OFFERING DOCUMENT

ASKARI SOVEREIGN CASH FUND (ASCF)

MANAGED BY
ASKARI INVESTMENT MANAGEMENT LIMITED

Open for Public Subscription: 7 Working days starting 18th of September 2009

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 TABLE OF CONTENTS

1. INTRODUCTION ................................................................................................................................................ 1
2. DEFINITIONS ..................................................................................................................................................... 2
3. REGULATORY APPROVAL AND CONSENT .............................................................................................. 9
4. FILING OF THIS OFFERING DOCUMENT ................................................................................................ 10
5. RESTRICTIONS ............................................................................................................................................... 10
6. CONSTITUTION OF THE SCHEME............................................................................................................. 11
7. INVESTMENT OBJECTIVES, POLICY, RESTRICTIONS, VALUATION, RISK DISCLOSURE AND
DISCLAIMER ............................................................................................................................................... 14
8. OPERATORS AND PRINCIPALS .................................................................................................................. 24
9. CHARACTERISTICS OF UNITS AND OTHER RELATED MATTERS.................................................. 41
10. DISTRIBUTION POLICY AND DATE OF DISTRIBUTION................................................................. 56
11. FEES AND CHARGES ................................................................................................................................. 59
12. TAXATION ................................................................................................................................................... 62
13. REPORTS AND ACCOUNTS ..................................................................................................................... 64
14. SERVICE TO UNIT HOLDERS ................................................................................................................. 65
15. FINANCIAL INFORMATION .................................................................................................................... 70
16. WARNING ..................................................................................................................................................... 71
17. GENERAL INFORMATION....................................................................................................................... 72
18. REVOCATIONOF THE FUND .................................................................................................................. 72
19. DISTRIBUTION ON REVOCATION OF THE FUND ............................................................................ 73
20. ARBITRATION ............................................................................................................................................ 73
ANNEXURE “A” .................................................................................................................................................... 74
ANNEXURE “B” .................................................................................................................................................... 75
ANNEXURE “C” .................................................................................................................................................... 76
ANNEXURE “D” .................................................................................................................................................... 84

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 OFFERING DOCUMENT
Constituting
ASKARI SOVEREIGN CASH FUND (ASCF)
MONEY MARKET FUND

MANAGED BY

Askari Investment Management Limited

An Asset Management Company licensed under the Non-Banking Finance Companies (Establishment
and Regulation) Rules, 2003

Date of Publication of this Offering Document: 10th September, 2009

Initial Offering Period: Seven Working days starting 18th of September 2009

1. INTRODUCTION

The Askari Sovereign Cash Fund (“Fund”, “Scheme”, “Trust”, “Unit Trust” or “ASCF”) has been
established as an open-end unit trust through a Trust Deed, dated June 11, 2009, registered under the
Trusts Act 1882, executed by and between Askari Investment Management Limited (AIM)
(“Management Company”), as the management company and Central Depository Company of
Pakistan (CDC) Limited (“Trustee”), as the trustee and is registered under the Non- Banking Finance
Companies and Notified Entities Regulations, 2008.

The provisions of the Rules, Regulations and the Deed govern this Offering Document. This
Offering document sets forth information about the Fund that a prospective investor should be
aware of before investing in the Fund. If the prospective investors have any doubt regarding the
contents of this Offering Document, they should consult their respective stockbroker, bank
manager, legal adviser or other financial adviser.

Investors must recognize that all investments involve varying levels of risk. It should be clearly
understood that the Fund’s portfolio is subject to market fluctuations and risks inherent in all such
investments. The value of Units of the Fund may appreciate as well as depreciate and the level of
dividends declared by the Fund may also vary. Investors are advised to read the “Risk Disclosure”
and “Warning” statements contained in Clause 7.8.1 and Clause 7.8.2, respectively, of this Offering
Document.

All investments made by the Fund will be made in accordance with the Regulations and the
Constitutive Documents, subject to the directions of the Commission, as may be given from time to
time.

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2. DEFINITIONS

Unless the context requires otherwise the following words or expressions used in this Offering
Document, shall have the following meanings respectively assigned to them viz:

2.1 “Aasan Amdan Units” would have the same meaning as Variable Income units

2.2 “Account Statement” means statement of transaction in Units in the account of the Unit Holder.

2.3 “Accounting Date” means the date 30th June in each year and any interim dates at which the
financial statements of the Trust are drawn up; provided, that the Management Company may,
with the consent of the Trustee, change such date to any other date.

2.4 “Accounting Period” means a period ending on and including an Accounting Date and
commencing, in case of the first such period, on the date on which the Fund Property is first paid or
transferred to the Trustee and, in any other case, from the end of the preceding Accounting Period.

2.5 “Administrative Plans” means, investment plans offered by the Management Company, where
such plans allow investors a focused investment strategy in any one or a combination of schemes
managed by the Management Company and for which a common Trustee is appointed.

2.6 “Amdan Units” would have same meaning as Income Units

2.7 “Audit Date” means the date on which the Auditor issues a report regarding the Scheme’s
balance sheet and income and expenditure account for the corresponding Accounting Period.

2.8 “Auditor” means the Auditor of the Trust appointed by the Management Company, with the
consent of the Trustee, in accordance with the Rules and Regulations.

2.9 “Authorized Branch(es)” means those branches of the Distributors authorized by the
Management Company to perform Distribution Functions, whose addresses are provided in this
Offering Document or a Supplementary Offering Document and disclosed by the Management
Company on its website from time to time.

2.10 “Authorized Investment(s)” means any investment instrument permitted under the Rules and
Regulations and in compliance with the investment objective of the Scheme. Such investments
include:

i. Bank Deposits of various tenors in Banks having a minimum investment grade rating of AA
(Double A) or such other rating as specified by the Commission;
ii. For purposes of liquidity management, the Management Company may open Bank Accounts
at various Banks having a minimum investment grade rating of AA (Double AA) or such
other rating as specified by the Commission, as per the criteria of a credit rating agency
approved by the Commission. Such Bank Accounts may either be current accounts or profit
bearing accounts;
iii. Reverse repo transactions against Authorized Investments;
iv. Short dated government instruments whether conventional or Islamic;
v. Treasury Bills (T-Bills);
vi. Term Deposit Receipt (TDR);

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 vii. Cash and near cash instruments which include cash in bank accounts;
viii. Money Market placements;
ix. The Management Company may, with the prior approval of the Commission, use derivatives
only to hedge the existing exposure of the Fund in foreign currencies; provided that, such
use of derivatives is permitted (A) pursuant to the Rules and Regulations, and (B) authorized
by the investment committee of the Management Company. The derivatives used may also
hedge the US Dollar, however, the Management Company shall attempt to hedge, in all
cases where hedging is desirable, to the Base Currency if doing so is cost-effective and
practical. No other use of derivatives is permissible and only currency derivatives shall be
used up to the limit of the Fund’s exposure to foreign currency;
x. Foreign Authorized Investments after obtaining approval of the Commission and SBP; and
xi. Any financial instrument that may be allowed by the Commission from time to time, which
is in accordance with the Rules, Regulations and the Constitutive Documents and within the
parameters mentioned in the risk management policies of the Management Company;

Provided that, (A) no investments shall be made in any asset if its time to maturity exceeds six
(06) months, and (B) weighted average time to maturity of the net assets of the Fund shall not
exceed ninety (90) days, unless otherwise specified by the Commission;

Provided further that, rating of any security in the portfolio of the Scheme shall not be lower than
AA (Double A).

2.11 “Back-end Load” means the charge or commission (excluding Duties and Charges), not
exceeding 5% of the Net Asset Value that may be deducted from the Net Asset Value in
determining the Redemption Price for any class of Units as determined by the Management
Company and disclosed to the Unit Holders in advance. The Back-end Load shall form part of the
Fund Property.
2.12 “Bank” means any Scheduled Bank, as defined under the State Bank of Pakistan Act, 1956 and
licensed to carry on the business of banking and shall include a bank incorporated outside
Pakistan, carrying on the business of banking in Pakistan as a Scheduled Bank.
2.13 “Bank Accounts” means the account(s) opened and maintained for the Trust by the Trustee, the
beneficial ownership of which vests in the Unit Holders.
2.14 “Bonus Units” means the Units issued, on distribution of the distributable income, in the form of
a stock dividend.
2.15 “Broker” means any person licensed by the Commission to engage in the business of effecting
transactions in securities for the account of others.
2.16 “Business Day” means any day of the week on which the offices of the Management Company
and Banks are open for dealing in Pakistan.
2.17 “Certificate” means the definitive certificate acknowledging the number of Units registered in
the name of the Unit Holder(s) issued at the request of the Unit Holder(s) pursuant to the
provisions of the Trust Deed.

2.18 “Commercial Paper” means an unsecured, short-term debt instrument issued by a corporation,
typically for the financing of accounts receivable, inventories and meeting short-term liabilities.

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2.19 “Commission” or “SECP” means the Securities and Exchange Commission of Pakistan
established under section 3 of the Securities and Exchange Commission of Pakistan Act, 1997.

2.20 “Companies Ordinance” means the Companies Ordinance, 1984, as amended or substituted
from time to time.

2.21 “Connected Person” shall have the same meaning as assigned in the Rules.

2.22 “Constitutive Documents” shall have the same meaning as assigned in the Rules and Regulations.

2.23 “Core Investors” means the initial investors, who shall be required to subscribe to and to hold
number of Units of Par Value and whose subscription shall, in aggregate, be in compliance with
the Regulations for a minimum period of two years from the date of close of the Initial Period.
Particulars of the Core Investors are provided in clause 8.11 of this Offering Document.

2.24 “Custodian” means a bank licensed under the Banking Companies Ordinance, 1962 (LVII of
1962), a trust company which is a subsidiary of such bank, a central depository company
approved by the Commission, an NBFC carrying out investment finance services, provided it has
been approved by the Commission to act as custodian or such other company as may be approved
by the Commission to act as custodian.

2.25 “Cut-off Time” means 1630 hours on each Business Day other than Saturday for which it would
be 1300 Hours

2.26 “Deed” means the trust deed executed by and between the Management Company and the
Trustee and approved by the Commission, dated May 26, 2009, to constitute the Askari Sovereign
Cash Fund, and includes a Supplemental Deed thereto.

2.27 “Distribution Account” means the Bank Account, which may be a current, saving or deposit
account, maintained by the Trustee with a Bank, as directed by the Management Company, in
which the amount required for distribution of income to the Unit Holders shall be transferred.
Income or profit, if any, including those accruing on unclaimed dividends, in this Bank Account
shall be transferred to the main Bank Account of the Fund from time to time, as part of the Fund
Property for the benefit of the Unit Holders.

2.28 “Distribution Functions” means the functions with regard to:

a) Receiving applications for issue of Units together with the aggregate Offer Price for Units
applied for by the applicants;
b) Issuing receipts with regard to sub-clause (a) above;
c) Interfacing with and providing services to the Unit Holders, including receiving redemption,
transfer and pledge applications, conversion notices and applications for change of address
or issue of duplicate Certificates for immediate transmission to the Management Company or
the Transfer Agent as appropriate;
d) Accounting to the Trustee for all (i) moneys received from the applicants for issuance of
Units, (ii) payments made to the Unit Holders on redemption of Units, and (iii) expenses
incurred in relation to the Distribution Functions;

The Distribution Functions shall be performed at such points as listed in Annexure “A” to this
Offering Document, or may be performed electronically, if appropriate systems are in place.

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2.29 “Distributor(s)” means a company, firm, sole proprietorship, registered or unregistered
partnership, individual, Bank or other Financial Institution appointed by the Management
Company in consultation with the Trustee, at its own expense for performing any or all of the
Distribution Functions, and shall include the Management Company itself if it performs the
Distribution Functions.

2.30 “Duties and Charges” means, in relation to any particular transaction or dealing, bank charges,
brokerage, registration fee, all stamp and other duties, taxes, Government charges, transfer fees,
registration fees, annual fee payable to the Commission under the Rules and Regulations and
other duties and charges in connection with the issue, sale, transfer, redemption or purchase of
Units or in respect of the issue, sale, transfer, cancellation or replacement of a Certificate or
otherwise which may have become or may be payable in respect of or prior to or upon the
occasion of the transaction or dealing in respect of which such duties and charges are payable, but
do not include the remuneration payable to the Distributor or any Front-end Load or commission
payable to agents on sale of Units or any commission charges or costs which may have been
taken into account in ascertaining the Net Asset Value.

2.31 “Financial Institution(s)” include:

a) A company or an institution whether established under any special enactment and operating
within or outside Pakistan, which transacts the business of banking or any associated or
ancillary business through its branches;
b) A modaraba, leasing company, investment bank, venture capital company, financing
company, housing finance company, non-banking finance company; and
c) Such other institutions or companies authorized by law to undertake any similar business, as
the Federal Government may, by notification in the official Gazette, specify for the purpose.

2.32 “Fixed Income Units” means the type of units under the Scheme which gives the investor the
flexibility to receive a fixed payment, keeping in view the profit earned or loss incurred, at
regular intervals as specified by the investor. These type of units would be referred to as
“Yaksaan Amdan units ”

2.33 “Formation Cost” means all preliminary and floatation expenses of the Scheme including
expenses in connection with registration of the Scheme, execution and registration of the
Constitutive Documents, issue, circulation and publication of the Offering Document, legal costs
and all other expenses incurred up to and during the Initial Period. Any cost associated with
sales, marketing and advertisement shall not be charged to the Scheme.

2.34 “Front-end Load” means the sales and processing charge or commission (excluding Duties and
Charges) not exceeding five per cent (5%) of the Net Asset Value, that may be included in the
Offer Price of Units of certain classes as specified in the Offering Document.

2.35 “Fund”, “ASCF”, “Askari Sovereign Cash Fund”, “Scheme”, “Trust” or “Unit Trust”
means the unit trust constituted by the Deed.

2.36 “Fund Property” means the aggregate proceeds of the sale of all Units at Purchase Price and any
Transaction Costs recovered in the Purchase Price or Repurchase Price or Back-End Load
recovered in the Repurchase Price after deducting therefrom or providing thereagainst the value
of redemption, Front-end Load, Duties and Charges (if included in the Purchase Price or
Repurchase Price) applicable to the purchase or redemption of Units and any expenses chargeable

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 to the Fund, and includes the Investment and all income, profits, shares, securities, deposits, right
and bonus shares, cash, bank balances, dividends, fees, commissions, receivables, claims,
contracts, licenses, privileges and other benefits arising therefrom and all cash and other movable
and other assets and properties of every description, whether accrued or accruing, for the time
being held or deemed to be held upon trust by the Trustee for the benefit of the Unit Holders
pursuant to the Deed and shall include the income, profit etc earned on the amount credited to the
Distribution Account, but shall not include the amount standing to the credit of the Distribution
Account (except income or profit earned thereon).

2.37 “Future Growth Units” means the type of units offered under the Scheme which allows the
investors to increase their investment value due to capital appreciation and investors can take
advantage of this by either receiving cash dividend or Bonus Units. These type of units would be
referred to as “Mustaqbil Izafa units ”

2.38 “Holder(s)” or “Unit Holder(s)” means the investor(s) for the time being entered in the Register
as owner(s) of Unit(s) or fraction(s) thereof, including investor(s) jointly so registered pursuant to
the provisions of the Deed.

2.39 “Income and Growth Units ” means the type of units offered under the Scheme, the details of
which are specified in clause 9.2.2 of this Offering Document, that shall allow investors to either
receive monthly payment (fixed or variable) through the amdan (income) units or increase value
of their investments under the mustiqbil Izafa units (future growth units .)

2.40 “Initial Offer” means the issuance of Units during the Initial Period.

2.41 “Initial Offer Price” means the price of Rs.100 per Unit during the Initial Offering Period,
determined by the Management Company.

2.42 “Initial Period of Offer”, “Initial Period”, “Initial Offering Period” or “Initial Public Offer”
means the period, specified in the Offering Document, during which Units shall be offered at the
Initial Offer Price. This period shall not exceed a period of ten days; provided that, this period
may be extended with the prior approval of the Commission and the Trustee.

2.43 “Investment” means any Authorized Investment forming part of the Fund Property.

2.44 “Investment Facilitator” or “Facilitator” means an individual, firm, body corporate or other
entity appointed by the Management Company, at its sole responsibility and expense, to identify,
solicit and assist investors in investing in the Scheme.

2.45 “Money Market” means the market where short-term obligations such as Treasury Bills,
Commercial Paper are bought and sold by Financial Institutions, dealers and other market
participants trading in money or credit, who wish to either borrow or lend for short periods of time.

2.46 “Mustaqbil Izafa Units ” would have the same meaning as Future Growth Units .

2.47 “Net Assets” shall have the same meaning as assigned in the Rules.

2.48 “Net Asset Value” or “NAV” means per Unit value of the Fund arrived at by dividing the Net
Assets by the number of Units outstanding.

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2.49 “Offer Price” or “Purchase Price” means the sum to be paid by the investor(s) for the purchase
of one Unit, such price to be determined pursuant to clause 13.2 of the Deed, as stated in clause
9.8.3 of this Offering Document.

2.50 “Offering Document” means this offering document approved in accordance with the provisions
of the Regulations and includes a Supplementary Offering Document thereto.

2.51 “Ordinance” means the Securities and Exchange Ordinance 1969 (XVII of 1969), as amended or
substituted from time to time.

2.52 “Par Value” means the face value of a Unit that shall be Rupees One Hundred or such other
amount as may be determined by the Management Company from time to time in consultation
with the Trustee.

2.53 “Pre-IPO Units” means Units of the Trust, other than the Core Units, issued at the prevailing NAV,
between the period starting from the date of registration of this Scheme and ending before the date of
commencement of the Initial Period. This arrangement shall be disclosed to Pre-IPO investors.

2.54 “Private Placement Investors “ will be the investors purchasing the Pre-IPO Units which
means the Units of the Trust, other than the Core Units, issued at the prevailing NAV, between
the period starting from the date of registration of this Scheme and ending before the date of
commencement of the Initial Period. This arrangement shall be disclosed to Pre-IPO investors.

2.55 “Purchase Form” means the instrument prescribed by the Management Company for the
purchase of Units, in the form appended as Annexure “C” to this Offering Document.

2.56 “Redemption Price” or “Repurchase Price” means the amount to be paid to the relevant Unit
Holder of a Unit upon Redemption of that Unit, such amount to be determined pursuant to clause
13.4 of the Deed, as stated in clause 9.8.4 of this Offering Document.

2.57 “Redemption Form” means the instrument prescribed by the Management Company for the
redemption of Units, in the form appended as Annexure “C” to this Offering Document.

2.58 “Register” means the Register of the Unit Holders kept pursuant to the Rules, Regulations and
the Deed.

2.59 “Registrar” or “Transfer Agent” means a company, firm, organization, department of the
Management Company or other entity, appointed by the Management Company to perform the
Registrar Functions.

2.60 “Registrar Functions” or “Transfer Agent Functions” mean the functions with regard to:

a) Maintaining the Register;

b) Receiving applications for redemption and transfer/transmission of Units directly from Unit
Holders, legal representatives or through Distributors;
c) Processing of applications for issue, redemption, transfer and transmission of Units, recording
of pledges/liens and recording of changes in the Register with regard to the Unit Holders;
d) Issuing Account Statements to the Unit Holders;

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 e) Issuing Certificates including Certificates in lieu of undistributed income to Unit Holders;
f) Canceling old Certificates on redemption or replacement;
g) Maintaining a record of lien/pledge/charge on Units;
h) Dispatching income distribution advice and/or bank transfer intimations; and
i) Allocating Units to the Unit Holders for re-investments.
j) Issuing and dispatching cheques or pay orders with respect to the residual amounts left after
allocation and issue of Units.

2.61 “Restricted Units” means such Units of the Trust that are issued to the Core Investors at Par
Value with the condition that these are not redeemable for a period of two years from the date of
close of the Initial Period. Such Units are transferable with this condition, but otherwise shall rank
pari passu with all other Units, save for this restriction. Any transfer of the Restricted Units
during the first two years after their issue shall be affected only on receipt by the Registrar of a
written acceptance of this condition by the transferee.

2.62 “Regulations” mean the Non-Banking Finance Companies and Notified Entities Regulations,
2008, as amended or substituted from time to time.

2.63 “Rules” mean the Non-Banking Finance Companies (Establishment and Regulations) Rules,
2003, as amended or substituted from time to time.

2.64 “SBP” means the State Bank of Pakistan.

2.65 “Subscription Day” means every Business Day; provided that, the Management Company may
with the prior written consent of the Trustee and upon giving not less than seven days notice in
the newspapers declare any particular Business Day not to be a Subscription Day.

2.66 “Supplemental Deed” means a deed supplemental to the Deed, executed by the Management
Company and the Trustee, after seeking approval of the Commission, to modify, add to, alter and
amend or amend and restate the provisions of the Deed or any other Supplemental Deed in such
manner and to such extent as may be considered expedient for all purposes, which shall be
consolidated, read and construed together with the Deed.

2.67 “Supplementary Offering Document” means a document issued to modify, add to, alter and
amend or amend and restate this Offering Document, by the Management Company, with the
consent of the Trustee, after seeking approval of the Commission, by describing the special
features of an Administrative Plan offering investment in the Scheme or a combination of the
Unit Trust and other Schemes managed by the Management Company, or by making any other
amendments to this Offering Document in such manner and to such extent as considered
expedient for all purposes, which shall be consolidates, read and construed together with this
Offering Document.

2.68 “Stock Exchange” means any stock exchange on which securities are generally traded and
quoted and shall include stock exchanges registered and operating outside Pakistan.

2.69 “Transaction Costs” means the costs incurred or estimated by the Management Company to
cover the costs (such as, but not restricted to, brokerage, Trustee charges, taxes or levies on

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 transactions, etc.) related to the investing or disinvesting activity of the Fund’s portfolio,
necessitated by creation or cancellation of Units. Such costs may be added to the NAV for
determining the Purchase Price or be deducted from the NAV in determining the Repurchase
Price. The Transaction Costs may not normally be applied in determining these prices, however,
if the Management Company is of the view that it is in the overall interest of the Unit Holders, it
may, with intimation to the Trustee, apply such charge either to the Purchase Price or the
Repurchase Price. The Management Company may, however, apply Transaction Costs while
determining the Purchase Price or the Repurchase Price, without intimating the Trustee; provided
that, the difference between the Purchase Price and the Repurchase Price does not exceed 5% of
the Net Asset Value. The element of such Transaction Costs taken into account in determining the
prices and collected so, shall form a part of the Fund Property.

