FUND MANAGERS REPORT

JULY 2010

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 Market Review & Outlook
Fund Managers Report - July 2010

From the CIO’s Desk

The month of July kicked off the new fiscal year where the major highlight of the month came right at the end when the Central Bank halted the 20-month (250bps - since Nov-
08) monetary easing cycle and announced a 50 bps increase in the discount rate to 13 percent. The SBP's decision came as a surprise in terms of its timing, as most market
participants were expecting a status-quo in the recently announced MPS. However, resurgence in inflation, fiscal imbalances and pressure from the donor agencies in our opinion
prompted the Central Bank to take the decision.

KSE reacted to the unexpected hike in discount rate and shed 1.38% in a day post the announcement, overshadowing the notable performance during the month (best YTD
month with 8.2% gain). Despite the ongoing concerns regarding the CGT, the market remained buoyant on the back of continued foreign interest (FPI: Net Inflow of USD 42mn
in July, 40% up MoM), better corporate result expectations and buzz regarding the introduction of leverage product. Going forward, progress on the leverage product and talks
with IMF (to be held in August) over the release of the next tranche will be the important events to watch out for, in terms of future market direction.

Improvements on the macro economic front continued, albeit at a slower pace recently. Current account deficit for FY'10 closed at USD 3.5bn, 62% lower on Y-o-Y basis, on
the back of lower trade deficit (which shrank by 10.5% Y-o-Y to USD 15.32bn) and highest ever remittances of USD 8.9bn in FY'10. This was 14% higher compared to the previous
highest amount of USD 7.8 billion received in FY'09. LSM sector recorded exceptional recovery by registering 4.7%Y-o-Y growth in 11mFY'10 on the back of remarkable recovery
in the automobile sector. However, rising power & energy crisis and fiscal imbalances will be key challenges for the LSM sector going forward. CPI inflation continued with its
downward trend and CPI for the month of June 2010 was recorded at 12.69% against 13.07% in May and 13.27% in April, 2010. However, the SBP in order to counter the risk
of resurgence in inflation and fiscal slippage and possibly the idea of paving the way for smooth receipt of the IMF tranche raised the policy rate by 50bps in an unexpected move.
We believe timely realization of committed foreign inflows and trend in inflation will drive the SBP's stance on the discount rate front going forward.

The month of July'10 saw the international investor's sentiment turn. June'10 painted a gloomy picture and with fears of double dip recession in developed economies, investors
flocked to safety. However, the markets saw more of an appetite for risky assets from investors as both the developed and emerging equity markets went up by around 8% in
July'10. The earnings season in the US and the European Banks stress tests dominated the sentiment this month. US giants such as Apple, HP and Microsoft posted impressive
and above expectations results. The result of the banks' stress test which assessed banks' ability to survive future economic shocks also brought some good news as 84 out of
the 91 banks cleared the test. On the economic policy front, inflation continues to be a significant threat for the developing economies of the Asia Pacific region. To counter
this threat, the Reserve Bank of India increased its repo rate by 25bps to 5.75%. This was India's fourth interest rate increase in 2010. We continue to be comfortable with our
portfolio of international investments and are confident that these investments will continue to improve the risk-adjusted return of our funds.

On the fixed income front, the month was stained by asset pricing issues and hence there was increased volatility. We continue to recommend our valued investors to ride-out
this phase of volatility and keep a long term stance on our income funds in order to benefit from the investment strategies of these funds. For short-term investors, our money
market fund-ULPF will continue to deliver returns in-tandem with the market returns. The recent hike in discount rate will eventually translate into higher fund returns given the
low weighted average time to maturity of underlying assets and the prospective opportunity to place the funds at higher rates subsequently. For the Equity investors, we reiterate
our stance to maintain long term position as both USF and UCIF are well placed given their quality portfolio in both domestic and international equities.

Money Market Review & Outlook Equity Market Review & Outlook
Developments during the month Developments during the month
The SBP has increased the discount rate from 12.50% to 13.00% citing concerns over persistent The "Chief of the Army Staff" was granted a 3-year tenure extension till 2014. The move exhibits
inflation and fiscal weakness which overshadowed improvement in the external current account the strong trust and relationship between GoP and Army, the two main power-houses of governance
deficit and macro-economic recovery. in Pakistan.
SBP conducted a PIB Auction on July 22, 2010 with a target of PkR20bn. Market participation was SECP-KSE body agreed on concept paper for leverage product. Significant efforts are still required
PkR19.9bn but at exceptionally higher rates which led the SBP to scrap the auction. before the modalities of the product are finalized; however, once launched, the leverage product
SBP conducted T-bills auction twice with a total target of PkR 185bn. PkR229.9bn was accepted will provide the much needed liquidity to the market
against a maturity of PkR 174.1bn. The latest T-Bill Cut-off yields are as follows: 3 months remained The National Electric Power Regulatory Authority (Nepra) has once again increased power tariff by
unchanged at 12.1036%, 6 months increased by 7 bps to 12.3707% and 12 months increased by 4 8.58%, from PkR 7.46 / unit to PkR 8.10 per unit. This is in addition to 18.7% tariff hike in FY'10; this
bps to 12.4568%. will add more inflationary pressure to the economy.
Secondary market yields of T-Bills at the close of the month stood at: Cement prices rose to PkR 316 per bag from lows of PkR 250 per bag. Current price recovery at
3 months: 12.08% - 12.02p.a. domestic level will change the sector fortune from 1QFY'11 onwards as it will help maintain healthier
6 months: 12.30% - 12.25% p.a. margins in times of rising input costs.
12 months: 12.40% - 12.37% p.a. The State Bank of Pakistan (SBP) granted No Objection Certificate (NOC) to Faysal Bank Limited for
Trading in the 10 year PIB issue was witnessed in the range of 13.02% - 12.99%. the purchase of Royal Bank of Scotland Pakistan operation. Faysal Bank Limited (FABL) has already
Overnight, 3 months and 6 months repo-rates stood in the range of 12.00% - 12.40%, 12.10% - entered into an agreement to acquire 99.37 percent interest in the Pakistan franchise of Royal Bank
12.15% and 12.10% - 12.25% respectively. of Scotland (RBS Pakistan) for a cash consideration of EUR 41 million (equivalent to Rs 4.298 billion
@ Rs 2.52 per share).
Economic Figures recently released The Oil and Gas Development Company Limited (OGDCL) has successfully tested its exploratory well,
CPI Inflation stood at 12.69% for the month of June'10 down from 13.07% for the month of May'10. Shekhan-1, in Kohat Block of Khyber-Pakhtunkhwa. The Company carries a post discovery stake of
SBP disclosed provisional figure of USD3.5bn for current account deficit for FY'10 versus USD9.3bn 30 per cent in the block.
for FY'09 - a decline of 62% Y-o-Y. Urea off-take for 6mCY10 stood at 3.03mn tons (up 2.3%Y-o-Y) while DAP off-take stood at 326k
Remittances from overseas Pakistanis rose to USD 8.9bn in FY'10 from USD 7.8bn in FY'09. tons (down 31%Y-o-Y).
The total liquid foreign exchange reserves of Pakistan stood at USD16.6bn (as of 23 July 2010).
Total deposits of banks stood at PKR4.65tn on July 23, 2010 while gross advances stood at PKR3.31tn. Results
UBL - 1HCY10 EPS: PkR 4.25 | Cash Dividend: 10%
Outlook MCB - 1HCY10 EPS: PkR 10.45 | Cash Dividend: 30%
Going forward we expect that the yields (PKRV and KIBOR) to increase in aftermath of 50bps increase FFC - 1HCY10 EPS: PkR 7.52 | Cash Dividend: 35%
in discount rate. T-bills are expected to remain in the range of 12.40% - 12.20% for 3 months, ENGRO - 1HCY10 EPS: PkR 10.37 | Cash Dividend: 20%
12.60% - 12.50% for 6 months and 12.80% - 12.60% for 12 months tenor. DAWH - 1HCY10 EPS: PkR 10.84 | Cash Dividend: 20%
Overall, we expect the market to remain liquid if foreign inflows through various donor agencies and FFBL - 1HCY10 EPS: PkR 1.84 | Cash Dividend: 13%
the FoDP materialize in the near future or else the SBP will manage liquidity at appropriate levels.
Outlook
Despite volatility, the KSE100 index closed the first month of fiscal year 2011 in positive territory as
clarifications on "Capital Gains Tax" and a new leverage product started to come through. Key sources
of risk on equity valuation are any further hikes in the discount rate which will negatively impact business
activity and investor confidence; persistently high inflation, increased government borrowings in the
wake of slow foreign inflows and damages inflicted by record floods all over Pakistan. The above factors
will dictate the future economic policy of the Government. The volumes are expected to remain thin
during the coming month of Ramadan.
On the international front, corporate results for Q2 2010 have been above analysts' forecasts - especially
the tech leaders like Apple, Microsoft and Hewitt Packard posted impressive earnings. However, the
global growth has cooled off and high national deficits have become a concern -equity markets have
reacted accordingly and have exhibited intense volatility. Developed economies have entered a prolonged
/ slow economic recuperation stage due to subdued demand and shift in saving patterns. However, we
expect fiscally responsible economies like India, Germany and France to continue exhibiting strong
growth numbers. Portfolios of our equity oriented funds will continue to target any growth opportunities
offered by various global economies.
 UBL Liquidity Plus Fund UBL L IQUIDI T Y P LUS F UND

