FUND MANAGER REPORT - AWT InvestmentsCIO Comment 2 of 12 MUFAP’s recommended format Fund Manager Report - January 2017 “This publication is for informational purposes only and

FUND MANAGER REPORT

FOR THE MONTH OF JANUARY 2017

CIO Comment

2 of 12 MUFAP’s recommended format

Fund Manager Report - January 2017

“This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation o.”

KSE 100 index gaining 2.0% during the month of Jan ’17. In the outgoing month the KSE 100 index also touched a record high of 50,132 which shows signs of increased liquidity and market rerating

idity from local investors in the retail and mutual funds category with increased volumes and 2) SBP maintaining the discount rate at 5.75% in the recently held MPS.

20th of January 2017 and swiftly issued executive orders, including a ban on Muslims from seven countries from entering the U.S. These executive orders have been viewed as a cause of concern for investors in the local market as the possibility of Pakistan being included in the list of countries being banned. We are of the view that the Pak-US relations will be based on the strategy adopted by the new President towards the region, which will ultimately shape the actual impact on the local market and foreign liquidity. However, as of now Pakistan is in a comfortable macroeconomic and political scenario due to the strategic geographic importance for China and Russia and the economic corridor being developed.

xcitement and momentum alive. Furthermore, members of Chinese team are expected to join the board of PSX on Feb 10th after a formal signing of agreement. We believe that the deal opens up exciting possibilities in the form of new products and enhanced technological base for the PSX.

KEY FACTORS TO MONITOR:

is expected due to the upgrade of inForeign Institution Portfolio

Investment, 5) progress on CPEC related projects, 6)earnings announcements of some of the index heavy-weights (Banks,fertilizer, autos,& few E&Ps), 7) USD-PKR parity& 8) US policy towards the region and trade.

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

e 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

ON THE INTERNATIONAL FRONT:

The US markets welcomed Donald Trump, with the S&P and Dow Jones increasing 1.91% and 0.51% respectively. The MSCI EM also staged a rally of 5.45% whilst the MSCI FM index increased by 6.66% mainly due to the volatility witnessed in the dollar. Crude oil (WTI) staged a breather and decreased by --1.69% during the month of January.


Key Economic Indicators



Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17External Sector IndicatorsOverall Balance of Payments USD million 415 2 (104) 253 (688) (1,059) (274) (54) (298) (520) 484 88 n.a.Current Account Balance USD million (610) 157 239 100 (792) (61) (234) (721) (161) (381) (839) (1,083) n.a.Exports USD million 1,772 1,791 1,742 1,722 1,832 1,651 1,479 1,658 1,543 1,756 1,762 1,727 n.a.Imports USD million 3,509 3,304 3,594 3,872 4,008 4,467 3,557 4,331 3,858 4,026 4,255 4,488 n.a.Worker's Remittances USD million 1,463 1,516 1,469 1,657 1,799 2,073 1,328 1,761 1,609 1,560 1,616 1,584 n.a.Foreign Direct Investment USD million 24 103 162 59 64 198 64 113 249 67 460 595 n.a.Foreign Portfolio Investment USD million (72) (34) (502) (35) 4 61 50 41 28 (67) (95) (302) n.a.Forex Reserves USD billion 21.07 20.33 20.92 20.79 21.61 21.77 22.99 23.08 23.42 24.33 23.29 23.20 23.25Exchange Rate against PKRUSD Period End 104.90 104.64 104.72 104.74 104.74 104.59 104.77 104.66 104.50 104.58 104.85 104.38 104.8Inflation IndicatorsGeneral CPI YoY change 3.30% 4.00% 3.90% 4.20% 3.17% 3.19% 4.12% 3.60% 3.90% 4.20% 3.81% 3.70% 3.66%Food CPI YoY change 2.50% 3.70% 3.70% 4.70% 2.10% 2.30% 4.70% 3.40% 4.00% 4.40% 3.30% 3.00% 2.60%Core (NFNE) YoY change 4.30% 4.50% 4.70% 4.40% 4.60% 4.60% 4.50% 4.60% 4.80% 5.20% 5.30% 5.20% 5.40%Core (Trimmed) YoY change 3.00% 3.60% 3.80% 3.80% 3.60% 3.70% 3.60% 3.50% 3.70% 3.80% 3.80% 3.70% 3.80%Interest RatesSBP Policy Rate Current 6.00% 6.00% 6.00% 6.00% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75% 5.75%6 Month KIBOR Month Avg. 6.42% 6.36% 6.36% 6.36% 6.31% 6.11% 6.02% 6.02% 6.05% 6.08% 6.08% 6.15% 6.12%12 Month KIBOR Month Avg. 6.70% 6.66% 6.65% 6.66% 6.62% 6.42% 6.31% 6.33% 6.35% 6.37% 6.40% 6.43% 6.41%3 Month T-Bill Yield Month Avg. 6.21% 6.22% 6.19% 5.98% 6.11% 5.91% 5.83% 5.83% 5.87% 5.88% 5.91% 6.67% 5.90%6 Month T-Bill Yield Month Avg. 6.22% 6.22% 6.20% 5.98% 6.14% 5.93% 5.82% 5.87% 5.90% 5.91% 5.93% 5.98% 5.91%12 Month T-Bill Yield Month Avg. 6.23% 6.22% 6.20% 6.00% 6.18% 5.96% 5.83% 5.89% 5.91% 5.92% 5.97% 6.03% 5.94%

