Alfalah GHP Prosperity Planning · PDF fileAlfalah GHP Prosperity Planning Fund ... The Board of Directors of Alfalah GHP Investment Management Limited is pleased to ... and was aimed

Alfalah GHP Prosperity Planning Fund

Half Yearly Report 2016

CONTENTS

Fund's information..............................................................................................1

Mission and Vision Statement ............................................................................2

Report of the Directors of the Management Company ......................................3

Report to the Trustee..........................................................................................8

Auditor Report to the Unit Holder ......................................................................9

Condensed Interim Statement of Assets and Liabilities....................................10

Condensed Interim Income Statement .............................................................11

Condensed Interim Statement of Comprehensive Income...............................12

Condensed Interim Statement of Cash Flows ...................................................13

Condensed Interim Distribution Statement......................................................14

Condensed Interim Statement of Movement in Unit Holders' Funds...............15

Notes to the Condensed Interim Financial Statements ....................................16

Page No.



FUND'S INFORMATION

Management Company: Alfalah GHP Investment Management Limited8-B, 8th Floor, Executive Tower, Dolmen City, Block-4,Clifton, Karachi..

Board of Directors of the Management Company: - Ms. Maheen Rahman

- Syed Ali Sultan- Mr. Michael Hermann- Mr. Hanspeter Beier- Mr. Amin Dawood Saleh- Mr. Abid Naqvi

- Syed Tariq Husain

Chief Operating Officer, CFOand Company Secretary: - Mr. Noman Ahmed Soomro

Audit Committee: - Syed Ali Sultan- Mr. Abid Naqvi- Mr. Amin Dawood Saleh

HR Committee: - Syed Ali Sultan- Mr. Michael Hermann- Ms. Maheen Rahman

Trustee: Central Depository Company of Pakistan LimitedCDC House, 99-B, Block 'B', SMCHS,Main Shara-e-Faisal, Karachi

Fund Manager: Mr. Nabeel Malik

Bankers to the Fund: Bank Alfalah Limited

Auditors: Ernst & Young Ford Rhodes Sidat HyderChartered AccountantsProgressive Plaza, Beaumont RoadP.O.Box 15541, Karachi 75530Pakistan

Legal Advisor: Bawaney & PartnersRoom No. 404, 4th FloorBeaumont Plaza, 6-cl-10Beaumont Road, Civil LinesKarachi.

Registrar: Alfalah GHP Investment Management Limited8-B, 8th Floor, Executive Tower, Dolmen City, Block-4,Clifton, Karachi.

Distributor: Bank Alfalah Limited

Rating: Not yet rated



MISSION STATEMENT

"To be the best money management company in Pakistan. We will hold our clientsmoney in sacred trust that has to be actively protected and sustainably nurtured so

as to achieve client objectives".

VISION STATEMENT

"To be the leading wealth management firm by offering global investment advice,trust services, family estate planning etc for all Pakistani clients whether based in

Pakistan or abroad".



DIRECTORS' REPORT

To our valued Unit Holders,

The Board of Directors of Alfalah GHP Investment Management Limited is pleased to present you the half yearlyreport of the Alfalah GHPProsperity Planning Fund for the half year ended December 31, 2015.

Economic Review & Outlook

Pakistan observed substantial economic progress over 1HFY16, with improvement seen across a majority of economic indicators. Much ofthis improvement is owed to the prevalent low commodity cycle, which mainly benefits trade deficit countries like Pakistan that importcommodities.

Owing to low crude oil prices, headline inflation averaged at 2.07% YoY over the period. On monthly basis, inflation settled as low as 1.31%(Sep'15) - a multi-decade low level for Pakistan. Low oil prices not only lowered the overall import bill (-10% YoY) and improved trade deficit(-9%YoY), but also kept incremental circular debt in check. With no formal agreement between oil exporters, significantly higher oil pricesseen unlikely in the medium term.

The current account deficit of USD 1,267mn (1HFY16) as opposed to deficit of USD 2,463mn last year (1HFY15) reflected an improvementof 49%, derived from a 9% improvement in the trade balance and a 6% improvement in remittances. Low current account deficit coupledwith foreign flows (from IMF and bilateral partners), Eurobond issuance and privatization proceeds pushed foreign exchange reserves tohistorical high level of USD 21bn.

The country saw its credit rating upgraded in May by Moody's and S&P's to B3 and B-, respectively, on the back of ongoing economic reformsat the federal level, improving macroeconomic indicators, rising foreign exchange reserves, and highter investment expected from the ChinaPakistan Economic Corridor (CPEC). Outlook on the country was also changed from stable to positive by the rating agencies. This improvementin sovereign rating enabled Pakistan to successfully launch another 10-year Eurobond worth USD 500m in Sep'16 at a rate of 8.25%, afterhaving raised USD 2.0bn in Eurobond and USD 1.0bn in USD-denominated Sukuk in 2014.

During 1HFY16, the State Bank of Pakistan revised the key policy ratedown by 50bps to 6.5%, and reduced the overnight target rate to 6.0%.The move came in light of record-low inflation and more than comfortable real rate of return, and was aimed at lifting private credit off-take and providing impetus to economic growth. Together with the 250bps cut that took place earlier over 2HFY15, the easing also helpedindustries, businesses and individual borrowers reduce their financing costs and avail cheaper financing for expansions. While manufacturerswelcomed the recent easing , commercial banks were impacted negatively due to compressed interest spread.

Going forward, Pakistan is likely to continue to observe improvement in macroeconomic indicators, especially current account, foreignexchange reserves and GDP growth. Few areas that still need attention include fiscal deficit, tax-to-GDP ratio/tax targets and privatizationof state-owned entities including Pakistan International Airlines, Pakistan Steel Mills and power distribution companies.

Equity Review

The local equity market posted a contraction of 4.6%over 1HFY16 as the KSE-100 index fell from 34,399 points to 32,816 points on the backof global equity pressure, falling crude oil prices, US Fed rate hike anticipation and local regulatory issues. The index still outperformed MSCIEM (-18.3%), MSCI FM (-12.4%) and MSCI Pakistan (-16.1%) on the back of performance generated by non-mainstream sectors, which arelargely excluded from the three MSCI large-cap indices above. Average daily volumes at the bourse were only marginally up (+3.5%) from258mn shares (2HFY15) to 267mn shares (1HFY16) owing to caution exercised by investors on the back of aforementioned foreign and localfactors.

The downward trend at the local bourse can be attributed to a steep decline in the index heavy weight Oil and Gas sector (1HFY16: -26%)and the Banking sector (1HFY16: -5%). Banking sector, the heaviest weighted sector in the index, bipped on account of interest spreadcompression and slowdown in deposit growth. The Oil and Gas sector, on the other hand, remained under pressure due to falling internationalcrude oil prices and OPEC's decision to not curtail oil supply. The resolution of the Iranian nuclear issue also dragged oil prices lower as itwould mean greater oil supply in the future.



While lower commodity prices hurt commodity producers, they impacted import-oriented sectors positively as multiyear low raw materialprices of Copper, Steel, Aluminum, Oil, Coal, Rubber etc. propped up gross margins and lifted bottom-line of material intensive companies.In this connection, Industrial Metals & Mining (+72.4%), Pharmaceuticals (+20.3%), Industrial Transportation (+10.7%) and ConstructionSector (+0.8%) among others outperformed the broader index during the period. Notable appreciation was witnessed in the Software andComputer Services sector, which appreciated by 39.4%

on the back of rapidly developing global clientele and more frequent orders from such clients.

We remain cautiously optimistic about the equity market over 2HFY16 and expect the market to leverage improving economic indicators.This improvement shall emanate from low commodity prices, government's economic reform agenda and demand coming from CPECprojects. Costs shall remain low for majority of manufacturing concerns, especially costs pertaining to raw material and financial leverage.Pakistan's re-entry into the emerging market (from frontier market) remains an eagerly anticipated trigger for 2016-17 as the reclassificationcould open avenues from which considerable foreign inflow could be realized. That said, regional equity performance coupled with regionalcurrency movement will be a key influencing factor for the local market.

Money Market Review

On account of record low inflation (CPI), which touched a low of 1.31% in Sep'15 and averaged 2.07% for the period under discussion, theState Bank of Pakistan cut the discount rate further by 50bps to 6.5%. With price levels under control, the easing by the regulator was aimedat boosting aggregate demand and demand for loanable funds.