Fund Managers Report - July 2010

Performance Review & Outlook

During July'10, Fund size grew by an impressive 41% M-o-M to close at PKR 11.05bn. The Fund posted an impressive return of 11.25% p.a., significantly higher than the previous month
return of 10.58% p.a. as well as benchmark return of 8.5% p.a. Since its inception, the Fund has consistently provided market competitive returns to its investors while keeping a low risk
profile.

Placement with commercial banks decreased to 12% against 24% (of net assets) at end of the previous month; this was attributable to both maturities and increase in Fund size. On the
other hand, the lending to DFIs remained more or less static. The reduction in exposure on financial institutions translated into increased exposure in treasury bills where investment rose
to 82% as against 70% (of net assets) at the close of the previous month. Most of the treasury bills exposure was in shorter tenors which has helped to buffer the immediate negative
price impact of the interest rate hike on the overall portfolio.

The weighted average maturity of the Fund stood at 73 days versus 67 days at the end of the previous month. Going forward, the interest rate hike has started to and will continue to
translate into higher secondary market rates - given the favorable maturity profile of this fund in such an environment, the re-investment of a significant portion of the overall portfolio within
a period of less than 2 months at higher rates will bode well for the overall yield of the fund.

Investment Objective ULPF v/s Benchmark

ULPF is an open-end Money Market Fund, investing in a
15.0%
diversified portfolio of low risk assets. The Fund seeks to provide ULPF Benchmark
attractive daily returns while maintaining comparatively high
liquidity.
13.0%

11.0%

Fund Performance
9.0%
ULPF Benchmark
Since Inception (p.a.) 10.55% 8.50%
July 2010 (p.a.) 11.25% 8.50% 7.0%
1-Jul-10
2-Jul-10
3-Jul-10
4-Jul-10
5-Jul-10
6-Jul-10
7-Jul-10
8-Jul-10
9-Jul-10
10-Jul-10
11-Jul-10
12-Jul-10
13-Jul-10
14-Jul-10
15-Jul-10
16-Jul-10
17-Jul-10
18-Jul-10
19-Jul-10
20-Jul-10
21-Jul-10
22-Jul-10
23-Jul-10
24-Jul-10
25-Jul-10
26-Jul-10
27-Jul-10
28-Jul-10
29-Jul-10
30-Jul-10
31-Jul-10
Calendar Year 2010 (p.a.)* 10.70% 8.48%
Standard Deviation* 0.09% 0.46%
Sharpe Ratio** -17.65 -7.84
Weighted Average 73 days
Time to Maturity Asset Allocation Portfolio Quality
Jun 30 Jul 31
Cash, 2.3%
Fund Size (PKR) 7,838 11,047 40.93%
Others,
NAV (PKR) 100.0104 ^ 100.9202 0.91% -0 .3%
AA-, 8.1%
* 12m Trailing ^NAV adjusted for PkR2.9449/unit dividend payout at June-end Placements
with
** 12m Trailing, 3M PKRV yield is used as a risk-free rate
Banks, 12.2%
AA, 7.2% AAA, 81.8%
T- Bills, 81.8%

