Islamic Savings Growth Fund - Faysal · PDF fileFaysal Bank Limited - Islamic Banking Deloitte...

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Condensed Interim Financial Information for the Nine Months & Quarter Ended March 31, 2017 Islamic Savings Growth Fund

Transcript of Islamic Savings Growth Fund - Faysal · PDF fileFaysal Bank Limited - Islamic Banking Deloitte...

Condensed Interim Financial Information for theNine Months & Quarter EndedMarch 31, 2017

Islamic Savings Growth Fund

Faysal Islamic Savings Growth Fund

Fund Information

Mission Statement

Report of the Directors of the Management Company

Condensed Interim Statement of Assets and Liabilities

Condensed Interim Income Statement

Condensed Interim Distribution Statement

Condensed Interim Cash Flow Statement

Condensed Interim Statement of Movement in Unit Holders’ Fund

Notes to the Condensed Interim Financial Information

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05

06

10

11

12

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14

15

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National Bank - Islamic BankingDubai Islamic Bank Pakistan LimitedAl-Baraka Bank LimitedBurj Bank LimitedUBL Ameen - Islamic BankingBank Islami Pakistan LimitedFaysal Bank Limited - Islamic Banking

Deloitte Yousuf Adil, Chartered Accountants

4

Faysal Asset Management Limited

Mr. Nauman Ansari, ChairmanMr. Osman Khan, DirectorSyed Ibad-Ur-Rehman Chishti, DirectorMr. Mohammad Zahid Ahmed, DirectorMr. Razi-Ur-Rahman Khan, Director/CEO

Mr. Naved Hanif

Mr. Osman Khan, ChairmanSyed Ibad-ur-Rehman Chisti, Member

Chief Financial Officerand Company Secretary of theManagement Company

Mr. Osman Khan, ChairmanSyed Ibad-Ur-Rehman Chishti, MemberMr. Razi-Ur-Rahman Khan, Member

HR Comittee

Current account deficit increased to $ 5.5 billion in Jul-Feb FY17, which was largely due to a sizable increase in imports of capital goods, along with delayed receipts of Coalition Support Fund (CSF). The rise in overall import payments was mainly driven by increased purchases and higher prices of fuel. However, there was significant increase in capital goods imports, which will lead the economy to a higher growth path. Till March 31 2017, Pakistan’s total liquid foreign exchange reserves amounted to $21.550 billion for the period ended March 31, 2017. Forex reserves held by the State Bank of Pakistan (SBP) stood at $16.466 billion, while the net foreign exchange reserves held by commercial banks equaled at $5.084 billion.

However, the external front constraints pose immense risk to country’s long term sustainable growth evident from the monthly import bill that crossed $5 billion for the first time in March, which took the nine-month trade deficit to $23.4 billion – also a new record. The gap between imports and exports stood at $23.38 billion in the July-March period of current fiscal year, which was 38.8% or $6.53 billion more than the comparative period of previous year. The main reason behind the ballooning deficit was constant double-digit growth in imports and contraction in exports. The nine-month trade gap was $2.9 billion more than the fiscal year’s annual deficit target of $20.5 billion, set by the Ministry of Finance. Exports fell 3.1% to only $15.1 billion during July-March 2016-17, which were $478 million less than the shipments made in the comparative period of last year. Imports, however, increased 18.7% to $38.5 billion in the same period. In absolute terms, the import bill was $6.6 billion higher than the previous year.

Remittances play a major role in stabilizing Pakistan’s external sector, as they make up almost half the import bill and cover the deficit in the trade of goods account. Nevertheless, in recent times, they have come under pressure due to global economic slowdown on the back of low crude oil prices. Overseas Pakistani workers sent remittances amounting to $1.69 billion in March, an increase of 19% from February when it stood at $1.42 billion. However, cumulatively, the figure fails to convey the whole picture as remittances during the first nine months (July-March) of the current fiscal year declined to $14.06 billion from $14.39 billion in the same period of previous fiscal year – a fall of 2.29%.

Analysts have warned that the country’s foreign reserves might deplete fast in the coming months unless its policymakers take serious steps in increasing exports on sustainable basis. However, the SBP is confident that the country faces no immediate threat from the slowdown in remittances and it is in a much better position to repay debts in the next four to five years.

All in all, Pakistan has entered into a new era of development whereby overseas investors have acknowledged it as land of unlimited opportunities offering investment friendly environment in diverse sectors as prided by board of Investment (BOI) achieving $ 1.3 billion foreign investment target set for first three quarters of current fiscal year. Consequently, despite constraints on country’s balance of payments position, improvements in investors’ confidence as reflected in an uptick in private sector credit, especially for fixed investment purposes; foreign interests in Pakistani companies; and increased production of consumer durables are indeed laudable. Similarly, a surge in import of machinery and raw materials also points to a robust industrial activity and buildup of future productive capacity. The fact that Pakistan is growing and enjoys the trust of the lender agencies will go on to act as a catalyst in redoubling its successes in the years to come.

MONEY MARKET REVIEW

SBP announced 5 MPS – Monetary Policy Statements during 09MFY17 and in all five MPS

announcements SBP maintained status quo policy rate at 5.75% given the continuously expanding fiscal deficit, rapidly declining exports, decline in remittance inflows and improvement in inflation outlook on the back of improved prices of perishables- (food items) and real estate. Central bank has maintained the discount rate since May 2016, which is at its lowest level in four decades. SBP’s prudent monetary policy stance has translated well into low and stable interest rates, which incentivized private sector to borrow from commercial banks to finance their businesses and investment activities.

Accordingly, private sector credit increased to PKR 349 billion during July 2016 to February 2017 as compared to PKR 267 billion in the same period last year. Improved interbank liquidity conditions also spurred growth in private sector credit. This was led by both net government retirement [of budgetary loans] to commercial banks and a decent increase in bank deposits compared to the withdrawals seen last year.

Furthermore, interbank liquidity has been managed well with calibrated open market operations that allow the central bank to inject liquidity in banks when required or suck the excessive liquidity by buying/selling government securities.

During the period Jul’16 – Mar’17 money market continued to remain illiquid and SBP conducted numerous OMO – Injections where the total injected amount was PKR 40,111.30bn and the total participation amount was PKR 41,887.65bn. The weighted average rate of the injected amount during the 09MFY17 was 5.81%. During the period under discussion four OMO - Mop up were conducted at the weighted average rate of 5.66% and realized amount was PKR 354.45bn against the participation of PKR 495.65bn.

SBP conducted 20 T-bill auctions in the 09MFY17 where the total accepted amount was PKR 5,555.82bn where the total stipulated target of SBP was PKR 5,300bn and the cuts offs were raised over the said period and the last auction cut-offs were; 3M – 5.9910%, 6M – 5.9934% and 12M – rejected relative to 3M – 5.9017%, 6M – 5.9250% and 12M – 5.9590% at the start of the period.

Similarly, during the 09MFY17 under review, nine PIB auctions were conducted where SBP accepted bids worth PKR 777.97bn against total target of PKR 1,650bn. The major focus was 3yr followed by 5yr and 10yr by market participants. Moreover, this suit convinced various investors foresee SBP unwillingness to borrow at higher levels, given excess amount borrowed from T-bills. During said period Pakistan’s macro framework further improved as reaffirmed in Oct-16 by more important announcement by S&P to upgrade Pakistan’s rating from B- to B with a stable outlook. S&P’s rating upgrade came on the back of first ever successful conclusion of any IMF program by Pakistan and significant progress on US$62bn investment pack under China Pakistan Economic Corridor.

Moody's, a globally recognized credit rating agency has said that the Pakistani economy has strengthened following the completion of a three-year program under International Monetary Fund (IMF). The agency went on to explain that the fiscal deficit has narrowed, while growth has been observed in the foreign exchange and structural reforms planned out earlier. It also asset that nation's economy is forecasted to register a 5% expansion rate over the coming two years.

In a major bid to boost Islamic Finance, the government is actively considering to transform the National Savings Scheme (NSS) into Shariah mode of financing with an aim to help depositors invest into Islamic Shariah-compliant Ijara sukuk. Accordingly, the pros and cons of the project is under review on its specifics like the price of the retail Ijara sukuk, its size, duration, maturity period and the mode of encashment during and at completion of the maturity period. NSS management has recommended to the Ministry of Finance to extend Ijara sukuk to the NSS into

The Board of Directors of the Faysal Asset Management Limited, the management company of the Faysal Islamic Savings Growth Fund (FISGF), is pleased to present the un-audited condensed interim financial information of FISGF for the nine months and quarter ended March 31, 2017.

FINANCIAL HIGHLIGHTS

ECONOMIC REVIEW

Pakistan's economy is out of the woods. It is now on a winning streak. Irrespective of inherent weaknesses, its private and public sectors have made great strides. Our country’s economy has strengthened following successful completion of its three-year program with International Monetary Fund (IMF) where the economy is expected to grow by 5% over the next two years because of China Pakistan Economic Corridor (CPEC) projects as infrastructure gaps may reduce through increased investment in transportation and power. This is quite a healthy trend, keeping in view the economic turmoil on an international stage since 2008. In terms of purchasing power, Pakistan's economy is ranked 24th in the world. Its 200 million population, with an enterprising youth, are the decisive factors for social mobility, growth and productivity.

At the macro-economic level, Pakistan has made immense progress irrespective of bottlenecks. Inflow of capital in the last few years has helped in the development of infrastructure, especially in the sectors of health, education and civic amenities. Average CPI-based inflation in three quarters of the current fiscal year (July-March) increased 4.01% compared to 2.64% the same period of previous year reflecting higher domestic demand and increase in global commodity prices. The large scale manufacturing (LSM) sector continues to grow at 3.5% with increase in production of cement, steel, pharmaceuticals, automobiles, paper & board and electronics.

