fund manager report - awt investments · fund manager report - august 2017 key economic indicators...

FOR THE MONTH AUGUST 2017

FUND MANAGER REPORT

AWTINVESTMENTS

AWT INVESTMENTS LIMITED

Fund Manager Report - August 2017

Key Economic Indicators

3 of 12 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.”

n.a.=Not AvailableSource: SBP, MoF, PBS

Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17External Sector IndicatorsOverall Balance of Payments USD million (54) (298) (520) 484 88 926 309 606 397 (336) 271 1,532 n.a.Current Account Balance USD million (721) (161) (381) (839) (1,083) (1,189) (744) (562) (1,234) (1,581) (1,431) (2,053) n.a.Exports USD million 1,658 1,543 1,756 1,762 1,727 1,780 1,638 1,801 1,766 1,944 1,865 1,631 n.a.Imports USD million 4,331 3,858 4,026 4,255 4,488 4,737 4,445 5,009 4,052 4,572 5,054 4,835 n.a.Worker's Remittances USD million 1,761 1,609 1,560 1,616 1,584 1,488 1,417 1,695 1,539 1,867 1,840 1,542 n.a.Foreign Direct Investment USD million 113 249 67 460 595 81 123 297 132 295 199 223 n.a.Foreign Portfolio Investment USD million 41 28 (67) (95) (302) (75) 1 (8) (41) 26 (871) (11) n.a.Forex Reserves USD billion 23.08 23.42 24.33 23.29 23.20 22.24 22.07 21.80 21.57 21.19 21.40 20.44 20.00 Exchange Rate against PKRUSD Period End 104.66 104.50 104.58 104.85 104.38 104.75 104.79 104.81 104.73 104.81 104.84 105.40 105.23 Inflation IndicatorsGeneral CPI YoY change 3.60% 3.90% 4.20% 3.81% 3.70% 3.66% 4.22% 4.94% 4.78% 5.02% 3.93% 2.91% 3.42%Food CPI YoY change 3.40% 4.00% 4.40% 3.30% 3.00% 2.60% 3.70% 5.00% 4.40% 4.90% 2.40% -0.10% 1.30%Core (NFNE) YoY change 4.60% 4.80% 5.20% 5.30% 5.20% 5.40% 5.30% 5.30% 5.50% 5.50% 5.50% 5.60% 5.50%Core (Trimmed) YoY change 3.50% 3.70% 3.80% 3.80% 3.70% 3.80% 4.10% 4.50% 4.80% 4.80% 4.20% 4.00% 4.20%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. 6.02% 6.05% 6.08% 6.08% 6.15% 6.12% 6.13% 6.14% 6.16% 6.15% 6.15% 6.14% 6.15%12 Month KIBOR Month Avg. 6.33% 6.35% 6.37% 6.40% 6.43% 6.41% 6.41% 6.41% 6.47% 6.45% 6.46% 6.46% 6.46%3 Month T-Bill Yield Month Avg. 5.83% 5.87% 5.88% 5.91% 6.67% 5.90% 5.92% 5.94% 5.97% 5.99% 5.99% 5.98% 5.98%6 Month T-Bill Yield Month Avg. 5.87% 5.90% 5.91% 5.93% 5.98% 5.91% 5.96% 5.98% 6.00% 6.01% 6.01% 6.00% 6.00%12 Month T-Bill Yield Month Avg. 5.89% 5.91% 5.92% 5.97% 6.03% 5.94% 5.98% 5.99% 6.03% 6.05% 6.04% 6.03% 6.03%10 Year PIB Yield Month Avg. 7.80% 7.80% 7.80% 7.80% 7.80% 7.94% 7.94% 7.94% 7.94% 7.94% 7.94% 7.94% 7.94%

Market ReviewFund Manager Report - August 2017

Equity Market Review:

Money Market Review:



In the three T Bill auctions held in the outgoing month, SBP raised amount worth PKR 1.8 billion against the target of PKR 1.55 billion. The cut o� rates for 3M, 6M, and 12M remained unchanged in all three auctions at 5.9910%, 6.0109%, and 6.0386%. Meanwhile, in the third auction the bids were rejected for the 12M paper. Fixed income yields have remained stable indicating expectation of no change in interest rate.

