Market Review & Outlook From the CIOʹs Desk

Transcription

1 s Report April 2012

2 Market Review & Outlook From the CIOʹs Desk April 12 finally closed the long standing issue of contempt of court case against the Prime Minister as the PM was convicted by the Supreme Court (SC) and sentenced till the rising of the court. However, the sentence failed to create any significant impact on the market. On the economic front, fiscal disparities continue to amplify, with only current account giving a positive surprise in Mar 12 with a USD 142mn surplus mainly aided by remittances holding steady at USD 1.1bn. CPI Inflation was recorded at 11.27% in April as the domestic fuel prices adjusted for the increase in international oil prices. Inflation will continue to pose a serious risk going forward as the pace of government borrowing (PKR 925bn 9MFY12) does not seems to be abating in the near future. Citing all these reasons, SBP maintained the discount rate at 12% in its April review, along with a surprise announcement of increase in the minimum deposit rate on savings accounts from 5% to 6%, owing to low savings to investment ratio. The economic numbers so far paint quiet an austere picture of the economy with external side posing a real threat with a USD 3.1 bn deficit so far. In the absence of any foreign inflows, government is only left with the domestic sources to finance these deficits which would continue to put pressure on fiscal account and inflation. Therefore, synchronization in both the fiscal and monetary policy is the need of the hour; without which the glitches faced by the economy cannot be addressed. Equity market oscillated around the 14,000 psychological mark, as the much awaited formal SRO on CGT collection mechanism was finally announced. The index as expected rallied on the news (High 14,217 pts.) and closed the month slightly under the 14,000 (up 1.7% MoM) mark due some profit taking. The Encouraging participation was witnessed from foreign investors who invested USD 22.1mn during the month highest level since May Fundamentally, the market still seems quite attractive, and major setback can only come in the form of any negative developments on the political/budget front or the fallout effects of widening macroeconomic imbalances. Having recorded one of the strongest starts to a calendar year, global equity markets pulled back some of their year to date gains in April. The Euro Zone equity markets were amongst the biggest casualties, where MSCI Euro Index fell by 6.7%, while perceived safe haven government bond yields traded back towards the lows seen in the fourth quarter of 2011 German 10 year Bunds hit an all time low of 1.65%. Once again, the spotlight was on Europe as questions surrounding the sustainability of Spain s fiscal position resurfaced. Spain has now joined Italy, Portugal, Ireland, Greece, Belgium and the Netherlands on the list of countries with shrinking economies. In the US, fading prospects of further quantitative easing also served to initially weaken investor appetite for risky assets. However, towards the end of the month a more encouraging tone was set by US corporate earnings, resulting in market prices rebounding close to the month s starting point. In emerging markets, concerns over growth on the back of slowdown in demand from Euro Zone caused for decline in MSCI Emerging Market index by 1.5%. Considering mounting pressure on growth, Reserve Bank of India reduced its lending rate by 50bps to 8% first such much move in almost 36 months. Due to the prevailing issues faced by the economy and the future interest rate outlook, assessing the timing of any U turn is the key. Therefore, we would continue to be watchful towards the changes in the economic setting of the country and will adjust our Fund Management strategy accordingly. Our priority is to provide stable and market competitive returns by adjusting the maturity profile of our fixed income / money market funds according to the changing interest rate scenario. Word for our equity investors is the same i.e. to stick to their investments in both USF and UCIF to attain the maximum advantage of diversified and quality portfolio in order to earn maximum risk adjusted returns over the medium to long term. Money Market Review & Outlook Developments during the month SBP conducted T bills auction twice during the month with an aggregate target of PKR360bn. Participation of PKR~411.1bn was witnessed, while the accepted amount was PKR~289.3bn. The latest cut off yields are: 03 months: % (Previous cut off %) 06 months: (Previous cut off ) 12 months: Rejected% (Previous cut off %) SBP conducted GOP Ijarah Sukuk auction with a target of PKR 25bn. Healthy participation of PKR~50.4bn was witnessed, while the accepted amount was PKR~29.6bn. Economic Figures recently released CPI Inflation stood at 11.27% Y o Y for the month of April 12 against 10.79% Y o Y in the previous month. Pakistan s foreign exchange reserves decreased to USD~16.42bn as on April 20, 2012 against USD~16.55bn at the end of March, Reserves with SBP stood at USD~11.91bn, while reserves held by commercial banks stood at USD~4.50bn. Remittances sent home by overseas Pakistanis have increased by 21.5% YoY to USD~9.73bn during 9M FY12 against USD~8.01bn received in the same period last year. Total deposits of scheduled banks as of March end stood at PKR~5.93tn, while investments and gross advances stood at PKR~3.08tn and PKR~3.60tn respectively. This translates into an Advances to Deposit Ratio (ADR) of 60.92% and an Investment to Deposit Ratio (IDR) of 52.16%. The State Bank of Pakistan (SBP) has decided to raise the minimum profit rate on rupee saving accounts from 5% to 6%. This will potentially reduce profitability of the banking sector; however, the impact would vary across the sector, with banks having relatively higher percentage of their deposits as saving accounts (at the minimum 5% threshold) being affected the most. Outlook We expect T Bill yields in the month of May 12 to remain range bound with the preference for shorter tenors to remain elevated. We expect yields of longer tenor instruments to oscillate in the prevailing range. However, yields on longer tenors might move further north if there is further deterioration in major macroeconomic indicators. That said, in our view, chances of a downward move in yields seems slim at best in the current challenging economic environment. Equity Market Review & Outlook Development during the month After posting impressive returns over last two months, the KSE 100 Index consolidated during the month of April and appreciated by 1.7%. Impressive financial results of Oil & Gas, Beverages, Automobile, Construction and Banking sectors kept investors interest alive over future potential of the market. Like the index levels, market activity also consolidated during the month, where average daily trading volumes declined by 6% M o M to 314mn. Highlighting improvement in investor sentiment, net foreign portfolio investments increased by 175% M o M to USD 22mn (highest level since May 2011). The Auto giants, Pak Suzuki and Indus Motors appreciated by 39% and 22% respectively during the month with the sector capitalization increasing by 18%. The Beverages sector which includes companies such as Shezan and Murree Brewery was the best performing sector during April with a 3 increase in market capitalization. The Construction & Materials sector (mostly cement companies) saw a healthy 14% increase in market capitalization as well on the back of strong corporate results for 9M FY12. President Asif Ali Zardari has promulgated the Capital Gains Tax Ordinance 2012 to give a boost to liquidity on the stock market. The Ordinance will become part of the Finance Bill 2012 to be placed before the National Assembly on May 25th and will only apply to investor portfolios on the ready market. Recently there has been surge in mergers and acquisition activity in the banking sector. Among the most prominent developments, Fauji Foundation has shown interest in acquiring Askari Bank, potential acquisition of IGI investment bank by Bank Al Falah and interest of Habib Bank and Bank Al Falah in acquiring Citi Bank s consumer business portfolio. Results PPL EPS (3Q FY12): PkR 9.25 (57.3% YoY) Above market expectations. POL EPS (3Q FY12): PkR (21.2% YoY) In line with market expectations. DGKC EPS (3Q FY12): PkR 1.81 In line with market expectations. LUCK EPS (3QFY 12): PkR 5.16 (64% YoY) Below market expectations. BAFL EPS (1QCY 12): PkR 0.89 (29% YoY) In line with market expectations. Outlook Going forward, KSE 100 Index is expected to consolidate in the range of 14,000 to 14,500. However, news flow regarding developments in Federal Budget FY 13 could cause for elevated volatility in specific sectors over the short term. Furthermore, quantum of foreign portfolio investment flows and news flow regarding potential benefits for corporate sector in the upcoming budget could potentially sway the market towards the 15,000 level.