1HFY16 continued to be generous to bond fund managers who maintained high duration PIB exposures. Yields slipped substantially on theselonger-tenor instruments, generating multi-year high returns. The easing cycle brought down bond yields by 69bps (3Y), 57bps (5Y) and64bps (10Y) over 1HFY16. The government continued to fund its fiscal gap via longer-tenor PIBs as opposed to T-bills. The SBP conductedsix PIB auctions over 1HFY16 and targeted PKR 300bn in borrowings.

To protect depositors and keep banking deposits attractive enough, the State Bank of Pakistan raised the minimum deposit rate on PLSaccount by 50bps by narrowing the interest rate corridor. While the move gave depositors some benefit against the backdrop of fallingdeposit rates, interest rate margins of Commercial Banks, especially ones with low current accounts, were impacted negatively. This contributedfurther in reducing banking NIMs.

FUND PERFORMANCE AND REVIEW

Alfalah GHP Prosperity Planning Fund: Fund Operations and Performance

The Fund was launched during the year and came into existence on 11thSeptember, 2015. The Fund currently manages three investmentplans under its umbrella.The combined net assets of the fund stood at PKR 753.9 million as on December 31, 2015.

Active Allocation Plan

The plan generated a return of 1.94% since inception against the benchmark of -0.30%. Being an active allocation plan the exposure towardsequity funds remained on the higher side (on average approximately 40% during the period) and remaining assets were invested in fixedincome component. The underlying funds outperformed the broader market and therefore the plan comfortably managed to outpace thebenchmark during the period. Net assets of the plan stood at PKR 238.4 million on December 31st, 2015.



Moderate Allocation Plan

The plan generated a return of 1.90% since inception against the benchmark of 0.21%. The plan is aimed at investors with a medium riskprofile and hence it is structured to invest in equity based mutual funds between 20% - 40%. The exposure towards equity funds during theperiod remained relatively on the lower end (on average approximately 25%) and remaining assets were invested in a combination of fixedincome and money market component. The underlying funds outperformed the broader market and the fund easily outperformeditsbenchmark during the period. Net assets of the plan stood at PKR 227.15 mi l l ion on December 301st, 2015.



Conservative Allocation Plan

The plan generated a return of 1.78% since inception against the benchmark of 1.11%. This plan is targeted at investors with a low risk profileand is structured to invest in equity based mutual funds up to a maximum of 20%. The structure provides stability of a fixed income basedscheme with equity bit to provide a slight alpha. The exposure towards equity funds during the period remained low (on average approximately13%) and remaining assets were invested in a combination of fixed income and money market component. The equity funds provided a kickto the overall plan's return and the fund managed to outperform its benchmark during the period. Net assets of the plan stood at PKR 288.32million on December 301st, 2015.



February 25, 2016Karachi

For and behalf of the Board

Maheen RahmanChief Executive Officer

Key Financial Data(Rupees in millions)

Description

Net Assets at end of the periodGross incomeTotal Comprehensive IncomeNet Assets Value per Unit (Rs.)Issuance of units during the periodRedemption of units during the period

753.9514.4313.91-----

892.04151.50

From September 12th to31 December 2015

Future Outlook

Going forward, the focus will be on active allocation of the fund between equity and fixed income components in order to target a higherreturn while aiming to preserve the capital.

Acknowledgement

The Directors express their gratitude to the Securities and Exchange Commission of Pakistan for its valuable support, assistance and guidance.The Board also thanks the employees of the Management Company and the Trustee for their dedication and hard work and the unit holdersfor their confidence in the Management.





Introduction

We have reviewed the accompanying condensed interimstatement of assets and liabilities of Alfalah GHPProsperity Planning Fund (the Fund) as at 31 December 2015, the related condensed interim incomestatement,condensed interim statement of comprehensive income, condensed interim statement ofcash flows,condensed interim distribution statement and condensed interim statement of movement in unit holders' fundand notes to the accounts for the period then ended (here-in-after referred to as "interim financial information").Management Company is responsible for the preparation and presentation of this interim financial informationin accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on ReviewEngagements 2410, "Reviewof Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interimfinancial information consists of making inquiries, primarily of persons responsible for financial and accountingmatters, and applying analytical and other review procedures. A review is substantially less in scope than anaudit conducted in accordance with International Standards on Auditing and consequently does not enableus to obtain assurance that we would become aware of all significant matters that might be identified in anaudit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanyinginterim financial information is not prepared, in all material respects, in accordance with approved accountingstandards as applicable in Pakistan for interim financial reporting.

Chartered Accountants

Engagement Partner: Shabbir Yunus

Date: February 25, 2016Karachi

AUDITORS' REPORT TO THE UNIT HOLDERS ONREVIEW OF INTERIM FINANCIAL INFORMATION



AssetsBank balancesInvestmentsDeferred formation costMark-up receivablePrepaymentsTotal assets

LiabilitiesPayable to the Management CompanyPayable to the TrusteeAnnual fee payable to Securities and Exchange Commission of PakistanAccrued and other liabilitiesTotal liabilities

Net assets attributable to unit holders

Unit holders’ funds

Contingencies and commitments

Number of units in issue

Net assets value per unit

For Alfalah GHP Investment Management Limited(Management Company)

DirectorChief Executive Officer

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIESAS AT DECEMBER 31, 2015

The annexed notes from 1 to 18 form an integral part of these financial statements.

1,197,579 226,345,226

969,633 15,310

5,479 228,533,227

1,243,637 19,586

38,893 79,526

1,381,642

227,151,585

227,151,585

2,229,204

101.8981

4,885,597 751,081,253

4,142,255 136,540

15,495 760,261,140

5,160,689 71,138

162,269 919,943

6,314,039

753,947,101

753,947,101

7,401,338

ModerateAllocation

Total

1,649,091 237,467,517

114,149 104,440

5,333 239,340,530

376,165 23,629

50,922 415,374 866,090

238,474,440

238,474,440

2,339,317

101.9419

2,038,927 287,268,510

3,058,473 16,790

4,683 292,387,383

3,540,887 27,923

72,454 425,043

4,066,307

288,321,076

288,321,076

2,832,817

101.7789

-------------- (Rupees) --------------

ActiveAllocation

------------------------------------ (Rupees) ------------------------------------

ConservativeAllocation

Note

456

78

910

11

As at December 31, 2015





INTERIM INCOME STATEMENTFOR THE PERIOD FROM SEPTEMBER 12, 2015 TO DECEMBER 31, 2015

IncomeInterest income on bank deposits

'At fair value through profit or loss' - held-for-trading - Net gain on sale of investments- Net unrealised appreciation in fair value of investmentsTotal income

ExpensesRemuneration of the Management CompanySales tax on management feeFederal excise duty on management feeRemuneration of the TrusteeSales tax on trustee feeAnnual fee to the Securities and Exchange Commission of PakistanAmortisation of deferred formation costAuditors' remunerationAnnual listing feeAnnual rating feePrinting chargesBank chargesTotal expenses

Net income from operating activities

Net income for the period before taxation

Element of income / (loss) and capital gains /(losses) included in prices of units soldless those in units redeemed - net

Taxation

Net income for the period after taxation


221,534

235,307 3,109,919 3,566,760

22,638 3,682 3,626

51,841 7,259

38,893 63,423 32,812

2,854 28,533 22,826

3,980 282,367

3,284,393

3,284,393

1,022,118

-

4,306,511

851,016

2,677,116 10,904,137 14,432,269

37,210 6,050 5,966

216,276 30,272

162,269 267,921 109,289

9,504 95,035 76,027

9,703 1,025,522

13,406,747

13,406,747

498,841

-

13,905,588

104,440

768,089 3,699,428 4,571,957

3,208 520 513

67,876 9,500

50,922 9,747

34,502 3,000

30,002 24,001

- 233,791

4,338,166

4,338,166

203,479

-

4,541,645

525,042

1,673,720 4,094,790 6,293,552

11,364 1,848 1,827

96,559 13,513

72,454 194,751

41,975 3,650

36,500 29,200

5,723 509,364

5,784,188

5,784,188

(726,756)

-

5,057,432

Note

12

13

14

15,828

768,089 3,619,740 4,403,657

1,131 184 180

57,942 8,111

43,474 6,256

28,927 2,514

25,159 20,129

- 194,007

4,209,650

4,209,650

203,479

-

4,413,129

149,535

1,673,720 3,571,085 5,394,340

8,064 1,313 1,297

78,616 11,002

58,997 163,852

32,705 2,844

28,444 22,755

5,723 415,612

4,978,728

4,978,728

(726,756)

