FUND MANAGER'S REPORT, October 2021

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FUND MANAGER'S REPORT, October 2021

This publication is for informational purposes only and nothing here in should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All Investments in mutual funds are subject to market risks. The NAV based prices of units and any dividends /returns there on are dependent on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results.

Please read the offering document to understand the investment policies and the risk involved including risk disclosures for special features (MUFAP’S RECOMMENDED FORMAT) FUND MANAGER'S

REPORT, October 2021

Please read the offering document to understand the investment policies and the risk involved including risk disclosures for special features (MUFAP’S RECOMMENDED FORMAT)

ECONOMY AND CAPITAL MARKETS UPDATE Economic Review

During the month of October, CPI inflation clocked in at 9.2%YoY as compared to 9.0% YoY in the same period last year (SPLY).On the monthly basis, headline inflation surged by 1.90%.This increase in inflation can be attributed on the basis of rise in food inflation and fuel prices as well as quarterly house rent index adjustment. Food inflation rose by 8.30% owing to increase in prices of chicken, cooking oil, ghee, onion, pluses, eggs, and wheat flour. In the Housing index, electricity charges rose substantially coupled with rising oil price continue to transmit the impact in fuel inflation. Going forward we anticipate prices will remain elevated due to PKR depreciation together with expected hike in power tariff. On balance of payment (BOP) front, Pakistan posted current account deficit (CAD) ~USD 1.1 billion during the said period compared to ~USD 1.5 billion in the previous month, taking cumulative current account position to deficit of ~USD 3.4 billion against surplus of ~USD 865 million during SPLY. The primary reason for decrease in CAD was due to reduction in trade deficit. Exports surged by 13% (MoM) to ~USD 2.6 billion while imports swelled by 1% (MoM) to ~USD 6.1 billion. On the flip side, worker’s remittance stood at ~USD 2.67 billion compared to ~USD 2.65 billion during SPLY. Finally, the foreign exchange reserves of SBP stood at ~USD 17.15 billion as of October 24th 2021, providing total import cover of 2.86 months. On the fiscal side, FBR managed to collect ~PK R 439 billion during the month compared to ~PKR 546 billion in the SPLY. In the first four months of FY 22, FBR has collected net revenue of ~PKR 1840 billion against the set target of ~PKR 1608 billion, exceeding by PKR 232 billion.

Money Market Review

During the month of Oct’21 T-bill auctions saw considerable participation in only the 3M tenor as the market anticipated a sequential increase in policy rate in the upcoming monetary policies. The 3M cutoff yield significantly increased from 7.64% to 8.25% whereas the 6M cutoff yield increased from 7.98% to 8.19% however the ministry out rightly rejected bids placed in the 6M tenor in the second auction held during the month. The ministry also ended up rejecting bids in 12M T-bill as market participated at exorbitant levels. During Oct’21 government ended up borrowing a total of PKR 718.85bn across 3M and 6M tenors. PIB yields in the secondary market rose significantly, 3Y PIB traded at a high of 10.35% and 5Y PIB traded at a high of 10.45%. Yields however adjusted downwards soon after the PIB auction got rejected and positive news flows regarding negotiations with IMF and revival of support from Saudi Arabia in terms of revolving oil facility and FX reserve support led to a drop in the exchange rate. At the end of the month 3Y PIB traded at a yield of 9.75% and 5Y PIB traded at a yield of 9.85%. During the month of Oct’21 SBP conducted 6 OMO (Injections) and remained a net lender of PKR 1,984.7bn at a weighted average yield of 7.33%.

Stock Market Review

During the month, the KSE-100 took a breath by recovering 1,285 points (~2.9% MOM) and closed the period at 46,185 points. Average traded volume and value decreased by 20.2%MOM to 119mn and 9.9%

MOM to USD 42mn respectively. Investors remained on the safe side and mixed behavior was observed amid i) higher inflation ii) pressure on the external front iii) undecided IMF review, iv) lower current account deficit v) commodity price started falling vi) USD 4.2bn support by KSA and vii) recovery in Pak rupee. Foreign investors continued their selling spree by offloading shares worth USD 30.8mn. On the domestic front, insurance and other organization bought massively with a net buying of USD 20.6mn and USD 10.1mn respectively. A sector-wise analysis shows that commercial banks and fertilizer marked a massive foreign outflow of USD 25.2mn, and USD 23.3mn respectively.