Placements
AA+, 2.8%

Fund Information with

DFIs, 4.1%

Fund Type Open-end

Fund Categorization Money Market
Risk Profile Low
Launch Date June 21, 2009 Asset Allocation (% of NAV) May10 June10 July10
Benchmark 50% 3M PKRV + 50% 3M TDR (with AA
rated or better bank) - Net of expenses Placements with Banks 0% 24% 12%
Listing Islamabad Stock Exchange (ISE)
Placements with DFIs 4% 3% 4%
Trustee Central Depository Company (CDC)
Auditor Ernst & Young Ford Rhodes Sidat Hyder Placements with NBFCs 0% 0% 0%
Management Co.Rating AM2 (JCR-VIS)
T-Bills 91% 70% 82%
Fund Rating AA Plus (JCR-VIS)
Minimum Investment Rs. 500 Cash 5% 3% 2%
Load Nil (Front-end) Nil (Back-end)
Dealing Days Monday to Friday
Others 0% -1% 0%
Cut off Times Issuance: 1:00 p.m. (Mon-Thu) Leverage 0% 0% 0%
4:30 p.m. (Friday)
Redemption: 9:30 a.m. (Mon-Fri)
Pricing Mechanism Backward Key Interest Rates
Management Fee 1.25% p.a.
KIBOR (1M, 6M, IY)* 12.11% 12.26% 12.48% Discount Rate 13.00%
Fund Manager Junaid Qamar
Investment Committee Mir Muhammad Ali, T-Bill Cut-Off (3M, 6M, 12M) 12.10% 12.37% 12.46% CPI(Jun) Y-o-Y Basis 12.69%
Members Hasnain Raza Nensey, Rahim Khakiani,
Aly Osman, Ali Alvi, Junaid Qamar PIB Cut-Off (3Yr, 5Yr, 10Yr) 12.49% 12.55% 12.68%
Repo Rate (Overnight, 1M, 3M)* 11.86% 11.98% 12.09% * Average during month

Monthly Yield Aug09 Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 Apr10 May10 June10 July10 YTD
ULPF 9.50% 10.38% 10.56% 11.37% 10.72% 10.65% 10.05% 10.64% 10.86% 10.79% 10.58% 11.25% 11.25%
Benchmark 8.27% 8.65% 8.81% 8.64% 8.76% 8.41% 8.47% 8.56% 8.43% 8.40% 8.37% 8.50% 8.50%
12 Month Rolling Yield
ULPF 9.74% 9.93% 10.08% 10.32% 10.38% 10.42% 10.38% 10.41% 10.45% 10.48% 10.52% 10.62%
Benchmark 8.21% 8.34% 8.45% 8.48% 8.53% 8.51% 8.51% 8.51% 8.51% 8.50% 8.47% 8.54%
 United Growth & Income Fund UNI TED GROW T H & IN COME F UND

Fund Managers Report - July 2010

Performance Review & Outlook

At July'10-end, UGIF's exposure to corporate bonds and placements with financial institutions stood at 66% and 11% (of net assets), up from 57% and 8% last month respectively - the
rise driven by decline in Fund size. T-Bill exposure was reduced in order to cater to certain redemptions and build a cash reserve which stood comfortably at 19% (of net assets) at end
July'10.

With respect to the TFC / Sukuk portfolio, certain top 10 holdings were successfully restructured during July'10. This has reduced the uncertainty associated with these holdings and we
are of the strong view that these entities are poised to perform well in the years to come given that their debt profiles have been aligned with the prospective cash flows in a challenging
business environment. As the overall business climate improves and performance of these companies picks up, we are confident that in the next 12 months period, rating upgrades of
many entities will be on the cards as well which in turn will improve asset values.

Given the investment objective of the Fund, we are also on the look out for bargains in the corporate debt market as mis-priced securities may continue to be available across various rating
bands where we are permitted to invest. The underlying premise obviously is that the business prospects and cash flows of such companies will be strong enough to warrant our investment
in these securities at competitive prices. In the interim period, we will aim to deploy any excess liquidity in short dated treasury bills which can provide competitive returns and also sufficient
liquidity in order to switch out opportunistically into other asset classes.

Investment Objective UGIF v/s Benchmark

UGIF is an open-end Income Fund, investing in medium to long-
term fixed income Instruments. The Fund seeks to generate 14% UGIF Benchmark

superior, long-term, risk adjusted returns keeping a balance of 11%

income and growth while preserving capital over the long-
8%
term.
5%
Yield

2%

Fund Performance -1%

-4%
UGIF Benchmark
-7%
Since Inception (p.a.) 8.84% 11.34%
-10%
1-Jul -10

3-Jul -10

5-Jul -10

7-Jul -10

9-Jul -10

11-Jul -10

13-Jul -10

15-Jul -10

17-Jul -10

19-Jul -10

21-Jul -10

23-Jul -10

27-Jul -10

29-Jul -10

31-Jul -10
July 2010 (p.a.)

25-Jul-10
-8.47% 12.21%
Calendar Year 2010 (p.a.) 3.80% 12.31%
Standard Deviation* 2.02% 0.19%
Sharpe Ratio** -2.54 1.70
Weighted Average 1.91 Years Portfolio Quality Top Ten TFC / Sukuk Holdings
Time to Maturity Agritech Limited-TFC (14-01-08) 9%
Below-
Jun 30 Jul 31 Investment - World Call Communication(07-10-08) 8%
BBB -, 0.134 Grade, 0.11
Fund Size (PKR) 8,231 6,480 -21.27% Pak Mobile Communication (28-10-08) 5%
BBB, 0.003 UnRated, 0.0
Pak Mobile Communication (01-10-07) 4%
NAV (PKR) 97.5987 ^ 96.8681 -0.75% 82
A-, 0.007 Maple Leaf Cement Sukuk 4%
AAA, 0.016
*12M Trailing ^ NAV adjusted for PkR 3.2216 / unit Dividend payout at June-end
A, 0.118
Agritech Limited-TFC (30-11-07) 4%
**12M Trailing & 3M PKRV yield is used as a risk-free rate
Kohat Cement Company Sukuk (13-12-2007) 3%
A+, 0.072
AA+, 0.248 Jahangir Siddiqui & Co. (04-07-07) 3%
Engro Corporation - PPTFC I (18-3-08) 3%
Fund Information AA-, 0.139 AA, 0.071
Century Board & Paper Mills Ltd (25-09-07) 3%
Fund Type Open-end
Fund Categorization Aggressive Income
Risk Profile Moderate Asset Allocation (% of NAV) May 10 June 10 July 10
Launch Date March 2, 2006
6 Month Rolling Average of 6M KIBOR
Term Finance Certificates / Sukuks 53% 57% 66%
Benchmark
Listing Karachi Stock Exchange (KSE) Placements with Banks 5% 4% 5%
Trustee Central Depository Company (CDC) Placements with DFIs 0% 0% 2%
Auditor Ernst & Young Ford Rhodes Sidat Hyder
Placements with NBFCs 4% 4% 4%
Management Co.Rating AM2 (JCR-VIS)
Fund Rating A (JCR-VIS)
Cash 24% 23% 19%
Minimum Investment Rs. 500 T-Bills 11% 12% 0%
Load (Income Units) 1.5% (Front-end) PIBs 1% 1% 1%
Load (Growth Units) Stepped-down structure (Back-end) Others 4% 0% 3%
Dealing Days Monday to Friday Leverage 0% 0% 0%
Cut off Times 1:00 p.m. (Mon-Fri)
Pricing Mechanism Forward
Management Fee 1.5% p.a. Disclosure of Non-Compliant Investments as at July 31, 2010
Fund Manager Junaid Qamar Name of Investment Type Value before Provision held Value after % of Net % of Gross
Investment Committee Mir Muhammad Ali, provision (if any) provision Assets Assets
Members Hasnain Raza Nensey, Rahim Khakiani, Chenab Limited Preference Shares 4,721,595 - 4,721,595 0.07% 0.06%
Aly Osman, Ali Alvi, Junaid Qamar
Pak Elektron Ltd. Preference Shares 11,250,000 - 11,250,000 0.17% 0.15%
Azgard Nine Ltd. Preference Shares 850,000 - 850,000 0.01% 0.01%
Shakarganj Ltd. Preference Shares 32,312,640 32,312,640 - 0.00% 0.00%