3 UBL Liquidity Plus Fund During Aprilʹ12, the Fund generated a monthly return of 10.72% p.a. versus the benchmark return of 9.66% p.a. The Fund size increased by around 23% and closed the month at Rs31.6bn. Placements with Banks and DFIs on cumulative basis declined to 11% of net assets from 18% in the previous month, while investment in treasury bills increased by 5% to 83% of net assets at the close of the month. The Weighted Average Time to Maturity (WAM) of the Fund stood at 53 days at the end of the month. Considering the current volatile interest rate environment, the has opted to keep a low weighted average maturity of the fund assets so as to to deliver market competitive and stable returns. ULPF v/s 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 ULPF maintaining comparatively high liquidity. 2 Since Inception (p.a.) April 2012 (p.a.) Calendar Year 2012 (p.a.) Standard Deviation* Weighted Avg Time to Maturity ULPF 11.25% 10.17% 10.72% 9.66% 10.62% 9.62% % (4.35) (6.59) 53 days Mar 31 Apr 30 Fund Size (PKR Mn) 25,678 31, % NAV (PKR) % Yield (p.a) 5% 15 Jul Jul Aug Aug 11 9 Sep Sep 11 6 Oct Oct 11 3 Nov Nov 11 1 Dec Dec Dec Jan Jan 12 8 Feb Feb 12 7 Mar Mar 12 3 Apr Apr 12 * 12m Trailing ** 12m Trailing, 3M PKRV yield is used as a risk free rate Asset Allocation* Portfolio Quality* Cash, 5.6% Others, 0.1% Placements with Banks, 11.1% AA, 13.4% Others, 0.1% Listing Trustee Auditor Management Co.Rating Fund Rating Minimum Investment Load Dealing Days Cut off times Pricing Mechanism AA+, 3.2% Money Market Low June 21, M PKRV + 5 3M TDR (with AA or T Bills, AAA, better banks) 83.2% 83.2% Islamabad Stock Exchange (ISE) Central Depository Company (CDC) Asset Allocation (% of NAV)* Ernst & Young Ford Rhodes Sidat Hyder Placements with Banks 13% 17% 11% AM2 (JCR VIS) Placements with DFIs 3% 1% AA Plus (JCR VIS) Placements with NBFCs Rs. 500 Reverse Repo Nil (Front end) Nil (Back end) T Bills 8 78% 83% Monday to Friday Cash 4% 3% 6% Issuance: 1:00 p.m. (Mon Fri) Others Redemption: 9:30am (Mon Fri) * Portfolio Quality and Asset Allocation has been adjusted for payables at the end of the month Backward Key Interest Rates Management Fee 1.25% p.a. KIBOR (1M, 6M)* 11.77% 11.87% Discount Rate 12.0 Usama Bin Razi T Bill Cut Off (3M, 6M, 12M) 11.87% 11.94% 11.94% CPI(Apr) Y o Y Basis 11.27% Investment Committee Mir Muhammad Ali, Hasnain Raza Nensey, PIB Cut Off (3Yr, 5Yr, 10Yr) 12.59% 12.94% 13.2 * Average during month M. Imran Khalil, Ali Alvi, Usama Bin Razi Repo Rate (Overnight, 1M, 3M)* % ULPF ULPF 11.77% 12.26% 12.22% % 14.57% 10.64% 9.77% 11.42% 10.01% % 11.48% 10.31% 10.44% 10.48% 10.34% 10.36% 9.82% 9.61% 9.67% 9.59% % 9.66% 9.88% 11.71% 11.85% 11.93% 12.14% 12.22% 12.46% 12.45% 12.22% 12.16% 10.73% 11.76% 11.57% 10.28% 10.32% 10.37% % 13.12% 10.32% 10.26% 10.17% 9.59% 10.02% 9.96%

4 UBL Government Securities Fund During Aprilʹ12, the fund generated a monthly return of 10.58% p.a. against the benchmark return of 10.69% p.a., while the Fund size increased marginally by 2. to Rs5.3bn. Placement with banks decreased to from 23% of net assets in the previous month, while T bills exposure declined marginally to 62% of net assets against 63% previously. Exposure in GoP Ijarah Sukuks increased to 2 of net assets from 13% of net assets in the previous month. Duration of Fundʹs assets stood at 0.24 years at the end of the month. The believes that the Fund is well positioned to gain from any volatility in the interest rates while keeping the low risk profile of the Fund intact. The objective of the fund is to generate a competitive return with minimum risk, by investing primarily in Government Securities UGSF v/s UGSF 3 25% Since Inception (p.a.) April 2012 (p.a.) Calendar Year 2012 (p.a.) Standard Deviation* Weighted Avg Time to Maturity UGSF 12.47% 10.89% 10.58% 10.69% % 0.78% 0.45% 0.41 (2.81) 0.71 Years Yield (p.a) 2 5% Mar 31 Apr 30 Fund Size (PKR Mn) 5,215 5, % NAV (PKR) % * 12m Trailing ** 12m Trailing, 3M PKRV yield is used as a risk free rate 27 Jul Aug Aug 11 7 Sep 11 Asset Allocation* 21 Sep 11 4 Oct Oct 11 1 Nov Nov Nov Dec Dec 11 9 Jan Jan 12 6 Feb 12 Portfolio Quality* 20 Feb 12 5 Mar Mar 12 1 Apr Apr Apr 12 Cash, 2.4% Others, 0.5% Placements with Banks, 15. Income AA+, 5.7% GOP Ijarah Low Sukuk, 27 Jul % T Bills, AAA, 7 6M PKRV rate + 3 average of 3M 62.3% 82.1% Deposit rates of AA and above rated scheduled banks for the period of return Listing Islamabad Stock Exchange (ISE) Asset Allocation (% of NAV)* Trustee Central Depository Company (CDC) Placements with Banks 23% Auditor KPMG Taseer Hadi and Co. PIB 1% Management Co.Rating AM2 (JCR VIS) GOP Ijarah Sukuk 4% 13% 2 Fund Rating A Plus (JCR VIS) Reverse Repo Minimum Investment Rs. 500 T Bills 84% 63% 62% Load 1.0 (Front end) Nil (Back end) Cash 2% Dealing Days Monday to Friday Others 1% Cut off times 1:00 p.m. (Mon Fri) * Portfolio Quality and Asset Allocation has been adjusted for payables at the end of the month Pricing Mechanism Forward Key Interest Rates Management Fee 1.25% p.a. KIBOR (6M, 1Y, 3Y)* 11.87% % Discount Rate 12.0 Usama Bin Razi T Bill Cut Off (3M, 6M, 12M) 11.87% 11.94% 11.94% CPI(Apr) Y o Y Basis 11.27% Investment Committee Mir Muhammad Ali, Hasnain Raza Nensey, PIB Cut Off (3Yr, 5Yr, 10Yr) 12.59% 12.94% 13.2 * Average during month M. Imran Khalil, Ali Alvi, Usama Bin Razi Repo Rate (Overnight, 1M, 3M)* % AA, 11.7% Others, 0.5% UGSF UGSF Augʹ11 Sepʹ11 Octʹ11 Novʹ11 Decʹ11 Janʹ12 YTD 16.67% 14.35% 24.46% 9.89% 5.68% 12.97% 8.22% % 12.47% 11.65% 11.61% 10.83% 10.57% 10.67% 10.57% % 10.69% 10.89% 16.02% 15.26% 18.12% 16.12% % 13.06% % % 11.39% % 11.01% 10.95% 10.92% 10.89%