ECONOMIC SUMMARY

Last Reported Month Current Month Previous Month YTD

CPI Inflation October 9.19% 8.98% 8.74%

Trade Deficit (USD mn) September (3,434) (3,650) (10,232)

Remittances (USD mn) September 2,670 2,658 8,035

Current A/C (USD mn) September (1,113) (1,473) (3,400)

FDI (USD mn) September 236 113 439

Tax Collection ** (PKR bn) October 439 546 1,834

M2 Growth* October -0.95% - -

FX Reserves* (USD bn) October 23.93 - -

Source SBP, FBS

* Latest monthly figures

** Provisional figures

FIXED INCOME YIELDS

PKRV Yields(%) 6 M 1 Yr 3 Yr 5 Yr 10 Yr

October 31 2021 8.78 9.09 9.89 10.15 11.00

September 2021 7.99 8.73 9.72 9.95 10.45

Change (bps) 79.00 36.00 17.00 20.00 55.00

Source : FMA

EQUITY MARKET PERFORMANCE

October 31, 2021 September30, 2021 M/M 1 Yr Low 1 Yr High

KSE - 100 Index 46,185 44,900 2.86% 39,119 48,726

Avg. Daily Vol. (mn) 119 149 -20.16% 48 699

Avg. Daily Val. (USD mn) 42 47 -9.99% 18 191

2021E PE(X) 5.3 - - - -

2021E DY 8.1% - - - -

Source: PSX, Bloomberg

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PERFORMANCE October 31,

2021 YTD* St. Dev** Sharpe Rato*** Alpha

ABL-IF 7.13% 7.39% 0.52% -1.59% -1.21%

BenchMark 8.45% 7.86% 0.02% 22.55% N/A

*Funds returns computed on NAV to NAV with the dividend reinvestment (excluding sales load) ** 12M Trailing Data ***3MPKRV used as RFR

ASSET ALLOCATION

September30, 2021 October 31, 2021

Cash 57.78% 51.89%

T-Bills 21.16% 28.79%

TFCs/SUKUK 6.78% 7.47%

Commercial Paper 3.62% 4.44%

MTS 6.64% 3.34%

Others including Receivables 2.92% 3.20%

PIBs 1.10% 0.87%

Total 100% 100%

Others Amount Invested by Fund of Funds is Rs. 177.76 million.

_ 3 month 6 month 1 Year 3 Year 5 Year Since Inception

ABL-IF 7.34% 7.38% 6.46% 9.85% 8.67% 17.22%

BenchMark 7.94% 7.80% 7.67% 9.89% 8.79% 9.91%

*Funds returns computed on Simple annualized basis / Performance data does not include cost incurred by investor in the form of sales load

CREDIT QUALITY OF PORTFOLIO (% OF TOTAL ASSETS) Investment Committee Members

Alee Khalid Ghaznavi - CEO Saqib Matin, FCA - CFO & CS Fahad Aziz - Head of Fixed Income Ali Ahmed Tiwana - Head of Equity Wajeeh Haider - Head of Risk Management Abdul Rehman Tahir, CFA - Fund Manager Muhammad Abdul Hayee, CFA - Fund Manager

BASIC FUND INFORMATION

Fund Type Open-end

Category Income Scheme

Launch Date September 20,2008

Net Assets PKR 15672.8mn as at October 31, 2021 Net Assets (Excluding FoF

Investments) PKR 15495.04mn as at October 31, 2021

NAV 10.1468 as at October 31, 2021

Benchmark 6 Months KIBOR

Dealing Days As Per Banking Days

Cut-off time 4:00 PM

Pricing Mechanism Forward

Management Fees 8% of gross earning subject to minimum of 0.5%

up to 1% of net assets p.a

Load upto 1.5%(Front-end),NIL(Back-end) Trustee Central Depository Company of Pakistan Ltd

(CDC)

Auditor Yousuf Adil Chartered Accountants Asset Manager Rating AM2++ (Positive Outlook) (JCR-VIS) 31

December, 2020 Risk Profile of the Fund Medium

Fund Stability Rating A+(f) (JCR-VIS) December 31, 2020

Fund Manager Fahad Aziz

Listing Pakistan Stock Exchange

Total expense ratio (TER) 0.35%

Government Levies 0.05%

Selling and Marketing Exp 0

Leverage Nil

TECHNICAL INFORMATION

Leverage Nil

Weighted average time to maturity of net assets 229.72 TOP HOLDINGS (% OF TOTAL ASSETS) October 31, 2021

