CORPORATE INFORMATION

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2 CORPORATE INFORMATION Board of Directors Tariq Kirmani Chief Financial Officer Al-Ameen Islamic Aggressive Income Fund Chairman Umair Ahmed Launch Date: 20 October 2007 Yasir Qadri Chief Executive Officer Company Secretary Al-Ameen Islamic Cash Fund Fawaz Taj Siddiqui Launch Date: 17 September 2012 Syed Furrukh Zaeem Director Al-Ameen Shariah Stock Fund Launch Date: 24 December 2006 Zia Ijaz Registered Office Director 4th Floor, STSM Building, Al-Ameen Islamic Asset Allocation Fund Beaumont Road, Civil Lines, Launch Date: 10 December 2013 Zulfiqar Alavi Karachi, Pakistan. Director (Previously: 8th Floor, State Life Building Al- Ameen Financial Planning Fund No.1, I. I Chundrigar Road, Launch Date: 23 June 2015 Karachi, Pakistan.) Mirza Muhammad Sadeed UBL Retirement Savings Fund Hassan Barlas - Director Launch Date: 10 May 2010 Shabbir Hussain Hashmi Corporate Office Al-Ameen Islamic Retirement Savings Fund Director 8th Floor, Executive Tower, Launch Date: 10 May 2010 Dolmen City Building, Block-4, Clifton, Karachi, Pakistan. Al-Ameen Islamic Dedidcated Equity Fund Audit Committee Tel: (92-21) Launch Date: 05 Jan 2016 Shabbir Hussain Hashmi Fax: (92-21) Chariman Zia Ijaz Operations Office Conventional Investment Plans Member 4th Floor, STSM Building, UBL Mahana Munafa Plan Beaumont Road, Civil Lines, Syed Furrukh Zaeem Karachi, Pakistan. UBL Children Savings Plan Member UAN: (92-21) Fax: (92-21) UBL Equity Builder Plan Zulfiqar Alavi Member UBL Wealth Builder Plan Date of incorporation of the Management Mirza Muhammad Sadeed Company/ Pension Fund Manager Hassan Barlas Incorporated in Pakistan on Islamic Investment Plans Member 3 April 2001 as a Public Limited Al-Ameen Mahana Munafa Plan Company under the Companies Ordinance, 1984 Al-Ameen Children Savings Plan Risk Management Committee Zulfiqar Alavi Management Quality Rating Al-Ameen Equity Builder Plan Chairman AM2++ High Management Quality by JCR-VIS Credit Rating Company Syed Furrukh Zaeem (Harmonised with effect from May 04, 2016) Member Funds Under Management Yasir Qadri UBL Liquidity Plus Fund Member Launch Date: 21 June 2009 Tariq Kirmani UBL Government Securities Fund Member Launch Date: 27 July 2011 Mirza Muhammad Sadeed UBL Money Market Fund Hassan Barlas Launch Date: 14 October 2010 Member UBL Income Opportunity Fund HR & Compensation Committee (Formerly UBL Financial Sector Bond Fund) Tariq Kirmani Launch Date: 29 March 2013 Chairman Shabbir Hussain Hashmi Member United Growth & Income Fund Launch Date: 2 March 2006 Zia Ijaz Member UBL Gold Fund Yasir Qadri Launch Date: 13 February 2013 Member UBL Asset Allocation Fund Shariah Advisory Board Mufti Muhammad Hassaan Kaleem Launch Date: 20 August 2013 UBL Stock Advantage Fund Member Launch Date: 4 August 2006 Al-Ameen Wealth Builder Plan Al-Ameen Hajj Savings Plan Mufti Muhammad Najeeb Khan Al-Ameen Islamic Sovereign Fund Member Launch Date: 07 November 2010

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14 ULPF UBL Liquidity Plus Fund INVESTMENT OBJECTIVE ULPF is an open-end Money Market Fund, investing in a diversified portfolio of low risk assets. The Fund seeks to provide attractive daily returns while maintaining comparatively high liquidity. Management Company Trustee Distribution Company Auditors Bankers Management Co.Rating Fund Rating UBL Fund Managers Limited Central Depository Company of Pakistan Limited 99-B, Block-B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi. Tel: (9221) United Bank Limited (for detail of others, please visit our website: BDO Ebrahim & Co., Chartered Accountants United Bank Limited Bank Alfalah Limited Faysal Bank Limited Allied Bank Limited Habib Bank Limited Islamic Banking Habib Metropolitan Bank Limited Askari Bank Limited Meezan Bank Limited AM2++ (JCR VIS) AA (JCR VIS)

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17 UBL LIQUIDITY PLUS FUND CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) AS AT DECEMBER 31, 2016 December 31, 2016 June 30, 2016 (Unaudited) (Audited) Note (Rupees in '000) ASSETS Bank balances 4 2,080,524 1,975,376 Investments 5 509, ,211 Mark-up / interest receivable 3,428 41,771 Advance tax 6 1,945 1,937 Deposits, prepayments and other receivables 689 3,039 TOTAL ASSETS 2,596,259 2,620,334 LIABILITIES Payable to UBL Fund Managers Limited - Management Company 7 2,104 6,141 Payable to Central Depository Company of Pakistan Limited - Trustee Payable to Securities and Exchange Commission of Pakistan 1,351 3,920 Provision for Workers' Welfare Fund 8 28,386 28,386 Accrued expenses and other liabilities 9 63,996 79,657 TOTAL LIABILITIES 96, ,426 NET ASSETS 2,500,127 2,501,908 UNIT HOLDERS FUND (AS PER STATEMENT ATTACHED) 2,500,127 2,501,908 CONTINGENCIES AND COMMITMENTS (Number of Units) NUMBER OF UNITS IN ISSUE 24,258,961 24,888, (Rupees) NET ASSETS VALUE PER UNIT The annexed notes from 1 to 17 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) --- SD SD --- CHIEF EXECUTIVE OFFICER DIRECTOR

18 UBL LIQUIDITY PLUS FUND CONDENSED INTERIM INCOME STATEMENT (UNAUDITED) FOR THE HALF YEAR AND QUARTER ENDED DECEMBER 31, 2016 Half year ended Quarter Ended December 31, December 31, December 31, December 31, Note (Rupees in '000) (Rupees in '000) INCOME Financial income 115, ,262 51, ,093 Capital (loss) / gain on sale of investments - net (863) 2,565 (99) 2,138 Unrealised gain / (loss) on revaluation of investments at fair value through profit or loss - net 1 (218) 28 (3,721) Other income Total income 114, ,748 51, ,649 EXPENSES Remuneration of UBL Fund Managers Limited - Management Company 16,158 31,415 6,517 15,969 Sales tax on Management Company's remuneration 2,100 4, ,236 Provision for indirect duties and taxes 9-5,730-2,913 Allocated expenses 1, Remuneration of Trustee 1,953 3, ,579 Annual fee of Securities and Exchange Commission of Pakistan 1,351 2, ,197 Bank charges Auditors' remuneration Brokerage and settlement expenses Fees and subscription Legal and professional fees Printing expenses Total operating expenses 24,522 48,873 10,369 24,992 Operating income for the period 90, ,875 40,983 81,657 Element of loss and capital losses included in prices of units issued less those in units redeemed - net (28,696) (30,026) (22,913) (35,056) Provision for Workers' Welfare Fund Net income for the period before taxation 61, ,849 18,070 46,601 Taxation Net income for the period after taxation 61, ,849 18,070 46,601 Earnings per unit 13 The annexed notes from 1 to 17 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) --- SD SD --- CHIEF EXECUTIVE OFFICER DIRECTOR

19 UBL LIQUIDITY PLUS FUND CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE HALF YEAR AND QUARTER ENDED DECEMBER 31, 2016 Half year ended Quarter ended December 31, December 31, December 31, December 31, (Rupees in '000) (Rupees in '000) Net income for the period after taxation 61, ,849 18,070 46,601 Other comprehensive income Items that may be reclassified subsequently to income statement Items that will not be reclassified subsequently to income statement Total comprehensive income for the period 61, ,849 18,070 46,601 The annexed notes from 1 to 17 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) --- SD SD --- CHIEF EXECUTIVE OFFICER DIRECTOR

20 UBL LIQUIDITY PLUS FUND CONDENSED INTERIM DISTRIBUTION STATEMENT (UNAUDITED) FOR THE HALF YEAR ENDED DECEMBER 31, 2016 Half year ended December 31, December 31, (Rupees in '000) Undistributed income brought forward comprising of: Realised income 75,020 72,332 Unrealised loss (1,443) (124) Undistributed income brought forward 73,577 72,208 Net income for the period after taxation 61, ,849 Undistributed income carried forward 135, ,057 Undistributed income carried forward comprising of: Realised income 135, ,275 Unrealised income / (loss) 1 (218) 135, ,057 The annexed notes from 1 to 17 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) --- SD SD --- CHIEF EXECUTIVE OFFICER DIRECTOR

21 UBL LIQUIDITY PLUS FUND CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED) FOR THE HALF YEAR ENDED DECEMBER 31, 2016 Half year ended December 31, December 31, (Rupees in '000) CASH FLOWS FROM OPERATING ACTIVITIES Net income for the period before taxation 61, ,849 Adjustments for: Financial income (115,580) (215,401) Unrealised (gain) / loss on revaluation of investments at fair value through profit or loss - net (1) 218 Capital loss / (gain) on sale of investments - net 863 (2,565) Element of loss and capital losses included in the prices of units issued less those in units redeemed - net 28,696 30,026 Provision for indirect duties and taxes - 5,730 (86,022) (181,992) (24,476) (43,143) Decrease in assets Investments - net 87,676 (307,581) Deposits, prepayments and other receivables 2, ,026 (307,480) Decrease in liabilities Payable to UBL Fund Managers Limited - Management Company (4,037) (818) Payable to Central Depository Company of Pakistan Limited - Trustee (27) (12) Annual fee payable to Securities and Exchange Commission of Pakistan (2,569) (4,952) Accrued expenses and other liabilities (15,661) (33,751) (22,294) (39,533) Cash generated from / (used in) operating activities 43,256 (390,156) Profit received on bank balances and investments 153, ,182 Taxes paid (8) - Net cash generated from / (used in) operating activities 197,171 (166,974) CASH FLOWS FROM FINANCING ACTIVITIES Receipts from issuance of units 5,664,199 7,334,238 Payment against redemption of units (5,756,222) (6,736,346) Net cash (used in) / generated from financing activities (92,023) 597,892 Net increase in cash and cash equivalents 105, ,918 Cash and cash equivalents at beginning of the period 1,975,376 3,780,986 Cash and cash equivalents at end of the period 2,080,524 4,211,904 CASH AND CASH EQUIVALENTS Bank balances 2,080,524 1,831,904 Placements and term deposit receipts - 2,380,000 2,080,524 4,211,904 The annexed notes from 1 to 17 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) --- SD SD --- CHIEF EXECUTIVE OFFICER DIRECTOR

22 UBL LIQUIDITY PLUS FUND CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUNDS (UNAUDITED) FOR THE HALF YEAR ENDED DECEMBER 31, 2016 Half year ended December 31, December 31, (Rupees in '000) Net assets at the beginning of the period 2,501,908 4,465,663 Rs per unit (June 30, 2015: Rs per unit) Issue of 55,823,076 units (December 31, 2015: 72,440,018 units) 5,664,199 7,334,238 Redemption of 56,453,051 units (December 31, 2015: 66,190,090 units) (5,756,222) (6,736,346) Element of loss and capital losses included in the prices of (92,023) 597,892 2,409,885 5,063,555 units issued less those in units redeemed - net 28,696 30,026 Capital (loss) / gain on sale of investments - net (863) 2,565 Unrealised gain / (loss) on remeasurement of investments at fair value through profit or loss - net 1 (218) Other income for the period 62, ,502 61, ,849 Net assets at end of the period Rs per unit (December 31, 2015: Rs per unit) 2,500,127 5,232,430 The annexed notes from 1 to 17 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) --- SD SD --- CHIEF EXECUTIVE OFFICER DIRECTOR

23 UBL LIQUIDITY PLUS FUND NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL INFORMATION (UNAUDITED) FOR THE HALF YEAR ENDED DECEMBER 31, LEGAL STATUS AND NATURE OF BUSINESS UBL Liquidity Plus Fund (the Fund) was established under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules) as an open-end mutual fund. It was constituted under the Trust Deed, dated May 07, 2009 between UBL Fund Managers Limited (a wholly owned subsidiary company of United Bank Limited) as the Management Company, a company incorporated under the Companies Ordinance, 1984 and Central Depository Company of Pakistan Limited (CDC) as the Trustee. The Trust Deed has also been approved by the Securities and Exchange Commission of Pakistan (SECP). The registered office of the Management Company is situated at 4th Floor STSM Building Beaumont Road, Civil Lines, Karachi. Previously it was situated at 8th Floor, State Life Building No. 1, I.I. Chundrigar Road, Karachi, Pakistan. The Management Company of the Fund is registered with the SECP as a Non-Banking Finance Company under the NBFC Rules. The Fund is a money market scheme and units of the Fund are listed on the Pakistan Stock Exchange Limited (formerly Islamabad Stock Exchange (Guarantee) Limited merged/integrated with Karachi Stock Exchange (Guarantee) Limited and Lahore Stock Exchange on January 11, 2016). Units are offered for public subscription on a continuous basis. The units are transferable and can also be redeemed by surrendering them to the Fund at the option of the unit holder. The Fund is categorised as an open-ended money market scheme in accordance with Circular 7 of 2009 issued by the SECP. The principal activity of the Fund is to seek and provide attractive daily returns while maintaining comparatively high liquidity by investing in diversified portfolio of low risk assets. Title to the assets of the Fund are held in the name of the CDC as the Trustee of the Fund. 2 BASIS OF PREPARATION 2.1 Statement of compliance These condensed interim financial informations have been prepared in accordance with the requirements of the International Accounting Standard 34 - Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance, 1984, the requirements of the Trust Deed, Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the Rules), and Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the Regulations) and directives issued by the Securities and Exchange Commission of Pakistan (SECP).

24 Wherever the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP differ with the requirements of the IFRS, the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP prevail. This condensed interim financial information is unaudited, however, limited scope review has been performed by the external auditors in accordance with the requirements of clause (xxi) of the Code of Corporate Governance. The disclosures made in this condensed interim financial information have, however, been limited based on the requirements of International Accounting Standard 34: 'Interim Financial Reporting'. This condensed interim financial information does not include all the information and disclosures required in a full set of financial statements and should be read in conjunction with the annual audited financial statements of the Fund for the year ended June 30, The comparative statement of asset and liabilities presented in this condensed interim financial information has been extracted from the annual audited financial statements of the Fund for the year ended June 30, 2016, whereas the comparative condensed interim income statement, condensed interim statement of comprehensive income, condensed interim distribution statement, condensed interim statement of cash flows, condensed interim statement of movement in unit holders fund are extracted from the unaudited condensed interim financial statements for the half year ended December 31, In compliance with schedule V of the NBFC Regulations the directors of the Management Company hereby declare that this condensed interim financial information gives a true and fair view of the state of the Fund s affairs as at December 31, SIGNIFICANT ACCOUNTING AND RISK MANAGEMENT POLICIES, ESTIMATES, ASSUMPTIONS AND CHANGES THEREIN The accounting policies applied for the preparation of this condensed interim financial information are the same as those applied in the preparation of the annual audited financial statements of the Fund for the year ended June 30, The preparation of this condensed interim financial information in conformity with the approved accounting standards requires management to make estimates, assumptions and use judgments that affect the application of policies and reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgments are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the period of revision. The significant estimates, judgments and assumptions made by the management in applying the accounting policies and the key sources of estimation of uncertainty were the same as those applied to the annual audited financial statements as at and for the year ended June 30, 2016.

25 The financial risk management objectives and policies are consistent with those disclosed in the annual audited financial statements of the Fund for the year ended June 30, Certain amendments to the approved accounting standards have been published and are mandatory for the Fund's accounting period beginning on or after July 1, None of these amendments are expected to have a significant effect on this condensed interim financial information. 4 BANK BALANCES Note December 31, June 30, (Unaudited) (Audited) (Rupees in '000) PLS savings accounts 4.1 2,080,520 1,975,372 Current accounts 4 4 2,080,524 1,975, Profit rates on these savings accounts range between 4% to 6.77% per annum (June 30, 2016: 4% to 6.7% per annum). This includes an amount held by a related party (United bank Limited) amounting to Rs. 2,052 million (June 30, 2016: Rs 49,297 million) on which return is earned at 5.35% to 6.77% (June 30, 2016: 4% to 5.75%) per annum. 5 INVESTMENTS Government securities designated at fair value through profit or loss Pakistan Investment Bonds ,211 Market Treasury Bills , , , Government securities designated at fair value through profit or loss Name of security Note At the Acquired Market value Market value Sold / matured At the end of beginning of during the as at December as at June during period the period the period period 31, , No. of holdings (Rupees in '000) Percentage of net assets Pakistan Investment 5.2 Bonds 3 Years 5,967-5, ,211 0% 5,967-5, ,211 0% Market Treasury 5.3 & 5.4 Bills 3 months - 48,000 48, % 6 months - 121, ,600 5, , % 1 year - 24,500 24, % - 194, ,100 5, ,673-20% 5, , ,067 5, , , % 5.2 As at June 30, 2016, Pakistan Investment Bonds (PIBs) had a face value of Rs million and carrying purchase yield ranging between 6.08% and 6.35% per annum. These PIBs matured in July 2016.

26 These represent Market Treasury Bills (MTBs) having a face value of Rs. 510 million and carrying purchase yield 5.88% per annum. These MTBs will mature till January The cost of MTBs amounted to Rs million (June 30, 2016: Nil). These Market Treasury Bills have nominal value of Rs. 100,000 each (June 30, 2016: Rs. 100,000). 6 ADVANCE TAX The income of the Fund is exempt under clause 99 of Part I of the Second schedule of the Income Tax Ordinance 2001 and funds are exempt under clause 47(B) Part IV of schedule II of Income Tax Ordinance 2001 from withholding of tax under section 151 of ITO The Federal Board of Revenue through a circular C.No.1 (43) DG (WHT)/ 2008-Vol.II R dated May 12, 2015, made it mandatory to obtain exemption certificates under section 159(1) of the Income Tax Ordinance, 2001 from Commissioner Inland Revenue. During the period various withholding agents have deducted advance tax under section 151 of the Income Tax Ordinance, The management is confident that the same shall be refunded. 7 PAYABLE TO UBL FUND MANAGERS LIMITED - MANAGEMENT COMPANY 7.1 This include reimbursement of allocated expense to the Management Company amounting to Rs million (June 30, 2016: Rs million). As per regulation 60(3)(s) of amended NBFC Regulations dated November 25, 2015, fee and expenses pertaining to registrar services, accounting, operation and valuation services related to a Collective Investment Scheme (CIS) are chargeable to the scheme, maximum up to 0.1% of the average annual net assets or the actual cost whichever is lower. Accordingly, the Management Company has charged 0.1% of the average annual net assets. As per amended NBFC regulation dated November 25, 2015 the Management Company is entitled to remuneration of an amount not exceeding 1% of average annual net assets of the Fund. The Management Company has charged management fee at the rate of 10% of gross earnings of the Fund, calculated on daily basis subject to minimum of 0.5% and maximum of 1% of average daily net assets of the Fund with effect from November 09, Previously the Management Company was entitled to charge at the rate of 10% of the gross earnings of the Fund, calculated on daily basis subject to maximum and minimum of 1% of average daily net assets. The Provincial Government of Sindh has levied Sindh Sales Tax at the rate of 13% (June 30, 2016: 14%) on the remuneration of the Management Company through the Sindh Sales Tax on Services Act, PROVISION FOR WORKERS' WELFARE FUND The Finance Act, 2008 introduced an amendment to the Workers' Welfare Fund Ordinance, 1971 (WWF Ordinance) as a result of which it was construed that all Collective Investment Schemes / Mutual Funds (CISs) whose income exceeded Rs. 500,000 in a tax year were brought within the scope of the WWF Ordinance, thus rendering them liable to pay contribution to Workers Welfare Fund (WWF) at the rate of two percent of their accounting or taxable income, whichever was higher.

27 The amendments introduced in the WWF Ordinance were challenged in various High Courts of Pakistan. The Honorable Lahore High Court and the Honorable Sindh High Court passed different judgments in respect of the validity of the amendments made through the Finance Act in relation to the WWF. Both the decisions of the Honorable Lahore High Court and the Honorable High Court of Sindh were challenged in the Honorable Supreme Court of Pakistan. During the period, the Honorable Supreme Court of Pakistan passed a judgment on November 10, 2016, declaring the insertion of amendments introduced through Finance Act, 2008 pertaining to WWF as unlawful for the reason that the WWF is not in the nature of tax and therefore, could not be introduced through money bill under the Constitution. Subsequently, the Federal Board of Revenue (FBR) has filed a review petition in the Honorable Supreme Court of Pakistan against the said judgment, which is pending adjudication. Further, as a consequence of the 18th amendment to the Constitution, levy for Sindh Workers Welfare Fund (SWWF) was also introduced by the Government of Sindh through the Sindh Workers Welfare Fund Act 2014 (SWWF Act 2014). SWWF Act 2014, enacted on May 21, 2015, requires every Industrial Establishment located in the province of Sindh and having total income of Rs. 500,000 or more in any year of account commencing on or after the date of closing of account on or after December 31, 2013, to pay two percent of its total income declared to SWWF. The said Act includes any concern engaged in the Banking or Financial Institution in the definition of Industrial Undertaking but does not define Financial Institution. The Management Company, based on an opinion obtained by the Mutual Fund Association of Pakistan (MUFAP), believed that Mutual Funds are not liable to pay SWWF under the said law, for the reason that the Mutual Funds are not financial institutions and rather an investment vehicle. However, the Sindh Revenue Board has not accepted the said position of MUFAP and as a result, MUFAP has taken up this matter with the Sindh Finance Ministry for resolution. In view of the above, MUFAP obtained a legal opinion on the applicability of WWF and SWWF on Mutual Funds, and based on such legal advice, recommended to all its members through letter dated January 12, 2017 the following: i. ii. The provision against the WWF held by the Mutual Funds till June 30, 2015 should be reversed on January 12, 2017; and Provision against SWWF, on prudent basis, should be made from the date of enactment of the SWWF Act, 2014 (i.e., May 21, 2015) with effect from January 12, The above recommendations of MUFAP were communicated to the Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange on January 12, In response to the aforementioned letter SECP vide its letter dated February 1, 2017 has advised MUFAP that the adjustments relating to the above should be made prospectively and adequate disclosure shall be made in the condensed interim financial information of mutual funds. Accordingly, subsequent to the period end, the Fund has recorded these adjustments in its books of account on January 12, The cumulative net effect of the above two adjustments if it had been made at December 31, 2016 would have resulted in increase in the net asset value per unit by Rs

28 9 ACCRUED EXPENSES AND OTHER LIABILITIES This includes provision for indirect duties and taxes amounting to Rs million. As fully disclosed in note 14.1 of the annual financial statements of the fund for the year ended June 30, On June 30, 2016 the Honorable Sindh High Court of Pakistan has passed the Judgment that after 18th amendment in Constitution of Pakistan the Provinces alone have the legislative power to levy a tax on rendering or providing services therefore chargeability and collection of Federal Excise Duty after July 01, 2011 is Ultra Vires to the Constitution of Pakistan. During the period the Federal Board of Revenue has filed an appeal with Honorable Supreme Court of Pakistan against the Judgment passed by Honorable Sindh High Court of Pakistan, which is pending adjudication. The Management Company, as a matter of abundant caution has extended the provision of Federal Excise Duty (FED) amounting to Rs million. Had the provision not been retained, the net asset value per unit of the Fund would have been higher by Rs (2.22%) per unit [June 30, 2016: Rs (2.21%) per unit.] Furthermore, after the promulgation of Finance Act , FED is no longer applicable to Collective Investment Scheme with effect from July 01, CONTINGENCIES AND COMMITMENTS There were no contingencies and commitments outstanding as at December 31, 2016 and June 30, TAXATION The Fund's income is exempt from Income Tax as per clause (99) of part I of the Second Schedule to the Income Tax Ordinance, 2001 subject to the condition that not less than 90% of the accounting income for the year as reduced by capital gains whether realized or unrealized is distributed to the unit holders in the form of cash. Further, as per Regulation 63 of the Non-Banking Finance Companies and Notified Entities Regulations, 2008, the Fund is required to distribute 90% of the net accounting income, other than capital gains to the unit holders. The Fund is also exempt from the provisions of section 113 (minimum tax) under clause 11A of Part IV of the Second Schedule to the Income Tax Ordinance. The management intends to distribute at least 90% of the aforementioned net accounting income by the year end earned by the Fund to the unit holders. Accordingly, no provision for current and deferred tax has been made in this condensed interim financial information. 12 TOTAL EXPENSE RATIO As per Directive 23 of 2016 dated July 20, 2016 issued by Securities and Exchange Commission of Pakistan the total expense ratio of the Fund is 0.69% as on December 31, 2016 and this includes 0.10% representing Sindh Sales Tax and SECP Fee.