5 UBL Savings Income Fund During Aprilʹ12, the Fund generated a monthly return of 10.67% p.a. against the benchmark return of 11.87% p.a., while the fund size increased by a healthy 6% to Rs5.6bn. ʹs Report April 2012 Placement with Banks decreased to 16% from 25% of net assets in the previous month, while T bills exposure declined to 59% of net assets from 61% previously. Exposure in GoP Ijarah Sukuks was increased to 21% of net assets from 13% previously, while the cash position improved to 4% of net assets. At the month end, duration of the fund stood at 0.24 years. Long term investors are suggested to remain invested to exploit benefits arising from the volatility in the prices of the underlying debt instruments. USIF v/s UBL Savings Income Fund is an open end Income fund which aims to provide a competitive rate of return, with a moderate level of risk to its investors by 2 USIF investing in fixed income securities / instruments. Since Inception (p.a.) April 2012 (p.a.) Calendar Year 2012 (p.a.) Standard Deviation* Weighted Avg Time to Maturity USIF 12.21% 12.87% 10.67% 11.87% 10.85% 11.81% 0.68% 0.82% (0.22) Years Yield (p.a) 5% 15 Jul Jul Aug Aug 11 9 Sep Sep 11 7 Oct Oct 11 4 Nov Nov 11 2 Dec Dec Dec Jan Jan Feb Feb 12 9 Mar Mar 12 6 Apr Apr 12 Mar 31 Apr 30 Fund Size (PKR Mn) 5,256 5, % Asset Allocation Portfolio Quality NAV (PKR) % * 12m Trailing Others, ** 12m Trailing, 3M PKRV yield is used as a risk free rate Cash, 3.5% Others, 0.5% Placements with Banks, AA, 12.2% 0.5% 16.2% AA+, 7.5% GoP Ijarah Income Sukuk, Low T Bills, 20.7% AAA, October 14, % 79.8% Average of 6M KIBOR Listing Islamabad Stock Exchange (ISE) Asset Allocation (% of NAV) Trustee Central Depository Company (CDC) Commercial Papers Auditor Ernst & Young Ford Rhodes Sidat Hyder Placements with Banks 25% 16% Management Co.Rating AM2 (JCR VIS) Placements with DFIs 4% Fund Rating AA Minus (JCR VIS) Placements with NBFCs Minimum Investment Rs. 500 Reverse Repo Load 1% (Front end) PIB Dealing Days Monday to Friday GoP Ijarah Sukuk 4% 13% 21% Cut off times 1:00 p.m. (Mon Fri) T Bills 76% 61% 59% Pricing Mechanism Forward Cash 1% 4% Management Fee 1.25% p.a. Others Investment Committee Jawad Naeem Mir Muhammad Ali, Hasnain Raza Nensey, Key Interest Rates KIBOR (6M, 1Y, 3Y)* 11.87% % Discount Rate 12.0 M. Imran Khalil, Ali Alvi, Jawad Naeem T Bill Cut Off (3M, 6M, 12M) 11.87% 11.94% 11.94% CPI(Apr) Y o Y Basis 11.27% PIB Cut Off (3Yr, 5Yr, 10Yr) 12.59% 12.94% 13.2 * Average during month Repo Rate (Overnight, 1M, 3M)* % USIF USIF 11.76% 12.01% 12.27% 15.09% 14.23% 24.31% 9.62% 5.32% 13.35% 8.95% 10.34% 10.67% 12.35% 13.52% 13.66% 13.67% 13.25% 13.25% 12.12% 11.78% 11.85% 11.78% 11.77% 11.83% 11.87% 12.32% 12.06% 12.05% 12.07% 12.36% 12.52% 13.49% 13.38% % % 12.27% 13.48% % 13.49% 13.47% 13.38% 13.27% 13.13% 12.97% 12.83% 12.68% 12.54%