2.70 “Transfer Form” means the instrument prescribed by the Management Company for the transfer
of Units, in the form appended as Annexure “C” to this Offering Document.

2.71 “Treasury Bills” or “T-Bills” means the short-term instruments of the Government of Pakistan
with tenors available in 3, 6 and 12months.

2.72 “Type of units” means the different type of units offering income or growth options under this
Scheme. Currently two types of units would be offered Amdan Units (Income Units) or
Mustaqbil Izafa Units (Future Growth Units)

2.73 “Unit” means one undivided share in the Scheme and where the context so indicates a fraction
thereof.

2.74 “Variable Income Units” Investors can choose to withdraw the profit earned after a specified
regular interval. The profit amount is based on the capital appreciation in the Fund; These type of
units would be referred to as “Aasan Amdan Units ”

2.75 “Yaksaan Amdan Units” would have the same meaning as Fixed Income Units

2.76 “Zakat” has the same meaning as in Zakat and Ushr Ordinance (XVIII of 1980).

Words and expressions used but not defined herein shall have the meanings assigned to them in the
Ordinance, the Rules and Regulations, words importing persons include corporations, words importing
the masculine gender include the feminine gender, words importing singular include plural and words
“written” or “in writing” include printing, engraving lithography or other means of visible reproduction.

3. REGULATORY APPROVAL AND CONSENT

Approval of the Securities and Exchange Commission of Pakistan

The Commission has registered the Fund under Regulation 44 of the Regulations, vide letter No.
NBFC-II/DD/AIML/656 , dated June 25 2009 The Commission has also approved this Offering
Document, pursuant to Regulation 54 of the Regulations, vide letter No. NBFC/ASCF/798/2009
dated August 24th; 2009.It must be distinctly understood that in giving this approval, the Commission
does not take any responsibility neither for the financial soundness of the Fund nor for the accuracy
of any statement made or any opinion expressed in this Offering Document.

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4. FILING OF THIS OFFERING DOCUMENT

The Management Company has filed a copy of this Offering Document signed by its Chief Executive
and the Deed with the Commission. Certified copies of these documents along with the documents
specified in sub-paragraphs (a) to (g) below can be inspected at the registered office of the
Management Company or the place of business of the Trustee, at their respective addresses provided
in clause 17 below:

(a) The Deed constituting the Fund, dated June 11, 2009, executed by and between the Management
Company and the Trustee;

(b) The Commission’s letter No. NBFC-II/45/IA & AMC/02/2008, dated September 11, 2008,
confirming the license of the Management Company (or renewal of license) to undertake asset
management services;

(c) The Commission’s letter No NBFC-II/DD/AIML/656. Dated 25th June 2009 ,registering the
Fund;

(d) The Commission’s letter No. NBFC-II/DD/AIML/562/2009, dated May 26, 2009, approving the
appointment of CDC as the Trustee of the Fund;

(e) The Commission’s letter No. NBFC/ASCF/798/2009, dated August 24th 2009, approving this
Offering Document;

(f) Letter dated 14th July,2009 from the Auditors of the Fund, conveying their willingness to act as
Auditors of the Fund;

(g) Letter of consent, dated June 08, 2009, by the legal advisors, AJURIS, Advocates and Corporate
Counsel, to act as legal advisors of the Fund.

5. RESTRICTIONS

This Offering Document does not constitute an offer or solicitation to anyone in any jurisdiction in
which such offer or solicitation is not authorized or to any person to whom it is unlawful to make
such offer or solicitation. No person in any jurisdiction may treat this Offering Document as
constituting an invitation to purchase Units unless it is lawful to make such an invitation to such
person in the relevant jurisdiction and all registration and other legal requirements have been
complied within that jurisdiction. It is the responsibility of any person wishing to acquire Units to
satisfy himself as to the full observance of the laws of the relevant jurisdiction in connection
therewith, including the obtaining of any governmental or other consents which may be required or
the observance of other formalities which need to be observed or the payment of transfer or other
taxes which may be required to be paid in such jurisdiction.

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6. CONSTITUTION OF THE SCHEME

6.1 Constitution
The Fund is an open-end Money Market fund as defined in the categorization of the open-end
collective investment schemes by the Commission vide Circular No.7 of 2009, letter no.
NBFCD/MF/Circular/2009/292 dated March 6, 2009 and as may be amended from time to time and
has been constituted by the Deed entered into at Islamabad on June 11, 2009 between:
Askari Investment Management Limited, a public limited company, incorporated under the
Companies Ordinance, 1984 (hereinafter called the “Management Company” which expression
where the context so permits, shall include its successors in interest and assigns), as a Non-Banking
Finance Company with a license to perform Asset Management and Investment Advisory Services
under the Non Banking Finance Companies (Establishment and Regulation) Rules, 2003, having its
Registered Office at 501-502, 5th Floor, Green Trust Tower, Jinnah Avenue, Blue Area, Islamabad,
Pakistan, of one part;
AND
Central Depository Company of Pakistan Limited (CDC), a company incorporated under the
Companies Ordinance 1984 and registered with the Commission as a central depository company,
with its registered office at CDC House, 99-B, Block B, SMCHS, Main Shahrah-e-Faisal, Karachi
(hereinafter called the “Trustee” which expression where the context so permits shall include its
successors in interest and assigns) of the other part.

6.2 Governing Law for the Offering Document

This Offering Document shall be subject to and be governed by the laws of Pakistan including the
Ordinance, Rules, Regulations and all other applicable rules and regulations, as amended or replaced
from time to time, and it shall be deemed for all purposes whatsoever that all the provisions required
to be contained in this Offering Document by the Regulations are incorporated herein, and in the
event of any conflict between this Offering Document and the provisions required to be contained in
an offering document by the Regulations, the latter shall supersede and prevail over the provisions
contained in this Offering Document. In the event of any conflict between this Offering Document
and the Deed of the Fund, the latter shall supersede and prevail over the provisions contained in this
Offering Document.

6.3 Trust Deed

The Deed is subject to and governed by the Rules, Regulations, Ordinance, Companies Ordinance
and all other applicable laws, rules and regulations. All investments of the Fund Property shall be in
accordance with the Regulations and the Constitutive Documents. The Fund shall also be subject to
the rules and the regulations framed by the SBP with regard to the foreign investments made by the
Fund and investments made in the Fund from outside Pakistan in foreign currency. In the event of
any conflict between the Deed and the provisions required to be contained in a trust deed by the
Rules and Regulations, the latter shall supersede and prevail over the provisions contained in the
Deed. Further, if the Rules or Regulations are amended or modified or any relaxations or
exemptions are allowed thereunder, such amendments, modifications, relaxations and exemptions
shall be deemed to have been included in the Deed without requiring any modifications as such.
The terms and conditions in the Deed and any Supplemental Deed shall be binding on each Unit
Holder.

11
6.4 Offering Document

This Offering Document is governed by the Regulations and provisions of the Deed. It sets forth the
information that a prospective investor should know before investing in the Fund. The Management
Company accepts responsibility for the accuracy of the information contained in this Offering
Document as of its date of publication. No person is authorized to give any information or make
any representation in connection with the issue of Units, which is not contained or referred to in this
Offering Document. Neither the delivery of this Offering Document nor the offer, issue or sale of
Units shall constitute a representation that the information contained in this Offering Document is
correct at any time subsequent to the date of publication of this Offering Document. This Offering
Document shall be updated to take account of any relevant material changes of law or fact relating
to the Fund. Any such amendments shall be subject to the prior approval of the Commission and
shall be notified to the Unit Holders in the subsequent periodic reports issued by the Management
Company and published on its website. Any changes in the Deed, approved by the Commission and
agreed to by the Trustee, shall affect this Offering Document as well and no further approval from
the Unit Holders shall be required for such corresponding changes in this Offering Document. Any
changes in this Offering Document shall be binding on existing Unit Holders.

6.5 Modification of Offering Document

The Trustee and the Management Company acting together shall be entitled to modify, alter or add to
the provisions of this Offering Document by a Supplementary Offering Document in such manner
and to such extent as they may consider expedient for any purpose, subject only to the approval of
the Commission; provided that, the Trustee and the Management Company shall certify in writing
that, in their opinion such modification, alteration or addition is required pursuant to any amendment
in the Rules, Regulations or to ensure compliance with any fiscal or statutory requirement or to
enable the provisions of this Offering Document to be more conveniently or economically managed
or to enable the Units to be dealt in or quoted on the Stock Exchange or otherwise for the benefit of
the Unit Holders and that it does not prejudice the interests of the Unit Holders or any of them or
operate to release the Trustee or the Management Company from any responsibility to the Unit
Holders.

Where this Offering Document has been altered or supplemented the Management Company shall
notify the Unit Holders immediately regarding such alteration through two widely circulated
newspapers in Pakistan, one in English and one in Urdu.

The Management Company may from time to time and in consultation with the Trustee, frame rules
or regulations for conducting the business of the Trust or in respect of any other matter incidental
thereto; provided, that such rules or regulations are not inconsistent with provisions of the Ordinance,
the Rules, Regulations, the Deed or this Offering Document.

6.6 Duration

The duration of the Fund is perpetual. However, the Commission or the Management Company may,
subject to the Regulations, wind-up the Fund on the occurrence of certain events stated in clause 18
of this Offering Document under the heading “REVOCATION OF THE FUND”.

6.7 Open-End Fund

The Fund is an open-end fund. It shall be categorized as a money market fund. The Fund shall be
subject to the investment restrictions and exposure limits specified in the Regulations, Constitutive

12
 Documents, circulars, notifications, directives and any other applicable law. It shall offer and redeem
Units on a continuing basis subject to the terms and conditions prescribed in the Regulations and the
Constitutive Documents. There is no upper limit set on the Units to be issued to a single Unit Holder
or on the total number of Units to be issued to the public. However, the Management Company may,
from time to time, impose minimum monetary investment limits to facilitate economical and efficient
management of the Scheme.

6.8 Units

6.8.1 The Fund is divided into Units having an Initial Offer Price of Rs.100/- each. This price shall be
applicable to such Units that are issued before the close of the Initial Period, during the Initial
Period and to the Core Investors. The Units offered to Private Placement Investors will be Pre-
IPO Units which means the Units of the Trust, other than the Core Units, issued at the
prevailing NAV, between the period starting from the date of registration of this Scheme and
ending before the date of commencement of the Initial Period. This arrangement shall be
disclosed to Pre-IPO investors. All Units and fractions thereof represent an undivided share in
the Fund and shall rank pari passu according to the number of Units held by each Unit Holder,
including as to the rights of the Unit Holders in the Net Assets, earnings and the receipt of the
dividends and distributions. Each Unit Holder has a beneficial interest in the Fund
proportionate to the Units held by such Unit Holder
.
6.8.2 The Management Company may issue various classes of Units and Administrative Plans, as
detailed in clause 9.2 below.

6.9 Initial Offer

Units with a value of Rs. one hundred million have been subscribed by the Core Investor, namely
Askari Bank Limited out of which at least Rs. fifty million shall remain invested in the Scheme for at
least two (02) years from the date of close of the Initial Period and such Units shall not be redeemed
for a period of two years from the date of close of the Initial Period. In addition, certain investors
have subscribed to Units of the Fund on a Pre-IPO basis. Class A Units being offered and issued
during the Private Placement Period to Private Placement Investors with no Front-end Load
have been issued on the basis of the prevailing NAV.

The Initial Offer is for Class A Units with no Front-end Load, which shall be issued at the Initial
Offer Price of Rs. 100 per Unit during the Initial Period. The offer and issue of Units at Initial Offer
Price shall be Seven Working days starting 18th of September 2009. During the Initial Offer,
Units shall be offered at Par Value without any Front-end Load.

6.10 Transaction in Units after Initial Period

After the Initial Period, the public sale of Units at the Initial Offer Price shall be discontinued. The
Units shall then be purchased at the Offer Price and redeemed at the Redemption Price. The
Management Company shall announce the Offer Price and Redemption Price based on the NAV of
the Units, as of the close of each Business Day, with such NAV being announced latest by such time
as specified by the Commission. Such Offer Price and Redemption Price shall be fixed after
adjusting the applicable Front-end Load or Back-end Load, as the case may be, and any Transaction
Costs that may be applicable. Such Offer Price and Redemption Price shall be applicable to
purchase and redemption requests made through the correctly and properly filled Purchase Form or
Redemption Form, respectively, received prior to the Cut-off Time.

13
7. INVESTMENT OBJECTIVES, POLICY, RESTRICTIONS, VALUATION, RISK
DISCLOSURE AND DISCLAIMER

7.1. Investment Objective

The objective of the Fund is to provide the investors with a high level of liquidity along with
extremely low credit and price volatility. The Fund shall provide the facility to invest in an
underlying portfolio of government securities (Treasury Bills) and other Authorized Investments
which shall enable the investor to manage their liquidity efficiently.

Benchmark:

The performance of this Fund shall be compared against a benchmark value comprising (i) the
three month T-Bill rate up to 70 percent, and (ii) average most recently published three month
deposit rates of AA and above rated scheduled Banks (such average being based on the deposit
rates of at least three Banks) up to 30 percent.

7.2. Investment Policy

7.2.1. To provide the investors with a safe and stable source of income on investments that shall work
as a cash management tool. It shall primarily invest in short-term government securities with an
aim to maximize return from Investment in these instruments and enable the investors to
withdraw funds as and when needed.

7.2.2. All Investments of the Fund shall be as per the guidelines defined in this Offering Document
and shall be in strict conformity with the Rules, Regulations, other applicable laws and
circulars, notifications and directives of the Commission.

7.2.3. Subject to all applicable laws and necessary regulatory approvals, the Management Company
may include in the portfolio, Authorized Investments of Pakistani origin, issued, listed or traded
outside Pakistan.

7.2.4. Subject to regulatory approvals, the Fund may seek to invest in foreign Authorized Investments
issued, listed or otherwise traded outside Pakistan on such terms and conditions and in
accordance with such guidelines and directions, as may be issued by the Commission and/or
SBP from time to time.

7.2.5. Investments outside Pakistan will enable the Fund to diversify the risk as well as avail
opportunities for higher returns in markets that are undervalued. The Management Company
may, under intimation to the Trustee, expand the limit of such foreign Investments after seeking
permission from the Commission and SBP. The limit on international Investments shall apply
at the time of such Investments and it shall not be necessary for the Trustee to sell any
Investment merely because, owing to appreciation or depreciation of any Investment, change in
foreign exchange parities, disposal of any Investment or change in such limit due to increase or
decrease in Units, such limit shall be exceeded. In case, due to the relative movement of the
value of foreign Investments and/or change in the limit, the value of foreign Investments exceed
the above limit, the Management Company shall bring the Fund into compliance, within three
months period as prescribed by the Regulations.

14
7.2.6. During the Initial Period, the Trustee shall hold the Fund Property on deposit in separate Bank
Account(s) with Bank(s) selected by the Management Company, with a minimum investment
grade rating of AA (Double A) or such other rating as specified by the Commission, as per the
criteria of a credit rating agency approved by the Commission. No Investment of the
subscription money shall be made until conclusion of the first issue of Units at the Initial Offer
Price. After the Initial Period, the Fund Property, except in so far as such amount may, in the
opinion of the Management Company, be required for transfer to the Distribution Account,
shall be invested by the Trustee from time to time in such Authorized Investments, subject to
the Deed, Offering Document, the Rules and Regulations, as may be directed by the
Management Company.
7.2.7. Any Investment may at any time be realized at the discretion of the Management Company in
order to invest the proceeds of sale in other Authorized Investments, to provide cash required
for the purpose of any provision of the Deed, in order to retain the proceeds of sale in cash or
on deposit as aforesaid or partly one and partly another. Any Investment which ceases to be an
Authorized Investment, subject to the directive of the Commission in that regard, shall be
realized within three months or such other period as specified by the Commission and the net
proceeds of realization shall be applied in accordance with this clause. It is clarified that the
Trustee shall keep the proceeds of any Investments realized as aforesaid in a Bank Account of
the Scheme.

7.2.8. The Fund shall be authorized to invest in the following investment instruments:

Minimum Maximum
Minimum Minimum Exposure Exposure
Investment Instrument Entity Instrument Limit Limit
Rating Rating (% of (% of
Net Assets) Net Assets)
All debt securities listed or
privately placed, issued by the
Federal Government or
Provincial Government,
or by a corporation wholly
i. AAA AAA 70% 100%
owned or controlled , directly or
indirectly by the Federal
Government or Provincial
Government and guaranteed by
the Federal Government
Deposits with scheduled Banks
carrying a minimum credit AA and AA and
ii. 0% 30%
rating of AA from a duly above above
approved credit rating agency.
“Reverse REPO” against AA and
iii. N/A 0% 20%
Authorized Investments* above
30% (subject to a
Foreign Authorized Investments cap of US$15mn or
depending upon exposure limits as AA and AA and as per limits
iv. 0%
approved by the Commission and above. above specified by SBP
SBP and/or the
Commission)

15
 Any financial instrument that may
be allowed by the Commission
from time to time, which is in Where
accordance with the Rules, applicable:
AA and
v. Regulations and the Constitutive 0% 30%
above
Documents and within the AA and
parameters mentioned in the risk above
management policies of the
Management Company.

* If the counterparty is an NBFC then the minimum entity rating would be AAA or as specified by
SECP.

The Fund shall invest in the above investment instruments in the manner aforesaid; provided, that
(A) no investments shall be made in any asset if its time to maturity exceeds six (06) months, and
(B) weighted average time to maturity of the net assets of the Fund shall not exceed ninety (90)
days, unless otherwise specified by the Commission;

Provided further, that the rating of any security in the portfolio of the Scheme shall not be lower
than AA (Double A).

If the instrument is guaranteed by the Government of Pakistan, the instrument rating shall be
deemed to be AAA and the entity rating shall be ignored. Where ratings are mentioned for both
entity and instrument, rating of both the entity and the instrument shall not be less than AA
(Double A).

7.3. Investment Restrictions

7.3.1 The Management Company shall abide by the Rules, Regulations and Constitutive Documents in
managing the Scheme.

7.3.2 The Fund Property shall be subject to such restrictions and exposure limits as are provided in the
Rules and Regulations, subject to any exemptions that may be specifically given to the Fund by
the Commission; provided that, in case such limits are exceeded due to corporate actions,
including taking up rights or bonus issue, and owing to appreciation or depreciation in value of
any Investment, disposal of any Investment or redemption of Units, the excess exposure shall be
regularized in such manner and within such time as specified in the Rules and Regulations or by
the Commission.

7.3.3 The Management Company shall not take direct or indirect exposure in equities, Continuous
Funding System (CFS), spread transactions or such other instruments as specified by the
Commission.

7.3.4 The Management Company shall not make short sales of any security or maintain a short position
in securities.

7.3.5 The Management Company shall not make any investment that a money market fund is not
authorized to make under the Rules, Regulations and circulars, notifications and directives of the
Commission.

16
7.3.6 Investment of the Scheme in any company, sector or industry shall not, at any time, exceed such
limits as prescribed by the Rules and Regulations.

7.4. Exceptions to investment restrictions

7.4.1 The Fund may deposit securities for facilitation or guaranteeing settlement of its own trades and
transactions in favor of an exchange, Stock Exchange, clearing house or national clearing and
settlement system, on acquiring associate membership of the concerned settlement system. The
securities, however, shall not be pledged for any other reason with any other person or entity.

7.4.2 In the event, the weightages of securities exceeds the limits laid down in this Offering Document,
the Rule or Regulations as a result of the relative movement in the market prices of the
investments or through any disinvestments, the Management Company shall bring the exposure in
such manner and within such time as prescribed by the Regulations. In any event, the
Management Company shall not invest further in such shares or sectors while the deviation exists;
provided, that this restriction on further investment shall not apply to any offer of right shares and
bonus shares.

7.5. Borrowing and Borrowing Restrictions

7.5.1 Subject to the Constitutive Documents, Rules, Regulations and any other applicable law, the
Trustee may, at the written request of the Management Company, make varying arrangements with
Banks or Financial Institutions for borrowing by the Trustee for the account of the Trust; provided,
that the interest/mark up charges for such borrowing are not higher than prevalent market mark-
up/interest charges. If subsequent to such borrowing, the Net Assets are reduced as a result of
depreciation in the market value of the Fund Property or redemption of Units, neither the
Management Company nor the Trustee shall be under any obligation to reduce such borrowing.

7.5.2 Borrowing shall not be resorted to except for meeting redemption requests and such borrowing
shall not exceed such limits as prescribed by the Regulations.

7.5.3 For the purposes of securing any borrowing, the Trustee may on the instruction of the Management
Company, mortgage, charge or pledge in any manner all or any part of Fund Property; provided
that the aggregate amount secured by such mortgage, charge or pledge shall not exceed the limits
provided in the Regulations; provided further that, neither the Trustee nor the Management
Company shall be required to issue any guarantee or provide any security over their own assets for
securing such borrowings on account of the Trust from any Banks or Financial Institutions and
neither shall they in any manner be liable in their personal capacities for repayment of any
borrowings.

7.5.4 Neither the Trustee nor the Management Company shall incur any liability by reason of any loss to
the Trust or any loss that a Unit Holder may suffer by reason of any depletion in the Net Asset
Value that may result from any borrowing arrangement made hereunder in good faith.

7.6. Transactions with Connected Persons

7.6.1 Cash forming part of the Fund Property may be deposited by the Trustee in a separate account, in
the name of the Trustee with a Bank licensed to accept such deposits, approved by the
Management Company, having a minimum investment grade rating of AA (Double A) as per the
criteria laid down by a credit rating agency approved by the Commission.

17
7.6.2 The Management Company on behalf of the Scheme shall not, without the prior approval of the
Commission in writing, purchase from, or sell any securities to any Connected Person or
employee of the Management Company.