Monthly Yield Aug09 Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 Apr10 May10 June10 July10 YTD
UGIF 8.43% 11.85% 14.66% 20.44% 3.44% 7.59% 8.02% -11.68% 15.08% 5.42% 15.14% -8.47% -8.47%
Benchmark 12.81% 12.69% 12.65% 12.55% 12.39% 12.36% 12.40% 12.38% 12.34% 12.27% 12.22% 12.21% 12.21%
12 Month Rolling Yield
UGIF 6.73% 6.64% 6.70% 15.44% 14.93% 13.71% 12.67% 8.77% 8.89% 8.28% 9.26% 6.99%
Benchmark 13.81% 13.84% 13.81% 13.71% 13.56% 13.37% 13.18% 13.00% 12.82% 12.66% 12.53% 12.44%
 United Stock Advantage Fund Uni t e d Sto ck Ad v ant a g e F un d

Fund Managers Report - July 2010

Performance Review & Outlook

USF generated an impressive return of 10.08% during July'10, thus outperforming its Benchmark (KSE-100) by 1.37%. Exposure in local equities and International Investments stood at 86% and 13%
(of net assets) respectively at month-end with cash holdings making 1% of the portfolio.

Implementation of CGT negatively impacted the trading volumes during early part of the month. However, foriegn inflows and news regarding the launch of a leverage product boosted investor
sentiment, leading to 8.18% return for KSE100 index during the month. Index heavy stocks and companies with diversified business portfolios were the main drivers in the rally. Keeping in mind the
recent hike in Discount Rate, the Fund Manager continues to be cautiously positive on selective cash rich companies across different sectors with a focus on generating high risk adjusted returns. The
result season for peroid ending June'10 is in full swing. Fertilizer sector announced above expectation earnings on the back of hike in urea prices in response to gas curtailment issue. Banking sector
announced mixed earnings with MCB announcing subdued earnings on back of pension fund reversals and Meezan bank beating analyst expectations due to impressive deposit growth and other
income. Cement sector is expected to report healthy earnings and margins supported by recent rise in cement prices. Within Oil & Gas sector, PPL has announced earnings inline with expectations and
OGDC is likely to follow through with similar earning patter. POL is expected to surprise investors with impresive earnings driven by volumetric growth in production figures.

Better than expected earnings in the US and results of the banks' stress test in Europe boosted investor sentiment in international markets - a sharp contrast to the weak sentiment in June'10. The
European market where USF has considerable allocation was up 11.5% during the month. We believe that the nervousness of investors in the Europe and a subsequent weakness in Euro could actually
benefit export countries such as France and Germany. We have a combined allocation of over 6% in these two countries. Overall, USF benefited from its allocation in the international markets as
the investments returned 10.48%, compared to the MSCI ACWI return of 8.25% in July'10.

Investment Objective USF v/s Benchmark

USF is an open-end Equity Fund, investing primarily in equities
listed on the KSE. The Fund seeks to maximize total returns and 12%
USF KSE-100
outperform it’s benchmark by investing in a combination of 10%
securities offering longterm capital gains and dividend yield
potential. 8%
Yield

6%

Fund Performance 4%

USF Benchmark 2%

Since Inception 10.04% -1.41% 0%

July 2010 10.08% 8.18%

Calendar Year 2010 3.61% 12.04% -2%
01-Jul-10

06-Jul-10

16-Jul-10

21-Jul-10

28-Jul-10

31-Jul-10
11-Jul-10
Standard Deviation* 17.62% 18.46%
Sharpe Ratio** 0.76 1.30
Beta* 0.90 1.00
Alpha*^ -8.12%
R-Square^^ 94%
Price-to-Earning Ratio 7.5x 7.2x Top Ten Equity Holdings
Dividend Yield 6.3% 8.8%
Value at Risk -1.46% -1.38% Pakistan Petroleum Ltd 8% Allied Bank 6%
Expense Ratio 3.29% N/A
Pakistan Oilfields 8% MCB Bank 6%
June 30 July 31 8% Attock Petroluem 6%
Hub Power Company
Fund Size (PKR) 1,042mn 1,127mn 8.16%
Thal Limited 7% Engro Chemicals 6%
NAV (PKR) 31.92^^^ 35.14 10.08%
Fauji Fertilizer 6% Nishat Mills 4%
*12M Trailing. **12M Trailing, 3M PKRV yield used as Risk-Free rate. ^ Alpha measures the risk adjusted
performance of the fund vs. the benchmark.^^ R-Square measures the correlation between the benchmark
and the fund; Range 0%-100% with 100% being the best.^^^ NAV adjusted for PkR48.44/unit dividend

Fund Information
Asset Allocation (% of NAV) May 10 June 10 July10
Fund Type Open-end
Fund Categorization Equity Equities 74% 85% 86%
Risk Profile Moderate/High
Launch Date August 4, 2006 International Investments 20% 13% 13%
Benchmark KSE-100 Index
Cash 6% 2% 1%
Listing Karachi Stock Exchange (KSE)
Trustee Central Depository Company (CDC) Leverage - - -
Auditor KPMG-Taseer Hadi & Co.
Management Co.Rating AM2 (JCR-VIS)
Fund Rating MFR-4-STAR (JCR-VIS)
Minimum Investment Rs. 500 Sector Allocation (% of NAV) May 10 June 10 July 10
Load 2.5% (Front-end)
Dealing Days Monday to Friday Oil & Gas 24% 24% 28%
Cut off Times 4:00 p.m. Chemicals 17% 20% 18%
Pricing Mechanism Forward
Management Fee 3% p.a.
Banks 12% 14% 14%
Fund Manager Asif Mobin Electricity 8% 10% 8%
Investment Committee Mir Muhammad Ali,
Members General Industrials 6% 6% 7%
Hasnain Raza Nensey, Rahim Khakiani,
Aly Osman, Ali Alvi, Asif Mobin Others 6% 11% 12%