No participation was witnessed in the PIBs auction held on 23 August 2017.

The KSE100 posted a decline of 10.4%/4,803pts MoM in Aug’17. The index is now down 14% CYTD and o� 22% from peak. Amid this rout in the stock market, there have been constant barrage of negative news on the economic front i.e, deterioration in current account de�cit and increase in �scal de�cit. Domestic political noise after the Panama case and US statement alleging Pakistan of harboring terrorists and threatening to cut payments (Coalition Support Fund) made to Pakistan in lieu of �ghting terrorism dampened the overall market sentiment along with some negative corporate development in Cement (price reduction) and Banks (possible sizable �ne on HBL by the New York State regulator). Meanwhile, average traded volume increased by 20% to 201 million shares in the outgoing month.

Foreigners again remained net sellers o�-loading shares worth USD 80.5mn (vs. USD 37.9mn in Jul’17). The major buy support came from Companies (net buy of USD 28mn), Banks/DFIs (net buy of USD 25mn), and Insurance companies (net buy of USD 14mn).

Performance at the local bourse remained dull with none of the key sectors making it into the green. Whereas, there were few sectors which posted positive return that were Glass & Ceramics (+25% MoM) and Leasing Companies (+41%). Amongst the key sectors, Cements (-16% MoM), Pharma (-17% MoM) and Automobile Assembler (-13% MoM) declined the most. A reduction in the cements prices in the North region escalated concerns of a possible breakdown in pricing discipline. The devaluation fears pushed down both the Autos, Engineering (-10% MoM), and Pharma (where signi�cant inputs are imported) sector as well. Meanwhile, Banks declined by 10% MoM on account of possible hefty �ne on HBL (contributes > 7% to the KSE100).

Majority of the leading stocks have underperformed the index with short term moving averages (50 dma) falling below 200 dma, a clear sign of bearish trend in the equity market. Valuations across various sectors have fallen to attractive levels on historic comparison and relative to other emerging markets. These are good levels to gradually start adding exposure in selective stocks, from a long-term perspective. Headwinds on the economic front with government inability to address key economic challenges may continue to negatively in�uence investors’ sentiments in the near term.

Economic Review:The CPI in�ation reading came at 3.4% YoY in Aug’17 mostly on the back of increase in prices of petroleum and perishable products. MoM rise was 0.2%, compared to 0.3% increase in July, and 0.3% in August 2016. SBP in�ation forecast for FY18 stands at 5% as per the latest MPC Meeting Minutes.

On the external front, CAD for the month July’17 widened to USD 2.05bn vs USD 662 mn last year. De�cit amounts to 7.2$ of GDP vs. 2.6% gap last year fueled by 78% increase in trade de�cit. Exports grew by 21% YoY meanwhile imports witnessed a jump of 51% to USD 4.7 billion. Remittance grew 16% YoY in July while in�ows dropped 16.2% over the preceding month. The country received remittances of USD 1.54 billion in July against USD 1.33 billion in the corresponding period. FDI jumped 163% YoY to USD 222.6 million in July. FDI continued showing upward trend that began in the second half of the preced-ing �scal year. It grew 4.6% in FY17.

Economic growth is intact (FY17 LSM growth: 5.6% YoY vs 3.1% YoY in FY16). Major growth has been observed across Iron & steel products and Food and Beverages that should bode well for steel and Food and personal care sector. As in�ation remains benign, SBP is expected to keep interest rates unchanged in upcoming MPS in Sep’17.

