportunities to maximize the returns. The fund is fully equipped to attain optimal returns given the present market scenario.

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

The scheme has maintained provision against Worker’s Welfare Fund’s liability to the tune of Rs. 13,706,114, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.2772/ 0.78% enhancing the YTD return to 15.06% p.a”

Fund PerformanceSince Inception 10.00% 9.44% 9.43%



PIML IF* PIML IF** Benchmark***PIML IFFYTD

- -22.74% 25.27% 9.42%Oct-1412.52% 13.26% 9.43%Sep-14 - -

14.28% 9.42%

BenchmarkFYTD

Fund Manager’s Report - October 2014PIML Income Fund (PIML-IF) (formerly; PRIMUS Cash Fund PCF)


Portfolio Allocation (as % of total assets) Sep‘14

Placements with Banks1.71%


6.65%

TFCs / Sukuks7.60%

PIBs57.36%

T-Bills21.61%

Cash at Bank3.62%


1.45%


5.55%

TFCs / Sukuks7.65%

PIBs58.54%

T-Bills23.51%

Cash at Bank2.08%


2.67%

Top 10 TFCs / Sukuks Holdings (as % of T.A.) Oct' 14 Sept' 14AKBL PPTFC-V 30-Sep-14 - 30-Sep-24 7.65% 7.60%

-15.0%-10.0%

-5.0%0.0%5.0%

10.0%15.0%20.0%25.0%30.0%

Benchmark PIF

Oct‘14

M.Yousuf Adil Saleem & Co. ‘Chartered Accountants’

Fund Performance

Since Inception 13.46% 22.80%**

2.86% 1.72%**Oct-143.46% 2.89%**Sep-14

*Absolute Returns**Weighted Average Returns

PSMAF* Benchmark3.83%

PSMAFFYTD

- -- -

2.60%

BenchmarkFYTD



Fund Objective

Fund Details




Trustee


Open EndBalanced Fund


Equity Securities

Others Including Receiveables (NR)Total

Total

Cash at Bank

Oct‘1465.51%

8.62%100.00%

11.75%

Oct‘14

Sector Allocation (as % of Total Assets)


AAA (Government Securities)AAA

NR (includes equity investments)

14.11%0.01%

74.14%100.00%

PIB 14.11%

AA & Above 10.46%AA- 1.29%

Sep‘1463.92%

8.71%100.00%

11.10%

Sep‘1416.27%

0.01%

72.63%100.00%

16.27%

5.85%5.24%

N/A


Ahmed Ateeq CEORahaila Aleem CFO & Company SecretaryM. Ali Kazmi Chief Investment O�cerM. Samir Malik, CFA Head of EquityArfeen Zia Head of RiskAli Kamal Head of Research


WWF Disclosure

NAV per Unit (PKR)Sharpe Ratio ^^

138.909108.61

-0.2936

Treynor Ratio^^Standard Deviation *^^

3M PKRV yield used as Risk‐Free rate. ^^ The look back period is 250 working days (Since inception).* Annualized.**^R‐Square measures the correlation between the benchmark and the fund

-0.0307Beta^^ 0.9611R-Square**^^^ 62.99%Value at Risk 1.04%

10.04%

23rd August 2013Daily (days when Banks are open for business)

4.00 pmForward2% p.a.2% (Front-end) 0% (Back-end)Moderate to HighKarachi Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.

Mohsin Tayebaly & Co.M. Samir Malik, CFA

The Fund generated a return of 2.86% compared to its benchmark return of 1.72% for the month of October, outperforming its benchmark for the month by 114 basis points. The equity market continued to perform and the KSE100 earned a return of 2.2% due to withdrawal of Pakistan Awami Tehrik from the sit-in at Islamabad, revival of the privatization process by the government and expectations of lower in�ation �gures being reported. The Fund exposure in equities decreased from 67.59% of net assets to 67.26% of net assets in the outgoing month

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.