BAHL TFC 2021 (29-SEP-2021) 2.15%

JSBL TFC 14-12-2016 1.37%

BOP-TFC-ABLIF 0.99%

BAHL/TFC/061218 0.74%

SONERI BANK TFC NEW 0.61%

JS BANK TFC1 29-DEC-17 0.50%

UMFB/TFC/230621 0.50%

JSCL/TFC/180717 0.34%

SBL/TFC/080715 0.27%

Total 7.47%

*DETAILS OF NON-COMPLIANT INVESTMENT WITH THE INVESTMENT CRITERIA OF ASSIGNED CATEGORY

Non-CompliantTypeof

Investment ExposureLimit % of NetAssets % of TotalAssets Excess Exposure(% of Net Asset)

Exposure(% of Total Asset)

- - - - - - -

*The scheme holds certain non-compliant investments. Before making any investment decision, investors should review this document and latest Financial Statements.

INVESTMENT OBJECTIVE

The objective is to earn competitive risk adjusted rate of return by investing in a blend of short, medium, and long-term fixed income and debt instruments, both within and outside Pakistan.

FUND MANAGER'S COMMENTS

During the month of October’21, ABL Income Fund posted a return of 7.13% against the benchmark return of 8.45% thereby underperforming the benchmark by 132bps. Fund had 28.79% exposure in T-bills, 7.47% exposure in TFCs, 4.44% exposure in Commercial papers, 3.34% exposure in MTS and 51.89% of the funds were placed as Cash at the end of October’21.

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ABL-CF 7.45% 7.43% 0.04% -1.14% 0.48%

BenchMark 7.19% 6.86% 0.01% -63.23% N/A

Cash 89.21% 80.86%

T-Bills 0.00% 14.77%

TFCs/SUKUK 0.80% 0.80%

Placements with Banks(TDRs) 7.96% 0.00%

Total 100% 100%

ABL-CF 7.49% 7.34% 7.24% 10.48% 10.25% 14.19%

BenchMark 6.91% 6.83% 6.76% 9.03% 7.65% 6.86%

Fund Type Open-end

Category Money Market Scheme

Launch Date July 31,2010

Benchmark* *70%-Avg of 3M PKRV rates + 30% 3M Avg Deposit Rate of 3 AA rated banks

Pricing Mechanism Backward

Management Fees 0.50% of average daily net assets Load Up to 0.75% (Front-end),NIL (Back-end) Trustee Central Depository Company of Pakistan Ltd

(CDC)

Auditor A.F. Ferguson - Chartered Accountants Asset Manager Rating AM2++ (Positive Outlook) (JCR-VIS)December

31,2020 Risk Profile of the Fund Low

Fund Stability Rating AA+(f) (JCR-VIS) December 31,2020

Leverage Nil

HUBCO SUKUK 6M CF (05-MAY-2021) 0.80%

Total 0.8%

- - - - - - -

The objective of ABL-CF is to provide investors, consistent returns with a high level of liquidity, through a blend of money market and sovereign debt instruments.

During the month of October’21, ABL Cash Fund posted an annualized return of 7.45% against the benchmark return of 7.19% thereby outperforming the benchmark by 26bps. The fund had 14.77% exposure in T-bills, 2.82% exposure in commercial paper, while 80.86% of the funds exposure was placed as Cash at the end of October’21.

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ABL-ICF 7.04% 7.00% 0.04% -10.79% 3.62%

BenchMark 3.20% 3.24% 0.01% -572.67% N/A

Cash 68.81% 73.55%

Placements with DFIs/Banks 21.85% 21.27%

Total 100% 100%

ABL-ICF 7.00% 6.93% 6.83% N/A N/A 7.75%

BenchMark 3.23% 3.17% 3.21% N/A N/A 3.78%

Fund Type Open-end

Category Shariah Compliant Money Market Scheme Launch Date February 10,2020

NAV 10 as at October 31, 2021

Benchmark

*Average deposit rates of three (3) AA rated Islamic Banks or Islamic windows of Conventional Banks

Pricing Mechanism Backward

Management Fees 2% gross subject to minimum 0.25% up to 0.75%

of NA p.a

Load upto 1% (Front-end), NIL (Back-end) Trustee Central Depository Company of Pakistan Ltd

(CDC)

Auditor A.F. Ferguson - Chartered Accountants Asset Manager Rating AM2++ (Positive Outlook) (JCR-VIS)December

31,2020 Risk Profile of the Fund Low

Fund Stability Rating AA(f) (JCR-VIS) December 31, 2020 Fund Manager Abdul Rehman Tahir, CFA

Leverage Nil

Weighted average time to maturity of net assets 8.38

- - - - - - -

The objective of the fund is to provide competitive returns by investing in low risk and highly liquid Shari’ah Compliant money market instruments.