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

M. Samir Malik, CFAKhawar 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

The scheme has maintained a provision gainst Worker's Welfare Fund's liability to the tune of Rs.1,627,005, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs.1.1492/8.30% enhancing the YTD return to 13.77% p.a

SWWF Disclosure

Total Expense Ratio is 0.35% which Includes 0.04% of Governement Levy and 0.01% 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 (15 December 2016)

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


During the month under review, PIML-DRF generated an annualized return of 6.87% as compared to the benchmark return of 4.09%, outperforming its benchmark by 278bps. The fund reduced its Treasury Bills exposure to zero, while increased its allocation to cash at bank to 97.8%. The weighted average time to maturity of the portfolio is at 1 day.

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

Credit Quality of Portfolio (as % of T.A.) Aug. ‘17 July. ‘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.”

ratS gninroM**dezilaunnA elpmiS doirep gnitroper fo egarevA****

Fund Performance PIML - DRF

Fund Statistics

* Annualized

Portfolio Allocation (as % of T.A.) Aug. ‘17 July. ‘17

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

0.00%

84.29%

14.58%

1.13%Placements withDFIs

T-Bills

Cash at Bank

Others includingreceivables (NR)

PDRF* PDRF** Benchmark***FYTD 5.47% 5.60% 4.11%CYTD 6.63% 6.71% 5.25%12M Trailing 6.22% 6.22% 4.34%Since Inception 9.04% 7.83% 6.13%AAR-Since Inception 9.25% 0.00% 6.71%Last 3Yrs 8.11% 0.00% 5.65%Jul-17 4.05% 4.13% 4.14%Aug-17 6.87% 7.09% 4.09%

Fund Performance Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17Performance 4.56% 5.02% 4.79% 4.88% -3.97% 18.86% 4.30% 4.38% 4.91% 4.26% 4.17% 4.05% 6.87%Benchmark 4.94% 4.94% 4.39% 4.40% 6.14% 4.39% 4.40% 4.41% 4.42% 4.42% 4.19% 4.14% 4.09%

Period FY13 FY14 FY15 FY16 FY17 FY18TDPerformance 9.87% 8.91% 9.58% 6.00% 4.05% 5.47%Benchmark 7.93% 8.43% 7.77% 5.40% 4.14% 4.11%

Net Assets (PKR mn) 115.37NAV per Unit (PKR) 81.49

Weighted Average Maturity (days) 1Sharpe Ratio* -0.33Information Ratio 0.129Standard Deviation 1.16%

Placements with DFIs 0.00% 0.00%T-Bills 0.00% 84.29%Cash at Bank 97.83% 14.58%Others including receivables (NR) 2.17% 1.13%Total 100.00% 100.00%

0.00%

0.00%

97.83%

2.17%Placements withDFIs

T-Bills

Cash at Bank


AAA (Government Securities 0.00% 84.29%AA+ 0.00% 14.57%AA 97.82% 0.01%Other including recievables (NR) 2.17% 1.13%Total 100.00% 100.00%

The scheme has maintained a provision gainst Worker's Welfare Fund's liability to the tune of Rs.10,429,942, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs.2.1556/11.94% enhancing the YTD return to 19.25% p.a

SWWF Disclosure


Portfolio Allocation (as % of T.A.)

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

Fund Statistics

* Annualized

Fund Performance PIML -IF

*Simple Annualized **Morning Star***Average of reporting period

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) Aug. ‘17



Salman H. Sheikh

Hamza Saboor

M. Samir Malik, CFA

Khawar Salman

Chief Investment O�cer

Fund Manager

Asif Iqbal

M. Saeed Khalid


Acting Head of Research Total Expense Ratio is 0.39% which Includes 0.06% of Governement Levy and 0.01% SECP Fee calculated as % Average Net Asset Value.

Total Expense Ratio

Aug. ‘17 July. ‘17




Aug. ‘17

AM3+ by JCR-VIS (15 December 2016)

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

During the month under review, PIML-IF generated an annualized return of 7.87% as compared to its benchmark return of 6.15%, outperforming its benchmark by 172bps.The fund exposure in TFC/Sukuks was 23% of net assets as compared to 30% of net asset in previous month, while cash at bank has increased to 57% from 47% of net assets in previous month. The weighted average time to maturity of the portfolio is at 356days.