-

4,251,972

48,550

235,307 3,047,429 3,331,286

14,005 2,279 2,249

45,536 6,374

34,162 51,980 28,945

2,515 25,167 20,138

3,980 237,330

3,093,956

3,093,956

1,021,481

-

4,115,437

213,913

2,677,116 10,238,254 13,129,283

23,200 3,776 3,726

182,094 25,487

136,633 222,088

90,577 7,873

78,770 63,022

9,703 846,949

12,282,334

12,282,334

498,204

-

12,780,538

ModerateAllocation

TotalActiveAllocation

-------------------------- (Rupees) --------------------------


From September 12, 2015 to December 31, 2015ModerateAllocation


-------------------------- (Rupees) --------------------------


Quarter ended December 31, 2015





INTERIM STATEMENT OF COMPREHENSIVE INCOMEFOR THE PERIOD FROM SEPTEMBER 12, 2015 TO DECEMBER 31, 2015

Net income for the period

Other comprehensive income during the period

Total comprehensive income for the period


4,306,511

-

4,306,511

13,905,588

-

13,905,588

4,541,645

-

4,541,645

5,057,432

-

5,057,432

4,413,129

-

4,413,129

4,251,972

-

4,251,972

4,115,437

-

4,115,437

12,780,538

-

12,780,538

ModerateAllocation


-------------------------- (Rupees) --------------------------




-------------------------- (Rupees) --------------------------







INTERIM STATEMENT OF CASH FLOWSFOR THE PERIOD FROM SEPTEMBER 12, 2015 TO DECEMBER 31, 2015

CASH FLOWS FROM OPERATING ACTIVITIESNet income for the period

Adjustments for:Amortization of deferred formation costNet unrealised diminution in fair value of investments classified as 'at fair value through profit or loss - held-for-trading'Element of (loss) / income and capital (losses) / gains included in prices of units sold less those in units redeemed - net

Increase in assetsInvestments - netDeferred formation costMark-up receivablePrepaymentsPayable to the Management CompanyRemuneration payable to the TrusteeAnnual fee to the Securities and Exchange Commission of PakistanAccrued and other liabilities

Net cash (used in) / generated operating activities

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issuance of units (including units issued to Pre-IPO investors against accrued interest before initial period)Payment against redemption of unitsNet cash generated / (used in) from financing activities

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at end of the period


4,306,511

63,423

(3,109,919)

(1,022,118) 237,897

(223,235,307) (1,033,056)

(15,310) (5,479)

1,243,637 19,586

38,893 79,526

(222,907,510) (222,669,613)

228,867,192 (5,000,000)

223,867,192

-

1,197,579

13,905,588

267,921

(10,904,137)

(498,841) 2,770,531

(740,177,116) (4,410,176)

(136,540) (15,495)

5,160,689 71,138

162,269 919,943

(738,425,288) (735,654,757)

892,041,622 (151,501,268) 740,540,354

-

4,885,597

4,541,645

9,747

(3,699,428)

(203,479) 648,485

(233,768,089) (123,896) (104,440)

(5,333) 376,165

23,629

50,922 415,374

(233,135,668) (232,487,183)

246,893,954 (12,757,680) 234,136,274

-

1,649,091

5,057,432

194,751

(4,094,790)

726,756 1,884,149

(283,173,720) (3,253,224)

(16,790) (4,683)

3,540,887 27,923

72,454 425,043

(282,382,110) (280,497,961)

416,280,476 (133,743,588) 282,536,888

-

2,038,927

4,413,129

6,256

(3,619,740)

(203,479) 596,166

(40,768,089) -

(15,828) 2,514

(2,057,542) 12,306

43,474 401,084

(42,382,081) (41,785,915)

56,113,099 (12,757,680) 43,355,419

79,587

1,649,091

4,251,972

163,852

(3,571,085)

726,756 1,571,495

56,826,280 -

358,717 2,844

(1,105,682) 7,469

58,997 401,272

56,549,897 58,121,392

72,071,033 (133,743,588)

(61,672,555)

5,590,090

2,038,927

4,115,437

51,980

(3,047,429)

(1,021,481) 98,507

(110,235,307) -

157,674 2,515

(763,079) 12,396

34,162 69,605

(110,722,034) (110,623,527)

107,482,755 (5,000,000)

102,482,755

9,338,351

1,197,579

12,780,538

222,088

(10,238,254)

(498,204) 2,266,168

(94,177,116) -

500,563 7,873

(3,926,303) 32,171

136,633 871,961

(96,554,218) (94,288,050)

235,666,887 (151,501,268)

84,165,619

15,008,028

4,885,597

ModerateAllocation


-------------------------- (Rupees) --------------------------




-------------------------- (Rupees) --------------------------







INTERIM DISTRIBUTION STATEMENTFOR THE PERIOD FROM SEPTEMBER 12, 2015 TO DECEMBER 31, 2015

Undistributed income brought forward at end of the period- Realised gains- Unrealised gains

Net income for the period

Undistributed income for the period

Undistributed income carried forward at end of the period- Realised gains- Unrealised gains


- - -

4,306,511

4,306,511

1,196,592 3,109,919 4,306,511

- - -

13,905,588

13,905,588

3,001,451 10,904,137 13,905,588

- - -

4,541,645

4,541,645

842,217 3,699,428 4,541,645

- - -

5,057,432

5,057,432

962,642 4,094,790 5,057,432

48,828 79,688

128,516

4,413,129

4,541,645

421,905 3,619,740 4,541,645

281,755 523,705 805,460

4,251,972

5,057,432

1,486,347 3,571,085 5,057,432

128,584 62,490

191,074

4,115,437

4,306,511

1,259,082 3,047,429 4,306,511

458,530 665,883

1,124,413

12,780,538

13,904,951

3,666,697 10,238,254 13,904,951

ModerateAllocation


-------------------------- (Rupees) --------------------------




-------------------------- (Rupees) --------------------------







INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUNDFOR THE PERIOD FROM SEPTEMBER 12, 2015 TO DECEMBER 31, 2015

Net assets at beginning of the period

Amount realised on issuance of 8,849,242 units

Amount paid on redemption of 1,447,904 units

Element of (loss) / income and capital (losses) / gains included in prices of units sold less those in units redeemed - net

Net unrealised diminution in fair value of investments classified as 'at fair value through profit or loss - held-for-trading'

OthersTotal comprehensive income for the period

Net assets at end of the period


-

228,867,192

(5,000,000) 223,867,192

(1,022,118)

3,109,919

1,196,592 4,306,511

227,151,585

-

892,041,622

(151,501,268) 740,540,354

(498,841)

10,904,137

3,001,451 13,905,588

753,947,101

-

246,893,954

(12,757,680) 234,136,274

(203,479)

3,699,428

842,217 4,541,645

238,474,440

-

416,280,476

(133,743,588) 282,536,888

726,756

4,094,790

962,642 5,057,432

288,321,076

190,909,371

56,113,099

(12,757,680) 234,264,790

(203,479)

3,619,740

793,389 4,413,129

238,474,440

345,014,903

72,071,033

(133,743,588) 283,342,348

726,756

3,571,085

680,887 4,251,972

288,321,076

121,574,874

107,482,755

(5,000,000) 224,057,629

(1,021,481)

3,047,429

1,068,008 4,115,437

227,151,585

657,499,148

235,666,887

(151,501,268) 741,664,767

(498,204)

10,238,254

2,542,284 12,780,538

753,947,101

ModerateAllocation


-------------------------- (Rupees) --------------------------




-------------------------- (Rupees) --------------------------





CONDENSED INTERIM NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD FROM SEPTEMBER 12, 2015 TO DECEMBER 31, 2015

1. LEGAL STATUS AND NATURE OF BUSINESS

Alfalah GHP Prosperity Planning Fund (the Fund) is an open-end collective investment scheme establishedthrough a Trust Deed under the Trust Act, 1882, executed between Alfalah GHP Investment ManagementLimited, (the Management Company) and Central Depository Company of Pakistan Limited (the Trustee).The Trust Deed was executed on July 07, 2015 and was approved by the Securities and Exchange Commissionof Pakistan (SECP) in accordance with the NBFC (Establishment and Regulation) Rules 2003 (NBFC Rules),on July 03, 2015.

The Management Company of the Fund has been licensed by SECP to act as an Asset Management Companyunder NBFC Rules. The registered office of the Management Company is situated at 8th Floor, ExecutiveTower, Dolmen Mall, Block-4, Clifton, Karachi.