FBR had collected PKR 2258 billion during July-March of the current fiscal year. the FBR is facing shortfall due to the pro growth incentives offered to various sectors of the economy particularly exports and agriculture; major item of revenue gap amounting to PKR 100 billion was due to not passing the full impact of the POL prices to the common man. Pakistan has also revised the budget deficit target to 4.1% of the GDP from budgetary estimates of 3.8% of the GDP due to lower tax collection and soaring expenditures.

Total Income

Operating Expenses

Profit Before Tax

Taxation

Profit After Tax

NAV per unit (Rs. Per unit)

27.680.43

28.11-

28.11108.93

21.63

(4.21)

17.42

-

17.42

112.73

60.18(19.64)

40.54-

40.54108.93

55.88

(12.32)

43.56

-

43.56

112.73

Quarter Ended March 31

2017 20162017 2016

Nine Months EndedMarch 31

for retail investors. It is also expected that this new scheme of Islamic financing is bound to increase cash inflows in to the government kitty which ultimately reduce the burden on the banking sector of the huge bank borrowing by the government to meet its financial and slippage of budgetary receipts. The regulatory authorities are actively considering reforms for rationalizing the existing tax problems related to Sukuk and Reits to encourage and boost the confidence of the investors in the Shariah based financing in Pakistan. While Pakistan is the world’s second most populous Muslim nation, its Islamic finance sector is struggling to gain market share from conventional peers despite double digit growth. The sector includes five full-fledged Islamic banks and 16 conventional banks offering Islamic financial products, which held a combined PKR 1.85 trillion ($17.7 billion) of total banking assets as of December, reflecting an annual growth rate of 15.1%.This gave Islamic finance a market share of 11.7% of total banking assets versus the 11.4% the sector held a year earlier.

FUND PERFORMANCE

Faysal Islamic Savings and Growth Fund yielded an annualized return of 5.61% for 9MFY17, outperforming the benchmark by 230bps. At the end of this period, your fund increased its exposure towards Islamic commercial securities to 33.89%, while placement with Islamic banks was initiated at 9.03% and investment in Certificate of Musharika was maintained at 7.39%. Going forward, your fund will continue to explore Islamic investment avenues in order to provide competitive returns. FUND RATING

JCR-VIS has awarded the fund stability rating of “A (f)” for Faysal Islamic Savings Growth Fund (FISGF). This rating denotes Good degree of stability in Net Asset Value.

ACKNOWLEDGEMENT

The Board of Directors of the Management Company thanks the unit holders for their confidence in the Management, 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. For and on behalf of the Board

Razi ur Rahman KhanKarachi: April 28, 2017 Chief Executive Officer

Current account deficit increased to $ 5.5 billion in Jul-Feb FY17, which was largely due to a sizable increase in imports of capital goods, along with delayed receipts of Coalition Support Fund (CSF). The rise in overall import payments was mainly driven by increased purchases and higher prices of fuel. However, there was significant increase in capital goods imports, which will lead the economy to a higher growth path. Till March 31 2017, Pakistan’s total liquid foreign exchange reserves amounted to $21.550 billion for the period ended March 31, 2017. Forex reserves held by the State Bank of Pakistan (SBP) stood at $16.466 billion, while the net foreign exchange reserves held by commercial banks equaled at $5.084 billion.

However, the external front constraints pose immense risk to country’s long term sustainable growth evident from the monthly import bill that crossed $5 billion for the first time in March, which took the nine-month trade deficit to $23.4 billion – also a new record. The gap between imports and exports stood at $23.38 billion in the July-March period of current fiscal year, which was 38.8% or $6.53 billion more than the comparative period of previous year. The main reason behind the ballooning deficit was constant double-digit growth in imports and contraction in exports. The nine-month trade gap was $2.9 billion more than the fiscal year’s annual deficit target of $20.5 billion, set by the Ministry of Finance. Exports fell 3.1% to only $15.1 billion during July-March 2016-17, which were $478 million less than the shipments made in the comparative period of last year. Imports, however, increased 18.7% to $38.5 billion in the same period. In absolute terms, the import bill was $6.6 billion higher than the previous year.

Remittances play a major role in stabilizing Pakistan’s external sector, as they make up almost half the import bill and cover the deficit in the trade of goods account. Nevertheless, in recent times, they have come under pressure due to global economic slowdown on the back of low crude oil prices. Overseas Pakistani workers sent remittances amounting to $1.69 billion in March, an increase of 19% from February when it stood at $1.42 billion. However, cumulatively, the figure fails to convey the whole picture as remittances during the first nine months (July-March) of the current fiscal year declined to $14.06 billion from $14.39 billion in the same period of previous fiscal year – a fall of 2.29%.

Analysts have warned that the country’s foreign reserves might deplete fast in the coming months unless its policymakers take serious steps in increasing exports on sustainable basis. However, the SBP is confident that the country faces no immediate threat from the slowdown in remittances and it is in a much better position to repay debts in the next four to five years.

All in all, Pakistan has entered into a new era of development whereby overseas investors have acknowledged it as land of unlimited opportunities offering investment friendly environment in diverse sectors as prided by board of Investment (BOI) achieving $ 1.3 billion foreign investment target set for first three quarters of current fiscal year. Consequently, despite constraints on country’s balance of payments position, improvements in investors’ confidence as reflected in an uptick in private sector credit, especially for fixed investment purposes; foreign interests in Pakistani companies; and increased production of consumer durables are indeed laudable. Similarly, a surge in import of machinery and raw materials also points to a robust industrial activity and buildup of future productive capacity. The fact that Pakistan is growing and enjoys the trust of the lender agencies will go on to act as a catalyst in redoubling its successes in the years to come.

MONEY MARKET REVIEW

SBP announced 5 MPS – Monetary Policy Statements during 09MFY17 and in all five MPS

announcements SBP maintained status quo policy rate at 5.75% given the continuously expanding fiscal deficit, rapidly declining exports, decline in remittance inflows and improvement in inflation outlook on the back of improved prices of perishables- (food items) and real estate. Central bank has maintained the discount rate since May 2016, which is at its lowest level in four decades. SBP’s prudent monetary policy stance has translated well into low and stable interest rates, which incentivized private sector to borrow from commercial banks to finance their businesses and investment activities.

Accordingly, private sector credit increased to PKR 349 billion during July 2016 to February 2017 as compared to PKR 267 billion in the same period last year. Improved interbank liquidity conditions also spurred growth in private sector credit. This was led by both net government retirement [of budgetary loans] to commercial banks and a decent increase in bank deposits compared to the withdrawals seen last year.

Furthermore, interbank liquidity has been managed well with calibrated open market operations that allow the central bank to inject liquidity in banks when required or suck the excessive liquidity by buying/selling government securities.

During the period Jul’16 – Mar’17 money market continued to remain illiquid and SBP conducted numerous OMO – Injections where the total injected amount was PKR 40,111.30bn and the total participation amount was PKR 41,887.65bn. The weighted average rate of the injected amount during the 09MFY17 was 5.81%. During the period under discussion four OMO - Mop up were conducted at the weighted average rate of 5.66% and realized amount was PKR 354.45bn against the participation of PKR 495.65bn.

SBP conducted 20 T-bill auctions in the 09MFY17 where the total accepted amount was PKR 5,555.82bn where the total stipulated target of SBP was PKR 5,300bn and the cuts offs were raised over the said period and the last auction cut-offs were; 3M – 5.9910%, 6M – 5.9934% and 12M – rejected relative to 3M – 5.9017%, 6M – 5.9250% and 12M – 5.9590% at the start of the period.

Similarly, during the 09MFY17 under review, nine PIB auctions were conducted where SBP accepted bids worth PKR 777.97bn against total target of PKR 1,650bn. The major focus was 3yr followed by 5yr and 10yr by market participants. Moreover, this suit convinced various investors foresee SBP unwillingness to borrow at higher levels, given excess amount borrowed from T-bills. During said period Pakistan’s macro framework further improved as reaffirmed in Oct-16 by more important announcement by S&P to upgrade Pakistan’s rating from B- to B with a stable outlook. S&P’s rating upgrade came on the back of first ever successful conclusion of any IMF program by Pakistan and significant progress on US$62bn investment pack under China Pakistan Economic Corridor.

Moody's, a globally recognized credit rating agency has said that the Pakistani economy has strengthened following the completion of a three-year program under International Monetary Fund (IMF). The agency went on to explain that the fiscal deficit has narrowed, while growth has been observed in the foreign exchange and structural reforms planned out earlier. It also asset that nation's economy is forecasted to register a 5% expansion rate over the coming two years.

In a major bid to boost Islamic Finance, the government is actively considering to transform the National Savings Scheme (NSS) into Shariah mode of financing with an aim to help depositors invest into Islamic Shariah-compliant Ijara sukuk. Accordingly, the pros and cons of the project is under review on its specifics like the price of the retail Ijara sukuk, its size, duration, maturity period and the mode of encashment during and at completion of the maturity period. NSS management has recommended to the Ministry of Finance to extend Ijara sukuk to the NSS into

The Board of Directors of the Faysal Asset Management Limited, the management company of the Faysal Islamic Savings Growth Fund (FISGF), is pleased to present the un-audited condensed interim financial information of FISGF for the nine months and quarter ended March 31, 2017.

FINANCIAL HIGHLIGHTS

ECONOMIC REVIEW

Pakistan's economy is out of the woods. It is now on a winning streak. Irrespective of inherent weaknesses, its private and public sectors have made great strides. Our country’s economy has strengthened following successful completion of its three-year program with International Monetary Fund (IMF) where the economy is expected to grow by 5% over the next two years because of China Pakistan Economic Corridor (CPEC) projects as infrastructure gaps may reduce through increased investment in transportation and power. This is quite a healthy trend, keeping in view the economic turmoil on an international stage since 2008. In terms of purchasing power, Pakistan's economy is ranked 24th in the world. Its 200 million population, with an enterprising youth, are the decisive factors for social mobility, growth and productivity.