Monthly Yield Aug09 Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 Apr10 May10 June10 July10 YTD
USF 10.36% 9.35% -2.15% 1.70% 0.89% 0.97% -0.08% 4.34% 0.41% -10.57% -0.43% 10.08% 10.08%
Benchmark 12.29% 7.76% -2.04% 0.52% 1.96% 2.65% 0.45% 5.87% 2.45% -10.56% 4.24% 8.18% 8.18%
12 Month Rolling Yield
USF -0.84% 9.00% 7.84% 10.02% 80.54% 84.17% 71.35% 44.72% 39.73% 22.10% 24.11% 25.54%
Benchmark -5.78% 1.75% -0.26% 0.21% 60.05% 79.19% 68.62% 48.37% 44.79% 28.17% 35.74% 36.12%
 United Composite Islamic Fund UNITED COMPOSITE ISLAMIC FUND

Fund Managers Report - July 2010

Performance Review & Outlook

During July'10, the Fund generated a yield of 5.74%, outperforming the benchmark yield of 5.18%. The Fund size stood at PkR 550mn at month-end. During the month under review, the local market
posted healthy gains triggered in large part by expectations of re-introduction of a leverage product, continued FPI flow and upcoming results season despite concerns regarding the implementation of
Capital Gains Tax. On the monetary front, the SBP unexpectedly raised the Discount Rate in its monetary policy review citing resurgence in inflationary pressures- this development has the potential to
dent both business and consumer confidence and impact the economic recovery. The Fund manager continues to maintain a portfolio, albeit with a cautious stance, of cash rich companies better poised
to withstand a higher interest rate environment.

Exposure to local equities stood at 58% of net assets (up from 48%) at the end of June'10. The Fund manager preferred a heavier allocation to Oil and Gas, Chemicals and Electricity sectors. Chemicals
(fertilizer sector) reported strong earnings for 1HCY10 on the back of higher urea prices as fertilizer manufacturers passed-on the impact of gas curtailment. Within Oil & Gas (E&P) sector, PPL announced
earnings inline with expectations and OGDC is likely to follow suit. POL is expected to surprise the market with strong earnings driven by volumetric growth in production figures. Our broad capital market
allocations as of month end were: 58% in equity, 33% in Sukuks, 8% in International Equities and 1% in Cash which was trimmed so as to deploy funds when the market regained momentum in
expectation of strong corporate results.

International equity markets performed well in July'10 owing to better than expected earning reports in the US markets. Many of the worries that emanated from Europe eased during the month, as
recent economic growth reports from Germany and U.K. came in stronger than expected and consequently credit default spreads have also reduced. Finally, a few recent U.S. housing reports were
slightly encouraging, and the recent decline in gold prices was seen by some as signaling an increase in investor confidence. UCIF's international exposure's performance was inline with the Shariah
Compliant MSCI World Islamic Index and gained 6.56% during the month as compared to 6.77%% for the latter.

Investment Objective UCIF v/s Benchmark

UCIF is an open-end Fund which offers it's investors an 6% UCIF Benchmark
opportunity to invest in a diversified portfolio of Shariah
Compliant investments. The Fund seeks to maximize medium 5%

to long-term returns for a given level of risk. 4%

3%
Yield

2%
Fund Performance
UCIF Benchmark 1%

Since Inception 16.26% 38.88% 0%

July 2010 5.74% 5.18%

-1%
Calendar Year 2010 3.24% 12.45%
1-Jul-10
2-Jul-10
3-Jul-10
4-Jul-10
5-Jul-10
6-Jul-10
7-Jul-10
8-Jul-10
9-Jul-10
10-Jul-10
11-Jul-10
12-Jul-10
13-Jul-10
14-Jul-10
15-Jul-10
16-Jul-10
17-Jul-10
18-Jul-10
19-Jul-10
20-Jul-10
21-Jul-10
22-Jul-10
23-Jul-10
24-Jul-10
25-Jul-10
26-Jul-10
27-Jul-10
28-Jul-10
29-Jul-10
30-Jul-10
31-Jul-10
Standard Deviation* 10.95% 9.45%
Sharpe Ratio** 0.37 1.57

June 30 July 31
Top Ten Equity Holdings
Fund Size (PKR) 524 mn 550 mn 4.96% Pakistan State Oil (9%), Hub Power Company (9%), Pakistan Oilfields (9%), Fauji Fertilizer Company (7%),
NAV (PKR) 66.88 ^ 70.72 5.74% Pakistan Petrolum (7%), Thal Limited (5%), ICI Pakistan (5%), Meezan Bank (5%), Indus Motor Company (3%),
* 12M Trailing ^ NAV adjusted for PkR 28.3 / unit Dividend Payout at June-end
Dawood Hercules (1%)
** 12M Trailing, 3M-PKRV used as Risk-free rate

Asset Allocation (% of NAV) May 10 June 10 July 10

Equities 47% 48% 58%
Fund Information
Sukuks 36% 36% 33%
Fund Type Open-end
Fund Categorization Islamic Balanced International Investments 12% 8% 8%
Risk Profile Moderate Cash 4% 8% 1%
Launch Date December 24, 2006
Benchmark 50% KMI-30 Index + 20% Avg. 1Yr Leverage - - -
Placement Rate of 3 Islamic Banks
+30% 6M KIBOR
Listing Islamabad Stock Exchange (ISE)
Sector Allocation (% of NAV) May 10 June 10 July 10
Trustee Central Depository Company (CDC) Oil & Gas 20% 20% 24%
Auditor KPMG-Taseer Hadi & Co.
Chemicals 10% 8% 13%
Shariah Advisory Board Mr. Hassan Kaleem & Mr. Najeeb Khan
Management Co.Rating AM2 (JCR-VIS) Electricity 7% 8% 9%
Fund Rating MFR- 4-STAR (JCR-VIS) General Industrials 4% 5% 5%
Minimum Investment Rs. 500
Load 2.5% (Front-end), Nil (Back-end)
Banks 4% 4% 5%
Dealing Days Monday to Friday Others 1% 3% 3%
Cut off Times 4:00 p.m.
Pricing Mechanism Forward Disclosure of Non-Compliant Investments as at July 31, 2010
Management Fee 3% p.a.
Name of Investment Type Value before Provision held Value after % of Net % of Gross
Fund Manager Wahaj Aslam Assets
provision (if any) provision Assets
Investment Committee Mir Muhammad Ali,
Members Hasnain Raza Nensey, Rahim Khakiani, Kohat Cement Sukuk Sukuk 36,225,000 - 36,225,000 6.58% 6.40%
Aly Osman, Ali Alvi, Wahaj Aslam Sitara Energy Sukuk Sukuk 35,921,947 - 35,921,947 6.53% 6.34%
Maple Leaf Cement Sukuk-I Sukuk 42,484,063 7,723,938 34,760,125 6.31% 6.14%
Orix Leasing Pakistan Sukuk Sukuk 11,849,485 - 11,849,485 2.15% 2.09%
Ittehad Chemicals Sukuk 19,444,400 - 19,444,400 3.53% 3.43%