29 13 EARNINGS PER UNIT Earnings per unit (EPU) has not been disclosed as in opinion of the Management Company the determination of the cumulative weighted average number of outstanding units is not practicable. 14 TRANSACTIONS WITH RELATED PARTIES / CONNECTED PERSONS Connected persons / related parties comprise of United Bank Limited (Holding Company of Management Company), UBL Fund Managers Limited (Management Company), Al-Ameen Islamic Financial Services (Private) Limited (Subsidiary of the Management Company), entities under common management or directorships, Central Depository Company of Pakistan Limited (Trustee) and the Directors and Officers of Management Company. Remuneration to the Management Company and the Trustee is determined in accordance with the provision of Non Banking Finance Companies Rules, 2003, Non Banking Finance Companies and Notified Entities Regulations, 2008 and the Trust Deed respectively. Other transactions with the related parties / connected persons have been carried out at agreed / commercial terms. Details of transaction with the related parties and balances with them at the half year end are as follows: Other Funds under Directors and Connected Management Associated Trustee Common Key persons / Company Companies Management Executives related parties (Rupees in '000) Transactions during the half year ended December 31, 2016 Profit on savings accounts - 2, Bank charges Units issued ,204 - Units redeemed ,810 - Purchase of securities - 4,331, , Sale of securities ,928, Remuneration 18,258-1, Allocated expenses 1, Custody fee Transactions during the half year ended December 31, 2015 Profit on savings accounts - 1, Bank charges Units issued - 22,555-1,378,242 16, ,000 Units redeemed - 105,933-1,645,454 10,841 1,043,363 Purchase of securities - 998, , Sale of securities - 498,569-1,832, Remuneration 35,813-3, Allocated expenses Custody fee Other

30 Other Funds under Directors and Connected Management Associated Trustee Common Key persons / Company Companies Management Executives related parties (Rupees in '000) Balances held as at December 31, 2016 Units held Value of units held - 11, ,744 - Bank balances - 2,052, Deposits and other receivable Remuneration payable 1, Allocated expenses payable Other payables Profit receivable - 1, Balances held as at June 30, 2016 Units held Value of units held - 11, ,111 - Bank balances - 49, Deposits Remuneration payable 3, Other payables Profit receivable Allocated expenses payable 2, FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is the amount for which an asset could be exchanged or liability can be settled, between knowledgeable willing parties in an arm's length transaction. Consequently, differences can arise between carrying values and the fair value estimates. Underlying the definition of fair value is the presumption that the Fund is a going concern without any intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms. Financial assets which are tradable in an open market are revalued at the market prices prevailing on the reporting date. The estimated fair value of all other financial assets and liabilities is considered not significantly different from the carrying value as the items are short-term in nature or periodically repriced. As per the requirements of the IFRS 7 (Financial Instruments: Disclosures) and IFRS 13 ( Fair value Measurement), the Fund shall classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: Level 1: Level 2: Quoted prices (unadjusted) in active markets for identical assets or liabilities Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

31 Level 3: Inputs for assets or liability that are not based on observable market data (i.e. unobservable inputs) Carrying Amount As at December 31, Fair value through profit and loss Available for sale Loans and receivables Other financial assets/ liabilities Fair value As at December 31, Level 1 Level 2 Level Rupees in ' Financial assets measured at fair value Market Treasury Bills 509, ,673 - Financial assets not measured at fair value* Bank balances - - 2,080, Deposits, prepayments and other receivables Mark-up / interest receivable - - 3, ,084, ,673-2,084, ,673 - Carrying Amount Fair value As at June 30, As at June 30, Fair value Other through Available Loans and financial profit and for sale receivables assets/ Level 1 Level 2 Level 3 loss liabilities Rupees in ' Financial liabilities not measured at fair value* Payable to UBL Fund Managers Limited Management Company - - 2, Payable to Central Depository Company of Pakistan Limited - Trustee Accrued expenses and other liabilities , Financial assets measured at fair value Market Treasury Bills 598, ,211 - Financial assets not measured at fair value* Bank balances - - 1,975, Deposits, prepayments and other receivables - - 3, Mark-up / interest receivable , ,020, ,211-2,020, ,211 - Financial liabilities not measured at fair value* Payable to UBL Fund Managers Limited Management Company - - 6, Payable to Central Depository Company of Pakistan Limited - Trustee Accrued expenses and other liabilities , * The Fund has not disclosed the fair values for these financial assets and financial liabilities, as these are either short term in nature or reprice periodically. Therefore, their carrying amounts are reasonable approximation of fair value. Transfers during the period During the half year ended December 31, 2016, there were no transfers between level 1 and level 2 fair value measurements, and no transfers into and out of level 3 financial instruments.

32 16 CORRESPONDING FIGURES Corresponding figures have been rearranged and reclassified, wherever necessary for the purpose of comparison and for better presentation. However, no significant reclassification has been made during the period. 17 GENERAL This condensed interim financial information is presented in Pakistan Rupees which is also the Fund's functional currency and all financial information presented has been rounded off to the nearest thousand rupees unless otherwise stated. This condensed interim financial information was authorized for issue by Board of Directors of the Management Company on February 13, For UBL Fund Managers Limited (Management Company) --- SD SD --- CHIEF EXECUTIVE OFFICER DIRECTOR

33 UMMF UBL Money Market Fund INVESTMENT OBJECTIVE The objective of UBL Money Market Fund is to generate competitive returns within a low risk portfolio to provide a regular stream of income and easy liquidity to its investors by investing more than 50% of the portfolio in short term government securities. Management Company Trustee Distribution Company UBL Fund Managers Limited Central Depository Company of Pakistan Limited 99-B, Block-B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi. Tel: (9221) United Bank Limited (for detail of others, please visit our website: Auditors Bankers KPMG Taseer Hadi & Co., Chartered Accountants United Bank Limited Bank Alfalah Limited Faysal Bank Limited Allied Bank Limited Habib Bank Limited Islamic Banking Habib Metropolitan Bank Limited Meezan Bank Limited Askari Bank Limited Management Co.Rating Fund Rating AM2++ (JCR VIS) AA (f) (JCR VIS)

34

35

36 UBL Money Market Fund Condensed Interim Statement of Assets and Liabilities As at 31 December 2016 Note (Un-audited) (Audited) 31 December 30 June (Rupees in '000) Assets Bank balances 4 261, ,430 Investments 5 289, ,714 Mark-up / interest receivable ,243 Deposits, prepayments and other receivables 381 1,495 Advance Tax Total assets 552,999 1,526,391 Liabilities Payable to the Management Company ,189 Remuneration payable to the Trustee Annual fee payable to Securities and Exchange Commission of Pakistan (SECP) Payable against purchase of investments - 210,620 Provision for Workers' Welfare Fund (WWF) 8 4,782 4,782 Accrued and other liabilities 9 10,703 10,194 Total liabilities 16, ,591 Net assets 536,515 1,298,800 Unit holders' fund (as per the statement attached) 536,515 1,298,800 Contingencies and commitments (Number of Units) Number of units in issue 5,220,253 12,931, (Rupees) Net asset value per unit Rupees The annexed notes from 1 to 16 form an integral part of these condensed interim financial information. For UBL Fund Managers Limited (Management Company) --- SD SD --- Chief Executive Officer Director

37 UBL Money Market Fund Condensed Interim Income Statement (Unaudited) For the half year and quarter ended 31 December 2016 Income Note Half year ended Quarter ended 31 December 31 December (Rupees in '000) Financial income 11 23,219 39,210 9,093 16,903 (Loss) / gain on sale of investments net (760) 401 (1) 567 Unrealized (loss) / appreciation on revaluation of investments classified as 'at fair value through profit or loss' (58) 27 (719) Other Income Total income 22,474 39,971 9,134 17,079 Less: Expenses Remuneration of the Management Company 3,599 5,749 1,532 2,512 Sales tax on management fee Provision for indirect taxes and duties 9-1, Remuneration of the Trustee Annual fee to SECP Amortisation of preliminary expenses and floatation costs Bank and settlement charges Auditors' remuneration Fees and subscription Legal and professional charges Brokerage expense Allocated Expenses Other expense Total expenses 6,003 9,968 2,579 4,392 Element of loss and capital losses included in prices of units sold less those in units redeemed net (4,254) (9,632) (2,717) (7,634) Net income for the period before taxation 12,217 20,371 3,838 5,053 Taxation Net income for the period after taxation 12,217 20,371 3,838 5,053 The annexed notes from 1 to 16 form an integral part of these condensed interim financial information. For UBL Fund Managers Limited (Management Company) --- SD SD --- Chief Executive Officer Director

38 UBL Money Market Fund Condensed Interim Statement of Comprehensive Income (Unaudited) For the half year and quarter ended 31 December 2016 Half year ended Quarter ended 31 December 31 December (Rupees in '000) Net income for the period 12,217 20,371 3,838 5,053 Other comprehensive income Total comprehensive income for the period 12,217 20,371 3,838 5,053 The annexed notes from 1 to 16 form an integral part of these condensed interim financial information. For UBL Fund Managers Limited (Management Company) --- SD SD --- Chief Executive Officer Director

39 UBL Money Market Fund Condensed Interim Distribution Statement (Unaudited) For the half year ended 31 December 2016 Half year ended 31 December 31 December (Rupees in '000) Undistributed income brought forward 6,211 5,233 Net income for the period 12,217 20,371 Undistributed income carried forward 18,428 25,604 The annexed notes from 1 to 16 form an integral part of these condensed interim financial information. For UBL Fund Managers Limited (Management Company) --- SD SD --- Chief Executive Officer Director

40 UBL Money Market Fund Condensed Interim Cash Flow Statement (Unaudited) For the half year ended 31 December 2016 Note Half Year ended 31 December 31 December (Rupees in '000) CASH FLOWS FROM OPERATING ACTIVITIES Net income for the period 12,217 20,371 Adjustments for: Financial income 11 (23,219) (39,210) Element of loss and capital losses included in prices of units sold less those in units redeemed - net 4,254 9,632 Unrealised loss on revaluation of investments classified as 'designated at fair value through profit or loss' - 58 Loss / (gain) on sale of government securities - net 760 (401) Amortization of preliminary expense and floatation costs Provision for indirect taxes and duties - 1,049 (18,205) (28,585) Decrease in assets Investments 388, ,829 Deposits, prepayments and other receivables 1, , ,254 1,013,974 Decrease in liabilities Payable to the Management Company (541) (381) Remuneration payable to the Trustee (36) (22) Annual fee payable to SECP (419) (642) Accrued and other liabilities 509 (4,481) Dividend payable - (1,294) Payable against purchase of investment (210,620) - (211,107) (6,820) Mark-up / interest income received 59,006 40,072 Net cash generated from operating activities 231,165 1,039,012 CASH FLOWS FROM FINANCING ACTIVITIES Receipts from issuance of units 940, ,184 Payments against redemption of units (1,718,953) (1,808,874) Net cash used in financing activities (778,756) (1,313,690) Net decrease in cash and cash equivalents (547,591) (274,679) Cash and cash equivalents at beginning of the period 809, ,467 Cash and cash equivalents at end of the period 261, ,788 CASH AND CASH EQUIVALENTS Bank balances 261,839 50,788 Term deposit receipts - 325, , ,788 The annexed notes from 1 to 16 form an integral part of these condensed interim financial information. For UBL Fund Managers Limited (Management Company) --- SD SD --- Chief Executive Officer Director

41 UBL Money Market Fund Condensed Interim Statement of Movement in Unit holders' Fund (Unaudited) For the half year ended 31 December 2016 Half year ended 31 December 31 December (Rupees in '000) Net assets at the beginning of the period 1,298,800 2,068,914 Cash received on issuance of 9,313,986 units (31 December 940, , : 4,874,657 units) Cash paid / payable on redemption of 17,025,433 units (1,718,953) (1,808,874) (31 December 2015: 17,868,486 units) (778,756) (1,313,690) 520, ,224 Element of loss and capital losses included in prices of units sold less those in units redeemed - net 4,254 9,632 Unrealized loss on revaluation of investments classified as 'at fair value through profit or loss' - (58) (Loss) / gain on sale of investments - net (760) 401 Net income for the period 12,977 20,028 Total comprehensive income for the period 16,471 30,003 Net assets as at the end of the period 536, , (Rupees) Net asset value per unit at beginning of the period Net asset value per unit at end of the period The annexed notes from 1 to 16 form an integral part of these condensed interim financial information. For UBL Fund Managers Limited (Management Company) --- SD SD --- Chief Executive Officer Director

42 UBL Money Market Fund Notes to the Condensed Interim Financial Information (Unaudited) For the half year ended 31 December LEGAL STATUS AND NATURE OF BUSINESS UBL Money Market Fund (the Fund) was established under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules) and Non-Banking Finance Companies and Notified Entities Regulations, 2008 (NBFC Regulations) as an open-end mutual fund. It was constituted under a Trust Deed dated 10 August 2010 executed between UBL Fund Managers Limited (a wholly owned subsidiary of United Bank Limited), as the Management Company and Central Depository Company of Pakistan Limited, as the trustee. The Trust Deed has also been approved by the SECP. The registered office of the Management Company is situated at the 4th Floor STSM Building, Beaumont Road, Civil Lines Karachi, with effect from 06 April Previously it was situated at 8th Floor, State Life Building No.1, I.I Chundrigar Road, Karachi, Pakistan. The Management Company of the Fund is registered with the SECP as a Non-Banking Finance Company under the NBFC Rules. The Fund is an open ended mutual fund listed on Pakistan Stock Exchange (formerly Islamabad Stock Exchange (Guarantee) Limited merged/integrated with KSE & LSE on 11 January 2016). Units are offered for public subscription on a continuous basis. The units are transferable and can also be redeemed by surrendering them to the Fund at the option of the unit holder. The Fund was initially categorized as income scheme & effective from 23 May 2014 recategorized as Money Market Fund. The principal activity of the Fund is to generate competitive returns within a low risk portfolio to provide a regular stream of income and easy liquidity to its investors by investing more than 50% of portfolio in short term Government securities. Title of the assets of the Fund are held in the name of Central Depository Company Limited as a Trustee of the Fund. 2. BASIS OF PREPARATION 2.1 Statement of compliance This condensed interim financial information has been prepared in accordance with the approved accounting standards as applicable in Pakistan for interim financial reporting. The approved accounting standards comprise of such International Financial Reporting Standards ("IFRSs") issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984, the requirements of the Trust Deed, the NBFC Rules, the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the "NBFC Regulations") and the directives issued by the SECP. Wherever the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP differ with the requirements of the IFRS, the requirements Trust Deed, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP prevail.

43 2.2 The disclosures made in this condensed interim financial information have, however, been limited based on the requirements of International Accounting Standard 34: 'Interim Financial Reporting'. This condensed interim financial information does not include all the information and disclosures required in a full set of financial statements and should be read in conjunction with the annual published audited financial statements of the Fund for the year ended 30 June In compliance with schedule V of the NBFC Regulations the directors of the Management Company hereby declare that this condensed interim financial information gives a true and fair view of the state of the Fund s affairs as at 31 December SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES AND JUDGEMENTS The accounting policies applied for the preparation of this condensed interim financial information are the same as those applied in the preparation of the annual published audited financial statements of the Fund for the year ended 30 June The preparation of this condensed interim financial information in conformity with the approved accounting standards requires management to make estimates, assumptions and use judgments that affect the application of policies and reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgments are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the period of revision. The significant estimates, judgments and assumptions made by the management in applying the accounting policies and the key sources of estimation of uncertainty were the same as those applied to the annual audited financial statements as at and for the year ended 30 June The financial risk management objectives and policies are consistent with those disclosed in the annual financial statements of the Fund for the year ended 30 June BANK BALANCES 31 December 30 June (Rupees in '000) PLS savings accounts , ,267 Current accounts 8, , , Profit rates on PLS savings accounts range between 4.0% and 6.20% (2016: 4.0% and 6.75%) per annum. 5. INVESTMENTS Designated at fair value through profit or loss Government Securities - Market Treasury Bills , ,714

44 5.1 Government Securities - Designated at fair value through profit or loss Purchase yield range Maturity upto As at 01 July 2016 Purchased during the period Sold / matured during the period As at 31 December 2016 Carrying value as at 31 December 2016 Market Value as at 31 December 2016 Market Value as at 30 June (Number of holdings) (Rupees in '000) Percentage of total investment Percentage of net assets Treasury Bills - 3 months ,000 (10,000) Treasury Bills - 6 months 6.31% % 5-Jan-17-5,600 (2,700) 2, , , % 54% Treasury Bills - 1 year ,650 (6,650) ,250 (19,350) 2, , , % 54% Pakistan Investment Bonds 3 years - - 6,770 - (6,770) , The cost of investment as at 31 December 2016 amounted to Rs million (30 June 2016: Nil) The nominal value of instrument is Rs. 100,000 each. 6,770 22,250 (26,120) 2, , , , % 54% For the half year ended 31 December 31 December 5.2 Unrealized gain on value of investments classified as at fair value through profit or loss (Unaudited) (Rupees in '000) Market value of investments 289, ,771 Less: carrying value of investments (289,814) (420,828) - (58)

45 6. ADVANCE TAX The income of the fund is exempt under clause 99 of Part I of the Second schedule of the Income Tax Ordinance, 2001 and funds are exempt under clause 47(B) of Income Tax Ordinance, 2001 from withholding of tax under section 150 and 151 of Income Tax Ordinance, The Federal Board of Revenue through a circular C.No.1 (43) DG (WHT)/ 2008-Vol.II R dated 12 May 2015, made it mandatory to obtain exemption certificates under section 159(1) of the Income Tax Ordinance, 2001 from Commissioner Inland Revenue. The management is confident that the same shall be refunded. 7. PAYABLE TO MANAGEMENT COMPANY This includes reimbursement of certain expenses to the management company amounting to Rs million (30 June 2016: Rs million). During the period, fund was charged 0.1% of average annual net assets as allocated expense according to Regulation 60 of NBFC Regulations, PROVISION FOR WORKERS' WELFARE FUND (WWF) The Finance Act, 2008 introduced an amendment to the Workers' Welfare Fund Ordinance, 1971 (WWF Ordinance) as a result of which it was construed that all Collective Investment Schemes / Mutual Funds (CISs) whose income exceeded Rs. 500,000 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 taxable income, whichever was higher. The amendments introduced in the WWF Ordinance were challenged in various High Courts of Pakistan. The Honorable Lahore High Court (LHC) and the Honorable Sindh High Court (SHC) arrived at different conclusions in respect of the validity of the amendments made through the Finance Act in relation to the WWF. Both the decisions of the LHC and the SHC were challenged in the Honorable Supreme Court of Pakistan (SCP). During the period, the SCP passed a judgment on 10 November 2016, declaring the insertion of amendments introduced through Finance Act, 2008 pertaining to WWF as unlawful for the reason that the WWF is not in the nature of tax and therefore, could not be introduced through money bill under the Constitution. Subsequently, the Federal Board of Revenue (FBR) has filed a review petition in the SCP against the said judgment, which is pending adjudication. Further, as a consequence of the 18th amendment to the Constitution, levy for the WWF was also introduced by the Government of Sindh through the Sindh Workers Welfare Fund (SWWF) Act SWWF Act 2014, enacted on 21 May 2015, requires every Industrial Establishment located in the province of Sindh and having total income of Rs. 500,000 or more in any year of account commencing on or after the date of closing of account on or after 31 December 2013, to pay two percent of so much of its total income declared to SWWF. The said Act includes any concern engaged in the Banking or Financial Institution in the definition of "Industrial Undertaking" but does not define Financial Institution. The Management Company, based on an opinion obtained by the Mutual Fund Association of Pakistan (MUFAP), believes that Mutual Funds are not liable to pay Sindh WWF under the said law, for the reason that the Mutual Funds are not financial institutions and rather an investment vehicle. However, the Sindh Revenue Board has not accepted the said position of MUFAP and as a result, MUFAP has taken up this matter with the Sindh Finance Ministry for resolution. In view of the above developments regarding the applicability of Federal and Sindh WWF on Mutual Funds, the MUFAP obtained a legal opinion on these matters and based on such legal advice (which also stated that even if a review petition is filed by any party, such petition can only be based on very limited grounds and the chances of any major change in the SCP judgement are very limited), has recommended to all its members on 12 January 2017 the following:

46 - The provision against the Federal WWF held by the Mutual Funds till 30 June 2015 should be reversed on 12 January 2017; and - Provision against Sindh WWF, on prudent basis, should be made from the date of enactment of the Sindh WWF Act, 2014 (i.e. 21 May 2015) with effect from 12 January The above decisions were communicated to the Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange on 12 January In response to the aforementioned letter SECP vide its letter dated 1 February 2017 advised MUFAP that the adjustments relating to the above should be made prospectively and adequate disclosure shall be made in the condensed interim financial information of mutual funds. Accordingly, the Fund has recorded these adjustments in its books of account on 12 January The cumulative net effect of the above two adjustments if it had been made at 31 December 2016 would have resulted in increase in the Net Asset Value per unit by Rs ACCRUED AND OTHER LIABILITIES This includes provision for indirect duties and taxes amounting to Rs million (30 June 2016: Rs million). As per the requirements of the Finance Act, 2013, Federal Excise Duty (FED) at the rate of 16 percent on the remuneration of the Management Company has been applied effective from 13 June The Management Company is of the view that since the remuneration is already subject to the provincial sales tax, further levy of FED may result in double taxation, which does not appear to be the spirit of the law, hence, a petition was collectively filed by the Mutual Fund Association of Pakistan with the Sindh High Court (SHC) on 4 September While disposing the above petition through order dated 16 July 2016, the SHC declared the said provisions to be ultra vires and as a result no FED is payable with effect from 01 July However, the tax authorities subsequently filed appeal against the decision of the SHC in the Supreme Court of Pakistan, which is pending for the decision. Furthermore, the Finance Act 2016 also introduced an amendment to the Federal Excise Act, 2005 whereby FED was withdrawn on services of different industries including Non-Banking Financial Institutions, which are already subject to provisional sales tax. However, since the appeal is pending in the Honorable Supreme Court of Pakistan, the Management Company, as a matter of abundant caution, is carrying amount payable in respect to FED for the period from 13 June 2013 to 30 June CONTINGENCIES AND COMMITMENTS As at 31 December 2016, there are no contingencies and commitments.

47 11. FINANCIAL INCOME Half year ended Quarter ended 31 December 31 December 31 December 31 December (Rupees in '000) Mark-up/ return on - Bank balances 9,060 2,936 2,143 1,569 - TDRs / LOPs 351 6, ,223 - Market Treasury Bills (designated at fair value through profit or loss) 12,182 30,127 6,611 11,111 - PIB 1, ,219 39,210 9,093 16, TAXATION The Fund's income is exempt from Income Tax as per clause (99) of part I of the Second Schedule of the Income Tax Ordinance, 2001 subject to the condition that not less than 90% of the accounting income for the year as reduced by capital gains whether realised or unrealised is distributed in the form of cash amongst the unit holders. The Fund is also exempt from the provisions of section 113 (minimum tax) under clause II of Part IV of the Second Schedule to the Income Tax Ordinance, The management intends to distribute in cash form at least 90% of the income earned excluding realized & unrealized gains for the year by the Fund to unit holders, accordingly no provision has been made in this condensed interim financial information. 13. TOTAL EXPENSE RATIO In the current period, Securities and Exchange Commission of Pakistan (SECP) vide directive no. SCD/PRDD/Direction/18/2016 dated 20 July 2016, requires that collective Investment Scheme (CIS) shall disclose Total Expense Ratio (TER) in the periodic financial statements of CIS / the Fund. TER of the Fund for the period ended 31 December 2016 is 0.84% which include 0.11% representing government levy, Workers' Welfare Fund and SECP fee. 14. TRANSACTIONS WITH RELATED PARTIES / CONNECTED PERSONS Connected persons / related parties comprise of United Bank Limited (holding Company of Management Company), UBL Fund Managers Limited (Management Company), Al-Ameen Financial Services (Private) Limited, entities under common management or directorships, Central Depository Company of Pakistan Limited (Trustee) and the Directors and Officers of Management Company. Remuneration of the Management Company and the trustee is determined in accordance with the provision of Non Banking Finance Companies Rules, 2003, Non Banking Finance Companies and Notified Entities regulations, 2008 and the Trust Deed respectively. Other transactions with the related parties / connected persons have been carried out at agreed / commercial terms.

48 Details of transactions with the related parties and balances with them at the half year ended are as follows: Management Company Profit on savings accounts Bank charges Units issued Units redeemed Purchase of securities - 358, , Sale of securities ,331, Remuneration* 4, Reimbursement of expenses CDC Expense Units held (in Units '000) Units held (in Rupees '000) - 11, Bank balances - 259, Profit receivable on savings account Deposits Remuneration payable Sales load payable Other payables 9 Reimbursement of expenses payable Management company Associated Companies Associated companies Trustee Funds under common management Directors and key executives Other connected persons / related parties Transaction during the half year ended 31 December (Rupees in '000) Profit on savings accounts Bank charges Units issued ,810 Units redeemed ,268 24,000 Purchase of securities , Sale of securities , Remuneration * 6, Reimbursement of expenses Units held (in Units '000) ,101 Units held (in Rupees '000) - 11, ,756 Bank balances - 2, Profit receivable Deposits Remuneration payable Sales load and other payable Allocated Expense payable * Remuneration for the half year is inclusive of Sindh Sales Tax. Trustee Funds under common Management Directors and Key Executives Other connected persons / related parties (Transaction during the half year ended 31 December 2016) (Rupees in '000) (Balances held as at 31 December 2016) (Balances held as at 30 June 2016)

49 15. FINANCIAL INSTRUMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Underlying the definition of fair value is the presumption that the Fund is a going concern without any intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms. The fair value of financial assets and liabilities traded in active markets i.e. listed equity shares are based on the quoted market prices at the close of trading on the period end date. The quoted market prices used for financial assets held by the Fund is current bid price. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm s length basis. The Fund measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements: Level 1: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or liabilities traded. Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs). The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarch On-balance sheet financial instruments 31 December 2016 Note Fair value through profit and loss Carrying amount Available Loans and for sale receivables Other financial liablilities Fair value Total Level 1 Level 2 Level 3 Total (Rupees in '000) Financial assets measured at fair value Investment in Government Securities 289, , , , , , , ,814 Financial assets not measured at fair value 15.1 Bank balances , ,839 Mark-up / interest receivable Deposits, prepayments and other receivables , ,676 Financial liabilities not measured at fair value 15.1 Payable to the Management Company Payable to the Trustee Payable against purchase of investment Accrued and other liabilities ,108 1, June 2016 Note Fair value through profit and loss Carrying amount Available for Laons and sale receivables Other financial liablilities Fair value Total Level 1 Level 2 Level 3 Total (Rupees in '000) Financial assets measured at fair value Government securities 678, , , , , , , ,714 Financial assets not measured at fair value 15.1 Bank balances , ,430 Mark-up / interest receivable ,243-36,243 Deposits, prepayments and other receivables - - 1,495-1, , ,168 Financial liabilities not measured at fair value 15.1 Payable to the Management Company ,189 1,189 Payable to the Trustee Payable against purchase of investment , ,620 Accrued and other liabilities , , The Fund has not disclosed the fair values for these financial assets and financial liabilities, as these are either short term in nature or reprice periodically Therefore, their carrying amounts are reasonable approximation of fair value.

