NAV 97.

6270
ASKARI ASSET ALLOCATION FUND Fund Manager Report
November 2007

General Information Investment Objective

Minimum Investment Rs 5,000
Sales Load 2.5% front-end, 0.0% back-end The fund seeks to maximize long-term total return (stocks
Management Fee 3.0% plus income) while incurring lesser risk than a fund
Risk Medium
comprising entirely of stocks. Asset universe of the fund
Manag’nt Company Rating AM3 by JCR-VIS and PACRA
includes stocks, term finance certificates, Government
Fund Size and Growth bonds, treasury bills, certificates of investment, continuous
30 Nov 07 31 Oct 07 funding system, and spread transactions (Redi-Future),
Fund Size Rs 737 mn Rs 722 mn etc. The fund seeks to provide its investors with returns
NAV* 97.6270 99.0956 that are 5% higher than the benchmark (KSE-100 index).
* Dividend of Rs. 1.99 paid as of June 30, 2007

Fund Performance
The Fund was launched (Pre-IPO) on June 2, 2007 with
Rolling Return 1-Month 3-Month Since Inc. FY08 the IPO taking place from Sep 10-13, 2007.
AAAF -1.48% 4.15% -0.38% -2.55%
KSE 100 -2.24% 12.75% 8.23% 1.64% Economic Outlook

Portfolio Details After revising its world growth forecast downward at 4.8%
P/E (FY08) 12.88 in October, the International Monetary Fund is again
Beta 0.90 looking to revise the number further downward in the wake
R2 81.0%
of higher oil prices and mortgage loans crisis in the United
Max Drawdown (DD) 9.2%
Number of days in DD 127 States. However, the State Bank of Pakistan is confident
Standard Deviation* 3.9% that Pakistan will largely remain insulated from the
* On monthly basis international economic slowdown and will achieve 7.0%
Economic Data target growth for FY08.
Nov/06 Mar/07 Jun/07 Sep/07 Nov/07
KSE100 Index 10,618.8 11,271.6 13,772.5 13,351.8 13,998.5 During the month, foreign portfolio investment worth
6M KIBOR 10.57% 10.39% 10.02% 9.97% 9.97% $219.86 million flowed out of Pakistan after the imposition
CPI Inflation 8.10% 7.67% 7.77% 7.07% -
of emergency in the country, which resulted in fairly volatile
price swings during the month. As a result of reported
Asset Allocation lower credit off-take and mixed 3rd quarter results, most of
E&P
the banks lost against the KSE 100 Index. Crude oil prices
Other
19% remained at record highs during the month and brought
Inv B anks 6% good gains in the oil shares. The cement sector remained
2%
Tech& Comm
3%
depressed on the expectation that rising energy input costs
Cement would reduce profits further. Fertilizer prices kept rising
4%
OM C
during the month solidifying the profits of the sector. Rising
5%
Cash
19%
steel prices, a stronger yen, and tighter credit from banks
for car loans made the auto sector less promising than in
previous years. Power, technology and communication
sectors gave a lackluster performance. Some major
Fertilizer insurers announced plans to realize capital gains on their
11%
portfolios before capital gains tax exemption expires at the
end of the calendar year. This gave boost to their shares.
Fixed Income
Banks Rising lint prices due to lower cotton production and
16%
15% apprehension of lower demand due to economic slowdown
in the textile importing countries cast a shadow over the
textile sector. The chemical sector performed somewhat
better.

Fund Performance

At the start of the month, the fund had a high exposure to the market and the fund NAV dipped significantly after
imposition of emergency in the country. The stock market closed at the month end with a small loss. The Fund was,
however, able to outperform the KSE 100 Index by 0.76% percent. Oil exploration and production and fertilizer stocks
performed well. At the end of the month the Fund was invested 65% in equities and 35% in fixed income and cash.
General elections are to be held within a month and the outcome of the election will determine the future trend of the
market. Before the elections, the market is likely to remain somewhat cautious.
Fund Manager Saeed Aziz Khan Listing Islamabad Stock Exchange
Fund Type Open-end asset allocation fund Trustee Central Depository Company
Launch Date 10 September, 2007 (IPO) Auditors Ford Rhodes Sidat Hyder & Co.