The Fund was registered by the Securities and Exchange Commission of Pakistan (SECP) as a Notified Entityunder Regulation 44 of the Non Banking Finance Companies and Notified Entities Regulations, 2008 (NBFCRegulations) vide its letter No. SCD/SMCW/AGPPF/30/2015 dated July 30, 2015 and Offering Document wasapproved by SECP under Regulation 54 of the NBFC Regulations, vide its letter No. SCD/AMCW/AGPPF/29/2015dated July 30, 2015.

The Fund is an open end mutual fund and is listed on Pakistan Stock Exchange Limited. Units are offered forpublic subscription on a continuous basis. The units are transferable and can be redeemed by surrenderingthem to the Fund.

The objective of the Fund is to generate returns on investment as per the respective Allocation Plan byinvesting in collective investment schemes in line with the risk tolerance of the investor. Presently, thefollowing allocation plans are offered:

a. Alfalah GHP Active Allocation Planb. Alfalah GHP Conservative Allocation Planc. Alfalah GHP Moderate Allocation Plan

The Pakistan Credit Rating Agency Limited (PACRA) has assigned asset management rating of 'AM2-' (Outlook:Stable) to the Management Company in its rating report dated April 15, 2015.

Title to the assets of the Fund are held in the name of Central Depository Company of Pakistan Limited asthe Trustee of the Fund.

2. BASIS OF PRESENTATION

2.1 Statement of compliance

These interim financial statements have been prepared in accordance with the requirement of approvedaccounting standards as applicable in Pakistan, the Trust Deed, the Non-Banking Finance Companies(Establishment and Regulation) Rules, 2003 (the NBFC Rules), the Non-Banking Finance Companies andNotified Entities Regulations, 2008 (the NBFC Regulations) and directives issued by the Securities and ExchangeCommission of Pakistan (SECP). Approved accounting standards comprise of such International FinancialReporting Standards (IFRSs) issued by the International Accounting Standards Board as are notified underthe Companies Ordinance, 1984. Wherever the requirements of the Trust Deed, the NBFC Rules, the NBFCRegulations or directives issued by SECP differ with the requirements of IFRSs, the requirements of the TrustDeed, the NBFC Rules, the NBFC Regulations or the directives issued by SECP shall prevail.



2.2 Basis of measurement

These interim financial statements have been prepared under the historical cost convention, except thatinvestments are measured at fair value.

2.3 Functional and presentation currency

These interim financial information are presented in Pak Rupees which is the functional and presentationcurrency of the Fund.

2.4 Accounting estimates and judgments

The preparation of financial statements in conformity with approved accounting standards requiresmanagement to make judgments, estimates and assumptions that affect the application of policies andreported amounts of assets and liabilities, income and expenses. The estimates and associated assumptionsare based on historical experience and various other factors that are believed to be reasonable under thecircumstances, the result of which form the basis of making the judgments about the carrying values ofassets and liabilities that are not readily apparent from other sources. Actual results may differ from theseestimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accountingestimates are recognised in the period in which the estimate is revised if the revision affects only that period,or in the period of the revision and future periods if the revision affects both current and future periods.

Judgments made by management in the application of accounting policies that have significant effect onthe financial statements and estimates with a significant risk of material adjustment are explained in notes3.2 and 3.3 respectively.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following accounting policies were adopted in the preparation of these interim financial statements:

3.1 Financial instruments

The Fund classifies its financial instruments and derivatives in the following categories:

a) Financial instruments at fair value through profit or loss

An instrument is classified 'at fair value through profit or loss' if it is 'held-for-trading' or is designated assuch upon initial recognition. Financial instruments are designated 'at fair value through profit or loss' if theFund manages such investments and makes purchase and sale decisions based on their fair value in accordancewith the Fund's documented risk management or investment strategy. Financial assets which are acquiredprincipally for the purpose of generating profit from short term price fluctuation or are part of the portfolioin which there is recent actual pattern of short term profit taking are classified as 'held-for-trading' orderivatives.

All derivatives in a net receivable position (positive fair value), are reported as financial assets held-for-trading. All derivatives in a net payable position (negative fair value), are reported as financial liabilities 'held-for-trading'.



b) Available-for-sale

Investments intended to be held for an indefinite period of time, which may be sold in response to needsfor liquidity or changes in market prices, are classified as 'available-for-sale'.

c) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are notquoted in an active market, other than those classified by the Fund as 'fair value through profit or loss' or'available-for-sale'. This includes receivable against sale of investments and other receivables and are carriedat amortized cost using the effective yield method, less impairment losses, if any.

d) Financial liabilities

Financial liabilities, other than those at 'fair value through profit or loss', are measured at amortised costusing the effective yield method.

Recognition

The Fund recognizes financial assets and financial liabilities on the date when it becomes a party to thecontractual provisions of the instrument. A regular way purchase of financial assets is recognized using tradedate accounting. From this date, any gains and losses arising from changes in fair value of the financial assetsor financial liabilities are recorded.

Financial liabilities are not recognized unless one of the parties has performed its part of the contract or thecontract is a derivative contract.

Measurement

Financial instruments are measured initially at fair value (transaction price) plus, in case of a 'financialinstrument not at fair value through profit or loss', transaction costs that are directly attributable to theacquisition or issue of the financial instruments. Transaction costs on financial instruments 'at fair valuethrough profit or loss' are expensed out immediately.

Subsequent to initial recognition, financial instruments classified as 'at fair value through profit or loss' and'available-for- sale' are measured at fair value. Gains or losses arising, from changes in the fair value of thefinancial assets 'at fair value through profit or loss' are recognized in the Income Statement. Changes in thefair value of financial instruments classified as 'available-for-sale' are recognized in Unit Holders' Fund untilderecognized or impaired, then the accumulated fair value adjustments recognized in Unit Holders' Fundare included in the Income Statement.

Fair value measurement principles

Basis of valuation of Quoted Equity Securities / Units of Mutual Funds

The fair value of quoted equity securities / units of mutual funds are based on their price quoted on theStock Exchange / NAVs declared by the relevant Asset Management Companies at the balance sheet datewithout any deduction for estimated future selling costs.

3.2 Impairment

Financial assets not carried at fair value through profit or loss are reviewed at each balance sheet date todetermine whether there is objective evidence of impairment. If any such indication exists an impairmentloss is in Income Statement.



However, the decrease in impairment loss on equity securities classified as available-for-sale is recognizedin unit holder's fund and for debt securities classified as available-for-sale is recognized income statement.

3.3 Derecognition

The Fund derecognises a financial asset when the contractual rights to the cash flows from the financialasset expire or it transfers the financial asset and the transfer qualifies for derecognition in accordance withInternational Accounting Standard 39: Financial Instruments; Recognition and Measurement.

A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled orexpired.

3.4 Unit holders' fund

Unit holders' fund representing the units issued by the Fund, is carried at the redemption amount representingthe investors' right to a residual interest in the Fund's assets.

3.5 Issue and redemption of units

Units issued are recorded at the offer price, determined by the Management Company for the applicationsreceived by the distributors during business hours on that date. The offer price represents the net assetvalue per unit as of the close of the business day plus the allowable sales load and any provision for dutiesand charges, if applicable. The sales load is payable to investment facilitators, distributors and the ManagementCompany.

Units redeemed are recorded at the redemption price, applicable to units for which the distributors receiveredemption applications during business hours of that day. The redemption price represents the net assetvalue per unit as of the close of the business day less any back-end load, any duties, taxes, and charges onredemption, if applicable.

3.6 Element of income / (loss) and capital gains / (losses) included in prices of units sold less those in unitsredeemed

An equalisation account called the 'element of income / (loss) and capital gains / (losses) included in pricesof units sold less those in units repurchased' is created, in order to prevent the dilution of per unit incomeand distribution of income already paid out on redemption as dividend.

The Fund records the net element of accrued income / (loss) and realised capital gains / (losses) relating tounits issued and redeemed during an accounting period in the Income Statement while the portion of theelement of income / (loss) and capital gains / (losses) that relates to unrealised gains / (losses) held by theFund is recorded in a separate reserve account and any amount remaining in this reserve account at the endof an accounting period (whether gain or loss) is included in the amount available for distribution to the unitholders.

3.7 Provisions

A provision is recognised in the Statement of Assets and Liabilities when the Fund has a legal or constructiveobligation as a result of a past event, and it is probable that an outflow of economic benefits will be requiredto settle the obligation and a reliable estimate of the amount can be made.

3.8 Preliminary expenses and floatation costs

Preliminary expenses and floatation costs represent expenditure incurred prior to the commencement of



operations of the Fund and are being amortised over a period of five years commencing from September12, 2015 as per Trust Deed of the Fund.