At the macro-economic level, Pakistan has made immense progress irrespective of bottlenecks. Inflow of capital in the last few years has helped in the development of infrastructure, especially in the sectors of health, education and civic amenities. Average CPI-based inflation in three quarters of the current fiscal year (July-March) increased 4.01% compared to 2.64% the same period of previous year reflecting higher domestic demand and increase in global commodity prices. The large scale manufacturing (LSM) sector continues to grow at 3.5% with increase in production of cement, steel, pharmaceuticals, automobiles, paper & board and electronics.

FBR had collected PKR 2258 billion during July-March of the current fiscal year. the FBR is facing shortfall due to the pro growth incentives offered to various sectors of the economy particularly exports and agriculture; major item of revenue gap amounting to PKR 100 billion was due to not passing the full impact of the POL prices to the common man. Pakistan has also revised the budget deficit target to 4.1% of the GDP from budgetary estimates of 3.8% of the GDP due to lower tax collection and soaring expenditures.

for retail investors. It is also expected that this new scheme of Islamic financing is bound to increase cash inflows in to the government kitty which ultimately reduce the burden on the banking sector of the huge bank borrowing by the government to meet its financial and slippage of budgetary receipts. The regulatory authorities are actively considering reforms for rationalizing the existing tax problems related to Sukuk and Reits to encourage and boost the confidence of the investors in the Shariah based financing in Pakistan. While Pakistan is the world’s second most populous Muslim nation, its Islamic finance sector is struggling to gain market share from conventional peers despite double digit growth. The sector includes five full-fledged Islamic banks and 16 conventional banks offering Islamic financial products, which held a combined PKR 1.85 trillion ($17.7 billion) of total banking assets as of December, reflecting an annual growth rate of 15.1%.This gave Islamic finance a market share of 11.7% of total banking assets versus the 11.4% the sector held a year earlier.

FUND PERFORMANCE

Faysal Islamic Savings and Growth Fund yielded an annualized return of 5.61% for 9MFY17, outperforming the benchmark by 230bps. At the end of this period, your fund increased its exposure towards Islamic commercial securities to 33.89%, while placement with Islamic banks was initiated at 9.03% and investment in Certificate of Musharika was maintained at 7.39%. Going forward, your fund will continue to explore Islamic investment avenues in order to provide competitive returns. FUND RATING

JCR-VIS has awarded the fund stability rating of “A (f)” for Faysal Islamic Savings Growth Fund (FISGF). This rating denotes Good degree of stability in Net Asset Value.

ACKNOWLEDGEMENT

The Board of Directors of the Management Company thanks the unit holders for their confidence in the Management, 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. For and on behalf of the Board

Razi ur Rahman KhanKarachi: April 28, 2017 Chief Executive Officer

Current account deficit increased to $ 5.5 billion in Jul-Feb FY17, which was largely due to a sizable increase in imports of capital goods, along with delayed receipts of Coalition Support Fund (CSF). The rise in overall import payments was mainly driven by increased purchases and higher prices of fuel. However, there was significant increase in capital goods imports, which will lead the economy to a higher growth path. Till March 31 2017, Pakistan’s total liquid foreign exchange reserves amounted to $21.550 billion for the period ended March 31, 2017. Forex reserves held by the State Bank of Pakistan (SBP) stood at $16.466 billion, while the net foreign exchange reserves held by commercial banks equaled at $5.084 billion.

However, the external front constraints pose immense risk to country’s long term sustainable growth evident from the monthly import bill that crossed $5 billion for the first time in March, which took the nine-month trade deficit to $23.4 billion – also a new record. The gap between imports and exports stood at $23.38 billion in the July-March period of current fiscal year, which was 38.8% or $6.53 billion more than the comparative period of previous year. The main reason behind the ballooning deficit was constant double-digit growth in imports and contraction in exports. The nine-month trade gap was $2.9 billion more than the fiscal year’s annual deficit target of $20.5 billion, set by the Ministry of Finance. Exports fell 3.1% to only $15.1 billion during July-March 2016-17, which were $478 million less than the shipments made in the comparative period of last year. Imports, however, increased 18.7% to $38.5 billion in the same period. In absolute terms, the import bill was $6.6 billion higher than the previous year.

Remittances play a major role in stabilizing Pakistan’s external sector, as they make up almost half the import bill and cover the deficit in the trade of goods account. Nevertheless, in recent times, they have come under pressure due to global economic slowdown on the back of low crude oil prices. Overseas Pakistani workers sent remittances amounting to $1.69 billion in March, an increase of 19% from February when it stood at $1.42 billion. However, cumulatively, the figure fails to convey the whole picture as remittances during the first nine months (July-March) of the current fiscal year declined to $14.06 billion from $14.39 billion in the same period of previous fiscal year – a fall of 2.29%.

Analysts have warned that the country’s foreign reserves might deplete fast in the coming months unless its policymakers take serious steps in increasing exports on sustainable basis. However, the SBP is confident that the country faces no immediate threat from the slowdown in remittances and it is in a much better position to repay debts in the next four to five years.

All in all, Pakistan has entered into a new era of development whereby overseas investors have acknowledged it as land of unlimited opportunities offering investment friendly environment in diverse sectors as prided by board of Investment (BOI) achieving $ 1.3 billion foreign investment target set for first three quarters of current fiscal year. Consequently, despite constraints on country’s balance of payments position, improvements in investors’ confidence as reflected in an uptick in private sector credit, especially for fixed investment purposes; foreign interests in Pakistani companies; and increased production of consumer durables are indeed laudable. Similarly, a surge in import of machinery and raw materials also points to a robust industrial activity and buildup of future productive capacity. The fact that Pakistan is growing and enjoys the trust of the lender agencies will go on to act as a catalyst in redoubling its successes in the years to come.

MONEY MARKET REVIEW

SBP announced 5 MPS – Monetary Policy Statements during 09MFY17 and in all five MPS

8

announcements SBP maintained status quo policy rate at 5.75% given the continuously expanding fiscal deficit, rapidly declining exports, decline in remittance inflows and improvement in inflation outlook on the back of improved prices of perishables- (food items) and real estate. Central bank has maintained the discount rate since May 2016, which is at its lowest level in four decades. SBP’s prudent monetary policy stance has translated well into low and stable interest rates, which incentivized private sector to borrow from commercial banks to finance their businesses and investment activities.

Accordingly, private sector credit increased to PKR 349 billion during July 2016 to February 2017 as compared to PKR 267 billion in the same period last year. Improved interbank liquidity conditions also spurred growth in private sector credit. This was led by both net government retirement [of budgetary loans] to commercial banks and a decent increase in bank deposits compared to the withdrawals seen last year.

Furthermore, interbank liquidity has been managed well with calibrated open market operations that allow the central bank to inject liquidity in banks when required or suck the excessive liquidity by buying/selling government securities.

During the period Jul’16 – Mar’17 money market continued to remain illiquid and SBP conducted numerous OMO – Injections where the total injected amount was PKR 40,111.30bn and the total participation amount was PKR 41,887.65bn. The weighted average rate of the injected amount during the 09MFY17 was 5.81%. During the period under discussion four OMO - Mop up were conducted at the weighted average rate of 5.66% and realized amount was PKR 354.45bn against the participation of PKR 495.65bn.

SBP conducted 20 T-bill auctions in the 09MFY17 where the total accepted amount was PKR 5,555.82bn where the total stipulated target of SBP was PKR 5,300bn and the cuts offs were raised over the said period and the last auction cut-offs were; 3M – 5.9910%, 6M – 5.9934% and 12M – rejected relative to 3M – 5.9017%, 6M – 5.9250% and 12M – 5.9590% at the start of the period.

Similarly, during the 09MFY17 under review, nine PIB auctions were conducted where SBP accepted bids worth PKR 777.97bn against total target of PKR 1,650bn. The major focus was 3yr followed by 5yr and 10yr by market participants. Moreover, this suit convinced various investors foresee SBP unwillingness to borrow at higher levels, given excess amount borrowed from T-bills. During said period Pakistan’s macro framework further improved as reaffirmed in Oct-16 by more important announcement by S&P to upgrade Pakistan’s rating from B- to B with a stable outlook. S&P’s rating upgrade came on the back of first ever successful conclusion of any IMF program by Pakistan and significant progress on US$62bn investment pack under China Pakistan Economic Corridor.

Moody's, a globally recognized credit rating agency has said that the Pakistani economy has strengthened following the completion of a three-year program under International Monetary Fund (IMF). The agency went on to explain that the fiscal deficit has narrowed, while growth has been observed in the foreign exchange and structural reforms planned out earlier. It also asset that nation's economy is forecasted to register a 5% expansion rate over the coming two years.

In a major bid to boost Islamic Finance, the government is actively considering to transform the National Savings Scheme (NSS) into Shariah mode of financing with an aim to help depositors invest into Islamic Shariah-compliant Ijara sukuk. Accordingly, the pros and cons of the project is under review on its specifics like the price of the retail Ijara sukuk, its size, duration, maturity period and the mode of encashment during and at completion of the maturity period. NSS management has recommended to the Ministry of Finance to extend Ijara sukuk to the NSS into

The Board of Directors of the Faysal Asset Management Limited, the management company of the Faysal Islamic Savings Growth Fund (FISGF), is pleased to present the un-audited condensed interim financial information of FISGF for the nine months and quarter ended March 31, 2017.

FINANCIAL HIGHLIGHTS

ECONOMIC REVIEW

Pakistan's economy is out of the woods. It is now on a winning streak. Irrespective of inherent weaknesses, its private and public sectors have made great strides. Our country’s economy has strengthened following successful completion of its three-year program with International Monetary Fund (IMF) where the economy is expected to grow by 5% over the next two years because of China Pakistan Economic Corridor (CPEC) projects as infrastructure gaps may reduce through increased investment in transportation and power. This is quite a healthy trend, keeping in view the economic turmoil on an international stage since 2008. In terms of purchasing power, Pakistan's economy is ranked 24th in the world. Its 200 million population, with an enterprising youth, are the decisive factors for social mobility, growth and productivity.