Key Economic Indicators

g10 Year PIB Yield Month Avg. 8.85% 8.25% 8.23% 8.18% 8.18% 8.02% 7.80% 7.80% 7.80% 7.80% 7.80% 7.80% 7.94%n.a.=Not AvailableSource: SBP, MoF, PBS

Market Review

The month of January 2017 witnessed KSE100 posting a meager return of 2% MoM, and culminated in FYTD return of 29%. The average volumes in the outgoing month stood at 443 million shares being traded, up 26% MoM as compared to 351 million shares traded in December 2016.

s (USD39mn), and Companies (USD29mn). The foreign selling pressure comparatively eased in the outgoing month as compared to foreign selling of USD144mn in the month of December 2016.

the most impressive returns among the key sectors. Meanwhile, muted performance was seen in Food & Personal Care (+1% MoM), and Banks (+1%) sector. The negative performance was seen in Oil and Gas Exploration (-5% MoM) and in Textile sector (-1% MoM). The government imposed anti-dumping duties on China and Ukraine which kept the Steel sector in limelight. The improved GRMs, in the outgoing month, on the back of recovery in HSD/FO margins post OPEC deal in November 2016 enabled

i Petroleum led to subdued performance in the Banks and E&P sector.

On the political front, hearings on Panama Leaks resumed but nothing concrete has been reached so far. SBP kept interest rates unchanged at 5.75%/6.25% in the January 2017 MPS keeping in view the massive increase in CAD (up by ~112%YoY) in the 1HFY17 of USD 3.6bn as compared to that of USD 1.7bn in the correspond-ing period.

Going forward in CY17 liquidity is expected to remain on the positive side owing to the rise in exposure of the domestic institnew derivative products are

expected to be introduced.

Equity Market Review:

In the two T-Bills auctions held in the outgoing month, SBP accepted amount worth Rs770bn against the target of Rs650bn. In the12M securities stood at 5.9463%,

5.9896%, and 5.9935% respectively. The T-Bill yields were down by 2-4bps. In the second auction held on January 18, 2017, the SBP raised Rs519bn against the ill yields were down by 4-6bps.

In the PIB auction held on January 25, 2017, the SBP raised an amount worth Rs38.338bn against the target of Rs50bn. The SBP has not been auctioning since PIBs were sold at 6.8998% as

compared to 6.7010% at the September auction. The Central bank sold Rs28.985bn of 3yr paper at 7.6.4074%, higher than 6.1970% at the previous auction. Howev-er, the bids were rejected in 20 year paper.

Money Market Review:


.3% in January 2016. On MoM basis, it increased by 0.2% in January 2017 as compared to a decrease of 0.7% in the previous month and an increase of 0.2% in January 2016.

mber 2016. The further as imports increased by 9%

MoM leading the trade balance to increase by 16% MoM. The cumulative CAD widened by 92% YoY in 1HFY17 to USD 3.6bn as compared to USD 1.8bn in the 9mn increase in FDI portion

Interestingly, amid weakening CAD, PKR seems to stand resilient against all the major trading partners. Pak rupee remained stable against USD at 104.95 (interbank rate). And the local currency depreciated by mere 0.05%MoM in the outgoing month against the USD. Further, based on REER, the currency overvaluation is close to 15-20%. We believe PKR is expected to remain range bound at least till 2018 elections. Other major macroeconomic developments include i) credit to private

Going forward, key near term market drivers will be progress on Panama Leaks case, local liquidity dynamics and result season which has just commenced. On the international front, the Trump’s stringent stance regarding the immigrants and travel ban on 7 countries can likely cause jittery in the market in the short term. We

sectors) will enable the local bourse to march further upwards.