7.6.3 In case the cash forming part of the Scheme’s assets is deposited with the Trustee or the
Custodian, which is a Bank, return shall be paid on the deposit by the Trustee or Custodian at a
rate that is not lower than the rate offered by the said Bank to other depositaries thereof on
deposits of similar account and maturity.

7.6.4 The Management Company shall not employ as a Broker, directly or indirectly, any of its
directors, officers or employees or a member of a family of such persons and enter into
transactions with any connected Broker, which shall equal or exceed such limits as prescribed by
the Rules and Regulations.

7.6.5 Any transaction carried out by or on behalf of the Scheme shall be made as provided in the
Constitutive Documents, and shall be disclosed in the Scheme’s annual report.

7.7. Valuation of Fund Property:

7.7.1 The Net Assets in relation to the Fund shall be calculated in the following manner:

(a) An investment purchased and awaiting payment against delivery shall be included for
valuation purposes.

(b) An investment sold but not delivered pending receipt of proceeds shall be valued at the net
sale price.

(c) The value of any dividends, bonus shares or rights which may have been declared on
securities in the portfolio but not received by the Scheme as of the close of business on the
valuation date shall be included as assets of the Scheme if the security upon which such
dividends, bonus shares or rights were declared is included in the assets and is valued ex-
dividend, ex-profit, ex-income, ex-interest, etc. as the case may be.

(d) Mark-up accrued on any mark-up-bearing security in the portfolio shall be included as an
asset of the Scheme if such accrued mark-up is not otherwise included in the valuation of the
security.

(e) Any other income accrued upto the date on which computation was made shall also be
included in the assets.

(f) All liabilities, expenses and other charges due or accrued up to the date of computation which
are chargeable under the Regulations and taxes shall be deducted from the value of the assets.

(g) The remuneration and fees accrued up to the date of computation payable to the Management
Company, the Trustee, the Commission, and the Auditors of the Fund and for providing the
services shall be included as an expense.

(h) A security not listed or quoted on a Stock Exchange, other than a government or debt security
shall be valued at investment price or its break up value as per last audited accounts,
whichever is lower.

18
 (i) Government Securities not listed on a Stock Exchange and traded in the interbank market
shall be valued at the average rate quoted on a widely used electronic quotation system and
such average rate shall be based on the remaining tenor of the security.

(j) In respect of investments held in foreign currencies, the same shall be translated in Pakistan
Rupees using the closing buying spot rates declared by the SBP at each balance sheet date.

(k) Valuation shall be carried out pursuant to such method of valuation of assets and liabilities as
may be specified or modified by the Commission from time to time. For any asset class, in
relation to which no specific method or valuation is prescribed in the Regulations, specific
approval from the Commission shall be obtained and valuation shall be done accordingly.

7.7.2 In the event that the Management Company deems necessary to make provision against any debt
securities that form part of the Authorized Investments, such provisions shall be made in
accordance with the provisioning policy approved by the Board of Directors of the Management
Company, as specified by the Commission, and disclosed on the website of the Management
Company.

7.8. Risk Disclosure, Warning and Disclaimer

7.8.1 It should be clearly understood that portfolio of the Scheme is subject to market fluctuations
and risks inherent in all such investments. The value of Units in the Scheme may appreciate
as well as depreciate, and the Fund may or may not declare a dividend. Past performance
does not necessarily indicate future performance.

Investment process requires disciplined risk management. The Management Company shall
incorporate adequate safeguards for controlling risks in the portfolio construction process of
the Fund. The risk control process involves reducing risks through optimal portfolio
diversification. The Management Company believes that this diversification shall help
achieve the desired level of consistency in returns.

The investment team of the Management Company aims to follow proper credit evaluation of
the securities proposed to be invested in. In this regard, it shall be guided by the ratings of
credit rating agencies such as Pakistan Credit Rating Agency Limited, JCR-VIS Credit
Rating Company Limited or any other rating agency approved by the Commission.

The Authorized Investments of the Fund are subject to varying degrees of risk emanating
from various factors which include, but are not limited to:

Credit Risk:

Credit risk is comprised of default risk, credit spread risk and downgrade risk. Each
can have a negative impact on the value of a security:

(a) Default risk is the risk that the issuer will not be able to pay the obligation, either
on time or at all;

(b) Credit spread risk is the risk that there will be an increase in the difference between
the return/mark-up rate of a security/instrument and the return/mark-up rate of a
security/instrument that is considered to have little associated risk(such as a
government guaranteed bond or treasury bill. The difference between this

19
 return/mark-up rates is called a “credit spread”. Credit spreads are based on
macroeconomic events in the domestic or global financial markets. An increase in
credit spread will decrease the value of securities including money market
instruments; and

(c) Downgrade risk is the risk that a credit rating agency, such as PACRA or JCR--VIS,
will reduce the credit rating of a bank or any other entity with which investment has
been made. Downgrades in credit rating will decrease the value of those securities
including money market instruments.

Derivative Risk:

Derivatives may be used, with the prior approval of the Commission, to limit or hedge
potential losses associated with return/mark-up rates. This process is called “hedging”.
Derivatives may also be used for non-hedging purposes, among others, to reduce Transaction
Costs, achieve greater liquidity and create effective exposure to financial markets or increase
speed and flexibility in making portfolio changes. Any use of derivatives includes the
following risks:

(a) The hedging strategy may not be effective.

(b) There is no guarantee that a market will exist when a fund wants to buy or sell the
derivative contract.

(c) A large percentage of the assets of a fund may be placed on deposit with one or
more counterparties, which exposes such fund to the credit risk of those
counterparties.

(d) There is no guarantee that an acceptable counterparty will be willing to enter into
the derivative contract.

(e) The counterparty to the derivative contract may not be able to meet its
obligations.

(f) The Stock Exchange on which the derivative contracts are traded may set daily trading
limits, preventing a fund from closing out a particular contract.

(g) If a S t o c k Exchange halts trading in any particular derivative contract, a fund

may not be able to close out its position in that contract.

(h) The price of a derivative may not accurately reflect the value of the underlying
security or index.

Interest Rate Changes

Money Market securities have varying levels of sensitivity to changes in interest rates.
Securities with longer maturities and the securities of issuers in the financial services sector
can be more sensitive to interest rate changes. Short-term securities tend to react to changes
in short-term interest rates and such changes can impact the demand and marketability of
Money Market securities.

20
Return/Mark-up Rate Risk:
Money market instruments such as Treasury Bills pay fixed rate of return/mark-up. The
value of the Fund, due to its holdings in Money Market instruments i.e treasury bills in the
case of ASCF, will rise and fall as return/mark-up rates change depending upon the cut off
yield of treasury bills and the mark to market value. For example, when return/mark-up
rates fall, the value of an existing bond will rise because the coupon rate on that bond is
greater than prevailing return/mark-up rates and vice versa.

Government Regulation Risk:

Government policies or regulations are more prevalent in some sectors than in others.
Mutual funds that invest in sectors where government regulations or policies are more
prevalent may be affected due to change in such regulations or policies, which directly or
indirectly affect the earnings and/or the cash flows. Such funds may also be affected by any
governmental or court orders restraining payment of capital, principal or income.

Foreign Exchange Risk:

Investments in currencies other than the Pakistani Rupee are exposed to exchange rate risk.
Depreciation of the Pakistani Rupee vis-à-vis the currency of investment may increase the
value of the investment. Similarly, appreciation of the Pakistani Rupee will have the reverse
effect on foreign currency denominated investments.

Foreign Exposure
Issuers located in foreign countries and entities providing credit support or a maturity-
shortening structure that are located in foreign countries can involve increased risks.
Extensive public information may not be available and unfavorable political, economic or
governmental developments could affect the value of the security.

Sovereign Risk:
Investment in treasury bills of the government may be affected by the economic and political
events in the country The occurrence of a sovereign risk event could result in the loss of all or
a portion of the investment made in the securities so affected.

Voluminous Purchase/Redemption of Fund Units Risk:

Any significant transaction made by any investor could appreciably impact a fund’s cash
flow. If a third party buys a large number of shares or units of a fund, such fund could
temporarily have a high cash balance. Conversely, if a third party redeems a large number of
shares or Units of a fund, such fund may be required to facilitate the redemption by selling
securities at an inopportune time. This unexpected sale may have a negative impact on the
performance of a person’s investment.

Liquidity Risk:
This can occur if a security cannot be sold in the market due to some unavoidable
circumstances or some investment if sold before maturity could yield a loss therefore
liquidity risk is present.

21
 Reverse Repurchase Transactions Risk :

The risk with these types of transactions is that the other party may default on the agreement
or go bankrupt. In a reverse repurchase transaction, a mutual fund may be left holding a
security and may not be able to sell it at the same price that it paid for such security or pay a
return or mark-up on such security, if the market value of the security has dropped.

Market Risk:

Market risk is the risk the value of an investment will decrease due to moves in market
factors. Since Management company will be invested minimum 70% in Government Bonds
(3-6 T-bill), which will be monitored on Mark-to-market basis thus it will involve Value at
Risk (VaR) calculation. The 3& 6 months T-bills data for the last one year may be used for
Stress Testing.

Other Risks Involved:

(a) In the event of inordinately large number of redemptions or of restructuring of the

Scheme’s investment portfolio, there may be delays in the redemption of Units.

(b) Mismanagement of the invested company, third party liability whether through
class action or otherwise or occurrence of other events such as strikes, fraud etc. in
the company in which the investment is made.

(c) Break down of law and order, war, terrorist activity, natural disasters e t c .

(d) Senior rights of creditors over the shareholders in the event of winding up.

7.8.2 Warning and Disclaimer

(a) Investment in this Fund is suitable for investors who have the ability to take the risks
associated with the financial and capital market investments. Capital invested in the
financial and capital markets could in extreme circumstances lose its entire value.
However, investment would be made mostly in government securities which are
considered as risk free and remaining part of the investment would be made in cash and
near cash instruments which do have some inherent risk involved.

(b) The historical performance of the Fund, the financial and capital markets or that of any
one security or transaction included in the Fund’s portfolio does not indicate future
performance.

(c) Prices of Units of the Fund and income from them may appreciate or depreciate.

(d) Under extraordinary circumstances, the Management Company may declare suspension
of redemptions, invoke a queue system or announce winding-up of the Fund. On the
occurrence of such events, an investor will probably have to wait for payment beyond the
normal period and the redemption amount determined may be lower than the price at
the time the redemption request is lodged. Investors are advised to read the relevant
clauses of the Deed for more detailed information regarding this matter.

22
(e) The Units of the Fund are not bank deposits and are neither issued by, insured by,
obligations of nor otherwise supported by the Commission, any Government agency,
the Trustee (except to the extent specifically stated in this Offering Document and
the Deed), any shareholder of the Management Company, any Core Investors or
any other Bank or Financial Institution.

(f) If a prospective investor is in any doubt about the contents of this Offering Document,
they should consult their respective stock broker, bank manager, legal adviser or other
financial adviser.

23
8. OPERATORS AND PRINCIPALS

8.1. Management Company:

8.1.1Organization

(a) Management Company:

The Management Company was incorporated on May 30, 2005 and obtained a license for
carrying out asset management and investment advisory services on September 21, 2005
from the Commission. The Management Company is a wholly owned subsidiary of Askari Bank
Limited (AKBL). The Management Company has been given an AM3 rating by the Pakistan
Credit Rating Agency Limited (PACRA).

(b) Shareholding:

The pattern of shareholding of the Management Company as on June 30, 2009 is as under:

Names Designation Number of Amount Status

Shares (Rupees)
Askari Bank Ltd Holding 134, 99, 993 134, 99, 993, 0 Sponsor
company

Lt. General (R.) Imtiaz Director 1 10 Nominee AWT

Hussain

Mr. M.R.Mehkari Director 1 10 Nominee AKBL

Mr. Shahid Hafeez Azmi Director 1 10 Independent

Mr. Muhammad Naseem Director 1 10 Independent

Executive
Maj. Gen (r) Saeed Director Finance
1 10
Ahmed Khan Director AWT
Country Head
Corporate and
Tahir Aziz Khan Director 1 10 Investment
Banking Askari
Bank Limited
Total 135, 00,000* 135,000,000

*One vacant positions of Director with one (01) unit shareholding

24
8.2. Board of Directors and Management

8.2.1 Board of Directors of AIM

Name Position Directorship in other Occupation Address

Companies

Lt. General (R.) Director & As per below MD AWT Rawalpindi

Imtiaz Hussain Chairman

Mr. Muhammad Director Tecsol Associates (Pvt.) Ltd Ex- Partner C-197/1, Street
Naseem A.F. Ferguson G, K.D.A
System Innovation (Pvt.) Ltd and Co, Scheme No.1,
Chartered Karachi
Swede Bus Pakistan (Pvt.) Accountants
Ltd

Mr. M.R. Mehkari Director Banker House No.

32/1, St No.
22, Khayaban-
e-Tanzeem,
Phase V, DHA,
Karachi

Mr. Saeed Aziz Chief None Investment Islamabad

Khan
Executive Management

Mr. Shahid Hafeez Director Excellent I.T. Services (Pvt.) Banker 123 George
Azmi Ltd. Street London,
UK
Techno Trends (Pvt.) Ltd

Maj Gen (r) Director None Executive H # 37 Askari

Saeed Ahmed Director Villas
Khan Finance AWT Chaklala
Scheme 3
Rawalpindi

Tahir Aziz Khan Director 1 None Country Head 87/1

Corporate and Khayaban-e-
Investment Rahat DHA,
Banking Phase VI,
Askari Bank Karachi
Limited

25
8.2.2 Particulars of Directors

Lt. General (R.) Imtiaz Hussain

Lt. General (R.) Imtiaz Hussain is the Chairman of the Board of the Management Company. He is
also the Managing Director of the Army Welfare Trust (AWT) and Chairman Executive
Committee of Askari Bank Ltd, Chairman Board Askari Leasing Ltd. Chairman Board and Askari
General Insurance Co. Ltd.He joined the Infantry Battalion of Pakistan Army after obtaining his
commission in 1971. He held various prestigious Command and Staff appointments during his 36
years of commissioned service. He served as the Directing Staff at the Command and Staff
College. He also commanded an Infantry Corp, Division and Brigade.

Lt. General (R.) Imtiaz Hussain served as Director General Doctrine and Evaluation Directorate
and subsequently as Director General Weapons and Equipment at General Headquarters. He
commanded a Corps from May 2005 to April 2007. He served as Adjutant General of Pakistan
Army before he retired.

Mr. Muhammad Naseem – Director

Mr. Naseem is a Chartered Accountant by profession and is a fellow member of both, the Institute
of Chartered Accountants of England and Wales and the Institute of Chartered Accountants of
Pakistan. He completed his professional education from England.
Mr. Naseem has more than 27 years of professional experience in Audit and Business Advisory
Services, Corporate Finance Services, Financial Investigations and Accounting and Transaction
Services.
He joined Pricewaterhouse (Now called PricewaterhouseCoopers) in 1969, where he was
primarily involved in servicing various clients in the Middle East and North Africa. In 1982 he
was transferred to A. F. Ferguson & Co. (A member firm of Pricewaterhouse in Pakistan), one of
the most prestigious firm of Chartered Accountants in Pakistan.
During his 22 years with the firm, Mr. Naseem served multinational and large national clients and
engaged in fields of Oil and Gas, Telecommunications, Ocean Transportation, Investment
Banking, Heavy Engineering, Steel Fabrication, Brokerage Houses, etc. Further, he has also been
involved in the internal audit assignments of a number of clients of A. F. Ferguson & Co.
Mr. Naseem has also served on the Education Committee and Quality Control Committee of the
Institute of Chartered Accountants of Pakistan.

Mr. M.R. Mehkari - Director

Mr. Mehkari has over 37 years of experience of Treasury Management, Foreign Exchange and
Branch Management Operations at Askari Bank Ltd. and other banks. He possesses management
skills of planning and development, mobility, motivation and innovations that are required in the
current modern banking in Pakistan.

He has worked as Director, Foreign Exchange and Policy Department at SBP where he was
instrumental for the foreign exchange policy liberalization in the country. He has also served as a
member of Corporate Management Team and Monetary and Exchange Rate Policy Committee
(MERPC) at SBP.

26
 Mr. Saeed Aziz Khan - Chief Executive

Mr. Khan has extensive global exposure to money and capital markets, trading in multiple
currencies, bonds, equities and their derivates. He has worked in treasuries of some of the top
banks in Hong Kong, Sydney, London, New York, Abu Dhabi and Pakistan. He also conducted
seminars in Tokyo and Dubai on options and technical analysis.

Mr. Shahid Hafeez Azmi – Director

Mr. Azmi is a seasoned investment banker. He has been associated with Merrill Lynch, Dubai,
E.F. Hutton, London and Lehman Brothers, London, looking after various functions like asset
management, mutual funds, interest rate swaps and dealing in futures and options. Mr. Azmi did
his MBA from Institute of Business Administration (IBA), Karachi in 1975.

He was also one of the founding directors of Askari Bank Limited and served at the same position
till Early 2005 for the Bank.

Maj. Gen (r) Saeed Ahmed Khan- Director

Maj Gen (r) Saeed Ahmad Khan is currently working as Executive Director Army Welfare Trust.
He has completed the Army Command and Staff course, the inter services war course from
Republique Francaise and the Armed Forces War Course from National Defence University
Islamabad. He has a Bsc Honors Degree from the Balochistan University and a MSc Honors
Degree from Quaid-e-Azam University.

Mr. Tahir Aziz Khan- Director

Mr. Aziz is a seasoned investment banker and has been part of this field since 1991. Presently he
is working as SEVP and Group head, corporate and investment banking Askari Bank Limited. He
holds an MBA degree from the Lahore University of Management Sciences (LUMS).

8.2.3 Performance of Listed Companies with Common Directorship

Askari Bank Limited as of 31st December

2008 2007 2006 2005 2004 2003
EPS (Rs.) 0.95 6.61 11.23 10.09 15.31 8.78
Shareholders Equity
(Rs 000s) 12,034,895 12,099,645 9,619,066 7,595,145 5,573,149 3,901,279
Total Assets (
Rs 000s) 206,191,138 182,171,885 166,033,588 145,099,907 107,167,541 85,386,902
Cash Dividend Rs 0 1.5 1 1.5
Stock Dividend % 25% 35% 50% 33%
Paid up capital
(Rs 000s) 4,058,774 3,006,499 2,004,333 1,507,018 1,255,848 1,141,680

27
Askari Leasing Limited as of 30th June
2008 2007 2006 2005 2004 2003
EPS (Rs.) 3.41 3.3 3.63 2.4 2.55 2.73
Shareholders Equity
(Rs 000s) 1,201,888 1,102,667 894,511 793,053 822,721 852,483
Total Assets (Rs 000s) 12,383,865 12,050,476 10,780,952 8,912,327 7,950,769 8,258,946
Cash Dividend % 0% 10% 0% 0% 0% 0%
Stock Dividend % 15% 5% 15% 15% 15% 15%
Paid up capital
(Rs 000s) 449,915 428,490 372,600 324,000 324,000 324,000

Askari General Insurance Limited as of 31st December

2008 2007 2006 2005 2004 2003
EPS (Rs.) 0.33 2.54
Shareholders Equity (Rs Million) 296 282.297 232.91 175.82 148.68 101.34
Total Assets (Rs Million) 1217.25 1117.59 882.8 732.49 641.24 423.77
Cash Dividend % 0% 0% 0% 0% 18% 15%
Stock Dividend % 0% 30% 30% 18% 0% 0%
Paid up Capital Rs Million 203.77 156.75 120.58 102.18 102.18 81.75

8.2.4 Particulars of the Management

Mr. Rizwan Hasan Khan, Chief Financial Officer

Prior to joining the Management Company, Mr. Khan has served at Citigroup N.Y. He has over
12 years core asset management industry experience. Mr. Khan has also been an integral part of
other major international organizations such as Barclays and Mackenzie Financial in USA and
Canada. Mr. Khan has extensive experience of various Asset Management products like Hedged,
Exchange Traded, Private Equity and Mutual Funds. Rizwan completed his Bachelors and Masters
degrees from City University of N.Y. (Baruch College) and University of Bridgeport C.T., USA.

Mr. Adnan Muzaffar, Fund Manager Fixed Income

Mr. Adnan Muzaffar has more than twelve years of fund management, risk management and
financial analysis experience. He has worked in both Fortune 500 companies in the U.S. and large
financial institutions in Pakistan. Currently, he is the Fund Manager for Fixed-Income products at
the Management Company and manages a portfolio of more than Rs. 3 billion. He joined the
Management Company as Head of Risk Management in 2006. Prior to joining AIM, he was the
Vice President, -Risk Management at Washington Mutual Bank, USA, where he was responsible
for management of all aspects of risk management for the bank. Before that, he was Manager-
Credit Risk Management, Freddie Mac, USA, which is one of the largest mortgage companies in
the world. Prior to joining Freddie Mac, he worked as Senior Consultant at Ernst and Young, USA.
Mr. Muzaffar completed his MBA from University of Texas at Austin, U.S. and B.S. in Electrical
Engineering from University of Engineering and Technology, Lahore.

28
 Mr. Usman Ashraf, Fund Manager Equities

Mr. Usman Ashraf has recently joined the Management Company as Fund Manager-Equities. He
has over fifteen years post qualification experience of which his major exposure was with the
capital markets of Pakistan. He has been associated with the premier brokerage houses at different
senior positions where he gained hands on experience of dealings in equities, sales and marketing
strategies, equity market analysis, financial advisory, customer relationship, trading in spot & future
markets, price forecasting and settlements. His last assignment was with Invest and Finance
Securities Limited as Director Sales. He did his MBA from Adamson University, Manila
Philippines. He has also completed a Canadian Securities Course and a Derivative Fundamental
Course from CSI, Canada.