3.9 Net asset value per unit

The net asset value per unit as disclosed in the Statement of Assets and Liabilities is calculated by dividingthe net assets of the Fund by the number of units in issue.

3.10 Earnings per unit

Earnings per unit (EPU) has not been disclosed as in the opinion of the management's determination ofweighted average units for calculating EPU is not practicable.

3.11 Taxation

Clause 99 of Part I of the Second Schedule to the Income Tax Ordinance, 2001 provides exemption fromtax to any income derived by a Mutual Fund, if not less than ninety percent of its accounting income of ayear as reduced by capital gains whether realize or unrealized is distributed among the unit holders.

3.12 Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount is reported in the Statement of Assets andLiabilities when there is a legally enforceable right to set off the recognised amounts and there is an intentionto settle on a net basis, or realise the assets and settle the liabilities simultaneously.

3.13 Revenue recognition

- Gains / (losses) arising on sale of investments are included in the Income Statement on the date at whichthe transaction takes place.

- Unrealised gains / (losses) arising on revaluation of securities classified as 'fair value through profit orloss' are included in the Income Statement in the period in which they arise.

- Gains / (losses) arising on revaluation of derivatives to fair value are taken to the Income Statement.

- Element of income / (loss) and capital gains / (losses) included in prices of units issued less those in unitsredeemed is included in the Income Statement on the date of issue and redemption of units.

- Dividend Income is recognised when the right to receive the dividend is established.

- Profit on bank deposit is recognized on time proportionate basis taking into account effective yield.

3.14 Expenses

All expenses including Management Fee and Trustee Fee are recognised in the Income Statement on anaccrual basis.

3.15 Cash and cash equivalents

Cash and cash equivalent comprises deposits maintained with banks and term deposit receipts. Cash andcash equivalents are short term highly liquid investments that are readily convertible to known amountsof cash, are subject to an insignificant risk of changes in value, and are held for the purpose of meetingshort term cash commitments rather than for investments and other purposes.



3.16 Dividend distribution and appropriations

Dividend distributions and appropriations are recorded in the period in which the distributions andappropriations are approved.

3.17 Standards, interpretations and amendments to approved accounting standards that are not yet effective

The following standards, amendments and interpretations with respect to the approved accounting standardsas applicable in Pakistan would be effective from the dates mentioned below against the respective standardor interpretation:

Standard, interpretation or amendment

IFRS 10 IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosureof Interests in Other Entities and IAS 27 Separate FinancialStatements – Investment Entities: Applying the ConsolidationException (Amendment)

IFRS 10 Consolidated Financial Statements and IAS 28 Investment inAssociates and Joint Ventures - Sale or Contribution of Assetsbetween an Investor and its Associate or Joint Venture(Amendment)

IFRS 11 Joint Arrangements - Accounting for Acquisition of Interest inJoint Operation (Amendment)

IAS 1 Presentation of Financial Statements - Disclosure Initiative(Amendment)

Effective date(accounting periods

beginning on or after)

January 01, 2016

Not yet finalized

January 01, 2016

January 01, 2016

Standard, interpretation or amendment

IAS 16 Property, Plant and Equipment and IAS 38 intangible assets -Clarification of Acceptable Method of Depreciation andAmortization (Amendment)

IAS 16 Property, Plant and Equipment IAS 41 Agriculture - Agriculture:Bearer Plants (Amendment)

IAS 27 Separate Financial Statements – Equity Method in SeparateFinancial Statements (Amendment)

Effective date(accounting periods

beginning on or after)

January 01, 2016

January 01, 2016

January 01, 2016



The above standards and amendments are not expected to have any material impact on the Fund's financialstatements in the period of initial application.

In addition to the above standards and amendments, improvements to various accounting standards havealso been issued by the IASB in September 2014. Such improvements are generally effective for accountingperiods beginning on or after January 01, 2016. The Fund expects that such improvements to the standardswill not have any material impact on the Fund's financial statements in the period of initial application.

Further, following new standards have been issued by IASB which are yet to be notified by the SECP for thepurpose of applicability in Pakistan.

Standard

IFRS 9 – Financial Instruments: Classification and Measurement

IFRS 14 – Regulatory Deferral Accounts

IFRS 15 – Revenue from Contracts with Customers

IFRS 16 – Leases

IASB Effective date (annualperiods beginning on or after)

January 01, 2018

January 01, 2016

January 01, 2018

January 01, 2019

4.1 This represents balances in deposit accounts with banks and carries interest rates ranging from 5.25% to6.25%.

5. INVESTMENTS

Financial asset at fair value through profit or loss - held-for-trading

Units of Mutual Funds - open ended 237,467,5175.1 287,268,510 226,345,226 751,081,253

4. BANK BALANCES

Deposit accounts 1,649,091

Note

4.1 2,038,927 1,197,579 4,885,597

------------------------------ (Rupees) ------------------------------

TotalModerateAllocation

Plan


Plan

ActiveAllocation

Plan

December 31, 2015



5.1 Units of Mutual Funds - open endedActive Allocation Plan

* These represent investments held in related parties i.e. funds under common management.

Particulars Totalinvestmenton the basis

of marketvalue

Net assetson the basis of market

value

Marketvalue as at December

31, 2015

Carryingamount as atDecember31, 2015

As atDecember31, 2015

Sold duringthe period

Purchasedduring theperiod

-------- (No. of Units) -------- --------- (Rupees) --------- ------------ (%) ------------



Alfalah GHP Alpha FundAlfalah GHP Stock FundAlfalah GHP Sovereign FundAlfalah GHP Money Market FundAlfalah GHP Income FundAlfalah GHP Islamic Income FundAlfalah AGHP Income Multiplier FundAlfalah GHP Islamic Stock Fund

635,230 440,643 761,677 127,208 648,271

98,571 1,446,798

510,292 4,668,690

- 24,312

488,201 97,500

295,405 -

911,104 -

1,816,522

635,230 416,331 273,476

29,708 352,866

98,571 535,694 510,292

2,852,168

43,503,009 50,549,070 28,771,488

3,035,997 38,121,822 10,000,000 27,786,703 32,000,000

233,768,089

44,212,008 51,340,065 29,120,600

3,080,506 38,573,688 10,104,888 28,167,497 32,868,265

237,467,517

19%22%12%1%

16%4%

12%14%

19%22%12%1%

16%4%

12%14%


of marketvalue


value


31, 2015







Alfalah GHP Alpha FundAlfalah GHP Stock FundAlfalah GHP Sovereign FundAlfalah GHP Money Market FundAlfalah GHP Income FundAlfalah AGHP Income Multiplier FundAlfalah GHP Islamic Stock Fund

360,072 228,400 627,976

2,250,515 490,931

1,204,686 399,604

5,562,184

100,894 126,080 294,559 987,313 202,786 443,086 111,156

2,265,874

259,178 102,320 333,417

1,263,202 288,145 761,600 288,448

3,296,310

17,750,398 12,376,029 35,085,135

129,211,235 31,135,502 39,546,942 18,068,479

283,173,720

18,038,789 12,617,642 35,503,309

130,984,952 31,498,686 40,045,994 18,579,138

287,268,510

6%4%12%45%11%14%6%

6%4%12%46%11%14%6%


of marketvalue


value


31, 2015







Alfalah GHP Alpha FundAlfalah GHP Stock FundAlfalah GHP Sovereign FundAlfalah GHP Money Market FundAlfalah GHP Income FundAlfalah GHP Islamic Income FundAlfalah AGHP Income Multiplier FundAlfalah GHP Islamic Stock Fund

374,873 229,364 612,622 312,731 250,200

98,571 1,143,545

396,255 3,418,161

- -

166,479 277,759

13,808 -

14,482 -

472,528

374,873 229,364 446,143

34,972 236,392

98,571 1,129,063

396,255 2,945,633

25,626,210 27,750,496 47,006,854

3,590,106 25,511,248 10,000,000 58,750,393 25,000,000

223,235,307

26,091,161 28,284,136 47,506,748

3,626,345 25,841,286 10,104,888 59,367,600 25,523,062

226,345,226

11%12%20%1%

10%4%

24%10%

3.46%3.77%6.33%0.48%3.44%1.35%7.90%3.40%



6. DEFERRED FORMATION COST

Formation cost incurred Amortised to the income statement during the periodUnamortised cost at the end of the period

123,896 (9,747)

114,149

Note

3,253,224 (194,751)

3,058,473

1,033,056 (63,423) 969,633

4,410,176 (267,921)

4,142,255

------------------------ (Rupees) ------------------------


Plan


Plan

ActiveAllocation

Plan

December 31, 2015

This represents expenses incurred on the formation of the Fund. The offering document of the Fund, approvedby the Securities and Exchange Commission of Pakistan, permits the deferral of the cost over a period notexceeding five years. Accordingly the said expenses are being amortised over a period of five years effectivefrom September 12, 2015, i.e. after the end of initial period of the Fund. Formation cost is divided amongstthe allocation plans according to the ratios of their Pre-IPO investments.