6 United Growth & Income Fund During Aprilʹ12, investment in corporate bonds declined marginally to 39% of net assets from 4 in the prior month, while the investment in GoP Securities increased marginally to 54% of net assets against 53% in the previous month. In sharp contrast to the previous month, the Fund s return for the outgoing month remained depressed due to volatility in the prices of debt instruments in the secondary market. Considering the risk profile of the Fund, we expect the Fund to deliver above average returns to investors in medium to long term, albeit with some volatility in the monthly numbers. Going forward, in CYʹ12, the expects certain assets in the portfolio which have been significantly provisioned to yield positive returns given progress on the restructuring fronts. Thus, investors are suggested to ride out the prevailing volatility for the short term. UGIF v/s UGIF is an open end Aggressive Fixed Income Fund, investing in medium to 35% long term fixed income instruments as well as short tenor money market 25% instruments and seeks to generate superior, long term, risk adjusted returns while preserving capital over the long term. 5% UGIF Since Inception (p.a.) April 2012 (p.a.) Calendar Year 2012 (p.a.) Standard Deviation* Weighted Avg. Time to Maturity UGIF 25% 2.07% 11.79% 5.92% 11.83% 35% 11.41% % 0.65% (2.05) Years Top Ten TFC / Sukuk Holdings Portfolio Quality MAPLE LEAF CEMENT SUKUK 8% Mar 31 Apr 30 JAHANGIR SIDDIQUI & COMPANY LTD TFC ( % Fund Size (PKR Mn) 2,779 2, % ENGRO FERTILIZER LIMITED SUKUK ( ) 5% NAV (PKR) % KOHAT CEMENT SUKKUK ( ) 4% *12M Trailing PAKISTAN MOBILE COMMUNICATION LTD IPO (2 4% **12M Trailing & 3M PKRV yield is used as a risk free rate BRR GUARDIAN MUDARBA SUKUK ( ) 2% WORLDCALL TELECOMMUNICATION LIMITED 2% TRUST INVESTMENT BANK TFC III ( ) 2% AVARI HOTELS TFC ( ) 1% SECURITY LEASING CORPORATION LTD SUKKUK 1% Aggressive Fixed Income Asset Allocation (% of NAV) Moderate Term Finance Certificates / Sukuks 34% 4 39% March 2, 2006 Placements with DFIs 5% 6 Month Rolling Average of 6M KIBOR Placements with NBFCs 4% 4% 4% Listing Karachi Stock Exchange (KSE) Cash 1% 1% Trustee Central Depository Company (CDC) T Bills 36% 29% 43% Auditor Ernst & Young Ford Rhodes Sidat Hyder PIBs 17% 13% Management Co.Rating AM2 (JCR VIS) GoP Ijarah Sukuk 11% 11% Fund Rating BBB (JCR VIS) Others 4% 2% 2% Minimum Investment Rs. 500 Leverage Load (Income Units) 1.5% (Front end) Disclosure of Non Compliant Investments as at April 30, 2012 Load (Growth Units) Stepped down structure (Back end) Value Before Provision Value after % of Net % of Gross Name of Investment Type Dealing Days Monday to Friday Provision held (if any) Provision Assets Assets Cut off times 1:00 p.m. (Mon Fri) Chenab Ltd Preference Shares 2,197,358 2,197,358 Pricing Mechanism Forward Azgard Nine Ltd Preference Shares 850, ,000 Management Fee 1.5% p.a. Disclosure of Excess Exposure () as at April 30, 2012 Usama Bin Razi Name of Investment Exposure Type % of Issue Limit Excess Investment Committee Mir Muhammad Ali, Hasnain Raza Nensey, Agritech Ltd TFC ( ) 19.3% 9.3% M. Imran Khalil, Ali Alvi, Usama Bin Razi Agritech Ltd TFC ( ) 11.4% 1.4% Jahangir Siddiqui & Co. Ltd TFC ( ) Trust Investment Bank Ltd TFC ( ) 19.9% 9.9% Security Leasing Corp.Ltd PPTFC ( ) New Allied Electronics ( ) 17.2% 7.2% Security Leasing Corp. Ltd Sukuk ( ) I Security Leasing Corp. Ltd Sukuk ( ) II 13.3% 3.3% Kohat Cement Sukuk ( ) 12.4% 2.4% Escorts Investment Bank Ltd TFC ( ) 10.02% 0.02% UGIF 3.97% 54.63% 9.26% % 2.98% 4.46% 82.19% % 13.05% 5.92% 15.96% 13.53% 13.59% 13.62% 13.59% 13.52% 13.39% 13.11% 12.82% 12.52% 12.24% 12.01% 11.83% 12.87% UGIF 3.25% 10.38% 9.02% 10.06% 13.63% 13.19% 12.66% 22.85% 20.85% 21.02% 20.42% 18.69% 12.79% % 13.13% 13.23% 13.31% 13.35% 13.35% 13.31% 13.23% 13.12% 12.98% Yield (p.a) 5% 15 Jul Jul Aug Aug 11 9 Sep Sep 11 7 Oct Oct 11 4 Nov Nov 11 2 Dec Dec Dec Jan 12 Below Investment Grade, BBB, 1.6% 12.1% A, 1.5% A, 0.6% A+, 0.6% AA, 3.7% AA, 13.7% 27 Jan Feb Feb 12 9 Mar Mar 12 6 Apr 12 UnRated, 12.3% 20 Apr 12 AA+, 0. AAA, 53.7%

7 United Stock Advantage Fund USFʹs Aprilʹ12 return stood at 1.83%, outperforming the benchmark KSE 100 Index by 60bps. No major change was made for overall exposure in local equities which stood at 9 (of net assets) at month end. However, sectorial allocation was changed considering change in fundamentals and maturity in prices of various stocks. The selectively increased exposure to Construction & Materials sector, as high cement prices and sales volumes are expected to cause for better profitability going forward. Exposure to banking stocks was selectively reduced (for an aggregate of 6% of net assets), given the recent increase in minimum rate applicable on savings account by 1% and its potential impact on spreads of the banking sector. However, results of the banking sector for Q1ʹ12 announced during the month were generally strong given lower provisioning levels. In the international markets, concerns over Spain s sovereign debt crises and recession in the Euro Zone kept market returns in check despite healthy corporate results. Our international investment portfolio mirrored these developments and declined by 1.6% against MSCI ACW Index return of 1.2%. Going forward equity market is likely to stay volatile on the back of news flow regarding the upcoming budget. We are of the view that some incentives in the budget will be focused on providing benefits to corporate sectors in terms of alignment with regional tax regimes, so as to increase their overall contribution to the GDP growth target. USF v/s USF is an open end Equity Fund, investing primarily in equities listed on the 25% USF KSE. 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 2 dividend yield potential. Since Inception USF 59.38% 27.56% 5% April % 1.23% Calendar Year % 21.25% Standard Deviation* 16.09% 13.51% % Beta* Alpha*^ R Square^^ Price to Earning Ratio ^^^ % Dividend Yield ^^^ 6.09% 7.56% Value at Risk 1.39% 0.71% Expense Ratio ^^^^ 3.57% N/A Mar 31 Apr 30 Top Ten Equity Holdings (% of NAV) Fund Size (PKR Mn) 1,551 1, % NAV (PKR) % Fauji Fertilizer 9% MCB Bank 7% *12M Trailing. **12M Trailing, 3M PKRV yield used as Risk Free rate. ^ Alpha measures the risk adjusted performance of the fund vs. the Bank Al Falah 9% Lucky Cement 7% benchmark.^^ R Square measures the correlation between the benchmark and the fund; Range 10 with 10 signifying a perfect correlation. ^^^ figures are for KSE 100 Index only. ^^^^ NAV based. Pakistan Petroleum 8% Oil & Gas Development Co. 5% Pakistan Oilfields 8% Nishat Mills 5% DG Khan Cement 8% Attock Cement 5% Equity Asset Allocation (% of NAV) High August 4, 2006 Equities 9 92% 9 85% of KSE 100 Index + of MSCI ACWI Index International Investments 4% 4% 4% Listing Karachi Stock Exchange (KSE) Cash 6% 4% 6% Trustee Central Depository Company (CDC) Leverage Auditor A.F. Ferguson & Co. Management Co.Rating AM2 (JCR VIS) Sector Allocation (% of NAV) Fund Rating MFR 4 STAR (JCR VIS) 3 Yr Average Minimum Investment Rs. 500 Oil & Gas 33% 29% 25% Load 2.5% (Front end) Construction & Material 8% 14% 22% Dealing Days Monday to Friday Banks 18% 27% 21% Cut off times 4:00 p.m. Chemicals 24% 16% Pricing Mechanism Forward Personal Goods 5% Management Fee 2% p.a. Electricity 7% 7% 2% Asif Mobin Investment Committee Mir Muhammad Ali, Hasnain Raza Nensey, M. Imran Khalil, Ali Alvi, Asif Mobin USF 1.37% 1.57% 1.03% % % 9.32% 7.48% % % 2.33% 8.85% 3.76% 2.38% 2.85% 1.39% 4.82% % 1.23% 9.85% USF % 21.89% 24.16% 27.47% 23.87% 10.89% 3.08% 2.24% 17.32% 13.38% 14.17% 29.75% % 12.37% 14.26% 10.53% 1.29% 6.65% 4.82% 12.44% 13.82% 12.56% Return 15 Jul Jul Aug Aug 11 9 Sep Sep 11 7 Oct Oct 11 4 Nov Nov 11 2 Dec Dec Dec Jan Jan Feb Feb 12 9 Mar Mar 12 6 Apr Apr 12 The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results.