50 16. GENERAL 16.1 This condensed interim financial information is presented in Pakistan Rupees which is also the Fund's functional currency and all financial information presented has been rounded off to the nearest thousand rupees unless otherwise stated This condensed interim financial information is unaudited and has been reviewed by the auditors. Furthermore, the figures for the quarter ended 31 December 2016 and 31 December 2015 in this condensed interim financial information have not been reviewed by the auditors This condensed interim financial information was authorized for issue by Board of Directors of the Management Company on February 13, For UBL Fund Managers Limited (Management Company) --- SD SD --- Chief Executive Officer Director

51 UGSF UBL Government Securities Fund INVESTMENT OBJECTIVE The objective of the fund is to generate a competitive return with minimum risk, by investing primarly in Government Securities. Management Company Trustee Distribution Company Auditors Bankers UBL Fund Managers Limited Central Depository Company of Pakistan Limited 99-B, Block-B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi. Tel: (9221) United Bank Limited (for detail of others, please visit our website: BDO Ebrahim & Co., Chartered Accountants United Bank Limited Bank Alfalah Limited NIB Bank Limited Faysal Bank Limited Allied Bank Limited Habib Bank Limited Islamic Banking Habib Metropolitan Bank Limited Meezan Bank Limited Askari Bank Limited Management Co.Rating Fund Rating AM2++ (JCR VIS) A (JCR VIS)

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53

54 UBL GOVERNMENT SECURITIES FUND CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) AS AT DECEMBER 31, 2016 December 31, 2016 June 30, 2016 (Unaudited) (Audited) Note (Rupees in '000) ASSETS Bank balances 4 2,442,216 3,522,523 Term deposit receipt 5 150, ,000 Investments 6 8,093,448 9,946,266 Prepayments and other receivables 3,001 83,815 Mark up / interest receivable 111, ,210 Advance tax 7 1,508 1,508 Preliminary expenses and floatation cost - 62 TOTAL ASSETS 10,801,539 14,150,384 LIABILITIES Payable to UBL Fund Managers Limited - Management Company 8 12,922 26,315 Payable to Central Depository Company of Pakistan Limited - Trustee 914 1,204 Payable to Securities and Exchange Commission of Pakistan 5,433 9,640 Provision for Workers' Welfare Fund 9 19,506 19,506 Accrued expenses and other liabilities 10 77, ,575 TOTAL LIABILITIES 116, ,240 NET ASSETS 10,684,882 13,976,144 UNIT HOLDERS FUND (AS PER STATEMENT ATTACHED) 10,684,882 13,976,144 CONTINGENCIES AND COMMITMENTS (Number of Units) NUMBER OF UNITS IN ISSUE 99,186, ,500, (Rupees) NET ASSETS VALUE PER UNIT The annexed from notes 1 to 18 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) --- SD --- CHIEF EXECUTIVE OFFICER --- SD --- DIRECTOR

55 UBL GOVERNMENT SECURITIES FUND CONDENSED INTERIM INCOME STATEMENT (UNAUDITED) FOR THE HALF YEAR AND QUARTER ENDED DECEMBER 31, 2016 Half year ended Quarter Ended December 31, December 31, December 31, December 31, Note (Rupees in '000) (Rupees in '000) INCOME Financial income 479, , , ,422 Capital (loss) / gain on sale of investments - net (41,697) 30,430 (25,124) (20,097) Unrealised loss on revaluation of investments at fair value through profit or loss - net 5.1 (28,006) (11,947) (21,719) (52,409) Other income 129 1, ,395 Total income 409, , , ,311 EXPENSES Remuneration of UBL Fund Managers Limited - Management Company 73,738 62,051 33,794 37,817 Sales tax on Management Company's remuneration 9,586 8,687 4,393 5,294 Provision for indirect taxes and duties 10-11,318-6,898 Allocated expenses 7,244 1,452 3,370 1,452 Remuneration of Trustee 6,207 5,384 2,855 3,272 Annual fee of Securities and Exchange Commission of Pakistan 5,433 4,351 2,528 2,681 Bank charges Auditors' remuneration Brokerage and settlement expenses 1,465 3,870 1,218 2,582 Amortization of preliminary expenses and floatation cost Legal and professional fees 1,114-1,114 - Other expenses Total operating expenses 105,450 98,153 49,648 60,522 Operating income for the period 304, , , ,789 Element of (loss) / income and capital (losses) / income included in prices of units issued less those in units redeemed - net (81,601) 60,458 (82,008) 347 Net income for the period before taxation 222, ,243 40, ,136 Taxation Net income for the period after taxation 222, ,243 40, ,136 Earnings per unit 13 The annexed from notes 1 to 18 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) --- SD --- CHIEF EXECUTIVE OFFICER --- SD --- DIRECTOR

56 UBL GOVERNMENT SECURITIES FUND CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE HALF YEAR AND QUARTER ENDED DECEMBER 31, 2016 Half year ended Quarter ended December 31, December 31, December 31, December 31, (Rupees in '000) (Rupees in '000) Net income for the period after taxation 222, ,243 40, ,136 Other comprehensive income Items that may be reclassified subsequently to income statement Items that will not be reclassified subsequently to income statement Total comprehensive income for the period 222, ,243 40, ,136 The annexed from notes 1 to 18 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) --- SD --- CHIEF EXECUTIVE OFFICER --- SD --- DIRECTOR

57 UBL GOVERNMENT SECURITIES FUND CONDENSED INTERIM DISTRIBUTION STATEMENT (UNAUDITED) FOR THE HALF YEAR ENDED DECEMBER 31, 2016 Half year ended December 31, December 31, (Rupees in '000) Undistributed income brought forward comprising of: Realised income 118, ,837 Unrealised income 84,126 38,261 Undistributed income brought forward 203, ,098 Net income for the period after taxation 222, ,243 Undistributed income carried forward 425, ,341 Undistributed income carried forward comprising of: Realised income 453, ,288 Unrealised loss (28,006) (11,947) 425, ,341 The annexed from notes 1 to 18 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) --- SD --- CHIEF EXECUTIVE OFFICER --- SD --- DIRECTOR

58 UBL GOVERNMENT SECURITIES FUND CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED) FOR THE HALF YEAR ENDED DECEMBER 31, 2016 Half year ended December 31, December 31, (Rupees in '000) CASH FLOWS FROM OPERATING ACTIVITIES Net income for the period before taxation 222, ,243 Adjustments for: Financial income (479,339) (534,455) Unrealised loss on revaluation of investments at fair value through profit or loss - net 28,006 11,947 Loss / (gain) on sale of investments - net 41,697 (30,430) Element of loss / (income) and capital losses / (income) included in the prices of units issued less those in units redeemed - net 81,601 (60,458) Provision for indirect taxes and duties - 11,318 Amortization of preliminary expenses and floatation costs (327,973) (601,571) (105,259) (86,328) Decrease / (Increase) in assets Investments - net 1,783,114 (5,115,578) Term deposit receipt - (1,250,000) Prepayments and other receivables 80,814 15,534 1,863,928 (6,350,044) (Decrease) in liabilities Payable to UBL Fund Managers Limited - Management Company (13,393) 5,935 Payable to Central Depository Company of Pakistan Limited - Trustee (289) 606 Annual fee payable to Securities and Exchange Commission of Pakistan (4,207) (2,335) Accrued expenses and other liabilities (39,693) (5,215) (57,582) (1,009) Cash flow generated from / (used in) from operations 1,701,087 (6,437,381) Profit received on bank balances and investments 814, ,480 Net cash flow generated from / (used in) from operating activities 2,515,270 (6,102,901) CASH FLOWS FROM FINANCING ACTIVITIES Receipts from issuance of units 6,450,637 13,223,856 Payment against redemption of units (10,046,214) (7,869,620) Net cash (used in) / generated from financing activities (3,595,577) 5,354,236 Net decrease in cash and cash equivalents (1,080,307) (748,665) Cash and cash equivalents at beginning of the period 3,522,523 1,324,058 Cash and cash equivalents at end of the period 2,442, ,393 The annexed from notes 1 to 18 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) --- SD --- CHIEF EXECUTIVE OFFICER --- SD --- DIRECTOR

59 UBL GOVERNMENT SECURITIES FUND CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUNDS (UNAUDITED) FOR THE HALF YEAR ENDED DECEMBER 31, 2016 Half year ended December 31, December 31, (Rupees in '000) Net assets at the beginning of the period 13,976,144 6,250,954 Rs per unit (June 30, 2015: Rs per unit) Issue of 60,730,576 units (December 31, 2015: 120,821,140 units) 6,450,637 13,223,856 Redemption of 94,044,683 units (December 31, 2015: 71,352,243 units) (10,046,214) (7,869,620) Element of loss / (income) and capital losses / (income) included in the prices of (3,595,577) 5,354,236 10,380,567 11,605,190 units issued less those in units redeemed - net 81,601 (60,458) Capital (loss) / gain on sale of investments - net (41,697) 30,430 Unrealised loss on remeasurement of investments at fair value through profit or loss - net (28,006) (11,947) Other income for the period 292, , , ,243 Net assets at end of the period Rs per unit (December 31, 2015: Rs per unit) 10,684,882 12,059,975 The annexed from notes 1 to 18 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) --- SD --- CHIEF EXECUTIVE OFFICER --- SD --- DIRECTOR

60 UBL GOVERNMENT SECURITIES FUND NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL FOR THE HALF YEAR ENDED DECEMBER 31, LEGAL STATUS AND NATURE OF BUSINESS UBL Government Securities Fund (the 'Fund') was established under a Trust Deed executed between UBL Fund Managers Limited, (wholly owned subsidiary company of United Bank Limited) as its Management Company and Central Depository Company of Pakistan Limited, as its Trustee. The Trust Deed was executed on May 19, 2011 and the Fund was authorized by the Securities and Exchange Commission of Pakistan (SECP) on July 27, 2011 in accordance with the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (NBFC Rules). The registered office of the Management Company is situated at 4th Floor STSM Building Beaumont Road, Civil Lines, Karachi. Previously it was situated at 8th Floor, State Life Building No. 1, I.I. Chundrigar Road, Karachi, Pakistan. The Management Company of the Fund is registered with the SECP as a Non-Banking Finance Company under the NBFC Rules, The Fund is an income scheme listed on Pakistan Stock Exchange Limited (formerly: Islamabad Stock Exchange Limited merged / integrated with Karachi Stock Exchange Limited and Lahore Stock Exchange Limited on January 11, 2016). Units are offered for public subscription on a continuous basis. The units are transferable and can be redeemed by surrendering them to the Fund at the option of the unit holders. The objective of the Fund is to generate a competitive return with minimum risk, by investing primarily in Government Securities. The weighted average time to maturity of the Fund's investment shall not exceed four years and this shall also apply to Government Securities. This is intended to reduce risk while providing competitive returns and maintaining liquidity. Title to the assets of the Fund are held in the name of Central Depository Company Limited as a Trustee of the Fund. 2 BASIS OF PREPARATION 2.1 Statement of compliance These condensed interim financial informations have been prepared in accordance with the requirements of the International Accounting Standard 34 - Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance, 1984, the requirements of the Trust Deed, Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the Rules), and Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the Regulations) and directives issued by the Securities and Exchange Commission of Pakistan (SECP).

61 Wherever the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP differ with the requirements of the IFRS, the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP This condensed interim financial information is unaudited, however, limited scope review has been performed by the external auditors in accordance with the requirements of clause (xxi) of the Code of Corporate Governance. 2.2 The disclosures made in this condensed interim financial information have, however, been limited based on the requirements of International Accounting Standard 34: 'Interim Financial Reporting'. This condensed interim financial information does not include all the information and disclosures required in a full set of financial statements and should be read in conjunction with the annual audited financial statements of the Fund for the year ended June 30, The comparative statement of asset and liabilities presented in this condensed interim financial information has been extracted from the annual audited financial statements of the Fund for the year ended June 30, 2016, whereas the comparative condensed interim income statement, condensed interim statement of comprehensive income, condensed interim distribution statement, condensed interim statement of cash flows, condensed interim statement of movement in unit holders fund are extracted from the unaudited condensed interim financial statements for the half year ended December 31, In compliance with schedule V of the NBFC Regulations the directors of the Management Company hereby declare that this condensed interim financial information gives a true and fair view of the state of the Fund s affairs as at December 31, SIGNIFICANT ACCOUNTING AND RISK MANAGEMENT POLICIES, ESTIMATES, ASSUMPTIONS AND CHANGES THEREIN The accounting policies applied for the preparation of this condensed interim financial information are the same as those applied in the preparation of the annual audited financial statements of the Fund for the year ended June 30, The preparation of this condensed interim financial information in conformity with the approved accounting standards requires management to make estimates, assumptions and use judgments that affect the application of policies and reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgments are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the period of revision. The significant estimates, judgments and assumptions made by the management in applying the accounting policies and the key sources of estimation of uncertainty were the same as those applied to the annual audited financial statements as at and for the year ended June 30, The financial risk management objectives and policies are consistent with those disclosed in the annual audited financial statements of the Fund for the year ended June 30, 2016.

62 3.4 Certain amendments to the approved accounting standards have been published and are mandatory for the Fund's accounting period beginning on or after July 1, None of these amendments are expected to have a significant effect on this condensed interim financial information. 4 BANK BALANCES Note December 31, June 30, (Unaudited) (Audited) (Rupees in '000) Saving accounts 4.1 2,442,216 3,522, Profit rates on these saving accounts range between 4% to 6.85% per annum (June 30, 2016: 4% to 6.75% per annum). This includes an amount held by a related party (United bank Limited) amounting to Rs million (June 30, 2016: Rs million) on which return is earned at 5.35% to 6.77% (June 30, 2016: 4% to 6.75%) per annum. 5 TERM DEPOSIT RECEIPT Term deposit receipt (TDR) , , This Term Deposit Receipt (TDR) carry profit at rate 6.45% (June 30, 2016: 6.95%) per annum with maturity till April 26, 2017 (June 30, 2016: till October 26, 2016). 6 INVESTMENTS Government securities designated at fair value through profit or loss Pakistan Investment Bonds 4,946,251 8,318,688 Market Treasury Bills 3,147,197 52,933 Government of Pakistan Ijara Sukuk - 1,574, ,093,448 9,946, Government securities designated at fair value through profit or loss Name of security Note Market value At the Acquired Market value Sold / matured At the end of as at beginning of during the as at June during period the period December 31, the period period 30, No. of holdings (Rupees in '000) Percentage of total investments Percentage of net assets Pakistan Investment Bonds 6.2, 6.3 & Years 68,045 54,020 75,545 46,520 4,784,319 6,821, % 44.78% 5 Years 84 2,500 1,000 1, ,932 9, % 1.52% 10 years 12,500 9,500 22, ,487, % 0.00% 80,629 66,020 98,545 48,104 4,946,251 8,318, % 46.29% Market Treasury Bills 6.4, 6.5 & months - 108,700 99, , % 0.70% 6 months - 102, ,727 1, , % 1.40% 1 year ,400 75,950 30,000 2,923,019 52, % 27.36% , ,177 32,250 3,147,197 52, % 29.45% Government of Pakistan Ijara Sukuk Years 15,500-15, ,574, % 0.00% 15,500-15, ,574, % 0.00% 96, , ,222 80,354 8,093,448 9,946, % 75.75%

63 These represent Pakistan Investment Bond (PIBs) having a face value of Rs. 4,810.4 million (June 30, 2016: Rs. 8,062.9 million) and carrying purchase yield ranging between 5.9% and 12.57% per annum (June 30, 2016: 8.75% and 12% per annum). These PIBs will mature till April 2021 (June 30, 2016: till April 2026). The cost of the PIBs is to Rs. 4, million (June 30, 2016: Rs. 8, million). These represent Market Treasury Bills (MTBs) having a face value of Rs. 3,225 million (June 30, 2016: Rs. 55 million) and carrying purchase yield ranging between 5.8% to % per annum (June 30, 2016: 6.24% per annum). These MTBs will mature till February 2017 (June 30, 2016: till March 2017). The cost of the MTBs is Rs. 3, million (June 30, 2016: Rs million). As at June 30, 2016 Government of Pakistan Ijara Sukuk (GOPIS) had a face value of Rs. 1,550 million and cost is Rs. 1, million carrying purchase yield of 6.11% per annum. These GOPIS have been sold during the period. These PIBs and MTBs have nominal value of Rs.100,000 each respectively (June 30, 2016: Rs. 100,000). 7 ADVANCE TAX The income of the Fund is exempt under clause 99 of Part I of the Second Schedule of the Income Tax Ordinance 2001 and funds are exempt under clause 47(B) Part IV of Second Schedule of Income Tax Ordinance, 2001 from withholding of tax under section 151. The Federal Board of Revenue through a circular C.No.1 (43) DG (WHT)/ 2008-Vol.II R dated May 12, 2015, made it mandatory to obtain exemption certificates under section 159(1) of the Income Tax Ordinance, 2001 from Commissioner Inland Revenue. The management is confident that the same shall be refunded. 8 PAYABLE TO UBL FUND MANAGERS LIMITED - MANAGEMENT COMPANY This includes reimbursement of allocated expense to Management Company amounting to Rs million (June 30, 2016: Rs million) as allowed under regulation 60(3)(s) of amended NBFC regulation dated November 25, As per aforementioned regulation, fee and expenses pertaining to registrar services, accounting, operating and valuation services related to a Collective Investment Scheme (CIS) are chargeable to the scheme, maximum up to 0.1% of the average annual net assets or the actual cost whichever is lower. Accordingly the Management Company has charged 0.1% of the average annual net assets. This include remuneration expense to the Management Company amounting to Rs million (June 30, 2016: Rs million). As per amended NBFC Regulation dated November 25, 2015, the Management Company is entitled to remuneration of an amount not exceeding 1.5% of average annual net assets of the fund.

64 The Management Company has charged remuneration at the rate of 10% of the gross earnings of the Fund, calculated on a daily basis with a floor and cap of 1% and 1.25% on average daily net assets of the Fund. 8.3 The Provincial Government of Sindh has levied Sindh Sales Tax at the rate of 13% (June 30, 2016: 14%) on the remuneration of the Management Company through the Sindh Sales Tax on Services Act, PROVISION FOR WORKERS' WELFARE FUND The Finance Act, 2008 introduced an amendment to the Workers' Welfare Fund Ordinance, 1971 (WWF Ordinance) as a result of which it was construed that all Collective Investment Schemes / Mutual Funds (CISs) whose income exceeded Rs. 500,000 in a tax year were brought within the scope of the WWF Ordinance, thus rendering them liable to pay contribution to Workers Welfare Fund (WWF) at the rate of two percent of their accounting or taxable income, whichever was higher. The amendments introduced in the WWF Ordinance were challenged in various High Courts of Pakistan. The Honorable Lahore High Court and the Honorable Sindh High Court passed different judgements in respect of the validity of the amendments made through the Finance Act in relation to the WWF. Both the decisions of the Honorable Lahore High Court and the Honorable High Court of Sindh were challenged in the Honorable Supreme Court of Pakistan. During the period, the Honorable Supreme Court of Pakistan passed a judgment on November 10, 2016, declaring the insertion of amendments introduced through Finance Act, 2008 pertaining to WWF as unlawful for the reason that the WWF is not in the nature of tax and therefore, could not be introduced through money bill under the Constitution. Subsequently, the Federal Board of Revenue (FBR) has filed a review petition in the Honorable Supreme Court of Pakistan against the said judgment, which is pending adjudication. Further, as a consequence of the 18th amendment to the Constitution, levy for Sindh Workers Welfare Fund (SWWF) was also introduced by the Government of Sindh through the Sindh Workers Welfare Fund Act 2014 (SWWF Act 2014). SWWF Act 2014, enacted on May 21, 2015, requires every Industrial Establishment located in the province of Sindh and having total income of Rs. 500,000 or more in any year of account commencing on or after the date of closing of account on or after December 31, 2013, to pay two percent of its total income declared to SWWF. The said Act includes any concern engaged in the Banking or Financial Institution in the definition of Industrial Undertaking but does not define Financial Institution. The Management Company, based on an opinion obtained by the Mutual Fund Association of Pakistan (MUFAP), believed that Mutual Funds are not liable to pay SWWF under the said law, for the reason that the Mutual Funds are not financial institutions and rather an investment vehicle. However, the Sindh Revenue Board has not accepted the said position of MUFAP and as a result, MUFAP has taken up this matter with the Sindh Finance Ministry for resolution.

65 In view of the above, MUFAP obtained a legal opinion on the applicability of WWF and SWWF on Mutual Funds, and based on such legal advice, has recommended to all its members through letter dated January 12, 2017 the following: i. ii. The provision against the WWF held by the Mutual Funds till June 30, 2015 should be reversed on January 12, 2017; and Provision against SWWF, on prudent basis, should be made from the date of enactment of the SWWF Act, 2014 (i.e., May 21, 2015) with effect from January 12, The above recommendations of MUFAP were communicated to the Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange on January 12, In response to the aforementioned letter SECP vide its letter dated February 1, 2017 has advised MUFAP that the adjustments relating to the above should be made prospectively and adequate disclosure shall be made in the condensed interim financial information of mutual funds. Accordingly, subsequent to the period end, the Fund has recorded these adjustments in its books of account on January 12, The cumulative net effect of above two adjustments if it had been made at December 31, 2016 would have resulted in increase in the net asset value per unit by Re ACCRUED EXPENSES AND OTHER LIABILITIES This includes provision for indirect taxes and duties amounting to Rs million. As fully disclosed in note 15 of the annual audited financial statements of the Fund for the year ended June 30, 2016, retained the provision of Federal Excise Duty. On June 30, 2016 the Honorable Sindh High Court of Pakistan has passed the Judgment that after 18th amendment in Constitution of Pakistan the Provinces alone have the legislative power to levy a tax on rendering or providing services therefore chargeability and collection of Federal Excise Duty after July 01, 2011 is Ultra Vires to the Constitution of Pakistan. However, during the period the Federal Board of Revenue has filed an appeal with Honorable Supreme Court of Pakistan against the Judgement passed by Honorable Sindh High Court of Pakistan, which is pending adjudication. The Management Company as a matter of prudence and abundant caution has maintained full provision for FED amounting to Rs million. Had the provision not been made, the net asset value per unit of the Fund would have been higher by Re per unit (June 30, 2016: Re per unit). Furthermore, after the promulgation of Finance Act , FED is no longer applicable to Collective Investment Scheme with effect from July 01, CONTINGENCIES AND COMMITMENTS There were no contingencies and commitments outstanding as at December 31, 2016 and June 30, 2016.

66 12 TAXATION The Fund's income is exempt from Income Tax as per clause (99) of Part I of the Second Schedule to the Income Tax Ordinance, 2001 subject to the condition that not less than 90% of the accounting income for the year as reduced by capital gains whether realized or unrealized is distributed to the unit holders in the form of cash. Further, as per Regulation 63 of the Non- Banking Finance Companies and Notified Entities Regulations, 2008, the Fund is required to distribute 90% of the net accounting income, other than capital gains to the unit holders. The Fund is also exempt from the provisions of section 113 (minimum tax) under clause 11A of Part IV of the Second Schedule of the Income Tax Ordinance, The management intends to distribute in the form of cash at least 90% of the aforementioned net accounting income earned excluding realized and unrealized gains by the year end by the Fund to the unit holders. 13 EARNINGS PER UNIT Earnings per unit (EPU) has not been disclosed as in the opinion of the Management Company the determination of the cumulative weighted average number of outstanding units is not practicable. 14 TOTAL EXPENSE RATIO As per Directive 23 of 2016 dated July 20, 2016 issued by Securities and Exchange Commission of Pakistan (SECP), the total expense ratio of the Fund is 0.73% as on December 31, 2016 and this includes 0.11% representing Sindh Sales Tax and SECP Fee. 15 TRANSACTIONS WITH RELATED PARTIES / CONNECTED PERSONS Connected persons / related parties comprise of United Bank Limited (Holding Company of Management Company), UBL Fund Managers Limited (Management Company), Al-Ameen Islamic Financial Services (Private) Limited (Subsidiary of the Management Company), entities under common management or directorships, Central Depository Company of Pakistan Limited (Trustee) and the Directors and Officers of Management Company. Remuneration to the Management Company and the Trustee is determined in accordance with the provision of Non Banking Finance Companies Rules, 2003, Non Banking Finance Companies and Notified Entities Regulations, 2008 and the Trust Deed respectively. Other transactions with the related parties / connected persons have been carried out at agreed / commercial terms.