Economic Review:


-


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

Ahmed Ateeq

Hamza Saboor

M. Samir Malik, CFA

Khawar Salman

Rida Jiwani

Fund Manager

Asif Iqbal

Saeed Khalid

Head of Compliance and Risk

Acting Head of Research

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

SWWF Disclosure

Total Expense Ratio

PIML Daily Reserve Fund


Fund Details

Fund Type

Category

Fund Stability Rating

Benchmark

Inception Date

Dealing Days

Pricing Mechanism

**Management Fee

Load

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Open End

Money Market

AA(f ) by PACRA (13 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 (04 May 2016)

1st January 2013

Daily (days when Banks are open for business)

4.00 pm

Forward

1.00%

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

Fund Statistics

* Annualized

Portfolio Allocation (as % of T.A.)

Fund returns are calculated NAV with dividends reinvested (excluding sales load)*The reported returns includes provisioning of Sindh Workers’ Welfare Fund and reversal of Federal Workers’ Welfare Fund

Period FY13 FY14 FY15 FY16

Performance 9.87% 8.91% 9.58%Benchmark 7.93% 8.43% 7.77%

6.00%5.40%

Net Assets (PKR mn) 642.60 NAV per Unit (PKR) 79.29Weighted Average Maturity (days) 45Sharpe Ratio* 1.23Information Ratio 0.158Standard Deviation 1.18%

T-Bills

Others including receivables (NR)Total

AAA (Government Securities)AAAAA+AAOthers including receivables (NR)

%00.001latoT

Jan. ‘1771.43%

0.22%0.01%

27.59%0.75%

Dec. ‘1624.42%74.99%

0.01%0.10%0.48%

100.00%

100.00%

Cash at Bank

Jan. ‘17

71.43%27.82%

0.75%

Dec. ‘16

24.42%75.10%

0.48%100.00%

ratS gninroM**dezilaunnA elpmiS* ***Average of reporting period

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

Portfolio Allocation (as % of total assets) Dec. ‘16

T-Bills, 24.42%

Cash,75.10%

Others Including Receivables,

0.48%

*


Fund Performance PIML - DRFPDRF* PDRF** Benchmark***

FYTD 7.23% 7.34% 4.48%CYTD 18.86% 20.58% 5.26%12M Trailing 6.51% 6.51% 4.61%Since Inception 9.38% 8.27%

0.00%0.00%

6.39%AAR-Since Inception 8.31% 5.86%Last 3Yrs 6.60% 6.50%

Jan 17 18.86% 20.58% 4.39%Dec 16 6.70% 6.91% 4.41%

Performance

Benchmark

Fund Performance

5.81%5.28%

5.11%5.27%

5.31%5.15%

Feb. ‘16 Mar. ‘16 Apr. ‘16

5.52%5.12%

4.34%5.04%

May. ‘16 Jun. ‘16

5.76%4.96%

Jul. ‘16

4.56%4.94%

Aug. ‘16

5.02%4.94%

Sep. ‘16

4.79%4.39%

Oct. ‘16

4.88%4.40%

Nov. ‘16

6.70% 18.86%4.39%4.41%

Dec. ‘16 Jan.‘17


The scheme has maintained a provision against Sindh Sindh Worker's Welfare Fund's liability to the tune of Rs.1,604,325, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs.0.2000/0.4282% enhancing the YTD return to 7.66% p.a.

Total Expense Ratio is 0.83% which Includes 0.30% of Governement Levy and 0.04% of SECP Fee calculated as % of Average Net Asset Value.

During the month under review, the fund generated an annualized return of 18.86% against the benchmark return of 4.39%, denoting an outperformance. The fund's exposure in Treasury Bills was increased to 72.43% as compared to 25.03%,of the net asset in the previous month while remaining assets are held as cash at bank. The weighted average time to maturity of the portfolio stands is 45 days.

6

Period FY13 FY14 FY15 FY16

SWWF Disclosure


ratS gninroM**dezilaunnA elpmiS* ***Average of reporting period

PIML Income Fund

of 12 MUFAP’s recommended format

Fund Details

Fund Type

Category


Benchmark

Inception Date

Dealing Days

Pricing Mechanism

**Management Fee

Load

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Open End

Income Scheme

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

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

Management Co. Rating

9th August 2012


5.00 pm

Forward

1.50%


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



Ahmed Ateeq

Hamza Saboor

M. Samir Malik, CFA

Khawar Salman

Rida Jiwani

Fund Manager

Asif Iqbal

Saeed Khalid



Note: Category of PIML IF has been changed from money market to income fund w.e.f. 17th April 2014.

Performance 8.72% 8.24% 16.96% 11.71%Benchmark 9.46% 9.46% 8.35% 5.92%

Fund Statistics

* Annualized ^Excluding Govt. Securities

Net Assets (PKR mn) 3758.48 NAV per Unit (PKR) 102.72Weighted Average Maturity (days) 78Sharpe Ratio* -1.55Information Ratio 0.203Standard Deviation 1.15%


Placements with BanksTFCs / SukuksPIBsCash at BankOthers including receivables (NR)

0.00%%00.31slliB-T%00.001%00.001latoT

Jan. ‘17

18.41%6.07%

18.18%42.96%

1.37%

Dec. ‘16

20.87%5.68%

32.19%39.61%

1.66%

Credit Quality of Portfolio (as % of T.A.)AAA (Government Securities)AAAAA+AA

Others including receivables (NR)

AA-A+AA-

100.00%100.00%Total

31..0

0.29.