Monthly Yield Aug09 Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 Apr10 May10 June10 July10 YTD
UCIF 7.69% 5.00% -1.32% 1.32% -0.49% 0.77% -0.27% 2.90% 0.94% -6.93% 0.50% 5.74% 5.74%
Benchmark 4.40% 4.78% -0.06% 1.09% 2.11% 1.89% 2.27% 4.12% 1.56% -4.29% 1.38% 5.18% 5.18%
12 Month Rolling Yield
UCIF 6.06% 12.81% 14.20% 23.42% 54.65% 54.89% 48.21% 30.26% 29.45% 15.78% 16.36% 16.14%
Benchmark 10.12% 15.41% 15.11% 15.76% 47.87% 46.04% 44.01% 30.05% 32.03% 24.05% 27.55% 26.90%
 United Islamic Income Fund United Islamic Income Fund

Fund Managers Report - July 2010

Performance Review & Outlook

At July'10-end, the Fund's asset allocation comprised of 65% Corporate & Government Backed Sukuks, 28% Government Securities (Ijarah Sukuk) and 3% (of net assets) held as cash. Approximately
40% of the net assets are invested in AAA category which mainly comprises of government securities and Sukuks backed by GoP thus indicating higher portfolio quality.

The Fund returned negative 4.71% p.a. verses the benchmark return of 7.54% p.a. whereas the fund size closed at PkR 783 Mn. The fixed income markets were surprised by the recent tightening
stance adopted by the SBP where contagion fears of resurging inflation led the policy makers to unveil a hike of 50bps in the Discount Rate. The corporate bond market activity stayed muted during
the month. However, we firmly believe in the fundamentals of such high-yielding debt instruments - it may take a period of stabilization for the high-yield market to make a comeback in terms of market
activity, but the fact remains that there is significant value in these and over a longer term, the return potential after recent price adjustments is significant.

Our continued focus on maintaining above average position in cash and government backed instruments has enabled us to effectively honor all our commitments. Going forward, the exposure to
corporate Sukuks (fairly priced) will be trimmed opportunistically while searching for stronger credits offering potential price gains. Also, the Fund manager will be closely monitoring indicators to judge
if the recent policy rate hike was a pre-cautionary step by SBP to curtail inflation or start of a new tightening cycle. Nevertheless, the Fund's portfolio is positively positioned as a significant portion of
assets comprises of floater investments which automatically adjust at regular intervals in lockstep with a benchmark rate (KIBOR and /or T-Bills).

UIIF v/s Benchmark

Investment Objective
12.0% UIIF Benchmark
UIIF is an open-end Shariah Compliant Fund which endeavors 9.0%
to provide attractive returns and a high level of total return to 6.0%
investors by investing in Shariah Compliant Income instruments
3.0%
while taking into account capital security and liquidity
0.0%
considerations.
-3.0%

-6.0%

-9.0%
Fund Performance -12.0%
UIIF Benchmark -15.0%
Since Inception (p.a.) 5.29% 7.93% -18.0%
1-Jul-10

3-Jul-10

5-Jul-10

7-Jul-10

9-Jul-10

11-Jul-10

13-Jul-10

15-Jul-10

17-Jul-10

19-Jul-10

21-Jul-10

23-Jul-10

25-Jul-10

27-Jul-10

29-Jul-10

31-Jul-10
July 2010 (p.a.) -4.71% 7.54%
Calendar Year 2010 (p.a.)* 2.88% 7.38%
Standard Deviation* 1.94% 0.29%
Sharpe Ratio** -4.17 -15.34
Weighted Average 2.52 Years Portfolio Quality Top Ten Sukuk Holdings
Time to Maturity
AAA AA+ GoP Ijara Sukuk - III 26%
June 30 July 31 39.95% 0.37%
Kohat Cement Sukuk 12%
AA
Fund Size (PKR) 890 mn 783 mn -12.02% 7.97%
Karachi Shipyard & Engineering Works - II 10%
AA-
NAV (PKR) 98.7894 ^ 98.3851 -0.41% 4.42% Maple Leaf Cement Sukuk 10%
*12M trailing **12M trailing, 3M-PKRV used as Risk-free rate A+ Century Paper and Board Sukuk 9%
9.72%
^ Dividend Adjustment - PKR 3.23 per unit
Unrated
Pak American Fertilizer Sukuk 8%
15 .47% A
1.86%
Orix Leasing Sukuk 7%
A-
Below 1.60% Sitara Chemical Sukuk - III 4%
Investment
Fund Information Grade Security Leasing Sukuk - II 3%
18 .62%
GoP Ijara Sukuk - IV 2%
Fund Type Open-end
Fund Categorization Islamic Aggressive Income
Risk Profile Moderate
Launch Date October 20, 2007 Asset Allocation (% of NAV) May 10 June 10 July 10
Benchmark Average of 6 Month Placement Rate of 3
Sukuks 56% 59% 65%
Islamic Banks
Listing Islamabad Stock Exchange (ISE) GoP Ijara Sukuk 30% 28% 28%
Trustee Central Depository Company (CDC)
Auditor KPMG-Taseer Hadi & Co. Cash 11% 10% 3%
Shariah Advisory Board Mr. Hassan Kaleem & Mr. Najeeb Khan
Others 3% 3% 4%
Management Co.Rating AM2 (JCR-VIS)
Minimum Investment Rs. 500 Placements with Banks & DFIs 0% 0% 0%
Load (Income Units) 1% (Front-end)
Load (Growth Units) Stepped-down structure (Back-end) Leverage - - -
Dealing Days Monday to Friday
Cut off Times 1:00 p.m.
Pricing Mechanism Forward Key Interest Rates
Management Fee 1.25% p.a.
Fund Manager Wahaj Aslam KIBOR (6M, 1Y, 3Y)* 12.26% 12.48% 12.67%
Investment Committee Mir Muhammad Ali, Avg I.B. Placement Rate (1M, 3M, 6M, 12M) 6.42% 6.81% 7.54% 8.56%
Members Hasnain Raza Nensey, Rahim Khakiani,
Aly Osman, Ali Alvi, Wahaj Aslam Repo Rate (Overnight, 1M, 3M)* 11.86% 11.98% 12.09%
Discount Rate 13.00% CPI (June) Y-o-Y Basis 12.69%
* Average during month