67 Details of transaction with the related parties and balances with them at the half year end are as follows: Management Company Associated Companies Trustee Funds under Common Management Directors and Key Executives Other Connected persons / related parties (Rupees in '000) Transactions during the half year ended December 31, 2016 Profit on saving accounts - 5, Bank charges Units issued 20,000 32, ,755 - Units redeemed - 90, ,374 - Purchase of securities - 1,537,518 2,329, Sale of securities - 2,817, , Remuneration 83,324-6, Allocated expenses 7, Transactions during the half year ended December 31, 2015 Profit on saving accounts - 3, Bank charges Units issued 170,000 3,077, ,316 - Units redeemed 187,803 2,249, ,861 - Purchase of securities - 6,422,291 1,701, Sale of securities - 1,183, Remuneration 70,738-5, Allocated expenses 1, Balances held as at December 31, 2016 Units held 2,375 26, Value of Units held 255,848 2,856, Bank balances - 721, Remuneration payable 11, Allocated expenses payable 1, Sales load payable 397 4, Other payables Profit receivable Balances held as at June 30, 2016 Units held 2,187 26, Value of Units held 230,685 2,844, ,197 - Bank balances - 707, Remuneration payable 13,598-1, Allocated expenses payable 8, Sales load payable 4,126 8, Other payables Profit receivable

68 16 FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is the amount for which an asset could be exchanged or liability can be settled, between knowledgeable willing parties in an arm's length transaction. Consequently, differences can arise between carrying values and the fair value estimates. Underlying the definition of fair value is the presumption that the Fund is a going concern without any intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms. Financial assets which are tradable in an open market are revalued at the market prices prevailing on the reporting date. The estimated fair value of all other financial assets and liabilities is considered not significantly different from the carrying value as the items are short-term in nature or periodically repriced. As per the requirements of the IFRS 7 (Financial Instruments: Disclosures) and IFRS 13 (Fair value Measurement), the Fund shall classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and Level 3: Inputs for assets or liability that are not based on observable market data (i.e. unobservable inputs) Carrying Amount Fair value As at December 31, As at December 31, Fair value Other through Available Loans and financial profit and for sale receivables assets / Level 1 Level 2 Level 3 loss liabilities Rupees in ' Financial assets measured at fair value Pakistan Investment Bonds 4,946, ,946,251 - Market Treasury Bills 3,147, ,147,197-8,093, ,093,448 - Financial assets not measured at fair value Bank balances - - 2,442, Term deposit receipt , Mark up / interest receivable , Other receivables - - 2, ,706,352-8,093,448-2,706, ,093,448 - Financial liabilities not measured at fair value* Payable to Management Company , Payable to Trustee Accrued expenses and other liabilities , ,

69 * The Fund has not disclosed the fair values for these financial assets and financial liabilities, as these are either short term in nature or reprice periodically. Therefore, their carrying amounts are reasonable approximation of fair value. Transfers during the period During the half year ended December 31, 2016, there were no transfers between level 1 and level 2 fair value measurements, and no transfers into and out of level 3 financial instruments. 17 CORRESPONDING FIGURES 18 GENERAL Carrying Amount As at June 30, Fair value through profit and loss Available for sale Loans and receivables Other financial assets / liabilities Fair value As at June 30, Level 1 Level 2 Level Rupees in ' Financial assets measured at fair value Pakistan Investment Bonds 8,318, ,318,688 - Market Treasury Bills 52, ,933 - Government of Pakistan Ijara Sukuk 1,574, ,574,645-9,946, ,946,266 - Financial assets not measured at fair value Bank balances - - 3,522, Term deposit receipt , Mark up / interest receivable , Other receivables , ,202, ,946,266-4,202, ,946,266 - Financial liabilities not measured at fair value* Payable to Management Company , Payable to Trustee , Accrued expenses and other liabilities , , Corresponding figures have been rearranged and reclassified, wherever necessary for the purpose of comparison and for better presentation. However, no significant reclassification has been made during the period This condensed interim financial information is presented in Pakistan Rupees which is also the Fund's functional currency and all financial information presented has been rounded off to the nearest thousand rupees unless otherwise stated. This condensed interim financial information was authorized for issue by Board of Directors of the Management Company on Febraury 13, For UBL Fund Managers Limited (Management Company) --- SD --- CHIEF EXECUTIVE OFFICER --- SD --- DIRECTOR

70 UIOF UBL Income Opportunity Fund (Formerly UBL Financial Sector Bond Fund) INVESTMENT OBJECTIVE The Objective of UBL Income Opportunity Fund is to provide a competitive rate of return to its investors by investing in quality TFCs / Sukuk, Government Securities, Bank Deposits, and short and long term debt instruments. Management Company Trustee Distribution Company Auditors Bankers UBL Fund Managers Limited Central Depository Company of Pakistan Limited 99-B, Block-B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi. Tel: (9221) United Bank Limited (for detail of others, please visit our website: KPMG Taseer Hadi & Co., Chartered Accountants United Bank Limited Bank Alfalah Limited Faysal Bank Limited Tameer MicroFinance Bank Allied Bank Limited Khushhali Bank Ltd. Management Co.Rating Fund Rating AM2++ (JCR VIS) A minus (JCR-VIS)

71

72

73 UBL Income Opportunity Fund (Formerly UBL Financial Sector Bond Fund) Condensed Interim Statement of Assets and Liabilities As at 31 December 2016 Note 31 December 30 June (Unaudited) (Audited) (Rupees in '000) Assets Bank balances 4 218,101 91,512 Investments 5 16,141 72,900 Accrued mark-up 1,230 1,971 Deposits and prepayments 4,048 3,436 Advance Tax Preliminary expenses and floatation costs Total assets 240, ,519 Liabilities Payable to the Management Company Payable to the Trustee Annual fee payable to Securities and Exchange Commission of Pakistan Provision for Workers' Welfare Fund Accrued expenses and other liabilities 8 2,204 3,317 Total liabilities 3,265 4,324 Net assets 236, ,195 Unit holders' funds (as per statement attached) 236, ,195 Contingencies and commitments 9 (Number) Number of units in issue 2,104,810 1,513,772 (Rupees) Net assets value per unit The annexed notes 1 to 15 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

74 UBL Income Opportunity Fund (Formerly UBL Financial Sector Bond Fund) Condensed Interim Income Statement (Unaudited) For the half year and quarter ended 31 December 2016 Income Half year ended Quarter ended 31 December 31 December 31 December 31 December Note (Rupees in '000) Financial income 10 8,363 6,174 4,117 3,153 (Loss) / gain on redemption / sale of investments - net (471) 176 (576) - Unrealised gain / (loss) in the value of investment 'at fair value through profit or loss' (290) 749 (362) Other Income Total income 8,348 6,481 4,331 3,081 Expenses Remuneration to the Management Company 1, Sales Tax on management fee Provision for indirect duties and taxes Remuneration to the Trustee Annual fee to Securities and Exchange Commission of Pakistan Auditors' remuneration Brokerage expenses 50 - (7) - Amortisation of preliminary expenses Listing fee Bank charges Others Total expenses 2,751 2,014 1,452 1,019 Net income from operating activities 5,597 4,467 2,879 2,062 Element of income / (loss) and capital gain / (capital losses) included in prices of units issued less those in units redeemed - net 106 (270) (433) (5,860) Net income / (loss) for the period before taxation 5,703 4,197 2,446 (3,798) Taxation Net income / (loss) for the period after taxation 5,703 4,197 2,446 (3,798) The annexed notes 1 to 15 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

75 UBL Income Opportunity Fund (Formerly UBL Financial Sector Bond Fund) Condensed Interim Statement of Comprehensive Income (Unaudited) For the half year and quarter ended 31 December 2016 Half year ended Quarter ended 31 December 31 December 31 December 31 December (Rupees in '000) Net income / (loss) for the period 5,703 4,197 2,445 (3,798) Other comprehensive income for the period Total comprehensive income / (loss) for the period 5,703 4,197 2,445 (3,798) The annexed notes 1 to 15 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

76 UBL Income Opportunity Fund (Formerly UBL Financial Sector Bond Fund) Condensed Interim Distribution Statement (Unaudited) For the half year ended 31 December 2016 Half year ended 31 December 31 December (Rupees in '000) Undistributed income brought forward 10,031 7,983 Net income for the period 5,703 4,197 Undistributed income carried forward 15,734 12,180 The annexed notes 1 to 15 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

77 UBL Income Opportunity Fund (Formerly UBL Financial Sector Bond Fund) Condensed Interim Cash Flow Statement (Unaudited) For the half year ended 31 December 2016 CASH FLOWS FROM OPERATING ACTIVITIES Half year ended 31 December 31 December (Rupees in '000) Net income for the period 5,703 4,197 Adjustments for: Financial income (8,363) (6,174) Gain on redemption / sale of securities - net 471 (176) Unrealised (gain) / loss in the value of investment 'at fair value through profit or loss' (415) 290 Amortisation of preliminary expenses Provision for indirect duties and taxes Element of (income) / loss and capital (income) / losses included in prices of units issued less those in units redeemed - net (106) 270 (8,284) (5,486) Net cash flows used in operations before working capital changes (2,581) (1,289) Working capital changes Decrease / (increase) in assets Investments 56,703 6,033 Advance Tax 36 - Deposits and prepayments (612) (81) 56,127 5,952 Increase / (decrease) in liabilities Payable to the Management Company Remuneration payable to the Trustee Payable to Securities and Exchange Commission of Pakistan (21) (59) Accrued and other liabilities (1,112) (694) (1,058) (688) Mark-up / interest income received 9,104 5,541 Net cash flows generated from operating activities 61,592 9,516 CASH FLOWS FROM FINANCING ACTIVITIES Receipts from issuance of units 185, ,211 Payments against redemption of units (120,858) (52,276) Net cash generated from financing activities 64,997 71,935 Net decrease in cash and cash equivalent during the period 126,589 81,451 Cash and cash equivalents at beginning of the period 91,512 33,219 Cash and cash equivalents at end of the period 218, ,670 CASH AND CASH EQUIVALENTS Bank Balances 218, ,670 The annexed notes 1 to 15 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

78 UBL Income Opportunity Fund (Formerly UBL Financial Sector Bond Fund) Condensed Interim Statement of Movement in Unit Holders' Funds (Unaudited) For the half year ended 31 December 2016 Half year ended 31 December 31 December (Rupees in '000) Net assets at beginning of the period 166,195 66,549 Cash received on issuance of 1,677,138 (31 December 2015: 1,140,696) units 185, ,211 Cash paid / payable on redemption of 1,086,100 (31 December 2015: 474,841) units (120,858) (52,276) 64,997 71, , ,484 Element of (income) / loss and capital (income) / losses in prices of units issued less those in units redeemed (106) 270 Realised (Loss) / gain on redemption / sale of investments - net (471) 176 Unrealised gain / (loss) in the value of investment 'at fair value through profit or loss' 415 (290) Total other comprehensive income for the period - net 5,759 4,311 Net income for the period less distribution 5,597 4,467 Net assets at the end of the period 236, ,951 Net assets value per unit as at beginning of the period Net assets value per unit as at end of the period The annexed notes 1 to 15 form an integral part of this condensed interim financial information. (Rupees) For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

79 UBL Income Opportunity Fund (Formerly UBL Financial Sector Bond Fund) Notes to the Condensed Interim Financial Information (Unaudited) For the half year ended 31 December LEGAL STATUS AND NATURE OF BUSINESS UBL Income Opportunity Fund (formerly UBL Financial Sector Bond Fund) (the 'Fund') was established under a Trust Deed executed between UBL Funds Managers Limited, (wholly owned subsidiary company of United Bank Limited) as its Management Company and Central Depository Company of Pakistan Limited, as its Trustee. The Trust Deed was executed on 01 January 2013 and the Fund was authorized by the Securities and Exchange Commission of Pakistan (SECP) on 13 February 2013 in accordance with the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (NBFC Rules). The registered office of the Management Company is situated at the 4th Floor STSM Building, Beaumont Road, Civil Lines Karachi, with effect from 06 April Previously it was situated at 8th Floor, State Life Building No.1, I.I Chundrigar Road, Karachi, Pakistan. The Management Company of the Fund is registered with the SECP as a Non-Banking Finance Company under the NBFC Rules, The Fund is an open ended mutual fund listed on Pakistan Stock Exchange(formerly Islamabad Stock Exchange (Guarantee) Limited merged/integrated with KSE & LSE on 11 January 2016). Units are offered for public subscription on a continuous basis. The units are transferable and can be redeemed by surrendering them to the Fund at the option of the unit holders. The Fund commenced its operations from 29 March The objective of UBL Income Opportunity Fund (formerly UBL Financial Sector Bond Fund) (UIOF) is to provide a competitive rate of return to its investors by investing in quality TFC s/sukuks issued by Financial Sector Institutions, Government Securities, Bank Deposits, short term and long term money market instruments and Margin Trading System (MTS). Title to the assets of the Fund are held in the name of Central Depository Company Limited as a Trustee of the Fund. 2. BASIS OF PRESENTATION 2.1 Statement of compliance This condensed interim financial information has been prepared in accordance with the approved accounting standards as applicable in Pakistan for interim financial reporting. The approved accounting standards comprise of such International Financial Reporting Standards ("IFRSs") issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984, the requirements of the Trust Deed, the NBFC Rules, the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the "NBFC Regulations") and the directives issued by the SECP. Wherever the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP differ with the requirements of the IFRS, the requirements Trust Deed, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP prevail.

80 2.2 The disclosures made in this condensed interim financial information have, however, been limited based on the requirements of International Accounting Standard 34: 'Interim Financial Reporting'. This condensed interim financial information does not include all the information and disclosures required in a full set of financial statements and should be read in conjunction with the annual published audited financial statements of the Fund for the year ended 30 June In compliance with schedule V of the Non Banking Finance Companies & notified Entities Regulations, 2008, the directors of the Management Company, hereby declare that this condensed interim financial information gives a true and fair view of the state of the Fund's affairs as at 31 December SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies applied for the preparation of this condensed interim financial information are the same as those applied in the preparation of the annual published audited financial statements of the Fund for the year ended 30 June The preparation of this condensed interim financial information in conformity with the approved accounting standards requires management to make estimates, assumptions and use judgments that affect the application of policies and reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgments are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the period of revision. The significant estimates, judgments and assumptions made by the management in applying the accounting policies and the key sources of estimation of uncertainty were the same as those applied to the annual audited financial statements as at and for the year ended 30 June The financial risk management objectives and policies are consistent with those disclosed in the annual financial statements of the Fund for the year ended 30 June BANK BALANCES 31 December 30 June (Unaudited) (Audited) (Rupees in '000) Saving accounts ,101 91, Profit rates on these bank accounts range between 4% to 7.5% (30 June 2016: 4.5% to 9%) per annum. 5. INVESTMENTS At fair value through profit or loss - Investment in debt securities ,141 15,728 - Government Securities ,172 16,141 72,900

81 5.1 Investment in debt securities - Designated at fair value through profit or loss (Term Finance Certificates of Rs. 5,000 each) Name of Security Commercial Banks As at 1 July 2016 Purchased during the period Sold / matured during the period As at 31 December 2016 Carrying value as at 31 Dec 2016 Market value as at 31 Dec 2016 Market value as at 30 June (Number of certificates) (Rupees in '000) Percentage of total investments Percentage of net assets Standard Chartered Bank Limited - TFC - ( ) 1, ,200 6,014 6,024 6, % 2.54% Bank Al Habib Limited - TFC - ( ) 2, ,000 9,712 10,117 9, % 4.27% 15,726 16,141 15, % 6.81% The cost of investment in debt securities, designated at fair value through profit or loss, amount to Rs million (30 June 2016: 16 million) Significant terms and conditions of term finance certificates outstanding as at 31 December are as follows: Name of securities Remaining principal (Rupees) Mark-up rate (per annum) Issue date Maturity date Standard Chartered Bank Limited - TFC - ( ) 6,000,000 KIBOR 6M % 29-Jun Jun-22 Bank Al Habib Limited - TFC - ( ) 9,998,000 KIBOR 6M % 17-Mar Mar Government Securities - Designated at fair value through profit or loss As at July 01, 2016 Market Sold / Carrying Purchased Balance as at value as at matured value as at 31 during the the end of the 31 during the December period period December period (Number of holdings) (Rupees in '000) Market value as at 30 June 2016 Percentage of total investments Percentage of total net assets Pakistan Investment Bonds PIB's - 10 years 500 1,062 (1,562) , ,

82 Half year ended 31 December 31 December 5.3 Unrealised gain / (loss) in the value of investments classified as 'at fair value through profit or loss' (Unaudited) (Rupees in '000) Market value of investments 16,141 27,846 Less: carrying value of investments (15,726) (28,136) 415 (290) 6. ADVANCE TAX The income of the fund is exempt under clause 99 of Part I of the Second schedule of the Income Tax Ordinance, 2001 and funds are exempt under clause 47(B) of Income Tax Ordinance, 2001 from withholding of tax under section 150 and 151 of Income Tax Ordinance, The Federal Board of Revenue through a circular C.No.1 (43) DG (WHT)/ 2008-Vol.II R dated 12 May 2015, made it mandatory to obtain exemption certificates under section 159(1) of the Income Tax Ordinance, 2001 from Commissioner Inland Revenue. During the year ended 30 June 2016 various withholding agents have deducted advance tax under section 151 of the Income Tax Ordinance, The management is confident that the same shall be refunded. 7. PROVISION FOR WORKERS' WELFARE FUND The Finance Act, 2008 introduced an amendment to the Workers' Welfare Fund Ordinance, 1971 (WWF Ordinance) as a result of which it was construed that all Collective Investment Schemes / Mutual Funds (CISs) whose income exceeded Rs. 500,000 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 taxable income, whichever was higher. The amendments introduced in the WWF Ordinance were challenged in various High Courts of Pakistan. The Honorable Lahore High Court (LHC) and the Honorable Sindh High Court (SHC) arrived at different conclusions in respect of the validity of the amendments made through the Finance Act in relation to the WWF. Both the decisions of the LHC and the SHC were challenged in the Honorable Supreme Court of Pakistan (SCP). During the period, the SCP passed a judgment on 10 November 2016, declaring the insertion of amendments introduced through Finance Act, 2008 pertaining to WWF as unlawful for the reason that the WWF is not in the nature of tax and therefore, could not be introduced through money bill under the Constitution. Subsequently, the Federal Board of Revenue (FBR) has filed a review petition in the SCP against the said judgment, which is pending adjudication. Further, as a consequence of the 18th amendment to the Constitution, levy for the WWF was also introduced by the Government of Sindh through the Sindh Workers Welfare Fund (SWWF) Act SWWF Act 2014, enacted on 21 May 2015, requires every Industrial Establishment located in the province of Sindh and having total income of Rs. 500,000 or more in any year of account commencing on or after the date of closing of account on or after 31 December 2013, to pay two percent of so much of its total income declared to SWWF. The said Act includes any concern engaged in the Banking or Financial Institution in the definition of "Industrial Undertaking" but does not define Financial Institution. The Management Company, based on an opinion obtained by the Mutual Fund Association of Pakistan (MUFAP), believes that Mutual Funds are not liable to pay Sindh WWF under the said law, for the reason that the Mutual Funds are not financial institutions and rather an investment vehicle. However, the Sindh Revenue Board has not accepted the said position of MUFAP and as a result, MUFAP has taken up this matter with the Sindh Finance Ministry for resolution.

83 In view of the above developments regarding the applicability of Federal and Sindh WWF on Mutual Funds, the MUFAP obtained a legal opinion on these matters and based on such legal advice (which also stated that even if a review petition is filed by any party, such petition can only be based on very limited grounds and the chances of any major change in the SCP judgement are very limited), has recommended to all its members on 12 January 2017 the following: - The provision against the Federal WWF held by the Mutual Funds till 30 June 2015 should be reversed on 12 January 2017; and - Provision against Sindh WWF, on prudent basis, should be made from the date of enactment of the Sindh WWF Act, 2014 (i.e. 21 May 2015) with effect from 12 January The above decisions were communicated to the Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange on 12 January In response to the aforementioned letter SECP vide its letter dated 1 February 2017 advised MUFAP that the adjustments relating to the above should be made prospectively and adequate disclosure shall be made in the condensed interim financial information of mutual funds. Accordingly, the Fund has recorded these adjustments in its books of account on 12 January The cumulative net effect of the above two adjustments if it had been made at 31 December 2016 would have resulted in increase in the Net Asset Value per unit by Rs ACCRUED EXPENSES AND OTHER LIABILITIES This includes provision for indirect duties and taxes amounting to Rs million (30 June 2016: million). As per the requirements of the Finance Act, 2013, Federal Excise Duty (FED) at the rate of 16 percent on the remuneration of the Management Company has been applied effective from 13 June The Management Company is of the view that since the remuneration is already subject to the provincial sales tax, further levy of FED may result in double taxation, which does not appear to be the spirit of the law, hence, a petition was collectively filed by the Mutual Fund Association of Pakistan with the Sindh High Court (SHC) on 4 September While disposing the above petition through order dated 16 July 2016, the SHC declared the said provisions to be ultra vires and as a result no FED is payable with effect from 01 July However, the tax authorities subsequently filed appeal against the decision of the SHC in the Supreme Court of Pakistan, which is pending for the decision. Furthermore, the Finance Act 2016 also introduced an amendment to the Federal Excise Act, 2005 whereby FED was withdrawn on services of different industries including Non-Banking Financial Institutions, which are already subject to provisional sales tax. However, since the appeal is pending in the Honorable Supreme Court of Pakistan, the Management Company, as a matter of abundant caution, is carrying amount payable in respect to FED for the period from 13 June 2013 to 30 June 2016.

84 9. CONTINGENCIES AND COMMITMENTS As at 31 December 2016, there are no contingencies and commitments. Half year ended Quarter ended 31 December 31 December 31 December 31 December 10. FINANCIAL INCOME (Unaudited) (Rupees in '000) Mark-up / return on: - Bank balances 6,458 4,918 3,610 2,578 - Term Finance Certificates 556 1, Pre IPO Placement Pakistan Investment Bonds 1, ,363 6,174 4,117 3, TAXATION The Fund's income is exempt from Income Tax as per clause (99) of part I of the Second Schedule of the Income Tax Ordinance, 2001 subject to the condition that not less than 90% of the accounting income for the year as reduced by capital gains whether realised or unrealised is distributed in the form of cash amongst the unit holders. Furthermore, as per regulation 63 of the Non-Banking Finance Companies and Notified Entities Regulations, 2008, the Fund is required to distribute 90% of the net accounting income other than realized / unrealized capital gains to the unit holders. The Fund is also exempt from the provisions of Section 113 (minimum tax) under Clause 11 of Part IV of the Second Schedule to the Income Tax Ordinance, The management intends to distribute in the form of cash at least 90% of the income earned by the year end by this Fund to the unit holders, accordingly no provision has been made in this interim financial information. 12. TOTAL EXPENSE RATIO In the current period, Securities and Exchange Commission of Pakistan (SECP) vide directive no. SCD/PRDD/Direction/18/2016 dated 20 July 2016, requires that collective Investment Scheme (CIS) shall disclose Total Expense Ratio (TER) in the periodic financial statements of CIS / the Fund. TER of the Fund for the period ended 31 December 2016 is 1.13% which include 0.13% representing government levy, Workers' Welfare Fund and SECP fee. 13. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES Connected persons / related parties comprise of United Bank Limited (Holding Company of Management Company), UBL Fund Managers Limited (Management Company), Al-Ameen Islamic Financial Services (Private) Ltd (Subsidiary of Management Company) Entities under the common management or directorship, Central Depository Company of Pakistan Limited as trustee of the Fund, the directors and officer of the management company and unit holders holding more than 10% units of the fund. Remuneration payable to the Management Company and the Trustee is determined in accordance with the provisions of the NBFC Rules, NBFC Regulations and the Trust Deed respectively. All other transactions with related parties / connected persons are in the normal course of business, at contracted rates and terms determined in accordance with the market rates.

85 Details of transactions with related parties / connected persons and balances with them at the period end, other than those which have been specifically disclosed elsewhere in this condensed interim financial information are as follows: Profit on bank balances - 3, Bank charges Sale of securities Purchase of securities Units issued ,000 Units redeemed CDS expense Remuneration 1, Sindh sales tax Units held ( in units) ,066 Units held ( in rupees '000) ,924 Bank balances* - 210, Deposits Remuneration and other payable Profit receivable * These carry profit ranging between 4% to 7.5% per annum. Management Associated Trustee Funds under Directors Other company companies common and key connected management executives persons / related parties (Transaction during the half year ended 31 December 2016) (Rupees in '000) (Balances held as at 31 December 2016) Management company Associated companies Trustee Funds under common management Directors and key executives Other connected persons / related parties Profit on savings accounts - 4, Bank charges Units issued ,498 Units redeemed ,167 Purchase of securities Sale of securities CDS expense Remuneration Sales tax on management fee Units held ( in units) ,186 Units held ( in rupees '000) Bank balances* - 65, Deposits Remuneration payable Sales load & Other payables Profit receivable - 2, * These carry profit ranging between 4% to 8% per annum Transaction during the half year ended 31 December (Rupees in '000) (Balances held as at 30 June 2016)

86 14. FINANCIAL INSTRUMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Underlying the definition of fair value is the presumption that the Fund is a going concern without any intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms. The fair value of financial assets and liabilities traded in active markets i.e. listed equity shares are based on the quoted market prices at the close of trading on the period end date. The quoted market prices used for financial assets held by the Fund is current bid price. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm s length basis. The Fund measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements: Level 1: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or liabilities traded. Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs). The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. On-balance sheet financial instruments Note Fair value through profit and loss Available for sale Carrying amount Loans and receivables Other financial liabilities Fair value Total Level 1 Level 2 Level 3 Total 31 December (Rupees in '000) Financial assets measured at fair value Term Finance Certificates 16,141 16,141-16,141-16,141 16, ,141-16,141-16,141 Financial assets not measured at fair value 14.1 Cash and cash equivalents 218, ,101 Trade and other receivables 5,278 5, , ,379 Financial Liabilities 14.1 Payable to the Management Company Payable to the Trustee Accrued expenses and other liabilities June 2016 Note Fair value through profit and loss Available for sale Carrying amount Loans and receivables Other financial liabilities Fair value Total Level 1 Level 2 Level 3 Total (Rupees in '000) Financial assets measured at fair value Term Finance Certificates 15, ,728-15,728-15,728 Government Securities 57, ,172-57,172-57,172 72, ,900-72,900-72,900 Financial assets not measured at fair value 14.1 Cash and cash equivalents ,512-91,512 Trade and other receivables - - 5,407-5, ,919-96,919 Financial Liabilities 14.1 Payable to the Management Company Payable to the Trustee Accrued expenses and other liabilities The Fund has not disclosed the fair values for these financial assets and financial liabilities, as these are either short term in nature or reprice periodically. Therefore, their carrying amounts are reasonable approximation of fair value.