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

PIML-IF* PIML-IF** Benchmark***FYTD 7.31% 7.53% 6.15%CYTD 6.78% 6.86% 6.14%12M Trailing 4.67% 4.67% 6.12%Since Inception 11.35% 9.94% 7.36%AAR-Since Inception 11.55% 0.00% 47.66%Last 3 Yrs 12.56% 0.00% 6.58%Jul-17 6.70% 6.90% 6.14%Aug-17 7.87% 8.16% 6.15%

Fund Performance Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17Performance 4.12% 2.35% 7.57% 3.09% 6.70% 11.52% 5.00% 4.98% 5.13% 4.84% 7.01% 6.70% 7.87%Benchmark 5.56% 5.57% 6.07% 6.09% 4.41% 6.12% 6.13% 6.13% 6.16% 6.15% 6.15% 6.14% 6.15%

Period FY13 FY14 FY15 FY16 FY17 FY18TDPerformance 8.72% 8.24% 16.96% 11.71% 6.70% 7.31%Benchmark 9.46% 9.46% 8.35% 5.92% 6.14% 6.15%

Net Assets (PKR mn) 514.43NAV per Unit (PKR) 106.32Weighted Average Maturity (days) 356Sharpe Ratio* 1.95Information Ratio 0.036Standard Deviation 0.77%

Placements With Banks 19.63% 24.53%TFCs/Sukuks 21.60% 27.14%

Cash at Bank 57.32% 46.81%Others including receivables (NR) 1.45% 1.52%Total 100.00% 100.00%

20%

22%

0%

0%

57%

1% Placements With Banks

TFCs/Sukuks

PIBs

Tbill's

Cash at Bank


AA+ 0.00% 0.24%AA- 74.22% 67.73%A+ 4.70% 5.97%A 19.63% 24.53%Other including recievables (NR) 1.45% 1.52%Total 100.00% 100.00%

AKBL TFC-IV 23-Dec-11 - 23-Dec-21 13.72

TPL Sukuk 15-Apr-16 -13-Aug-21 4.70

HPL Sukuk 07-Jan-16 - 07-Jan-22 3.19

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 75,861,587 - 75,861,587 10.00% 13.72% 14.75%Mobilink Micro Finance Bank TDR 108,547,945 - 108,547,945 10.00% 19.63% 21.10%

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 Aug. ‘17

Fund Performance PIML - SMAF

The scheme has maintained a provision gainst Worker's Welfare Fund's liability to the tune of Rs.1,405,626, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs.0.9248/5.04% declining the YTD return to -4.46% 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

Open End

Balanced Fund


23rd August 2013


4.00 pm

Forward

2% p.a.


Moderate to High


Leverage Nil



M. Samir Malik, CFA



Sector Allocation (as % of T.A.)

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

Aug. ‘17 July. ‘17

Aug. ‘17 July. ‘17

Aug‘17 July‘17


Salman H. Sheikh

Hamza Saboor

M. Samir Malik, CFA

M. Samir Malik, CFA


Fund Manager

Asif Iqbal

M. Saeed Khalid








Total Expense Ratio

During the month under review, the fund generated a return of -7.67% as comapred to the benchmark return of -6.50%.Major contribution in funds negative return came from its cement exposure (LUCK & DGKC), PAEL, and ENGRO. Due to the negative corporate development in cement sector, the exposure in the sector was reduced and meanwhile increased in Banks, Power, and OMCs. While headwinds on the economic front may imapct equities in the near term, valuations across sectors have fallen to attractive levels on historic comparison and relative to emerging markets.