Mr. S. Shaukat Malik, Risk Manager

Mr. S. Shaukat Malik joined Askari Investment Management Limited as Equity Strategist and took
over as Risk Manager. Currently, he is responsible for entire financial risk assessment and
management in Income and Equity Fund of the company. He has worked on and developed
company’s Credit Analysis Model. Shaukat has over 20 years diversified experience of financial
and resource management having worked in United Nations, Lehman Brothers Holdings Inc. in US
and Nestle Pakistan Limited in Pakistan in senior management positions. He completed his
Bachelors and Masters degree from University of Louisiana at New Orleans, US.

Syed Shoaib Jaffery – Financial Controller and Company Secretary

Syed Shoaib Jaffery is working with Askari Investment Management since April 2007. Prior to
joining AIM, he worked with Tourism Promotion Services (Pakistan) limited, owners and managers
of Serena Hotels as Manager Accounts. He had also been associated with KPMG Islamabad, where
he was involved in assurance services and earned a diversified audit exposure in Banking &
financial institutions, NBFC’s, Telecommunication, and Manufacturing sectors.

8.3. Role and Responsibilities of the Management Company

The Management Company shall manage, operate and administer the Scheme in accordance with
the Rules, the Regulations, the Constitutive Documents and internal risk management guidelines in
good faith, to the best of its ability and without gaining undue advantage for itself or any Connected
Person or its officers.

(a) The Management Company shall comply with the provisions of the Rules, Regulations and the
Constitutive Documents for any act or matter to be done by it in the performance of its duties
and such acts or matters may also be performed on behalf of the Management Company by a
designated officer of the Management Company or by any nominee or agent appointed by the
Management Company and any act or matter so performed shall be deemed for all the purposes
of the Deed to be the act of the Management Company. The Management Company shall be
responsible for the acts and omissions of all persons to whom it may delegate any of its
functions as manager as if these were its own acts and omissions and shall account to the
Trustee for any loss in value of the Fund Property where such loss has been caused by its
negligence, reckless or willful act and/or omission or by its directors, officers, nominees or
agents.

(b) The Management Company may, from time to time, with the consent of the Trustee make
arrangements for conducting the business of the Scheme or with regard to any other matter

29
 incidental thereto; provided, that such arrangements are not inconsistent with the provisions of
the Rules, Regulations or the Constitutive Documents.

(c) The Management Company shall manage the Fund Property in the interest of the Unit Holders
in good faith and to the best of its ability and without gaining any undue advantage for itself or
any of its Connected Persons, and subject to the restrictions and limitations as provided in the
Rules and Regulations. Any purchase or sale of investments made under any of the provision of
the Deed shall be made by the Trustee according to the instructions of the Management
Company, unless such instructions are in conflict with the provisions of the Constitutive
Documents, the Rules or Regulations.

(d) The Management Company shall maintain a Register of Unit Holders of the Trust or appoint a
Registrar, in its discretion, to maintain the Register, and inform the Trustee and the
Commission of the address where the Register is kept. The Management Company may also
remove or replace the said Registrar in its discretion.

(e) The Management Company shall provide to the Trustee such information and records as the
Trustee may require in respect of any matter relating to the Trust and to discharge its
obligations under the Deed and the Regulations.

(f) The Management Company shall not be under any liability except such liability as may be
expressly assumed by it under the Rules, Regulations and the Constitutive Documents, nor shall
the Management Company (save as herein otherwise provided) be liable for any act or omission
of the Trustee nor for anything except its bad faith or willful breach of duty hereunder. If for
any reason it becomes impossible or impracticable to carry out the provisions of the
Constitutive Documents, the Management Company shall not be under any liability therefore or
thereby and it shall not incur any liability for any matter or thing done or suffered or omitted to
be done in good faith hereunder.

(g) The Management Company has the primary responsibility for all record keeping, regular
determination and announcement of Unit prices and for preparing and submitting financial
reports from time to time as provided in the Rules, Regulations and the Deed.

(h) The Management Company shall maintain at its principal office, proper accounts and records to
enable a complete and accurate view to be formed of the assets and liabilities of the Trust, the
income and expenditure of the Trust, all transactions for the account of the Trust, the amounts
received by the Trust in respect of issue of Units, pay out by the Trust on redemption of Units
and by way of distributions and amounts paid out at the termination of the Scheme. The
Management Company shall not remove the records or documents pertaining to the Scheme
from Pakistan to a place outside Pakistan without the prior written permission of the
Commission and the Trustee. Such accounts shall be maintained for a period of not less than ten
(10) years.

(i) The Management Company shall from time to time appoint, remove or replace one or more
Distributor(s) for carrying the Distribution Functions, at its own expense, at one or more
locations on terms and conditions to be incorporated in the Distribution Agreement(s) to be
entered into between the Distributor(s) and the Management Company. Further, in respect of
any matter connected with such Distributor(s) or Distribution Functions, the Management
Company may take such action and execute such deeds as it may deem fit from time to time.
When appointing a Distributor, the Management Company shall ensure that the (i) said
Distributor has acquired and is maintaining the associate membership of the association(s)

30
 constituted in consultation with the Commission and is abiding by the code of conduct
prescribed by the said association(s) and (ii) Distribution Agreement clearly states the terms
and conditions for avoidance of fraud and sales based upon misleading information.

(j) The Management Company may from time to time, at its own expense and responsibility,
appoint Investment Facilitators to assist it in promoting the sale of Units.

(k) The Management Company shall appoint Brokers in compliance with the Rules, Regulations
and such other conditions and criteria as it may decide from time to time and shall also ensure
that it has been diligent in appointing Brokers to avoid undue concentration of business with
any Broker.

(l) The Management Company shall appoint with the consent of the Trustee, at the establishment
of the Scheme and upon any vacancy, an Auditor who shall be a chartered accountant and
independent of the auditor of the Management Company and Trustee and such Auditor shall not
be appointed for more than five (05) consecutive years and contents of the Auditor’s report
shall be in accordance with the Rules and Regulations.

(m) The Management Company shall prepare and transmit quarterly, half yearly and annual reports
to the Unit Holders, Trustee, Commission and the Stock Exchange(s), in the form and manner
specified in the Regulations.

(n) The Management Company shall provide the Trustee with regular reports indicating dividends,
other forms of income or inflows, and any rights or warrants relating to the investments that are
due to be received. The Trustee shall report back to the Management Company any such
amounts or warrants that are received on such accounts from time to time.

(o) The Management Company shall obtain a rating of the Scheme once the Scheme becomes
eligible for rating, as per the rating criteria of a rating agency selected by the Management
Company and approved by the Commission, and such rating shall be updated at least once
every financial year and be published in the annual and quarterly reports of the Scheme.

(p) The Management Company may offer different Administrative Plans governed by
Supplementary Offering Document(s) to investors and may market the Unit Trust,
Administrative Plans or any other Scheme(s) subject to the approval of the Commission.

(q) The Management Company shall advise the Trustee of the allocation of the funds between the
respective Scheme(s) on the basis of the Administrative Plans as described in the
Supplementary Offering Document(s).

(r) The Management Company shall determine from time to time the various class(es) of Units to
be issued pursuant to the Deed and the rights and conditions that attach to each class of Units,
subject to consent of the Trustee and approval of the Commission, including the Front-end
Load and Back-end Load to be charged to each class as well as the dividends payable in respect
to each class and the form and timing thereof.

(s) The Management Company shall appoint and designate a qualified individual as fund manager
for management of the Fund, who shall be responsible for the management of not more than
three collective investment schemes at a time, or such lesser number as may be specified by the
Commission

31
 (t) The Management Company may in consultation with the Trustee further appoint advisors and
professionals in offshore countries for making investments in offshore countries and/or for
issuing Units to the investors in the offshore countries to determine the legal and regulatory
requirements to be fulfilled by the Fund, the Management Company and the Trustee and their
respective obligations in relation thereto. The fees of such advisors and professionals shall not
be charged to the Fund.

(u) The Management Company shall nominate one or more of its officers to act as attorney(s) for
performing the functions of Management Company and for interacting with the Trustee.

8.4. Trustee

The Central Depository Company of Pakistan (CDC), a company incorporated under the
Companies Ordinance, 1984, with its registered office at CDC House, 99-B, Block-B, S.M.C.H.S,
Main Shahra-e-Faisal, Karachi, Pakistan has been appointed as the Trustee for the Fund. The
Trustee has considerable amount of experience of trusteeship with regard to open-end schemes
which are successfully functioning in Pakistan. The operations of CDC are carried out by a team of
high caliber professionals from a wide spectrum of relevant disciplines possessing graduate and
postgraduate qualifications from distinguished local and international institutions.

Role and Responsibilities of the Trustee

(a) The Trustee shall take into its custody or control and invest, hold and/or maintain the Fund
Property from time to time at the direction of the Management Company strictly in terms of
the provisions of the Rules, Regulations, Constitutive Documents and the conditions, if any,
imposed by the Commission from time to time. The Trustee shall comply with the provisions
of the Rules, Regulations and the Constitutive Documents for any act or matter to be done by
it in the performance of its duties and such acts or matters may also be performed on behalf of
the Trustee by (a) a designated officer of the Trustee, or (b) nominee or agent appointed by the
Trustee with the written approval of the Management Company, provided that, the Trustee
shall be responsible for the acts and omissions of all persons to whom it may delegate any of
its duties as if they were its own acts and omissions and shall account to the Trust for any loss
in value of the Fund Property where such loss has been caused by negligence of the Trustee or
any of its directors, officers, nominees or agents.

(b) The Trustee shall take under its control all the Fund Property and hold the same in trust for the
Unit Holders in accordance with the Rules, Regulations and the provisions of the Deed. The
Trustee has the responsibility for being the nominal owner of and for the safe custody of the
assets of the Scheme on behalf of the Unit Holders, within the framework of the Rules,
Regulations and the Constitutive Documents. The cash and registerable assets shall be
registered in the name of, or to the order of, the Trustee.

(c) The Trustee shall nominate one or more of its officers to act as attorney(s) for performing the
functions of the Trustee and interact with the Management Company and such nomination
shall be intimated to the Management Company.

(d) The Trustee shall exercise all due diligence and vigilance and comply with the Ordinance,
Rules, Regulations, Constitutive Documents, guidelines, codes, circulars, directives or any
other applicable laws in carrying out its duties and in protecting the interest of the Unit
Holders. The Trustee shall not be under any liability on account of anything done or suffered
by the Trustee in good faith in accordance with or in pursuance of any request of the

32
 Management Company; provided that, they are not in conflict with the provisions of the
Constitutive Documents, the Rules or Regulations. Whenever pursuant to any provision of the
Deed any certificate, notice, direction, instruction or other communication is to be given by the
Management Company to the Trustee, the Trustee may accept as sufficient evidence thereof
(a) a document signed or purporting to be signed on behalf of the Management Company by
person(s) whose signature the Trustee is for the time being authorized in writing by the
Management Company to accept, (b) any instruction received online through the software
solution adopted by the Management Company for managing and keeping records of the funds
managed by the Management Company and to the satisfaction of the Trustee, (c) third party
evidence where required, like broker contract, expenses, bills etc as agreed upon between the
Management Company and the Trustee, and (d) instructions given electronically to the Trustee
based on distinctive user IDs and passwords allocated to authorized person(s) of the
Management Company through a computerized system for which both the parties i.e. the
Management Company and the Trustee have agreed in writing. In case of any error or
omission occurring in electronic system due to system malfunction or any instruction(s) based
on such system contain any error or omission due to the above-mentioned malfunction, the
Trustee and the Management Company not knowing the fact will act in the best interests of the
Fund and the Unit holders.

(e) The Trustee shall not be liable for any loss caused to the Fund or to the value of the Fund
Property due to any elements or circumstances beyond its reasonable control. The Trustee
shall not be under any liability except such liability as may be expressly assumed by it under
the Rules, regulations and the Deed nor shall the Trustee (save as herein otherwise provided)
be liable for any act or omission of the Management Company nor for anything except its own
negligence or willful breach of duty hereunder. If for any reason it becomes impossible or
impracticable to carry out the provisions of the Deed the Trustee shall not be under any
liability therefore or thereby and it shall not incur any liability by reason of any error of law or
any matter or thing done or suffered or omitted, to be done in good faith hereunder.

(f) The Trustee shall carry out the instructions of the Management Company in all matters
including investment and disposition of the Fund Property unless such instructions are in
conflict with the provisions of the Constitutive Documents, Rules and Regulations; provided
however, if for any reason, it is not possible to carry out any instructions or fulfill or effectuate
any of the provisions of the Deed, the Trustee shall not be responsible therefor and it shall
neither incur any liability for anything done or omitted to be done in good faith. The Trustee
shall immediately inform the Commission if any act, omission or activity of the Management
Company is in contravention of the Ordinance, Rules, Regulations, Constitutive Documents,
guidelines, codes, circulars, directives or any other applicable Laws.

(g) The Trustee shall ensure that the investment and borrowing limitations specified in the
Regulations and the Constitutive Documents are complied with.

(h) The Trustee shall not invest in Units of the Scheme.

(i) The Trustee shall provide to the Management Company such information as the Management
Company may require from time to time in respect of the Fund Property and all other matters
relating to the Trust.

(j) The Trustee shall ensure that the Units of the Scheme have been issued after realization of the
Purchase Price.

33
(k) The Trustee shall in consultation with the Management Company appoint and may also
remove and replace from time to time one or more Bank(s) and/or other depository company,
to act as the Custodian(s) for holding and protecting the Fund Property and every part thereof
and for generally performing the custodial services at one or more locations and on such terms,
as the Trustee and the Management Company may mutually agree and to be incorporated in
custodial services agreement(s) to be executed between the Trustee and the Custodian(s).
Provided however, the Trustee may also itself provide custodial services for the Trust with the
approval of the Management Company at competitive terms as part of its normal line of
business.

(l) The Trustee shall ensure that the Management Company has specified in writing, the criteria
for the appointment, removal and replacement of a diverse panel of Brokers. The Trustee shall
also ensure that the Management Company has been diligent and fair in appointing Brokers to
avoid undue concentration of business with any particular Broker(s).

(m) The Trustee shall immediately inform the Commission if any action of the Management
Company contravenes the Ordinance, Rules, Regulations, Constitutive Documents, guidelines,
codes, circulars, directives, notifications or any other applicable law.

(n) The Trustee shall issue a report to be included in the annual and second quarter report of the
Scheme to be sent to the Unit Holders whether in the Trustee’s opinion, the Management
Company has in all material respects managed the Scheme in accordance with the provisions
of the Deed, Rules and Regulations and if the Management Company has not done so, the
respect in which it has not done so and the steps, which the Trustee has taken in respect
thereof.

(o) The Trustee shall be entitled to require the Auditors to provide such reports as may be agreed
between the Trustee and the Management Company as may be considered necessary to
facilitate the Trustee in issuing the certification required under the Rules and Regulations. The
Trustee shall endeavor to provide the certification at the earliest date reasonably possible.

(p) The Trustee shall forward to the Management Company within two (02) Business Days, any
notices, reports or other documents issued by the issuers of securities, recipients of any funds
of the Trust (as deposits, refunds, distribution of dividends, income, profits, repayment of
capital or for any other reason), any depository, an intermediary or agent in any transaction or
from any court, government, regulator, Stock Exchange or other exchange or any other party
having any connection with any transactions. The Trustee shall promptly act on any instruction
by the Management Company in all such matters relating to recovery of the Fund Property.

(q) The Trustee shall promptly provide proxies or other forms of powers of attorney to the order
of the Management Company with regard to any voting rights attached to any Investment.

(r) The Trustee shall institute or defend any suit, proceeding, arbitration or inquiry or any
corporate or shareholders action in respect of the Fund Property or any part thereof if so
requested by the Management Company in writing. All costs, charges and expenses (including
reasonable legal fee) incurred in instituting or defending any such action shall be on account of
the Fund Property and the Trustee shall (out of the Fund Property) be indemnified by the
Management Company against all such costs, charges and expenses; provided that no such
indemnity shall be given in respect of any action taken against the Trustee for negligence or
breach of fiduciary duties in connection with its duties under the Deed or the Rules or
Regulations. For the avoidance of doubt it is clarified that notwithstanding anything contained
in the Constitutive Documents, the Management Company and Trustee (other than on account

34
 of the Fund Property) shall not be liable in respect of any losses, claims, damages or other
liabilities whatsoever suffered or incurred by the Trust arising from or consequent to any such
suit, proceeding, arbitration or inquiry or corporate or shareholders action or otherwise
howsoever and (save as herein otherwise provided), all such losses, claims, damages and other
liabilities shall be borne by the Trust.

(s) The Trustee or the Custodian or any of their Connected Persons shall not sell or purchase or
deal in the sale of any relevant Investment or enter into any other transaction with the Trust,
except with the prior written approval of the Management Company.

(t) Any transaction between the Trustee and the Management Company or any of its Connected
Persons as principal, shall only be made, in accordance with the Rules and Regulations.

(u) The Trustee shall ensure that (a) the sale, issue, repurchase, redemption, transfer and
cancellation of Units are carried out in accordance with the provisions of the Constitutive
Documents and the Regulations, and (b) the methods adopted by the Management Company in
calculating the value of Units are adequate and in accordance with the provisions of the
Constitutive Documents and the Regulations.

(v) The Trustee shall ensure that the conditions under which the Scheme has been registered are
complied with.

(w) The Trustee shall have all the obligations entrusted to it under the Rules and Regulations
respectively, the Trusts Act 1882, the Constitutive Documents setting up the Unit Trust and
any Administrative Plans thereof.

(x) The Trustee shall arrange for an annual system audit by its auditors and provide the report to this
effect to the Commission and the Management Company within four (04) months of the close of
its financial year.

(y) Subject to the Rules and Regulations, the Trustee shall ensure that Units of the Scheme have
been issued after realization of subscription money.

(z) The Trustee shall comply with the directions of the Commission as may be given from time to
time.

8.5. Registrar

The Management Company shall itself act as the Registrar of the Fund and accordingly perform the
Registrar Functions. The Registrar’s responsibilities include maintaining the Register, issuing
account statements to the Unit Holders, issuing Certificates including Certificates in lieu of
undistributed income to Unit Holders, canceling old Certificates on redemption or replacement
thereof, processing of applications for issue, redemption, transfer and transmission of Units,
recording of pledges and liens and recording of changes in the data with regard to the Holders,
issuing and dispatching of Certificates, issuing and dispatching cheques or warrants in respect of
residual amount left after allocation and issue of Units, receiving applications for redemption and
transfer/ transmission of Units directly from Unit Holders or legal representatives or through
Distributors, keeping record of change of addresses/other particulars of the Unit Holders,
dispatching income distribution advice and/or bank transfer intimations, and allocating Units to the
Unit Holders for re-investments.

35
8.6. Custodian

The Trustee shall also act as the Custodian of the Fund Property. The responsibilities of the
Custodian include:
(a) Segregating the Fund Property from Custodian's own property and that of its other clients.
(b) Assuring the smooth inflow/outflow of dematerialized securities and such other instruments as
required.
(c) Ensuring that the benefits due on investments are received and credited to the Fund’s Bank
Account.

The Trustee may, if it considers necessary, appoint additional Custodians with the approval of the
Management Company and on such terms and conditions approved by the Management Company,
for the safekeeping of any portion of the Fund Property.

8.7. Distributors

8.7.1. The entities enumerated in Annexure “A” of this Offering Document have been appointed as
Distributors to perform the Distribution Functions. The addresses and other relevant details of the
Distributors are also provided in Annexure “A”.

8.7.2. The Management Company shall from time to time appoint, remove or replace one or more
Distributor(s) for carrying the Distribution Functions, at its own expense, at one or more locations
on terms and conditions to be incorporated in the Distribution Agreement(s) to be entered into
between the Distributor(s) and the Management Company. Further, in respect of any matter
connected with such Distributor(s) or Distribution Functions, the Management Company may take
such action and execute such deeds as it may deem fit from time to time. When appointing a
Distributor, the Management Company shall ensure that (i) the said Distributor has acquired and is
maintaining the associate membership of the association(s) constituted in consultation with the
Commission and is abiding by the code of conduct prescribed by the said association(s) and (ii)
the Distribution Agreement clearly states the terms and conditions for avoidance of fraud and sales
based upon misleading information.

8.7.3. The Distributors shall be responsible for (a) receiving applications for issue of Units together with
the aggregate Offer Price for Units applied for by the applicants, (b) issuing receipts with regard
to sub-clause (a), (c) interfacing with and providing services to the Unit Holders, including
receiving redemption, transfer and pledge applications, conversion notices and applications for
change of address or issue of duplicate Certificates for immediate transmission to the Management
Company or the Transfer Agent as appropriate, and (d) accounting to the Trustee for all (i)
moneys received from the applicants for issuance of Units, (ii) payments made to the Unit Holders
on redemption of Units, and (iii) expenses incurred in relation to the Distribution Functions.

8.7.4. The Management Company may also, at its own expense and responsibility, from time to time,
appoint Investment Facilitators. The role of the Investment Facilitators is to identify, solicit and
assist investors in investing in the Fund.

8.7.5. The remuneration of the Distributors and Investment Facilitators for the sale of Units with Front-
end Load may be paid, as decided by the Management Company, (i) from any Front-end Load
received, by the Trustee, (ii) by the Management Company when the Trustee pays the Front-end
Load to the Management Company for onward distribution to the Distributors and Investment

36
 Facilitators, or (iii) by the Management Company from its management fee, and no charges shall
be made against the Fund Property or the Distribution Account in this respect. If the Front-end
Load received by the Trustee is insufficient to pay the remuneration of the Distributors and
Investment Facilitators, the Management Company shall disburse the amount necessary to pay
such remuneration in full from its management fee.

8.8. The Auditor

The Auditors of the Fund are:

Ford Rhodes Sidat Hyder & Co.

Chartered Accountants
2nd Floor, 75-West Eagle Plaza
Fazal-ul-Haq Road
Blue Area, Islamabad.

8.8.1 The Management Company shall appoint upon vacancy, an Auditor, with the consent of the
Trustee, from the approved list of auditors circulated by the Commission from time to time, who
shall be a chartered accountant and independent of the auditor of the Management Company and
the Trustee and such Auditor shall not be appointed for more than five (05) consecutive years.

8.8.2 The persons not qualified to be the auditor of a public company under the Companies Ordinance
shall not be qualified to be the Auditor.