87 15. GENERAL 15.1 This condensed interim financial information is presented in Pakistan Rupees which is also the Fund's functional currency and all financial information presented has been rounded off to the nearest thousand rupees unless otherwise stated This condensed interim financial information is unaudited and has been reviewed by the auditors. Furthermore, the figures for the quarter ended 31 December 2016 and 31 December 2015 in this condensed interim financial information have not been reviewed by the auditors This condensed interim financial information was authorized for issue by Board of Directors of the Management Company on February 13, For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

88 UGIF United Growth & Income Fund INVESTMENT OBJECTIVE UGIF is an open-end Aggressive Fixed Income Fund, investing in medium to long-term fixed income instruments as well as short-tenor money market instruments and seeks to generate superior, long-term, risk-adjusted returns while preserving capital over the long-term. Management Company Trustee Distribution Company Auditors Bankers UBL Fund Managers Limited Central Depository Company of Pakistan Limited 99-B, Block-B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi. Tel: (9221) United Bank Limited (for detail of others, please visit our website: KPMG Taseer Hadi & Co., Chartered Accountants United Bank Limited Bank Alfalah Limited Faysal Bank Limited Tameer Microfinance Bank Allied Bank Limited Khushhali Bank Ltd. The Bank of Punjab JS Bank Limited NIB Bank Limited Summit Bank Limited Silk Bank Limited Management Co.Rating Fund Rating AM2++ (JCR VIS) BBB+ (JCR VIS)

89

90

91 United Growth and Income Fund Condensed Interim Statement of Assets and Liabilities As at 31 December 2016 Note 31 December 30 June (Unaudited) (Audited) (Rupees in '000) Assets Bank balances 4 3,339, ,280 Placements Investments 6 1,252, ,359 Accrued mark-up 20,048 18,831 Property - held for sale Advances, deposits and prepayments 8 85,237 17,674 Advance tax 9 2,396 2,516 Fair value of derivative asset 24 - Total assets 4,699,614 1,792,660 Liabilities Payable to the Management Company 10 8,452 3,903 Payable to the Trustee Annual fee payable to Securities and Exchange Commission of Pakistan 1,238 1,416 Provision for Workers' Welfare Fund 11 19,151 19,151 Payable against purchase of Investment 80,994 - Accrued expenses and other liabilities 12 28,101 32,780 Total liabilities 138,406 57,462 Net assets 4,561,208 1,735,198 Contingencies and commitments 13 Unit holders' funds (as per statement attached) 4,561,208 1,735, (Numbers) Number of units in issue 51,907,608 20,461, (Rupees) Net assets value per unit The annexed notes from 1 to 20 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

92 United Growth and Income Fund Condensed Interim Income Statement (Unaudited) For the half year and quarter ended 31 December 2016 Half year ended Quarter ended Note 31 December 31 December (Rupees in '000) Income Financial income ,519 91,066 66,539 38,016 Net (loss) / gain on investments designated at fair value through profit or loss - Net (loss) / gain on sale and redemption of investments (5,976) 11,279 (7,920) 4,237 - Net gain from spread transactions Net unrealised loss on revaluation of investments 6.8 (3,662) (3,548) (1,696) (10,146) - Unrealised appreciation on derivatives financial instruments (9,121) 7,731 (9,099) (5,909) Net capital gain / (loss) on sale and redemption of investments classified as available-for-sale 99 19,175 (682) 12,799 Other income Reversal of provision - net 15 8,262 4,122 2, , ,240 59,806 45,382 ### Expenses Remuneration to the Management Company 24,836 15,966 16,035 7,129 Provision for indirect duties and taxes - 2,912-1,675 Sales tax on management fee 3,229 2,235 2, Remuneration to the Trustee 2,074 1,510 1, Annual fee to Securities and Exchange Commission of Pakistan 1, Bank charges Auditors' remuneration Legal and professional charges Brokerage Printing and stationery Allocated Expenses 10 1, , Custody and settlement charges Listing fee Other expenses Total expenses 34,473 25,400 22,242 11,569 72,230 96,840 37,564 33,813 Element of income / (loss) and capital income / (losses) included in prices of units issued less those in units redeemed - net 66,221 (34,689) 50,676 (12,654) Net income for the period before taxation 138,451 62,151 88,240 21,159 Taxation Net income for the period after taxation 138,451 62,151 88,240 21,159 The annexed notes from 1 to 20 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

93 United Growth and Income Fund Condensed Interim Statement of Comprehensive Income (Unaudited) For the half year and quarter ended 31 December 2016 Half year ended Quarter ended 31 December 31 December (Rupees in '000) Net income for the period before taxation 138,451 62,151 88,240 21,159 Other comprehensive income: Items that are or may be reclassified subsequently to income statement Net unrealised appreciation / (loss) during the period in the value of available-for-sale investments 20,796 20,525 (2,848) 19,045 Surplus on revaluation of available-for-sale investments transferred to income statement on disposal (23) (13,802) (23) (20,178) Total items that are or may be reclassified subsequently to income statement 20,773 6,723 (2,871) (1,133) Total comprehensive income for the period 159,224 68,874 85,369 20,026 The annexed notes from 1 to 20 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

94 United Growth and Income Fund Condensed Interim Distribution Statement (Unaudited) For the half year ended 31 December 2016 Half year ended 31 December 31 December (Rupees in '000) Accumulated loss brought forward (481,087) (597,097) Net income for the period 138,451 62,151 Accumulated loss carried forward (342,636) (534,946) The annexed notes from 1 to 20 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

95 United Growth and Income Fund Condensed Interim Cash Flow Statement (Unaudited) For the half year ended 31 December 2016 CASH FLOWS FROM OPERATING ACTIVITIES Half year ended 31 December 31 December (Rupees in '000) Net income for the period before taxation 138,451 62,151 Adjustments for: Financial income (106,519) (91,066) Net loss / (gain) on investments designated at fair value through profit or loss 9,121 (7,731) Net capital gain on sale and redemption of investments classified as available-for-sale (99) (19,175) Reversal of provision - net (8,262) (4,122) Provision for indirect duties and taxes - 2,912 Element of (income) / loss and capital (income) / losses included in prices of units issued less those in units redeemed - net (66,221) 34,689 (171,980) (84,493) (Increase) / decrease in assets Placements - - Investments (365,774) 1,718,388 Advances, deposits and prepayments (67,563) (1,446) Advance tax (433,217) 1,716,942 Increase / (decrease) in liabilities Payable to the Management Company 4,549 (1,547) Payable to the Trustee 258 (57) Annual fee payable to Securities and Exchange Commission of Pakistan (178) (1,966) Payable against purchase of Investment 80,994 - Accrued expenses and other liabilities (4,679) 3,015 80,944 (555) Mark-up / interest income received 105, ,930 Net cash (used in) / generated from operating activities (280,500) 1,868,975 CASH FLOWS FROM FINANCING ACTIVITIES Receipts from issuance of units 4,506,341 1,108,273 Payments against redemption of units (1,773,334) (3,091,296) Net cash generated from / (used in) financing activities 2,733,007 (1,983,023) Net increase / (decrease) in cash and cash equivalents 2,452,507 (114,048) Cash and cash equivalents at the beginning of the period 887, ,750 Cash and cash equivalents at the end of the period 3,339, ,702 CASH AND CASH EQUIVALENTS Bank balances 3,339, ,702 The annexed notes from 1 to 20 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

96 United Growth and Income Fund Condensed Interim Statement of Movement in Unit Holders' Funds (Unaudited) For the half year ended 31 December 2016 Half year ended 31 December 31 December (Rupees in '000) Net assets at the beginning of the period 1,735,198 3,384,235 Cash received on issuance of 51,807,230 units (31 December 2015: 13,200,665 units) 4,506,341 1,108,273 Cash paid / payable on redemption of 20,360,845 units (31 December 2015: 37,255,613 units) (1,773,334) (3,091,296) 2,733,007 (1,983,023) 4,468,205 1,401,212 Element of (income) / loss and capital (income) / losses included in prices of units issued less those in units redeemed - net (66,221) 34,689 Net unrealised appreciation during the period in the value of available-for-sale investments 20,796 20,525 Realized (loss) / gain on sale of investment - net (5,384) 30,454 Surplus on revaluation of available-for-sale investments transferred to income statement on disposal (23) (13,802) Total other comprehensive income for the period - net 143,835 31,697 Total comprehensive income for the period 93, ,563 Net assets as at the end of the period 4,561,208 1,504, (Rupees) Net asset value per unit at beginning of the period Net asset value per unit at end of the period The annexed notes from 1 to 20 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

97 United Growth and Income Fund Notes to the Condensed Interim Financial Information (Unaudited) For the half year ended 31 December LEGAL STATUS AND NATURE OF BUSINESS 1.1 United Growth and Income Fund '(the Fund)' was established under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules) as an open-end mutual fund. It was constituted under the Trust Deed, dated 21 December 2004 between UBL Fund Managers Limited (wholly owned subsidiary company of United Bank Limited) as the Management Company, a company incorporated under the Companies Ordinance, 1984 and Central Depository Company of Pakistan Limited (CDC) as the Trustee. The Trust Deed was approved by the Securities and Exchange Commission of Pakistan (SECP) on 07 January The registered office of the Management Company is situated at the 4th Floor STSM Building, Beaumont Road, Civil Lines Karachi, with effect from 06 April Previously it was situated at 8th Floor, State Life Building No.1, I.I Chundrigar Road, Karachi, Pakistan. The Management Company of the Fund is registered with the SECP as a Non-Banking Finance Company under the NBFC Rules. The Fund is an aggressive fixed income scheme listed on the Pakistan Stock Exchange (formerly Karachi Stock Exchange (Guarantee) Limited merger/integrated with ISE & LSE on 11 January 2016). Units are offered for public subscription on a continuous basis. The units are transferable and can also be redeemed by surrendering them to the Fund at the option of the unit holders. The management has resumed further issuance of units with effect from 27 April 2015, previously further issuance of units was suspended from 12 October 2011 to safeguard the interest of unit holders. However, there was no restriction on any redemptions and conversion-out requests from the Fund. Any transaction of administrative plans under management was also not affected by such restriction. As per the offering document, the Fund shall invest in a diversified portfolio of government securities, investment grade Term Finance Certificates (TFCs), rated corporate debts, certificates of investments (COIs), Continuous Funding System (CFS), spread transactions (including spread on equity transactions) and other money market instruments. Title to the assets of the Fund are held in the name of Central Depository Company of Pakistan Limited as a Trustee of the Fund. 2. BASIS OF PREPARATION 2.1 Statement of compliance This condensed interim financial information has been prepared in accordance with the approved accounting standards as applicable in Pakistan for interim financial reporting. The approved accounting standards comprise of such International Financial Reporting Standards ("IFRSs") issued by the International Accounting Standards Board as are notified under the Companies Ordinance,

98 1984, the requirements of the Trust Deed, the NBFC Rules, the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the "NBFC Regulations") and the directives issued by the SECP. Wherever the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP differ with the requirements of the IFRS, the requirements Trust Deed, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP prevail. The disclosures made in this condensed interim financial information have, however, been limited based on the requirements of International Accounting Standard 34: 'Interim Financial Reporting'. This condensed interim financial information does not include all the information and disclosures required in a full set of financial statements and should be read in conjunction with the annual published audited financial statements of the Fund for the year ended 30 June In compliance with schedule V of the NBFC Regulations the directors of the Management Company hereby declare that this condensed interim financial information gives a true and fair view of the state of the Fund s affairs as at 31 December SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES AND JUDGEMENTS The accounting policies applied for the preparation of this condensed interim financial information are the same as those applied in the preparation of the annual published audited financial statements of the Fund for the year ended 30 June The preparation of this condensed interim financial information in conformity with the approved accounting standards requires management to make estimates, assumptions and use judgments that affect the application of policies and reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgments are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the period of revision. The significant estimates, judgments and assumptions made by the management in applying the accounting policies and the key sources of estimation of uncertainty were the same as those applied to the annual audited financial statements as at and for the year ended 30 June The financial risk management objectives and policies are consistent with those disclosed in the annual financial statements of the Fund for the year ended 30 June Note 31 December 30 June BANK BALANCES (Unaudited) (Audited) (Rupees in '000) Current Accounts Saving accounts 4.1 3,339, ,230 3,339, , Profit rates on saving accounts range from 4% to 7.5% (30 June 2016: 5.75% to 9%) per annum.

99 5. PLACEMENTS Note 31 December 30 June (Unaudited) (Audited) (Rupees in '000) Placements - unsecured ,430 49,430 Provision for impairment (49,430) (49,430) This represents placement with Security leasing company (the company). The Fund entered into restructuring agreement with the company on 29 June 2012 whereby it was agreed that the outstanding amount would be settled partly through transfer of 13 memberships of a club aggregating to Rs million (subsequently disposed off) whereas the remaining amount would be paid through 368 weekly instalments of Rs. 204,167 commencing from 01 February As per the said agreement, no interest is payable on the outstanding balance by the Company. The company defaulted on the weekly payment due on 7 July Accordingly, provision has been created against the remaining principal amount. Note 31 December 30 June 6. INVESTMENTS (Unaudited) (Audited) Designated at fair value through profit or loss (Rupees in '000) Investments in debt securities - Quoted , ,621 - Unquoted , ,043 - Government securities , ,997 - Quoted equity securities (spread transactions) ,915-1,187, ,661 - Pre-IPO placements ,187, ,661 Available-for-sale - Investments in debt securities - Quoted ,023 - Unquoted Preference shares Quoted equity security ,471 43,675 64,471 53,698 1,252, ,359

100 6.1 Designated at fair value through profit or loss - Investment in debt securities (Term Finance Certificates and Sukuk Certificates of Rs.5,000 each, unless otherwise stated ) Name of security Note As at 01 July 2016 Purchased / acquired during the period Sold / matured during the period (Number of certificates) As at 31 December 2016 Carrying value as at 31 December 2016 Market value as at 31 December 2016 Market value as at 30 June (Rupees in '000) Percentage of total investment Percentage of net assets Quoted Personal goods Azgard Nine Limited - TFC ( ) , , Fixed line telecommunication Telecard Limited - TFC ( ) , , Banks NIB Bank Limited-TFC ( ) 21, , , , , % 2.36% Bank Alfalah Limited-TFC ( ) 10, ,100 51,452 51,755 51, % 1.13% Standard Chartered Bank - TFC ( ) 3,300 - (3,300) , % 0.00% Soneri Bank Limited - TFC ( ) 23, , , , , % 2.57% 270, , , % 6.06% Chemicals Engro Corporation Limited - TFC ( ) 3 years ,682 4,663 4, % 0.10% Electricity K-Electric Limited TFC ( ) 5 years ,691 2,607 2, % 0.06% Total quoted securities 278, , , % 6.22% Unquoted Personal goods Azgard Nine Limited - PP TFC ( ) , , Household goods New Allied Electronics Industries Limited - TFC ( ) , , New Allied Electronics Industries Limited - Sukuk - ( ) , ,

101 Name of security Note As at 01 July 2016 Purchased / acquired Sold / matured during the period Write off during the As at 31 December 2016 Carrying value as at 31 Market value as at 31 December Market value as at 30 June Percentage of total investment during the period December period Banks (Number of certificates) (Rupees in '000) Percentage of net assets Bank Al-Habib - TFC ( ) 17, ,000 82,552 85,996 82, % 1.89% JS Bank Limited - TFC ( ) - 48, , , , % 5.26% 322, ,996 82, % 7.15% Chemicals Engro Fertilizer Limited -TFC ( ) 3, ,600 16,789 16,758 17, % 0.37% Electricity WAPDA - TFC ( ) 25,000 - (5,000) - 20,000 71,421 71,786 98, % 1.57% Financial services Security Leasing Corporation Limited - Sukuk ( ) I , (12,000) Security Leasing Corporation Limited - Sukuk ( ) II , , Cable and electrical goods TPL Trakker Limited - Sukuk ( ) * ,000 52,826 50, % 1.16% Total unquoted securities 460, , , % 10.25% * The nominal value of these Sukuks are Rs. 1,000,000 each. 738, , , % 16.47% For details of non-performing securities where there is no change during the period ended 31 December 2016, refer the annual financial statements of the Fund for the year ended 30 June In 2011, Security Leasing Company entered into revised restructuring agreement with Sukuk holders (effective from 29 February 2012) and the security was accordingly classified as performing by MUFAP. However, the issuer defaulted in the payments due on 19 July 2014 as per revised repayment schedule and accordingly the exposure of the Fund in sukkuk certificates was fully provided as per the requirement of SECP Circular 33 of Further SLCL requested via letter dated 7 April 2016 seeking full and final settlement of its outstanding exposure at 10% of its face value. Consent was received from majority financiers (cumulatively holding 58% of total outstanding amount) on the proposed terms of SLCL. In this regard, United Growth and Income Fund received an amount of Rs million representing 10% of outstanding principal amount. The remaining outstanding principal amount has been written off.

102 6.2 Designated at fair value through profit or loss - Government securities (face value of Rs. 100,000 each) Name of security Maturity upto Yield As at 01 July 2016 Purchased during Sold / matured As at 31 Carrying value as Market value as at Market value as at the period during the period December 2016 at 31 December December June 2016 Percentage of total investment Percentage of net assets (Number of holdings) (Rupees in '000) Pakistan Investment Bonds - 03 years 21-Apr-19 7% - 1,000-1, , , % 2.22% Pakistan Investment Bonds - 10 years 21-Apr % 2,500 5,000 (5,000) 2, , , , % 5.58% Treasury Bills - 3 months ,250 (39,250) Treasury Bills - 6 months ,730 (68,730) Treasury Bills - 1 year ,650 (1,650) , , , % 7.80% 6.3 Quoted equity securities (spread transactions) Listed equity securities Name of investee company As at 1 July 2016 Purchased during the period Bonus / right issue during the period Sold during the period As at 31 December 2016 Carrying Cost as at 31 December 2016 Market value as at 31 December 2016 Appreciation / (Diminution) as at 31 December 2016 Market value as percentage of net assets Market value as percentage of total investments Par value as percentage of issued capital of the investee company Unless stated otherwise, the holdings are in ordinary shares of Rs. 10 each (Number of shares) (Rupees in '000) Insurance Adamjee Insurance Company Limited - 117,000 - (3,500) 113,500 8,543 8,415 (128) 0.18% 0.67% 0.03% 8,543 8,415 (128) 0.18% 0.67% 0.03% Engineering Amreli Steels Limited - 76,000 - (20,500) 55,500 3,691 3, % 0.30% 0.02% International Steels Limited - 37,000 - (20,500) 16,500 1,595 1, % 0.13% 0.00% 5,286 5, % 0.43% 0.02% Cable and Electrical Goods Pak Elektron Limited - 177,500 - (95,000) 82,500 5,723 5, % 0.47% 0.02% TPL Trakker Limited - 188,000 - (188,000) ,723 5, % 0.47% 0.02% Fertilizer Engro Fertilizers Limited - 9,000 - (1,000) 8, (4) 0.01% 0.04% 0.00% Engro Corporation Limited - 51, ,000 16,248 16,120 (128) 0.35% 1.29% 0.01% Fatima Fertilizer Company Limited - 2, , % 0.01% 0.00% Fauji Fertilizer Bin Qasim Limited - 127,000 - (127,000) Fauji Fertilizer Company Limited - 10, ,500 1,101 1,096 (5) 0.02% 0.09% 0.00% 17,971 17,834 (137) 0.38% 1.43% 0.01% Technology and Communication TRG Pakistan Limited - 220,000 - (220,000) Power Generation & Distribution K-Electric Limited* - 18,000 - (18,000) Hub Power Company Limited - 121,500 - (2,500) 119,000 14,880 14,694 (186) 0.32% 1.17% 0.01% 14,880 14,694 (186) 0.32% 1.17% 0.01%

103 Name of investee company As at 1 July 2016 Purchased during the period Bonus / right issue during the period Sold during the period As at 31 December 2016 Carrying Cost as at 31 December 2016 Market value as at 31 December 2016 Appreciation / (Diminution) as at 31 December 2016 Market value as percentage of net assets Market value as percentage of total investments Par value as percentage of issued capital of the investee company (Number of shares) (Rupees in '000) Cement Cherat Cement Company Limited - 1,000 - (1,000) D.G. Khan Cement Company Limited - 36,500 - (36,000) % 0.01% 0.00% Maple Leaf Cement Factory - 61,000 - (59,000) 2, % 0.02% 0.00% Pioneer Cement Limited - 8,000 - (8,000) % 0.03% 0.00% Refinery Attock Refinery Limited - 1,500 - (1,000) % 0.02% 0.00% % 0.02% 0.00% Commercial Banks Askari Bank Limited - 263, ,000 6,565 6,562 (3) 0.14% 0.52% 0.02% Bank Alfalah Limited - 1, , % 0.00% 0.00% Bank of Punjab - 1,114,000 - (1,114,000) Habib Bank Limited - 18, ,500 4,955 5, % 0.40% 0.00% MCB Bank Limited - 8, ,000 1,891 1, % 0.15% 0.00% National Bank of Pakistan Limited - 36,500 - (11,500) 25,000 1,870 1, % 0.15% 0.00% 15,337 15, % 1.22% 0.02% Oil and Gas Marketing Companies Pakistan State Oil Company Limited - 9,500 - (6,000) 3,500 1,497 1, % 0.12% 0.00% 1,497 1, % 0.12% 0.00% Food and Personal Care Products Engro Foods Limited - 8, ,500 1,559 1, % 0.13% 0.00% 1,559 1, % 0.13% 0.00% Oil and Gas Exploration Companies Oil and Gas Development Company - 36, ,500 6,015 6, % 0.48% 0.00% Pakistan Oilfields Limited - 6, ,500 3,514 3,475 (39) 0.08% 0.28% 0.00% Pakistan Petroleum Limited (1) 0.00% 0.01% 0.00% 9,624 9,604 (20) 0.21% 0.77% 0.00% Total - 31 December ,994 80,915 (79) 1.75% 6.46% 0.11% Total - 30 June * Par value of Rs. 3.5 each Cost of investment of equity securities is Rs million (30 June 2016: Nil) The investment in equity securities represents spread transactions entered into by the Fund. The Fund purchases equity securities in ready settlement market and sells the securities in future settlement market on the same day, resulting in spread income due to difference in ready and future stock prices. 6.4 Pre-IPO placements 31 December 30 June (Rupees in '000) Dewan Cement Limited ,500 93,333 Provision (87,500) (93,333) During the period the issuer has made payment of Rs million and accordingly provision of Rs million has been reversed in line with compromise agreement dated 13 September 2013 signed between Deewan Cement Limited (DCL) and The Fund. As per agreement, DCL will repay the outstanding debt in thirty six equal quarterly installments starting from 13 December 2014 and ending on 13 September 2023.

104 6.5 Available-for-sale - Investment in debt securities (Term Finance Certificates and sukuk certificates of Rs.5,000 each) Name of security Note As at 1 July 2016 Purchased during the period Sold / matured during the period As at 31 December 2016 Carrying value as at 31 December 2016 Market value as at 31 December 2016 Market value as at 30 June 2016 Percentage of total investment Percentage of net assets Quoted (Number of certificates) (Rupees in '000) Personal goods Azgard Nine Limited - TFC ( ) , , Azgard Nine Limited - ( ) , , Banks Standard Chartered Bank - TFC ( ) 2,000 - (2,000) , Financial services Trust Investment Bank Limited - TFC ( ) , , Fixed line communication Worldcall Telecom Limited - TFC ( ) , , Telecard Limited - TFC ( ) , , Total quoted securities ,

105 Name of security Note As at 1 July 2016 Purchased during the period Sold / matured during the period Write off during the period As at 31 December 2016 Carrying value as at 31 December 2016 Market value as at 31 December 2016 Market value as at 30 June 2016 Percentage of total investment Percentage of net assets Unquoted (Number of certificates) (Rupees in '000) Household goods New Allied Electronics Industries ( ) , , Chemicals Agritech Limited - PP TFC ( ) , , Agritech Limited - PP TFC ( ) , , Agritech Limited - Sukuk ( ) , , Agritech Limited - Sukuk ( ) , , Personal goods Azgard Nine Limited - PP ( ) , , Azgard Nine Limited - ( ) - (Zero Coupon) , , Financial services Security Leasing Corporation Limited - Sukuk ( ) - I , (12,000) Security Leasing Corporation Limited - Sukuk ( ) - II , , Security Leasing Corporation Limited - PP ( ) , , Total unquoted securities Total available for sale debt securities , For details of non-performing securities where there is no change during the period ended 31 December 2016, refer the annual financial statements of the Fund for the year ended 30 June 2016.

106 Note 31 December 30 June Provision for impairment (Unaudited) (Audited) (Rupees in '000) Designated at fair value through profit or loss - quoted Azgard Nine Limited - ( ) 1,026 1,026 Telecard Limited - ( ) ,556 5,736 6,582 6,762 Designated at fair value through profit or loss - unquoted New Allied Electronics Industries - ( ) 18,094 18,094 New Allied Electronics Industries - Sukuk ( ) 35,000 35,000 Azgard Nine Limited - ( ) 10,579 10,579 Security Leasing Corporation Limited - Sukuk ( ) I ,389 Security Leasing Corporation Limited - Sukuk ( ) II 5,577 5,577 69,250 74,639 Available-for-sale debt securities - quoted Azgard Nine Limited - ( ) 21,702 21,702 Azgard Nine Limited - ( ) 27,863 27,863 Trust Investment Bank Limited - ( ) 44,499 44,499 Worldcall Telecom Limited - ( ) 10,058 10,058 Telecard Limited - ( ) ,556 5, , ,858 Available-for-sale debt securities - unquoted New Allied Electronics Industries - ( ) 13,068 13,068 Agritech Limited - ( ) 597, ,015 Agritech Limited - ( ) 254, ,223 Agritech Limited - Sukuk ( ) 14,453 14,453 Azgard Nine Limited - ( ) 49,870 49,870 Security Leasing Corporation Limited - Sukuk ( ) I ,282 Security Leasing Corporation Limited - Sukuk ( ) II 16,451 16,451 Security Leasing Corporation Limited - PP TFC ( ) 10,261 10, , ,623 1,140,851 1,161, During the period the issuer has made payment of Rs million and accordingly provision of Rs million has been reversed.

