Mutual funds performance report September 2020

SHARIAH COMPLIANT MUTUAL FUND REPORT
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––
SHARIAH COMPLIANT MUTUAL FUNDS
PERFORMANCE REPORT
SEPTEMBER 2020

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B
Contents
KEY HIGHLIGHTS ...........................................................................................................................................................3
FUNDS IN SPOTLIGHT ...................................................................................................................................................6
AUM’S OF SHARIAH COMPLIANT FUNDS ....................................................................................................................8
TOP EQUITY HOLDINGS OF INDUSTRY.........................................................................................................................9
OPEN END MUTUAL FUND RETURNS.........................................................................................................................11
VOLUNTARY PENSION FUNDS....................................................................................................................................13

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SUMMARY:
As per the data obtained from Fund Manager Reports and MUFAP, for the month of September 2020, the Shariah Compliant
Mutual Funds Industry grew by 6.09 billion (1.61%) to a total of PKR 377.618 billion from PKR 371.528 billion.
MARKET OVERVIEW:
Equities remained under pressure as KSE-100 and KMI-30 fell by (1.3%) and (1.4%) respectively on month on month basis.
Market remained positive during the fist-half of the month however rising food inflation in the SPI data and political noise
due to arrest of opposition leader and formation of opposition alliance dragged the market down.
Inflation, for the month of September 2020 increased to 9.0% YoY and 1.5% MoM. The upward pressure on food basket kept
the inflation on the higher side. Main driver of inflation were tomatoes (44.07%), vegetables (30.33%), chicken (18.31%),
onions (14.51%), potatoes (6.18%) and eggs (5.2%) in the urban region and vegetables (45.18%), tomatoes (30.33%), onions
(15.17%), chicken (9.47%), pulse Moong (7.79%), spices (5.63%) and wheat (5.03%) in the rural region.
KEY HIGHLIGHTS SEPTEMBER 2020

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FUTURE OUTLOOK:
Pakistan’s economy is moving towards stabilization on the back of improved economic activity and positive macro outlook
and the COVID-19 cases have been in control with only 2.8% of the total cases still active. The core inflation is also stabilizing,
we believe that inflation will decline going forward due to downward pressure on food prices as the government is planning
to import various food items to dampen the inflated prices. The market is still trading at an attractive forward PE of 7.6x
against historical PE of 9x-10x and historical analysis have shown that market outperforms during periods of low interest rates
and manageable current account. Although the aftershocks of Covid-19 may keep the growth rate on the lower side in short
term, we believe once the pandemic is successfully contained that the economy can go back to its historical growth rate
trajectory.
AVERAGE RETURNS:
For the month of September 2020, in the open-end scheme category, Shariah Compliant Aggressive Fixed Income recorded
the highest absolute return of 7.26%, followed by Shariah Compliant Money Market Funds with an average annualized return
of 6.21% on MTD basis. In the voluntary pension scheme category, VPS-Debt Fund had the highest absolute return of 4.6%
followed by VPS-Money Market Funds with an annualized average return of 4.4% on MTD basis.
AVERAGE RETURN – OPEN END FUNDS:
CATEGORY - OPEN END SCHEME
Fund Name YTD MTD 90 DAY 180 DAY 365 DAY
Shariah Compliant Money Market 6.23 6.21 6.26 7.27 9.89
Shariah Compliant Capital Protected Fund 6.93 (0.12) 6.04 11.51 17.81
Shariah Compliant Capital Protected - Income 1.21 0.37 0.85 0.30 N/A
Shariah Compliant Fund of Funds - CPPI 3.20 0.26 3.08 5.61 4.05
Shariah Compliant Income 6.52 5.58 6.31 6.41 9.43
Shariah Compliant Aggressive Fixed Income 7.40 7.26 6.27 3.30 8.27
Shariah Compliant Balanced Fund 8.84 (0.35) 7.50 15.31 20.11
Shariah Compliant Asset Allocation 6.73 (0.34) 6.14 13.75 15.66
Shariah Compliant Fund of Funds 10.94 0.03 9.73 17.35 15.16
Shariah Compliant Fund of Funds - Income 1.29 0.00 1.29 2.83 N/A
Shariah Compliant Index Tracker 17.24 (1.41) 11.43 29.17 24.48
Shariah Compliant Commodities 5.88 (2.90) 5.19 13.42 24.28
Shariah Compliant Equity 15.66 (2.05) 14.15 27.85 24.15

