September 2013

The KSE 100 witnessed heightened volatility last month, first appreciating by 4.9% to 23,242 points by mid-September, and then taking a sharp 1,400 point dive to close at 21,832 points, down 6.1% from the mid-month high. On a m-o-m basis the KSE 100 was down 328 points (1.5%), with slightly higher volumes of 214.74 million shares average daily turnover (up 6.7%). Aggressive US stance against the Syrian government with increasing chances of a military strike caused jitters in international markets. Additionally, the KSE was also impacted by the recent weakness of the PKR versus the USD, the unexpected 50 bps increase in the policy discount rate, and the SBP move to peg minimum deposit rates to the policy discount rate, which saw the share prices of banks being particularly hard hit. In the T-Bill auction held on September 18, against a pre auction target of PKR 250.00 billion bids worth PKR 648.51 billion were received, with no participation in the 12 months tenor. The government raised PKR 506.16 billion through this auction. Cut off yields on 3 and 6 months T-Bills increased from the previous auction in the aftermath of 50 bps hike in discount rate. Yield on 3 months T -Bill settled at 9.4114% while 6 months at 9.4500%. Through the PIBs auction held on September 25, the government raised PKR 16.09 billion against a pre auction target of PKR 50 billion. The cut off yield on benchmark 10 years PIB settled at 12.5995%. 6 month KIBOR during the month moved in the range of 8.99% - 9.51%. Inflation for the month of Sep. 13 (YoY) showed an increase of 7.4% against 8.5% recorded in Aug. 13, m-o-m inflation was decreased by 0.3% against the increase of 1.2% last month. Core inflation has increased by 8.7% in Sep. 13 against 8.5% in Aug. 13. Overall, year to date FY14 (JulSep) CPI is 8.06% against 9.14% in the same period last year. Current Account Deficit for the 2MFY14 was USD 632 million against the surplus of USD 582 million during the same period last year. The trade deficit for the same period meanwhile, stood at USD 2.85 billion against USD 2.6 billion during the same period last year. The governments desire to bring the Tehreek -e-Taliban Pakistan (TTP) to the negotiating table have not borne fruit thus far as the TTP seems least interested in pursuing a reconciliatory path. Last month saw a further deterioration in the law in order situation with a massive bombing of a church in Peshawar, and multiple attacks on law enforcement agency personnel, one of which resulted in the deaths of a Major General and a Colonel. Even with the benefit of political stability, the government is struggling to deliver in the two areas where immediate results are crucial, i.e., the law and order situation, and the power crises. Despite a massive increase in borrowing from the central bank in order to clear the circular debt, the problem remains as a large gap between the cost of generating electricity and the amount recovered from customers means that circular debt builds up faster than the government can clear the accumulated debt.

For any information on any of the Alfalah GHP Funds, please contact 021-111-090-090.

Sept13 0.00 0.00 103.15 5.50 5,184.96

Aug13 0.00 0.00 71.65 4.95 5,514.21 201.27 8.73

Change NA NA 43.96% 11.28% -5.97% 6.69% -12.03%

Note: Provisioning Policy of Alfalah GHP Funds is

placed on the website of AGIML.

214.74 7.68

Sep 2013

Open Ended Asset Allocation Sep 30, 2013 PKR 502.49 mn PKR 53.92 CDC Trustee
E&Y Ford Rhodes

10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0%

01-Aug-13 11-Aug-13 31-Aug-13
21-Aug-13

Sep13
23.32%

Aug13
12.52%

2.00% 5.00% Oct 29, 2005

50%KSE100+50%6M K
Mon-Fri: 5 pm,

0.00%

0.00%

10-Sep-13

Forward Pricing AM3 N/A PACRA Moderate to High A. Aziz Anis, CFA Ather H. Medina Zeeshan Khalil AGVF

30-Sep-13

20-Sep-13

02-Jul-13

12-Jul-13

22-Jul-13

74.34%

85.00%

0.00%

1.7%

-0.94%

AGVF (FY'14 YTD)

3.12%

BM

Sep 13 -0.97%

Aug 13 -7.66%

YTD FY14 -0.94%

2.34%

0.78%

Sep13 Aug13

Oil & Gas Construction & Material Personal Goods Banks Non-life Insurance

D.G.Khan Cement Company Ltd Adamjee Insurance Co. Ltd.