During the month of October’21, ABL Islamic Cash Fund generated an annualized return of 7.04% against the benchmark return of 3.20% therefore outperforming the benchmark return by 384bps. Fund had 73.55% of its exposure in Cash, 21.27% as Placements with DFIs while 3.25% of the funds exposure was placed as Commercial paper at the end of October’21.

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ABL-GSF-B 4.74% 8.15% 1.62% -0.25% -0.62%

BenchMark 8.37% 7.74% 0.02% 13.61% N/A

T-Bills 3.89% 63.08%

TFCs/SUKUK 14.04% 17.02%

Cash 63.44% 14.95%

PIBs 15.84% 2.25%

Total 100% 100%

ABL-GSF-B 8.91% 7.53% 6.91% 10.60% 9.68% 14.37%

BenchMark 7.82% 7.67% 7.53% 9.75% 8.42% 8.21%

Fund Type Open-end

Category Income Scheme

Launch Date November 28,2011

Benchmark 6 Months PKRV rates

Management Fees Class-B unit 1.25% p.a.

Load Upto 1.5% (Front-end), Nil (Back-end) Trustee Central Depository Company of Pakistan Ltd

(CDC)

Auditor A.F. Ferguson - Chartered Accountants Asset Manager Rating AM2 ++ (Positive Outlook) (JCR-VIS) December

31,2020 Risk Profile of the Fund Moderate

Fund Stability Rating AA-(f) December 31, 2020

Leverage Nil

MEBL SUKUK II 9.61%

JSCL/TFC/180717 6.21%

JSCL TFC - 06-MAR-2018 (UPDATED) 1.20%

Total 17.02%

Non-Compliant Typeof

MEBL SUKUK II Per Party Exposure10% 10.25% 9.61% 0.25% 0%

Government Securities including Reverse Repo against Govt. Securities*

Government

Securities 70% - 100% 63.42% 0% -6.58% 0%

Government Securities including Reverse Repo against Govt. Securities*

Government

Securities 70% - 100% 69.84% 0% -0.16% 0%

The objective of the scheme is to deliver optimal risk adjusted returns by investing mainly in mix of short to long term Government Securities and other debt Instruments.

During the month of October’21, ABL Government Securities Fund posted a return of 4.74% against the benchmark return of 8.37% thereby underperforming the benchmark by 363bps. The fund had 63.08%

exposure in T-Bills, 2.25% exposure in PIBs, 17.02% exposure in TFCs and 14.95% of the funds exposure was placed as cash at the end of October’21.

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ABL-IIF 8.33% 6.90% 0.28% -4.78% 2.76%

BenchMark 3.19% 3.14% 0.01% -622.50% N/A

Cash 47.59% 33.57%

Corporate Sukuk 25.45% 28.87%

TDR Placements with Banks/Modarabas 0.00% 10.81%

Placements with DFIs 0.00% 7.92%

Total 90% 100%

ABL-IIF 7.27% 6.33% 5.97% 9.37% 8.28% 12.36%

BenchMark 3.15% 3.13% 3.21% 4.57% 3.78% 5.44%

Fund Type Open-end

Category Islamic Income Scheme

Launch Date July 31,2010

Benchmark* *Average of 6 Month Deposit Rate of 3 A rated Islamic Banks

Management Fees 8% of gross (min 0.4% , max 1%) Load upto 1.5% (Front-end), NIL (Back-end) Trustee Central Depository Company of Pakistan Ltd

(CDC)

Auditor A.F. Ferguson - Chartered Accountants Asset Manager Rating AM2 ++ (Positive Outlook) (JCR-VIS) December

31, 2020 Risk Profile of the Fund Moderate

Fund Stability Rating A+(f) (JCR-VIS) December 31, 2020 Fund Manager Abdul Rehman Tahir, CFA

Selling and Marketing Exp 3,736,905

Leverage Nil

HUBCO SUKUK 22-AUG-19 12.61%

DIB SUKUK (14-07-2017) 7.32%

EPCL/SUK/110419 5.44%

HUBCO/SUK/190320 3.01%

MEBL SUKUK II 0.39%

FFCL SUKUK IIF 0.08%

KEL SUKUK (03-AUG-20) 0.02%

Total 28.87%

Exposure(% of Total Asset) The Hub Power

Company Limited

Per Party

Exposure 15% 15.77% 15.62% 0.77% 0.62%

To provide investors with an opportunity to earn higher income over the medium to long-term by investing in a diversified portfolio consisting of different money market and debt instruments permissible under the Shariah principles.