8.8.3 Appointment of a partnership firm to be the Auditor shall be deemed to be the appointment of all
persons who are partners in the firm for the time being.

8.8.4 The Auditors shall have access to the books, papers, accounts and vouchers of the Fund, whether
kept at the office of the Management Company, Trustee, Custodian, Registrar or elsewhere and
shall be entitled to require from the Management Company, Trustee and their directors, officers
and agents such information and explanations as considered necessary for the performance of
audit.

8.8.5 The Trustee shall be entitled to require the Auditor to provide such further reports as may be
agreed between the Trustee and the Management Company as are considered necessary to
facilitate the Trustee in issuing the certification required under the Rules and Regulations.

8.8.6 The Auditors shall prepare a written report to the Unit Holders on the books of accounts of the
Trust and the balance sheet and income and expenditure account and on every other document
forming part of the balance sheet and income and expenditure account, including notes, statement
or schedules appended thereto.

8.8.7 The contents of the Auditor’s report shall be in accordance with the Regulations.

8.9. Legal Advisors

The legal advisors for the Fund are:
AJURIS, Advocates & Corporate Counsel
251-B, Street No. 4, F-10/3,
Islamabad.

37
8.10. Bankers
The banker for the Fund is Askari Bank Limited or such other Bank(s) as may be appointed by the
Management Company from time to time. The Trustee shall have the responsibility of operating
the Bank Accounts of the Fund.

8.10.1 Bank Accounts

(a) The Trustee, at the request of the Management Company, shall open Bank Accounts titled
“CDC-Trustee Askari Sovereign Cash Fund” for the Unit Trust at designated Bank(s) for
collection, investment, redemption or any other use of the funds of the Trust.

(b) The Trustee shall open additional Bank Account(s) titled “CDC-Trustee Askari Sovereign
Cash Fund” at such branches of Banks and at such locations (including outside Pakistan,
subject to applicable regulations and after obtaining all necessary approvals from the relevant
regulatory authorities in Pakistan) as may be required by the Management Company from
time to time. Such Bank Accounts shall be used as collection and redemption accounts for
Investment in the Unit Trust and the Administrative Plans thereof. There shall be standing
instructions for all such collection and redemption Bank Accounts to promptly transfer the
funds collected therein to the main Bank Account of the Scheme and/or transfer the funds to
the relevant bank accounts of the Unit Holders for redemption purposes.

(c) The Management Company may require the Trustee to open separate collection Bank
Accounts for the Unit Trust to facilitate the receipt, tracking and reconciliation of income or
other receipts relating to the Investments.

(d) The Management Company may also require the Trustee to open separate Bank Account(s)
for each dividend distribution out of the Unit Trust.

(e) The Trustee shall, if requested by the Management Company, also open a separate Bank
Account titled “CDC-Trustee Askari Sovereign Cash Fund” at Bank(s) designated by the
Management Company to facilitate Investment in each of the Administrative Plans. These
Bank Account(s) shall be temporary collection accounts, where collections received on
account of subscription of Units by investors of various unit trust(s) and the Administrative
Plans that are managed by the Management Company shall be held prior to their being
allocated and transferred to pertinent unit trust(s) for Investments in accordance with the
Administrative Plans selected by the investors. Such Bank Account(s) may also be used for
temporary parking of redemption proceeds which the Unit Holders may wish to re-invest at a
later stage in the same fund or other funds which may be managed by the Management
Company; provided however, in relation to the other unit trusts managed by the Management
Company, there are similar provisions in the trust deeds thereof and the Trustee is common to
them.

(f) A Bank with which a Bank Account of the Scheme is opened or held shall have a minimum
investment grade rating of AA (Double A) or such other rating as specified by the
Commission, as per the criteria of a credit rating agency approved by the Commission.

(g) All interest, income, profit etc. earned in the Distribution Account, including those accruing
on unclaimed dividends, shall form part of the Trust Property for the benefit of the Unit
Holder(s) and shall be transferred periodically from the Distribution Account(s) to the main
Bank Account of the Trust.

38
 (h) The amounts received from the Core Investors (seed capital) and other investors during the
Pre-IPO shall be deposited in separate Bank Accounts having title “CDC-Trustee Askari
Sovereign Cash Fund”. Separate Bank Accounts for local and offshore Pre-IPO investors shall
be opened with a scheduled Bank. The Management Company may from time to time deposit
such Pre-IPO amounts with scheduled commercial Banks having a minimum investment grade
rating of AA (Double A), rated by any credit rating agency listed/approved by the
Commission and subsequently transfer such amounts to the main Bank Account of the Fund
upon the close of the Initial Period of Offer. Any interest/markup, profit, etc. earned on such
Pre-IPO Bank deposits up to the close of the Initial Period, after deducting all expenses, shall
be paid to the Core Investors and Pre-IPO investors based on proportionate basis of their Pre-
IPO subscription amounts and shall not form part of Fund Property. Such payments shall be
made either in the form of cash or additional Units as the Management Company may decide.

(i) The Management Company shall not open or close or arrange to open or close any account
with a Bank, broker or depository for the Scheme without the approval of its Board.

(j) Notwithstanding anything in the Deed, the beneficial ownership of the balances in the Bank
Accounts shall vest with the Unit Holder(s), except for the Bank Account mentioned in sub-
clause (h) above.

8.11. Core Investor

Name Number of Units Rupees

Askari Bank Limited 1,000,000 100,000,000
Total 1,000,000 100,000,000
The above Core Investor has subscribed an aggregate sum of Rs. 100,000,000 towards the
purchase of 1,000,000 Restricted Units of Rs. 100 each.

These Restricted Units are not redeemable for a period of first two years from the date of close
of the Initial Period. However, the Restricted Units are transferable during this two year
period. The Transfer Agent will mark these Units as such. Any transfer of these Restricted Units,
during the first two years of their issue, shall be affected only on the receipt by the Transfer Agent
of a written acceptance of this condition by the transferee.

The above Core Investor as well as other Pre-IPO Investors shall be eligible to any profit earned on
their investments from the date the funds are placed in the Bank Account specified in sub-clause
8.10.1(h) above, till the day before opening of the Initial Public Offer (seven working days starting
18th September 2009). The purpose of this is to ensure that all Unit Holders are treated at par at the
beginning of the Initial Public Offer.

Askari Bank Limited (AKBL)

AKBL, the Core Investor of the Fund, was incorporated in Pakistan on October 9, 1991 as a
public limited company and is listed on the Karachi, Lahore and Islamabad Stock Exchanges.
AKBL commenced its operations on April 1, 1992 and has since expanded its nation-wide
presence by establishing over 90 branches, supported by a network of online ATMs and an off
shore banking unit in the Kingdom of Bahrain. Army Welfare Trust is the major shareholder of
the Bank and holding 50.17% % shares as of December 31, 2008

AKBL is a scheduled commercial Bank and is principally engaged in the business of banking as
defined in the Banking Companies Ordinance, 1962. AKBL offers a full range of commercial

39
 banking services to the corporate, middle market and retail segments. AKBL now intends to
open more retail outlets in the high potential markets in a planned but aggressive manner and to
improve technology to further strengthen its position in this area of operations. Existing
branches are also being renovated and upgraded and human resource is being provided improved
training. The present nation-wide network is fully equipped to provide complete range of
services and AKBL’s infrastructure, policies and plans are all geared towards promoting speedy
service to customers.

8.12. Funds being managed by the Management Company

Askari Income Fund (AIF) The Askari Income Fund (AIF) is the first mutual fund launched in
2006 by the Management Company. It is an open end mutual fund that is a safe and low risk
investment option. The fund invests in fixed income instruments like T-Bills, term finance
certificates and other short to medium term fixed income securities. The investment objective of the
scheme is to provide its holders attractive daily returns from a portfolio of low risk assets while
maintaining competitive returns. Askari Income Fund has a three-star rating from PACRA.

Date of Launching March 15, 2006

Par Value of Unit Rs. 100
Net Assets (June 30, 2009) Rs. 3.03Billion
NAV (June 30, 2009) Rs. 102.14
Listing Lahore Stock Exchange

Performance: Return (p.a.) Payout

(Rupees)
Year Ending June 30, 2006 9.91% 4.4911 per unit
Year Ending June 30, 2007 11.20% 11.0586 per unit
Year Ending June 30, 2008 9.3 % 9.0266 per unit
Year Ending June 30, 2009 3.49% 2.37 per unit
Askari Asset Allocation Fund (AAAF) Askari Asset Allocation Fund (AAAF) is an open-end fund
listed on the Islamabad Stock Exchange, the objective of which is to invest in various investments
such as stocks/shares, Term Finance Certificates (TFCs), Government Bonds (PIBs), Treasury Bills,
Certificates of Investment (COIs), Continuous Funding System (CFS), Spread Transactions (Redi-
Future), etc. The fund seeks to maximize long-term total return (stocks plus income) while
incurring less stock market risk than a fund made entirely of stocks. The fund may invest up to
100% in any one type of asset class and may easily change allocation to take advantage of
directional macro and micro economic trends and undervalued stocks.

Date of Launching 13th Sept, 2007

Par Value of Unit Rs.100.00
Net Assets (June 30, 2009) Rs. 289.142 Million
NAV (June 30, 2009) Rs. 54.6213
Listing Islamabad Stock Exchange

Performance: Return (p.a.) Payout

(Rupees)
Year Ending June 30, 2007 (Since Inception) 2%% 1.9859 per unit
Year Ending June 30, 2008 -12.28 % 0.00 per unit
Year Ending June 30, 2009 -37.85% 0.00 per unit

40
9. CHARACTERISTICS OF UNITS AND OTHER RELATED MATTERS

9.1. Minimum Amount of Investment

The minimum initial amount of investment in the Fund is Rs 5,000/-. However, since the
Management Company may offer various Administrative Plans, the minimum amounts of
investment for such Administrative Plans shall be specified in the respective Supplementary
Offering Document. The Management Company may from time to time alter the minimum amounts
of investment with prior notice to the Unit Holders. In the event, the investment in any Unit
Holder’s account falls below the minimum level as a result of revised limits, changes in valuation,
redemption, transfer or transmission, the Management Company may instruct the Registrar to close
such account by redeeming the Units in such accounts at the close of any Accounting Period at the
price applicable to redemptions on such date.

9.2. Classes and Types of Units

9.2.1. Classes of Units
(a) Class “A” (Restricted Units) issued to the Core Investors with no Front-end Load or Back-end
Load. These Units cannot be redeemed for a period of two (2) years from the date of closure
of Initial offer. However, such Units are transferable.

(b) Class “A” Units being offered and issued during the Private Placement before the Initial Public
Offer (IPO) with no Front-End or back end Load and the unit price based on the prevailing
NAV. During the Initial Public Offer Class A units will be offered without any front-end load or
back end load at the Par value.
(c) Class “B” Units, which shall be offered and issued after the Initial Public
Offer and with or without Front-End Load.
(d) Class “C” units, which shall be offered and issued after the Initial Period with or without
Back End Load.
9.2.2. Type of Units:
Income and Growth Units
Investors may be given the option to choose between the Income and Growth Units under the
Scheme. The details of the Units are as under:
The Scheme shall allow investors to either receive monthly payment (fixed or variable)
through the Amdan( Income) Units or increase value of their investments under the
Mustaqbil Izafa (Future Growth Units .)
i. Amdan (Income) Units :
The Amdan (Income) Units gives the investors the option to withdraw a fixed or variable
amount after specified regular intervals. Such units will be entitled to receive dividends
as cash or bonus units as and when declared. The Income Units are divided into two types
of Units:

a) Aasan Amdan Units (Variable Income Units

Investors can choose to withdraw the income earned after a specified regular interval. The
payment is based on the capital appreciation in the Fund;

41
 If the value of investment increases (due to growth in NAV) during an interval, the
Management Company will calculate the number of units to be redeemed in such a
manner that the total redemption value of such units is equal to the increase in the value
of investment during that interval.

If the value of investment falls (due to fall in NAV) during an interval, the
Management Company will not redeem any units at the end of that interval.

The amount so redeemed shall be transferred to the designated bank account within six (6)
working days of the redemption

b) Yaksaan Amdan Units ( Fixed Income Units )

Investors can choose to withdraw a fixed amount after specified regular intervals. This
shall be based on the profit/income earned or loss incurred during the relevant interval.
If the profit does not equal to the amount specified by the investors, an equal amount
shall be redeemed from the principal. The amount so redeemed shall be transferred to
the designated bank account within six (6) working days of the redemption. As a
result of operation of this Clause, the capital invested may deplete in case
sufficient returns are not earned to cover the amount required by the Unit Holder.

ii. Mustaqbil Izafa Units (Future Growth Units)

The Future Growth Units allows the investors to increase their investment value due to capital
appreciation and investors can take advantage of this by either receiving cash dividend or
Bonus Units.
(a) An investor shall at the time of opening an account select the Type of Units in which
such investor wishes to invest, namely, the Amdan Units (Income Units ) and/or the
Mustqbil Izafa Units (Future Growth Units)
(b) The minimum amount of investment to open and maintain an account is Rs. 5,000 for the
Future Growth Units and Rs. 100,000 for the Income Units. For the Income Units in case
the minimum investment amount falls below Rs. 50,000, funds may be transferred to the
Growth Units .
(c) After the initial investment, Unit Holders of the Fund may add a minimum of Rs. 5,000
per transaction at their convenience. Units of the Fund and fractions thereof shall be
issued against the amount received from the Unit Holder(s) in accordance with the
procedure laid down in this Offering Document. The Management Company may alter
the minimum amount required for opening, maintaining or adding to the account;
provided, that in case of an upward change in the minimum amount required for
maintaining the account or adding funds, the Management Company shall give seven
(07) days notice to Unit Holders.
(d) The Management Company shall, on the last working day of the month or the regular
interval as specified by the investor calculate the redemption value to be paid to the
Income Unit Holder(s) based on the Redemption Price on that day.
(e) The Transfer Agent shall send an account statement to the Unit Holder each time
there is an activity in the account. Such statements or report shall be sent by electronic
means or ordinary mail to the Unit Holder’s address recorded in the register.

42
 (f) In case the Management Company announces a suspension of further issue of Units of
the Fund, it may allow existing Unit Holders to continue acquiring Units out of any
dividend declared on Units held under this option.
(g) The Unit Holder may withdraw funds at any stage by filling out and submitting the
prescribed form to the Authorized Distributor. If the value of the account goes below the
prescribed amount, the minimum value requirement shall not apply to that extent. In
such an event, the Unit Holder is free to discontinue the option or convert the remaining
Units into Future Growth Units.
(h) Certificates representing Income Units shall not be issued. However, the Transfer Agent
shall send, directly to each Unit Holder, an account statement each time there is a
transaction in such Unit Holder's account.
(i) All Units and fractions thereof (up to four or more decimal places) represent an
undivided share in the Scheme and rank pari passu as to their rights in net assets,
earnings and receipt of dividends and distributions. Each Unit Holder has a beneficial
interest in the Fund proportionate to the Units held by such Unit Holder. However, while
maintaining the integrity of each Unit’s pari passu rights, the Management Company
may, for the convenience of investors, issue Units with different features from time to
time.
(j) Unit Holders may obtain certificates representing the Future Growth Units they hold by
paying a nominal fee of Rs. 25/- per certificate. This fee may be revised from time to
time by the Management Company. Requests for redemption, transfer or transmission of
Units shall be processed only on the production of the certificate(s) if issued earlier. In
the event of loss or defacing of certificates, the verification process shall be carried out to
the satisfaction of the Management Company/Trustee/Transfer Agent and the associated
costs, if any, shall be borne by the relevant Unit Holder.
(k) The Transfer Agent may register a pledge/lien on any Units in favour of any third party
with the specific authority of the Management Company. However, the pledge/lien shall
be valid only if evidenced by a statement or letter issued by the Transfer Agent
indicating the Units marked in favor of the Pledgee. The onus for due process having
been followed in registering a lien shall lie with the party claiming the lien. (Please refer
to clause 9.6 for details)

9.3. Procedure for Purchase of Units

9.3.1. Who Can Apply?

Any investor or any related group of investors qualified or authorized to purchase the Units may
make applications for the purchase of Units of the Fund. The onus for being so qualified is on the
relevant investor and neither the Management Company nor the Trustee, Registrar, Distributors
or Investment Facilitators accept any responsibility in this regard. An application for purchase of
Units may be made pursuant to the procedure described in clause 9.3.2 below, by, among others:
9.3.2. Citizens of Pakistan resident in Pakistan. In respect of minors below 18 years of age
applications may only be made by their guardians.
9.3.3. Companies, corporate bodies, Financial Institutions, Banks, partners of a firm and societies
incorporated in Pakistan, so long as such investment is permitted under their respective
memorandum and articles of association and/or bye-laws.

43
9.3.4. Pakistanis resident abroad, foreign nationals and companies incorporated outside Pakistan can
apply for Units subject to the regulations of the SBP and the Government of Pakistan and any
such regulations and laws that may apply to their place of residence, domicile and citizenship.
The payment of dividends and redemption proceeds to such investors shall be subject to the
relevant taxation and exchange laws. Any person making an application for the purchase of
Units of the Fund shall warrant that he is duly authorized to purchase such Units.

9.3.5. Provident funds constituted by companies registered under the Companies Ordinance, subject
to conditions and investment limits as laid down in Employees Provident Fund (Investment in
Listed Securities) Rules, 1996, as amended from time to time.

9.3.6. Provident, Pension and Gratuity Funds constituted by organizations other than companies
under Section 20 (h) of the Trusts Act 1882, (11 of 1882).

9.3.7. Insurance companies under the Insurance Ordinance, 2001.

9.3.8. Non Profit Organizations under Section 213(1)(i) of the Income Tax Rules, 2002.

9.3.9. Purchase Application Procedure

(a) An application for the purchase of Units shall be made by completing the prescribed Purchase
Form, appended to this Offering Document as Annexure “C”, and submitting it to the
Authorized Branch (es) of the Distributor(s) or to the Management Company, together with
the payment by cheque, bank draft, pay order, credit card etc in favor of CDC Trustee Askari
Sovereign Cash Fund and crossed “Account Payee only” up to the approved limit. The
Purchase Form shall be submitted prior to the cutoff time, on the Subscription Days. Payment
through credit cards, debit cards, auto debit instructions, IVR (Interactive Voice Response),
ATM facility or in such form (other than through cash or any bearer instruments) is subject to
finalization of arrangement by the Management Company, subject to mutually agreeing with
the Trustee which shall be published thorough Supplementary Offering Document or in at
least one newspaper having wide circulation in Pakistan. The application for issuance of Units
and the specimen signature of each Unit Holder shall be retained by the Distributor with
copies supplied to the Registrar, if so required by the Management Company. The Distributor
shall verify the particulars given in the Purchase Form and the documents submitted therewith
and ensure that the signature of any Unit Holder or joint Unit Holder to any document
required to be signed by him under or in connection with the application for issue of Units is
verified by a banker, Broker or other responsible person or otherwise authenticated to its
reasonable satisfaction.

(b) Each Unit Holder shall be liable to pay the aggregate Purchase Price of the Units subscribed
by him together with applicable Front-end Load and a sum sufficient in the opinion of the
Management Company to cover any Duties and Charges, levies etc. payable in connection
with the purchase of such Units and no further liability shall be imposed on him in respect of
any Units held by him. The Units shall be issued in fractions up to four decimal points, only
against receipt of full payment of the Purchase Price and any payable Duties and Charges.

(c) In addition to the fully completed Purchase Form, and Purchase Price, copies of the
documents specified in sub-para (d), (e) and (f) below, shall be delivered at any of the
Authorized Branches of the Distributors or the Management Company.

(d) In case of individual applicants, a photocopy of the Computerized National Identity Card
(CNIC) of the applicant or any other form of identification acceptable to the Management

44
 Company shall be submitted. Other documents as per the options marked in the Purchase
Form shall also be required.
(e) In case of a corporate body, partnership, joint stock company, club, association, registered
society or a trust the following documents shall be required:
(i) Copy of the memorandum and articles of association/charter/bye-laws or rules and
regulations, certified as true copy by the secretary of the applicant entity;
(ii) Copy of the relevant resolution of the board of directors or board of trustees, as the case
may be, approving the investment, certified as true copy by the secretary of the applicant
entity;
(iii) Copy of power of attorney and/or relevant resolution of the board of directors delegating
any of its officer to invest the funds and/or to realize the investment, certified as true copy
by a notary public;
(iv) Copy of latest financials and audited accounts of the applicant entity;
(v) Copy of the CNIC of the partners, directors or trustees, as the case may be;
(vi) Copy of the CNIC of the officer to whom the authority has been delegated, certified as
true copy by a notary public.
(f) In case of existing Unit Holders, if any of the documents have previously been submitted,
fresh submission of documents shall not be required; provided, that the submitted
documents are acceptable to the Management Company and there have been no material
changes in the status of the relevant Unit Holder.
(g) As aforesaid, the Distributor shall be entitled to verify the particulars given in the Purchase
Form. In case of any incorrect information, the application may be rejected.
(h) The applicant shall receive a note confirming the receipt of the application from the
Authorized Branch of the relevant Distributor or the Management Company, where the
Purchase Form is submitted.
(i) Any Purchase Form received after the Cut-off Time shall be transferred to the next
Business Day. The Purchase Price calculated on the next Business Day shall apply to such
purchase request.
(j) If subsequent to receipt of the application by the Distributor, but prior to issue of the Units,
the application is found by the Management Company or the Distributor to be incomplete
or incorrect in any material manner, the Management Company or the Distributor shall
advise the applicant to remove the discrepancy. In the mean while the application shall be
held in abeyance for fifteen (15) days and in the event the discrepancy is not removed in the
said time period, the amount shall be refunded without any profit. However, in the event
Units have been issued and a material discrepancy is discovered subsequent to such
issuance, the Management Company or the Distributor shall advise the applicant in writing
to remove the discrepancy within fifteen (15) days and if the investor, in the opinion of the
Registrar, fails to remove the discrepancy without good cause, the Units shall be redeemed
at the Redemption Price fixed on the date the Units are so redeemed. The Unit Holder shall
not be entitled to any payment beyond the redemption value so determined.
(k) If a Purchase Form duly delivered at or posted to the Authorized Branch of the Management
Company or any Distributor is accompanied by a cheque, bank draft or pay order, the
Purchase Form shall be processed on the same day and the Units applied for shall be issued on

45
 the date that the cheque, bank draft or pay order is realized. In the case of an electronic
payment request, the Units shall be issued on the date that the relevant Bank Account is
credited with the payment.
(l) The Management Company may request the Trustee to make arrangements to accept issue
requests through electronic, IVR (Interactive Voice Response) or other means.
(m) Payment for Units in cash shall not be accepted, except, by those Bank(s) who are also
Distributors of the Fund. In such case the money may be deposited through a specifically
designed paying-in form into a Bank Account in the name of the Fund; provided, that the
Management Company shall under no circumstances directly receive cash exceeding Rupees
Fifty Thousand (50,000/-).
(n) The Management Company may announce special conditions regarding issue of Units in
de-materialized form registered with a recognized depository company.