107 6.6 Investment in preference shares Name of security Quoted Azgard Nine Limited , , , , These represent cumulative, non-voting, convertible and redeemable preference shares having a face value of Rs.10 each and carrying a profit rate of 8.95% per annum. These were due for redemption on 30 September 2009 but due to default by the Company, management has made full provision of Rs million against the amount outstanding. 6.7 Quoted equity security (Ordinary shares having face value of Rs. 10 each) Name of security Chemicals Note As at 01 July 2016 (Rupees in '000) Carrying value as at 31 December 2016 Market value / carrying value as at 30 June 2016 (Rupees in '000) Agritech Limited ,084, ,084,430 64,471 43, % 1.41% 1.30% Purchased during the period Note As at 01 July Acquired / bonus Disposed off 2016 shares received during the during the period period Sold / converted during the period As at 31 December (Number of certificates) As at 31 December (Number of shares) Market value / carrying value as at 31 December 2016 Cost of available for sale investment as at 31 December ,404 39,404 Carrying value as at 30 June (Rupees in '000) Percentage of Total Investment Percentage of total investment Percentage of net assets Percentage of net assets Percentage of investee capital This represents shares received in partial settlement against TFC of Azgard Nine limited. As per Circular 07 of 2009 an aggressive fixed income scheme shall not invest in the equity securities, however, SECP vide its letter dated 16 January 2012 allowed exemption from this restriction in respect of shares of Agritech Limited and has instructed to value these shares as per applicable International Accounting Standards (IAS). Accordingly, the Fund has recorded the shares at prevailing market price. For the half year ended 31 December 31 December 6.8 Unrealized gain on value of investments classified as at fair value through profit or loss (Unaudited) (Rupees in '000) Market value of investments 1,187, ,217 Less: carrying value of investments (1,191,313) (836,765) (3,662) (3,548) Unrealized gain on value of investments classified as at available for sale Market value of investments 64, ,880 Less: carrying value of investments (43,675) (176,355) 20,796 20,525

108 6.9 Circular No. 16 dated 07 July 2010 issued by the SECP requires details of investments not compliant with the investment criteria specified for the category assigned to open-end collective investment schemes or the investment requirements of the constitutive documents of the Fund to be disclosed in the annual accounts of the Fund. The table below gives the details of such non compliant investments Name of non-compliant Investment Type of investment Note Value of investment before provision / impairment Provision held / impairment made (Rupees in '000) Value of investment after provision % of net assets % of gross assets Azgard Nine Limited Preference shares (850) Agritech Limited Quoted shares ,402 (19,931) 64, % 1.37% Property -held for sale Property 7 12,000 (12,000) Disclosure of excess exposure as at 31 December 2016 Name of investment Exposure type % of Issue Limit Excess Trust Investment Bank Limited - ( ) Per issue 19.90% 10% 9.90% Agritech Limited - ( ) Per issue 19.30% 10% 9.30% Security Leasing Corporation Limited - PP ( ) Per issue 19.00% 10% 9.00% New Allied Electronics Industries - ( ) Per issue 17.20% 10% 7.20% Security Leasing Corporation Limited - Sukuk ( ) Per issue 13.30% 10% 3.30% Agritech Limited - ( ) Per issue 11.40% 10% 1.40%

109 6.9.3 Significant terms and conditions of debt securities held as at 31 December 2016 are as follows: Quoted / Mark-up rate Secured / Name unquoted per annum Maturity unsecured Details of security Rating Quoted Personal Goods Azgard Nine Limited ( ) Quoted 6 months KIBOR bps 20 September 2012 Secured First pari passu charge on the present CCC and future fixed assets of the company (excluding Land & Building ) with 25% margin in favour of the Trustee. Azgard Nine Limited ( ) Quoted 1 year KIBOR bps 18 May 2013 Secured First Pari Passu charge of upto 125% D (from 1 to 12 months)+100 of the instrument over fixed assets of bps the company. Fixed Line Telecommunication Telecard Limited ( ) Quoted 6 months KIBOR 27 November 2013 Secured First exclusive charge over specific BBB future fixed assets upto PKR 800 million; and first exclusive charge/assignment of Local Loop Licenses. Worldcall Telecom Limited Quoted 6 months KIBOR+ 160 bps 07 October 2015 Secured First Pari passu charge over all present D ( ) and future fixed assets of the Company and all licenses and right of ways with 25% margin up to a maximum of PKR 4,000 million. Banks NIB Bank Ltd-TFC ( ) Quoted 6 months KIBOR+ 115 bps 05 March 2016 Unsecured - AA- Bank Alfalah Ltd-TFC ( ) Quoted 6 months KIBOR+ 125 bps 20 February 2021 Unsecured - AA- Standard Chartered Bank PPTFC ( ) Quoted 6 month KIBOR + 75 bps 29 June 2022 Unsecured - AAA Soneri Bank Limited - TFC Quoted 6 month KIBOR bps 8-Jul-23 Unsecured - AA- ( ) Financial Services Trust Investment Bank Limited ( ) Quoted 6 months KIBOR+ 185 bps 04 July 2013 Unsecured - B Electricity WAPDA - SUK ( ) Quoted 6 month KIBOR bps 14 October 2021 Secured Unconditional and irrevocable first AAA demand guarantee of the President of Islamic Republic of Pakistan covering issue amount and profit payments; first charge on unencumbered WAPDA assets with 25% margin under sukuk arrangement. The assets will be decided in consultation with WAPDA will include but not limited to the Mangla / Terbela Turbines; and exclusive lien over debt payment account for the benefit of the investors.

110 Quoted / Mark-up rate Secured / Name unquoted per annum Maturity unsecured Details of security Rating K-Electric Limited TFC ( ) 5 years 15.50% Fixed 13 August 2017 Secured The issue will be secured by First Pari AA Passu Charge and repaid from the receivables under the consumer bill collections from: a) Specific 250 (carved out) Corporate Customers - Approx. PKR 900mn/quarter b) Excess collection proceeds from specific 495 Corporate Customers being utilized for payments of all long term lenders under Collection Account held with UBL. Unquoted Personal Goods Azgard Nine Limited ( ) Unquoted 6 months KIBOR bps 04 December 2014 Secured Ranking charge over present and future CCC fixed assets. The ranking charge shall ensure the investors have a claim on fixed assets of ANL after the claim of the Senior Debt provider(s) is settled. Household Goods New Allied Electronics Industries Unquoted 3 months KIBOR bps 15 May 2011 Secured Charge over stocks and receivables of Withdrawn (Private) Limited ( ) the company created by way of hypothecation with a 25% margin. Mortgage deed over property (F-14 and F-15, Clifton) having a cushion of PKR 600 Million. New Allied Electronics Industries Unquoted 3 months KIBOR+ 220 bps 03 December 2012 Secured Ranking charge over all present and Withdrawn (Private) Limited (NAEIL) future fixed assets of NAEIL - Sukuk ( ) amounting to PKR 300 million. Banks Bank Al-Habib - TFC ( ) Unquoted 6 months KIBOR + 75 bps 17 March 2026 Unsecured - AA JS Bank Limited - TFC ( ) Unquoted 6 months KIBOR bps 14 December 2023 Unsecured - A+ Chemical Engro Fertilizer Limited - SUK Unquoted 6 months KIBOR bps 19 July 2019 Secured Subordinated floating charge created to AA- ( ) ensure the investors have a claim on the present and future fixed assets of Engro after the claim of the senior debt provider is settled. Engro Corporation - TFC Unquoted 13% fixed rate 11 April 2017 Secured Subordinated floating charge created to AA+ ( ) ensure the investors have a claim on the present and future fixed assets of Engro after the claim of the senior debt provider is settled.

111 Quoted / Mark-up rate Secured / Name unquoted per annum Maturity unsecured Details of security Rating Agritech Limited (Formerly Unquoted 6 months KIBOR+ 175 bps 14 January 2015 Secured Ranking pari passu charge over all CCC Pak American Fertilizers Limited) II PP ( ) present and future fixed assets of Agritech Limited amounting to issue Amount plus 25% margin. (To be upgraded, within ninety days from the date of issue, to First pari passu charge over all present and future fixed assets of Agritech Limited, covering the issue Amount along with applicable margin). Agritech Limited (Formerly Unquoted 6 months KIBOR+ 200 bps 06 August 2015 Secured The Issue is to be secured by First Pari CCC Pak American Fertilizers Limited) Sukuk ( ) Passu Charge on the Company s present and future fixed assets equivalent to the Issue amount along with a 25% margin. Agritech Limited (Formerly Unquoted 6 months KIBOR+ 175 bps 29 November 2014 Secured First ranking pari passu charge over all CCC Pak American Fertilizers Limited) Sukuk ( ) present and future fixed assets of Agritech Limited amounting to Issue Amount plus 25% margin. Agritech Limited (Formerly Unquoted 11% fixed rate 28 April 2017 Unsecured - D Pak American Fertilizers Limited) - Sukuk ( ) Financial Services Security Leasing Corporation Unquoted Nil 19 January 2022 Secured First charge over specific leased assets None Limited - Sukuk ( ) and associated lease receivables with 25% security margin. Security Leasing Corporation Unquoted Nil 28 January 2022 Secured First charge over specific leased assets Non-rated Limited - PP TFC ( ) and associated lease receivables with 25% security margin. Cable and electrical goods TPL Trakker Limited - Sukuk ( ) 1 year KIBOR bps 13 April 2021 Secured Ranking charge worth of Rs. A+ 625million on current and fixed assets (including existing and future assets). 31 December 30 June PROPERTY - HELD FOR SALE (Unaudited) (Audited) (Rupees in '000) Acquisition Value ,000 12,000 Less : Provision for diminution in value of property (12,000) (12,000) This represents property acquired in a partial settlement of a placement with a leasing company under the settlement agreement dated 12 July The Securities and Exchange Commission of Pakistan vide its letter no. SCD/AMCW/MF/JD-VS/UGIF/324/2011 has provided 'no objection' for this settlement transaction. The Fund was required to dispose of the property within one year of the acquisition which has been further extended till 31 March 2017 by SECP vide its letter no. AMCW/UGIF/245/2016 dated 20 October However, as the management is facing difficulty in seeking buyer for the property at reasonable prices in present condition, it has made full provision against the carrying value of the property.

112 8. ADVANCES, DEPOSITS AND PREPAYMENTS This includes receivable against sale of investment amounting to Rs million (30 June 2016: Nil). 9. ADVANCE TAX The income of the fund is exempt under clause 99 of Part I of the Second schedule of the Income Tax Ordinance 2001 and funds are exempt under clause 47(B) of Income Tax Ordinance 2001 from withholding of tax under section 150 and 151 of Income Tax Ordinance The Federal Board of Revenue through a circular C.No.1 (43) DG (WHT)/ 2008-Vol.II R dated 12 May 2015, made it mandatory to obtain exemption certificates under section 159(1) of the Income Tax Ordinance, 2001 from Commissioner Inland Revenue. During the year ended 30 June 2016 various withholding agents have deducted advance tax under section 151 of the Income Tax Ordinance, The management is confident that the same shall be refunded. 10. PAYABLE TO MANAGEMENT COMPANY This includes reimbursement of certain expenses to the management company amounting to Rs million (30 June 2016: Rs million). During the period, fund was charged 0.1% of average annual net assets as allocated expense according to Regulation 60 of NBFC Regulations, PROVISION FOR WORKERS' WELFARE FUND The Finance Act, 2008 introduced an amendment to the Workers' Welfare Fund Ordinance, 1971 (WWF Ordinance) as a result of which it was construed that all Collective Investment Schemes / Mutual Funds (CISs) whose income exceeded Rs. 500,000 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 taxable income, whichever was higher. The amendments introduced in the WWF Ordinance were challenged in various High Courts of Pakistan. The Honorable Lahore High Court (LHC) and the Honorable Sindh High Court (SHC) arrived at different conclusions in respect of the validity of the amendments made through the Finance Act in relation to the WWF. Both the decisions of the LHC and the SHC were challenged in the Honorable Supreme Court of Pakistan (SCP). During the period, the SCP passed a judgment on 10 November 2016, declaring the insertion of amendments introduced through Finance Act, 2008 pertaining to WWF as unlawful for the reason that the WWF is not in the nature of tax and therefore, could not be introduced through money bill under the Constitution. Subsequently, the Federal Board of Revenue (FBR) has filed a review petition in the SCP against the said judgment, which is pending adjudication. Further, as a consequence of the 18th amendment to the Constitution, levy for the WWF was also introduced by the Government of Sindh through the Sindh Workers Welfare Fund (SWWF) Act SWWF Act 2014, enacted on 21 May 2015, requires every Industrial Establishment located in the province of Sindh and having total income of Rs. 500,000 or more in any year of account commencing on or after the date of closing of account on or after 31 December 2013, to pay two percent of so much of its total income declared to SWWF. The said Act includes any concern engaged in the Banking or Financial Institution in the definition of "Industrial Undertaking" but does not define Financial Institution. The Management Company, based on an opinion obtained by the

113 Mutual Fund Association of Pakistan (MUFAP), believes that Mutual Funds are not liable to pay Sindh WWF under the said law, for the reason that the Mutual Funds are not financial institutions and rather an investment vehicle. However, the Sindh Revenue Board has not accepted the said position of MUFAP and as a result, MUFAP has taken up this matter with the Sindh Finance Ministry for resolution. In view of the above developments regarding the applicability of Federal and Sindh WWF on Mutual Funds, the MUFAP obtained a legal opinion on these matters and based on such legal advice (which also stated that even if a review petition is filed by any party, such petition can only be based on very limited grounds and the chances of any major change in the SCP judgement are very limited), has recommended to all its members on 12 January 2017 the following: - The provision against the Federal WWF held by the Mutual Funds till 30 June 2015 should be reversed on 12 January 2017; and - Provision against Sindh WWF, on prudent basis, should be made from the date of enactment of the Sindh WWF Act, 2014 (i.e. 21 May 2015) with effect from 12 January The above decisions were communicated to the Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange on 12 January In response to the aforementioned letter SECP vide its letter dated 1 February 2017 advised MUFAP that the adjustments relating to the above should be made prospectively and adequate disclosure shall be made in the condensed interim financial information of mutual funds. Accordingly, the Fund has recorded these adjustments in its books of account on 12 January The cumulative net effect of the above two adjustments if it had been made at 31 December 2016 would have resulted in increase in the Net Asset Value per unit by Rs ACCRUED EXPENSES AND OTHER LIABILITIES This includes provision for indirect duties and taxes amounting to Rs million (30 June 2016: Rs million). As per the requirements of the Finance Act, 2013, Federal Excise Duty (FED) at the rate of 16 percent on the remuneration of the Management Company has been applied effective from 13 June The Management Company is of the view that since the remuneration is already subject to the provincial sales tax, further levy of FED may result in double taxation, which does not appear to be the spirit of the law, hence, a petition was collectively filed by the Mutual Fund Association of Pakistan with the Sindh High Court (SHC) on 4 September While disposing the above petition through order dated 16 July 2016, the SHC declared the said provisions to be ultra vires and as a result no FED is payable with effect from 01 July However, the tax authorities subsequently filed appeal against the decision of the SHC in the Supreme Court of Pakistan, which is pending for the decision. Furthermore, the Finance Act 2016 also introduced an amendment to the Federal Excise Act, 2005 whereby FED was withdrawn on services of different industries including Non-Banking Financial Institutions, which are already subject to provisional sales tax. However, since the appeal is pending in the Honorable Supreme Court of Pakistan, the Management Company, as a matter of abundant caution, is carrying amount payable in respect to FED for the period from 13 June 2013 to 30 June 2016.

114 13. CONTINGENCIES AND COMMITMENTS As at 31 December 2016, there are no contingencies and commitments. Half year ended Quarter ended 31 December 31 December 14. FINANCIAL INCOME (Unaudited) (Rupees in '000) Mark-up / return on: - Term Finance Certificates 21,015 31,008 10,778 11,543 - Government Securities 61,236 43,917 43,905 18,059 - Saving Accounts 24,171 15,384 11,778 8,363 - Placements Profit on NCCPL Exposure Margin ,519 91,066 66,539 38, PROVISION / REVERSAL OF PROVISION - NET Half year ended Quarter ended 31 December 31 December (Unaudited) (Rupees in '000') Reversal / (provision) against non performing debt securities - on fair value through profit or loss on available for sale 1, Reversal of provision of application money for term finance certificates 5,833 3,889 1,944-8,262 4,122 2, TAXATION The Fund's income is exempt from Income Tax as per clause (99) of part I of the Second Schedule of the Income Tax Ordinance, 2001 subject to the condition that not less than 90% of the accounting income for the year as reduced by capital gains whether realised or unrealised is distributed in the form of cash amongst the unit holders. Furthermore, as per regulation 63 of the Non-Banking Finance Companies and Notified Entities Regulations, 2008, the Fund is required to distribute 90% of the net accounting income other than unrealized capital gains to the unit holders. The Fund is also exempt from the provisions of section 113 (minimum tax) under clause II of Part IV of the Second Schedule to the Income Tax Ordinance, The management intends to distribute in cash form at least 90% of the income earned for the year by the Fund to the unit holders, accordingly no provision has been made in this condensed interim financial information. 17. TOTAL EXPENSE RATIO In the current period, Securities and Exchange Commission of Pakistan (SECP) vide directive no. SCD/PRDD/Direction/18/2016 dated July 20, 2016, requires that collective Investment Scheme (CIS) shall disclose Total Expense Ratio (TER) in the periodic financial statements of CIS / the Fund. TER of the Fund for the period ended 31 December 2016 is 1.05% which include 0.14% representing government levy, Workers' Welfare Fund and SECP fee.

115 18. TRANSACTIONS WITH CONNECTED PERSONS/ RELATED PARTIES Connected persons / related parties comprise of United Bank Limited (Holding Company of Management Company), UBL Fund Managers Limited (Management Company), Al-Ameen Islamic Financial Services (Private) Limited (Subsidiary of Management Company) entities under the common management or directorship, Central Depository Company of Pakistan Limited as trustee of the fund, the directors and officer of the management company and unit holders holding more than 10% units of the Fund. Remuneration payable to the Management Company and the Trustee is determined in accordance with the provisions of the NBFC Rules, NBFC Regulations and the Trust Deed respectively. All other transactions with related parties / connected persons are in the normal course of business and are carried out on agreed terms / contracted terms. Details of transactions with related parties / connected persons and balances with them during and as at the period other than those which have been specifically disclosed elsewhere in this condensed interim financial information are as follows: Transactions during the period Management company Associated companies Trustee Funds under common management (Rupees in 000's) Directors and key executives Other connected persons / related parties (For the half year ended 31 December 2016) Profit earned on bank balances - 9, Income on term finance certificates Units issued 118, , ,360 - Units redeemed - 563, ,647 - Bank charges Purchase of securities - 583, , Sale of securities - 344, Remuneration 24,836-2, Sales tax on management fee 3, Allocated expenses 1, CDS Charges Balances held (As at 31 December 2016) Units held (number of units in '000) 1,356 7, Units held (amount in '000) 119, , ,687 - Bank balances * - 1,838, Deposits Securities Remuneration payable 6, Allocated expenses Sales load payable 1, Other payable Profit receivable - bank balances - 1, * These carry profit ranging between 4% to 7.5%. Per annum. Transactions during the period (For the half year ended 31 December 2015) Profit earned on bank balances ,995 Income on term finance certificates - 3, Units issued - 367, ,586 Units redeemed - 2,975, ,905 Bank charges Purchase of securities , Sale of securities - 461, , Remuneration 15,966-1, Sales tax on management fee 2, Allocated expenses Balances held (As at 30 June 2016) Units held (number of units in '000) - 10, Units held (amount in '000) - 856, ,279 - Bank balances * - 515, Securities Remuneration payable 2, Other payables Sales load payable Allocated expenses 1, Profit receivable - bank balances - 1, * These carry profit ranging between 4% to 8% per annum.

116 In accordance with Circular No. 33 of 2012 issued by SECP, all traded debt securities are valued on the basis of their volume weighted average price during the last 15 days while thinly traded and non traded debt securities are valued using a valuation methodology devised by MUFAP which includes variables including yields on government securities, KIBOR and credit ratings. As the valuation techniques use inputs from observable market data, these securities are classified as Level 2. Rates for non-performing securities, however, are not quoted by MUFAP and are valued using the provisioning criteria prescribed by the abovementioned Circular and are hence classified as Level FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Underlying the definition of fair value is the presumption that the Fund is a going concern without any intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms. The fair value of financial assets and liabilities traded in active markets i.e. listed equity shares are based on the quoted market prices at the close of trading on the period end date. The quoted market prices used for financial assets held by the Fund is current bid price. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm s length basis. The Fund measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements: Level 1: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or liabilities traded. Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs). The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. 31 December 2016 Carrying Amount Fair Value Fair value Available Loans and Other Total Level 1 Level 2 Level 3 Total through profit for receivables financial Note and loss sale liabilities (Rupees in '000) Financial assets measured at fair value Investment in debt securities 751, , , , ,016 Government securities 355, , , ,720 Quoted equity securities 80,915 64, , , ,386 Derivative Asset ,187,675 64, ,252, , ,086-1,252,146 Financial assets not measured at fair value 19.1 Bank balances - - 3,339,787-3,339,787 Pre-IPO placements Accrued mark-up ,048-20,048 Advances, deposits, prepayments ,237-85,237 and receivables - - 3,445,072-3,445,072 Financial liabilities not measured at fair value 19.1 Payable to the Management Company ,452 8,452 Payable to the Trustee Payable against purchase of Investment ,994 80,994 Accrued and other liabilities ,362 3, ,278 93,278 June 30, 2016 Carrying Amount Fair Value Fair value Available Loans and Other Total Level 1 Level 2 Level 3 Total through profit for receivables financial Note and loss sale liabilities (Rupees in '000) Financial assets measured at fair value Investment in debt securities 542,664 10, , , , ,687 Government securities 269, , , ,997 Quoted equity securities - 43, ,675 43, , ,661 53, , , , ,359 Financial assets not measured at fair value 19.1 Bank balances , ,280 Pre-IPO placements Accrued mark-up ,831-18,831 Advances, deposits, prepayments ,674-17,674 and receivables , ,785 Financial liabilities not measured at fair value 19.1 Payable to the Management Company ,903 3,903 Payable to the Trustee Accrued and other liabilities ,592 2, ,707 6, The Fund has not disclosed the fair values for these financial assets and financial liabilities, as these are either short term in nature or reprice periodically. Therefore, their carrying amounts are reasonable approximation of fair value.