7. PAYABLE TO MANAGEMENT COMPANY

Remuneration payable to the Management CompanySales tax payable on management feeFederal excise duty on management feeFormation cost payableSales load and federal excise duty payable thereonOther payables

60 79

513 123,896 213,284

38,333 376,165

12

12

1,240 430

1,896 3,253,224

245,764 38,333

3,540,887

1,909 780

3,626 1,033,056

165,933 38,333

1,243,637

3,209 1,289 6,035

4,410,176 624,981 114,999

5,160,689

7.1 The Management Company is entitled to remuneration for services rendered to the Fund under the provisionsof the Non-Banking Finance Companies and Notified Entities Regulations, 2008, of an amount not exceedingone percent per annum during the life of the Fund. Further, as per the requirement of NBFC regulations, themanagement company shall not charge any fee if the Fund makes investment in the Collective investmentSchemes (CIS) managed by the same management company. During the period, the Fund has mainly investedin the CIS managed by the same Management Company, resulting in a very nominal amount of fee chargedon account of management fee.

8. REMUNERATION PAYABLE TO THE TRUSTEE

The Trustee is entitled to a monthly remuneration for services rendered to the Fund under the provisionsof the Trust Deed, calculated at the rate 0.1% per annum of the daily average net assets of the Fund.Remuneration to the Trustee has been calculated after the end of initial period (i.e. September 12, 2015).

9. ANNUAL FEE PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN (SECP)

This represents annual fee payable to Securities and Exchange Commission of Pakistan (SECP) in accordancewith Regulation 62 of the NBFC Regulations, 2008, whereby the Fund is required to pay SECP an amount atthe rate of 0.075% of the average daily net assets of the Fund. Annual fee to the SECP has been calculatedafter the end of initial period (i.e. September 12, 2015).



11. CONTINGENCIES AND COMMITMENTS

There are no contingencies and commitments as at December 31, 2015.

12. FEDERAL EXCISE DUTY ON MANAGEMENT REMUNERATION

As per the requirements of the Finance Act 2013, Federal Excise Duty (FED) at the rate of 16% on the servicesof the Management Company has been applied effective June 13, 2013. The Management Company is ofthe view that since the remuneration is already subject to provincial sales tax, further levy of FED results indouble taxation, does not appear to be the spirit of the law. The matter has been collectively taken up bythe Management Company jointly with other Asset Management Companies and Central Depository Companyof Pakistan Limited on behalf of schemes through a constitutional petition filed in the Honourable Sindh HighCourt (SHC) during September 2013 which is pending adjudication. However, the SHC has issued a stay orderagainst the recovery of FED. The Fund, as a matter of abundant caution, has charged FED and sales taxthereon in these interim financial statements.

14. TAXATION

The income of the Fund is exempt from income tax under Clause (99) of Part 1 of the Second Schedule tothe Income Tax Ordinance, 2001 (Clause 99) subject to the condition that not less than 90 percent of theaccounting income for the year, as reduced by capital gains, whether realized or unrealized, is distributed amongst the unit holders. The Management Company intends to distribute in cash not less than 90 percentof its annual accounting income to avail the tax exemption. Accordingly, no provision for current and deferredtax has been made in these financial statements.

15. TRANSACTIONS WITH RELATED PARTIES / CONNECTED PERSONS

Connected persons / related parties include Alfalah GHP Investment Management Limited being the

13. AUDITORS' REMUNERATION

Audit fee Other certification and services

Sales taxOut of pocket expenses

29,172 3,689

32,861 1,641

- 34,502

35,507 4,470

39,977 1,998 -

41,975

27,733 3,519

31,252 1,560 -

32,812

92,412 11,678

104,090 5,199 -

109,289

------------------------ (Rupees) ------------------------


Plan


Plan

ActiveAllocation

Plan

December 31, 2015

10.ACCRUED AND OTHER LIABILITIES

Rating fee payablePrinting charges payableAuditors' remunerationWithholding tax

30,002 16,707 34,502

334,163 415,374

Note

36,500 16,018 41,975

330,550 425,043

28,533 18,181 32,812

- 79,526

95,035 50,906

109,289 664,713 919,943

------------------------ (Rupees) ------------------------


Plan


Plan

ActiveAllocation

Plan

December 31, 2015



Management Company, GHP Arbitrium AG, Bank Alfalah Limited and MAB Investment Incorporated beingassociated companies of Management Company, directors and key management personnel of Alfalah GHPInvestment Management Limited and MCB Financial Services Limited (MCBFSL) being the trustee of theFund, and other associated companies and connected persons. The transactions with connected personsare in the normal course of business and at contractual rates.

Remuneration payable to the Management Company and the Trustee are determined in accordance withthe provisions of Non-Banking Finance Companies and Notified Entities Regulations, 2008, and the TrustDeed respectively.

15.1 Details of transactions and balances at period end with related parties / connected persons, other thanthose which have been disclosed elsewhere in these financial statements, are as follows:

Associated companies / undertakings

Alfalah GHP Investment Management Limited - Management Company

Remuneration of the Management CompanySales tax on management feeFederal excise duty on management feeFormation cost payableSales load payableOther payables

Amount paid during the periodBalance at the end of the period

Bank Alfalah LimitedDeposits at the end of the periodProfit on deposit accounts for the periodProfit receivable at the end of the periodBank charges for the period

Other Related Parties

MCB Financial Services Limited

Remuneration of the TrusteeSales tax on Trustee fee

Amount paid during the periodBalance at the end of the period

3,208 520 513

123,896 213,284

38,333 379,754

3,589 376,165

1,649,091 104,440 104,440

-

67,876 9,500

77,376

53,747 23,629

11,364 1,848 1,827

3,253,224 245,764

38,333 3,552,360

11,542 3,540,818

2,038,927 525,042

16,790 5,723

96,559 13,513

110,072

82,149 27,923

22,638 3,682 3,626

1,033,056 165,933

38,333 1,267,268

23,631 1,243,637

1,197,579 221,534

15,310 3,980

51,841 7,259

59,100

39,514 19,586

37,210 6,050 5,966

4,410,176 624,981 114,999

5,199,382

38,762 5,160,620

4,885,597 851,016 136,540

9,703

216,276 30,272

246,548

175,410 71,138

------------------------ (Rupees) ------------------------


Plan


Plan

ActiveAllocation

Plan

December 31, 2015



15.2 Unit Holders' Fund

Active Allocation Plan:

Associated companies / undertakingsBank Alfalah Limited - Employees Gratuity Fund Trust

Bank Alfalah Limited - Employees Provident Fund

Unit holder holding 10% or more UnitsThe Nishat Mills Limited Employees Provident FundPakistan State Oil Company Limited Employees Provident Fund

-------------------------- (Units) --------------------------

Issued for cash /

conversion in/ transfer in

Redeemed /conversion

out / transferout

Bonus

493,558

987,117

300,000

248,515

-

-

-

-

-

-

-

-

50,314,278

100,628,556

30,582,570

25,334,079

-

-

-

-

493,558

987,117

300,000

248,515

-

-

-

-

50,000,000

100,000,000

30,000,000

25,000,000

-

-

-

-

As atSeptember

12, 2015


-------------------------- (Rupees) --------------------------

As atSeptember

12, 2015

Issued for cash /


Bonus Redeemed /conversion

out / transferout

-

-

-

-


For the period from September 12, 2015 to December 31, 2015

Moderate Allocation Plan:

Unit holder holding 10% or more UnitsLahore University of Management Sciences (LUMS)Lahore University of Management Sciences (LUMS)Archroma Pakistan Limited - Employees Gratuity FundAsad Ullah KhanMuller & Phipps Pakistan (Pvt) Ltd. Staff Provident Fund