During the month of October’21, ABL Islamic Income Fund posted an annualized return of 8.33% against the benchmark return of 3.19% thereby outperforming the benchmark by 514bps. The fund had 28.87%

of the exposure as Corporate Sukuks, 10.81% as TDR placements, 14.60% as Commercial paper, 7.92% was placed with DFIs while 33.57% of the funds exposure was placed as Cash at the end of October’21.

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PERFORMANCE

October 31, 2021 YTD* St. Dev** Beta*** Alpha

ABL-IDSF 3.42% -4.35% 16.96% 0.92% -3.31%

BenchMark 3% -2.79% 16.30% 1.00% N/A

Stock/Equity 86.17% 95.15%

Bank Balances 4.39% 2.68%

Others 9.44% 2.17%

Total 100% 100%

ABL-IDSF -3.78% 3.42% 14.00% 1.28% N/A -9.94%

BenchMark -2.33% 4.21% 17.31% 3.83% N/A -7.67%

*Funds returns computed on absolute basis / Performance data does not include cost incurred by investor in the form of sales load

SECTOR ALLOCATION (% OF TOTAL ASSETS) Investment Committee Members

Fund Type Open-end

Category Shariah Compliant Equity Scheme

Launch Date December 20,2016

Investments) Nil

Benchmark KMI-30 Index

Pricing Mechanism Forward Management Fees 2% p.a

Load NIL (Front-end), NIL (Back-end) Trustee MCB Financial Services Limited(MCBFSL) Auditor A.F. Ferguson & Co, Chartered Accountants Asset Manager Rating AM2++ (Positive outlook) (JCR-VIS) December 31,

2020 Risk Profile of the Fund High Performance Rating N/A

Fund Manager M. Abdul Hayee, CFA

Selling and Marketing Exp 2,736,981

Leverage Nil

TOP TEN HOLDINGS (% OF TOTAL ASSETS) September30, 2021 October 31, 2021

Lucky Cement Limited 8.66% 11.07%

Meezan Bank Ltd. 10.08% 10.13%

Oil & Gas Dev.Co 10.51% 9.44%

Pak Petroleum Ltd. 8.01% 8.89%

Mari Gas Company Limited 7.66% 8.51%

SYSTEM LTD 4.34% 5.63%

Pakistan State Oil Co. Ltd. 2.13% 4.63%

Maple Leaf Cement Factory Limited 4.22% 3.68%

INTERLOOP LTD 3.47% 3.55%

Cherat Cement Company Limited 0.47% 3.46%

Non- Compliant

Typeof

Investment ExposureLimit% of NetAssets

% of TotalAssets

Excess Exposure(% of Net Asset)

Exposure(% of Total Asset)

- - - - - - -

To provide capital appreciation to investors of ‘Fund of Funds’ schemes by investing in Shariah compliant equity securities.

ABL-IDSF Increased by 3.42% in Oct’21 against 3% Increase in the benchmark, reflecting an over performance of 42 basis points. As at Oct’ 21 ABL-IDSF was 95.15% invested in equities and remaining in bank deposits. During the month, the KMI-30 took a breath by recovering 2,170 points (~3.0% MOM) and closed the period at 74,486 points. Average traded volume and value decreased by 2.3%MOM to 49mn and 13.5%MOM to USD 22mn respectively. Investors remained on the safe side and mixed behavior was observed amid i) higher inflation ii) pressure on external front iii) undecided IMF review, iv) lower current account deficit v) commodity price started falling vi) USD 4.2bn support by KSA and vii) recovery in Pak rupee. Foreign investors continued their selling spree by offloading shares worth USD 30.8mn. On the domestic front, insurance and other organization bought massively with a net buying of USD 20.6mn and USD 10.1mn respectively. A sector-wise analysis shows that commercial banks and fertilizer marked a massive foreign outflow of USD 25.2mn, and USD 23.3mn respectively.