1.

11.3.

16.6.

0

Jan ‘17 Dec`1619% 32.19%

4% 0.00%00% 0.00%21% 26.60%

37% 1.66%

74% 14.64%54% 3.31%29% 15.46%62% 6.14%

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

BAFL TFC-V 20-Feb-13 - 20-Feb-21AKBL TFC-IV 23-Dec-11 - 23-Dec-21

Jan. ‘17

0.02%2.02%

PEL Sukuk 25-Aug-16 - 24-Nov-19 2.88%

HPL Sukuk 07-Jan-16 - 07-Jan-22 0.52% TPL Sukuk 15-Apr-16 - 13-Aug-21 0.70%

AM3+ by JCR-VIS (04 May 2016)

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



Fund Performance PIML -IFPIML-IF* PIML-IF Benchmark*****

FYTD 4.06% 4.10% 6.08%CYTD 11.52% 12.15% 6.12%12M Trailing 7.51% 7.51% 6.17%Since Inception 11.63% 10.45% 7.61%AAR-Since Inception 9.86% 0.00%

0.00%7.84%7.24%Last 3 Yrs 6.19%

Jan 17 11.52% 12.15% 6.12%-3.97% -3 90% 6.14%Dec 16

Total Expense Ratio

Performance 19.72% 7.88%Benchmark 5.78% 5.78%

Fund Performance Feb. ‘16 Mar. ‘16

5.75%5.71%

Apr. ‘16

13.43%5.68%

12.70%5.56%

10.63%5.58%

May. ‘16 Jun. ‘16 Jul. ‘16

4.12%5.56%

Aug. ‘16

2.35%5.57%

Sep. ‘16

7.57%6.07%

Oct. ‘16

3.09%6.09%

Nov. ‘16

-3.97% 11.52%6.12%6.14%

Dec. ‘16 Jan. ‘17


The scheme has maintained a provision against Sindh Worker's Welfare Fund's liability to the tune of Rs.11,628,866, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs.0.3200/0.5289% enhancing the YTD return to 4.59% p.a.

*The reported returns includes provisioning of Sindh Workers’ Welfare Fund and reversal of Federal Workers’ Welfare Fund

Total Expense Ratio is 1.08% which Includes 0.33% of Governement Levy and 0.04% SECP Fee calculated as % Average Net Asset Value.

During the month under review, the fund generated a return of 11.52% as compared to its benchmark return of 6.12%. The outperforming by 540bps. The fund's exposure in Treasury Bills was increased 72.43 & reduced exposure in PIB's to 18.39% as compared to 38.31% of net asset in the previous month. The weighted average time to maturity of the portfolio stands at 78 days.

Performance -1.49%Benchmark 0.31%

5.14%4.07%

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

dezilaunnA *.etar eerF‐ksiR sa desu dleiy VRKP M3

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

Fund Statistics

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

SWWF Disclosure


PIML Strategic Multi Asset Fund


Fund Details

Fund Type

Category

Performance RankingBenchmark

Inception Date

Dealing Days

Pricing Mechanism

Management Fee

Load

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Open End

Balanced Fund

3 Star by PACRA (07 December 2016)


23rd August 2013


4.00 pm

Forward

2% p.a.


Moderate to High


Leverage Nil



Samir Malik


Fund Performance Feb. ‘16 Mar. ‘16

1.39% -0.02%3.46% 2.78%

2.36% 4.21%3.16%3.32%

Apr. ‘16 May. ‘16

Sector Allocation (as % of T.A.)


Stocks / Equities

PIBsCash at BankOthers including recievables (NR)

Jan. ‘17

67.74%

7.02%17.61%2.63%

%99.4skukuS

Dec. ‘16

67.44%

7.82%15.79%3.28%

5.67%

%00.001%00.001latoT

Others including recievables (NR) 2.63% 3.28%

Jan. ‘17

Hub Power Co. Ltd HUBC 2.46%

DG Khan Cement Co. Ltd DGKC 4.16%LUCK 3.90%

Kot Addu Power Co. Ltd. KAPCO 3.81%

2.59%Fauji Cement Co. Ltd. FCCL

Nishat Mills Ltd. NML 3.07%Pakistan State Oil Co. Ltd. PSO 3.07%

Adamjee Insurance Co. Ltd. AICL 2.70%

AAA (Government Securities)AAAAA & above

Jan. ‘17

7.02%0.13%

10.37%%99.4A%21.7-AA

(NR) (includes equity investments) 70.37%

Dec. ‘16

7.82%0.14%1.72%5.67%

13.94%70.72%

%00.001%00.001latoT

Net Assets (PKR mn) 358.69NAV per Unit (PKR) 124.17Sharpe Ratio* 1.70Standard Deviation* 9.53%Treynor Ratio 0.150Beta 1.08R - Square** 81.88%Value at Risk 0.99%