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AVERAGE RETURN – VOLUNTARY PENSION PLAN:
CATEGORY - VOLUNTARY FUND SCHEMES
Shariah Compliant Money Market 4.4 4.4 4.4 4.4 7.5
Shariah Compliant Debt Fund 5.9 4.6 5.9 4.4 7.8
Shariah Compliant Commodities 6.3 0.0 6.3 12.8 22.0
Shariah Compliant Equity 17.96 (1.23) 17.96 35.32 32.14

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AL MEEZAN ISLAMIC FUND:
For the month of August KSE-100 decreased by -1.31%
whereas KMI-30 Index decreased by -1.39%. Amongst
all Shariah Compliant Equity Funds, Meezan Islamic
Fund (MIF) out-performed its peers, posting a return
of -0.86% on MTD basis. MIF was 91.81% invested in
the equity market in September 2020, a slight
decrease from 92.39% in August 2020.
MIF has focused more on Oil & Gas Exploration
Companies with 23% of its AUM’s invested, 15% in
Cement, 11% in Fertilizer, 7% of its AUMs in Oil and
Gas Marketing Companies, and 44% in other sector.
Source: FMR of Al-Meezan Investment Limited.
Disclaimer: Funds with AUMs greater than 1 billion are considered for analysis.
FUNDS IN SPOTLIGHT SEPTEMBER 2020
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
MTD
FYTD
3M
6M
1Y
MEEZAN ISLAMIC FUND
Return Benchmark
0%
10%
20%
30%
40%
50%
Oil & Gas
Exploration
Fertilizer Cement Oil & Gas
Marketing
Others
MEEZAN ISLAMIC FUND
Sep'20 Aug'20

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AL-HAMRA ISLAMIC INCOME FUND:
Amongst all the Shariah Compliant Income and
Money Market funds, AlHamra Islamic Income
Fund (ALHIIF) outperformed its competitors; as
per the FMR of ALHIIF, the fund posted a return
of 6.80% on MTD basis, as compared to
benchmark annualized return of 3.86% on MTD
basis. ALHIIF comprises of 51.8% bank deposits,
13.7% Government Guaranteed, 31.7% Sukuks
and 4% of Other Receivables.
ALHIIF has invested 24.2% of AUMs in AAA Credit
rating avenues 23.7% in AA Credit rating and
15.1% of its AUMs in A+ credit rating. The
remaining AUMs comprises of AA+, AA-,
Government securities and unrated securities.
Source: FMR of MCB Arif Habib Saving and Investment Limited.
Disclaimer: Funds with AUMs greater than 1 billion are considered for analysis.
FUNDS IN SPOTLIGHT SEPTEMBER 2020
0.00%
20.00%
40.00%
60.00%
Cash Government
Guaranteed
Sukuk and Islamic
Commercial Paper
Other Including
Recivables
ALHAMRA ISLAMIC INCOME FUND
Sep-20 Aug-20
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
MTD YTD 3 Month 6 Month 1 Year
ALHAMRA ISLAMIC INCOME FUND
Benchmark Return

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Source: FMRs
AUM Septemeber 20 AUM August 20 INDUSTRY SHARE
(AUMs in million) (AUMs in million) %
Al-Meezan Investment Management Ltd 17 156,926.00 156,773.00 41.56%
NBP Fullerton Asset Management Ltd 17 64,942.00 61,346.00 17.20%
UBL Al-Ameen Funds Manager Ltd 14 34,472.00 36,146.89 9.13%
Faysal Asset Management Ltd 10 22,615.73 21,180.88 5.99%
MCB-Arif Habib Savings and Investments Ltd 8 18,186.07 17,903.61 4.82%
ABL Asset Management Company Ltd 7 15,634.76 17,318.79 4.14%
Alfalah GHP Investment Management Ltd 7 16,762.27 15,281.62 4.44%
HBL Asset Management Ltd 9 12,859.00 12,549.00 3.41%
Habib Asset Management Ltd 2 12,441.06 11,468.35 3.29%
JS Investments Ltd 15 8,969.53 7,620.55 2.38%
Atlas Asset Management Ltd 5 6,213.64 6,329.90 1.65%
National Investment Trust Ltd 3 4,570.36 4,786.51 1.21%
Pak Oman Asset Management Company Ltd 2 1,276.30 1,292.85 0.34%
786 Investments Ltd 1 603.36 602.35 0.16%
AKD Investment Management Ltd 2 514.54 402.57 0.14%
AWT Investment Management Ltd 2 396.43 356.11 0.10%
Lakson Investments Ltd 1 234.72 168.60 0.06%
TOTAL 122 377,618 371,528 100.00%
ASSET MANAGEMENT COMPANIES NO. OF FUNDS
SHARIAH COMPLIANT MUTUAL FUND’S ASSET UNDER
MANAGEMENT
AUM’S OF SHARIAH COMPLIANT FUNDS SEPTEMBER 2020