At the macro-economic level, Pakistan has made immense progress irrespective of bottlenecks. Inflow of capital in the last few years has helped in the development of infrastructure, especially in the sectors of health, education and civic amenities. Average CPI-based inflation in three quarters of the current fiscal year (July-March) increased 4.01% compared to 2.64% the same period of previous year reflecting higher domestic demand and increase in global commodity prices. The large scale manufacturing (LSM) sector continues to grow at 3.5% with increase in production of cement, steel, pharmaceuticals, automobiles, paper & board and electronics.

FBR had collected PKR 2258 billion during July-March of the current fiscal year. the FBR is facing shortfall due to the pro growth incentives offered to various sectors of the economy particularly exports and agriculture; major item of revenue gap amounting to PKR 100 billion was due to not passing the full impact of the POL prices to the common man. Pakistan has also revised the budget deficit target to 4.1% of the GDP from budgetary estimates of 3.8% of the GDP due to lower tax collection and soaring expenditures.

for retail investors. It is also expected that this new scheme of Islamic financing is bound to increase cash inflows in to the government kitty which ultimately reduce the burden on the banking sector of the huge bank borrowing by the government to meet its financial and slippage of budgetary receipts. The regulatory authorities are actively considering reforms for rationalizing the existing tax problems related to Sukuk and Reits to encourage and boost the confidence of the investors in the Shariah based financing in Pakistan. While Pakistan is the world’s second most populous Muslim nation, its Islamic finance sector is struggling to gain market share from conventional peers despite double digit growth. The sector includes five full-fledged Islamic banks and 16 conventional banks offering Islamic financial products, which held a combined PKR 1.85 trillion ($17.7 billion) of total banking assets as of December, reflecting an annual growth rate of 15.1%.This gave Islamic finance a market share of 11.7% of total banking assets versus the 11.4% the sector held a year earlier.

FUND PERFORMANCE

Faysal Islamic Savings and Growth Fund yielded an annualized return of 5.61% for 9MFY17, outperforming the benchmark by 230bps. At the end of this period, your fund increased its exposure towards Islamic commercial securities to 33.89%, while placement with Islamic banks was initiated at 9.03% and investment in Certificate of Musharika was maintained at 7.39%. Going forward, your fund will continue to explore Islamic investment avenues in order to provide competitive returns. FUND RATING

JCR-VIS has awarded the fund stability rating of “A (f)” for Faysal Islamic Savings Growth Fund (FISGF). This rating denotes Good degree of stability in Net Asset Value.

ACKNOWLEDGEMENT

The Board of Directors of the Management Company thanks the unit holders for their confidence in the Management, 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. For and on behalf of the Board

Razi ur Rahman KhanKarachi: April 28, 2017 Chief Executive Officer

Current account deficit increased to $ 5.5 billion in Jul-Feb FY17, which was largely due to a sizable increase in imports of capital goods, along with delayed receipts of Coalition Support Fund (CSF). The rise in overall import payments was mainly driven by increased purchases and higher prices of fuel. However, there was significant increase in capital goods imports, which will lead the economy to a higher growth path. Till March 31 2017, Pakistan’s total liquid foreign exchange reserves amounted to $21.550 billion for the period ended March 31, 2017. Forex reserves held by the State Bank of Pakistan (SBP) stood at $16.466 billion, while the net foreign exchange reserves held by commercial banks equaled at $5.084 billion.

However, the external front constraints pose immense risk to country’s long term sustainable growth evident from the monthly import bill that crossed $5 billion for the first time in March, which took the nine-month trade deficit to $23.4 billion – also a new record. The gap between imports and exports stood at $23.38 billion in the July-March period of current fiscal year, which was 38.8% or $6.53 billion more than the comparative period of previous year. The main reason behind the ballooning deficit was constant double-digit growth in imports and contraction in exports. The nine-month trade gap was $2.9 billion more than the fiscal year’s annual deficit target of $20.5 billion, set by the Ministry of Finance. Exports fell 3.1% to only $15.1 billion during July-March 2016-17, which were $478 million less than the shipments made in the comparative period of last year. Imports, however, increased 18.7% to $38.5 billion in the same period. In absolute terms, the import bill was $6.6 billion higher than the previous year.

Remittances play a major role in stabilizing Pakistan’s external sector, as they make up almost half the import bill and cover the deficit in the trade of goods account. Nevertheless, in recent times, they have come under pressure due to global economic slowdown on the back of low crude oil prices. Overseas Pakistani workers sent remittances amounting to $1.69 billion in March, an increase of 19% from February when it stood at $1.42 billion. However, cumulatively, the figure fails to convey the whole picture as remittances during the first nine months (July-March) of the current fiscal year declined to $14.06 billion from $14.39 billion in the same period of previous fiscal year – a fall of 2.29%.

Analysts have warned that the country’s foreign reserves might deplete fast in the coming months unless its policymakers take serious steps in increasing exports on sustainable basis. However, the SBP is confident that the country faces no immediate threat from the slowdown in remittances and it is in a much better position to repay debts in the next four to five years.

All in all, Pakistan has entered into a new era of development whereby overseas investors have acknowledged it as land of unlimited opportunities offering investment friendly environment in diverse sectors as prided by board of Investment (BOI) achieving $ 1.3 billion foreign investment target set for first three quarters of current fiscal year. Consequently, despite constraints on country’s balance of payments position, improvements in investors’ confidence as reflected in an uptick in private sector credit, especially for fixed investment purposes; foreign interests in Pakistani companies; and increased production of consumer durables are indeed laudable. Similarly, a surge in import of machinery and raw materials also points to a robust industrial activity and buildup of future productive capacity. The fact that Pakistan is growing and enjoys the trust of the lender agencies will go on to act as a catalyst in redoubling its successes in the years to come.

MONEY MARKET REVIEW

SBP announced 5 MPS – Monetary Policy Statements during 09MFY17 and in all five MPS

announcements SBP maintained status quo policy rate at 5.75% given the continuously expanding fiscal deficit, rapidly declining exports, decline in remittance inflows and improvement in inflation outlook on the back of improved prices of perishables- (food items) and real estate. Central bank has maintained the discount rate since May 2016, which is at its lowest level in four decades. SBP’s prudent monetary policy stance has translated well into low and stable interest rates, which incentivized private sector to borrow from commercial banks to finance their businesses and investment activities.

Accordingly, private sector credit increased to PKR 349 billion during July 2016 to February 2017 as compared to PKR 267 billion in the same period last year. Improved interbank liquidity conditions also spurred growth in private sector credit. This was led by both net government retirement [of budgetary loans] to commercial banks and a decent increase in bank deposits compared to the withdrawals seen last year.

Furthermore, interbank liquidity has been managed well with calibrated open market operations that allow the central bank to inject liquidity in banks when required or suck the excessive liquidity by buying/selling government securities.

During the period Jul’16 – Mar’17 money market continued to remain illiquid and SBP conducted numerous OMO – Injections where the total injected amount was PKR 40,111.30bn and the total participation amount was PKR 41,887.65bn. The weighted average rate of the injected amount during the 09MFY17 was 5.81%. During the period under discussion four OMO - Mop up were conducted at the weighted average rate of 5.66% and realized amount was PKR 354.45bn against the participation of PKR 495.65bn.

SBP conducted 20 T-bill auctions in the 09MFY17 where the total accepted amount was PKR 5,555.82bn where the total stipulated target of SBP was PKR 5,300bn and the cuts offs were raised over the said period and the last auction cut-offs were; 3M – 5.9910%, 6M – 5.9934% and 12M – rejected relative to 3M – 5.9017%, 6M – 5.9250% and 12M – 5.9590% at the start of the period.

Similarly, during the 09MFY17 under review, nine PIB auctions were conducted where SBP accepted bids worth PKR 777.97bn against total target of PKR 1,650bn. The major focus was 3yr followed by 5yr and 10yr by market participants. Moreover, this suit convinced various investors foresee SBP unwillingness to borrow at higher levels, given excess amount borrowed from T-bills. During said period Pakistan’s macro framework further improved as reaffirmed in Oct-16 by more important announcement by S&P to upgrade Pakistan’s rating from B- to B with a stable outlook. S&P’s rating upgrade came on the back of first ever successful conclusion of any IMF program by Pakistan and significant progress on US$62bn investment pack under China Pakistan Economic Corridor.

Moody's, a globally recognized credit rating agency has said that the Pakistani economy has strengthened following the completion of a three-year program under International Monetary Fund (IMF). The agency went on to explain that the fiscal deficit has narrowed, while growth has been observed in the foreign exchange and structural reforms planned out earlier. It also asset that nation's economy is forecasted to register a 5% expansion rate over the coming two years.

In a major bid to boost Islamic Finance, the government is actively considering to transform the National Savings Scheme (NSS) into Shariah mode of financing with an aim to help depositors invest into Islamic Shariah-compliant Ijara sukuk. Accordingly, the pros and cons of the project is under review on its specifics like the price of the retail Ijara sukuk, its size, duration, maturity period and the mode of encashment during and at completion of the maturity period. NSS management has recommended to the Ministry of Finance to extend Ijara sukuk to the NSS into

The Board of Directors of the Faysal Asset Management Limited, the management company of the Faysal Islamic Savings Growth Fund (FISGF), is pleased to present the un-audited condensed interim financial information of FISGF for the nine months and quarter ended March 31, 2017.