Ahmed Ateeq

Hamza Saboor

M. Samir Malik, CFA

Samir Malik

Rida Jiwani

Fund Manager

Asif Iqbal

Saeed Khalid



Period FY14 FY15


FY16

6.82%8.59%



Engro Corp Ltd. ENGRO 6.72%

Jun. ‘16 Jul. ‘16

0.07%1.35%

Sep. ‘16

-2.31%-0.89%

Oct. ‘16

5.25%4.87%

Nov. ‘16

8.92%8.88%

Dec. ‘16

1.89%1.52%

Jan. ‘17

1.03%0.64%

Aug. ‘16

Total Expense Ratio

15.16%

Dec. ‘16

3.56%Oil & Gas Exploration Companies 6.02%

6.29%Textile Composite 5.54%

Insurance 3.99% 2.30%

7.31%Fertilizer 7.64%

Power Generation & Distribution 6.27% 7.59%

Pharmaceuticals 3.45% 1.94%

Commercial Banks 6.29% 6.70%

Other Sectors 7.79% 9.61%

Oil & Gas Marketing Companies 3.07% 2.56%Automobile Assembler 2.48% 2.11%Paper & Board 2.00%2.07%

13.42%Cement

Pak Elektron Ltd PAEL (Sukuk+Equity) 8.98%

Lucky Cement Ltd.



Fund Performance PIML - SMAF

PIML-SMAF* Benchmark**FYTD 20.24% 20.64%CYTD 1.89% 1.52%12M Trailing 29.22% 11.83%Since Inception 80.53% 81.25%AAR-Since Inception 18.88% 18.09%Last 3 Yrs 47.96% 63.53%

Jan 17 1.89% 1.52%Dec 16 8.92% 8.88%





During the month under review, the fund generated a return of 1.89% as compared to the benchmark return of 1.52%, denoting an outperformance by 38 bps. The fund continued to increase its exposure in the cement sector, and remained overweight, as we believe increased construction activities in the country, uninterrupted supply of energy and various expansion plans announced by major local cement manufactures to cater to the ever increasing demand of cement, will help us to generate alpha and aid us to outperform the benchmark. The total equity exposure was slightly increased to 68.92% of the net assets as compared to 68.60% of the net assets in the previous month. The fund’s exposure in Debt securities including Govt. Securities was registered at 12.23% of the net assets as compared to 13.72% of the net assets in the previous month.


Performance

Benchmark

SWWF Disclosure



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


PIML Islamic Equity Fund


Fund Details

Fund Type

Category

Performance Ranking

Benchmark

Inception Date

Dealing Days

Pricing Mechanism

Management Fee

Load

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Open End

Islamic Equity Scheme

3 Star by PACRA(07 December 2016)

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

Net Assets (PKR mn) 288.66NAV per Unit (PKR) 146.66Sharpe Ratio 1.71Standard Deviation* 12.57%Treynor Ratio 0.257 Beta 0.83 R - Square** 78.10%Value at Risk 1.31%


Fund Performance PIML - IEF

PIML-IEF* Benchmark**FYTD 25.51% 26.67%CYTD 2.34% 2.47%12M Trailing 37.40% 27.50%Since Inception 76.00% 94.48%AAR-Since Inception 21.39% 25.63%Dec 16 11.94% 14.51%Jan 17 2.34% 2.47%

Period FY14 FY15


FY16

7.30%15.53%



Ahmed Ateeq

Hamza Saboor

M. Samir Malik, CFA

Haris SaeedRida Jiwani

Asif Iqbal

Saeed Khalid



Fund Manager Total Expense Ratio


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

Fauji Cement Co. Ltd. FCCL 4.09%Deewan Cement Ltd. DCL 3.38%Searle Co. Ltd. SEARL 2.90%

