Maple Fund Manager Report - October 2010

Investment Objective profile is from moderate to high.

Maple fund is an equity fund and its objective is to maximize return for The fund investment comprises of
shareholders. Longterm growth is achieved by diversified portfolio and companies that shown prospects of
outperforming the market. The
investments into high yielding equity securities.
fund would continue to capitalize
on lucrative opportunities in the
Economic Review market by keeping a close eye on
The State Bank increased the policy interest rate by 50 basis points from 13% the changes in macroeconomic
to 13.5%, because of the fears of higher government borrowing, inflation, front. The portfolio return is higher
lower economic growth and revenue during the current fiscal year. The reason than the market return assuming a
behind this downturn is the catastrophic floods that left serious implications for bit little higher level of risk.
macroeconomic stability and growth prospects. The current inflation rate in
country reported by SBP is 11.7% but other sources indicate it between 14% to Fund Mangers
20%. Inflation is likely to stay on the higher side because of increasing food Sana Zahid
prices, rising international oil prices and elimination of electricity subsidies. Sehrish Nazir
State Bank of Pakistan is likely to continue to pursue a tight monetary policy. Sanjay Kumar
Wholesale prices rose 21.50% from a year ago, and 2.09% from August. Kainaat Rizvi
Remittances continued to show a rising trend as $2,646.30m was received in
the first quarter of fiscal year 2010‐11, showing an increase of $314.8m or
13.50%. The reserve money is 1,679,286m and growing at a rate of 9% which
was previously 1,507,581m at growth rate of 5.52% in 2009. FDI is 2150.8m
USD compared with 3719.9USD last year. Foreign debt is $53.01bn previously General Information
$51.05bn. Per capita income is 1046 and GDP growth rate is 4.1%. Trade Launch Date: Oct 1,2010
balance in August 2010 is -$1.24bn compared with last year -$1044m. Fund Size:
10m
Money Market Review Type: Equity
State bank of Pakistan sold Rs.17bn ($197.2m) of t-bills on Friday Oct 1 2010 Risk Profile: Moderate-
in its second repo of the day, under a six day repo contract at 11.69% to mom- High
up liquidity. Federal government has planned to raise Rs. 80bn in the second Portfolio β: 1.13
quarter of current 2010-2011 fiscal year. In this regard, State Bank has issued
details of the new Government of Pakistan Ijara Sukuk issuance program Maple KSE 100
including details of the underlying asset and the related documentation. Б: 0.0089 0.0056
National saving scheme (NSS) is also planning to launch short term Sharp Ratio: 6.27 6.69
investment certificate later this month. In the money market, overnight Returns : 6.71% 4.48%
rates rose to top levels of 13.40%, compared with Wednesday's (Oct 27, 2010)
close of between 12.50% and 13%, despite scheduled inflows of Rs.3bn ($34.9
million), due to tight liquidity in the interbank market. SBP collected Rs.124bn Performance Comparison
against the target of Rs.8 bn by executing Open Market Operation. Oct 1 Nov 1 % change
Benchmark 10042 10056
Stock Market Review 4.49%
In KSE, index performance was bearish and closed in negative note after four Maple 10m 10.68m 6.84%
consecutive positive weeks. The KSE 100-share index closed at 10,598.40
points by losing 54.08 points or 0.5 percent. The index started rising up from
1st October and it kept fluctuating. As on 25th October the index reach highest
point since last 2 years It closes the October month with increase in the index
point of 555.96 or 5.536%. Oct: 27 - Highest index points in October:
10,704.16. Increase in foreign investment boosted up the confidence of local
investors. Foreign interest in oil & gas, chemical & banking sector scrip
expectations of good earnings announcements this quarter kept investor
sentiment positive throughout the trading session. Raises in local cement
prices and demand for reconstruction & rehabilitation of flood affected regions
invited investor interest in cement sector.EU tax-free access for textile
products improved sentiments in the textile sector. Oct: 5 2O1O-Lowest index
points in October: 10,024.86 Oil & Gas sector have outperformed the market,
whereas banks, chemicals and auto sectors underperformed the market. NML,
PSO, POL, ENGRO and MCB were the top -5 scrip constituting 54 per cent of Asset Allocation%
market.

Fund Review
Maple fund investment is inclined towards banking, oil & gas, and
pharmaceuticals. The share price of pharmaceutical companies has shown an
upward trend because of Pakistan worst flood calamity which resulted an
increase in demand of medicine. The fund beta is 1.13 which shows fund risk