PIML-SMAF* PIML-SMAF** Benchmark***FYTD -9.50% 0.00% -6.63%CYTD -11.33% 0.00% -7.70%12M Trailing -0.63% 0.00% 4.39%Since Inception 57.10% 0.00% 61.75%AAR-Since Inception 11.14% 0.00% 11.98%Last 3 Yrs 47.66% 0.00% 25.63%Jul-17 -1.98% 0.00% -0.49%Aug-17 -7.67% 0.00% -6.50%

Fund Performance Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17Performance 1.03% 0.07% -2.31% 5.25% 8.92% 1.89% -0.32% -1.10% 2.78% 1.68% -6.68% -1.98% -7.67%Benchmark 0.64% 1.35% -0.89% 4.87% 8.88% 1.52% -0.18% -0.39% 1.77% 1.93% -4.84% -0.49% -6.50%

Period FY14 FY15 FY16 FY17 FY18TDPerformance 9.27% 28.64% 6.82% -1.98% -9.50%Benchmark 18.80% 13.40% 8.59% -0.49% -6.63%

Equity Securities 62.11% 60.95%Cash at Bank 34.60% 35.35%Others including recievables (NR) 3.29% 3.71%Total 100.00% 100.00%

62%

35%

3%Equity Securities

Cash at Bank

Others includingrecievables (NR)

CEMENT 11.26% 13.52%OIL & GAS MARKETING COMPANIES 10.46% 9.01%COMMERCIAL BANKS 5.22% 2.00%POWER GEN & DISTRIBUTION 4.23% 2.45%FERTILIZER 4.10% 3.91%Others 26.84% 30.06%

Lucky Cement Ltd LUCK 7.76%Sui Northern Gas Co Ltd SNGP 5.50%Pakistan State Oil Co Ltd PSO 4.96%Engro Corp Ltd ENGRO 4.10%Oil & Gas Development Co OGDC 3.91%Adamjee Insurance Co Ltd AICL 3.58%D.G Khan Cement Co Ltd DGKC 3.50%International Industries Ltd INIL 2.88%Bank Alfalah BAFL 2.85%Pak Electron Ltd PAEL 2.59%

AA & above 0.00% 0.03%AA- 34.59% 35.32%(NR) (includes equity investments) 65.40% 64.65%Total 100% 100%


Sharpe Ratio* -1.04Standard Deviation* 13.16%Treynor Ratio -0.120Beta 1.14R - Square** 89.58%Value at Risk 1.37%

The scheme has maintained a provision gainst Worker's Welfare

Fund's liability to the tune of Rs.1,582,196, if the same were not

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

would be higher by Rs.0.9790/4.99% declining the YTD return to

-10.61% p.a

SWWF Disclosure

Portfolio Allocation (as % of T.A.) Aug.’17 July.’17

Sector Allocation (as % of T.A.) Aug. ‘17 July. ‘17

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

Credit Quality of Portfolio (as % of T.A.) Aug‘17 July ‘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) Aug ‘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.


Haris Saeed Khan



Fund Performance PIML - IEF



Salman H. Sheikh

Hamza Saboor

M. Samir Malik, CFA

Haris Saeed Khan

Chief Investment O�cer &

Asif Iqbal

M. Saeed Khalid





Fund Manager


Total Expense Ratio

During the month under review, the fund generated a return of -12.60% as compared to the benchmark return of -11.94%. Major contribu-

tion in funds negative return came from its cement exposure (LUCK & DGKC), PAEL, ENGRO, and SEARL. Due to the negative corporate

development in cement sector, the exposure was decreased from 23% in the preceding month to 18.67%. And while at the same time

exposure was increased in the OMCs from 9.62% in the preceding month to 12.93%. While headwinds on the economic front may imapct

equities in the near term, valuations across sectors have fallen to attractive levels on historic comparison and relative to emerging

markets.