D.G.Khan Cement DGKC 5.30%

Cherat Cement Ltd. CHCC 4.11%

Lucky Cement Ltd. LUCK 6.10%

Pakistan State Oil Co. Ltd PSO 4.51%

Hub Power Co. Ltd HUBC 5.97%

Engro Corporation Ltd ENGRO 6.65%

Kot Addu Power Co. Ltd KAPCO 5.23%

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

%50.82tnemeC

Dec. ‘16

21.14%Power Generation & Distribution 12.21% 11.70%

9.24%Fertilizer 7.86%

4.23%3.61%Other SectorsAutomobile Assembler 2.67% 3.30%

Textile Composite 4.43% 3.42%Oil & Gas Marketing Companies 4.51% 4.34%

Oil & Gas Exploration Companies 3.86% 4.99%

Automobile Parts & Accessories 2.00% 2.35%

2.65%Engineering 1.97%

Cable & Electrical Goods 2.32% 1.45%2.21%Miscellanous 2.22%

2.52%2.62%Paper & Board

Pharmaceuticals 6.23% 5.87%

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

Equity Securities 86.61%Cash at Bank 11.43%Others including recievables (NR) 1.96%

Dec. ‘16

80.34%15.51%

4.14%%00.001%00.001latoT

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

%10.0AAA%99.0AA

A 10.44%NR (includes equity investments) 88.57%

Dec. ‘16

0. 01%0.73%

14.77%84.49%

%00.001%00.001latoT

-2.75% 7.28%-0.15% 8.30%

Feb. ‘16 Mar. ‘16

1.25%3.98%

0.76%4.51%

2.85%4.58%

4.99%5.95%

Apr. ‘16 May. ‘16 Jun. ‘16 Jul. ‘16

-0.05%-0.99%

Aug. ‘16

0.70%-0.64%

Sep. ‘16

-2.48%-3.36%

Oct. ‘16

6.33%7.18%

Nov. ‘16

11.94%14.51%

Dec. ‘16

2.34%2.47%

Jan. ‘17





During the month under review, the fund generated a return of 2.34% as compared to the benchmark return of 2.47%. In the outgoing month, the fund’s total equity exposure was increased to 92.51% of the net assets as compared to 91.09% of the net assets in the previous month. The fund continued to increase its exposure in the cement sector, and remained overweight, as we believe increased construc-tion activities in the country, uninterrupted supply of energy and various expansion plans announced by major local cement manufac-tures to cater to the ever increasing demand of cement, will help us to generate alpha and aid us to outperform the benchmark.


Performance

Benchmark




SWWF Disclosure

PIML Islamic Income FundFormerly: PIML Islamic Money Market Fund


Note: Category of PIML IIF has been changed from shariah compliant money market to shariah compliant income fund w.e.f. 2nd October 2015.

Fund Details

Fund Type

Category


Benchmark

Inception Date

Dealing Days

Pricing Mechanism

**Management Fee

Load

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Open End

Islamic Income Scheme

A(f ) by PACRA (13 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

1.00%


Low to Moderate Risk


Leverage Nil


KPMG Taseer Hadi & Co


Khawar Salman

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

Fund Objective

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

Fund Statistics

* Annualized

Ahmed Ateeq

Hamza Saboor

M. Samir Malik, CFA

Khawar Salman

Rida Jiwani

Fund Manager

Asif Iqbal

Saeed Khalid




Fund Performance

Net Assets (PKR mn) 176.91 NAV per Unit (PKR) 103.18Weighted Average Maturity (days) 47Sharpe Ratio* (1.11) Information Ratio 0.46 Standard Deviation 0.46%

%27.18knaB ta hsaC

Others including receivables (NR) 2.97%%13.51skukkuS

Dec. ‘16

90.27%

1.28%8.45%

%00.001%00.001latoT

Fund Performance PIML - IIF

ratS gninroM**dezilaunnA elpmiS* ***Average of reporting period Fund returns are calculated NAV to NAV with dividends reinvested (excluding sales load)

PIML-IIF* PIML-IIF** Benchmark**FYTD 5.33% 5.38% 3.27%CYTD 2.02% 2.03% 2.75%12M Trailing 5.63% 5.63% 3.67%Since Inception 6.01% 5.71% 5.14%AAR-Since Inception 5.53% 0.00% 5.12%

Jan 17 2.02% 2.03% 2.75%Dec 16 6.35% 6.54% 2.82%

%30.0AAA%10.0AA

A+ 15.31%

Others including receivables (NR) 2.97%

Dec. ‘16

0.02%0.00%8.45%

A 81.68% 90.25%1.28%

%00.001%00.001latoT

Period FY14 FY15


FY16

6.26%4.59%

5.52%4.24%

8.89%4.06%

Feb. ‘16 Mar. ‘16

5.42%4.50%

5.12%4.43%

4.04%3.99%

5.03%3.88%

Apr. ‘16 May. ‘16


Jun. ‘16 Jul. ‘16

6.16%3.91%

Aug. ‘16

4.77%3.88%

Sep. ‘16

5.28%2.84%

Oct. ‘16

7.23%2.80%

Nov. ‘16

6.35%2.82%

Dec. ‘16

2.02%2.75%

Jan. ‘17

Total Expense Ratio



The scheme has maintained a provision against Sindh Worker's Welfare Fund's liability to the tune of Rs.332,890, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs.0.1900/0.3126% enhancing the YTD return to 5.64% p.a.