8 United Composite Islamic Fund The Fund posted a positive return of 3.28%, thus outperforming the benchmark by 1.47%. The CGT / Tax amnesty SRO for equity investors continued to remain the driving force, as KMI 30 index gained 2.8 % during the month. Earnings related excitement also played its due part, with financial sector showing signs of reversal after robust earnings growth led by slowdown in toxic asset formation. All in all, earning announcements and payouts were better than investor expectations, adding fuel to the market momentum. Foreigners were net buyer during April, adding net positions worth ~USD 22mn. On the economic front, concerns over external account and falling foreign exchange reserves continued to dent investor expectations of further cut in interest rates during FY 12. Taking into account upcoming IMF SBA principal repayments during May, position of foreign exchange reserves and PkR parity against USD might further deteriorate. Going forward, news flow regarding budgetary policies and measures are expected to keep the market volatile. Considering this Budget being the one right before the elections, popular measures such as reduction in corporate tax rate and rationalization of salaried class income tax rates cannot be ruled out. UCIF v/s UCIF is an open end Fund which offers itʹs investors an opportunity to invest in a diversified portfolio of Shariah Compliant investments. The Fund seeks 25% UCIF to maximize medium to long term returns for a given level of risk. 2 Since Inception April 2012 Calendar Year 2012 Standard Deviation* UCIF 65.88% % 1.82% 19.29% 11.63% 11.49% 8.08% Mar 31 Apr 30 Fund Size (PKR Mn) % NAV (PKR) % * 12M Trailing ** 12M Trailing, 3M PKRV used as Risk free rate Return 5% 5% Top Ten Equity Holdings (% of NAV) Pakistan Oilfields 8% Lucky Cement 6% Fauji Fertilizer 8% Fauji Bin Qasim 5% DG Khan Cement 8% Pakistan State Oil 5% Pakistan Petroleum 7% Attock Cement 5% Oil & Gas Development Co. 6% Meezan Bank 4% Islamic Balanced Asset Allocation (% of NAV) Moderate Equities 65% 64% 68% December 24, 2006 Sukuks 14% 12% 12% 5 KMI 30 Index + 2 Avg. 1 Yr Placement GoP Ijarah Sukuks 5% 14% 11% Rate of 3 Islamic Banks + 3 6M KIBOR Cash & Equivalents 16% 9% 9% Listing Islamabad Stock Exchange (ISE) Leverage Trustee Central Depository Company (CDC) Auditor A.F. Ferguson & Co. Sector Allocation (% of NAV) Management Co.Rating AM2 (JCR VIS) Oil & Gas 35% 29% 28% Fund Rating MFR 4 STAR (JCR VIS) 3 Yr Average Construction and Materials 17% 18% Minimum Investment Rs. 500 Chemicals 9% 8% 13% Load 2.5%(Front end), Nil (Back end) Banks 5% 5% 4% Dealing Days Monday to Friday Electricity 6% 6% 4% Cut off times 4:00 p.m Others Pricing Mechanism Forward Disclosure of Non Compliant Investments as at April 30, 2012 Management Fee 2% p.a. Provision Value % of Value Before % of Net Wahaj Aslam Name of Investment Type held after Gross Provision Assets Investment Committee Mir Muhammad Ali, Hasnain Raza Nensey, (if any) Provision Assets M. Imran Khalil, Ali Alvi, Wahaj Aslam Kohat Cement Sukuk 16,274,999 16,274, % 15 Jul Jul Aug Aug 11 9 Sep Sep 11 7 Oct Oct 11 4 Nov Nov 11 Maple Leaf Cement Sukuk 43,282,300 15,829,050 27,453, % 4.9% Ittehad Chemicals Financing 8,333,200 8,333, % 1.5% 2 Dec Dec Dec Jan Jan Feb Feb 12 9 Mar Mar 12 6 Apr Apr 12 UCIF % % 3.22% % 1.38% 5.41% 4.93% 4.43% 3.28% 19.36% 1.01% 1.22% 1.12% 2.21% 3.57% 2.49% 1.86% 2.01% % 1.96% 1.82% 12.69% UCIF 29.14% 26.41% 20.14% 22.68% % 9.72% 3.95% 6.64% 18.19% 15.48% 16.71% 26.74% 26.54% 21.67% 21.73% % 14.95% % 17.22% % The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results.