9.3.10. Joint Application

i. A joint application for purchase of Units can be made by up to four applicants. Such
persons shall be deemed to hold Units on first Holder basis. However, each person shall
sign the Purchase Form and submit a copy of their Computerized National Identity Card
(CNIC) or other identification documents to the satisfaction of the Management
Company.
ii. The first named Unit Holder shall receive all notices and correspondence with respect to
the account, as well as proceeds of any redemption requests, or dividend or fractional
payments. His receipt shall be considered as a valid discharge by the Trustee of its
obligations.
iii. In the event of death of any one of the Joint Unit Holders the survivor or survivors shall
be the only person(s) recognized by the Trustee as having any title to or interest in the
Units held by the joint Unit Holders; provided however, that the Registrar or the Trustee
may at their discretion request the survivors to provide succession certificates or other
such mandate from a court or lawful authority, if they consider necessary.
iv. Where Units are registered in the name of joint Unit Holders and subsequently additional
Units are purchased by the same joint Unit Holders but the application is made in different
order, such additional Units shall be registered under a different account.
v. A body corporate may be registered as a Unit Holder or as one of joint Unit Holders;
provided, that any undertaking provided by such body confirming its eligibility to make
such investment shall be considered as sufficient proof of its eligibility to make such
investment.

9.4. Redemption of Units

9.4.1. Who Can Apply?

All Unit Holders, other than the holders of Restricted Units are eligible to redeem their respective
Units. Holders of Restricted Units shall be eligible to redeem such Units after expiry of the two
year period from the date of close of the Initial Period. No Units shall be redeemed during the
Initial Period.

46
9.4.2. Redemption Application Procedure

i. The Trustee shall at any time during the life of the Trust, on the instructions of the
Management Company, authorize redemption of Units out of the Fund Property through the
Distributors and/or Investment Facilitators and directly through the Management Company;
provided, that the redemption distribution due to the Unit Holder(s) may be paid by a crossed
cheque, demand draft or pay order, subject to the Regulations.

ii. An application for redemption of Units shall be made by completing the prescribed
Redemption Form, appended to this Offering Document as Annexure “C”, and the submitting
the same at the Authorized Branch(es) of the Distributors or the offices or branches of the
Management Company, on a Business Day, before the Cut-off Time, as listed in Annexure
“A” to this Offering Document. The Redemption Form may be retained by the Distributors
and a copy may also be supplied to the Registrar, if so required by the Management Company.
No person shall be entitled to redeem only part of the Units comprised in a Certificate;
provided however, in case where a Certificate is not issued any number of Units may be
redeemed by the Unit Holder(s) thereof. The Redemption Form shall be accompanied by the
relevant Certificate, if issued, duly endorsed on the reverse. In case of an application for
redemption of Units by joint Unit Holders, such application shall be signed by all the joint
Unit Holders as per their specimen signatures provided in the Register. The Management
Company may make arrangements to accept redemption requests through electronic, IVR
(Interactive Voice Response) or other means.

iii. The Trustee may, on the instruction of Management Company, dispense with the production
of any Certificate that has been lost, stolen or destroyed, upon compliance by the Unit
Holder(s) with the like requirements to those arising in the case of an application by him for
the replacement thereof.

iv. The Redemption Price at which Units shall be redeemed shall be fixed by the Management
Company on a daily basis in accordance with the Rules, Regulations and the Deed.

v. The amount payable on redemption shall be paid to the Unit Holder or in case of joint Unit
Holders, to the first named joint Unit Holder by dispatching a crossed cheque, demand draft or
pay order for the amount to the registered address of the Unit Holder or through other means
and such payments shall be subject to the Rules and Regulations; provided that, the
redemption amount may be paid to an authorized representative of the Unit Holder upon
production of an authority letter and related documentation to the satisfaction of the Trustee.

vi. The receipt of the Unit Holder or any authorized representative for any moneys payable in
respect of the Units shall be a good discharge to the Trustee and if several persons are
registered as joint Unit Holders, the receipt of payment by the first Unit Holder shall be a
good discharge from all the joint Unit Holders.

vii. The Management Company may make arrangements through branches of Banks to facilitate
redemption of Units of the Scheme or may appoint Investment Facilitators for this purpose.

viii. An application for redemption of Units shall be received at the Authorized Branches of the
Distributor(s), as listed in Annexure “A” of this Offering Document, on all Business Days
prior to the Cut-off Time. Where redemption requests on any one Business Day exceed ten
(10) percent of the total number of Units outstanding, such redemption requests may be
deferred in accordance with the procedure elaborated in clause 9.7.3.

47
 ix. The Distributor shall verify the particulars given in the Redemption Form and documents
submitted therewith. The signature of any Unit Holder or joint Unit Holder to any document
required to be signed by him under or in connection with the application for redemption of
Units may be verified by the Registrar, a Broker or other responsible person or otherwise
authenticated to the reasonable of the Distribution Company. In case of submission of
electronic redemption requests, the Unit Holder’s user ID and password shall authenticate his
identity.

x. A redemption request shall be deemed to have been made in accordance with the provisions of
the Offering Document, if such document prescribes automatic redemption under certain
circumstances.

xi. The maximum interval between the receipt of a properly documented request for redemption
of Units and payment of aggregate Redemption Price to such Unit Holders(s) shall be six (06)
Business Days, unless redemption has been suspended.

xii. The Management Company shall not specifically use flipping mechanism (i.e. redemption and
re-issuance of Units to the same Unit Holders based on different NAV’s without cash
settlement).

xiii. No netting off transactions (adjustment of assets of the Scheme against the investment of Unit
Holders) shall be allowed with in the Scheme.

xiv. The Management Company and the Trustee, on behalf of the Fund, shall not at any time
rollover the investments during such period wherein issuance of redemption proceeds to the
Unit Holder(s) is suspended pursuant to the provisions of the Regulations and the Constitutive
Documents.

xv. The Management Company shall provide all redemption requests duly timed, dated and
stamped to the Trustee within twenty four (24) hours of receipt of any such request.

9.4.3. Partial Redemption

Partial redemption of Units covered by a single certificate is not permitted.

9.4.4. Suspension of Issue or Redemption of Units

The Management Company may during extraordinary circumstances mentioned in clauses 9.7.1
and 9.7.2, suspend the issue or redemption of Units.
9.4.5. Payment against Redemption not to be made to any intermediary.
Subject to the provisions of the Constitutive Documents, payment shall be made only to the
respective Unit Holder or his authorized representative and no payment shall be made to any
intermediary. In case of joint Unit Holders, payment shall be made to the Unit Holder, named first
in the Register.

9.5. Transfer of Units

9.5.1 Transfer Application Procedure
(a) Every Unit Holder shall be entitled to transfer the Units held by him by completing the
Transfer Form appended to this Offering Document as Annexure “C”. The Transfer Form
shall be signed by both the transferor and the transferee and the transferor shall be deemed to

48
 remain the Unit Holder of the Units transferred until the name of the transferee is entered in
the Register in respect thereof.
(b) Any person becoming entitled to a Unit in consequence of the death or bankruptcy of any sole
Unit Holder or of the survivor of Joint Unit Holders may, subject as hereinafter provided,
upon producing such evidence as to his title as the Trustee shall think sufficient, either be
registered himself as Unit Holder of such Unit upon giving the Trustee/Distributor such notice
in writing of his desire or transfer such Unit to some other person. All the limitations,
restrictions and provisions of the Deed relating to transfer shall be applicable to any such
notice or transfer as if the death or bankruptcy had not occurred and such notice or transfer
was a transfer executed by the Unit Holders; provided, however, the Trustee may at its
discretion request the survivors to provide succession certificates or other such mandate from
a court or lawful authority, if it considers necessary.
(c) The Transfer Form shall be duly completed in all respects including affixation of transfer
stamps of the requisite value, if applicable. Where Certificates have been issued the Trustee
may, with the prior approval of the Management Company, dispense with the production of
any Certificate where the Certificate has been lost, stolen or destroyed subject to compliance
by the transferor with the like requirements to those in the case of an application for the
replacement of Certificates as provided in the Deed or as required by the Registrar.
(d) The Transfer Form shall be submitted to the Authorized Branches of the Distributor(s), as
listed in Annexure “A” to this Offering Document, Registrar or Management Company prior
to the Cut-off Time, on Subscription Days.
(e) A Unit Holder intending to transfer Units to another person/institution shall be subject to
the same Front-end Load or Back-end Load, as the case may be, applicable to each Unit
pursuant to the provisions of the Constitutive Documents, and any other charges not
exceeding one percent of the value of Units being transferred at the date of request.
However, such load shall not be payable by the successors in case of inheritance or
distribution of the estate of a deceased Unit Holder. Any taxes or duties applicable on the
transfer and transmission shall however be payable by the transferee.
(f) The Management Company may make arrangements to accept transfer requests through
electronic, IVR (Interactive Voice Response) or other means.

9.5.2 Partial Transfer

Partial transfer of Units subject to conditions is permitted. However, partial transfer of Units
covered by a single Certificate is not permitted. A Certificate shall be transferable only in its
entirety. Unit Holders may apply for the splitting of the Certificate before applying for a
transfer. The Management Company may impose the necessary charges at its discretion for
such a service.

9.6. Procedure for Pledge/Lien/Charge of Units

9.8.3 Who Can Apply?

All Unit Holders or those who have purchased Fund Units as per clause 9.3 and all Unit
Holders in whose favor Units have been transferred pursuant to clause 9.5 above are eligible to
apply for pledge/lien/charge of Units if they so desire. Such pledge/ lien/ charge can be made
via the pledge/lien form, appended] to this Offering Document as Annexure “C”. This form
may also be obtained from the Management Company, Distributors or Investment Facilitators
or on the Management Company's web site.

49
9.8.3 Pledge/Lien/Charge Application Procedure

(a) Any Unit Holder/joint Unit Holder(s) may pledge or place a charge/lien on all or any of
his/their Units as security for any debt to any third party and request the Transfer Agent to
record a pledge/charge/lien on all or any of his/their Units in favor of any third party, legally
entitled to invest in such Units in its own rights. The Registrar shall take a note of the
pledge/charge/lien in his record, whether the Certificate has been issued or not, provided
sufficient evidence of pledge to the satisfaction of the Management Company, Trustee and
the Registrar along with a joint request from the Unit Holder and the pledge is submitted
physically or electronically on the standard application form, as given in this Offering
Document. None of these parties, the Trustee, Management Company or Registrar shall be
liable for ensuring the validity of any such pledge/charge/lien. The disbursement of any loan
against the constitution of such pledge/charge/lien shall be at the entire discretion of the
lender, and the Trustee, Management Company and Registrar shall not be responsible in this
matter.

(b) Save any legal bar or court order requiring otherwise, any dividends that are declared on the
pledged Units shall be made to the order of the Unit Holder in accordance with the relevant
provisions of the Deed. However, any additional Bonus Units that the pledge Units are
entitled to shall automatically be marked under the lien of the lien holder and in the event the
pledged Units are redeemed for any reason whatsoever, the proceeds shall be paid to the
order of the lien holder.

(c) Where lien/pledge/charge is recorded in the Register, the Management Company and Trustee
may concur to make payment to the pledge, if a request is received from the pledge or if a
joint request is received from the Unit Holder and the pledge or to any party marked through
an order of a competent jurisdiction and on receipt of such indemnification as the
Management Company or Trustee may require.

(d) The lien once registered shall be removed by the authority of the party in whose favour the
lien has been registered or through an order of a competent court and the Trustee,
Management Company and Registrar shall not be liable for ensuring the validity of any such
pledge/charge/lien.

9.7. Dealing, Suspension and deferral of dealing

9.8.3 Temporary and permanent change in the method of dealing

i. A temporary change shall only be made:

i. In exceptional circumstances, having regard to the interest of Unit Holders;

ii. If the possibility of a change and the circumstances in which it can be made have
been fully disclosed in this Offering Document with the approval of the Trustee. The
Management Company may request the Trustee to approve a temporary change in
the method of dealing in Units and such approval shall not be withheld unreasonably.

ii. A permanent change in the method of dealing shall be made in such manner as prescribed
by the Regulations.

50
9.8.3 Suspension of Issue or Redemption of Units

i. The Management Company may upon information to the Trustee and the Commission and in
accordance with the Regulations, suspend the issue or redemption of Units under the
following circumstances:

(a) any period when the Stock Exchange on which any of the Investment for the time being
is listed or dealt in is closed or when dealings in such Investment are restricted or
suspended;

(b) the existence of extraordinary circumstances including closure of one or more Banks in
which the Fund’s Bank Accounts are maintained;

(c) the existence of a state of affairs, which in the opinion of the Management Company,
constitutes an emergency as a result of which disposal of any Investment shall not be
reasonably practicable or might seriously prejudice the interests of the Scheme or of the
Unit Holders;

(d) any breakdown in the means of communication normally employed in determining the
price of any Investment or the current price thereof on any Stock Exchange or when for
any reason the price of any such Investment cannot by promptly and accurately
ascertained;

(e) any period when remittance of money which will or may be involved in the realization
of such investment or in the payment for such investment cannot in the opinion of the
Management Company be carried out in reasonable time; or

(f) if the Management Company is of the view that it shall be detrimental to the remaining
Unit Holders to redeem or continue to redeem Units at a price ascertained on the basis
of the Net Asset Value.

ii. The Management Company may, with the approval of its Board of Directors, announce a
suspension or deferral of redemption and such a measure shall be taken to protect the interest
of the Unit Holders in the event of extraordinary circumstances as mentioned in clause
9.7.2.1 or in the event that redemption requests accumulate in excess of ten (10) per cent of
the Units in issue. In the event of a large number of redemption requests accumulating, the
requests may be processed under the queue system enumerated under clause 9.7.3 and under
extreme circumstances the Management Company may, in accordance with the Regulations,
decide to wind up the Fund.

iii. The suspension shall take effect forthwith upon the declaration thereof by the Management
Company and such suspension or the queue system shall end on the day following the first
Business Day on which the conditions giving rise to the suspension or queue system shall in
the opinion of the Management Company have ceased to exist and no other condition under
which suspension or queue system is authorized under the Deed exists. In case of suspension
and invoking of a queue system or termination of such suspension or queue system, the
Management Company shall immediately notify the Commission and the Trustee and
publish the same immediately in at least two widely circulated newspapers in Pakistan, one
in English and the other in Urdu; provided however, such suspension may not affect existing
subscribers to any Administrative Plans that may be offered by the Management Company
under different administrative arrangements, the issue of Bonus Units as a result of profit

51
 distribution or the option to receive dividends in the form of Bonus Units. The Management
Company shall announce the details of exemptions at the time a suspension of fresh issue is
announced. The Management Company shall immediately notify the Commission and the
Trustee if fresh issue of Units is suspended and shall also have the fact published,
immediately following such decision, in the newspapers in which the Fund’s prices are
normally published.

9.8.3 Queue System

i. In the event redemption requests on any Business Day exceed ten (10) percent of the Units in
issue, the Management Company may invoke a queue system whereby requests for
redemption shall be processed on a first-come-first-served basis for up to ten (10) percent of
the Units in issue.

ii. The Management Company shall proceed to sell adequate assets of the Fund and/or arrange
borrowing as it deems fit in the best interest of the Unit Holders and shall determine the
Redemption Price to be applied to the redemption requests based on such action.

iii. The requests in excess of the ten (10) percent shall be treated as redemption requests
qualifying for being processed on the next Business Day at the price to be determined for
such redemption requests.

iv. If the carried over requests and the fresh requests received on the next Business Day still
exceed ten (10) percent of the Units in issue, these shall once again be treated on first-come-
first-served basis and the process for generating liquidity and determining the Redemption
Price shall be repeated and such procedure shall continue till such time that the outstanding
redemption requests come down to a level below ten (10) percent of the Units then in issue.

v. The Management Company shall provide all redemption requests duly timed, dated and
stamped to the Trustee within twenty four (24) hours of receipt of any such request following
the queue system.

9.8.3 Winding up in view of major redemptions

i. In the event the Management Company is of the view that the quantum of redemption
requests that have built up shall result in the Fund being run down to an unmanageable
level or it is of the view that the sell-off of assets is likely to result in a significant loss in
value for the Unit Holders who are not redeeming, it may announce winding up of the Fund
in accordance with the Rules and Regulations. In such an event, the queue system, if
already invoked, shall cease to apply and all Unit Holders shall be paid after selling the
assets and determining the final Redemption Price. However, interim distributions of the
proceeds may be made if the Management Company deems it feasible.

9.8. Frequency of Valuation, Dealing and Mode of the Price Announcement

9.8.1. For the Classes of Units and the Initial Offer Price, please refer to clause 9.2 above.

9.8.2. Subsequent to the Initial Period, the Management Company shall announce the Offer Price and
Redemption Price daily, calculated on the basis of the NAV after adjusting the applicable load,
Transaction Costs and Duties and Charges as are described herein and pursuant to the Regulations.

52
9.8.3 Determination of Purchase Price

i. During the Initial Period, Units shall be issued at Par Value. After the Initial Period, the
Purchase Price shall be calculated and announced by the Management Company on each
Business Day, pursuant to the Regulations and clause 9.8.3.2 of this Offering Document.

ii. The Purchase Price shall be equal to the sum of:

(a) The Net Asset Value as of the close of the Business Day on which the completed and
correctly filled Purchase Form is received by the Distributor or the Management
Company prior to the Cut-off Time, with such Net Asset Value being announced by
the Management Company latest by such time as specified by the Commission;

(b) Any Front-end Load;

(c) Such amount as the Management Company may consider an appropriate provision
for Duties and Charges and other levies and taxes;

(d) Such amount as the Management Company may consider an appropriate provision
for Transaction Costs.

Such sum shall be adjusted upwards to the nearest four decimal places.

The Offer Price determined at the end of the Business Day for Units of the Fund shall apply to all
Purchase Form complete in all respects including payment, received by the Management Company and
Authorized Distributors during business hours on that Business Day before the cut off time. The
Management Company may announce different Administrative Plans under different administrative
arrangements with differing levels of Front-end Load as provided in the Supplementary Offering
Document. Consequently, the Offer Price may differ for Units issued under different Administrative Plans.

iii. In the event that the amount paid as provision for payment of Duties and Charges is
insufficient to pay in full such Duties and Charges, the Management Company shall be
liable for the payment in full of the amount of such Duties and Charges in excess of
such provisions (except where such excess arises from any Duties and Charges levied
with retrospective effect after the date of payment, in which case such excess shall be
recovered from the Fund Property).

iv. In the event that the amount paid as provision for payment of Duties and Charges
exceeds the relevant amount of Duties and Charges, the Trustee shall refund such
excess amount to the relevant Unit Holders along with the next distribution of Units to
the Unit Holders or if instructed by the Management Company, at any time earlier.

v. The Purchase Price determined by the Management Company shall be made available
to the public at the office and Authorized Branch(es) of the Distributors and may also,
in the discretion of the Management Company, be published in at least two newspaper,
one in English and one in Urdu, widely circulated in Pakistan and made available on the
website of the Management Company.

9.8.3 Determination of Redemption Price

i. During the Initial Period the Units shall not be redeemed.

ii. After the Initial Period, the Redemption Price shall be equal to the Net Asset Value as of

53
 the close of the Business Day on which a correctly and properly filled Redemption Form
is received prior to the Cut-off Time, with such Net Asset Value being announced by the
Management Company latest by such time as specified by the Commission, less:

(a) Any Back-end Load;

(b) Such amount as the Management Company may consider an appropriate provision for
Duties and Charges and other levies and taxes; and
(c) Such amount as the Management Company may consider an appropriate provision for
Transaction Costs.

Such amount shall be adjusted downwards to the nearest two decimal places.

The Redemption Price determined at the end of the Business Day for Units of the Fund shall
apply to all Redemption Form complete in all respects including payment, received by the
Management Company and Authorized Distributors during business hours on that Business Day
before the cut off time. The Management Company may announce different Administrative
Plans under distinct administrative arrangements with differing levels of Back-end Load which
may also vary according to other criteria as provided in this Offering Document or the
Supplementary Offering Document. Consequently, the Redemption Price may differ for Units
issued under different Administrative Plans.

iii. 9.8.4.3 In the event that the amount paid as provision for payment of Duties and
Charges is insufficient to pay in full such Duties and Charges, the Management Company
shall be liable for the payment in full of the amount of such Duties and Charges in excess
of such provisions (except where such excess arises from any Duties and Charges levied
with retrospective effect after the date of payment, in which case such excess shall be
recovered from the Fund Property).
iv. In the event that the provision for payment of Duties and Charges exceeds the relevant
amount of Duties and Charges, the Trustee shall refund such excess amount to the
relevant Unit Holders along with the next distribution of Units to the Unit Holders, or if
instructed by the Management Company, at any time earlier.
v. The Redemption Price determined by the Management Company shall be made available
to the public at the office and Authorized Branch(es) of the Distributors and may also in
the discretion of the Management Company, be published in at least one newspaper, either
English or Urdu, widely circulated in Pakistan and made available on the website of the
Management Company.