7.7% 7.4% 7.4% 7.2% 6.9% 6.1% 5.6% 5.5% 4.4% 4.3%

19.7% 17.5% 8.4% 7.5% 7.4%

22.5% 20.4% 8.0% 4.7% 8.0%

Nishat Mills Limited Pakistan Petroleum Limited Pakistan State Oil Co. Ltd. Tariq Glass Limited

During Sep, the funds NAV decreased by 0.97% versus a decrease of 0.35% in its benchmark. During FY14, the funds NAV has decreased by 0.94% versus an increase of 3.12% in its benchmark during the same period. Your fund reduced its overall equity exposure from 85.0% to 74.34% by booking profits. The major exposure was reduced in Chemicals sector from 12.6% to 6.5%, in Fixed-Line Telecom sector from 4.6% to 0.9%, in Construction & Material sector from 20.4% to 17.5%, and in Oil & Gas sector from 22.5% to 19.7%.

Lucky Cement Limited Oil & Gas Development Co. Arif Habib Coporation Ltd. Maple Leaf Cement Co. Ltd.

Agritech Limited (0%) TFC- IV issue 5,705

5,705

The Scheme has maintained provisions against Workers Welfare Funds liability to the tune of Rs. 0.00 (FY 14). If the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 0.00 / 0.00% (FY 14). For details investors are advised to read the note Nine (9) of the latest Financial Statements of the Scheme.

September 2013

Open Ended Agg. Fixed Income Sep. 30, 2013 PKR 340.023 mln PKR 48.2353 CDC Trustee
E&Y Ford Rhodes

1.25% 3.00% June 15, 2007 12 Month KIBOR

Mon-Fri: 5 pm,

3.0% Annualised Returns (FY'14 YTD ) AGIML 7.47% 2.0% BM 9.55% 1.0% 0.0% -1.0% -2.0%
10-Sep-13
20-Sep-13 11-Aug-13 21-Aug-13 31-Aug-13 30-Sep-13 12-Jul-13 22-Jul-13 1-Aug-13 2-Jul-13

Sep 13
3.05%

Aug 13
1.72%

12.69%

14.18%

Forward Pricing AM3 BBB (f) PACRA High A. Aziz Anis, CFA Ather H. Medina Zeeshan Khalil

1.88%

AGIMF (FY'14 YTD)

2.41%

12M Kibor
78.29%

78.01%

MoM Simple Annualized FY14 Simple Annualized

21.81% 7.47%

9.72% 9.55% 5.97% 0.79 Yrs 6.09%

For the month of Sep. 2013, the funds NAV increased by 21.81% (annualized) against the benchmark return of 9.72% p.a., thus outperforming the benchmark by 12.09%. During the month the fund received principal outstanding and accrued mark up on the two securities previously recorded on the impaired values. Allocation of fund remained almost unchanged as compared to last month. Going forward, we intend to increase our exposure in quality corporate papers, while maintaining a significant exposure in government securities.

T The Scheme has maintained provisions against Workers Welfare Funds liability to the tune of Rs. 128,264.98 (FY 14). If the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 0.02 / 0.15% (FY 14). For details investors are advised to read the note Nine (9) of the latest Financial Statements of the Scheme.

Sep 2013

Open Ended
Islamic Asset Alloc.

10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0%

11-Aug-13 21-Aug-13 31-Aug-13 2-Jul-13 10-Sep-13 20-Sep-13 30-Sep-13 12-Jul-13 22-Jul-13
1-Aug-13

Sep13
28.00%

Aug13
21.80%

Sep 30, 2013

PKR 346.20mn PKR 58.24 CDC Trustee

E&Y Ford Rhodes

2.00% 5.00% Sep 04, 2007

50%KMI 30+50%6M DR
Mon-Fri: 5 pm,

0.00%

0.00%

70.27%

77.16%

Forward Pricing AM3 N/A PACRA Moderate to High A. Aziz Anis, CFA Ather H. Medina Zeeshan Khalil AGIF

-0.82%
AGIF (FY'14 YTD)

0.93%
BM

Sep 13 -1.70%

Aug 13 -6.38%

YTD FY14 -0.82%

1.74%

1.04%

Sep13

Aug13 29.6% 20.0% 7.3% 4.8% 6.5%

Oil & Gas Construction & Material

Chemicals Personal Goods Electricity

27.5% 17.9% 10.3% 7.4% 6.3%

Pakistan Petroleum Limited Pakistan State Oil Company Ltd. Fauji Fertilizer Company Limited D.G. Khan Cement Company Lucky Cement Limited Nishat Mills Limited

12.9% 10.5% 10.3% 9.2% 8.7% 7.4% 6.3% 4.1% 3.0%

During Sep, the funds NAV decreased by 1.70% versus a decrease of 1.22% in its benchmark. During FY14, the funds NAV has decreased by 0.82% versus an increase of 0.93% in its benchmark during the same period. Your fund reduced its overall equity exposure from 77.16% to 70.27% by booking profits. The major exposure was reduced in Fixed Line Telecom. sector from 8.4% to Nil, in Oil & Gas sector from 29.6% to 27.5% and in Construction & Material sector from 20.0% to 17.9%.