Monthly Yield Aug09 Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 Apr10 May10 June10 July10 YTD
UIIF 11.04% 13.58% 10.87% 7.35% -12.03% 0.87% 2.11% -7.61% 19.97% 4.15% 8.29% -4.71% -4.71%
Benchmark 7.97% 7.90% 7.85% 7.87% 7.90% 7.18% 7.28% 7.09% 7.51% 7.51% 7.54% 7.54% 7.54%
12 Month Rolling Yield
UIIF 3.36% 3.38% 3.40% 13.34% 11.44% 8.73% 7.65% 4.96% 6.11% 6.05% 5.44% 4.04%
Benchmark 8.70% 8.66% 8.61% 8.54% 8.47% 8.32% 8.19% 8.02% 7.90% 7.79% 7.68% 7.59%
 UBL Capital Protected Fund II
Fund Managers Report - July 2010

Performance Review & Outlook

During July'10, UCPF-II yielded 1.72% versus the benchmark return of 2.19%. The local equity market was subdued during the first two months since the Fund launch. Therefore, till June-
end, the Fund manager preffered a low equity exposure of 5% (of net assets) while maintaining a 10% (of net assets) cash holding to be deployed as opportunities arise in the equity market.
Opportunities became available in the local equity market during July'10 and the Fund manager raised the equity exposure to 12% in order the maximize the return to the investors. The
exposure is distributed between the banking and fertilizer sectors where scripts offer significant fundamental value and the volatility also offers trading opportunities.

The capital protection feature of the Fund is in place through the Term deposit placements with AA rated banks for an aggregate of 84% of net assets as at end July'10.

Investment Objective UCPF-II v/s Benchmark

UCPF-II is an open-end Capital Protected Fund. The investment UCPF-II
objective of the Fund is to protect the principal investment of Benchmark
the investors by investing major portion of assets in TDR with 2.50%
Scheduled Bank(s) and use the remaining funds to aggressively
participate in equity markets and any other SECP permitted 2.00%
investments, to maximize yield over the Fund's life.
1.50%

1.00%
Fund Performance
Yield

UCPF II Benchmark 0.50%

Since Inception 2.04% 2.66%

0.00%
July 2010 1.72% 2.19%

-
Calendar Year 2010 2.04% 2.66% -0.50%

21-Jul-10
1-Jul-10

June 30 July 31
Fund Size (PKR) 199mn 202mn 1.51%
NAV (PKR) 100.00 ^ 101.72 1.72%

* 12M Trailing ^ NAV adjusted for PkR 0.3122 / unit Dividend payout in June-end
** 12M Trailing, 3M-PKRV used as Risk-free rate. Top Ten Equity Holdings

National Bank of Pakistan 6% Dawood Hercules 6%

Fund Information Asset Allocation (% of NAV) May10 June10 July10

Fund Type Open-end Equities - 5% 12%
Fund Categorization Capital Protected
Risk Profile Low TDR 85% 85% 84%
Launch Date 23-May-10
Cash 15% 10% 4%
Benchmark 85% TDR Rate + 15% KSE 30 Index
Listing Islamabad Stock Exchange (ISE) Leverage - - -
Trustee MCB Financial Services
Auditor Ernst & Young Ford Rhodes Sidat Hyder
Management Co.Rating AM2 (JCR-VIS)
Fund Rating N/A
Minimum Investment Rs. 500 Sector Allocation (% of NAV) May10 June10 July10
Load 5% (Back-end)
Personal Goods 0% 5% 0%
Dealing Days Monday to Friday
Cut off Times 4:00 p.m Commercial Banks 0% 0% 6%
Pricing Mechanism Forward Chemical 0% 0% 6%
Management Fee 1.5% p.a.
Fund Manager Asif Mobin
Investment Committee Mir Muhammad Ali,
Members Hasnain Raza Nensey, Rahim Khakiani,
Aly Osman, Ali Alvi, Asif Mobin

Monthly Yield Aug09 Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 Apr10 May10 June10 July10 YTD
UCPF-II N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.17% 0.15% 1.72% 1.72%
Benchmark N/A N/A N/A N/A N/A N/A N/A N/A N/A -0.84% 1.29% 2.19% 2.19%
 UBL Retirement Savings Fund
Fund Managers Report - July 2010

Performance Review & Outlook

UBL Fund Managers launched the UBL Retirement Savings Fund (URSF) on 19 May 2010. The aim of this Fund is to provide a secure retirement income to investors by focusing on long-term
capital appreciation. URSF maintains three sub-portfolios namely "Debt Sub-Fund", "Money Market Sub-Fund" and "Equity Sub-Fund". Combinations of these sub-funds allow for providing
retirement investment solutions to investors of varying risk profiles.

The Fund Manager continues to gradually build the Equity Sub-Fund towards its target allocation. At the end of July'10, the Equity sub-Fund was 53% invested in local equities while the
remaining portion was held as cash and Treasury Bills. The Equity Sub-Fund will focus on investing predominantly in quality blue chip companies with potential for sustainable dividend payout
and long-term growth. Oil & Gas, Chemicals and Banking continued to be the three favoriate sectors with a significant overall allocation as these sectors offer a healthy combination of
potential capital gains and dividend income. The Equity Sub-Fund returned 4.81% during the month.

With regard to the Debt and Money Market Sub-Funds, the Fund Manager's main focus is on building and maintaining a high credit quality portfolio. As a result, majority of the assets are
invested in Government Securities and with no allocation to Term Finance Certifcates. The Debt Sub-Fund and Money Market Sub-Fund generated an annualised return of 9.40% p.a. and
9.83% p.a. respectively during the month.

Investment Objective URSF Debt (% of NAV) May10 June10 July10

URSF is an open-end fund that aims to provide a secure source Treasury Bills 60% 88% 96%
of savings and regular income after retirement to the Term Finance Certificates - - -
Participants. The Participants would contribute to the Fund
during their working life and would typically withdraw from Tenor Placements with Banks - - -
the Fund on or after retirement. Cash 40% 12% 4%

Fund Performance URSF Money Market (% of NAV) May10 June10 July10

Money
Debt Market Equity Treasury Bills 96% 89% 96%
Since Inception 6.38% p.a. 7.12% p.a. 4.00% Tenor Placements with Banks - - -
July 2010 9.4% p.a. 9.83% p.a. 4.81% Cash 4% 11% 4%
Calendar Year 2010 6.38% p.a. 7.12% p.a. 4.00%
Expense Ratio 1.75% 1.74% 1.77%
Fund Size (PKR) 34.24mn 34.50mn 32.33mn
URSF Equity (% of NAV) May10 June10 July10
NAV (PKR) 101.42 101.58 104.00
Equities 18% 39% 53%
Treasury Bills - - 6%
Cash & Equivalent 82% 61% 41%