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Source: FMRs
TOP EQUITY HOLDINGS OF INDUSTRY SEPTEMBER 2020

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Source: FMRs
TOP EQUITY HOLDINGS OF INDUSTRY SEPTEMBER 2020

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SHARIAH COMPLIANT MONEY MARKET
Faysal Islamic Cash Fund 6.82 8.07 N/A N/A N/A
NBP Islamic Daily Dividend Fund 6.50 6.30 6.50 7.35 N/A
ABL Islamic Cash Fund 6.42 6.23 6.42 7.59 N/A
Faysal Halal Amdani Fund 6.57 6.16 6.57 7.88 N/A
Al Ameen Islamic Cash Fund 6.17 6.11 6.17 7.10 9.76
Meezan Rozana Amdani Fund 6.38 6.11 6.38 7.38 10.24
Al Ameen Islamic Cash Plan I 6.31 6.07 6.31 N/A N/A
Alhamra Islamic Money Market Fund 6.07 6.03 N/A N/A N/A
HBL Islamic Money Market Fund 6.16 5.98 6.16 7.00 9.87
JS Islamic Daily Dividend Fund 5.91 5.91 N/A N/A N/A
NBP Islamic Money Market Fund 6.10 5.80 6.10 7.34 10.20
Alfalah Islamic Rozana Amdani Fund 5.79 5.79 N/A N/A N/A
Meezan Cash Fund 5.93 5.49 5.93 6.99 9.56
SHARIAH COMPLIANT EQUITY
AKD Islamic Stock Fund 31.60 (0.01) 31.60 35.61 28.71
Meezan Islamic Fund 17.37 (0.86) 17.37 43.97 28.89
Al Meezan Mutual Fund 16.16 (1.23) 13.45 27.58 26.63
Alfalah GHP Islamic Stock Fund 18.03 (1.24) 18.03 29.82 22.10
Al Ameen Shariah Stock Fund 16.74 (1.41) 16.74 46.09 38.14
Alhamra Islamic Stock Fund 15.65 (1.47) 15.65 28.44 23.76
NBP Islamic Stock Fund 18.00 (1.53) 18.00 29.56 30.20
Atlas Islamic Stock Fund 17.43 (1.63) 17.43 31.07 32.74
HBL Islamic Equity Fund 15.24 (1.79) 15.24 37.70 23.34
HBL Islamic Stock Fund 14.98 (1.81) 14.98 37.67 25.90
NIT Islamic Equity Fund 17.36 (2.18) 17.36 31.98 28.85
Faysal Islamic Stock Fund 3.29 (2.26) N/A N/A N/A
First Habib Islamic Stock Fund 13.81 (2.28) 13.81 25.12 20.62
ABL Islamic Stock Fund 16.93 (2.37) 16.93 43.65 23.78
JS Islamic Fund 17.97 (2.79) 17.97 34.25 18.35
AWT Islamic Stock Fund 13.38 (3.82) 13.38 23.67 15.37
NBP Islamic Energy Fund 10.50 (4.50) 8.57 20.85 11.30
Meezan Energy Fund 9.96 (4.64) 9.96 35.16 13.33
Al Ameen Islamic Energy Fund 9.37 (5.81) 9.37 35.49 N/A
OPEN END MUTUAL FUND RETURNS SEPTEMBER 2020

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Source: MUFAP and FMRs
SHARIAH COMPLIANT INCOME
Pak Oman Advantage Islamic Income Fund 6.84 8.47 6.84 5.42 8.17
Alhamra Islamic Income Fund 6.81 6.80 6.81 7.92 10.37
Faysal Islamic Savings Growth Fund 6.61 6.53 6.61 6.92 9.51
NBP Islamic Mahana Amdani Fund 6.81 6.40 6.81 6.71 9.90
Meezan Islamic Income Fund 7.58 6.24 7.58 8.17 10.45
Alfalah GHP Islamic Income Fund 6.53 5.92 6.53 7.18 10.17
First Habib Islamic Income Fund 6.33 5.91 6.33 6.86 10.40
JS Islamic Income Fund 5.85 5.84 5.85 3.97 8.96
NBP Islamic Income Fund 7.36 5.82 7.36 N/A N/A
Atlas Islamic Income Fund 5.66 5.64 5.66 6.37 9.81
NBP Islamic Savings Fund 5.80 5.60 5.80 6.53 9.40
ABL Islamic Income Fund 6.39 5.58 6.39 6.38 9.68
Alhamra Daily Dividend Fund 6.07 5.58 6.07 7.19 10.19
AKD Islamic Income Fund 8.04 5.49 8.04 8.12 10.54
NBP Riba Free Savings Fund 7.50 5.20 7.50 7.26 9.80
Meezan Sovereign Fund 11.11 5.16 11.11 9.47 11.08
NBP Active Allocation Riba Free Savings Fund 4.80 4.91 4.79 5.85 8.80
Al Ameen Islamic Sovereign Fund 5.57 4.89 5.57 5.72 8.49
NIT Islamic Income Fund 5.69 4.77 5.69 5.74 8.82
HBL Islamic Income Fund 4.85 4.24 4.85 5.50 8.34
786 Smart Fund 4.46 4.08 4.45 5.06 8.45
AWT Islamic Income Fund 6.79 3.83 6.79 2.59 6.69
OPEN END MUTUAL FUND RETURNS SEPTEMBER 2020