The scheme has maintained provision against Worker’s Welfare Fund’s liability to the tune of Rs. 254,237 if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.1988 / 0.18% enhancing the YTD return to 4.02% p.a”

Fund Manager’s Report - October 2014Strategic Multi Asset Fund


KSE 100 index, 3 month PKRV and Daily Closing Pakistan Rupee Spot Gold Prices at the Pakistan Mercantile Exchange Limited (PMEX) based on the weighted average exposure of the scheme to eqquity, debt and gold future contracts during the period under review

Equity Securities65.51%

PIB14.11%

Cash at Bank11.75%


8.62%

Sector Allocation (as % of T.A.) Oct' 14 Sep' 14Const. & Materials (Cement) 20.48% 20.92%Oil and Gas 12.81% 12.39%Comm. Banks 11.68% 10.53%Electricity 9.74% 10.71%Automobile and Parts 3.83% 0.83%Personal Goods (Textile) 2.32% 2.53%Chemicals 1.71% 1.66%Pharma & Bio Tech 1.12% 1.15%Non Life Insurance 0.96% 1.17%Household Goods 0.87% 0.89%Fixed Line Telecommunication 0.00% 1.16%Total 65.51% 63.92%

Top 10 Equity Holdings (as % of T.A.)Pakistan State Oil Co. Ltd. PSO 7.61%Lucky Cement Ltd. LUCK 5.85%D.G. Khan Cement Co. Ltd. DGKC 5.66%Kot Addu Power Co. Ltd. KAPCO 4.81%Fauji Cement Co. Ltd. FCCL 3.67%National Bank of Pakistan NBP 3.37%Lafarge Pakistan Cement Ltd. LPCL 3.31%Nishat Chunian Power Ltd. NCPL 3.08%Pak Suzuki Motor Co. Ltd. PSMC 2.87%United Bank Ltd. UBL 2.80%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00% Benchmark PSMAF

Fund Manager’s ReviewThe Fund generated a return of 1.14%, compared to its benchmark return of 0.66%, outperforming its benchmark return for the month of October by 48 basis point. The Fund exposure in equities increased from 86.15% of net assets to 88.84% of net assets in the outgoing month. The dull performance of the KMI30 has been due to the declining oil prices in the global market and the below expected results announced by the Exploration and Production sector.

Fund Manager’s Report - October 2014Islamic Equity Fund

Oct‘14Portfolio Allocation (as % of total assets)

Fund Objective

Fund Details




Trustee


Open EndIslamic Equity Scheme


Equity Securities

Others Including ReceiveablesTotal

Total

Cash at Bank

Shariah Compliant Govt. Securities

Sector Allocation (as % of Total Assets)


AAAAANR (includes equity investments)

Oct‘14

87.65%0.00%

7.35%100.00%

5.00%

Oct‘144.66%0.35%

95.00%100.00%

Sep‘14

83.50%0.00%

4.53%100.00%

11.97%

Sep‘1411.42%

0.55%88.03%

100.00%

N/AKMI - 30 Index


Ahmed Ateeq CEORahaila Aleem CFO & Company SecretaryM. Ali Kazmi Chief Investment O�cerM. Samir Malik, CFA Head of EquityArfeen Zia Head of RiskAli Kamal Head of Research


WWF Disclosure

NAV per Unit (PKR)Sharpe Ratio ^^

109.609102.33

-0.4066

Treynor Ratio^^Standard Deviation *^^

3M PKRV yield used as Risk‐Free rate. ^^ The look back period is 164 working days (Since inception).* Annualized.**^R‐Square measures the correlation between the benchmark and the fund

-0.0692Beta^^ 0.7771R-Square**^^^ 64.10%Value at Risk 1.38%

13.23%

4th March 2014Daily (days when Banks are open for business)

4.00 pmForward2% p.a.2% (Front-end) 0% (Back-end)Moderate to HighKarachi Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.KPMG Taseer Hadi & Co.Mohsin Tayebaly & Co.M. Samir Malik, CFA

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

The scheme has maintained provision against Worker’s Welfare Fund’s liability to the tune of Rs. 112,664 if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.1052 / 0.10% enhancing the YTD return to -0.83% p.a”