FINANCIAL HIGHLIGHTS

ECONOMIC REVIEW

Pakistan's economy is out of the woods. It is now on a winning streak. Irrespective of inherent weaknesses, its private and public sectors have made great strides. Our country’s economy has strengthened following successful completion of its three-year program with International Monetary Fund (IMF) where the economy is expected to grow by 5% over the next two years because of China Pakistan Economic Corridor (CPEC) projects as infrastructure gaps may reduce through increased investment in transportation and power. This is quite a healthy trend, keeping in view the economic turmoil on an international stage since 2008. In terms of purchasing power, Pakistan's economy is ranked 24th in the world. Its 200 million population, with an enterprising youth, are the decisive factors for social mobility, growth and productivity.

At the macro-economic level, Pakistan has made immense progress irrespective of bottlenecks. Inflow of capital in the last few years has helped in the development of infrastructure, especially in the sectors of health, education and civic amenities. Average CPI-based inflation in three quarters of the current fiscal year (July-March) increased 4.01% compared to 2.64% the same period of previous year reflecting higher domestic demand and increase in global commodity prices. The large scale manufacturing (LSM) sector continues to grow at 3.5% with increase in production of cement, steel, pharmaceuticals, automobiles, paper & board and electronics.

FBR had collected PKR 2258 billion during July-March of the current fiscal year. the FBR is facing shortfall due to the pro growth incentives offered to various sectors of the economy particularly exports and agriculture; major item of revenue gap amounting to PKR 100 billion was due to not passing the full impact of the POL prices to the common man. Pakistan has also revised the budget deficit target to 4.1% of the GDP from budgetary estimates of 3.8% of the GDP due to lower tax collection and soaring expenditures.

9

for retail investors. It is also expected that this new scheme of Islamic financing is bound to increase cash inflows in to the government kitty which ultimately reduce the burden on the banking sector of the huge bank borrowing by the government to meet its financial and slippage of budgetary receipts. The regulatory authorities are actively considering reforms for rationalizing the existing tax problems related to Sukuk and Reits to encourage and boost the confidence of the investors in the Shariah based financing in Pakistan. While Pakistan is the world’s second most populous Muslim nation, its Islamic finance sector is struggling to gain market share from conventional peers despite double digit growth. The sector includes five full-fledged Islamic banks and 16 conventional banks offering Islamic financial products, which held a combined PKR 1.85 trillion ($17.7 billion) of total banking assets as of December, reflecting an annual growth rate of 15.1%.This gave Islamic finance a market share of 11.7% of total banking assets versus the 11.4% the sector held a year earlier.

FUND PERFORMANCE

Faysal Islamic Savings and Growth Fund yielded an annualized return of 5.61% for 9MFY17, outperforming the benchmark by 230bps. At the end of this period, your fund increased its exposure towards Islamic commercial securities to 33.89%, while placement with Islamic banks was initiated at 9.03% and investment in Certificate of Musharika was maintained at 7.39%. Going forward, your fund will continue to explore Islamic investment avenues in order to provide competitive returns. FUND RATING

JCR-VIS has awarded the fund stability rating of “A (f)” for Faysal Islamic Savings Growth Fund (FISGF). This rating denotes Good degree of stability in Net Asset Value.

ACKNOWLEDGEMENT

The Board of Directors of the Management Company thanks the unit holders for their confidence in the Management, 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. For and on behalf of the Board

Razi ur Rahman KhanKarachi: April 28, 2017 Chief Executive Officer

10

Condensed Interim Statement of Assets and LiabilitiesAs at March 31, 2017

(Un-Audited) (Audited)March 31, June 30,

2017 2016Note

Assets

Bank balances and Term dposit Receipts 5 703,214,055 265,947,795 Investments 6 295,206,702 282,347,153 Advance against subscription of sukuk 210,000,000 75,000,000 Prepayments, deposits and other receivables 9,888,999 9,093,619 Receivable against sale of units - 80,084,675 Total assets 1,218,309,756 712,473,242

Liabilities

Payable to the Management Company 1,805,546 1,488,235 Remuneration payable to the Trustee 178,981 114,800 Accrued and other liabilities 7 9,366,646 12,723,156 Payable against redemption of units - 62,000,000 Total liabilities 11,351,173 76,326,191

Net assets 1,206,958,583 636,147,051

Unit holders’ fund (as per the statement attached) 1,206,958,583 636,147,051

Contingencies and Commitments 8

Number of units in issue 11,364,219 6,241,744

Net assets value per unit 106.21 101.92

The annexed notes from 1 to 15 form an integral part of this condensed interim financial information.

For Faysal Asset Management Limited(Management Company)

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

--------- (Number of units) ---------

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

_____________________ ___________________ __________________Chief Executive Officer Director Director

6.4

11

March 31, March 31, March 31, March 31,2017 2016 2017 2016

NoteIncome

Profit earned on sukuk certificates classified as 'at fair value through profit or loss' - held-for-trading 18,657,585 15,976,337 7,153,133 5,227,310 Profit earned on commercial paper - classified as 'held to maturity' - 1,817,507 - 343,575 Return on bank balances and term deposits receipts 27,690,184 22,041,919 11,462,416 6,973,045 Return on certificate of musharika - classified as 'held to maturity' 2,274,657 1,450,822 1,364,794 - Gain / (loss) on investments classified as 'at fair value through profit or loss' - held-for-trading-Net capital gain on sale of investments 1,433,943 3,440,952 - 2,827,937 -Net unrealized gain on revaluation of investments 6.4 1,955,729 11,531 (950,811) 1,474,351

3,389,672 3,452,483 (950,811) 4,302,288 Total income 52,012,098 44,739,068 19,029,532 16,846,218

Expenses

Remuneration of the Management Company 11,302,050 8,275,977 4,805,122 2,563,780 Reimbursement of expense to the Management Company 713,619 - 280,490 - Provision for indirect taxes and duties 7.2 - 1,517,873 - 471,689 Sales tax on management fee 1,469,267 1,158,637 624,667 358,929 Remuneration of the Trustee 1,202,028 974,511 481,893 290,576 Sales tax on trustee fee 156,264 136,432 62,647 40,681 Brokerage charges 70,084 51,221 16,272 31,938 Bank charges 77,837 26,258 21,751 7,116 Auditors' remuneration 490,883 411,127 125,729 118,232 SECP non refundable annual fee 565,102 415,271 240,281 128,189 Fees and subscriptions 215,140 187,794 67,860 62,117 Settlement charges, federal excise duty and capital value tax 278,485 201,653 89,407 108,571 Printing and other expenses 188,175 188,898 61,805 62,514 Reversal against provision of Worker's Welfare Fund 7.1 (4,350,657) Provision for Sindh Workers' Welfare Fund 7.1 981,621 - 981,621 -

Total expenses 13,359,898 13,545,652 3,508,888 4,244,332 Net income from operating activities 38,652,200 31,193,416 15,520,644 12,601,886

Element of income / (loss) and capital gains / (losses) included inprices of units sold less those in units redeemed - net 9,303,671 (3,187,314) (4,956,071) (92,691)

Net income for the period before taxation 47,955,871 28,006,102 10,564,573 12,509,195

Taxation 9 - - - -

Net income for the period after taxation 47,955,871 28,006,102 10,564,573 12,509,195

Other comprehensive income for the period - - - -

Total comprehensive income for the period 47,955,871 28,006,102 10,564,573 12,509,195

Earnings per unit 10

The annexed notes from 1 to 15 form an integral part of this condensed interim financial information.

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

For Faysal Asset Management Limited(Management Company)

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

Nine Months ended Quarter ended

_____________________ ___________________ __________________Chief Executive Officer Director Director

(4,350,657)

Condensed Interim Income StatementFor The Nine Months and Quarter Ended March 31, 2017 (Un-Audited)

12

Condensed Interim Distribution StatementFor The Nine Months Ended March 31, 2017 (Un-Audited)

March 31, March 31,2017 2016

NoteUndistributed income brought forward [includes unrealized gain on investments of Rs.6,263,129

(2016: unrealized gain of Rs.6,931,123)] 13,717,113 10,605,733

Net income for the period after taxation 47,955,871 28,006,102

Cash dividend distribution relating to excess units reported in prior period 3 770,461 -

Undistributed income carried forward 62,443,445 38,611,835

[includes unrealized gain on investments of Rs.5,271,595(2016: unrealized gain of Rs.6,073,302)]

The annexed notes from 1 to 15 form an integral part of this condensed interim financial information.

(Management Company)

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

For Faysal Asset Management Limited

_____________________ ___________________ __________________Chief Executive Officer Director Director

13

Condensed Interim Statement of Cash FlowsFor The Nine Months Ended March 31, 2017 (Un-Audited)

March 31, March 31,2017 2016

NoteCASH FLOWS FROM OPERATING ACTIVITIESNet income for the period before taxation 47,955,871 28,006,102

Adjustments for non-cash and other items:

Profit earned on sukuk certificates classified as 'at fair value through profit or loss' - held-for-trading (18,657,585) (15,976,337) Profit earned on commercial paper - classified as 'held to maturity' - (1,817,507) Return on bank balances and term deposits receipts (27,690,184) (22,041,919) Profit earned on certificate of musharika - classified as 'held to maturity' (2,274,657) (1,450,822) Net gain on investments classified as 'at fair value through profit or loss' - held-for-trading: - Net capital gain on sale of investments (1,433,943) (3,440,952) - Net unrealized gain on revaluation of investments (1,955,729) (11,531)

Element of (income) / loss and capital (gains) / losses included inprices of units sold less those in units redeemed - net (9,303,671) 3,187,314

Cash dividend distribution relating to excess units reported in prior period 770,461 - (12,589,437) (13,545,652)

Increase in assetsPrepayments, deposits and other receivables (14,000) (133,237)

(Decrease) / increase in liabilities Payable to the Management Company 317,311 (1,026,013) Remuneration payable to the Trustee 64,181 (50,392) Accrued and other liabilities (3,356,510) (3,661,846)

(2,975,018) (4,738,251) (15,578,455) (18,417,140)

Proceeds from sale of investments 156,465,293 350,054,081 Payment made against purchase of investments (273,660,450) (353,667,500) Advance against subscription of sukuk (135,000,000) - Profit received on sukuk certificates 19,793,455 22,370,136 Withholding taxes paid (353,567) - Return received on bank balances 26,126,501 25,356,801 Net cash generated (used in) / from operating activities (222,207,223) 25,696,378

CASH FLOWS FROM FINANCING ACTIVITIESAmounts received against issue of units 1,468,469,040 394,803,301 Payments made against redemption of units (918,995,494) (643,118,514) Net cash generated from / (used in) financing activities 549,473,546 (248,315,213)

Net increase / (decrease) in cash and cash equivalents during the period 327,266,323 (222,618,835) Cash and cash equivalents at the beginning of the period 265,947,795 665,451,872

Cash and cash equivalents at the end of the period 5 593,214,118 442,833,037

The annexed notes from 1 to 15 form an integral part of this condensed interim financial information.

