FUND MANAGERS

REPORT
JUL-2022

Managed By:

Today, For a better Tomorrow

 Market Summary Month of July 2022 witnessed significant PKR devaluation, political turmoil, Current
29-Jul-22 7day 30day 90day FYTD CYTD Account Deficit (CAD), soaring inflation and ever-present uncertainty around IMF
package. PKR depreciated by 17% during the month indicating significant short term
KSE100 40,150 0.2% -2.8% -11.3% -3.3% -10.0%
liquidity pressure on PKR:USD as Pakistani international bond yields also stretched. IMF
KMI30 65,446 -0.6% -4.0% -11.6% -4.8% -8.7% tranche delays and Current Account Deficit also played a key role in pushing PKR:USD
KMIAll 20,294 -0.2% -2.3% -9.1% -2.9% -7.9% parity.

Pakistan continued to face tough situation as Current Account Deficit (CAD) for the
month of Jun’22 stuck at USD 2.25 billion taking FY22 CAD to USD 17.41 Billion with a
Global Markets foreign exchange reserve of ~USD15 billion by July end. Pakistani failed to fetch an
29-Jul-22 7day 30day 90day FYTD CYTD equilibrium exports figure against the imports. Exports figure clocked at USD 2.2 Billion
UK 7,423 -2.0% -1.5% 1.6% -3.4% -0.5% with textile sector remained the main contributor. This sector also faced the brunt of
increased power tariffs with gas tariff being jacked up as agreed under IMF program.
USA 12,378 -4.4% -9.7% -0.4% -10.9% 26.4%
Local consumers also faced the brunt of inflationary figures as calculated using
China 3,253 0.5% 3.3% -6.3% 4.5% 4.5%
Consumer Price Index (CPI) for Jul-22 clocked at 24.93% YoY. On MoM basis, CPI
Japan 27,802 0.4% -3.6% -3.4% -5.1% 3.6% Increased by 4.35%, largely driver by POL products prices and sharp rise in staple food
India 57,570 -2.6% -7.9% -0.9% -7.9% 1.2% bill. For FY23, inflation is expected to remain in vicinity of ~20% due to PKR devaluation
& higher international commodity prices.
Combined with the economy, political uncertainty along with geopolitical situation
tensions along with US FED continued policy spike would play a key role in central
Portfolio Investments (USD mn) banks’ monetary decisions.

29-Jul-22 30day 90day 365days FYTD CYTD Stock Market Review

KSE-100 index fell by 1,390 points (-3.35%) on MoM basis. During the month,
FIPI (net) 2 8 (14) (262) 7 (40)
Commercial Banks, Food & Personal Care, Glass & Ceramics, Oil & Gas exploration and
LIPI (net) (2) (8) 14 262 (7) 40 technology outperformed the market. On the contrary, auto assemblers, cable & electric
Ind. (1) 7 35 161 9 94 goods, cements, fertilizers lagged behind. Foreign investors, banks and companies were
Banks/DFIs 1 7 42 111 1 88 net buyers whereas Individuals, Brokers diluted their holdings during the week.
Companies 0 4 27 105 4 55 From fundamental perspective, market is trading at an attractive Price-to-Earnings (P/E)
M.Funds (0) (13) (44) (143) (12) (130) multiple of 4.2x. The market also offers healthy dividend yield of around 7-8%. We
Brokers (1) (4) (2) (18) (3) (11) advise investors to take exposure in our Equity Funds to gain benefit of the current
discount available in the market.
Others 0 3 9 60 2 20
Ins. (1) (11) (51) (17) (8) (75) Money Market Review
NBFC 0 0 (2) 3 0 (1) During the month, SBP raised monetary policy rates by 125 basis points to 15 percent.
Due to hike in policy rates, returns offered by fixed income avenues have become more
attractive. With money market/ fixed income funds offering returns around 14%,
PKRV Rates (change in bps) investors with low risk profile will surely enjoy hike in policy rates.
Rate % 7day ∆ 1m ∆ 3m ∆ 6m ∆ 12m ∆
SBP held two T-bills auction during the month with target of Rs. 1,150 Billion against
PKRV 1Y 15.82 12 45 124 337 812 maturity of Rs. 985 billion. In the second T-Bill auction, cut off yields settled at 15.75%,
PKRV 3Y 13.36 18 -10 9 264 451 15.80% & 15.94% for 3M, 6M & 12M T-Bills respectively.
PKRV 5Y 13.39 16 44 72 257 399
PKRV 10Y 12.98 2 3 3 110 303
PKRV 20Y 13.49 3 -1 21 119 304
13-Jul-22 27-Jul-22
Key Economic Figures
FY19 FY20 FY21 FY22 Jul'22
Policy Rate July end 10.8% 7.0% 7.0% 13.8% 15.0%
1yr KIBOR July end 13.6% 7.4% 8.1% 15.7% 16.2%
Inflation July end 8.8% 7.8% 9.8% 21.3% 24.9%
PKR USD July end 163.1 168.2 157.3 204.8 240.0
Imports USD'mn 51,869 46,417 56,380 72,048 4,861
Exports USD'mn 24,257 23,462 25,304 32,450 2,219
Trade DeficitUSD'mn (27,612) (22,955) (31,076) (39,598) (2,642)
Remittances USD'mn 21,740 23,131 29,370 31,238 -
FX Reserves USD'mn 14,482 18,886 24,398 15,742 14,209
 Investment Objective
The objective of investments is to enhance returns through a well-diversified, prudently invested portfolio while considering Customer needs, regulatory restrictions and overall
corporate strategy of PQFTL. The Fund intends to achieve capital appreciation with medium to long term investment horizon by taking enhanced exposure to equities and fixed
income investments.