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VPS SHARIAH COMPLAINT MONEY MARKET
ABL Islamic Pension Fund 3.89 5.29 3.89 2.36 6
Al Ameen Islamic Retirement Savings Fund 4.11 4.71 4.11 4.49 7.63
Alfalah GHP Islamic Pension Fund 5.07 4.63 5.08 5.07 6.89
Alhamra Islamic Pension Fund 4.46 3.88 4.46 4.24 7.29
Atlas Pension Islamic Fund 4.69 4.79 4.21 4.44 8.04
HBL Islamic Pension Fund 3.9 3.32 3.9 4.91 6.75
JS Islamic Pension Savings Fund 4.4 3.92 4.4 4.57 8.31
Meezan Tahaffuz Pension Fund 4.95 4.68 4.95 5.30 8.33
NAFA Islamic Pension Fund 4.28 4.33 4.28 4.86 8.06
NIT Islamic Pension Fund 4.54 4.56 4.54 4.03 7.76
VPS SHARIAH COMPLIANT DEBT FUND
ABL Islamic Pension Fund 4.08 4.93 4.08 3.11 6.76
Al Ameen Islamic Retirement Savings Fund 4.96 5.12 4.96 4.01 7.51
Alfalah GHP Islamic Pension Fund 5.44 5.65 5.13 5.37 7.56
Atlas Pension Islamic Fund 4.88 4.71 4.88 4.46 8.31
HBL Islamic Pension Fund 5.22 3.88 5.22 2.96 6.14
JS Islamic Pension Savings Fund 4.11 2.74 4.11 2.26 7.33
NAFA Islamic Pension Fund 4.95 4.81 4.95 4.35 7.91
NIT Islamic Pension Fund 4.83 4.38 4.83 1.72 6.47
VOLUNTARY PENSION FUNDS SEPTEMBER 2020

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VPS SHARIAH COMPLIANT COMMODITIES/GOLD
VPS SHARIAH COMPLAINT EQUITY
ABL Islamic Pension Fund 18.71 (1.82) 18.71 44.39 26.07
Al Ameen Islamic Retirement Savings Fund 17.48 (0.75) 17.48 47.05 40.70
Alfalah GHP Islamic Pension Fund 16.64 (1.27) 13.64 28.74 25.18
Atlas Pension Islamic Fund 18.39 (1.20) 15.67 30.65 34.73
HBL Islamic Pension Fund 15.59 (2.48) 15.59 38.64 29.30
JS Islamic Pension Savings Fund 21.62 (0.77) 21.62 38.84 31.29
Meezan Tahaffuz Pension Fund 17.76 (0.80) 17.76 31.40 31.62
NAFA Islamic Pension Fund 18.90 (1.19) 18.90 31.33 35.45
NIT Islamic Pension Fund 16.24 (2.03) 16.24 29.14 29.05
VOLUNTARY PENSION FUNDS SEPTEMBER 2020

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AL-HILAL SECURITIES ADVISORS (Pvt.) LIMITED
FARAZ YOUNUS BANDUKDA, CFA CHIEF EXECUTIVE faraz.bandukda@alhilalsa.com 021-35305931
MUHAMMAD ISHAQ KHAN HEAD OF INVESTMENTS ishaq.khan@alhilalsa.com 021-35305933
SYED SHAHARYAR AKHTER RESEARCH ANALYST shaharyar.akhter@alhilalsa.com 021-35305937
ABDUL BASIT BANDUKDA RESEARCH ANALYST abdul.basit@alhilalsa.com 021-35305937
ABDUL RAHIM MOTEN RESEARCH ANALYST abdul.rahim@alhilalsa.com 021-35305937
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no representation as to its accuracy or completeness. From time to time, Al-Hilal and/or any of its officers or directors may, as permitted by applicable laws, have a position, or otherwise be interested
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