9.9. Purchase and Redemption of Units outside Pakistan

9.8.3 Subject to foreign exchange control, the Rules, Regulations and other applicable law, in the event
of arrangements being made by the Management Company for the purchase of Units to persons not
resident in Pakistan or for delivery in any country outside Pakistan, the price at which such Units
may be issued may, at the discretion of the Management Company, include in addition to the
Purchase Price as hereinbefore, a further amount sufficient to cover any exchange risk insurance,
any additional stamp duty or taxation, whether national, local or otherwise leviable in that country in
respect of such issue or of the delivery or issue of Certificates, or any additional costs relating to the
delivery of Certificates or the remittance of money to Pakistan or any other cost in general incurred
in providing this facility.

54
9.8.3 In the event that the Redemption Price of Units is paid in any country outside Pakistan, the price at
which such Units may be redeemed may, in the discretion of the Management Company, include as
a deduction to the Redemption Price as stated hereinbefore; provided, a further amount sufficient to
cover any currency exchange fluctuation or exchange risk insurance and any additional stamp duty
or taxation whether national, local or otherwise leviable in that country in respect of such payment
or redemption or any Bank or other charges incurred in arranging the payment or any other cost in
general incurred in providing this facility; provided however, neither the Management Company,
nor the Trustee shall give any assurance or make any representation that remittance shall be allowed
by the SBP at the relevant time.
9.8.3 The currency of transaction of the Units is Pakistani Rupee and the Management Company, Trustee
or any Distributor are not obliged to transact the purchase or redemption of the Units in any other
currency and shall not be held liable, save as may be specifically undertaken by the Management
Company, for receipt or payment in any other currency or for any obligations arising therefrom.
9.8.3 The Management Company shall appoint one or more scheduled Bank as the Authorized Dealer(s)
to manage the offer and redemption of Units from outside Pakistan in foreign currency under the
provisions of the foreign exchange laws of Pakistan, guidelines, restrictions, if any, the regulations
of SBP and the Rules and Regulations of the Commission.
9.8.3 Payments made in foreign currency for purchase of Units shall be converted into Pakistani Rupees
using the closing spot rates declared by SBP prevailing on the Business Day of the receipt of the
funds from abroad through normal banking channels or from a foreign currency account maintained
locally in accordance with the foreign exchange laws of Pakistan and any conversion cost shall be
deducted from the payment before the actual number of Units are calculated against such amount
and issued to the applicant.
9.8.3 At the option of the Management Company, subject to the approval of the Commission and SBP,
payments made in foreign currency for Units purchased may directly be made part of Fund Property
without conversion into Pakistani Rupees after deduction of the relevant Duties and Charges,
Transaction Costs and applicable Front-end Load or Back-end Load. The Units issued shall be
denominated in Pakistani Rupees using the closing spot rates declared by SBP at the issue date of
the Units.
9.8.3 Payments to be made in foreign currency on redemption of Units shall be converted from Pakistani
Rupees on the Business Day of payment through the Authorized Dealer using the closing spot rates
declared by SBP and any conversion cost shall be deducted from the payment to be made. Payment
shall be made in the local foreign currency account of such Unit Holder, if any. In case such Unit
Holder does not hold a foreign currency account in Pakistan, the Unit Holder shall be liable to
arrange for remittances through his own local custodian or authorized dealer and neither the
Management Company, nor the Trustee, Registrar or Distributor shall be responsible for arranging
the remittances of encashment proceeds of any Units.
9.8.3 At the option of the Management Company, subject to the approval of the Commission and SBP,
payments to be made in foreign currency for redemption of Units may directly be paid from a
foreign currency denominated bank account that is part of the Fund Property after deduction of the
relevant Duties and Charges, Transaction Costs and applicable Front-end Load or Back-end Load.
As the Units redeemed shall be denominated in Pakistani Rupees, the conversion rate shall be the
closing spot rates declared by SBP at the date of redemption of the Units.
9.8.3 The Management Company shall make arrangements from time to time for receiving account
opening forms, investment request forms and payments from outside Pakistan and shall disclose
these arrangements through its website, Distributors and Investment Facilitators outside Pakistan.

55
10. DISTRIBUTION POLICY AND DATE OF DISTRIBUTION

10.1. Distribution Policy

10.1.1 The Management Company shall decide as soon as possible but not later than forty five days
after the Accounting Date whether to distribute profits among Unit Holders, wholly or in part,
either in the form of Bonus Units or cash dividend, if any, as the case may be, as opted by the
Unit Holders at the time of purchase and shall advise the Trustee of the amount of such
distribution per Unit. In case the investor does not exercise such option at the time of purchase,
the Management Company shall, subject to the relevant Unit Holder’s consent, distribute Bonus
Units or cash dividend to such Unit Holder. The Management Company shall be entitled to
issue the distributable income on a monthly, quarterly, half-yearly or annual basis; provided,
that the distribution policy, in terms of the frequency of distribution, shall be employed
uniformly by the Management Company with respect to all Unit Holders.

10.1.2 In case of cash dividend, on each distribution date, the Management Company shall instruct the
Trustee to transfer such amount of cash as required to effect such distribution to the Distribution
Account. The amount standing to the credit of the Distribution Account shall not, for any
purposes of the Deed, be treated as part of the Fund Property but shall be held by the Trustee
upon trust to distribute as herein provided. However, any amount standing to the credit of the
Distribution Account being profit shall be treated as Fund Property and shall be transferred to
the Bank Account of the Scheme.

10.1.3 After the fixation of the rate of distribution per Unit, distribution payments shall be made by the
Trustee through transfer to the Unit Holders designated bank accounts as mentioned in the
Purchase Form or such other forms as prescribed by the Management Company from time to
time or through any other mode of payment and such payment shall be subject to the Rules and
Regulations; provided that, the Management Company may pay the distribution amount to the
Unit Holder’s authorized representative as stated in the purchase form or on provision of an
authority letter and related documentation to the satisfaction of the Trustee by such authorized
representative.

10.1.4 Before making any distribution payment (such as Bonus Units, cash dividend etc.) in respect of
a Unit, the Trustee or the Management Company may make such deductions as may be required
by law in respect of any Zakat, income tax or other taxes, charges or assessments whatsoever
and issue to the Unit Holders the certificate in respect of such deductions in the prescribed form
or in a form approved by the concerned authorities.

10.1.5 The Management Company shall give the Unit Holders the option at the time of opening of a
Unit Holder account, via the Purchase Form, to receive Bonus Units instead of cash dividend,
which shall be recorded in the Register. The Unit Holders shall be entitled to change such
option. These options shall be available according to the different type of Units or
Administrative Plans that may be offered by the Scheme.

10.1.6 In case of distribution in the form of Bonus Units, on each distribution date the Management
Company shall determine the amount available for distribution as Bonus Units and inform the
Trustee of the same.

10.1.7 After the fixation of rate of bonus entitlement per Unit, the Management Company shall instruct
the Registrar to credit the respective Unit Holder’s account with the designated number of Units
calculated on the basis of the rate of distribution determined above against the number of Units
held by them on the date of closure of the Register.

56
10.1.8 The Management Company shall give the Unit Holder(s) the option at the time of opening of
the Unit Holder account, via the Purchase Form, to encash Bonus Units, which shall be recorded
in the Register. In such case the Bonus Units issued to the credit of such Unit Holder(s) shall be
redeemed at the ex-dividend Net Asset Value as calculated on the Business Day immediately
preceding the first day of book closure. These options shall be available in view of different
type of Units or Administrative Plans that shall be offered by the Scheme.

10.1.9 The Unit Holders shall be entitled to change such options in accordance with the provisions of
this Offering Document.

10.1.10 Where Units are placed under pledge/lien the payment of payouts shall be made in accordance
with clause 9.6 of this Offering Document.

10.2. Determination of Distributable Income

10.2.1 The amount available for distribution in respect of any Accounting Period shall be determined
by the Management Company and shall be the sum total of:

(a) The total income earned on the Fund Property during such Accounting Period including all
amounts received in respect of dividend, markup, profit, etc.;
(b) Net realized appreciation as set out in sub-clause 10.2.2, from which shall be deducted
expenses as set out in sub-clause 10.2.3 and such other adjustments as the Management
Company may determine subject to the Rules, Regulations and any other applicable law.

Provided that such amount, whether distributed by way of cash dividend or issuance of Bonus
Units, shall not be less than ninety (90) percent, or such other percentage as specified by the
Commission, of the accounting income of the Scheme received or derived from sources other
than unrealized capital gains as reduced by such expenses as are chargeable to the Scheme
pursuant to the Regulations. The Fund shall distribute 90% of the amount available for
distribution or any other payout ratio, as Bonus Units or cash dividends, in order to avail tax
exemption or any other benefits in the interest of the Unit Holder.

10.2.2 All the receipts deemed by the Management Company to be in the nature of capital accruing
from Investments shall not be regarded as available for distribution but shall be retained as part
of the Fund Property; provided, that such amounts out of the sale proceeds of the Investments
and all other receipts as deemed by the Management Company to be in the nature of the net
realized appreciation may be distributable to the Unit Holders by the Trustee upon instructions
of the Management Company and shall thereafter cease to form part of the Fund Property once
transferred to the Distribution Account.

10.2.3 The income qualifying for distribution in respect of the relevant period shall be ascertained by
deducting:

(a) Remuneration of Custodian;

(b) Listing fee payable to the Stock Exchange including renewals;
(c) Charges and levies of the Stock Exchange, national clearing and central depository company;
(d) Rating fee for the Scheme payable to the approved rating agency;
(e) Auditor’s fees and out of pocket expenses as billed by them;
(f) Any fees payable to the Commission;

57
 (g) Formation cost as per clause 11.3.4 of this Offering Document;
(h) Brokerage and Transaction Costs related to investing and disinvesting of the Fund Property;
(i) Expenses incurred by the Trustee in effecting registration of all registerable assets in the
name of the Trustee;
(j) Legal and related costs incurred in protecting or enhancing the interests of the Unit Holders;
(k) Bank charges and borrowing/financial costs; provided, that the charges payable to any Bank
or Financial Institution against borrowings on account of the Trust as permissible under clause
7.5 above, shall not be higher than the normal prevailing Bank charges or market rates;
(l) Any printing costs and related expenses for issuing the Scheme’s quarterly, half yearly and
annual reports etc;
(m) Taxes, fees, duties and other charges applicable to the Scheme on its income or its
properties, including, taxes, fees, duties and other charges levied by foreign jurisdiction on
Investments outside Pakistan; and
(n) Any other expense or charge as may be permitted by the Commission.

10.3. Reinvestment of Dividend

(a) Depending upon the type of Units, Unit Holders may opt to receive the amount equivalent to
their share of the annual cash distribution in the form of Bonus Units. In such event, the
Management Company shall at the end of the financial year (or the relevant period in the event
of an interim distribution) cause to issue such number of Bonus Units to the Unit Holder that
approximately equates the value of the cash dividend for the period. The issue price shall be
determined on the basis of the NAV at the distribution date after appropriation of the
distribution but without any charge of the Front-end Load normally deducted from the Offer
Price. The issuance of the Bonus Units shall be made, net of any taxes, Duties and Charges that
the Management Company or the Trustee is obliged to recover from the Unit Holder.
(b) A Unit Holder may in writing at the time of opening of an account in the Unit Holder Register
during the first purchase of Units or may by completing any other form as prescribed by the
Management Company at a later date instruct the Management Company to reinvest the future
dividends to which he shall be entitled into Units of the Fund, namely, the Income Units or
Future Growth Units.
(c) The Purchase Price for the Units to be issued under sub-clause (b) above shall be the NAV at
the distribution date after the adjustment of the announced dividend.

10.4. Bonus Units

In case of distribution in the form of Bonus Units, on each distribution date, the Management
Company shall determine the amount available for distribution as Bonus Units and inform the
Trustee of the same. Such Units shall be added to the holding of the Unit Holders within the
book closure period. A Unit Holder may receive the cash value of the Bonus Units; provided,
that such Unit Holder opts for such an arrangement at the time of applying for the Units or
requests the Registrar by completing any other form as prescribed by the Management Company
prior to the dividend declaration for any relevant period. In such case the Bonus Units issued to
the credit of such Unit Holder(s) shall be redeemed at the ex-dividend NAV as calculated on the
Business Day immediately preceding the first day of the book closure announced for such
purpose and proceeds shall be credited in accordance with the normal procedure already detailed
above for Redemption of Units. This applies to Units issued under the Future Growth UnitsPlan.

58
11. FEES AND CHARGES

11.1. Fees and Charges Payable by an Investor

The Purchase Price includes Front-end Load of a maximum of 5% of the Net Asset Value. The
Purchase Price applicable to Bonus Units issued by way of dividend distribution or issue of Units in
lieu of cash distribution shall not include any Front-end Load. Transfer of Units from one owner to
another shall be subject to a processing charge of an amount not exceeding 1% of the Net Asset
Value at the date the request is lodged before the Cut-off Time on the Business Day, to the
Authorized Branches of the Distributor or Management Company, which shall be recovered from
the transferee. These taxes, charges or duties may be recovered by redemption of the Units of the
relevant Unit Holder equivalent to such taxes, charges or duties at the time of the transfer or may be
charged separately. However, the processing charge shall not be payable by successors in the case of
inheritance or distribution of the estate of a deceased Unit Holder. The Management Company may
also issue Units without any sales and processing charge under different Administrative Plans.

11.2. Allocation of Front-end Load

11.2.1 The remuneration of the Distributors and Investment Facilitators for the sale of Units with Front-
end Load may be paid, as decided by the Management Company, (i) from any Front-end Load
received, by the Trustee, (ii) by the Management Company when the Trustee pays the Front-end
Load to the Management Company for onward distribution to the Distributors and Investment
Facilitators, or (iii) by the Management Company from its management fee, and no charges
shall be made against the Fund Property or the Distribution Account in this respect. If the Front-
end Load received by the Trustee is insufficient to pay the remuneration of the Distributors and
Investment Facilitators, the Management Company shall disburse the amount necessary to pay
such remuneration in full from its management fee.

11.2.2 Payment of Front-end Load, if any, may be made to the Management Company by the Trustee in
accordance with the instructions of the Management Company normally on monthly basis in
arrears within thirty days of the end calendar month or in some other frequency on mutually
agreed basis.

11.2.3 A Distributor or Investment Facilitator located outside Pakistan may, if so authorized by the
Management Company, (i) retain such portion of the Front-end Load as is authorized by the
Management Company and transfer the net amount to the Trustee, or (ii) be remunerated by the
Management Company from its management fee, subject to the Rules, Regulations and any
other law for the time being in force.

11.3. Fees and Charges Payable by the Fund

11.3.1. Remuneration of the Management Company and Initial Charges

i. All expenses incurred in connection with the incorporation, registration or establishment of the
Scheme shall be borne by the Management Company and reimbursable, subject to the audit of
expenses by the Scheme, over a period of not less than five years, within the maturity date of
the Scheme or any other time period as may be specified by the Commission. Any cost
associated with sales, marketing and advertisement shall not be charged to the Scheme.

ii. Notwithstanding the provisions of the Deed, the Management Company shall be entitled to
remuneration in accordance with the Regulations.

59
 iii. The Management Company shall be entitled to be paid monthly in arrears, accrued
remuneration duly verified by the Trustee, of an amount not exceeding (i) three (3) percent of
the average annual Net Assets of the Scheme for the first five years, and (ii) thereafter two (2)
percent of the average annual Net Assets, as defined in the Regulations; provided, that the
Management Company may charge performance based or fixed fee or the combination of both
which shall not exceed the limits prescribed in the Regulations and such fee structure shall be
disclosed to the Unit Holders in advance.

iv. The remuneration of the Management Company shall begin to accrue from the date of close of
Initial Period. In respect of any period other than an Accounting Period, such remuneration shall
be prorated on the basis of the actual number of days for which such remuneration has accrued
in proportion to the total number of days accrued in the relevant Accounting Period.

v. The remuneration due to the Management Company shall be paid within thirty (30) calendar
days after the end of each month.

vi. In consideration of the foregoing and save as aforesaid, the Management Company shall be
responsible for the payment of all expenses incurred by the Management Company from time to
time in connection with its responsibilities as the management company of the Trust. The
Management Company shall not make any charge against the Unit Holders, the Fund Property
or the Distribution Account for its services or for its expenses, except such expenses as are
expressly authorized under the Rules, Regulations and the Deed to be payable out of Fund
Property.

vii. The Management Company shall bear all expenditures in respect of its secretarial and office
space and professional management, including all accounting and administrative services
provided in accordance with the provisions of the Deed.

viii. The Management Company may, in its sole discretion, share the management fee accruing to it
with the Distributors.

11.3.2. Remuneration of the Trustee

i. The Trustee shall be entitled to a monthly remuneration out of the Fund Property based on
an annual tariff of charges annexed hereto as Annexure “D”, which shall be applied to the
average daily Net Assets during such calendar month. Any change in the remuneration of
the Trustee shall be determined by the mutual consent of the Trustee and the Management
Company; provided, that any increase in the remuneration of the Trustee shall be subject
to the approval of the Commission.

ii. The remuneration shall begin to accrue from the date of close of Initial Period. For any
period other than a full calendar month, such remuneration will be prorated on the basis of
the actual number of days for which such remuneration has accrued in proportion to the
total number of days accrued in the relevant Accounting Period.

iii. Such remuneration shall be paid to the Trustee in arrears within thirty (30) Business Days
after the end of each calendar month.

iv. In consideration of the foregoing and save as aforesaid and as provided in Annexure “D”
the Trustee shall be responsible for the payment of all expenses incurred by the Trustee
from time to time in connection with its duties as trustee of the Trust. The Trustee shall
not make any charge against the Unit Holders, the Fund Property or the Redemption

60
 Account for their services or for their expenses, except such expenses as are expressly
authorized to be paid out of the Fund Property under the provisions of the Rules,
Regulations and the Constitutive Documents.

v. The Trustee shall bear all expenditures in respect of its secretarial and office space and
professional management, including all accounting and administrative services provided in
accordance with the provisions of the Deed.

vi. Any increase in the remuneration of the Trustee agreed to by the Management Company
shall require the approval of the Commission.

11.3.3. Remuneration of the Custodian

i. The Custodian shall be remunerated on the basis of inflow and outflow of securities as per
the CDC tariff structure which is agreed upon by the Management Company. For the time
being, CDC shall perform the functions of the Custodian.

11.3.4. Amortization of Formation Costs

i. Formation Costs shall be charged to the Fund which are estimated at and shall not exceed
one (1) percent of pre-public offer Investment (Restricted Units and Pre-IPO Units) or
Rupees five million, whichever is lower. Formation Costs shall be amortized over a period
not less than five years. Any cost associated with sales, marketing and advertisement shall
not be charged to the Scheme.

11.3.5. Other Fees and Charges Payable out of the Property of the Scheme

The following fees and charges shall be payable from the Scheme to the Management Company
at actual within thirty days of the incurring of the relevant expense:

(a) Brokerage and Transaction Costs related to investing and disinvesting of the Fund Property;
(b) Remuneration of Custodian;
(c) Legal and related costs incurred in protecting or enhancing the interests of the Fund or the
collective interest of the Unit Holders;
(d) Bank charges and borrowing/financial costs; provided that the charges payable to any bank
or financial institution against borrowings on account of the Trust as permissible under the
terms of the Deed, shall not be higher than the normal prevailing bank charges or normal
market rates;
(e) Auditors’ Fees and expenses and any printing costs and related expenses for issuing the
Fund’s quarterly, half-yearly and annual reports etc;
(f) Listing Fee payable to the Stock Exchange on which Units may be listed including renewals;
(g) Annual fee payable to the Commission under the Rules and Regulations;
(h) Taxes, fees, duties and other charges applicable to the Scheme on its income or its properties,
including taxes, fees, duties, and other charges levied by a foreign jurisdiction or investments
made overseas;
(i) Fees payable to a credit rating agency engaged by the Management Company for rating the
Scheme;

61
 (j) Charges and levies of the Stock Exchange and national clearing and settlement company,
charges of the Commission, charges of CDC, CVT, transfer charges as payable to Banks at
time of transfer of funds to Unit Holders, charges upon payment of dividend or redemption
of Units and other similar levies and charges;
(k) Expenses incurred by the Trustee in affecting registration of all registerable assets in the
name of the Trustee; and
(l) Any other expense or charge as may be allowed by the Commission.

12. TAXATION

12.1. Taxation on the Income of the Fund

The following is a brief description of the Income Tax Ordinance, 2001, applicable in respect of
the Fund. This purpose of this clause is to provide information only and potential investors should
consult their tax advisors regarding their tax liability arising out of investment in the Fund. This
part does not cover tax liability of investors not resident in Pakistan with respect to taxes in their
own jurisdiction.

The information herein below is accurate as of the date of printing of this Offering Document.
The taxability and tax rates are subject to change from time to time, as may be announced by the
Government of Pakistan.

12.1.1. Liability for Income Tax of the Fund

Under the income tax laws of Pakistan, the Fund is regarded as a public company for tax purposes.
The income of the Fund is taxable at the rate applicable to a public company, which is presently as
under:
(a) Dividend income at 5%;
(b) Capital gains arising on sale of securities listed on any stock exchange in Pakistan is exempt
from tax up to June 30, 2010; and
(c) Return from all other sources/instruments are taxable at the rate applicable to a public
company which currently stands at 35%.

12.1.2. Liability for income tax, if 90% of income is paid as dividend

Notwithstanding imposition of tax as stated in clause 12.1.1, the accounting income of the Fund
shall be exempt from tax if not less than 90% of such income, for any Accounting Period, is
distributed as dividend among the Unit Holders. The 90% of the accounting income shall be
calculated after excluding realized and unrealized capital gains. For tax efficiency, the Fund shall
endeavor to distribute at least 90% of the accounting income of the Fund as reduced by realized or
unrealized capital gains.

12.1.3. Withholding Tax

Subject to the income tax laws of Pakistan, all income of the Fund, including but not limited to,
dividend, returns from Authorized Investments or shares shall not be subjected to any withholding
tax.

62
12.1.4. Zakat

The Fund is Sahib-e-Nisab under the Zakat and Ushr Ordinance, 1980.