Fund Performance

Since Inception 3.61% 13.01%

1.14% 0.66%Oct-143.52% 4.05%Sep-14

*Absolute Returnsn.a=not applicable

PIML-IEF* Benchmark-0.93%

PIML-IEFFYTD

- -- -

2.1%

BenchmarkFYTD

Equity Securities87.65%

Cash at Bank5.00%


7.35%

Top 10 Equity Holdings (as % of T.A.) Oct '14Pakistan State Oil Co. Ltd. PSO 13.24%Lucky Cement Ltd. LUCK 13.15%Pakistan Oilfields Ltd. POL 8.13%D.G. Khan Cement Co. Ltd. DGKC 7.26%Pakistan Petroleum Ltd. PPL 6.90%Oil & Gas Development Co. OGDC 5.13%Fauji Cement Co. Ltd. FCCL 4.71%Nishat Mills Ltd. NML 4.70%Kot Addu Power Co. Ltd. KAPCO 4.63%Lafarge Pakistan Cement Ltd. LPCL 4.24%

Sector Allocation (as % of T.A.) Oct '14 Sep '14Oil and Gas 35.20% 34.51%Const. & Materials (Cement) 33.39% 32.21%Electricity 6.12% 5.47%Personal Goods (Textile) 4.70% 5.07%Automobile and Parts 3.37% 1.53%Fixed Line Telecom 1.86% 2.09%Pharma & Bio Tech 1.43% 1.26%Comm. Banks 1.29% 1.10%Chemicals 0.28% 0.25%Total 87.65% 83.50%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

March April May June July August September October

Benchmark PIEF

Fund Performance

Since Inception 5.69% 5.75% 6.44%



PIMLIMMF*

PIMLIMMF** Benchmark***

PIML-IMMFFYTD

- -5.91% 6.07% 6.40%Oct-145.82% 5.97% 6.40%Sep-14 - -

5.81% 6.39%

BenchmarkFYTD


Fund Objective

Fund Details




Trustee


Open EndIslamic Money Market Scheme


Sukuk

Cash at Bank

Total

Oct‘14



AAA (Government Securities)AAAAA+

Total

GOP Ijara Sukuk - Govt. Backed

AAOthers including receivables (NR)

Oct‘14

Oct‘14

0.00%

96.64%3.36%

100.00%

0.00%95.53% 0.00%

100.00%

0.00%

1.11%3.36%

Sep‘14

Sep‘14

0.00%

96.80%3.20%

100.00%

0.00%95.54% 0.00%

100.00%

0.00%

1.26%3.20%

AA(F)3 month deposit rate of three AA andabove rated Islamic Banks




Arfeen ZiaAli Kamal



WWF Disclosure

NAV per Unit (PKR)Weighted Average Maturity (days)Sharpe Ratio *

123.579102.101

-8.9348Information RatioStandard Deviation ** Annualized

0.17940.445%

4th March 2014Daily (days when Banks are open for business)

4.00 pmForward0.50%2% (Front-end) 0% (Back-end)Low RiskIslamabad Stock Exchange

Leverage NilCentral Depository Company of PakistanLtd.KPMG Taseer Hadi & CoMohsin Tayebaly & Co.Salman Kazmi

The objective of PIML-IMMF is to seek high liquidity, competitive return and maximum possible preservation of the capital for investors by investing in low risk Shariah Compliant securities.

The scheme has maintained provision against Worker’s Welfare Fund’s liability to the tune of Rs. 89,856 if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs. 0.0742 / 0.22% enhancing the YTD return to 6.02% p.a”

Fund Manager’s Report - October 2014Islamic Money Market Fund

Fund Manager’s ReviewPIML Islamic Money Market Fund posted an annualized return of 5.91% against the benchmark return of 6.40% for the month of October, improving by 0.10% on the previous month’s performance. We intend to allocate the portfolio optimally; however, the fund is well placed with liquidity to cash in opportunities that may arise in Shariah complaint securities/instruments. The weighted average time to maturity of the portfolio is 01 day.


Portfolio Allocation (as % of total assets) Sep‘14

Cash at Bank96.80%


3.20%

Cash at Bank96.64%


3.36%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14

Benchmark IMMF

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