PIML-IEF* PIML-IEF** Benchmark***FYTD -15.60% 0.00% -11.31%CYTD -19.47% 0.00% -14.78%12M Trailing -5.88% 0.00% 0.44%Since Inception 38.49% 0.00% 61.75%AAR-Since Inception 9.75% 0.00% 14.74%Jul-17 -3.44% 0.00% 0.72%Aug-17 -12.60% 0.00% -11.94%

Fund Performance Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17Performance -0.05% 0.70% -2.48% 6.33% 11.94% 2.34% -1.45% -2.50% 4.19% 0.93% -8.93% -3.44% -12.60%Benchmark -0.99% -0.64% -3.36% 7.18% 14.51% 2.47% -0.29% -2.09% 3.23% 3.53% -8.99% 0.72% -11.94%

Period FY14 FY15 FY16 FY17 FY18TDPerformance 4.58% 24.96% 7.30% -3.44% -15.60%Benchmark 10.70% 20.10% 15.53% 0.72% -11.31%


86%

11%3%Equity Securities

Cash at Bank


CEMENT 18.67% 23.00%OIL & GAS MARKETING COMPANIES 12.93% 9.62%OIL AND GAS 8.63% 5.99%FERTILIZER 6.83% 6.47%POWER GEN & DISTRIBUTION 6.21% 3.64%Others 33.22% 29.79%

Lucky Cement Ltd LUCK 11.14%Oil & Gas Development Co OGDC 8.63%Pakistan State Oil Co Ltd PSO 7.62%Engro Corp Ltd ENGRO 6.83%Sui Northern Gas Co Ltd SNGP 5.32%Pak Electron Ltd PAEL 4.94%International Industries Ltd INIL 4.91%D.G Khan Cement Co Ltd DGKC 4.43%Nishat Mills Ltd NML 4.07%Searl Co Ltd SEARL 3.55%

AA 0.0% 11%AA+ 0.00% 0.01%AA- 10.88% 8.62%NR (includes equity investments) 89.11% 80.21%Total 100% 100%


Sharpe Ratio -1.02Standard Deviation* 19.28%Treynor Ratio -0.222Beta 0.89R - Square** 87.05%Value at Risk 2.01%




The scheme has maintained a provision gainst Worker's Welfare Fund's liability to the tune of Rs.275,844, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs.0.2628/1.51% enhancing the YTD return to 6.72% p.a

SWWF Disclosure

PIML Islamic Income Fund



During the month under review, PIML-IIF generated an annualized return of 7.22% as compared to benchmark return of 2.31%, outperforming its benchmark by 491bps. The fund maintained its exposure in cash at bank at 98%. 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 (13th December 2016)

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

1%


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


Fund Statistics

* Annualized

Apr‘15


Salman H. Sheikh

Hamza Saboor

M. Samir Malik, CFA

Khawar Salman


Fund Manager

Asif Iqbal

M. Saeed Khalid




Fund Performance PIML - IIF

*Simple Annualized **Morning Star***Average of reporting period Fund returns are calculated NAV to NAV with dividends reinvested (excluding sales load)





Total Expense Ratio


PIML-IIF* PIML-IIF** Benchmark***FYTD 5.21% 5.33% 2.35%CYTD 3.41% 3.43% 2.59%12M Trailing 4.30% 4.30% 2.75%Since Inception 5.63% 5.27% 4.66%AAR-Since Inception 6.64% 0.00% 5.67%Jul-17 3.19% 3.23% 2.39%Aug-17 7.22% 7.46% 2.31%

Fund Performance Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17Performance 6.16% 4.77% 5.28% 7.23% 6.35% 2.02% 3.11% 3.12% 3.19% 3.10% 1.97% 3.19% 7.22%Benchmark 3.91% 3.88% 2.84% 2.80% 2.82% 2.75% 2.75% 2.83% 2.74% 2.74% 2.37% 2.39% 2.31%

Period FY14 FY15 FY16 FY17 FY18TDPerformance 5.46% 5.08% 6.26% 3.19% 5.21%Benchmark 6.49% 6.18% 4.59% 2.39% 2.35%