During the month under review, the fund generated a return of 2.02% against the bench mark return of 2.75,underperform-ing . The weighted average time to maturity of the portfolio stands at 47 days.

Name of Non-CompliantInvestment

PEL Sukuk Sukuk 27,323,622 27,323,622 15.00% 15.78% 15.44%-

Types ofInvestment

Value of InvestmentBefore Provisioning

Value of Investmentafter Provisioning

Limit% of

GrossAsset

% ofNet

Asset

Provisioning held (if any)

Performance

Benchmark

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

SWWF Disclosure



Fund Statistics

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

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

Performance Ranking

Benchmark

Inception Date

Dealing Days

Pricing Mechanism

Management Fee

Load

Listing

Trustee

Auditor

Legal Advisor

Fund Manager

Open End

Equity Scheme

3-Star by JCR-VIS(29 September 2016)

KSE 100 Index


13th March 2015


4.00 pm

Forward

2% p.a.


Moderate to High


Leverage Nil

Central Depository Companyof Pakistan Ltd.



Samir Malik

Fund Performance


Stocks / Equities 81.32%Cash at Bank 15.86%Others including recievables (NR) 2.81%

Dec. ‘16

90.26%5.74%4.00%

%00.001%00.001latoT

Oil & Gas Marketing 5.21%

%20.0AAA%55.21 evoba & AA

AA-A

0.42%

A-NR (includes equity investments)

2.83%

84.14%0.05%

Dec. ‘16

0.02%0.27%1.22%4.15%

94.26%0.07%

Total 100.00% 100.00%

PIML-VEF* Benchmark**FYTD 31.50% 29.04%CYTD 3.20% 1.99%12M Trailing 42.69% 25.56%Since Inception 50.63% 49.64%AAR-Since Inception 23.83% 22.83%

Jan 17 3.20% 1.99%Dec 16 10.92% 12.16%

Net Assets (PKR mn)NAV per Unit (PKR)Sharpe Ratio*Standard Deviation*Treynor RatioBetaR - Square**Value at Risk


Ahmed Ateeq

Hamza Saboor

M. Samir Malik, CFA

Samir MalikRida Jiwani

Asif Iqbal

Saeed Khalid



-2.52%0.23%

6.63%5.64%

Feb. ‘16 Mar. ‘16

2.08%4.77%

0.12%3.87%

2.14%4.78%

Apr. ‘16 May. ‘16 Period FY15

Performance 9.11%Benchmark 4.64%

FY16

4.99%9.84%



Kot Addu Power Co Ltd KAPCO 3.65%

Engro Corporation ENGRO 5.33%Pakistan State Oil PSO 5.21%

Jun. ‘16

4.86%4.62%

Jul. ‘16

2.35%0.71%

Aug. ‘16

1.13%1.84%

Sep. ‘16

10.92%12.16%

Oct. ‘16

8.21%6.84%

Nov. ‘16

10.92%12.16%

Dec. ‘16

3.20%1.99%

Jan. ‘17

3.43%Textile CompositeAutomobile Assemble

%03.6rotceS rehtO

Fertilizer

19.94%Cement

Pharmaceuticals 5.07%

Dec. ‘16

6.38%

10.77%9.10%Commercial Banks

3.24%3.25%2.82%

EngineeringCable & Electrical Goods

0.65%2.48%1.74%2.39%

%40.2suoecnallecsiM%20.2draoB & repaP

2.69%2.14%

11.86%

Insurance

11.25%8.48%9.57%7.36%

4.02%4.67%

Power Generation & Distribution

16.95%

5.76%

Fund Manager

Total Expense Ratio

315.97141.42

2.3111.91%

0.2920.94

80.22%1.24%

Fauji Cement Co. Ltd. FCCL 2.81%HUBC 2.82%Hub Power Company

2.89%Glaxosmithkline (Pak) Ltd. GLAXO

3.67%Lucky Cement LUCK

2.82%Cherat Cement Ltd. CHCC

Adamjee Insurance Co. Ltd. AICL 2.58%

D.G Khan Cement DGKC 5.02%






ly outperforming the benchmark by 121 bps. In the outgoing month, the fund’s total equity exposure was registered at 90.83% of the net assets as compared to 95.33% of the net assets in the previous month.