-------------------------- (Units) --------------------------

Issued for cash /



out / transferout

Bonus

379,565 219,748 395,292 246,712 310,704

- - - - -

- - - - -

38,676,907 22,391,893 40,279,552 25,139,441 31,660,119

- - - - -

379,565 219,748 395,292 246,712 310,704

- - - - -

37,956,455 21,974,790 40,047,945 25,000,000 31,135,465

- - - - -

As atSeptember

12, 2015


-------------------------- (Rupees) --------------------------

As atSeptember

12, 2015

Issued for cash /



out / transferout

- - - - -



Conservative Allocation Plan:

Associated Companies / UndertakingsAlfalah GHP Investment Management Limited

Unit holder holding 10% or more UnitsSyed Babar AliSyed Tariq SohailMedicare Pakistan (Pvt.) LimitedJinnah Medical & Dental College (SMST)Muhammad Sharif

-------------------------- (Units) --------------------------

Issued for cash /



out / transferout

Bonus

29,089

1,281,096 852,481 437,289 350,079 490,815

-

- - - - -

-

- - - - -

2,960,637

- 86,764,585 44,506,786 35,630,624 49,954,598

-

1,281,096 - - - -

29,089

- 852,481 437,289 350,079 490,815

-

- - - - -

2,908,891

128,109,589 85,807,486 44,016,129 35,237,820 50,000,000

-

- - - - -

As atSeptember

12, 2015


-------------------------- (Rupees) --------------------------

As atSeptember

12, 2015

Issued for cash /



out / transferout

-

129,547,747 - - - -





Active Allocation Plan:

Associated companies / undertakingsBank Alfalah Limited - Employees Gratuity Fund Trust

Bank Alfalah Limited - Employees Provident Fund

Unit holder holding 10% or more UnitsThe Nishat Mills Limited Employees Provident FundPakistan State Oil Company Limited Employees Provident Fund

-------------------------- (Units) --------------------------

Issued for cash /



out / transferout

Bonus

-

-

-

248,515

-

-

-

-

49,389,103

98,778,205

30,000,000

-

50,314,278

100,628,556

30,582,570

25,334,079

-

-

-

-

493,558

987,117

300,000

248,515

-

-

-

-

-

-

-

25,000,000

493,558

987,117

300,000

-

As atOctober01, 2015


-------------------------- (Rupees) --------------------------


Issued for cash /



out / transferout

-

-

-

-



Conservative Allocation Plan:

Associated Companies / UndertakingsAlfalah GHP Investment Management Limited

Unit holder holding 10% or more UnitsSyed Babar AliSyed Tariq SohailMedicare Pakistan (Pvt.) LimitedJinnah Medical & Dental College (SMST)Muhammad Sharif

-------------------------- (Units) --------------------------

Issued for cash /



out / transferout

Bonus

-

1,096 881

- -

490,815

-

- - - - -

2,915,698

128,299,520 85,359,313 43,831,218 35,089,787

-

2,960,637

- 86,764,585

44,506,786 35,630,624 49,954,598

-

1,281,096 - - - -

29,089

- 852,481

437,289 350,079 490,815

-

- - - - -

-

109,589 88,068

- -

50,000,000

29,089

1,280,000 851,600 437,289 350,079

-



-------------------------- (Rupees) --------------------------


Issued for cash /



out / transferout

-

129,547,747 - - - -



Moderate Allocation Plan:

Unit holder holding 10% or more UnitsLahore University of Management Sciences (LUMS)Lahore University of Management Sciences (LUMS)Archroma Pakistan Limited - Employees Gratuity FundAsad Ullah KhanMuller & Phipps Pakistan (Pvt) Ltd. Staff Provident Fund

-------------------------- (Units) --------------------------

Issued for cash /



out / transferout

Bonus

778 451 479

246,712 310,704

- - - - -

37,938,243 21,964,246 39,543,446

- -

38,676,907 22,391,893 40,279,552 25,139,441 31,660,119

- - - - -

379,564 219,748 395,292 246,712 310,704

- - - - -

77,833 45,061 47,945

25,000,000 31,135,465

378,786 219,297 394,813

- -



-------------------------- (Rupees) --------------------------


Issued for cash /



out / transferout

- - - - -





16. FINANCIAL RISK MANAGEMENT

The Fund’s objective in managing risk is the creation and protection of unit holders’ value. Risk is inherentin the Fund’s activities, but it is managed through monitoring and controlling activities which are based onlimits established by the Management Company, Fund's constitutive documents and the regulations anddirectives of the SECP. These limits reflect the business strategy and market environment of the Fund aswell as the level of the risk that Fund is willing to accept. The Board of Directors of the ManagementCompany supervises the overall risk management approach within the Fund.

The Fund's risk management policies are established to identify and analyse the risk faced by the Fund, toset appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk managementpolicies and systems are reviewed by Board of Directors and audit committee regularly to reflect changesin market conditions and the Fund's activities.

The management of these risks are carried out by the Investment Committee (IC) under policies approvedby the Board of Directors of the Management Company. The IC is constituted and approved by the Boardof Directors of the Management Company. Investment committee is responsible to devise the investmentstrategy and manage the investment portfolio of the Fund in accordance with limits prescribed in the NonBanking Finance Companies and Notified Entities Regulations, 2008, offering document of the Fund inaddition to Fund's internal risk management policies.

The Fund primarily invests in a mix of equity and sovereign income / money market funds. The Fund mayalso invest in other equity and sovereign income / money market funds available to it. Such investmentsare subject to varying degrees of risk. These risks emanate from various factors that include, but are notlimited to credit risk, liquidity risk, market risk and operational risk.

16.1 Credit risk

Credit risk arises from the inability of the issuers of the instruments, the relevant financial institutions orcounter parties to fulfil their obligations. There is a possibility of default of issuers of the instrument,financial institutions or counter parties.

Management of credit risk

The Fund’s policy is to enter into financial contracts with reputable counterparties in accordance with theinternal risk management policies and investment guidelines approved by the Board of Directors. TheInvestment Committee closely monitors the creditworthiness of the Fund’s counterparties (e.g., issuer ofthe instruments, brokers, banks, etc.) by reviewing their credit ratings, financial statements and pressreleases on a regular basis. In addition the credit risk is also minimized due to the fact that the Fund onlyinvests in liquid equity and money market based collective investment schemes (CIS).

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposureto credit risk at the reporting date is as follows:



Differences in the balances as per the statement of assets and liabilities and maximum exposures is dueto deferred formation cost amounting to Rs.0.76 million which do not carry credit risk.

Past due or impaired financial assets

None of the financial assets are considered to be past due or impaired as at December 31, 2015.

Concentration of the credit risk

Concentration of credit risk exists when changes in economic or industry factors similarly affect groups ofcounterparties whose aggregate credit exposure is significant in relation to the Fund’s total credit exposure.

98.79% of the financial assets aggregating to Rs.751.081 million are invested in funds managed by themanagement company. The management company believes that underlying assets held by these funds aresufficiently diverse and therefore do not expose the Fund to any major concentration risk.

Details of the credit ratings of the investment and bank balances are as follows:

------------------------ (Rupees) ------------------------


Plan


Plan

ActiveAllocation

Plan

December 31, 2015

Bank balancesInvestments - Units of mutual fundsMark-up receivable

1,649,091 237,467,517

104,440 239,221,048

2,038,927 287,268,510

16,790 289,324,227

1,197,579 226,345,226

15,310 227,558,115

4,885,597 751,081,253

136,540 756,103,390

December 31, 2015

15.88%26.23%20.99%1.60%24.02%11.28%100%

- - - - -

100%100%

15.50%17.00%14.90%18.30%24.04%10.25%100%

- - - - -

100%100%

- - - - -

100%100%

10.96%13.94%12.36%45.60%10.96%6.47%100%

- - - - -

100%100%

20.50%11.86%12.26%1.30%40.24%13.84%100%

A+ (f)A- (f)AA- (f)AA (f)4 star3 star

Investmentin mutualfund units

Bankbalances


Bankbalances


Bankbalances


Bankbalances

---------------------------------------------------- % ----------------------------------------------------

Active AllocationPlan

ConservativeAllocation Plan

ModerateAllocation Plan Total



16.2 Liquidity risk

Liquidity risk is the risk that the Fund will encounter difficulty in meeting obligations arising from its financialliabilities that are settled by delivering cash or another financial asset, or that such obligations will haveto be settled in a manner disadvantageous to the Fund.

Management of liquidity risk

The Fund's policy is to manage this risk by investing its assets in units issued by collective investmentschemes (CIS) that are redeemable on demand as per terms of there offering document.

The Fund has ability to borrow, with prior approval of trustee, for meeting redemption. The maximumamount available to the Fund from borrowings is limited to the extent of 15% of total assets at the timeof borrowing with repayment within 90 days of such borrowings. No such borrowings have arisen duringthe period.