Weighted Average Maturity (days) 1Sharpe Ratio* (1.29) Information Ratio 0.31Standard Deviation 0.51%

98%

0%

2%

Cash at Bank

Sukuk


Cash at Bank 97.80% 98.05%Others including receivables (NR) 2.20% 1.95%Total 100.00% 100.00%

AAA 0.00% 0.01%AA+ 0.00% 0.02%

AA- 97.80% 98.01%

A 0.00% 0.02%Other including recievables (NR) 2.20% 1.95%Total 100.00% 100.00%





would be higher by Rs.0.9068/4.71% declining the YTD return

to -9.08% p.a.

SWWF Disclosure



Fund Statistics


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



M. Samir Malik, CFA




Salman H. Sheikh

Hamza Saboor

M. Samir Malik, CFA

M. Samir Malik, CFA


Asif Iqbal

M. Saeed Khalid







Fund Manager


Total Expense Ratio

Fund Manager’s ReviewDuring the month under review. the fund generated a return of -11.33% as compared to the benchmark return of -10.44%. major contribution in funds

negative return came from its cement exposure (LUCK&DGKC), PAEL, ENGRO and AICL. Due to the negative corporate development in cement sector , the

exposure was decreased from 22.4% in the preceding month to 15.7%. While headwinds on the economic front may imapct equities in the near term,

valuations across sectors have fallen to attractive levels on historic comparison and relative to emerging markets.


PIML-VEF* PIML-VEF** Benchmark***FYTD -13.79% 0.00% -11.51%CYTD -17.21% 0.00% -13.81%12M Trailing -1.71% 0.00% 3.51%Since Inception 20.84% 0.00% 26.47%AAR-Since Inception 8.15% 0.00% 9.80%Jul-17 -2.78% 0.00% -1.19%Aug-17 -11.33% 0.00% -10.44%

Fund Performance Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17Performance 2.35% 1.13% 3.20% 8.21% 10.92% 3.20% -1.59% -1.15% 3.91% 1.34% -9.16% -2.78% -11.33%Benchmark 0.71% 1.84% 1.99% 6.84% 12.16% 1.99% -0.46% -0.78% 2.38% 2.62% -8.23% -1.19% -10.44%

Period FY15 FY16 FY17 FY18TDPerformance 9.11% 4.99% -2.78% -13.79%Benchmark 4.64% 9.84% -1.19% -11.51%


85%

11%4%

Equity Securities

Cash at Bank


CEMENT 15.70% 22.40%OIL & GAS MARKETING COMPANIES 13.08% 10.13%ENGINEERING 8.89% 7.67%COMMERCIAL BANKS 7.51% 6.07%INSURANCE 5.46% 4.98%Others 33.92% 35.85%

Lucky Cement Ltd LUCK 7.80%Pakistan State Oil Co Ltd PSO 6.86%Sui Northern Gas Co Ltd SNGP 6.22%D.G Khan Cement Co Ltd DGKC 6.10%Adamjee Insurance Co Ltd AICL 5.46%Oil & Gas Development Co OGDC 4.79%Engro Corp Ltd ENGRO 4.63%Aisha Steel Mills Ltd ASL 4.16%Pak Electron Ltd PAEL 3.60%International Industries Ltd INIL 3.41%

AA- 11.2% 9%A 0.00% 0.11%A- 0.00% 0.01%NR (includes equity investments) 88.81% 90.76%Total 100% 100%


Sharpe Ratio* -0.99Standard Deviation* 18.11%Treynor Ratio -0.177Beta 1.01R - Square** 88.42%Value at Risk 1.88%




would be higher by Rs.0.4601/2.89% declining the YTD return to

-6.66% 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

Performance RankingBenchmark

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

Not Available


12th April 2016


4.30 pm

Forward

2% p.a.