12.2. Taxation of Unit Holders and Liability to Zakat

12.2.1. Income Tax

Dividend paid to Unit Holders of the Fund shall be subject to income tax according to the present
rates, which may be changed in future:

Rate
Public and Insurance Companies in Pakistan 05%
Any other person, including a non-resident 10%
The portion of dividends paid out of capital gains on sale of listed securities shall not be subject to
income or withholding tax.

12.2.2. Tax Credit

Unit Holders of the Fund shall be entitled to a tax credit in Pakistan under section 62(1) and 62(2)
of the Income Tax Ordinance 2001. The amount on which tax credit shall be allowed shall be the
lower of (a) amount invested, (b) ten percent (10%) of the taxable income of the Unit Holder, and
(c) Rupees three hundred thousand, and shall be calculated by applying the average rate of tax of
the Unit Holder for the tax year. If the Units so acquired are disposed within twelve months, the
amount of the tax payable for the tax year shall be increased by the amount of the credit allowed.
12.2.3. Zakat

Units held by resident Pakistani shareholders (individuals only) shall be subject to Zakat at 2.5%
of the Par value of the Units under Zakat and Ushr Ordinance, 1980, (XVII of 1980), except those
exempted under the said Ordinance. Zakat shall be deducted at source from the dividend amount
or from the redemption proceeds, if Units are redeemed during the Zakat year before payment of
dividend.
The Tax and Zakat information given above is based on the Management Company’s tax advisor’s
interpretation of the law, which to the best of the Management Company’s understanding is
correct but investors are expected to seek independent advice so as to determine the taxability
arising from their investments in the Fund. Further, tax and zakat laws including rates of taxation
and withholding tax are subject to amendment and relaxations from time to time. Any such
amendments or relaxations shall be deemed to have been incorporated herein without the need to
amend this Offering Document.

63
13. REPORTS AND ACCOUNTS

13.1. Accounting Date and Accounting Period of the Fund

13.1.1 The Accounting Period shall commence on the 1st day of July and end on the 30th day of June of
the succeeding calendar year.

13.1.2 The Accounting Date shall be the 30th day of June in each year and any interim dates at which
the financial statements of the Fund are drawn up; provided that, the Management Company
may, with the consent of the Trustee and under intimation to the Commission change such date
to any other date.

13.1.3 The Accounting Period shall be a period ending on and including an Accounting Date and
commencing, in case of the first such period, on the date on which the Fund Property is first
paid or transferred to the Trustee and, in any other case, from the end of the preceding
Accounting Period.

13.2. Financial Reporting

The following reports shall be sent to the Unit Holders physically or through electronic means:

(a) Audited financial statements, together with the Auditor’s report, the report by the
Management Company (Director’s Report) and the report by the Trustee within three months
of the close of each Accounting Period or such other period as prescribed by the Commission.

(b) Un-audited financial statements (subject to limited scope review by Auditors), together with
the report by the Management Company two months from the close of the second quarter of
the Accounting Period or such other period as prescribed by the Regulations.

(c) Un-audited financial statements, together with the report by the Management Company within
one month from the close of the first and third quarter of each Accounting Period or such
other period as prescribed by the Regulations.

(d) The Trustee shall issue a report to be included in the annual and second quarter report of the
Scheme to be sent to the Unit Holders whether in the Trustee’s opinion, the Management
Company has in all material respects managed the Scheme in accordance with the provisions
of the Deed, Rules and Regulations and if the Management Company has not done so, the
respect in which it has not done so and the steps, which the Trustee has taken in respect
thereof.

(e) The regularity of reporting shall change if so required pursuant to the Regulations or the
Ordinance.

64
14. SERVICE TO UNIT HOLDERS

14.1. Availability of Forms

All the forms mentioned and/or included in this Offering Document shall be available at all the
Authorized Branches of all Distributors and the Management Company and from its web site at
www.askariinvestments.com.

14.2. Accounts with Registrar Applicability

Once a Unit Holder has purchased a Unit from an Authorized Branch of the Distributor, all his
records/forms will be kept and maintained with the Registrar.

14.3. Register of Unit Holders

14.3.1 A Register shall be maintained (in physical or electronic form by the Management Company in
its discretion) by the Registrar at such a place as is agreed by the Management Company. The
Management Company shall ensure that the Registrar shall comply with all relevant provisions
of the Deed, the Rules and Regulations.

14.3.2 The Management Company shall ensure that the Registrar shall at all reasonable times during
business hours give the Trustee and its representatives access to the Register and to all
subsidiary documents and records or certified copies thereof and to inspect the same with or
without notice and without charge, but neither the Trustee nor its representatives shall be
entitled to remove the Register or to make any entries therein or alterations thereto and except
when the Register is closed in accordance with the provisions of the Deed, the Register shall
during business hours (subject to such restrictions as may be mentioned in this Offering
Document and for a period of at least two hours on each Business Day) be open in legible form
to the inspection of any Unit Holder without charge.

14.3.3 The Registrar shall, within seven (07) Business Days of receiving a written request from any
Unit Holder, post or send by courier or through electronic means to such Unit Holder details of
such Unit Holders account in the Register. The Management Company may prescribe
reasonable charges for servicing of any additional requests.

14.3.4 The Register shall contain the following information:

a) Customer identification no. and date of registration;

b) Full name, father’s/husbands name and addresses of Unit Holder together with a copy of the
computerized National Identity Card Number and/or copy of passport (if applicable);

c) The number and type of Units held and the distinctive numbers of Certificate(s), if any;

d) NTN no. (for non-individuals);

e) Nationality;

f) Occupation;

65
 g) The date on which the name of a Unit Holder was entered in respect of the Units standing in
his name;

h) The date on which any transfer or redemption is registered;

i) Information about lien, pledge or charge on Units;

j) Tax and Zakat status of the Unit Holder(s);

k) Record of the signature of the Unit Holder(s);

l) Nominees of the Unit Holder(s); and

m) Such other information as the Management Company may require.

14.3.5 The Register shall be conclusive evidence as to the Units held by each Unit Holder.

14.3.6 Any change of name or address of any Unit Holder shall forthwith be notified in writing to the
Registrar, who on being satisfied therewith and on compliance with such formalities
(including in the case of a change of name, the surrender of any Certificate(s) previously
issued to such Unit Holder(s) and the payment of the fee) shall alter the Register or cause it to
be altered accordingly and in the case of a change of name shall, if requested, issue new
Certificate(s) to such Unit Holder(s) subject to payment of applicable fee for such issuance.

14.3.7 The Registrar shall not register more than four (04) joint Unit Holders for a Unit. In case of the
death of any one of the Joint Unit Holders the survivor or survivors shall be the only person(s)
recognized by the Trustee as having any title to or interest in the Units held by the joint Unit
Holders; provided however, the Registrar or the Trustee may at their discretion request the
survivors to provide succession certificates or other such mandate from a court or lawful
authority, if they consider necessary.

14.3.8 A body corporate may be registered as a Unit Holder or as one of joint Unit Holders; provided
that, any undertaking provided by such body confirming its eligibility to make such investment
shall be considered as sufficient proof of its eligibility to make such investment.

14.3.9 The Register may be closed, in consultation with the Trustee, for such period as the
Management Company may from time to time determine and after giving at least seven (7)
calendar days notice to the Unit Holders; provided, that the Register shall not be closed for a
period exceeding six (06) Business Days at a time and forty-five (45) days in any calendar
year, unless otherwise specified by the Commission..

14.3.10 The Unit Holder shall be the only person to be recognized by the Trustee, the Management
Company and the Registrar as having any right, title or interest in or to such Units and the
Trustee, the Management Company and the Registrar may recognize the Unit Holders as the
absolute owner thereof and shall not be bound by any notice to the contrary and shall not be
bound to take notice of or to see to the execution of any trust except where required by any
court of competent jurisdiction. However, the Management Company may authorize the
Registrar to record a lien on any or all Units held by Unit Holders in favor of a third party at
the request of such Unit Holders or joint Unit Holders, as the case may be.

66
14.3.11 The executor or administrator or succession certificate holder of a deceased Unit Holder, not
being one of several Joint Unit Holders, shall be the only person recognized by the Trustee and
the Management Company as having title to the Units represented thereby. The succession
certificate in case of individual Unit Holders shall be issued by a competent authority in favour
of the legal heir.

14.3.12 Any person becoming entitled to a Unit in consequence of the death or bankruptcy of any sole
Unit Holder or of the survivor of Joint Unit Holders may, subject as hereinafter provided, upon
producing such evidence as to his title as the Trustee shall think sufficient, either be registered
himself as Unit Holder of such Unit upon giving the Trustee/Distributor such notice in writing
of his desire or transfer such Unit to some other person. All the limitations, restrictions and
provisions of the Deed relating to transfer shall be applicable to any such notice or transfer as
if the death or bankruptcy had not occurred and such notice or transfer was a transfer executed
by the Unit Holders; provided, however, the Trustee may at its discretion request the survivors
to provide succession certificates or other such mandate from a court or lawful authority, if it
considers necessary.

14.3.13 The Trustee shall retain any money payable in respect of any Unit of which any person is,
under the provisions as to the transmission of Units hereinbefore contained, entitled to be
registered as the Unit Holder or which any person under those provisions is entitled to transfer,
until such person shall be registered as the Unit Holder of such Unit or shall duly transfer the
same.

14.4. Account Statement

14.4.1 Units shall be issued in registered, un-certificated form and shall be confirmed to investors by
means of an Account Statement issued by the Management Company or the Registrar in
electronic or such other form and for such period as may be determined by the Management
Company from time to time; provided that, where the Unit Holder does not have access to
electronic means, the same shall be sent in physical form.

14.4.2 Upon written confirmation from the Trustee that the Purchase Price for each Unit has been
received in full from the applicant, the Registrar shall record the same in accordance with clause
14.4.3 and in the Register maintained pursuant to clause 14.3.1.

14.4.3 The Registrar shall record directly for each Unit Holder in the Account Statement each time
there is a transaction in the Units:

a. issued/subscribed;

b. redeemed;

c. transferred in favour of third person;

d. transferred from third person in favour of the Unit Holder;

e. consolidated/split;

f. Bonus Units;

g. additional units that are issued against re-investment of dividend;

h. date of maturity of investments; and

67
 i. such other information as is required under the Rules or Regulations or determined by the
Management Company.

14.4.4 The Management Company shall send, within fifteen (15) Business Days after close of an
Accounting Period or such other period as determined by the Management Company, an
Account Statement containing information mentioned in sub-clause 14.4.3 above for such
period.

14.4.5 The Management Company may, in the interest of Unit Holders, send a transaction
confirmation statement notifying each Unit Holder of any activity in his/her account. The form,
consent and frequency of such statement shall be determined by the Management Company in
its discretion.

14.4.6 The Unit Holder at any time, on an application or instruction in writing, shall be entitled to
receive proof of any transaction related to his account. The Management Company may
prescribe reasonable Duties and Charges for serving any additional requests.

14.5. Certificates

14.5.1 Certificates shall be issued only if so requested by the Unit Holders at the time of application or
at any later stage and upon payment of a fee specified in this Offering Document accruable to the
Management Company.

14.5.2 Certificates shall only be issued for Units that have been fully paid, in such denominations as
may be required by the Unit Holder. Separate Certificates shall be issued for each class of Units.

14.5.3 Certificates where requested shall be issued as herein provided not later than twenty-one (21)
Business Days after the date of such request. The Certificate may be sent to the principal account
holder named first or his duly authorized nominee at his own risk by registered post or by courier
service or may be collected by the Unit Holder from the Authorized Branch(es) of the
Distributor(s) or from the Management Company if it is performing the Distribution Functions.

14.5.4 In the case of Units held jointly, the Registrar shall not issue more than one Certificate for the
Units held by such joint Unit Holders and delivery of such Certificate to the principal account
holder named first therein shall constitute sufficient delivery to all the joint Unit Holders.

14.5.5 Certificates shall be issued in such form as may from time to time be agreed between the
Management Company and the Trustee. A Certificate shall be dated, shall bear the name of
Trust, name and address of the Management Company and the name of the Trustee, bear a
distinctive serial number and specify the number of Units represented thereby and the name and
address of the Unit Holders as appearing in the Register.

14.5.6 Certificates may be engraved or lithographed or printed as the Management Company may
determine from time to time with the mutual agreement of the Trustee and shall be signed on
behalf of the Trustee and the Management Company by their duly authorized officer(s). Every
such signature shall be autographic unless there shall be for the time being in force an
arrangement authorized by the Trustee adopting some lithographic or other mechanical method
of signature in which event all or any of such signatures may be effected by the method so

68
 adopted. The Certificates shall also bear the signature of the authorized representative(s) of the
Registrar which shall always be autographic. No Certificate shall be of any force or effect unless
signed as herein above mentioned. A Certificate so signed shall be valid and binding
notwithstanding that before the date of delivery thereof the Trustee, Management Company or
Registrar may have ceased to be the Trustee, Management Company or Registrar, as the case
may be.

14.6. Replacement of Certificates

14.6.1 Subject to the provisions of the Deed and in particular to the limitations of the denominations of
Certificates as may be fixed by the Management Company and subject to any requirements set
by the Trustee with the approval of the Management Company, every Unit Holder shall be
entitled to exchange upon surrender of the existing Certificate or all of his Certificates for one
or more Certificates of such denominations as he may require representing the same aggregate
number of Units.

14.6.2 In case any Certificate shall be lost, stolen, mutilated, defaced or destroyed, the Registrar, with
the approval of the Management Company, may issue to the person entitled a new Certificate in
lieu thereof. No such new Certificate shall be issued unless the applicant shall previously have:

(a) Returned the mutilated or defaced Certificate or furnished to the Distributor/Registrar

evidence satisfactory to the Management Company of the loss, theft or destruction of the
original Certificate;

(b) Paid all expenses incurred in connection with the investigation of the facts;

(c) in the case of joint Unit Holders, obtained the written consent of the joint Unit Holders for
issuance of such new Certificates; and

(d) Furnished such indemnity as the Management Company and the Trustee may require.
Neither the Management Company, nor the Trustee, Distributor or Registrar shall incur any
liability for any action that they may take in good faith under the provision of this sub-
clause; provided further that, the Trustee and/or the Management Company may also
require issuance of public notices in newspapers at the cost of the pertinent Unit Holder
before issuing any new Certificate.

14.6.3 Upon completion of all formalities and lapse of the notice period i.e. twenty one (21) days, if no
objection/claim has been received on issuance of the Certificates, the Registrar shall issue
Certificates within seven (07) Business Days.

69
15. FINANCIAL INFORMATION

15.1. Auditors Certificate on Core Investor in Units of the Fund

70
16. WARNING

16.1. Offering Document

The provisions of the Rules, Regulations and Deed govern this Offering Document. This Offering
Document sets out the arrangements covering the basis of the Units. It sets forth information about
the Fund that a prospective investor should know before investing in the Fund. Prospective
investors should consult their respective stockbroker, legal adviser, bank manager or other
financial adviser.

16.2. Fluctuation in Price and Income

Prices of Units and income from them may go up or down.

16.3. Disclaimer
Investment in this Fund is suitable for investors who have the ability to take the risks associated
with financial and other market investments, whether listed or otherwise. Capital invested in
extreme circumstances may lose its entire value. However, diversification of the investment into a
number of government securities of shorter maturities and other financial and market assets,
whether listed or otherwise tends to reduce the risk substantially. The historical performance of the
Fund, financial and other markets, and that of any instrument or investment included in the Fund’s
portfolio does not necessarily indicate future performance.
Investors are advised to read the risk disclosure and disclaimer statements contained in clauses
7.8.1 and 7.8.2, respectively above.

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17. GENERAL INFORMATION

17.1. Inspection of Constitutive Documents

The copies of the Deed, Offering Document and consents of the Auditor, Legal Adviser and
Trustee to their respective appointments can be inspected free of charge at the addresses given
below:

Askari Investment Management Limited

501, 5th Floor Green Trust Tower

Jinnah Avenue, Blue area
Islamabad, Pakistan

Central Depository Company (CDC) Public Limited

CDC House, 99-B, Block B

SMCHS, Main Sharah-e-Faisal Karachi

17.2. Statement of Responsibility

The Directors of the Management Company accept the responsibility for the information
contained in this Offering Document as being accurate at the date of publication.

18. REVOCATIONOF THE FUND

18.1 Subject to the Rules and Regulations, the Management Company may terminate the Scheme, if the
Net Assets at any time fall below Rupees fifty (50) million or in the event that redemption requests
build up to a level where the Management Company is of the view that the disposal of the Fund
Property to meet such redemptions would jeopardize the interests of the remaining Unit Holders
and that it would be in the best interests of all the Unit Holders that the Scheme be wound up.

18.2 The Trust may also be revoked by the Commission on the grounds specified in the Regulations.

18.3 The Deed may be terminated in accordance with the conditions specified in the Rules and
Regulations if there is a material breach of the provisions of the Deed or other agreement or
arrangement entered into between the Trustee and the Management Company regarding the
Scheme. If the Trustee is acting as a combined Trustee of two or more unit trusts and the
Administrative Plans thereof, and in the event that the termination of the Trustee for any one unit
trust is likely to require the termination of the Trustee for the other unit trusts, which forms an
integral part of any Administrative Plan covering more than one unit trust, both parties shall act in
a manner that causes the least degree of inconvenience to the investors and is the most cost
efficient for the unit trusts, the Management Company and the Trustee.

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19. DISTRIBUTION ON REVOCATION OF THE FUND

19.1 Upon the Trust being revoked, the Management Company shall suspend the sale and redemption
of Units forthwith and proceed to sell all Investments then remaining in the hands of the Trustee
as part of the Fund Property and shall repay any borrowing affected by the Trust together with
any markup or profit remaining unpaid.

19.2 The Trustee on the recommendation of the Management Company shall from time to time
distribute to the Unit Holders pro rata to the number of Units held by them respectively all net
cash proceeds derived from the realization of the Fund Property after making payments as
mentioned in clause 19.1 above and retaining such sum as considered or apprehended by the
Management Company for all costs, charges, expenses, claims and demands.

19.3 In the event the Scheme is revoked and Units have been purchased therein pursuant to an
Administrative Plan, such Administrative Plan shall stand discontinued and the Units held by
Unit Holders pursuant thereto shall be dealt in the same manner as the rest of the Units in the
Scheme being terminated and the other Schemes in which such Units are held.

20. ARBITRATION

20.1 In the event of any disputes arising out of the Deed or this Offering Document between the
Management Company on the one part and the Trustee or the Unit Holders on the other part,
including as to the respective rights and obligations of the parties hereto, as well as those relating
to the interpretation of the terms and conditions of the Deed and this Offering Document relating
to Unit Trusts, the same shall be referred to arbitration by two arbitrators, one to be appointed by
the Management Company and the other to be appointed by the Trustee. In the event of lack of
consensus between the two arbitrators, the matter shall be referred to an umpire, to be selected by
the two arbitrators before commencement of the reference. The unanimous decision of both the
arbitrators, or the decision of the umpire, as the case may be, shall be final and binding upon both
the parties hereto. The arbitrators and the umpire shall be selected from amongst, senior partners
of renowned firms of chartered accountants, or senior partners of renowned law firms, or senior
bankers or senior members of the Islamabad Stock Exchange (Guarantee) Limited. The venue of
the arbitration shall be Islamabad. The arbitration shall be conducted in accordance with the
Arbitration Act, 1940.

20.2 Subject to sub-clause 20.1 above, each party to the Deed along with the Unit Holders irrevocably
submit to the exclusive jurisdiction of the Courts at Islamabad in relation to all matters that arise
pursuant to the Deed and its subject matter.

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ANNEXURE “A”

DISTRIBUTOR DETAILS

The under-noted authorized branches of Distributors will facilitate the issuance, redemption, transfer and
pledge/lien of the Units. The Management Company may appoint and change Distributors and
Investment Facilitators, at its sole discretion, from time to time after notifying the unit holders.

Customer Care Centre: 0800-24611

MAIN OFFICE
501, 5th Floor Green Trust Tower
Blue Area, Jinnah Avenue
Islamabad
PABX: +92 51 111 246 111
Fax: +92 51 2813016-7
REGIONAL OFFICE (SOUTH)
Mezzanine Floor
Behria III Complex
M.T.Khan Road
KARACHI
PABX: +92-21-5635312-4
FAX: +92-21-5635315
REGIONAL OFFICE (CENTRAL)
Office No. 101
Ist Floor Siddiq Trade Centre
72 Main Gulberg
LAHORE
Tele: +92 42 5876277-8
Tele: +92 42 5792159, 5781774, 5781911
FAX: +92 42 5792111

Also Available at the following authorized distributors:

1. Askari Bank Limited

2. Al-Habib Capital Markets (Pvt) Limited.
3. Foundation Securities (Pvt) Limited.
4. Alfalah Securities (Pvt) Limited.
5. Js Global Capital Limited.
6. Pak Oman Investment Company Limited.
7. Reliance Financial Products (Pvt) Limited.
8. First National Equities Limited.
9. Uni Trading Services (Pvt) Limited.
10. Invest Capital & Securities (Pvt) Limited.
11. BMA Capital Management Limited.
12. IGI Investment Bank
13. Flow (Pvt) Limited.
14. Atlas Capital Markets (Pvt) Limited.
15. Pyramid Financial Consultants (Pvt) Limited.

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ANNEXURE “B”

Current Fee Structure

Front end Load: Nil

Management Fee: 1% of Average Annual Net Assets

Back End Load: Nil

75
ANNEXURE “C”
Forms

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79
80
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83
ANNEXURE “D”
Schedule of Remuneration of the Trustee

Tariff Structure for the Scheme under Central Depository Company of Pakistan Limited’s
Trusteeship

The Trustee’s remuneration shall consist of reimbursement of actual custodial expenses/charges plus
the following tariff:

Net Assets (Rupees in millions)

From To Tariff
Rs. 1 Rs. 1, 000 Rs. 0.7 million or 0.20% p.a. of NAV, whichever is higher
Rs. >1, 000 & Above Rs. 2.0 million plus 0.10% p.a. of NAV exceeding Rs. 1, 000
million

84