117 20. GENERAL 20.1 This condensed interim financial information is presented in Pakistan Rupees which is also the Fund's functional currency and all financial information presented has been rounded off to the nearest thousand rupees unless otherwise stated This condensed interim financial information is unaudited and has been reviewed by the auditors. Furthermore, the figures for the quarter ended 31 December 2016 and 31 December 2015 in this condensed interim financial information have not been reviewed by the auditors This condensed interim financial information was authorized for issue by Board of Directors of the Management Company on February 13, For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

118 UGF UBL Gold Fund INVESTMENT OBJECTIVE The investment objective of the Fund is to provide Unit holders exposure to Gold as an asset class by investing significant portion of Fund s net assets in Gold based instruments, while investing the remaining portion in high rated money market instruments. Management Company Trustee Distribution Company UBL Fund Managers Limited Central Depository Company of Pakistan Limited 99-B, Block-B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi. Tel: (9221) United Bank Limited (for detail of others, please visit our website: Auditors Bankers Ernst & Young Ford Rhodes Sidat Hyder & Co., Chartered Accountants United Bank Limited Bank Alfalah Limited Faysal Bank Limited Allied Bank Limited Management Co.Rating AM2++ (JCR VIS)

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122 UBL GOLD FUND CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES AS AT DECEMBER 31, 2016 Assets Note (Un-audited) (Audited) December 31, June 30, (Rupees in '000) Bank balances 4 87,974 89,216 Investment in future gold contracts 5 (2,895) 8,407 Advance tax Mark-up / interest receivable Deposits and prepayment 40,780 36,460 Preliminary expenses and floatation costs Total assets 126, ,081 Liabilities Payable to the Management Company Remuneration payable to the Trustee Payable to Securities and Exchange Commission of Pakistan (SECP) Accrued and other liabilities 8 1,519 1,718 Provision for Workers' Welfare Fund (WWF) Total liabilities 2,109 2,459 Net assets 124, ,622 Unit holders' fund (as per the statement attached) 124, , (Number of units) Number of units in issue 1,568,918 1,478, (Rupees) Net assets value per unit Contingencies and commitments 10 The annexed notes from 1 to 18 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

123 UBL GOLD FUND CONDENSED INTERIM INCOME STATEMENT FOR THE HALF YEAR AND QUARTER ENDED DECEMBER 31, 2016 (UN-AUDITED) Half year ended Quarter ended December 31, December 31, December 31, December 31, Note (Rupees in '000) Income Mark-up / interest income 2,752 3,155 1,424 1,481 Loss on sale of derivatives classified as 'at fair value through profit or loss' - held-for-trading (14,286) (9,161) (14,853) (6,445) Unrealised (loss) / gain on fair value of derivatives classified as 'at fair value through profit or loss' - held-for-trading (2,895) (343) (1,084) 1,469 Other income Total loss (14,429) (6,075) (14,513) (3,292) Expenses Remuneration of the Management Company 1, Sales tax on management fee Provision for indirect taxes and duties Remuneration of the Trustee Sales tax on Trustee fee Annual fee to SECP Transaction costs Auditors' remuneration Amortisation of preliminary expenses and floatation costs Bank and settlement charges Legal and professional charges Fees and subscription Printing and stationery Total expenses 1,947 1, Element of income / (loss) and capital gains / (losses) included in prices of units sold less those in units redeemed - net (54) Net loss for the period before taxation (16,171) (7,349) (15,185) (4,310) Taxation Net loss for the period (16,171) (7,349) (15,185) (4,310) Earnings per unit 12 The annexed notes from 1 to 18 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

124 UBL GOLD FUND CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR AND QUARTER ENDED DECEMBER 31, 2016 (UN-AUDITED) Half year ended Quarter ended December 31, December 31, December 31, December 31, (Rupees in '000) (Rupees in '000) Net loss for the period (16,171) (7,349) (15,185) (4,310) Other comprehensive income / (loss) for the period Total comprehensive loss for the period (16,171) (7,349) (15,185) (4,310) The annexed notes from 1 to 18 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

125 UBL GOLD FUND CONDENSED INTERIM DISTRIBUTION STATEMENT FOR THE HALF YEAR ENDED DECEMBER 31, 2016 (UN-AUDITED) Half year ended December 31, December 31, (Rupees in '000) Undistributed loss comprises of: Realised loss (28,155) (29,681) Unrealised gain / (loss) 8,407 (2,641) Undistributed loss brought forward - net (19,748) (32,322) Net loss for the period (16,171) (7,349) Undistributed loss carried forward (35,919) (39,671) Undistributed loss carried forward comprises of: Realised loss (33,024) (39,328) Unrealised loss (2,895) (343) Undistributed loss carried forward (35,919) (39,671) The annexed notes from 1 to 18 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

126 UBL GOLD FUND CONDENSED INTERIM CASH FLOW STATEMENT FOR THE HALF YEAR ENDED DECEMBER 31, 2016 (UN-AUDITED) Half year ended December 31, December 31, (Rupees in '000) CASH FLOWS FROM OPERATING ACTIVITIES Net loss for the period (16,171) (7,349) Adjustments: Mark-up / interest income (2,752) (3,155) Unrealised loss on fair value of derivatives classified as 'at fair value through profit or loss' - held-for-trading 2, Loss on sale of derivatives classified as 'at fair value through profit or loss' - held-for-trading 14,286 9,161 Amortisation of preliminary expenses and flotation costs Provision for indirect taxes and duties Element of income and capital gains included in prices of units sold less those in units redeemed - net (205) (656) 14,355 5,989 Increase in assets Investment in future gold contracts (5,879) (11,803) Deposits and prepayment (4,320) 27,891 (10,199) 16,088 Decrease in liabilities Payable to the Management Company (108) 83 Remuneration payable to the Trustee (1) - Payable to SECP (42) (56) Accrued and other liabilities (199) (531) (350) (504) Mark-up / interest received 2,805 3,112 Withholding tax paid (2) - Net cash (used in) / generated from operating activities (9,562) 17,336 CASH FLOWS FROM FINANCING ACTIVITIES Receipts from issuance of units 50,912 22,721 Payments against redemption of units (42,592) (41,383) Net cash generated from / (used in) financing activities 8,320 (18,662) Net decrease in cash and cash equivalents during the period (1,242) (1,326) Cash and cash equivalents at beginning of the period 89,216 92,648 Cash and cash equivalents at end of the period 87,974 91,322 CASH AND CASH EQUIVALENTS Bank balances 87,974 91,322 The annexed notes from 1 to 18 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

127 UBL GOLD FUND CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNITHOLDERS' FUND FOR THE HALF YEAR ENDED DECEMBER 31, 2016 (UN-AUDITED) Half year ended December 31, December 31, (Rupees in '000) Net assets at beginning of the period [Rs (2015: Rs ) per unit] 132, ,786 Cash received on issuance of units* 50,912 22,721 Cash paid on redemption of units** (42,592) (41,383) 140, ,124 Element of income and capital gains included in prices of units sold less those in units redeemed - net (205) (656) Total comprehensive income for the period before capital gains - realised and unrealised 1,010 2,155 Loss on sale of derivatives classified as 'at fair value through profit or loss' - held-for-trading (14,286) (9,161) Unrealised loss on fair value of derivatives classified as 'at fair value through profit or loss' - held-for-trading (2,895) (343) (16,171) (7,349) Net assets at end of the period 124, ,119 [Rs (2015: Rs ) per unit] (Number of units) * Number of units issued 583, ,631 ** Number of units redeemed 492, ,549 The annexed notes from 1 to 18 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

128 UBL GOLD FUND NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED DECEMBER 31, 2016 (UN-AUDITED) 1. LEGAL STATUS AND NATURE OF BUSINESS 1.1 UBL Gold Fund (the Fund) was established under a Trust Deed executed between UBL Fund Managers Limited, (wholly owned subsidiary company of United Bank Limited) as its Management Company and Central Depository Company of Pakistan Limited (CDC), as its Trustee. The Trust Deed was executed on November 27, 2012 and the Fund was authorized by the SECP on November 16, 2012 in accordance with the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules). The registered office of the Management Company is situated at 4th Floor, STSM Building, Beaumont Road, Civil Lines, Karachi, previously it was situated at 8th Floor, State Life Building No. 1, I. I. Chundrigar Road, Karachi, Pakistan The Fund is an open ended mutual fund and is listed on the Pakistan Stock Exchange Limited (formerly Islamabad Stock Exchange Limited which has been merged / integrated with Lahore Stock Exchange Limited and Karachi Stock Exchange Limited on January 11, 2016). Units are offered for public subscription on a continuous basis. The units are transferable and can be redeemed by surrendering them to the Fund at the option of the unit holders. The units of the Fund were initially offered to the public ("IPO") during the period from February 11, 2013 to February 12, The Fund commenced its operations from February 13, The Fund is classified as a commodity scheme and aims to invest significant portion of Fund s net assets in gold based instruments, while investing the remaining portion in high rated money market instruments. 1.4 Title to the assets of the Fund are held in the name of CDC as the Trustee of the Fund. 1.5 As at December 31, 2016, an associated company held 1,092,434 units representing 69.63% of the units in issue of the Fund as at that date. The Management Company of the Fund is confident that it will be able to entice new unit holders to invest in the units of the Fund. 2. BASIS OF PRESENTATION This condensed interim financial information of the Fund for the half year ended December 31, 2016 has been prepared in accordance with the requirements of the International Accounting Standard 34: Interim Financial Reporting, the Trust Deed, the NBFC Rules, Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the NBFC Regulations) and directives issued by the SECP. In case where requirements differ, the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP prevail. This condensed interim financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the annual financial statements of the Fund for the year ended June 30, This condensed interim financial information is un-audited but subject to limited scope review by the auditors. Figures for the quarter ended December 31, 2016 and December 31, 2015 as reported in this condensed interim financial information has not been subject to limited scope review by the external auditors. In compliance with schedule V of the NBFC Regulations the Directors of the Management Company hereby declare that this condensed interim financial information gives a true and fair view of the state of the Fund s affairs as at December 31, 2016

129 2.5 This condensed interim financial information is presented in Pakistani Rupees which is the Fund's functional and presentation currency. 3. SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES AND JUDGEMENTS The accounting policies, basis of accounting estimates applied and methods of computation adopted in the preparation of this condensed interim financial information is consistent with those followed in the preparation of the financial statements of the Fund for the year ended June 30, 2016 except as follows: 3.1 New / Revised Standards, Interpretations and Amendments The Fund has adopted the following standards and amendment to IFRSs which became effective for the current period: Standard or Interpretation IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 27 Separate Financial Statements Investment Entities: Applying the Consolidation Exception (Amendment) IFRS 11 Joint Arrangements - Accounting for Acquisition of Interest in Joint Operation (Amendment) IAS 1 Presentation of Financial Statements - Disclosure Initiative (Amendment) IAS 16 Property, Plant and Equipment and IAS 38 intangible assets - Clarification of Acceptable Method of Depreciation and Amortization (Amendment) IAS 16 Property, Plant and Equipment and IAS 41 Agriculture - Agriculture: Bearer Plants (Amendment) IAS 27 Separate Financial Statements Equity Method in Separate Financial Statements (Amendment) Improvements to Accounting Standards Issued by the IASB in September 2014 IFRS 5 Non-current Assets Held for Sale and Discontinued Operations - Changes in methods of disposal IFRS 7 Financial Instruments: Disclosures - Servicing contracts IFRS 7 Financial Instruments: Disclosures - Applicability of the offsetting disclosures to condensed interim financial information IAS 19 Employee Benefits - Discount rate: regional market issue IAS 34 Interim Financial Reporting - Disclosure of information 'elsewhere in the interim financial report' The adoption of the above standards, amendment and improvement to accounting standards did not have any effect on this condensed interim financial information. In addition to the above standards and interpretations, improvements to various accounting standards have also been issued by the IASB and are generally effective for current period. The Fund believes that such improvements to the standards do not have any impact on the Fund's condensed interim financial information for the period. 3.2 The financial risk management objectives and policies are consistent with those disclosed in the annual financial statements of the Fund for the year ended June 30, 2016.

130 4. BANK BALANCES Note (Un-audited) (Audited) December 31, June 30, (Rupees in '000) PLS savings accounts ,967 89,145 Balance held in collection account ,974 89, Profit rates on PLS savings accounts range from 4.00% to 6.77% (June 30, 2016: 4.00% to 5.75%) per annum. This represents cash realised in the centralized collection account against the issuance of units of the Fund. The balance held in the centralized collection account is transferred to the Fund's main account on T+1 basis. 5. INVESTMENT IN FUTURE GOLD CONTRACTS Held-for-trading - derivative financial instruments - Future gold contracts 5.1 (2,895) 8, This represents net unrealised loss on cash settled future gold contracts with settlement dates of January 26, 2017 (June 30, 2016: July 25, 2016). 6. ADVANCE TAX The income of the fund is exempt under clause 99 of Part I of the Second schedule of the Income Tax Ordinance 2001 and funds are exempt under clause 47(B) of ITO 2001 from withholding of tax under section 151 of ITO The Federal Board of Revenue through a circular C.No.1 (43) DG (WHT)/ 2008-Vol.II R dated May 12, 2015, made it mandatory to obtain exemption certificates under section 159(1) of the Income Tax Ordinance, 2001 from Commissioner Inland Revenue. The management is confident that the same shall be refunded by the department. 7. TOTAL EXPENSE RATIO As per Directive 23 of 2016 dated July 20, 2016 issued by SECP the Total Expense Ratio of the Fund is 1.44% as on December 31, 2016 and this includes 0.15% representing Government Levy, Worker s Welfare Fund and SECP Fee. 8. ACCRUED AND OTHER LIABILITIES Auditors' remuneration Provision for indirect duties and taxes 8.1 1,311 1,311 Withholding tax deducted at source Zakat Capital gains tax payable ,519 1,718

131 8.1 This includes provision for indirect duties and taxes amounting to Rs million (June 30, 2016: Rs million). As fully disclosed in note 16.1 of the annual financial statements of the Fund for the year ended June 30, 2016, the Management Company, as a matter of abundant caution has not reversed the provision of Federal Excise Duty. However, subsequent to June 30, 2016 the Federal Board of Revenue has filed an appeal with Honorable Supreme Court of Pakistan (SCP) against the Judgment passed by Honorable Sindh High Court of Pakistan, which is pending adjudication. Pending the adjudication in the SCP, the Management Company, as a matter of abundant caution, has maintained full provision for FED aggregating to Rs million (June 30, 2016: Rs million). Had the provision not been retained, the net assets value per unit of the Fund would have been higher by Re.0.73 (0.92%) per unit (June 30, 2016: Re.0.77 (0.86%) per unit). Furthermore, after the promulgation of Finance Act , FED is no longer applicable to Collective Investment Scheme with effect from July 01, PROVISION FOR WORKERS' WELFARE FUND (WWF) The Finance Act, 2008 introduced an amendment to the Workers' Welfare Fund Ordinance, 1971 (WWF Ordinance) as a result of which it was construed that all Collective Investment Schemes / Mutual Funds (CISs) whose income exceeded Rs.500,000 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 taxable income, whichever was higher. The amendments introduced in the WWF Ordinance were challenged in various High Courts of Pakistan. The Honorable Lahore High Court (LHC) and the Honorable Sindh High Court (SHC) arrived at different conclusions in respect of the validity of the amendments made through the Finance Act in relation to the WWF. Both the decisions of the LHC and the SHC were challenged in the Honorable Supreme Court of Pakistan (SCP). During the period, the SCP passed a judgment on November 10, 2016, declaring the insertion of amendments introduced through Finance Act, 2008 pertaining to WWF as unlawful for the reason that the WWF is not in the nature of tax and therefore, could not be introduced through money bill under the Constitution. Subsequently, the Federal Board of Revenue (FBR) has filed a review petition in the SCP against the said judgment, which is pending adjudication. Further, as a consequence of the 18th amendment to the Constitution, levy for the WWF was also introduced by the Government of Sindh through the Sindh Workers Welfare Fund (SWWF) Act SWWF Act 2014, enacted on May 21, 2015, requires every Industrial Establishment located in the province of Sindh and having total income of Rs.500,000 or more in any year of account commencing on or after the date of closing of account on or after December 31, 2013, to pay two percent of so much of its total income declared to SWWF. The said Act includes any concern engaged in the Banking or Financial Institution in the definition of Industrial Undertaking but does not define Financial Institution. The Management Company, based on an opinion obtained by the Mutual Funds Association of Pakistan (MUFAP), believes that Mutual Funds are not liable to pay Sindh WWF under the said law, for the reason that the Mutual Funds are not financial institutions and rather an investment vehicle. However, the Sindh Revenue Board has not accepted the said position of MUFAP and as a result, MUFAP has taken up this matter with the Sindh Finance Ministry for resolution. In view of the above developments regarding the applicability of Federal and Sindh WWF on Mutual Funds, the MUFAP obtained a legal opinion on these matters and based on such legal advice (which also stated that even if a review petition is filed by any party, such petition can only be based on very limited grounds and the chances of any major change in the SCP judgement are very limited), has recommended to all its members on January 12, 2017 the following: (i) The provision against the Federal WWF held by the Mutual Funds till June 30, 2015 should be reversed on January 12, 2017; and

132 (ii) Provision against Sindh WWF, on prudent basis, should be made from the date of enactment of the Sindh WWF Act, 2014 (i.e. May 21, 2015) with effect from January 12, The above decisions were communicated to SECP and the Pakistan Stock Exchange Limited on January 12, In response to the aforementioned letter SECP vide its letter dated February 1, 2017 advised MUFAP that the adjustments relating to the above should be made prospectively and adequate disclosure shall be made in the condensed interim financial information of Mutual Funds. Accordingly, the Fund has recorded these adjustments in its books of account on January 12, The cumulative net effect of the above two adjustments had these been made as at December 31, 2016 is a decrease in the net assets value per unit by Re (0.001%) per unit. 10. CONTINGENCIES AND COMMITMENTS 10.1 Contingencies There were no contingencies outstanding as at December 31, Commitments (Un-audited) (Audited) December 31, June 30, (Rupees in '000) TAXATION Purchase of: 870 (June 30, 2016: 850) ounce gold in US$ 1,034,115 (June 30, 2016: US $ 1,125,655) 95, ,141 This represents the investment in future gold contracts with settlement dates of January 26, 2017 (June 30, 2016: July 25, 2016). The Fund's income is exempt from income tax as per clause (99) of part I of the Second Schedule to the Income Tax Ordinance, 2001 subject to the condition that not less than 90% of the accounting income for the year as reduced by capital gains whether realised or unrealised is distributed in cash amongst the unit holders. The Management Company intends to distribute not less than 90% of its annual accounting income in cash, if any, to comply with the above clause at year end. Accordingly, no tax provision has been made in this condensed interim financial information for the half year ended December 31, EARNINGS PER UNIT Earnings per unit (EPU) has not been disclosed as in the opinion of the Management Company the determination of the cumulative weighted average number of outstanding units is not practicable. 13. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES Details of transactions with the related parties and balances with them at the period end are as follows:

133 For the period ended December 31, 2016 (Un-audited) Transactions during the period Profit on PLS savings accounts Bank charges Units issued (units in '000) Units redeemed (units in '000) Remuneration * 1, For the period ended December 31, 2015 (Un-audited) Transactions during the period Profit on PLS savings accounts Units issued (units in '000) Units redeemed (units in '000) Remuneration * 1, As at December 31, 2016 (Un-audited) Balances held Units held (units in '000) - 1, Units held (Rupees '000) - 86, Bank balances - 10, Remuneration payable Sales load and other payables Profit receivable As at June 30, 2016 (Audited) Balances held Units held (units in '000) - 1, Units held (Rupees '000) - 97, Bank balances - 3, Remuneration payable Sales load and other payables Profit receivable * Remuneration for the period is inclusive of Sindh Sales Tax. 14. FAIR VALUE OF FINANCIAL INSTRUMENTS Other Funds under Directors connected Management Associated common and key persons / company companies Trustee management executives related parties (Rupees in '000) IFRS 13 establishes a single source of guidance under IFRS for all fair value measurements and disclosures about fair value measurement where such measurements are required as permitted by other IFRSs. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. an exit price). Adoption of IFRS 13, has no affect on this condensed interim financial information. Financial assets which are tradable in an open market are revalued at the market prices prevailing on the statement of assets and liabilities date. The estimated fair value of all other financial assets and financial liabilities is considered not significantly different from book value. The following table shows financial instruments recognized at fair value, analyzed between those whose fair value is based on: The table below analyse financial instruments measured at the end of the reporting half year by the level in the fair value hierarchy into which the fair value measurement is categorised: Level 1: Level 2: Level 3: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Fair value measurements using inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs).

134 Financial assets measured at fair value December 31, 2016 (Un-audited) Carrying amount Fair value Fair value Other financial through profit Available for Loans and assets / financial or loss sale receivables liabilities Total Level 1 Level 2 Level 3 Total Note (Rupees) (Rupees) Held-for-trading - derivative financial instruments Future gold contracts (2,895) (2,895) (2,895) - - (2,895) Financial assets not measured at fair value 14.1 Bank balances ,974-87, Mark-up / interest receivable Deposits ,764-40,764 (2,895) - 129, ,232 (2,895) - - (2,895) Financial liabilities not measured at fair value 14.1 Payable to the Management Company Remuneration payable to the Trustee Accrued and other liabilities Financial assets measured at fair value June 30, 2016 (Audited) Carrying amount Fair value Fair value Other financial through profit Available for Loans and assets / financial or loss sale receivables liabilities Total Level 1 Level 2 Level 3 Total (Rupees) (Rupees) Held-for-trading - derivative financial instruments Future gold contracts 8, ,407 8, ,407 Financial assets not measured at fair value Bank balances ,216-89, Mark-up / interest receivable Deposits ,460-36, , , ,525 8, ,407 Financial liabilities not measured at fair value Payable to the Management Company Remuneration payable to the Trustee Accrued and other liabilities During the period ended December 31, 2016, there were no transfers between level 1 and level 2 fair value measurements, and no transfer into and out of level 3 fair value measurements.

135 14.1 The Fund has not disclosed the fair values for these financial assets and financial liabilities, as these are either short term in nature or repriced periodically. Therefore, their carrying amounts are a reasonable approximation of fair value. 15. CORRESPONDING FIGURES Prior period's figures have been rearranged / reclassified wherever necessary for better presentation and comparison. However, there were no material reclassifications to report. 16. SUBSEQUENT EVENT As fully disclosed in note 9 to this condensed interim financial information, the Fund has recorded a reversal of provision maintained against Workers Welfare Fund and simultaneously recorded provision against Sindh Workers Welfare Fund on January 12, The financial impact of such adjustments are disclosed in the said note. 17. DATE OF AUTHORISATION FOR ISSUE This condensed interim financial information was authorised for issue by the Board of Directors of the Management Company on February 13, GENERAL Figures have been rounded off to the nearest thousand rupees. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

136 UAAF UBL Asset Allocation Fund INVESTMENT OBJECTIVE The investment objective of the Fund is to earn competitive return by investing in various asset classes/ instruments based on the market outlook. Management Company Trustee Distribution Company Auditors Bankers UBL Fund Managers Limited Central Depository Company of Pakistan Limited 99-B, Block-B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi. Tel: (9221) United Bank Limited (for detail of others, please visit our website: KPMG Taseer Hadi & Co., Chartered Accountants United Bank Limited Bank Alfalah Limited Management Co.Rating AM2++ (JCR VIS)

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139 UBL Asset Allocation Fund Condensed Interim Statement of Assets and Liabilities As at 31 December 2016 Note (Unaudited) (Audited) 31 December 30 June (Rupees in '000) Assets Bank balances 4 220, ,858 Investments 5 1,918,027 1,245,206 Receivable against sale of investments 23,744 - Dividend receivable 1,430 1,347 Prepayments, accrued mark up, deposits & other receivable 11,160 35,099 Advance Tax 6 1, Preliminary expenses and floatation costs Total assets 2,176,010 1,856,797 Liabilities Payable to the Management Company 7 2,550 3,769 Payable to the Trustee Annual fee payable to Securities and Exchange Commission of Pakistan 1,040 1,617 Provision for Workers' Welfare Fund 8 5,947 5,947 Accrued expenses and other liabilities 9 12,221 19,073 Total liabilities 22,058 30,688 Net assets 2,153,952 1,826,109 Unit holders' funds 2,153,952 1,826,109 Contingencies and commitments (Number) Number of units in issue 15,693,569 14,716, (Rupees) Net assets value per unit The annexed notes 1 to 16 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

140 UBL Asset Allocation Fund Condensed Interim Income Statement (Unaudited) For the half year and quarter ended 31 December 2016 Note For the half year ended For the quarter ended 31 December 31 December (Rupees in '000) Income Financial income 11 37,415 35,446 18,955 19,740 Gain / (loss) on sale of investment - net 54,944 (1,966) 19,826 (13,787) Dividend income 21,394 16,647 14,895 9,241 Profit on bank balances 11,601 6,671 4,244 3,716 Unrealised gain in the value of investment 'at fair value through profit or loss' ,026 6, ,112 25,145 Other income Total income 230,405 63, ,057 44,500 Expenses Remuneration to the Management Company 10,948 7,827 5,656 4,520 Sales tax on Management Fee 1,423 1, Provision for indirect duties and taxes 9-1, Remuneration to the Trustee 1,807 1, Annual fee to Securities and Exchange Commission of Pakistan 1, Auditors' remuneration Brokerage expenses 2,459 1,223 1, Amortisation of preliminary expenses Bank charges Listing fee expense Other expenses Allocated expenses 7 1, Total expenses 20,148 14,684 11,031 8,680 Element of (loss) / income and capital (losses) / income included in prices of units issued less those in units redeemed - net (3,682) 12,196 (13,964) 5,977 Net income for the period before taxation 206,575 61, ,062 41,797 Taxation Net income for the period after taxation 206,575 61, ,062 41,797 The annexed notes 1 to 16 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

141 UBL Asset Allocation Fund Condensed Interim Statement of Comprehensive Income (Unaudited) For the half year and quarter ended 31 December 2016 For the half year ended For the quarter ended 31 December 31 December (Rupees in '000) Net income for the period 206,575 61, ,062 41,797 Other comprehensive income for the period Total comprehensive income for the period 206,575 61, ,062 41,797 The annexed notes 1 to 16 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

142 UBL Asset Allocation Fund Condensed Interim Distribution Statement (Unaudited) For the half year ended 31 December 2016 For the half year ended 31 December (Rupees in '000) Undistributed income brought forward 261, ,651 Net income for the period 206,575 61,374 Undistributed income carried forward 468, ,025 The annexed notes 1 to 16 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

143 UBL Asset Allocation Fund Condensed Interim Cash Flow Statement (Unaudited) For the half year ended 31 December 2016 CASH FLOWS FROM OPERATING ACTIVITIES For the half year ended 31 December (Rupees in '000) Net income for the period 206,575 61,374 Adjustments for: Financial income (37,415) (35,446) (Gain) / loss on sale of investment - net (54,944) 1,966 Dividend income (21,394) (16,647) Profit on bank balances (11,601) (6,671) Provision for indirect duties and taxes - 1,428 Provision for Workers' Welfare Fund - - Unrealised gain in the value of investment 'at fair value through profit or loss' (105,026) (6,619) Amortisation of preliminary expenses Element of loss / (income) and capital losses / (income) included in prices of units issued less those in units redeemed - net 3,682 (12,196) (226,599) (74,084) Net cash flows used in operations before working capital changes (20,024) (12,710) Working capital changes (Increase) / decrease in assets Investments (512,852) (418,959) Receivable against unit issue 2,740 3,355 Receivable against sale of investment (23,744) 23,773 Advance tax (147) - Prepayments, accrued mark up, deposits & other receivable (526) 3,001 (534,529) (388,830) Increase / (decrease) in liabilities Payable to the Management Company (1,219) 886 Remuneration payable to the Trustee Payable to Securities and Exchange Commission of Pakistan (577) (116) Accrued and other liabilities (6,852) (3,812) (8,630) (2,944) Mark-up / interest income received 70,741 36,932 Dividend received 21,311 16,733 Net cash flows used in operating activities (471,131) (350,819) CASH FLOWS FROM FINANCING ACTIVITIES Receipt from issuance of units 1,114,573 1,204,105 Payments against redemption of units (996,987) (584,300) Net cash flows generated from financing activities 117, ,805 Cash and cash equivalents at beginning of the period 573,858 22,719 Cash and cash equivalents at end of the period 220, ,705 CASH AND CASH EQUIVALENTS Bank Balances 220, ,705 The annexed notes 1 to 16 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

144 UBL Asset Allocation Fund Condensed Interim Statement of Movement in Unit Holders' Funds (Unaudited) For the half year ended 31 December 2016 For the half year ended 31 December (Rupees in '000) Net assets at beginning of the period 1,826, ,622 Cash received on issuance of 8,684,731 units (31 December 2015: 10,101,905 units) 1,114,573 1,204,105 Cash paid on redemption of 7,707,444 units (31 December 2015: 4,888,042 units) (996,987) (584,300) 117, ,805 1,943,695 1,619,427 Element of loss / (income) and capital losses / (gains) in prices of units issued less those in units redeemed 3,682 (12,196) Gain / (loss) on sale of investment - net 54,944 (1,966) Unrealised gain in the value of investment 'at fair value through profit or loss' 105,026 6,619 Total other comprehensive income for the period - net 46,605 56,721 Net income for the period less distribution 206,575 61,374 Net assets at the end of the period 2,153,952 1,668,605 Net assets value per unit as at beginning of the period end Net assets value per unit as at end of the period end The annexed notes 1 to 16 form an integral part of this condensed interim financial information. For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

145 UBL Asset Allocation Fund Notes to the Financial Statements For the half year ended 31 December LEGAL STATUS AND NATURE OF BUSINESS UBL Asset Allocation Fund (the Fund) was established under the Non Banking Finance Companies (Est & Reg) Rules, 2003 (the NBFC Rules) as an open end mutual fund, it was constituted under the Trust Deed, dated 29 May 2013 executed between UBL Fund Managers Limited (a wholly owned subsidiary company of United Bank Limited) as the Management Company and Central Depository Company of Pakistan Limited ("CDC") as the Trustee. The Trust Deed was approved by the Securities and Exchange Commission of Pakistan ("SECP") on June 30, 2013 in accordance with the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 ("NBFC Rules"). The registered office of the Management Company is situated at the 4th Floor STSM Building, Beaumont Road, Civil Lines Karachi, with effect from 06 April Previously it was situated at 8th Floor, State Life Building No.1, I.I Chundrigar Road, Karachi, Pakistan. The Management Company of the Fund is registered with the SECP as a Non-Banking Finance Company under the NBFC Rules, The Fund is an open ended mutual fund listed on Pakistan Stock Exchange (formerly Islamabad Stock Exchange (Guarantee) Limited merged/integrated with KSE & LSE on 11 January 2016). Units of the Fund are offered for public subscription on a continuous basis. The units are transferable and can be redeemed by surrendering them to the Fund at the option of the unit holders The units of the Fund were initially offered to the public (IPO) on 19th August 2013, The Fund commenced its operations from 20 August The policy of the Fund is to invest in a diversified portfolio of shares of listed companies, continuous funding system (CFS), spread transactions and other money market instruments. Under circular 07 dated 6 March 2009 issued by the SECP, the Fund has been categorised by the Management Company as an Asset Allocation Fund. Title to the assets of the Fund are held in the name of Central Depository Company of Pakistan Limited as the Trustee of the Fund. 2. BASIS OF PRESENTATION 2.1 Statement of compliance This condensed interim financial information has been prepared in accordance with the approved accounting standards as applicable in Pakistan for interim financial reporting. The approved accounting standards comprise of such International Financial Reporting Standards ("IFRSs") issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984, the requirements of the Trust Deed, the NBFC Rules, the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the "NBFC Regulations") and the directives issued by the SECP. Wherever the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP differ with the requirements of the IFRS, the requirements Trust Deed, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP prevail.