Managers' Comment
During the month of Jul'22, the NAV per unit has decreased by PKR 12.0171 (-1.60%) from the month of June'22.

Fund Information Graphical Performance of Banca Conservative

Fund Name BT Growth 1,100

Fund Size (PKR) 4,896,133,846.00
Unit Price (PKR) 740.9210
Category Equity Fund 1,000
Risk Profile High
Pricing Mechanism Forward
Pricing Days Business Days Unit Price
Composite of (Average of (KMIAll & 900
KMI-30 ) & Average Return on
Benchmark
Islamic Bank) based on actual
allocation 800
Management Fee 1.50%
Subscription/ Redemption Days Business Days
Pak Qatar Asset Management Company Ltd
700
Fund Manager through a discretionary portfolio management
agreement
Auditors Yousuf Adil, Chartered Accountants
Appointed Actuary Abdul Wahab 600
Zahid Hussain Awan
Said Gul
Muhammad Kamran Saleem 500
Investment Committe
Muhammad Ahsan Qureshi
Sep-11

Jun-12

Jun-13

Sep-14

Jun-15

Sep-16

Jun-17

Jun-18

Sep-19

Jun-20

Sep-21

Jun-22
Dec-11

Sep-12
Dec-12
Mar-13
Sep-13
Dec-13
Jun-14

Sep-15
Dec-15
Mar-16
Jun-16

Sep-17
Dec-17
Mar-18
Sep-18
Dec-18
Jun-19

Mar-20
Sep-20
Dec-20
Mar-21
Jun-21
Mar-12

Mar-14

Dec-14
Mar-15

Dec-16
Mar-17

Mar-19

Dec-19

Dec-21
Mar-22
Azeem Iqbal Pirani
Abdul Rahim Abdul Wahab

Asset Allocation Asset Allocation

Jul'22 Jun'22
Equities 73% 74%
3%
Mutual Funds/Sukuks 20% 20%
4%
Bank Placement 3% 3%
Real Estate 0% 0% Equities
20%
Miscellaneous 4% 3% Mutual Funds/Sukuks
Bank Placement
Key Ratios Real Estate
Jul'22 Jun'22 73%
Miscellaneous
Fund Return (Monthly) -1.60% -1.92%
Benchmark Return (Monthly) -1.89% -0.89%
Standard Deviation (Annualized) 15.63% 15.55%
Sharpe Ratio (0.58)

Returns (Absolute Return)

1M 3M 6M CYTD CY21 CY20 CY19 CY18 CY17
BT Growth -1.60% -8.05% -13.39% -13.24% -11.30% 14.54% 10.18% -3.34% -6.40%
 Investment Objective
The objective of investments is to enhance returns through a well-diversified, prudently invested portfolio while considering Customer needs, regulatory restrictions and overall
corporate strategy of PQFTL. The Fund aims to provide stable return exhibiting low volatility with capital preservation by constructing a portfolio composed of fixed income and
mutual funds investments.

Managers' Comment
During the month of Jul'22, the NAV per unit has increased by PKR 9.9633 (0.0112%) from the month of Jun'22.

Fund Information Graphical Performance of Banca Conservative

Fund Name BT Conservative

Fund Size (PKR) 6,279,301,042.00 1,200
Unit Price (PKR) 1,089.2447 Unit Price
Category Fixed Income
Risk Profile Medium 1,100
Pricing Mechanism Forward
Pricing Days Business Days
1,000
Average deposit rate of three (3) A rated
Benchmark Islamic Banks or Islamic Windows of
Conventional 900
Management Fee Banks as selected by MUFAP
1.50%
Subscription/ Redemption Days Business Days
800
Pak Qatar Asset Management Company Ltd
Fund Manager through a discretionary portfolio management
agreement 700
Auditors Yousuf Adil, Chartered Accountants
Appointed Actuary Abdul Wahab
Zahid Hussain Awan 600
Said Gul
Muhammad Kamran Saleem 500
Investment Committe
May…

May…
Muhammad Ahsan Qureshi
Oct-13

Nov-15
Apr-16

Oct-18

Aug-19

Apr-21
Dec-12

Aug-14

Dec-17

Nov-20
Jul-12
Feb-12

Mar-14

Jan-15

Feb-17
Jul-17

Mar-19

Jan-20

Feb-22
Jul-22
Sep-11

Jun-15

Sep-16

Jun-20

Sep-21
Azeem Iqbal Pirani
Abdul Rahim Abdul Wahab

Asset Allocation Asset Allocation

Jul'22 Jun'22 2% 1%
Bank Placement 1% 1%
Bank Placement
Mutual Funds/Sukuks 97% 97%
Gov. Ijara Sukuk 0% 0%
Real Estate 0% 0%
Miscellaneous 2% 2%
Mutual Funds/Sukuks
Key Ratios
97%
Jul'22 Jun'22
Fund Return (Monthly) 11.62% 13.70% Miscellaneous
Benchmark Retrun (Monthly) 4.24% 4.00%
Standard Deviation (Annualized) 2.82% 2.83%

Returns (Annualized)
1M 3M 6M CYTD CY21 CY20 CY19 CY18 CY17
BT Conservative 11.62% 12.14% 10.02% 9.77% 5.99% 8.85% 11.19% 5.77% 4.42%