Front end 3%

Moderate to High


Leverage Nil




M. Samir Malik, CFA


During the month under review, the fund generated a return of -7.21% as compared to the benchamrk return of -6.28%. Major contribu-

tion in funds negative return came from its cement exposure (LUCK & DGKC) and AICL. We increased our exposure in OMCs, Banks, and

Pharma meanwhile the exposure in cements was decreased. While headwinds on the economic front may imapct equities in the near

term, valuations across sectors have fallen to attractive levels on historic comparison and relative to emerging markets.


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

Aug.’17 July.’17

Aug. ‘17 July. ‘17Investment Committee Members

Salman H. Sheikh

Hamza Saboor

M. Samir Malik, CFA

M. Samir Malik, CFA


Fund Manager

Asif Iqbal

M. Saeed Khalid





Fund Statistics

* Annualized

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 Aug. ‘17



Total Expense Ratio

Name of Non-Compliant Type of Value of Investment Provisioning Value of Investment Limit % of Gross

% of Net

Investment Investment Before Provisioning held (if any) After Provisioning Asset Asset Mobilink Micro�inance Bank TDR 54,273,973 - 54,273,973 10.00% 24.81% 25.40%


Period FY16 FY17 FY18TDPerformance 4.99% -2.52% -9.55%Benchmark 9.84% -0.57% -6.40%

Fund Performance Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17Performance 0.23% -0.15% -1.08% 0.13% 4.82% 2.56% -1.08% -0.66% 2.93% 2.51% -7.58% -2.52% -7.21% 2.51% -7.58% -2.52% -7.21%Benchmark 0.51% 0.62% -0.07% 1.51% 6.45% 1.45% -0.07% -0.44% 1.82% 1.95% -5.79% -0.57% -6.16% 1.95% -5.79% -0.57% -6.16%

PIML-AAF PIML-AAF BenchmarkFYTD -9.55% 0.00% -6.40%CYTD -11.10% 0.00% -7.89%12M Trailing -7.71% 0.00% 4.71%Since Inception -4.41% 0.00% 13.99%AAR-Since Inception -6.09% 0.00% 5.17%Jul-17 -2.52% 0.00% -0.57%Aug-17 -7.21% 0.00% -6.16%

Equity Securities 60.08% 61.37%Placement with Banks 24.81% 16.56%Cash at Bank 9.80% 18.70%Others including receivables (NR) 5.31% 3.37%Total 100.00% 100.00%

60%25%

10%5% Equity Securities

Placement with Banks

Cash at Bank


OIL & GAS MARKETING COMPANIES 9.37% 7.62%CEMENT 8.74% 11.57%COMMERCIAL BANKS 7.52% 2.97%ENGINEERING 7.22% 10.01%PHARMACEUTICALS 4.03% 1.95%Others 23.19% 27.25%

Sui Northern Gas Co Ltd SNGP 5.27%Lucky Cement Ltd LUCK 4.96%Pakistan State Oil Co Ltd PSO 4.11%D.G Khan Cement Co Ltd DGKC 3.78%International Industries Ltd INIL 3.74%Aisha Steel Mills Ltd ASL 3.65%Mughal Iron & Steel Industries Ltd MUGHAL 3.56%Synthetic Products Enterprises Ltd SPEL 2.99%Adamjee Insurance Co Ltd AICL 2.83%MCB Bank MCB 2.69%

AA- 9.8% 19%A 24.81% 16.56%Other including recievables (NR) 65% 65%Total 100% 100.00%

Net Assets (PKR mn) 213.71 NAV per Unit (PKR) 93.67

Standard Deviation* 12.71%Sharpe Ratio* (1.08) Information Ratio -0.093

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:O�ce#11, Executive Business Centre (Ground Floor), Saudi Pak Tower, Jinnah Avenue, Islamabad.Board: (+92-51) 2800397-8

Lahore O�ce:1st Floor, Commercial Plaza, 852-D, Faisal Town, Akber Chowk, Lahore.Board: (+92-42) 35221632-4

Headquarter: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”

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