Weighted average of 6-month KIBOR and KSE-100 index as per amount invested in equities and

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

Pricing Mechanism

Management Fee

Load

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%, Back end 0%

Moderate to High


Leverage Nil




Samir Malik



Others including recievables (NR) 1.17%%16.8skukuS / sCFT

PIBs

Cash at BankPlacements with Banks 3.97%

%00.001latoT

Jan. ‘17

8.94%

11.29%

Equity Securities 66.02%

1.14%9.12%

4.20%

Dec. ‘16

9.31%

13.81%

62.41%

100.00%

AAA (Government Securities)AA & above AA- A+

A-

NR(includes euity investments)

Jan. ‘17

8.94%3.24%0.36%

67.19%

A8.61%

11.66%0.00%

Dec. ‘16

30.84%0.08%0.74%

9.92%

13.62%31.18%13.62%

%00.001latoT 100.00%

PIML-AAF* Benchmark**FYTD 7.21% 9.51%

1.45%

11.77%

CYTD 2.56%11.77%10.29%

10.29%0.00% 0.00%

12M TrailingSince InceptionAAR-Since Inception

2.56%Jan 17 1.45%4.82%Dec 16 6.45%


Ahmed Ateeq

Hamza Saboor

M. Samir Malik, CFA

Samir Malik

Rida Jiwani

Fund Manager

Asif Iqbal

Saeed Khalid



Fund Statistics

* Annualized

Net Assets (PKR mn) 1251.02

NAV per Unit (PKR) 108.070.90Sharpe Ratio*^

4.47%

Information Ratio -0.01

Standard Deviation*^

Fund Objective

^The lookback period is 197 days (Since inception)



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

Hub Power Co. Ltd. HUBC 7.15%Kot Addu Power Co. Ltd. KAPCO 7.59%Pak Elektron Ltd. PAEL Sukuk+Equity 9.51%

Cherat Cement Ltd. CHCC 2.66%

D.G. Khan Cement Co. Ltd DGKC 3.40%

Nishat Mills Ltd. NML 3.30%Adamjee Insurance Co. Ltd. AICL 3.28%

Lucky Cement Ltd. LUCK 2.69%

Pakistan State Oil Co. Ltd. PSO 3.57%

Fauji Cement Co. Ltd. FCCL 2.63%

Sector Allocation (as % of T.A.) Jan. ‘17Power Generation & Distribution 14.92%

14.17%Cement

Dec. ‘1616.32%

3.42%Other Sectors 3.05%

13.47%

Textile Composite 4.60% 3.85%

Oil & Gas Exploration Companies 2.51% 3.81%

Commercial Banks 6.44% 6.51%

Total Expense Ratio

Insurance 4.25% 3.58%

Oil & Gas Marketing Companies 3.57% 2.96%

3.33%Engineering 2.38%Automobile Assembler 3.16% 2.91%Fertilizer 2.84% 1.73%

1.81%2.82%Pharmaceuticals



Performance

Benchmark

Fund Performance

0.98%0.50%

Jun. ‘16

0.46%0.68%

Jul. ‘16

0.23%0.51%

Aug. ‘16

-0.15%0.62%

Sep. ‘16

2.56%1.45%

Oct. ‘16

0.13%1.51%

Nov. ‘16

4.82%6.45%

Dec. ‘16

2.56%1.45%

Jan. ‘16

-0.51%0.43%

Apr. ‘16

2.40%0.49%

May. ‘16

SWWF Disclosure

The scheme has maintained a provision against Sindh Worker's Welfare Fund's liability to the tune of Rs.2,662,531, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs0.2300/0.3613% enhancing the YTD return to 7.57% p.a.

*The reported returns includes provisioning of Sindh Workers’ Welfare Fund


During the month under review, the fund generated a return of 2.56% as compared to the benchmark return of 1.45%, denoting an outperformance of 112 bps. In the outgoing month, the exposure in equities was increased to 66.40% of the net assets as compared to 62.96% of the net assets in the previous month. The fund’s exposure in Govt. Securities was reduced to 8.99% of the net assets as compared to 9.39% of the net assets in the previous month. The funds total exposure in Debt securities including Govt. Securities stood at 17.65% of the net assets as compared to 18.58% of the net assets in the previous month.


Tel : (+92-21) 37130165, 35307465Fax: (+92-21) 35290004

A Wholly Owned Subsidiary of Pak Brunei Investment Company Limited

3rd Floor, Horizon Vista Plot No. Commercial 10 Block No.4 Scheme No.5 Clifton Karachi, Pakistan.

Tel : (+92-51) 2800397-8

Ground Floor Saudi Park Tower, Jinnah Avenue, Islamabad.

Tel : (+92-42) 35221632-4

First Floor Commercial Plaza, 852-DFaisal Town Akbar Chowk, Lahore.

www.primusinvestments.com

Documents

FUND MANAGER REPORT - AWT InvestmentsCIO Comment 2 of 12 MUFAP’s recommended format Fund Manager Report - January 2017 “This publication is for informational purposes only and