146 2.2 This condensed interim financial information of the Fund does not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the financial statements of the Fund for the year ended 30 June In compliance with schedule V of the Non Banking Finance Companies & notified Entities Regulations, 2008, the directors of the Management Company, hereby declare that this condensed interim financial information gives a true and fair view of the state of the Fund's affairs as at 31 December SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES AND JUDGEMENTS The accounting policies applied for the preparation of this condensed interim financial information are the same as those applied in the preparation of the annual published audited financial statements of the Fund for the year ended 30 June The preparation of this condensed interim financial information in conformity with the approved accounting standards requires management to make estimates, assumptions and use judgments that affect the application of policies and reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgments are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the period of revision. The significant estimates, judgments and assumptions made by the management in applying the accounting policies and the key sources of estimation of uncertainty were the same as those applied to the annual audited financial statements as at and for the year ended 30 June The financial risk management objectives and policies are consistent with those disclosed in the annual financial statements of the Fund for the year ended 30 June (Unaudited) (Audited) 31 December 30 June 4. BANK BALANCES (Rupees in '000) Saving Accounts , , Profit rates on these bank accounts range between 4.0% to 6.77% (30 June 2016: 4.0% to 5.75%) per annum. 5. INVESTMENTS Designated at fair value through profit or loss - Investment in debt securities 5.1 7,179 7,857 - Government securities 5.2 1,089, ,001 1,096, ,858 Held for Trading - Quoted equity securities , ,348 1,918,027 1,245,206

147 5.1 Investment in debt securities - Designated at fair value through profit or loss (Term Finance Certificates of Rs. 5,000 each) Unquoted Name of Security As at 01 July 2015 Purchased during the period Sold / matured during the period As at 31 December (Number of certificates) Carrying value as at 31 December 2016 Market value as at 31 December 2016 Market value as at 30 June (Rupees in '000) Percentage of total investments Percentage of net assets Electricity WAPDA TFC ( ) & , ,000 7,143 7,179 7, % 0.33% The cost of these investments is Rs million (30 June 2016: million) Significant terms and conditions of term finance certificates outstanding as at 31 December are as follows: Name of securities Remaining principal (Rupees) Mark-up rate (per annum) Issue date Maturity date WAPDA TFC ( ) 7,142,920 6 Months KIBOR +1% 27-Sep Sep Government Securities - Designated at fair value through profit or loss Yield Maturity up to As at 01 July 2016 Purchased during the period Sold / matured during the period As at 31 December (Number of Holdings) Cost / carrying value as at 31 December 2016 Market value as at 31 December 2016 Market value as at 30 June (Rupees in '000) Percentage of total investments Percentage of net assets PIBs -5 Years 9.25% % March , , , , , % 5.07% PIBs -10 Years - - 4, (5,000) Treasury Bills - 3 months 5.9% Feb ,000 (5,150) 9, , , % 45.49% Treasury Bills - 1 year ,000 (6,000) ,092,306 1,089, , % 50.56%

148 5.3 Quoted equity securities - 'held for trading' Name of the investee company Note As at 01 July 2016 Purchased during the period Bonus / Right issue during the period Sold during the period As at 31 December 2016 Cost / carrying value Market value Appreciation / (diminution) Percentage of total investments Percentage of net assets Paid up capital of investee company (with face value of investment) (Number of shares) (Rupees in '000) (%) Unless stated otherwise, the holdings are in ordinary shares of Rs. 10 each. OIL AND GAS Pakistan Oilfields Limited - 60,000 - (60,000) Mari Petroleum Company Limited 24,600 30,400 - (24,650) 30,350 28,222 41,729 13, % 1.94% 0.03% Pakistan State Oil Company Limited 152,500 31,000 - (102,000) 81,500 31,611 35,388 3, % 1.64% 0.03% Oil & Gas Development Company Limited - 300,000 - (35,000) 265,000 39,872 43,818 3, % 2.03% 0.01% Pakistan Petroleum Limited - 91, ,900 16,545 17, % 0.80% 0.00% Sui Northern Gas Pipelines Limited - 532,000 - (175,000) 357,000 21,178 29,120 7, % 1.35% 0.06% 137, ,349 29, % 7.76% 0.13% POWER GENERATION & DISTRIBUTION Hub Power Company Limited 359, ,000 - (409,000) 250,100 30,149 30, % 1.43% 0.02% K-Electric Limited* - 5,000,000 - (5,000,000) Lalpir Power Limited - 2,020,500 - (180,000) 1,840,500 42,676 44,540 1, % 2.07% 0.48% 72,825 75,422 2, % 3.50% 0.50% CHEMICALS Engro Fertilizers Limited 400,000 - (400,000) Engro Corporation Limited 176,600 25,000 - (95,000) 106,600 35,470 33,695 (1,775) 1.76% 1.56% 0.02% ICI Pakistan Limited - 16, ,300 13,379 16,198 2, % 0.75% 0.02% 48,849 49,893 1, % 2.31% 0.04% CONSTRUCTION AND MATERIAL Attock Cement Pakistan Limited 87,600 48,200 - (50,500) 85,300 21,043 28,683 7, % 1.33% 0.07% D.G Khan Cement Company Limited , ,000 - (102,500) 237,900 46,453 52,750 6, % 2.45% 0.05% Lucky Cement Limited 122, (61,800) 61,100 39,624 52,928 13, % 2.46% 0.02% Thatta Cement Company Limited - 350,000 - (350,000) Pioneer Cement Limited - 249,000 - (249,000) Cherat Cement Company Limited - 40,000 - (40,000) Kohat Cement Company Limited - 75, ,000 21,074 21, % 1.02% 0.36% 128, ,234 28, % 7.26% 0.50% PAPER AND BOARD Cherat Packaging Limited 82, ,800 28,299 27,985 (314) 1.46% 1.30% 0.28% Packages Limited 4, (4,400) ,299 27,985 (314) 1.46% 1.30% 0.28%

149 Note As at 01 July 2016 Purchased during the period Bonus / Right issue during the period Sold during the period As at 31 December 2016 Cost / carrying value Market value Appreciation / (diminution) Percentage of total investments Percentage of net assets Paid up capital of investee company (with face value of investment) (Number of shares) (Rupees in '000) (%) AUTOMOBILE AND PARTS Indus Motor Company Limited - 1,850 - (1,850) Honda Atlas Cars (Pakistan) Limited - 20, ,000 11,241 13,373 2, % 0.62% 0.01% Agriauto Industries Limited - 100, ,300 19,417 26,778 7, % 1.24% 0.70% Thal Limited - 47, ,300 20,155 24,053 3, % 1.12% 0.12% Pak Suzuki Motor Company Limited - 44,000 - (22,000) 22,000 13,916 13,482 (434) 0.70% 0.63% 0.03% 64,729 77,686 12, % 3.61% 0.86% REAL ESTATE INVESTMENT TRUST TPL Properties Limited 200, (200,000) BANKS United Bank Limited** ,200 2,500 - (117,500) 114,200 20,263 27,282 7, % 1.27% 0.01% Habib Bank Limited 152, (46,900) 105,100 29,475 37,736 8, % 1.75% 0.01% Bank Al Habib Limited - 700, ,500 33,643 41,322 7, % 1.92% 0.06% Bank Alfalah Limited - 530,000 - (400,000) 130,000 4,005 4, % 0.23% 0.01% MCB Bank Limited 80, ,500 - (20,000) 177,500 39,841 42,213 2, % 1.96% 0.02% 127, ,488 26, % 7.13% 0.11% TEXTILE Nishat Chuninan Limited - 700,000 - (700,000) Kohinoor Textile Mills Limited - 279,000 - (35,000) 244,000 20,164 28,353 8, % 1.32% 0.09% Crescent Textile Mills Limited - 1,000, ,000,000 32,818 27,500 (5,318) 1.43% 1.28% 1.25% 52,982 55,853 2, % 2.60% 1.34% INDUSTRIAL METAL & MINING Amreli Steels Limited 450, ,000 - (650,000) International Steel Limited 697, (697,500) Mughal Iron & Steel Industries - 400, ,000 36,800 35,265 (1,535) 1.84% 1.64% 0.32% 36,800 35,265 (1,535) 1.84% 1.64% 0.32% PHARMACEAUTICALS The Searl Company Limited ,190-14,305 (82,000) 34,495 16,219 22,553 6, % 1.05% 0.02% 16,219 22,553 6, % 1.05% 0.02% INDUSTRIAL TRANSPORTATION Pakistan International Bulk Terminal Limited 971, (971,000) Total equity securities - 31 December , , , % 38.15% Total equity securities - 30 June , ,348 56, % 31.59% * Par value of Rs.3.5 each ** This represents investment held in a related party.

150 5.3.1 The above equity securities include shares pledged with National Clearing Company of Pakistan Limited having a market value (in aggregate) amounting to Rs million (June 2016: Rs million) for guaranteeing settlement of the Fund's trades in accordance with circular No. 11 dated 23 October 2007 issued by the Securities and Exchange Commission of Pakistan The Finance Act, 2015 has brought amendments in the Income Tax Ordinance, 2001 whereby the bonus shares received by the shareholder are to be treated as income and a tax at the rate of 5 percent is to be applied on value of bonus shares determined on the on the basis of day end price on the first day of closure of books. The tax is to be collected at source by the company declaring bonus shares which shall be considered as final discharge of tax liability on such income. However, the management of the Fund jointly with other asset management companies and Mutual Fund Association of Pakistan, has filed a petition in Honourable Sindh High Court to declare the amendments brought in Income Tax Ordinance, 2001 with reference to tax on bonus shares for collective investment schemes as null and void and not applicable on the mutual funds based on the premise of exemption given to mutual funds under clause 47B and 99 of Second Schedule of Income Tax Ordinance, The Honourable Sindh High Court has granted stay order till the final outcome of the case. Accordingly, the investee company has withheld the shares equivalent to 5 % of bonus announcement and not deposited in CDC account of department of Income Tax. Further, 1,242 shares against withholding tax held by Searle Company Limited have neither been released nor deposited with the Government Treasury. However, the Fund has included the withheld bonus shares in the portfolio on the basis of the aforementioned stay order. For the half year ended 31 December 31 December 5.4 Unrealized gain on value of investments classified as 'at fair value through profit or loss' (Unaudited) (Rupees in '000) Market value of investments 1,918,027 1,357,007 Less: Carrying value of investments (1,813,001) (1,350,388) 105,026 6, ADVANCE TAX The income of the fund is exempt under clause 99 of Part I of the Second schedule of the Income Tax Ordinance 2001 and funds are exempt under clause 47(B) of Income Tax Ordinance 2001 from withholding of tax under section 150 and 151 of Income Tax Ordinance The Federal Board of Revenue through a circular C.No.1 (43) DG (WHT)/ 2008-Vol.II R dated 12 May 2015, made it mandatory to obtain exemption certificates under section 159(1) of the Income Tax Ordinance, 2001 from Commissioner Inland Revenue. Various withholding agents have deducted advance tax under section 151 of the Income Tax Ordinance, 2001 during current and prior periods. The management is confident that the same shall be refunded. 7. PAYABLE TO MANAGEMENT COMPANY This includes reimbursement of certain expenses to the management company amounting to Rs million (30 June 2016: 1.1 million). During the period, fund was charged 0.1% of average annual net assets as allocated expense according to Regulation 60 of NBFC Regulations, PROVISION FOR WORKERS' WELFARE FUND The Finance Act, 2008 introduced an amendment to the Workers' Welfare Fund Ordinance, 1971 (WWF Ordinance) as a result of which it was construed that all Collective Investment Schemes / Mutual Funds (CISs) whose income exceeded Rs. 500,000 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 taxable income, whichever was higher.

151 The amendments introduced in the WWF Ordinance were challenged in various High Courts of Pakistan. The Honorable Lahore High Court (LHC) and the Honorable Sindh High Court (SHC) arrived at different conclusions in respect of the validity of the amendments made through the Finance Act in relation to the WWF. Both the decisions of the LHC and the SHC were challenged in the Honorable Supreme Court of Pakistan (SCP). During the period, the SCP passed a judgment on 10 November 2016, declaring the insertion of amendments introduced through Finance Act, 2008 pertaining to WWF as unlawful for the reason that the WWF is not in the nature of tax and therefore, could not be introduced through money bill under the Constitution. Subsequently, the Federal Board of Revenue (FBR) has filed a review petition in the SCP against the said judgment, which is pending adjudication. Further, as a consequence of the 18th amendment to the Constitution, levy for the WWF was also introduced by the Government of Sindh through the Sindh Workers Welfare Fund (SWWF) Act SWWF Act 2014, enacted on 21 May 2015, requires every Industrial Establishment located in the province of Sindh and having total income of Rs. 500,000 or more in any year of account commencing on or after the date of closing of account on or after 31 December 2013, to pay two percent of so much of its total income declared to SWWF. The said Act includes any concern engaged in the Banking or Financial Institution in the definition of "Industrial Undertaking" but does not define Financial Institution. The Management Company, based on an opinion obtained by the Mutual Fund Association of Pakistan (MUFAP), believes that Mutual Funds are not liable to pay Sindh WWF under the said law, for the reason that the Mutual Funds are not financial institutions and rather an investment vehicle. However, the Sindh Revenue Board has not accepted the said position of MUFAP and as a result, MUFAP has taken up this matter with the Sindh Finance Ministry for resolution. In view of the above developments regarding the applicability of Federal and Sindh WWF on Mutual Funds, the MUFAP obtained a legal opinion on these matters and based on such legal advice (which also stated that even if a review petition is filed by any party, such petition can only be based on very limited grounds and the chances of any major change in the SCP judgement are very limited), has recommended to all its members on 12 January 2017 the following: - The provision against the Federal WWF held by the Mutual Funds till 30 June 2015 should be reversed on 12 January 2017; and - Provision against Sindh WWF, on prudent basis, should be made from the date of enactment of the Sindh WWF Act, 2014 (i.e., 21 May 2015) with effect from 12 January The above decisions were communicated to the Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange on 12 January In response to the aforementioned letter SECP vide its letter dated 1 Febuary 2017 advised MUFAP that the adjustments relating to the above should be made prospectively and adequate disclosure shall be made in the condensed interim financial information of mutual funds. Accordingly, the Fund has recorded these adjustments in its books of account on 12 January The cumulative net effect of the above two adjustments if it had been made at 31 December 2016 would have resulted in decrease in the Net Asset Value per unit by Rs ACCRUED EXPENSES AND OTHER LIABILITIES This includes provision for indirect duties and taxes amounting to Rs million (30 June 2016: Rs million). As per the requirements of the Finance Act, 2013, Federal Excise Duty (FED) at the rate of 16 percent on the remuneration of the Management Company has been applied effective from 13 June The Management Company is of the view that since the remuneration is already subject to the provincial sales tax, further levy of FED may result in double taxation, which does not appear to be the spirit of the law, hence, a petition was collectively filed by the Mutual Fund Association of Pakistan with the Sindh High Court (SHC) on 4 September 2013.

152 While disposing the above petition through order dated 16 July 2016, the SHC declared the said provisions to be ultra vires and as a result no FED is payable with effect from 01 July However, the tax authorities subsequently filed appeal against the decision of the SHC in the Supreme Court of Pakistan, which is pending for the decision. Furthermore, the Finance Act 2016 also introduced an amendment to the Federal Excise Act, 2005 whereby FED was withdrawn on services of different industries including Non-Banking Financial Institutions, which are already subject to provisional sales tax. However, since the appeal is pending in the Honorable Supreme Court of Pakistan, the Management Company, as a matter of abundant caution, is carrying amount payable in respect to FED for the period from 13 June 2013 to 30 June CONTINGENCIES AND COMMITMENTS As at 31 December 2016, there are no contingencies and commitments. 11. FINANCIAL INCOME Half year ended Quarter ended 31 December 31 December 31 December 31 December (Unaudited) (Rupees in '000) Mark-up / return on: - Government Securities 37,144 35,074 18,829 19,575 - TFC ,415 35,446 18,955 19, TAXATION The Fund's income is exempt from Income Tax as per clause (99) of part I of the Second Schedule of the Income Tax Ordinance, 2001 subject to the condition that not less than 90% of the accounting income for the year as reduced by capital gains whether realised or unrealised is distributed in the form of cash amongst the unit holders. Furthermore, as per regulation 63 of the Non-Banking Finance Companies and Notified Entities Regulations, 2008, the Fund is required to distribute 90% of the net accounting income other than unrealized capital gains to the unit holders. The Fund is also exempt from the provisions of Section 113 (minimum tax) under Clause 11 of Part IV of the Second Schedule to the Income Tax Ordinance, The management intends to distribute in the form of cash at least 90% of the income earned by the period end by this Fund to the unit holders, accordingly no provision has been made in this interim financial information. 13. TOTAL EXPENSE RATIO In the current period, Securities and Exchange Commission of Pakistan (SECP) vide directive no. SCD/PRDD/Direction/18/2016 dated 20 July 2016, requires that collective Investment Scheme (CIS) shall disclose Total Expense Ratio (TER) in the periodic financial statements of CIS / the Fund. TER of the Fund for the period ended 31 December 2016 is 0.93% which include 0.12% representing government levy, Workers' Welfare Fund and SECP fee. 14. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES Connected persons / related parties comprise of United Bank Limited (Holding Company of Management Company), UBL Fund Managers Limited (Management Company), Al-Ameen Islamic Financial Services (Pvt) Ltd (Subsidiary of Management Company) Entities under the common management or directorship, Central Depository Company of Pakistan Limited as trustee of the fund, the directors and officer of the management company and unit holders holding more than 10% units of the fund.

153 Remuneration payable to the Management Company and the Trustee is determined in accordance with the provisions of the NBFC Rules, NBFC Regulations and the Trust Deed respectively. All other transactions with related parties / connected persons are in the normal course of business, at contracted rates and terms determined in accordance with the market rates. Details of transactions with related parties / connected persons and balances with them at the period end, other than those which have been specifically disclosed elsewhere in this condensed interim financial information are as follows: Management company Associated companies Trustee Funds under common management Directors and key executives Other connected persons / related parties Transactions during the period (Rupees in '000) (For the half year ended 31 December 2016) Profit on saving accounts Bank charges Units issued - 180, ,086 - Units redeemed 56, ,136 - Purchase of securities - 494, Sale of securities ,813 14,307 - Dividend received - 1, Remuneration 10,948-1, Sales tax on management fee 1, Allocated expenses 1, Balances held (As at 31 December 2016) Units held (Number of units in '000) - 5, Units held (Amount in '000) - 765, ,098 - Bank balances* - 24, Remuneration payable 2, Sales load & other Payable Profit receivable -bank balances Allocated expenses Investments - 27, * These carry profit ranging between 4.00% to 6.77% per annum. Transactions during the period (For the half year ended 31 December 2015) Profit on savings accounts Bank charges Units issued 50, , ,529 - Units redeemed ,392 - Sale of securities Purchase of securities - 214, , Dividend received - 1, Remuneration 7,827-1, Sales tax on management fee 1, Allocated expenses Balances held (As at 30 June 2016) Units held (Number of units in '000) 442 4, Units held (Amount in '000) 54, , ,187 - Bank balances* - 46, Remuneration Payable 1, Sales Tax on Management fee Sales load and other payable Allocated expenses 1, Remuneration payable to Trustee Investments - 40, Profit receivable * These carry profit ranging between 4% to 5.75% per annum.

154 15. FINANCIAL INSTRUMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Underlying the definition of fair value is the presumption that the Fund is a going concern without any intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms. The fair value of financial assets and liabilities traded in active markets i.e. listed equity shares are based on the quoted market prices at the close of trading on the period end date. The quoted market prices used for financial assets held by the Fund is current bid price. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm s length basis. The Fund measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements: Level 1: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or liabilities traded. Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs). The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. On-balance sheet financial instruments 31 December 2016 Note Fair value through profit and loss Available for sale Carrying amount Loans and receivables Other financial liabilities Fair value Total Level 1 Level 2 Level 3 Total (Rupees in '000) Financial assets measured at fair value Investments in debt securities 7, ,179-7,179-7,179 Government securities 1,089, ,089,120-1,089,120-1,089,120 Quoted equity security 821, , , ,728 1,918, ,918, ,728 1,096,299-1,918,027 Financial assets not measured at fair value 15.1 Bank balances 220, ,313 Dividend receivable 1,430 1,430 Advances, deposits, prepayments, 11,160 11,160 and receivables 232, ,903 Financial liabilities not measured at fair value 15.1 Payable to the Management Company 2,550 2,550 Payable to the Trustee Payable to SECP 1,040 1,040 Accrued and other liabilities 12,221 12,221 16,111 16, June 2016 Fair value through profit and loss Available for sale Carrying amount Loans and receivables Other financial liabilities Fair value Total Level 1 Level 2 Level 3 Total (Rupees in '000) Financial assets measured at fair value Investments in debt securities 7, ,857-7,857-7,857 Government securities 658, , , ,001 Quoted equity security 579, , , ,348 1,245, ,245, , ,858-1,245,206 Financial assets not measured at fair value 15.1 Bank balances 573, ,858 Dividend Receivable 1,347 1,347 Advances, deposits, prepayments, and 35,099 35,099 receivables 610, ,304 Financial liabilities not measured at fair value 15.1 Payable to the Management Company 3,769 3,769 Payable to the Trustee Payable to SECP 1,617 1,617 Accrued and other liabilities 19,073 19,073 24,741 24,741

155 15.1 The Fund has not disclosed the fair values for these financial assets and financial liabilities, as these are either short term in nature or reprice periodically. Therefore, their carrying amounts are reasonable approximation of fair value. 16. GENERAL 16.1 This condensed interim financial information is presented in Pakistan Rupees which is also the Fund's functional currency and all financial information presented has been rounded off to the nearest thousand rupees unless otherwise stated This condensed interim financial information is unaudited and has been reviewed by the auditors. Furthermore, the figures for the quarter ended 31 December 2016 and 31 December 2015 in this condensed interim financial information have not been reviewed by the auditors This condensed interim financial information was authorized for issue by Board of Directors of the Management Company on February 13, For UBL Fund Managers Limited (Management Company) ---SD--- Chief Executive Officer ---SD--- Director

156 USF UBL Stock Advantage Fund INVESTMENT OBJECTIVE USF is an open-end equity fund, investing primarly in equities listed on the PSX. The Fund seeks to maximize total returns and outperform it s benchmark by investing in a combination of securities offering long-term capital gains and dividend yield potential. Management Company Trustee Distribution Company Auditors Bankers UBL Fund Managers Limited Central Depository Company of Pakistan Limited 99-B, Block-B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi. Tel: (9221) United Bank Limited (for detail of others, please visit our website: Deloitte Yousuf Adil & Co., Chartered Accountants United Bank Limited Bank Alfalah Limited Silk Bank Limited The Bank of Punjab Management Co.Rating AM2++ (JCR VIS)

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