For Faysal Asset Management Limited(Management Company)

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

_____________________ ___________________ __________________Chief Executive Officer Director Director

14

Condensed Interim Statement of Movement in Unit Holders’ FundFor The Nine Months Ended March 31, 2017 (Un-Audited)

March 31, March 31,2017 2016

Note

Net assets value per unit at the beginning of the period 101.92 101.81

Net assets value per unit at the end of the period 106.21 106.25

Net assets at the beginning of the period 636,147,051 886,844,096

Amounts received on issue of units * 1,388,384,365 394,803,301 Amounts paid on redemption of units ** (856,995,494) (643,118,514)

531,388,871 (248,315,213) Element of (gain) / loss and capital (gain) / losses included in

prices of units sold less those in units redeemed - net (9,303,671) 3,187,314

Adjustment of cash distribution for the period ended June 24, 2016 3 770,461 -

Net capital gain on sale of investments 1,433,943 3,440,952 Net unrealized gain on revaluation of investments 1,955,729 11,531 Other net income for the period 44,566,199 24,553,619 Other comprehensive income for the period - - Total comprehensive income for the period 47,955,871 28,006,102

Net assets at the end of the period 1,206,958,583 669,722,299

* Number of units issued 13,293,008 3,800,445

** Number of units redeemed 8,170,533 6,208,416

The annexed notes from 1 to 15 form an integral part of this condensed interim financial information.

(Management Company)

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

For Faysal Asset Management Limited

-------- (Number of units) --------

_____________________ ___________________ _________________Chief Executive Officer Director Director

15

Notes to the Condensed Interim Financial InformationFor The Nine Months Ended March 31, 2017 (Un-Audited)1. LEGAL STATUS AND NATURE OF BUSINESS

The Fund is categorized as a "Islamic Income Scheme" as per the Circular 07 of 2009 issued by SECP.

JCR - VIS has awarded an "AM3++" asset manager rating to the Management Company as of May 04, 2016.

2. BASIS OF PREPARATION

3.

The JCR - VIS Credit Rating Company Limited (JCR - VIS) has assigned a " A (f)" medium to long term rating to FaysalIslamic Savings Growth Fund as of May 28, 2016.

This condensed interim financial information has been prepared in accordance with the requirements of InternationalAccounting Standard 34: ‘Interim Financial Reporting’, the Trust Deed, the NBFC Rules, Non-Banking FinanceCompanies and Notified Entities Regulations, 2008 (NBFC Regulations), Companies Ordinance 1984 and directivesissued by SECP. In case where requirements differ, the requirements of the Trust Deed, the NBFC Rules, the NBFCRegulations or the directives issued by the SECP prevail.

This condensed interim financial information does not include all the information and disclosures required in the annualfinancial statements, and should be read in conjunction with the annual financial statements of the Fund for the yearended June 30, 2016.

The condensed interim financial information is presented in Pakistani Rupees which is the Fund's functional andpresentation currency.

During the period, management made adjustment pertaining to distribution relating to reported units during the yearended June 30, 2016 which were erroneously excessive reported by Rs. 770,461. The effect of such adjustment is notmaterial and therefore, retrospective restatement has not been made and impact has been incorporated in the currentperiod financial information (condensed interim distribution statement).

The disclosures made in this interim financial information have, however, been limited based on the requirements ofthe International Accounting Standard 34 - Interim Financial Reporting.

The principal activity of the Fund is to invest in shariah compliant money market and debt securities having good creditquality rating and liquidity.

Faysal Islamic Savings Growth Fund (the Fund) has been established under the Non-Banking Finance Companies(Establishment and Regulation) Rules, 2003 (the NBFC Rules) and has been authorized as a unit trust scheme by theSecurities and Exchange Commission of Pakistan (SECP) on June 04, 2009. It has been constituted under a TrustDeed, dated April 22, 2009, between Faysal Asset Management Limited (the Management Company), a companyincorporated under the Companies Ordinance, 1984 and Central Depository Company of Pakistan Limited (CDC) asthe Trustee, incorporated under the Companies Ordinance, 1984.

The Fund is a Shariah Compliant open ended Islamic income fund and offers units for public subscription on acontinuous basis. The units are transferable and can also be redeemed by surrendering to the Fund. The units arelisted on the Pakistan Stock Exchange Limited (formerly Karachi Stock Exchange). The Fund was launched on June14, 2010.

16

Notes to the Condensed Interim Financial InformationFor The Nine Months Ended March 31, 2017 (Un-Audited)

4. ACCOUNTING POLICIES , ESTIMATES AND FINANCIAL RISK MANAGEMENT POLICIES

4.1 New / revised standards and amendments

4.2

(Un-Audited) (Audited)March 31, June 30,

2017 2016Note

5. BANK BALANCES AND TERM DEPOSIT RECEIPT

Cash at bank - PLS saving accounts 5.1 593,214,055 265,947,795 Cash and cash equivalents 593,214,055 265,947,795

Term Deposit Receipt 5.2 110,000,000 - 703,214,055 265,947,795

5.1

5.2

(Un-Audited) (Audited)March 31, June 30,

2017 2016Note

6. INVESTMENTS

At fair value through profit or loss - held-for-trading

Listed - Sukuk certificates 6.1 202,932,045 232,347,153 Unlisted - Sukuk certificates 6.2 - 50,000,000

Held to maturity

Certificates of Musharika 6.3 92,274,657 -

295,206,702 282,347,153

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

The accounting policies, basis of accounting estimates applied and methods of computation adopted in the preparationof this condensed interim financial information are consistent with those followed in the preparation of the financialstatements of the Fund for the year ended June 30, 2016 except for the following amended IFRS which becameeffective during the period as mentioned in note 4.1 below:

These carry mark-up ranging from 3.75% to 5.45% (June 30, 2016: 3.8% to 6.1%) per annum and includebalance of Rs. 4.38 million (June 30, 2016: Rs. 0.15 million) held with Faysal Bank Limited, a related party.

The Fund has adopted the following revised standards and amendments to IFRSs which became effective during the current period:

The adoption of the above new and amendments, to accounting standards did not have any effect on thiscondensed interim financial information of the Fund.

The financial risk management objectives and policies are consistent with those disclosed in the annual financialstatements of the Fund for the year ended June 30, 2016.

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

IFRS 10 - Consolidated Financial Statement

IFRS 11 - Joint Arrangements (Revised 2011)-Investments in Associates and Joint Ventures

IFRS 12 - Disclosure of Interests in Other Entities

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

IAS 28 - Investment in Associates

This represent TDR placement at the profit rate of 5.90% having maturity upto March 24, 2018.

17

Notes to the Condensed Interim Financial InformationFor The Nine Months Ended March 31, 2017 (Un-Audited)

6.1

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lect

rical

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ited

(Shi

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50,0

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52

,586

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2,

586,

250

Ap

ril, 2

021

17.8

1%4.

36%

Mar

ch 3

1, 2

017

197,

660,

450

202,

932,

045

5,27

1,59

5

June

30,

201

622

6,08

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4

23

2,34

7,15

3

6,

263,

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6.1.

1Si

gnifi

cant

term

s an

d co

nditi

ons

of S

ukuk

cer

tific

ates

are

as

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ws:

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arch

, 201

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cure

dAA

Engr

o C

orpo

ratio

n Li

mite

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kuk

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%Ju

ly, 2

019

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red

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o TF

C S

ukuk

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d -H

FT 0

9-Ju

ly-2

014

(05

Year

s)7.

89%

4,00

0

July

, 201

9Se

cure

dAA

-TP

L Tr

akke

r Lim

ited

(Shi

rkat

ul A

qd)

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000,

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ril, 2

021

Secu

red

A+

Car

ryin

g va

lue

as p

erce

ntag

e of

net

ass

ets

As a

t Jul

y 01

, 201

6

Purc

hase

d du

ring

the

perio

d

Tran

sfer

red

fro m

U

nlis

ted

Suku

ksSo

ld d

urin

g th

e pe

riod

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e of

inve

stee

com

pany

M

atur

ity

Car

ryin

g v a

lue

as p

erce

ntag

e of

tota

l in

vest

men

ts

As a

t Mar

ch 3

1,

2017

Car

ryin

g va

lue

Mar

ket v

alue

Unr

ealiz

ed g

ain

on re

valu

atio

n

Num

ber o

f cer

tific

ates

As a

t Mar

ch 3

1, 2

017

Nam

e of

cer

tific

ate

Rat

e of

retu

rn

per a

nnum

Face

val

ue p

er c

ertif

icat

e (R

upee

s)M

ark-

up ra

te(p

er a

nnum

)M

atur

ity

------

------

------

-----R

upee

s----

------

------

------

------

-

Secu

red

/ U

nsec

ured

Rat

ing

5,00

0

2.75

% +

3 m

onth

s KI

BOR

5,00

0

13.5

0%

3% +

1 y

ear K

IBO

R1.