9 UBL Islamic Savings Fund During the month of April, UISF posted a return of 10.62% p.a. against the benchmark return of 7.7 p.a. The fund size at end of month stood at Rs 4,166mn thus gaining 7.8% on MoM basis. We aim to double our Islamic assets under management this year as we are cognizant of the Investor s interest into this market. In this regard, we are pleased to announce that our fund UBL Islamic Savings Fund will be re constituted as a Government Securities Fund (it is a specialized fund which invests at least 7 of its net assets in Government Securities) effective from July 18, Higher allocation to GoP Ijarah (or any other GoP securities offered in future) will further help to bolster the fund returns and enhance the credit quality of the fund on the credit matrix. The State Bank in an auction of GoP Ijarah Sukuk accepted bids of Rs 29bn against the pre auction target of Rs 25bn. The total participation in the auction stood at PKR 50.4bn with a bid of 50/+30 bps (under/over) the benchmark. Ijarah Sukuk auctions have regularly been oversubscribed as there is still more demand than supply of Shariah compliant assets and investors tend to hold them until maturity. There have been discussions at the SBP and other forums for arranging a long term Sukuk (beyond 3 years tenor) as well as short term Islamic instruments in order to curtail the over reliance on 3 year Ijarah. The fund manager increased the allocation to GoP Ijarah Sukuk to 66% of net assets during the month owing to participation in the auction. Consequently, the allocation to Cash & equivalents declined to 27% of net assets. UISF v/s UISF is an open end Shariah Compliant Income Fund which aims to provide a competitive return with a moderate level of risk to its investors by investing in Shariah compliant fixed income securities / instruments. UISF 12% Since Inception (p.a.) April 2012 (p.a.) Calendar Year 2012 (p.a.) Standard Deviation* Weighted Avg. Time to Maturity UISF 11.74% 10.62% 10.88% 0.11% (6.9) 1.38 years 7.79% % 0.11% (43.4) Mar 31 Apr 30 Fund Size (PKR Mn) 3,865 4, % NAV (PKR) % *12M trailing **12M trailing, 3M PKRV used as Risk free rate Listing Trustee Shariah Compliant Income Fund Low 7 Nov 10 Average of 6 Month Placement Rate of 3 Islamic Banks Islamabad Stock Exchange (ISE) Yield (p.a) 9% 6% 3% Asset Allocation Cash, 27.3% 14 Jul 11 Others, 2.4% Central Depository Company (CDC) Auditor Ford Rhodes Sidat Hyder and Co. Asset Allocation Shariah Advisory Board Mr. Hassaan Kaleem & Mr. Najeeb Khan GoP Ijara Sukuks 59% 6 66% Management Co. Rating AM2 (JCR VIS) Cash 26% 37% 27% Fund Rating AA Minus (JCR VIS) Others 5% 2% 2% Minimum Investment Rs. 500 Placements with Banks & DFIs 11% 5% 5% Load Nil Dealing Days Monday to Friday Cut off times 01:00 p.m. (Mon Fri) Pricing Mechanism Forward Key Interest Rates Management Fee 1.0 p.a. KIBOR (6M, 1Y, 3Y)* 11.87% % Wahaj Aslam Avg I.B. Placement Rate (1M, 3M, 6M, 12M) 6.79% 7.36% % I. Committee Mir Muhammad Ali, Hasnain Raza Nensey, Repo Rate (Overnight, 1M, 3M)* % M. Imran Khalil, Ali Alvi, Wahaj Aslam Discount Rate 12.0 CPI (Apr) Y o Y Basis 11.27% 27 Jul 11 * Average during month 9 Aug Aug 11 4 Sep Sep Sep Oct Oct 11 Placements with Banks & DFIs, 4.8% GoP Ijara Sukuks, 65.5% 8 Nov Nov 11 4 Dec Dec Dec 11 Portfolio Quality A, 6.9% AA, 6.5% AA+, 18.4% 12 Jan Jan 12 6 Feb 12 AA, 0.2% 19 Feb 12 3 Mar Mar 12 Others, 2.4% 28 Mar Apr Apr 12 AAA, 65.6% UISF UISF 12.34% 12.04% 12.37% 11.88% 12.66% 11.34% 11.01% 12.37% 11.27% 10.94% 10.69% 10.62% 11.52% 7.73% 7.73% 7.93% 7.92% 7.94% 7.85% 7.92% 7.88% 7.87% 7.69% 7.63% % 12.03% 12.03% 12.07% 12.05% % % 11.93% 11.85% 11.74% 11.63% 7.72% 7.72% 7.75% 7.77% 7.78% 7.79% 7.82% 7.82% 7.87% 7.86% 7.83% 7.82%

10 United Islamic Income Fund During the month, the fund yielded an annualized return of 12.7% against the benchmark return of 9.08%, while the fund size remained static as compared to the previous month. The Fund s Calendar year (4MCY 12) return stood at an impressive 22.85%, mainly due to a healthy rebound in prices of certain corporate sukuks and principal prepayments by certain issuers. The asset allocation broadly remained unchanged i.e. 47% of net assets remained invested in high yielding Corporate Sukuks, 25% of net assets were invested in GoP Ijarah Sukuks, while cash allocation stood at 21% of net assets at month end. The SBP in an auction of GoP Ijarah Sukuks accepted bids of Rs 29 bn against the pre auction target of Rs 25 bn. Further, the SBP maintained the Discount Rate at 12% in the monetary policy committee meeting during early part of the month. Sharp increases in living expenses and a spike in fuel prices have made policy makers worried that inflation could become a major problem. Therefore going forward, the external account and inflation outlook will remain the key to future direction of monetary policy. Going forward, the expects the Fund to post decent returns on the back of potential reclassification of a few non performing investments into the performing category. UIIF is an open end Shariah Compliant Aggressive Fixed Income Fund which invests in medium to long term income instruments as well as shorttenor money market instruments to generate superior, long term, riskadjusted returns while preserving capital over the long term. UIIF v/s 2 UIIF Since Inception (p.a.) April 2012 (p.a.) Calendar Year 2012 (p.a.) UIIF % 12.72% 9.08% 22.85% 9.04% 16.05% (1.16) (20.25) 1.78 years Standard Deviation* 0.17% Weighted Avg. Time to Maturity Yield (p.a) Jul 11 Mar 31 Apr 30 Fund Size (PKR Mn) % Portfolio Quality Top Ten Sukuk Holdings NAV (PKR) % AA+, 8.2% AA, 9.4% Maple Leaf Cement 19% *12M trailing **12M trailing, 3M PKRV used as Risk free rate Kohat Cement 13% AAA, 25. Engro Fertilizer Sukuk 7% AA, 8.6% Security Leasing Sukuk II 5% Eden Builders 3% Shariah Compliant Aggressive Fixed Income A, 4. Moderate 20 Oct 07 Others, 7.4% Below Weighted average of 12 Month deposit rates of Investment 3 different Islamic Banks Grade, 19.4% Unrated, Listing Islamabad Stock Exchange (ISE) 18. Trustee Central Depository Company (CDC) Auditor KPMG Taseer Hadi & Co. Asset Allocation Shariah Advisory Board Mr. Hassaan Kaleem & Mr. Najeeb Khan Sukuks 48% 48% 47% Management Co. Rating AM2 (JCR VIS) GoP Ijara Sukuk 2 28% 25% Fund Rating BBB (JCR VIS) Cash 26% 17% 21% Minimum Investment Rs. 500 Others 7% 7% 7% Load (Income Units) 1%(Front end) Placements with Banks & DFIs Load (Growth Units) Stepped down structure (Back end) Leverage Dealing Days Monday to Friday Cut off times 01:00 p.m. (Mon Fri) Disclosure of Excess Exposure as at April 30, 2012 Pricing Mechanism Forward % of Net Entity/ Sector Name Exposure Type Management Fee 1.25% p.a. Assets Limit Excess Wahaj Aslam Maple Leaf Cement Per Entity 19.4% % Investment Committee Mir Muhammad Ali, Hasnain Raza Nensey, M. Imran Khalil, Ali Alvi, Wahaj Aslam 29 Jul Aug Aug 11 9 Sep Sep 11 7 Oct Oct 11 4 Nov Nov 11 2 Dec Dec Dec Jan Jan Feb Feb 12 9 Mar Mar 12 6 Apr Apr 12 UIIF UIIF 17.49% 36.54% 13.68% 13.52% 40.18% 4.39% 3.64% 53.33% 25.58% 22.65% 30.85% 12.72% 1.25% 8.65% 8.65% 8.94% 9.05% % % % 8.94% 9.08% 9.07% 0.31% 0.65% 2.55% 1.17% 8.61% 9.12% 8.76% 10.26% 9.57% 8.78% 6.66% 6.22% 7.72% 7.81% 7.93% 8.06% 8.19% 8.33% 8.46% 8.61% 8.72% 8.81%