Equity Sector Allocation (% of NAV) May10 June10 July10

Fund Information Oil & Gas 7% 11% 14%

Fund Type Open-end

Chemicals 6% 11% 13%
Fund Categorization Voluntary Pension Scheme Banks - 5% 8%
Risk Profile Investor dependent
Launch Date 19-May-10 Electricity 3% 5% 6%
Benchmark N/A Personal Goods - 4% 5%
Listing Karachi Stock Exchange (KSE)
General Industrials 2% 2% 3%
Trustee MCB Financial Services
Auditor KPMG-Taseer Hadi & Co. Construction & Materials - - 2%
Pension Manager Rating AM2 (JCR-VIS) Pharma & Biotech - - 2%
Fund Rating N/A
Minimum Investment Rs. 100 Industrial Engineering - 1% 1%
Load 3% (Front-end) Automobile & Parts - - -
Dealing Days Monday to Friday
Cut off Times 4:00 p.m
Pricing Mechanism Forward
Management Fee 1.5% p.a.
Fund Manager Asad Raza Bhojani Equity Top Ten Holding(% of NAV)
Investment Committee Mir Muhammad Ali,
Members Pakistan Oilfields 5% Thal 3%
Hasnain Raza Nensey, Rahim Khakiani,
Aly Osman, Asad Raza Bhojani, Ali Alvi ICI Pakistan 5% Pakistan State Oil 3%
Fauji Fertilizer 5% Pakistan Petroleum 3%
Hub Power Company 4% Nishat Mills 3%
Allied Bank 4% Bank Al Habib 3%

Monthly Yield Aug09 Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 Apr10 May10 June10 June10 YTD
Debt (%p.a.) N/A N/A N/A N/A N/A N/A N/A N/A N/A 1.49% 6.96% 9.40% 9.40%
Money Market (%p.a.) N/A N/A N/A N/A N/A N/A N/A N/A N/A 1.55% 8.57% 9.83% 9.83%
Equity N/A N/A N/A N/A N/A N/A N/A N/A N/A -0.71% -0.06% 4.81% 4.81%
 UBL Islamic Retirement Savings Fund
Fund Managers Report - July 2010

Performance Review & Outlook

UBL Fund Managers launched the UBL Islamic Retirement Savings Fund (UIRSF) on 19 May 2010. The aim of this fund is to provide a secure Shariah compliant retirement income to investors
by focusing on long-term capital appreciation. UIRSF maintains three sub-portfolios namely "Debt Sub-Fund", "Money Market Sub-Fund" and "Equity Sub-Fund" investments. Combinations
of these sub-funds allow for providing Shariah-compliant retirement investment solutions to investors of varying risk profiles.

The Fund Manager continues to gradually build the Equity Sub-Fund towards its target allocation. At the end of July'10, the Equity Sub-Fund was 51% invested in local Shariah-compliant
equities while the remaining portion was held as cash. The Equity Sub-Fund will focus on investing in quality shariah-compliant companies with potential for sustainable dividend payout
and long-term growth. The Equity Sub-Fund returned 3.97% during the month of July'10.

The Debt Sub-Fund enjoys high credit quality as it is fully invested in Ijarah Sukuk issued by the Government of Pakistan. The Sub-Fund achieved an annualised return of 9.24% p.a. during
July 2010. The universe of Shariah-compliant money market instruments is limited under the prescribed Investment Policies and therefore the reliance on PLS deposits is significant in the
Money Market Sub-Fund. Given the overall high level of liquidity in the Islamic banking channel, rates are relatively subdued in the current environment; the Money Market Sub-Fund achieved
a modest annualised return of 4.54% p.a. during the month.

Investment Objective UIRSF Debt (% of NAV) May10 June10 July10

UIRSF is a Shariah compliant open-end fund that aims to provide Ijarah Sukuk 85% 99% 95%
a secure source of savings and regular income after retirement Sukuk - - -
to the Participants. The Participants would contribute to the
Fund during their working life and would typically withdraw Tenor Placements with Islamic Banks - - -
from the Fund on or after retirement. Cash 15% 1% 5%

Fund Performance
Money
UIRSF Money Market (% of NAV) May10 June10 July10
Debt Market Equity
Ijarah Sukuk - - -
Since Inception 5.86% p.a. 2.52% p.a. 2.60% Tenor Placements with Islamic Banks - 39% 39%
July 2010 9.24% p.a. 4.54% p.a. 3.97% Cash 100% 61% 61%
Calendar Year 2010 5.86% p.a. 2.52% p.a. 2.60%
Expense Ratio 1.77% 1.78% 1.77%
Fund Size (PKR) 31.17mn 30.6mn 31.77mn
NAV (PKR) 101.30 100.57 102.60 UIRSF Equity (% of NAV) May10 June10 July10
Equities 22% 39% 51%
Cash & Equivalent 78% 61% 49%

Equity Sector Allocation (% of NAV) May10 June10 July10

Chemicals 7% 15% 18%
Fund Information
Oil & Gas 8% 13% 16%
Fund Type Open-end
Fund Categorization Shariah Compliant Pension Scheme Electricity 4% 4% 5%
Risk Profile Investor dependent Banks - 2% 4%
Launch Date 19-May-10
Benchmark N/A General Industrials 3% 3% 4%
Listing Karachi Stock Exchange (KSE) Construction & Materials - 0% 2%
Trustee MCB Financial Services
KPMG-Taseer Hadi & Co. Pharma & Biotech - 0% 2%
Auditor
Pension Manager Rating AM2 (JCR-VIS) Industrial Engineering - 1% 1%
Fund Rating N/A
Personal Goods - 0% 0%
Minimum Investment Rs. 100
Load 3% (Front-end) Automobile & Parts - 1% 0%
Dealing Days Monday to Friday
Cut off Times 4:00 p.m
Pricing Mechanism Forward
Management Fee 1.5% p.a.
Fund Manager Asad Raza Bhojani Equity Top Ten Holding(% of NAV)
Investment Committee Mir Muhammad Ali,
Members Fauji Fertilizer 8% Meezan Bank 4%
Hasnain Raza Nensey, Rahim Khakiani,
Aly Osman, Asad Raza Bhojani, Ali Alvi Pakistan Oilfields 7% Thal Limited 4%
ICI Pakistan 7% Pakistan State Oil 3%
Hub Power Company 5% FFC Bin Qasim 2%
Pakistan Petroleum 4% Lucky Cement 2%

Monthly Yield Aug09 Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 Apr10 May10 June10 July10 YTD
Debt (%p.a.) N/A N/A N/A N/A N/A N/A N/A N/A N/A -1.54% 8.08% 9.24% 1.24%
Money Market (%p.a.) N/A N/A N/A N/A N/A N/A N/A N/A N/A -0.78% 2.90% 4.54% 4.54%
Equity N/A N/A N/A N/A N/A N/A N/A N/A N/A -0.89% -0.43% 3.97% 3.97%
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Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell
any fund. All investments in mutual funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependant on forces and
factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results.