The Hub Power Company Ltd. Oil & Gas Development Co. Bankislami Pakistan Limited

The Scheme has maintained provisions against Workers Welfare Funds liability to the tune of Rs. 0.00- (FY 14). If the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 0.00 / 0.00% (FY 14). For details investors are advised to read the note Nine (9) of the latest Financial Statements of the Scheme.

Sep 2013

Open Ended Stock Fund Sep 30, 2013 PKR 110.71 mn PKR 57.90 CDC Trustee
E&Y Ford Rhodes

14.0% 12.0%
10.0%

Sep13
10.47%

Aug13
5.73%

8.0% 6.0%
4.0%

1.75% 5.00% Sep 09, 2008 KSE 100

Mon-Fri: 5 pm,

2.0% 0.0%
-2.0%
10-Sep-13 20-Sep-13 21-Aug-13 31-Aug-13
11-Aug-13

Forward Pricing AM3 N/A PACRA Moderate to High A. Aziz Anis, CFA Ather H. Medina Zeeshan Khalil AGAF

1.90%

AGAF (FY'14 YTD)

3.94%

KSE 100

Sep 13 -0.03%

Aug 13 -7.54%

YTD FY14 1.90%

30-Sep-13

12-Jul-13

22-Jul-13

1-Aug-13

85.16%

91.77%

2-Jul-13

4.37%

2.50%

Sep13

Aug13 26.4% 17.4% 12.7% 9.7% 10.0%

Banks Chemicals Oil & Gas Personal Goods Household Goods

24.8% 11.0% 10.2% 9.9% 9.8%

Tariq Glass Limited Arif Habib Coporation Ltd. D.G.Khan Cement Company Ltd. The Hub Power Company Ltd. Nishat Mills Limited The Bank of Punjab

9.8% 9.2% 8.6% 8.6% 8.4% 8.0% 6.9% 6.7% 6.7% 6.3%

During Sep, the funds NAV decreased by 0.03% versus a decrease of 1.48% in its benchmark. During FY14, the funds NAV has increased by 1.90% versus an increase of 3.94% in its benchmark during the same period. Your fund reduced its overall equity exposure from 91.77% to 85.16% by booking profit in those scrips which achieved their short term price targets. The major exposure was reduced in Fixed-Line Telecom sector from 8.4% to Nil, in Chemical sector from 17.4% to 11.0%, and in Oil & Gas sector from 12.7% to 10.2%, while exposure was increased in Electricity sector from Nil to 8.6%.

Askari Bank Limited Adamjee Insurance Co. Ltd. National Bank of Pakistan Pakistan State Oil Company Ltd.

The Scheme has maintained provisions against Workers Welfare Funds liability to the tune of Rs. 38,959.29 (FY 14). If the same were not made the NAV per unit/return of the Scheme would be higher by Re. 0.02 / 0.03% (FY 14). For details investors are advised to read the note Nine (9) of the latest Financial Statements of the Scheme.

September 2013

Open Ended Money Market Sep. 30, 2013 PKR 2,969.40 mln PKR 500.33 MCBFSL
KPMG Taseer Hadi

2.0% Simple Annualised Return (FY'14 YTD) 7.11% 1.5% AGCF BM 6.43% 1.0% 0.5% 0.0%
11-Aug-13 21-Aug-13 31-Aug-13 2-Jul-13

Sep 13
2.99% 16.73%

Aug 13
1.64%

1.00% N/A Mar 12, 2010

70% 3M PKRV + 30% 3M DR-Exp.
Mon-Fri: 11 am,

10-Sep-13

20-Sep-13

Forward Pricing AM3 AA (f) PACRA Low A. Aziz Anis, CFA Ather H. Medina Zeeshan Khalil

1.79%

AGCF (FY'14 YTD)

1.62% BM

30-Sep-13

12-Jul-13

22-Jul-13

1-Aug-13

80.10%

98.94%

MoM (Simp. Ann.)

FY 14Simp. Annualized

7.01% 7.11%

6.50% 6.43% 0.18% 42 Days -0.58%

The fund earned an annualized return of 7.01% p.a. during the month versus the benchmark return of 6.50% p.a., thus outperfor ming the benchmark by 0.51%. The exposure in T-Bills has reduced to 80.10% from 98.94% due to diversion of funds from t -bills to term deposits. Going forward, we will continue our cautious approach in allocation towards government securities and placements in terms of rates and duration.

The Scheme has maintained provisions against Workers Welfare Funds liability to the tune of Rs. 1,090,713.73/- (FY 14). If the same were not made the NAV per unit/ return of the Scheme would be higher by Rs. 0.18 / 0.15% (FY 14). For details investors are advised to read the note Ten (10) of the latest Financial Statements of the Scheme.