75%

+ 6

mon

ths

KIBO

R

18

Notes to the Condensed Interim Financial InformationFor The Nine Months Ended March 31, 2017 (Un-Audited)

6.2

Unl

iste

d Su

kuk

Cer

tific

ates

%%

%TP

L Tr

akke

r Lim

ited

(Shi

rkat

ul A

qd)

50-

50

-

-

-

-

-

-

-

-

June

30,

201

650

,000

,000

50

,000

,000

-

6.3

Cer

tific

ate

of M

usha

rika

6.4

Adv

ance

aga

inst

sub

scrip

tions

of s

ukuk

Orix

Mod

arab

a6.

15%

-

90

,000

,000

-

90

,000

,000

92,2

74,6

57

28-A

pr-1

7AA

+30

.49%

7.46

%

6.4.

1D

etai

ls o

f Non

Com

plia

nce

Inve

stm

ents

Req

uire

d R

atin

gEx

istin

g R

atin

gR

equi

red

Expo

sure

as

a %

of N

AV

Exis

tng

Expo

sure

as

a %

of N

AVB

reac

h

Valu

e of

In

vest

men

t be

fore

Pr

ovis

ion

Prov

isio

n if

any

Valu

e of

In

vest

men

t af

ter

Prov

isio

ning

Fac

e va

lue

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perc

enta

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f to

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inve

stm

ents

Face

val

ue a

s pe

rcen

tage

of

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sset

s

Byco

Oil

Paki

stan

Lim

ited

Suku

kA-

AAA

15%

17.4

0%2.

40%

210

,000

,000

-

2

10,0

00,0

00

71.1

4%17

.40%

The

certi

ficat

es a

re y

et to

be

issu

ed th

eref

ore

the

said

inve

stm

ent i

s re

cord

ed in

the

Adva

nce

acco

unt h

ead.

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e of

inve

stee

com

pany

Num

ber o

f cer

tific

ates

Bal

ance

as

at M

arch

31,

201

7

Mat

urity

Car

ryin

g va

lue

as p

erce

ntag

e of

net

ass

ets

Face

val

ue a

s pe

rcen

tage

of

net a

sset

sAs

at J

uly

01, 2

016

Purc

hase

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ring

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perio

d

Sold

/Tra

nsfe

rred

du

ring

the

perio

dAs

at M

arch

31,

20

17C

arry

ing

valu

eM

arke

t val

ueU

nrea

lized

gai

n / (

loss

) on

reva

luat

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Car

ryin

g v a

lue

as p

erce

ntag

e of

tota

l in

vest

men

ts

------

------

------

-----R

upee

s----

------

------

------

------

-

Nam

e of

the

inve

stee

com

pany

C

arry

ing

Valu

eM

atur

ityR

ate

of

retu

rn p

er

annu

m

Nam

e of

Non

Com

plia

nt In

vest

men

t

------

------

------

------

------

------

(Rup

ees)

-----

------

------

------

------

------

-

Fac

e va

lue

as

perc

enta

ge o

f to

tal

inve

stm

ents

Face

val

ue a

s pe

rcen

tage

of

net a

sset

sR

atin

gAs

at J

uly

01,

2016

Purc

hase

d du

ring

the

perio

d

Mat

ured

dur

ing

the

perio

dAs

at D

ecem

ber

31, 2

016

The

repr

esen

t adv

ance

giv

en fo

r the

sub

scrip

tion

of th

e su

kuk.

.issu

ed b

y th

e by

co o

il Pa

kist

an li

mite

d@ a

t the

rate

of 3

mon

th k

IBO

R 1

plu

s 05

% s

prea

d.th

e ce

rtifia

cte

are

yet t

o be

issu

ed th

eref

ore

the

said

inve

stm

ent i

s re

cord

ed in

the

adva

nced

acc

ount

he

ad th

e ad

vanc

ed is

17.

40 o

f the

net

ass

et a

nd 7

% o

f the

issu

ed s

ize

of is

suer

.

19

Notes to the Condensed Interim Financial InformationFor The Nine Months Ended March 31, 2017 (Un-Audited)

(Un-Audited) (Audited)March 31, June 30,

2017 20166.4 Net unrealised gain on revaluation of investments - Note

'at fair value through profit or loss'

Market value of investments 202,932,045 226,084,024 Less: cost of investments 197,660,450 232,347,153

5,271,595 6,263,129

Net unrealised (gain) / loss on investments at the beginning of the year (6,263,129) (6,931,123)Realised Gain on disposal during the period 2,947,263 876,016

(3,315,866) (6,055,107) 1,955,729 208,022

7. ACCRUED AND OTHER LIABILITIES

SECP non refundable annual fee payable 565,077 552,805 Accrued liabilities 1,854,264 1,854,010 Provision for Workers' Welfare Fund 7.1 1,675,436 5,044,472 Provision for indirect taxes and duties 7.2 5,271,869 5,271,869

9,366,646 12,723,156

7.1

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

The Finance Act, 2008 had introduced an amendment to the Workers' Welfare Fund Ordinance, 1971 (WWFOrdinance) as a result of which it was construed that all Collective Investment Schemes (CISs) / mutual fundswhose income exceeded Rs 0.5 million in a tax year were brought within the scope of the WWF Ordinance,thus rendering them liable to pay contribution to WWF at the rate of two percent of their accounting or taxableincome, whichever was higher. In light of this, the Mutual Funds Association of Pakistan (MUFAP) filed aconstitutional petition in the Honourable Sindh High Court (SHC) challenging the applicability of WWF on CISswhich is pending adjudication. Similar cases were disposed of by the Peshawar and the Lahore High Courts inwhich these amendments were declared unlawful and unconstitutional. However, these decisions werechallenged in the Supreme Court of Pakistan.

Subsequently, the Finance Act, 2015 introduced an amendment under which CISs / mutual funds have beenexcluded from the definition of “industrialestablishment”subject to WWF under the WWF Ordinance.Consequently, mutual funds are not subject to this levy after the introduction of this amendment which isapplicable from tax year 2016. Accordingly, no further provision in respect of WWF was made with effect fromJuly 1, 2015.

On November 10, 2016 the Supreme Court of Pakistan (SCP) has passed a judgment declaring theamendments made in the Finance Acts 2006 and 2008 pertaining to WWF as illegal citing that WWF was notin the nature of tax and could, therefore, not have been introduced through money bills. Accordingly, theaforesaid amendments have been struck down by the SCP. The Federal Board of Revenue has filed a petitionin the SCP against the said judgment, which is pending for hearing. While the petitions filed by the CISs on thematter are still pending before the SHC, the Mutual Funds Association of Pakistan (MUFAP) (collectively onbehalf of the asset management companies and their CISs) has taken legal and tax opinions on the impact ofthe SCP judgement on the CISs petition before the SHC. Both legal and tax advisors consulted were of theview that the judgment has removed the very basis on which the demands were raised against the CISs.Therefore, there was no longer any liability against the CISs under the WWF Ordinance and that all casespending in the SHC or lower appellate forums will now be disposed of in light of the earlier judgement of theSCP.

Furthermore, as a consequence of the 18th amendment to the Constitution of Pakistan, in May 2015 the SindhWorkers’Welfare Fund Act, 2014 (SWWF Act) had been passed by the government of Sindh as a result ofwhich every industrial establishment located in the Province of Sindh, the total income of which in anyaccounting year is not less than Rs 0.50 million, is required to pay Sindh Workers’Welfare Fund (SWWF) inrespect of that year a sum equal to two percent of such income.

20

Notes to the Condensed Interim Financial InformationFor The Nine Months Ended March 31, 2017 (Un-Audited)

-

-

7.2

8. CONTINGENCIES AND COMMITMENTS

9. TAXATION

Furthermore, the Federal Government vide Finance Act, 2016 has excluded Asset Management Companiesand other Non Banking Finance Companies from charge of Federal Excise Duty (FED) on their services.

In view of the pending decision and as a matter of abundant caution, the Management Company of the Fund has maintained a provision for FED in the books of accounts of the Fund with effect from June 13, 2013 to June 30, 2016 aggregating to Rs.5.271 million (June 30, 2016: Rs.5.271 million). Had the said provision of FED and related taxes not been recorded in the books of account of the Fund, the net assets value per unit of the Fund would have been higher by Rs.0.46 (0.44%) per unit as at March 31, 2017 (June 30, 2016: Rs.0.84 (0.83%) per unit).

The income of the fund is exempt from income tax under Clause (99) of Part 1 of the Second Schedule to the IncomeTax Ordinance, 2001 (Clause 99) subject to the condition that not less than 90 percent of the accounting income forthe year, as reduced by capital gains, whether realized or unrealized, is distributed amongst the unit holders. TheManagement Company has intends to distribute not less than 90 percent of its annual accounting income to avail thetax exemption. Accordingly, no provision for current and deferred tax has been made in this condensed interimfinancial information.

There were no contingencies and commitments as at March 31, 2017 and June 30, 2016 except those as disclosed inrelevant notes to this condensed interim financial information.

There is no change in the status of petition with Honorable Sind High Court as reported in note 15.3 to theannual financial statements of the Fund for the year ended June 30, 2016.

Accordingly, the provision for SWWF is being made by the Funds on a daily basis going forward.

In view of the above developments regarding the applicability of Federal and SWWF on Mutual Funds andconsidering the legal opinion obtained on these matters, MUFAP has recommended the following to all itsmembers on January 12, 2017:

The net effect of the above two adjustments if these had not been made on March 31, 2017 would haveresulted in decrease in the net assets value per unit of the Fund by Re. 0.30 (0.28%) per unit.