11 UBL Capital Protected Fund II During the month of Aprilʹ12, UCPF II posted a return of 0.66%. The equity market remained volatile, though positive during the month of Aprilʹ12. Corporate results were generally quite strong during the month and sectors such as Beverages, Media, Automobiles and Construction saw a very decent market capitalization increase in the range of As the investment scheme is near its maturity, exposure to equities is being reduced; however, the will be looking at the month of May to selectively increase exposure in fundamentally sound scrips where opportunities may be available in the short term. The Fund is due to complete its 2 year time frame on 22nd May, UCPF II v/s UCPF II is an open end Capital Protected Fund which provides principal protection by investing major portion of assets in TDR with Scheduled Bank(s). UCPF II The remaining funds are used to aggressively participate in equity markets and any other SECP permitted investments, to maximize yield over the Fundʹs 8% life. 6% UCPF II Since Inception 13.79% 23.57% April % 0.93% Calendar Year % 6.01% Return 4% 2% Mar 31 Apr 30 Fund Size (PKR Mn) % NAV (PKR) % 2% 15 Jul Jul Aug Aug 11 9 Sep Sep 11 7 Oct Oct 11 4 Nov Nov 11 2 Dec Dec Dec Jan Jan Feb Feb 12 9 Mar Mar 12 6 Apr Apr 12 Top Ten Equity Holdings (% of NAV) Capital Protected Low 23 May 10 85% TDR Rate + KSE 30 Index Listing Islamabad Stock Exchange (ISE) Trustee MCB Financial Services Asset Allocation (% of NAV) Auditor Ernst & Young Ford Rhodes Sidat Hyder Equities 3% 3% Management Co.Rating AM2 (JCR VIS) TDR 89% 88% 88% Fund Rating AA+ (cpf) (JCR VIS) Cash & Equivalents 8% 9% 12% Minimum Investment Rs 10,000/= initial & Rs 5,000/= subsequent Leverage Load 5% (Back end) Dealing Days Monday to Friday Cut off times 1:00 p.m Sector Allocation (% of NAV) Pricing Mechanism Forward Banks % Management Fee 1.5% p.a. Oil & Gas 2.9% Asif Mobin Chemicals Investment Committee Mir Muhammad Ali, Hasnain Raza Nensey, Construction & Materials M. Imran Khalil, Ali Alvi, Asif Mobin General Industrials UCPF II 0.57% 0.18% 0.44% 0.09% 0.77% 0.56% 0.47% 0.02% 1.24% 0.84% % 6.23% 0.84% 0.53% 0.75% 0.57% 1.72% 0.83% % 1.69% 1.05% 0.93% 8.98%

12 UBL Principal Protected Fund I Given the positive movement in the equity market in Aprilʹ12, the allocation to the equity component remained at almost 10 during the month. During the three months since the Fund s inception, a return of nearly 12% has been generated against the benchmark return of 14.6%. The Fund, with its capital protection feature and active rebalancing with the CPPI model, is expected to provide competitive returns to its investors for the 2 year duration. UPPF I v/s The investment objective of the Fund is to earn potentially high returns through dynamic asset allocation between Equities and Money Market based 2 UPPF I CIS while providing capital protection of the Initial Investment Value, at completion of the duration of the fund. UPPF I Since Inception 11.96% 14.63% April % 1.65% Calendar Year % 14.63% Return 5% Mar 31 Apr 30 Fund Size (PKR Mn) % NAV (PKR) % 3 Feb Feb Feb Feb 12 2 Mar 12 9 Mar Mar Mar Mar 12 6 Apr Apr Apr Apr 12 Holdings (% of NAV) Fund of Funds Scheme United Stock Advantage Fund 99% Low UBL Liquidity Plus Fund 1% 3 Feb 12 Weighted Average Daily Return of KSE 100 Index and 3M Deposit Rates of AA & above rated Banks based on the Fund s actual participation in the Equity & Debt/Income Asset Allocation (% of NAV) Component. Equity Funds 87% 99% 99% Listing Islamabad Stock Exchange (ISE) Money Market Funds 13% 1% 1% Trustee Central Depository Company (CDC) Others Auditor A.F. Ferguson & Co Cash & Equivalents Management Co.Rating AM2 (JCR VIS) Fund Rating Not yet rated Minimum Investment Rs 10,000/= initial & subsequent Load 3% (Front end incl. Structuring fee) / 5% (Backend) Dealing Days Monday to Friday Cut off times 4:00 p.m Pricing Mechanism Forward Management Fee 1% p.a. (on the value of underlying Funds not managed by UBL s) Asif Mobin Investment Mir Muhammad Ali, Hasnain Raza Nensey, M. Imran Khalil, Ali Alvi, Asif Mobin YTD UPPF I 5.14% 4.69% 1.73% 11.96% 6.26% 6.12% 1.65% 14.63%