Maturity analysis for financial liabilities

The table below analyse the Fund's financial liabilities into relevant maturity groupings based on theremaining period from the statement of assets and liabilities date to the contractual maturity date. Theamounts in the table are the contractual undiscounted cash flows.

The maturity profile of the Fund's liabilities based on contractual maturities is given below:

------------------------ (Rupees) ------------------------

Contractualcash flows

and carryingamount

December 31, 2015

Financial liabilities

Active Allocation PlanPayable to the Management CompanyPayable to the TrusteeAccrued and other liabilities

Conservative Allocation PlanPayable to the Management CompanyPayable to the TrusteeAccrued and other liabilities

Moderate Allocation PlanPayable to the Management CompanyPayable to the TrusteeAccrued and other liabilities

375,573 67,876 51,209

494,658

3,538,561 96,559 57,993

3,693,113

4,616,351 51,841 50,993

4,719,185

251,677 67,876 34,502

354,055

285,337 96,559 41,975

423,871

206,175 51,841 32,812

290,828

- -

16,707 16,707

- -

16,018 16,018

- -

18,181 18,181

123,896 - -

123,896

3,253,224 - -

3,253,224

4,410,176 - -

4,410,176

8 days toone months

Later than onemonth and not

later thanthree months

Later thanthree monthsand not laterthan one year



Above financial liabilities do not carry any mark-up.

The Fund is exposed to cash redemptions of its units on a regular basis. Units are redeemable at the holder’soption based on the Fund’s net asset value per unit at the time of redemption calculated in accordancewith the Fund’s constitutive document and guidelines laid down by Securities and Exchange Commissionof Pakistan (SECP).

As per offering document, the Fund is allowed to withhold daily redemption request in excess of ten percentof the units in issue and such requests are be treated as redemption request qualifying for being processedon the next business day. Such procedure is continued until the outstanding redemption requests comedown to a level below ten percent of the units then in issue. The Fund may also suspend the redemptionof the units if the redemption request exceed 10% of unit in issue with prior approval of the trustees andnotification to SECP.

16.3 Market risk

Market risk is the risk that the value of the financial instrument may fluctuate as a result of changes inmarket interest rates or the market price of securities due to a change in credit rating of the issuer or theinstrument, change in market sentiments, speculative activities, supply and demand of securities andliquidity in the market. Market risk comprises of three types of risk: currency risk, interest rate risk andother price risk (equity price risk).

Management of market risk

The Management Company manages market risk by monitoring exposure on marketable securities byfollowing the internal risk management policies and investment guidelines approved by the Board ofDirectors and regulations laid down by the SECP.

Currency risk

Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuatebecause of change in foreign exchange rates. The Fund, at present, is not exposed to currency risk as alltransactions are carried out in Pak Rupees.

Interest rate risk

Interest rate risk arises from the effects of fluctuations in the prevailing levels of market interest rates onthe fair value of financial instrument and future cash flows. The Fund has no significant interest bearingassets so the Fund's income and operating cash flows are substantially independent of changes in marketinterest rates.

As at June 30, 2015, details of interest rate profile of the Fund's interest bearing financial instruments wereas follows:

------------------------ (Rupees) ------------------------


Plan


Plan

ActiveAllocation

Plan

December 31, 2015

Variable rate instrumentsBank balances - saving accounts

Fixed rate instruments

1,649,091

-

2,038,927

-

1,197,579

-

4,885,597

-



Presently, the Fund does not hold any fixed rate instruments.

The Management Company monitors the interest rates of investment portfolio on a regular basis and altersthe portfolio mix of fixed rate securities to manage the profitability of the portfolio. The composition ofthe Fund's investment portfolio is expected to change over time.

Cash flow sensitivity analysis for variable rate instruments

Change of 100 basis points in interest rate at the period end would be increased / (decreased) the net assetsand net income by Rs.0.004 million. However, the Fund invest in funds which expose to interest rate riskand which indirectly affect the interest rate risk of the Fund. The analysis assumes that all other variablesremain constant.

The composition of the Fund's investment portfolio and rates announced is expected to change over time.Accordingly, the sensitivity analysis prepared as of June 30, 2015 is not necessarily indicative of the effecton Fund's net assets of future movements in interest rates.

A summary of the Fund's interest rate gap position, categorized by maturity date, is as follows:

None of the Fund's liability is subject to interest rate risk.

------------------------ (Rupees) ------------------------

TotalLess thanthree months

December 31, 2015

On-balance sheet financial instruments

Active Allocation Plan Financial assetsBank balances

Conservative Allocation Plan Financial assetsBank balances

Moderate Allocation Plan Financial assetsBank balances

1,649,091 1,649,091

2,038,927 2,038,927

1,197,579 1,197,579

- -

- -

- -

1,649,091 1,649,091

2,038,927 2,038,927

1,197,579 1,197,579

5.25% - 6.25%

5.25% - 6.25%

5.25% - 6.25%

Effectiverate of

mark-up /return (%)

- -

- -

- -

Upto threemonths

More thanthree monthsand upto one

year

Exposed to yield / interest rate risk

Other price risk

Other price risk is the risk that the fair value of the financial instrument will fluctuate as a result of changesin market prices (other than those arising from interest rate risk or currency risk), whether caused by factorsspecific to an individual investment, its issuer or factors affecting all instruments traded in the market. TheFund manages its exposure to price risk by investing in funds as per the trust deed.



16.4 Unit Holders' Fund risk management

The Fund's objective when managing net assets attributable to unit holders is to safe guard the Fund's abilityto continue as going concern so that it can continue to provide optimum returns to its unit holders and to ensurereasonable safety of Unit Holders' Fund. In order to maintain or adjust the capital structure, the Fund policy isto perform the following:

- Monitor the level of daily issuance and redemptions relative to liquid assets;

- Redeem and issue unit in accordance with the constitutive documents of the Fund, which include the abilityto restrict redemptions as allowed under rules and regulations; and

- Monitor portfolio allocations and return on net assets and where required make necessary adjustments inportfolio allocations in light of changes in market conditions.

The Fund Manager / Investment Committee members and the Chief Executive of the company critically monitorcapital of the Fund on the basis of the value of net assets attributable to the unit holders and track the movementof "Assets under Management" as well returns earned on the net assets to maintain investors confidence andachieve future growth in business. Further the Board of Directors is updated about the Fund yield and movementof NAV and total size at the end of each quarter.

16.5 Fair value of financial instruments

Fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transactionbetween market participants at the measurement date.

Financial assets which are tradable in an open market are revalued at the market prices prevailing on thestatement of assets and liabilities date. The estimated fair value of all other financial assets and liabilities isconsidered not significantly different from book value.

The following table shows financial instruments recognised at fair value, analysed between those whose fairvalue is based on:

Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assetsor liabilities.

Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that areobservable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Fair value measurements using inputs for the asset or liability that are not based on observablemarket data (i.e. unobservable inputs).

The table below analyse financial instruments measured at the end of the reporting period by the level in thefair value hierarchy into which the fair value measurement is categorised:

Active Allocation Plan

Financial assets classified as 'at fair value through profit or loss' - held-for-tradingMutual Fund units - open ended

Level 1

- -

237,467,517 237,467,517

- -

237,467,517 237,467,517

---------------------------- (Rupees) ----------------------------

December 31, 2015Level 2 Level 3 Total



During the period ended December 31, 2015, there were no transfers between level 1 and level 2 fairvalue measurements, and no transfers into and out of level 3 fair value measurements.

17. DATE OF AUTHORISATION FOR ISSUE

These financial statements were authorised for issue by Board of Directors of the Management Companyon February 25, 2016.

18. GENERAL

18.1 Figures for the quarters ended December 31, 2015 as reported in these condensed interim financialstatements have not been subject to limited scope review by the external auditors.

18.2 Being the first accounting period of the Fund, there are no corresponding figures to report.

18.3 Figures are rounded off to the nearest rupee.


Chief Executive Officer Director



Level 1

- -

287,268,510 287,268,510

- -

287,268,510 287,268,510

---------------------------- (Rupees) ----------------------------




Level 1

- -

226,345,226 226,345,226

- -

226,345,226 226,345,226

---------------------------- (Rupees) ----------------------------


Documents

Alfalah GHP Prosperity Planning · PDF fileAlfalah GHP Prosperity Planning Fund ... The Board of Directors of Alfalah GHP Investment Management Limited is pleased to ... and was aimed