The matter was taken up by the MUFAP with the Sindh Revenue Board (SRB) collectively on behalf of variousasset management companies (including the Management Company of the Fund) whereby it was contestedthat mutual funds should be excluded from the ambit of the SWWF Act as these were not industrialestablishments but were pass through investment vehicles and did not employ workers. The SRB held thatmutual funds were included in the definition of financial institutions as per the Financial Institution (Recovery ofFinances) Ordinance, 2001 and were, hence, required to register and pay SWWF under the SWWF Act.

the entire provision against the Federal WWF held by the CISs till June 30, 2015, to be reversed onJanuary 12, 2017; and

the provision in respect of SWWF should be made on a prudent basis with effect from the date ofenactment of the SWWF Act, 2014 (i.e. starting from May 21, 2015) on January 12, 2017.

The above decisions were communicated to the SECP and the Pakistan Stock Exchange Limited on January12, 2017. The SECP vide its letter dated February 1, 2017 has advised MUFAP that the adjustments relating tothe above should be prospective and supported by adequate disclosures in the financial statements of theCISs/ mutual funds. Accordingly, necessary adjustments in this respect have been recorded in the books of theFunds on January 12, 2017.

21

Notes to the Condensed Interim Financial InformationFor The Nine Months Ended March 31, 2017 (Un-Audited)

10. EARNING PER UNIT

Earning per unit (EPU) has not been disclosed as in the opinion of the management, determination of cumulativeweighted average number of outstanding units for calculating EPU is not practiceable.

11. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

11.1

11.2 The transactions with connected persons are in the normal course of business, at contracted rates.

11.3

March 31, March 31,2017 2016

Transactions during the period

Faysal Asset Management Limited (Management Company)Remuneration of Management Company 11,302,050 8,275,977 Sales tax on management fee 1,469,267 1,158,637 Reimbursement of expense to the Management Company 713,619 -

Faysal Bank Limited (Group company / Associated Company)Redemption of nil units (2016: 883,046 units) - 90,000,000 Issue of 1,477,739 units (2016: Nil) 155,000,000 - Return on PLS savings accounts 159,379 - Bank charges 15,554 -

Central Depository Company of Pakistan Limited -(Trustee of the Fund)Remuneration of Trustee 1,202,028 974,511 Sales tax on Trustee fee 156,264 136,432 Settlement charges 12,610 17,368

Faysal Bank Limited Staff Provident Fund Issue of 1,898,614 units (2016: Nil) 200,000,000 -

There is no change in the status of the case pending with Sindh High Court in respect of amended assessment underSection 122 of the Income Tax Ordinance, 2001 for tax year 2012 and Commissioner Inland Revenue’sappeal beforethe Appellate Tribunal Inland Revenue as reported in note 19 to the annual financial statements of the Fund for theyear ended June 30, 2016.

Connected persons / related parties include Faysal Asset Management Limited being the ManagementCompany, Central Depository Company of Pakistan Limited being the Trustee, other collective investmentschemes managed by the Management Company, Faysal Asset Management Limited - Staff Provident Fund,Faysal Asset Management Limited - Staff Gratuity Fund, Faysal Bank Limited, Faysal Bank Limited - StaffProvident Fund, Faysal Bank Limited - Staff Gratuity Fund and other entities under common management and /or directorship and the directors and officers of the Management Company and the Trustee.

The details of significant transactions carried out by the Fund with connected persons / related parties andbalances with them at period end are as follows:

--------(Un-Audited)-------------

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

22

Notes to the Condensed Interim Financial InformationFor The Nine Months Ended March 31, 2017 (Un-Audited)

(Un-Audited) (Audited)March 31, June 30,

2017 2016

Outstanding balances

Faysal Asset Management Limited (Management Company)Remuneration payable to the management Company 1,597,830 930,111 Sales tax on management fee payable 207,716 130,217 Reimbursement of expense payable to the Management Company 713,619 427,907

Faysal Bank Limited (Group company / Associated Company)Balance in PLS savings accounts 4,382,174 151,732 Return receivable on PLS savings accounts 7,126 4,263 Payable against redemption of units - 62,000,000 Units in issue 1,818,788 (June 30, 2016: 341,049) 193,173,350 34,759,713

Faysal Bank Limited Staff Provident Fund Units in issue 1,898,614 (June 30, 2016: Nil) 201,651,794 -

Faysal Money Market Fund

Receivable against sale of units - 80,084,675

Central Depository Company of Pakistan Limited -(Trustee of the Fund)Remuneration payable to the Trustee 158,389 100,701 Sales tax payable on Trustee fee 20,592 14,099 Security deposit 100,000 100,000

Directors and Key Management Personnel of theManagement CompanyUnits in issue 1,127 units (June 30, 2016: 1,233 units) 119,699 125,644

Units holders having 10% or more units

Units in issue nil units (June 30, 2016: 665,908 units) - 67,869,397 Profit receivable - 1,294

* Unit holdings as at March 31, 2017 is less than 10%.

12. FAIR VALUE OF FINANCIAL INSTRUMENTS

Burj Bank Limited*

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

IFRS 13 establishes a single source of guidance under IFRS for all fair value measurements anddisclosures about fair value measurement where such measurements are required as permittedby other IFRSs. It defines fair value as the price that would be received to sell an asset or paid totransfer a liability in an orderly transaction between market participants at the measurement date(i.e. an exit price). Adoption of IFRS 13, has not affected the condensed interim financialinformation.

Financial assets which are tradable in an open market are revalued at the market pricesprevailing on the date of statement of assets and liabilities. The estimated fair value of all otherfinancial assets and financial liabilities is considered not significantly different from book value.

23

Notes to the Condensed Interim Financial InformationFor The Nine Months Ended March 31, 2017 (Un-Audited)

Level 1: Quoted prices in active markets for identical assets or liabilities;

Level 2:

Level 3: Those with inputs for the asset or liability that are not based on observable market data(unobservable inputs).

The following table shows financial instruments recognized at fair value, analyzed between those whose fair value is based on:

Those involving inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly(as prices) or indirectly (derived from prices); and

Level 1 Level 2 Level 3 Total

Financial assets measured at fair value

At fair value through profit or loss - held-for-trading

Sukuk certificates 202,932,045 - - 202,932,045 - 202,932,045 - 202,932,045

Financial assets not measured at fair value

Advance against subscription of sukuk - 210,000,000 - 210,000,000 Bank balances - - 703,214,055 703,214,055 - - - - Deposits and other receivables - 9,255,401 - 9,255,401 - - - - Certificate of Musharika 90,000,000 - - 90,000,000 - - - -

292,932,045 219,255,401 703,214,055 1,215,401,501 - 202,932,045 - 202,932,045

Level 1 Level 2 Level 3 Total

Financial assets measured at fair value

At fair value through profit or loss - held-for-trading

Sukuk certificates 232,347,153 - - 232,347,153 - 232,347,153 232,347,153

Financial assets not measured at fair value

Sukuk certificates 50,000,000 - - 50,000,000 - - - - Bank balances and term deposit receipt - - 265,947,795 265,947,795 - - - - Advance against subscription of sukuk - 75,000,000 - 75,000,000 - - - - Deposits and other receivables - 8,827,588 - 8,827,588 - - - - Receivable against sale of units - 80,084,675 - 80,084,675 - - - -

282,347,153 163,912,263 265,947,795 712,207,211 - 232,347,153 - 232,347,153

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

June 30, 2016Carrying amount Fair value

Investments

Deposits and other

receivablesCash and cash

equivalents Total

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

March 31, 2017Carrying amount Fair value

Investments

Deposits and other

receivablesCash and cash

equivalents Total----------------------------- (Rupees) -----------------------------

24

Notes to the Condensed Interim Financial InformationFor The Nine Months Ended March 31, 2017 (Un-Audited)

Financial liabilities not measured at fair valuePayable to the Management Company 1,805,546 - - - - Remuneration payable to the Trustee 178,981 - - - - Accrued and other liabilities 1,854,264 - - - - Payable against redemption of units - - - - -

3,838,791 - - - -

Financial liabilities not measured at fair valuePayable to the Management Company 1,488,235 - - - - Remuneration payable to the Trustee 114,800 - - - - Accrued and other liabilities 12,723,156 - - - - Payable against redemption of units 62,000,000 - - - -

76,326,191 - - - -

13. EXENSE RATIO

14. GENERAL

Figures are rounded off to the nearest Rupee.

15. DATE OF AUTHORISATION FOR ISSUE

(Management Company)

The fund has not disclosed the fair values of all other finanacial assets and liabilities as their carrying amounts are reasonableapproximation of their fair values.

SECP has introduced "expense ratio" vide amendments in NBFC Regulations dated November 25, 2015, whereby,the total expense ratio of an income scheme shall be capped at 2% of average daily net assets value of thescheme. The regulation further states that for the purpose of expense ratio, expenses incurred in relation to anygovernment levy on funds such as sales tax, federal excise duty, SECP fee, etc. shall be excluded while calculatingexpense ratio. Furthermore, under NBFC Regulation 60(3)(s), wherein the Management Company is allowed tocharge their cost to Collective Investment Schemes (CIS) in respect of fees and expenses related to registrarservices, accounting, operations and valuation services related to that CIS, the maximum cost that can be chargedin this regard is up to 0.1% of the average annual net assets of that CIS or actual, whichever is less. Accordingly,this represents the amount receivable from the Management Company to maintain the expense ratio of the Fundwithin the prescribed limits. The total expense ratio of the Fund is 2.35% which includes 0.42% representinggovernment levies and SECP fee.

This condensed interim financial information was authorized for issue on _________________________ by theBoard of Directors of the Management Company.

For Faysal Asset Management Limited

Fair valueMarch 31, 2017

Level 3 TotalLevel 1 Level 2Carrying Amount

June 30, 2016Fair value

TotalCarrying Amount Level 1 Level 2 Level 3

_____________________ ___________________ __________________Chief Executive Officer Director Director

April 28, 2017

25

26

27

28

27.680.43

28.11-

28.11108.93

21.63

(4.21)

17.42

-

17.42

112.73

60.18(19.64)

40.54-

40.54108.93

55.88

(12.32)

43.56

-

43.56

112.73

March 312016 2017

March 312016 2017