13 UBL Retirement Savings Fund Performance Review and Outlook The upward momentum experienced in the domestic equity market in the past few months continued in the month of April, with the KSE 100 index increasing by 1.7%. The Equity Sub Fund outperformed the KSE 100 Index, returning 3.6%. The main contributors to this outperformance were Lucky Cement (+ return in April), DG Khan Cement (+), Pakistan Oilfields (+6%) and Pakistan Petroleum Limited (+4%). The Debt Sub Fund yielded 9.4% p.a. during April, which was higher than what has been witnessed in the preceding months. The Money Market Sub Fund had a consistent month yielding 9.5% p.a. We are pleased to inform our investors that assets under management of various sub funds have cumulatively increased by 24% over the month to Rs 204mn. This is a testament of trust our valued investors have in our ability to effectively manage their savings towards a comfortable retirement. It is important to remember that, for most Participants of URSF, your retirement fund is a long term investment. Although short term market volatility may reduce the value of your retirement fund, the expectation is that the equity market will grow over the longer term. Participants who are close to retirement should consider their investment choices carefully to ensure that they are not exposed to too much investment risk. URSF is an open end fund that aims to provide a secure source of savings and regular income after retirement to the Participants. The Participants would contribute to the Fund during their working life and would typically withdraw from the Fund on or after retirement. URSF Debt (% of NAV) Treasury Bills 81% 77% 78% Term Finance Certificates 6% 8% 6% Tenor Placements with Banks Pakistan Investment Bonds 9% 7% Cash & Equivalent 4% 6% 9% URSF Money Market (% of NAV) Treasury Bills 97% 95% 92% Debt Money Market Equity Tenor Placements with Banks Since Inception 10.67% p.a p.a Cash & Equivalent 3% 5% 8% April % p.a. 9.55% p.a. 3.62% Calendar Year % p.a. 9.64% p.a % Expense Ratio ^ 2.33% 2.35% 2.65% URSF Equity (% of NAV) Fund Size (PKR Mn) Equities 88% 88% 97% NAV (PKR) Treasury Bills Cash & Equivalent 12% 12% 3% ^ NAV Based Equity Sector Allocation (% of NAV) Oil & Gas 19% 19% 21% Banks 19% 19% 2 Construction & Materials 7% 12% 12% Chemicals 16% 13% 11% Electricity 11% 9% Personal Goods 3% 4% 8% Voluntary Pension Scheme General Industrials 3% 3% 5% Investor dependent Industrial Engineering 5% 5% 5% 19 May 10 Pharma & Biotech 5% 4% 4% N/A Automobile & Parts 2% Trustee MCB Financial Services Auditor KPMG Taseer Hadi & Co. Pension Manager Rating AM2 (JCR VIS) Fund Rating Not yet rated Top Ten Equity Holdings (% of NAV) Minimum Investment Rs. 500 Lucky Cement 5% Nishat Mills 4% Load 3% (Front end) DG Khan Cement 5% Pakistan Petroleum 4% Dealing Days Monday to Friday Fauji Fertilizer 5% Askari Bank 4% Cut off times 4:00 P.M Bank Al Falah 5% Hub Power 4% Pricing Mechanism Forward Pakistan Oilfields 5% Kot Addu Power 4% Management Fee 1.5% p.a. Investment Committee Asad Raza Bhojani Mir Muhammad Ali, Hasnain Raza Nensey, M. Imran Khalil, Asad R Bhojani, Ali Alvi URSF Debt (% p.a.) 15.83% 11.62% 12.12% % 23.84% 7.88% 1.81% 14.65% 4.93% 8.22% 9.36% 11.04% URSF Money Market (% p.a.) 10.78% 11.08% 11.47% 12.03% 11.16% 13.67% 9.42% % 8.95% 9.58% 9.55% 10.46% URSF Equity 0.84% % 5.16% % 6.04% 4.84% 5.65% 3.62% 13.84%

14 UBL Islamic Retirement Savings Fund The Equity Sub Fund returned 3.6% during the month of April, 0.8% higher than the corresponding return on the universe of Shariah compliant stocks. The Sub Fundʹs holdings in Lucky Cement (+ return in April), DG Khan Cement (+), Pakistan Oilfields (+6%) and Fauji Fertlizer Bin Qasim(+5%) were the main contributors to the performance. The Debt Sub Fund yielded 8.8% p.a., while the Money Market Sub Fund yielded 8.7% p.a. during the month of April. We are pleased to inform our investors that assets under management of various sub funds have cumulatively increased by 13% over the month to Rs 145mn. This is a testament of trust our valued investors have in our ability to effectively manage their savings towards a comfortable retirement. It is important to remember that, for most Participants of UIRSF, your retirement fund is a long term investment. Although short term market volatility may reduce the value of your retirement fund, the expectation is that the equity market will grow over the longer term. Participants who are close to retirement should consider their investment choices carefully to ensure that they are not exposed to too much investment risk. UIRSF is a Shariah compliant open end fund that aims to provide a secure source of savings and regular income after retirement to the Participants. The Participants would contribute to the Fund during their working life and would typically withdraw from the Fund on or after retirement. UIRSF Debt (% of NAV) GoP Ijarah Sukuk 95% 91% 93% Sukuk Tenor Placements with Islamic Banks Cash & Equivalent 5% 9% 7% UIRSF Money Market (% of NAV) GoP Ijarah Sukuk 42% 47% 47% Debt Money Market Equity Tenor Placements with Islamic Banks 16% 13% 11% Since Inception 8.93% p.a. 7.68% p.a % Cash & Equivalent 41% 4 42% April % p.a. 8.7 p.a. 3.6 Calendar Year % p.a. 8.95% p.a % Expense Ratio ^ 2.61% 2.52% 2.64% UIRSF Equity (% of NAV) Fund Size (PKR Mn) Equities 93% 93% 93% NAV (PKR) Cash & Equivalent 7% 7% 7% ^ NAV Based Oil & Gas 3 28% 29% Construction & Materials 8% 14% 17% Chemicals 23% 17% 16% Banks 7% 8% 8% Electricity 7% General Industrials 4% 4% 6% Trustee Auditor Pension Manager Rating Shariah Compliant Voluntary Pension Scheme Investor dependent May 19, 2010 N/A MCB Financial Services KPMG Taseer Hadi & Co. AM2 (JCR VIS) Equity Sector Allocation (% of NAV) Industrial Engineering 5% 4% 4% Pharma & Biotech 4% 3% 4% Personal Goods 3% 3% 2% Automobile & Parts Top Ten Equity Holdings (% of NAV) Fund Rating Not yet rated Fauji Fertilizer Hub Power 7% Minimum Investment Rs. 500 Pakistan Oilfields 9% DG Khan Cement 7% Load 3% (Front end) Pakistan Petroleum 9% Oil & Gas Development Co. 5% Dealing Days Monday to Friday Lucky Cement 8% Fauji Bin Qasim 5% Cut off times 4:00 P.M Meezan Bank 8% Thal 5% Pricing Mechanism Forward Management Fee 1.5% p.a. Investment Committee Asad Raza Bhojani Mir Muhammad Ali, Hasnain Raza Nensey, M. Imran Khalil, Asad R Bhojani, Ali Alvi UIRSF Debt (p.a.) UIRSF Money Market (p.a.) UIRSF Equity 13.67% 10.75% 11.07% 10.86% 10.73% 10.69% % 9.42% % 8.77% % 9.22% 8.83% 8.95% 8.88% 8.69% 8.04% 9.09% 9.04% 8.96% % 0.44% % % % 4.17% 6.54% 5.25% 5.51% %

15 Let us help you get started! call sms INVEST to website Let s talk Smart Savings! Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks.he NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative