UBL Mutual Funds Report

PROJECT REPORT ON
Group Members:
Abdul Rehman (5727) (Equity)
M.Sharib (57199)(Money Market)
Syed MujawarHussain (3554) (Fixed Income)
Abdul Naveed(57799) (Commodity)
Treasury & Funds
Management
Faculty: Sir Faraz
Khan
Fall- 2016

Table of Contents
 Objective of the Study
 ResearchMethodology
 Data Collection
 Sample Size and Sample Technique
 Mutual Funds Industry Overview
 Types of Mutual Funds
 Mutual Funds Industry Top 03 Asset Managers(By AUMs, By Performance
 Role and Functionof the Trustees/Custodians/Regulators/Auditors/Fund
Manager/Investment Committee of the Fund
 Types of Fees/Expenses chargedby Funds inPakistan
 Product Profile
 Fund Manager:
 Investment Style (During Bullish/BearishPhase) andits critical analysis
 PermissibleInvestment Avenues
 WAM/PortfolioDurationandits analysis
 Classificationof Portfolio(AFS/HFT/HTM)
 Analysis of Asset CompositionandCredit Quality
 Risk Profile of the Fund and Liquidity Management
 Various Risk Factors effecting selectedMutual Fund

 Fund’s Past Performance History andTrendAnalysis (Standalone andPeer
Comparative Analysis)
 Rationales for Fund’s Outperformance/Underperformance
 Analysis andRecommendationon Facility/Incentives providedby Mutual
Funds to different types of Investors
 Student Findings andConclusion
Objective of the Study:

a. Present study focuses on analysis of mutual funds in terms of performance,
portfolio valuation and risk management
b. Evaluate the scheme on the basis of risk and return by calculating Beta, fund
Standard Deviation and Market Standard Deviation
ResearchMethodology
Descriptive cum analytical research has been used because the authors have no control over
the variables. Report has been made on what has happened or what is happening. In Analytical
Research, the results are based on the use of facts and information already available and made
an analysis on the basis of these only.
Data Collection
1) The data has been collected from the secondary sources i.e.
i. Annual Reports
ii. Offer Documents
iii. Fund Manager Report
2) NAVs of selected schemes and closing values of KSE-INDEX 100 have been noted from
www.psx.com and Mutual Funds Association of Pakistan (MUFAP).
Sample Size and Sample Technique:
Sample size of 3 years has been selected.
4 schemes of UBL AMC.
 UBL (EQUITY)
 UBL (FIXED INCOME FUND)
 UBL (MONEY MARKET)
 UBL (COMMODITY )

Mutual Funds in Pakistan
“Mutual fund is a pool of money invested according to a common investment objective by an
asset management company (AMC) on behalf of the fund’s investors”. A mutual fund can
generate profits from three different sources, which are: Dividend, Capital Gains and
Appreciation of Share Price. The figure shows a mutual fund is deals with the following entities;
trustee, auditor, SECP, AMC and investor. A mutual fund provides liquidity, portfolio
management expertise, risk diversification, and stability to stock market1 and it also mobilizes
savings by attracting funds from small investors
History
Mutual funds in Pakistan are registered and legally established in the form of a Trust,
under the Trust Act of 1882. The mutual fund industry is regulated by, the Securities
and Exchange Commission of Pakistan (SECP) which licenses each Asset Management
Company in strict compliance with the NBFC Rules, 2003 and requires all AMC’s to
obtain an independent rating.

Mutual Funds were introduced in Pakistan in 1962, with the public offering of National
Investment (Unit) Trust (NIT), followed by the establishment of the Investment Corporation of
Pakistan (ICP) in 1966.
Rules GovernMutual Funds inPakistan
There are two rules govern mutual funds in Pakistan, which are:
1. Investment Companies and Investment Advisors' Rules, 1971. (Govern closed-end mutual
funds)
2. Asset Management Companies Rules, 1995. (Govern open-ended mutual funds)
3. Asset Management Companies Rules, 1995. (Govern open-ended mutual funds)
Types of Mutual Funds
Mutual funds can be characterized as ‘Open’ or ‘Closed’ End2.
1. Open-End Funds
Open-End funds continually issue new units and redeem outstanding units upon investor
request. The unit holders buy units of the fund or may redeem them at the published Net Asset
Value (NAV). Typically, these funds have a perpetual lifespan. The asset management company
launches the fund and continues toremain the counter party in the sale and purchase
transactions with the unit holder.
In Pakistan there exists 34 open ended mutual funds (as of 2006) including National Investment
(Unit) Trust (NIT) in the public sector and Atlas Income Fund, Crosby Dragon Fund and Faysal
Balanced Growth Fund.
2. Closed-End Funds:
In Closed-End funds, a fixed number of share certificates are issued by the fund; the shares
trade in the secondary markets (stock markets). Market price of the share certificates is
determined by their demand and supply and they do not necessarily trade at NAV. Though
many of these funds have a perpetual lifespan, others have a finite lifespan. The asset

management company launches the fund and no longerremains the counter party in the sales
and purchase transactions with the unit holder.
To summarize both types of funds, a concise description of them are listed below.
Open-end fund Close-end fund
 Issues redeemable units
 Not necessarily listed
 Does not conduct general meetings of
unit holders
 No voting rights of unit holders
 May issue as many units and redeem
them at NAV
 Each time, units are directly acquired
from or sold to the company through
their authorized offices
 License of investment advisory is
required
 Units are traded at NAV
 Issues irredeemable shares
 Listed
 Conducts AGMs
 Bestow voting rights to shareholders
 Has fixed pool of money and does
not continuously offer shares,
however may increase its capital
under the Companies Ordinance
 Shares are acquired from the
company on initial public offer and
from existing shareholders
afterwards
 License of asset management
services is required
 Shares are trades at market price
rather NAV reported by the fund
manager

TOP 3 ASSET MANAGERS
1. Imran Rahim Khan
Current 1. Fund Manager at Pak Oman
Asset Management Company
Ltd.
Previous 1. Pearl Securities Limited,
2. Reliance Investments Limited
(Formerly Noman Abid
Investment Management
Limited),
3. Reliance Income Fund
EXPERIENCE
Chief Dealer Money Market Pearl Securities Limited
Head of Investments Reliance Investments Limited
(Formerly Noman Abid
Investment Management
Limited)
Fund Manager Reliance Income Fund
Global Markets - ManagerTreasury - Foreign Exchange ABN-AMRO Bank (Royal Bank
of Scotland) now as a Faysal
Bank Limited
ManagerTreasury Prime Commercial Bank
Forex MarketDealer Prime Commercial Bank
Money MarketSettlementOfficer Prime Commercial Bank

2. Imran Altaf
Current Fund Manager, Equities & Fixed Income,
VP at Alfalah GHP Investment Management
Ltd.
Previous Fund Manager, Fixed Income, AVP at Faysal
Asset Management Ltd., Senior Research
Analyst at Faysal Asset Management Ltd.,
Research Analyst...
EXPERIENCE
Fund Manager,Equities& Fixed Income,VP Alfalah GHP Investment Management Ltd.
Fund Manager,Fixed Income,AVP Faysal Asset Management Ltd.
SeniorResearch Analyst Faysal Asset Management Ltd.
Research Analyst Pak Oman Asset Management Ltd.
Research Analyst Faysal Bank

3. Saqib Shah
Current 1. Fund manager of fixed income at KASB Funds
Limited / Crosby Asset Management (Pakistan)
Limited
Previous 1. KASB Funds Limited / Crosby Asset
Management (Pakistan) Limited,
2. BMA Assset Management,
3. IGI Fund Select
EXPERIENCE
Fund ManagerFixed Income KASB Funds Limited / Crosby Asset
Management (Pakistan) Limited
Head of Operations-SeniorManager KASB Funds Limited / Crosby Asset
Management (Pakistan) Limited
SeniorManagerOperations BMA Assset Management
AssistantManagerOperations IGI Fund Select
AssociateOperations JS Investments
AssociateOperations Faysal Asset Management Limited.
Role and Function of the Trustees/Custodians/Regulators/Auditors/Fund
Manager/Investment Committee of the Fund
Central Depository Company of Pakistan Limited (CDC), a public limited company, incorporated
in Pakistan under the Companies Ordinance, 1984, having its registered office at CDC House,
99-B, Block ‘B’, S.M.C.H.S., Main Shahrah-e-Faisal, Karachi, Pakistan, has been appointed as the
Trustee for the Fund. The Trustee has considerable amount of experience of trusteeship of
open-end Schemes which are successfully functioning in the country.

 Role and Function of the Trustee
1. The Trustee shall take into its custody or under its control all the property of the
Scheme and hold it in trust for the Unit Holders in accordance with the Rules, the
Regulations and the Constitutive Documents and the cash and register able assets
shall be registered in the name of, or to the order of, the Trustee.
2. The Trustee has the responsibility to ensure timely delivery to the Management
Company of statements of accounts and transaction advices for banking and
custodial accounts in the name and under the control of the Trustee.
3. The Trustee shall perform all the obligations imposed on it under the Rules,
Regulations, the Trust Deed and this Offering Document and discharge all its duties
in accordance with the Rules, Regulations, the Trust Deed and this Offering
Document.
4. The Trustee shall nominate one or more of its officers to act as authorized persons
for performing the Trustee’s functions and for interacting with the Management
Company.
5. The Trustee shall comply with the provisions of the Deed 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 any officer or responsible official of the
Trustee or by any nominee or agent appointed by the Trustee.
6. The Trustee shall not be liable for any loss caused to the Fund or to the value of the
Trust Property due to any elements or circumstances beyond its reasonable control.
7. The Trustee shall carry out the instructions of the Management Company in all
matters including investment and disposition of the Trust Property unless such
instructions are in conflict with the provisions of the Deed and/or this Offering
Document(s) or the Regulations and/or any other applicable law.
8. The Trustee shall make available or ensure that there is made available to the
Management Company such information as the Management Company may
reasonably require from time to time in respect of the Trust Property and all other
matters relating to the Trust.
9. The Trustee shall issue a report to be included in the annual and second quarter
report of the Scheme and therein state whether, in its opinion, the Management
Company has in all material respects managed the Scheme in accordance with the
provisions of the Constitutive Documents, the Rules and the Regulations, and if the
Management Company has not done so, the respects in which it has not done so
and the steps that the Trustee has taken in respect thereof.

10. 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 Regulations. The Trustee shall endeavor to provide the certification at the
earliest date reasonably possible.
11. The Trustee shall ensure that the sale, purchase, issue, transfer, repurchases,
redemption and cancellation of Units effected by the Scheme are carried out in
accordance with the provisions of the Constitutive Documents.
12. The Trustee shall ensure that the investment and borrowing limitations set out in
the Regulations and Constitutive Documents and the conditions under which the
Scheme was registered are complied with.
13. The Trustee shall ensure that Units of the Scheme have been issued after realization
of subscription money.
14. The Trustee shall ensure that the Management Company has specified criteria in
writing to provide for a diverse panel of Brokers at the time of offering of the
Scheme and shall also ensure that the Management Company has been diligent in
appointing Brokers to avoid undue concentration of business with any Broker.
15. The Trustee shall ensure that the methodology and procedures adopted by the
Management Company in calculating the value of units are adequate and the pricing
and valuation for sale, issue, repurchase, redemption and cancellation prices are
carried out in accordance with the provisions of the Constitutive Documents and the
Regulations
 Custodians
The Central Depository Company of Pakistan Limited (CDC) will also be performing the
functions of the custodian of the Trust Property. The salient features of the custodial function
are segregating all property of the Fund from Custodian’s own property and that of its other
clients. Assuring the smooth inflow/outflow of dematerialized securities and such other
instruments as required. Ensuring that the benefits due on investments are received and
credited to the Fund’s account. The Trustee may, in consultation with the Management
Company, from time to time, appoint, remove or replace one or more Custodian(s) for
performing the Custodian Function at one or more locations, on terms and conditions to be
agreed between the Custodian and the Trustee and agreed by the Management Company for
the safe keeping of any portion of the Trust Property.
 Auditors

A.F. Ferguson & Co. Chartered Accountants (A member firm of PricewaterhouseCoopers) State
Life Building No. 1-C I.I.Chundrigar Road, P.O.Box 4716 Karachi-74000, Pakistan. They will hold
office until the transmission of the reports and accounts, which will cover the period from
commencement of the Trust up to the end of the Accounting Period and will, afterwards, be
eligible for reappointment by the Management Company with the concurrence of the Trustee.
However, an auditor may be reappointed for up to five consecutive terms or such other terms
as stipulated by the Regulations and/or the Ordinance, as amended from time to time.
Thereafter, that auditor may only be appointed after a lapse of one year. The appointment of
Auditor and contents of the Auditor’s report shall be in accordance with the provisions of the
Rules and Regulations. The Auditors shall have access to the books, papers, accounts and
vouchers of the Trust, whether kept at the office of the Management Company, Trustee,
Custodian, Transfer Agent 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. The Trustee shall be entitled to require
the Auditors to provide such further 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 Regulations. The Auditors shall prepare a written report to the
Unit Holders on the accounts and books of accounts of the Trust and the balance sheet, profit
and loss account, cash flow statement and statement of movement in Unit Holders’ funds and
on every other document forming part of the balance sheet and profit and loss account,
including notes, statements or schedules appended thereto.
UBL (EQUITY)
UBL Stock Advantage Fund Introduction
The United Stock Advantage Fund (the Fund/the Scheme/the Trust/USF) has been established
through a Trust Deed under the Trusts Act 1882, entered into between UBL Fund Managers
Limited (UBL FUNDS), the UBL Funds and Central Depository Company of Pakistan Limited, the
Trustee and is authorized under the Non- Banking Finance Companies (Establishment and
Regulation) Rules, 2003 (the Rules). The provisions of the Trust Deed govern this Offering
Document. It sets forth information about the Fund that a prospective investor should know
before investing in the Fund. Prospective investors should consult one or more from amongst
their legal adviser, stockbroker, bank manager or other financial adviser.
Investors must recognize that all investments involve varying levels of risk. The portfolio of the
Fund consists of market-based investments, listed as well as unlisted, that are subject to market
fluctuations and risks inherent in all such investments. Investors are requested to read the Risk
Disclosure.

Initial Offer (Initial Offering Period)
The Initial Offer is for Class “A” Units, with no Sales Load, which shall be issued at the Initial
Offer Price of Rs. 100/-per Unit. The Offer and Issue of Units at Initial Offer Price shall
commence from the start of the banking hours on -July 27th, 2006 and shall end at the close of
the banking hours on August 1st, 2006. During the Initial Offer, Units will be offered at par
without any Sales Load. During the Initial Period of Offer, the Units will not be redeemed.
Regulatory Approval andConsent
Approval of the Securities & Exchange Commission of Pakistan. The Securities and Exchange
Commission of Pakistan (SECP) has authorized the offer of Units of United Stock Advantage
Fund (the Fund) under Rule 67 of the Non-Banking Finance Companies (Establishment and
Regulation) Rules, 2003 (the Rules). The SECP has also approved th is Offering Document, under
Rule 70 of the Rules. It must be clearly understood that in giving this approval, the SECP does
not take any responsibility for the financial soundness of the Fund, nor for the accuracy of any
statement made or any opinion expressed in this Offering.
Investment Objectives
UBL Stock Advantage Fund (USF) is an Open-ended Equity Scheme that shall aim to provide
investors long-term capital appreciation by investing primarily in a mix of equities that offer
capital gains and dividend yield potential. USF shall aim to maximize total returns and out-
perform its benchmark.
Benchmark
The Benchmark for UBL Stock Advantage Fund (USF) shall be the KSE-100 Index6.
At times of high volatility or when the Fund Manager feels that equities as an asset class are in
the over-valued zone, they may seek short term opportunities in authorized money market
instruments (subject to restrictions in clause 2.3) to reduce the risk profile of the portfolio and
maximize returns. This Scheme may enable the investor with limited knowledge of direct
investment in the equity market to attain diversification and capitalize on the professional fund
management expertise available with UBL Fund Managers.
Types of Fees/Expenses Chargedby Funds inPakistan
Fees and Charges Payable by an Investor
Sales and Processing Charges (Front-End Load)
The Unit Purchase Price includes front-end load of a maximum of five percent (5%) of the Offer
(Purchase) Price (The current level of Front- End Load on Class ‘A’ Units is 2.5%. The issue 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 one percent (1%) of the Net
Asset Value at the date the request is lodged within business hours on the business day to the
Authorized Distributor or UBL Funds, which shall be recovered from the transferee. These
taxes, charges or duties may be recovered by redemption of Unit Holder Equivalent Units 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.
Allocationof Front-EndLoad
The remuneration of Distributors for the sale of Units with Front-end Load shall be paid
exclusively from any Frontend Load received by the Trustee and paid by UBL Fund Managers
when the Trustee pays the Front-end Load to UBL Fund Managers for onward distribution to
the Distributors, 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, UBL Fund Managers shall pay the amount necessary to pay in
full such remuneration. The remuneration of Investment Facilitators, if any, shall be paid by UBL
Fund Managers out of its own resources that may include surplus of Front-end Load after
payment for remuneration of the Distributors. Such payments of Front-end Load may be made
to UBL Fund Managers by the Trustee on the instruction of UBL Fund Managers on any
frequency as mutually agreed.
Allocationof Back-End Load
The Back-End Load shall form part of the Fund Property.
Fees and Charges Payable by UnitedStock Advantage Fund
The following expenses will be borne by the Fund:
Remuneration of the UBL Funds
The UBL Funds shall be entitled to receive:
UBL Fund Managers shall be entitled to an accrued remuneration equal to an amount not
exceeding three per cent (3%) of the average annual Net Assets of the Scheme that has been
verified by the Trustee and is paid in arrears on a monthly basis during the first five years of
existence of the Scheme and thereafter of an amount equal to two per cent (2%)of such assets
or such other amount as may be specified by the Commission. The remuneration shall begin to
accrue from the close of the Initial Offer 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 Accounting Period concerned. The remuneration due to UBL Fund Managers

shall be paid in arrears within fifteen (15) Business Days after the close of each calendar month.
In consideration of the foregoing and save as aforesaid UBL Fund Managers shall be responsible
for the payment of all expenses incurred by UBL Fund Managers from time to time in
connection with its responsibilities as Management Company of the Scheme. UBL Fund
Managers shall not make any charge against the Unit Holders or against the Fund Property or
against the Distribution Account for its services or for its expenses, except such expenses as are
expressly authorized under the provisions of the Regulations and the Deed to be payable out of
Fund Property. UBL Fund Managers 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. UBL Fund Managers shall however not
make any further material charge against the Unit Holders nor against the Fund Property nor
against the Distribution Account for its services nor for expenses, except such expenses or fees
as are expressly authorized under the provisions of the Regulations and the Deed to be payable
out of Fund Property.
Investment Policy
The investment criteria and decisions shall be based on the following key factors:
(a) Focus on under-valued stocks, i.e. stocks that are expected to offer growth and those which
offer a high dividend yield potential.
(b) Take advantage of market volatility and fund flow movements; and any other Authorized
Investments.
Provided that, at least seventy per cent (70%) of the Net Assets of the Scheme as specified by
the Commission shall remain invested in listed equity securities during the year based on
quarterly average investment calculated on a daily basis. The remaining Net Assets shall be
invested in cash and/or near cash instruments which shall include cash in bank accounts
(excluding Term Deposit Receipts (TDRs)), and treasury bills (T-Bills) of a maturity period not
exceeding ninety (90) days.
Product Profile
A)Benefits of Investing in Selected Mutual Fund
This scheme offers you an opportunity to maximize the growth potential of your savings over
the long-term by investing your money in the stock market with the help of our investment
professionals.
About The Scheme
The world over, investing in the stock market is considered to be a time-tested method of
creating wealth over the long-term. In Pakistan as well, the Karachi Stock Exchange (KSE) has

given a return of 668% since Jun 1997 to Dec 2010 – much higher than the return given by any
other investment avenue.
While investing in the stock market can be a rewarding investment avenue, it requires
knowledge and understanding of the market and the time to manage your own portfolio.
UBL Stock Advantage Fund (USF) is a mutual fund investment scheme that offers you an easy
way of investing your money in the stock market by offering you the expertise of its investment
professionals who have a thorough understanding of the markets, have access to research
teams, and have the required experience and expertise to manage your investments on your
behalf on a day-to-day basis. This way, you can enjoy the growth potential offered by the stock
market without having to worry about stock selection, buy and sell decisions and coordination
with brokers.
For Your Long-Term Goals
While investing in the stock market tends to offer an attractive growth potential for your
savings, stock market returns are subject to volatility (increase and decrease in value) in the
short-term. For this reason, you should consider investing in the stock market for your long-
term investment goals (preferably 5 or more years). So if you have time on your hands, and
won’t be requiring your money in the short-term, investing in USF can be an option you may
want to consider to achieve your long-term goals.
While you can always invest a lump sum amount in USF, one of the recommended ways of
investing in the stock market is to do so through ‘Systematic Investment Planning’ or SIP.
Systematic Investment Planning allows you to invest small amounts of money on a regular basis
as opposed to a one time lump sum investment. The benefits of investing regularly allow you to
invest at different time intervals. Since it is the very nature of stock markets to move up and
down, no one can predict precisely where the market will head next. By investing at regular
intervals through SIP, you can adopt a disciplined investment strategy and effectively reduce
timing risks. This means you are less likely to end up ‘buying high’ and ‘selling low’.
For Beating Inflation
Inflation is considered to be the biggest enemy of your savings. As time passes, the value of
your money can decrease with rising inflation. Because of the unparalleled growth potential
that investing in the stock market offers over the long-term, such investments are considered
as an effective means of beating inflation and retaining the value of your money over time.
How to Invest
Follow the steps given below to invest in UBL Stock Advantage Fund (USF). If you need any
assistance, speak with our customer care executives at 0800-00026.
Investment Procedure

Step 1: Fill the Account Opening Form if you are a new investor. If you already have an account
with UBL Fund Managers, you need to fill the Additional Purchase Form.
Step 2: Attach mandatory documents such as copy of CNIC to your application (complete list of
required documents is mentioned on the form).
 Payment shall me made in favor of: CDC Trustee UBL Stock Advantage Fund (USF)
 Payment can be made in the form of Cheque, Pay Order, Demand Draft or Online
Transfer (for UBL Bank Account Holders only)
Step 3: Send your application form along with the mandatory documents and payment
proceeds to us. To find out where you can submit your form, please contact us at 0800-00026.
Once we receive your duly filled application, we will send you a welcome letter and your
account statement confirming your investments with us.
At a Glance
The objective of this scheme is to give you access to stocks of companies that have long-term
growth potential and a promising record of dividend payments.
Features & Benefits
 Professional management of your money by experienced fund managers
 Diversification of stocks across a wide selection of companies and sectors
 Access to both local and international stock markets
 No charges on withdrawal of your money
 Tax savings on income tax deduction
 Tax exemptions as per Tax Law
Why You Should Invest
This scheme is ideal for you if you:
 Want to save money for a long-term goal
 Will not be requiring your money over the short-term
 Can withstand fluctuations in the value of your investments for longer-term gains
Recommended Investment Duration

There is no fixed-term holding period requirement for investment in this scheme. However, the
recommended investment duration is at least 5 years or more. While client can invest a lump
sum amount, they are advised to consider investing through ‘Systematic Investment Planning’
or SIP to help reduce market timing risks. The return on investment is not fixed and is subject to
market risks.
b) Risks InvolvedinInvesting inSelectedMutual Fund
Risk Disclosure
Investors into USF must realize that all investments in mutual funds and securities are subject
to market risks. Any target return / dividend range cannot be guaranteed and it should be
clearly understood that the portfolio of United Stock Advantage Fund is subject to market
fluctuations and risks inherent in all such investments. The risk emanates from various factors
that 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 fixed-income security including money market instruments.
Default Risk
Default risk is the risk that the issuer will not be able to meet the obligation, either on time or
at all.
Credit Spread Risk
Credit spread risk is the risk that there will be an increase in the difference between the return/
mark-up rate of an issuer’s bond and the return/mark-up rate of a bond that is considered to
have little associated risk (such as a government guaranteed bond or Treasury Bill). The
difference between this 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 fixed income securities including money market
instruments.
Downgrade Risk
Downgrade risk is the risk that a credit rating agency, such as PACRA or JCR-VIS, will reduce the
credit rating of an issuer’s securities. Downgrades in credit rating will decrease the value of
those fixed income securities including money market instruments.
Derivative Risk

Derivatives may be used to limit or hedge potential losses associated with stock markets and
return/mark-up rates. This process is called “hedging”. Any use of derivatives has risks,
including:
 The hedging strategy may not be effective.
 There is no guarantee that a market will exist when a fund wants to buy or sell the
derivative contract.
 A large percentage of the assets of a fund may be placed on deposit with one or more
counter parties, which exposes such fund to the credit risk of those counter parties.
 There is no guarantee that an acceptable counterparty will be willing to enter into the
derivative contract. The counter-party to the derivative contract may not be able to
meet its obligations.
 The Exchanges on which the derivative contracts are traded may set daily trading limits,
preventing a fund from closing out a particular contract.
 If an Exchange halts trading in any particular derivative contract, a fund may not be able
to close out its position in that contract.
 The price of a derivative may not accurately reflect the value of the underlying security
or index.
Concentration Risk
The Fund may concentrate its investments in a relatively small number of securities, certain
sectors or specific regions. This may result in higher volatility, as the value of the portfolio will
vary more in response to changes in the market of these securities, sectors or regions.
Return/Mark-Up Rate Risk
Fixed income securities including money market instruments, which include treasury bills and
commercial paper, pay fixed rate of return/mark-up. The value of the Fund, due to its holdings
in fixed income securities including money market instruments, will rise and fall as return/mark-
up rates change. 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.
Equity Risk
Companies issue equities, or stocks to help finance their operations and future growth. The
company’s performance outlook, market activity and the larger economic picture influence the
price of a stock. When the economy is expanding, the outlook for many companies will be good
and the value of their stocks should rise. The opposite is also true. Usually, the greater the
potential reward, the greater would be the risk. For small companies, startups, resource
companies and companies in emerging sectors, the risks and potential rewards are usually
greater. Some of the products and services offered by technology companies, for example, can
become obsolete as science and technology advance.

Government Regulation Risk
Government policies or regulations are more prevalent in some sectors than in others. Funds
that invest in these sectors may be affected due to change in these regulations or policies,
which directly or indirectly affect the earnings and/or the cash flows and/or any governmental
or court orders restraining payment of capital, principal or income.
Voluminous Purchase/Redemption Of Fund Units Risk
Any significant transaction made by any investor could significantly impact a Fund’s cash flow.
If a third party buys large amounts of Units of the Fund, the Fund could temporarily have a high
cash balance. Conversely, if a third party redeems large amounts of Units of the Fund, the Fund
may be required to fund the redemption by selling securities at an inopportune time. This
unexpected sale may have a negative impact on the performance of your investment.
Liquidity Risk
Some companies have limited market float of their issued shares and hence are not actively
traded in the stock market or they may generally have very few total shares issued and
outstanding. Securities issued by such companies may be difficult to buy or sell, which may
cause the value of the fund that buy these securities to rise and fall substantially because any
buying or selling of such company shares may have a great impact on that company’s share
price.
Repurchase and Reverse Repurchase Transactions and Securities Lending Risk
The risks with these types of transactions are that the other party may default under the
agreement or go bankrupt. In a reverse repurchase transaction, the Fund may be left holding
the security and may not be able to sell it at the same price it paid for it, plus return/mark-up, if
the market value of the security has dropped. In the case of a repurchase or a securities lending
transaction, the Fund could incur a loss if the value of the security sold or loaned has increased
more than the value of the cash or collateral held.
Market Risk
This risk involves volatility in stock prices resulting from their dependence on market sentiment,
speculative activity, supply and demand for the securities and liquidity in the market. The
volatility in securities prices results in volatility in the NAV based price of the Unit of the Fund.
Other Risks Involved
a) Mismanagement of the investee 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.

b) Break down of law and order, war, terrorist activity, natural disasters etc.
c) Senior rights of creditors over the shareholders in the event of winding up.
Fund’s Past Performance History andTrendAnalysis (Standalone andPeer
Last 5 Fiscal Years
Equity
2012 2013 2014 2015 2016
UBL 12.40% 55.20% 31.48% 22.05% 14.01%
Benchmark 7.78% 45.98% 38.06% 13.47% 7.56%
Absolute Returns
USF VS Benchmark (Fund Return in Top Row)
Fy’08 Fy’09 Fy’10 Fy’11 Fy’12 Fy’13 Fy’14 Fy’15 Fy’16
24.4% -19.5% 0.0% 35.5% 52.4% 136.5% 210.9% 279.5% 333.0%
15.2% -32.9% -8.9% 16.1% 25.2% 82.7% 152.3% 186.3% 204.9%
UBL stock advantage fund also delivered return more than the bench mark as shown in above
data. During the past five years UBL Stock Advantage Fund’s continuously shows increase by
different percentage. As at Oct 16, 2016, the fund was nearly 90% invested in equities and 7%
in cash and 3% in other equivalents. Equity investments were mainly concentrated in Oil and
gas exploration companies is 11%, Power Generation & Distribution sectors is 7%, cement is
8%, commercial bank is 17%, textile is 7% and other is 37% respectively. UBL stock advantage
fund delivered an absolute return of 14.01% during the year ended Oct 16, 2016 beating its
benchmark KSE-100 index by a massive Points. Bulk of fund’s performance is derived from
investments in dividend paying, high quality stocks and large capital gains earned from
allocations in attractively priced small to mid-cap stocks.
Rationales for Fund’s Underperformance/Outperformance
 Alpha

 Beta
 Standard Deviation
 Information ratio
 Sharpe Ratio
Fund Manager
Investment Style
To provide investors with long term capital growth from an actively managed portfolio invested
primarily in listed companies in Pakistan. The risk prole of the Fund will be moderate to high.
Permissible Investment Avenues
Assets Allocation (% Of Total Assets)
Jun-15 Jun-16
Equities 91% 89%
Cash 3% 10%
Others 6% 1%
International Investments 0% 0%
Leverage Nil Nil
Total 100% 100%
Interpretation
Fund Standard Deviation 17.13%
Market Standard Deviation 14.17%
Annualized fund return (Daily Average) 24.92%
Annualized market return (Daily Average) 13.47%
Beta 1.03
Fund Standard Deviation
Definition
It measures the volatility the fund's returns in relation to its average.

From an Investors Point of View
Investors look to the standard deviation measurement on mutual funds' annual returns to
determine the degree of fluctuation that can occur from year to year. Mutual funds with a long
track record of consistent returns display a low standard deviation. Growth-oriented or
emerging market funds, however, likely see more volatility and have a higher standard
deviation.
Interpretation
As we know that standard deviation not necessarily simply future consistency. Standard
deviation only shows consistency or inconsistency of returns but does not show how well the
fund performs against its benchmark. The standard deviation for UBL equity fund is measured
as 17.13%. this means that the returns are more volatile
The higher the number, the more volatile is the fund's returns. Investors prefer funds with
lower volatility.
Market Standard Deviation
The market standard deviation is 14.17% which is less than the firm. This means that the
investors are more interested in the market’s fund as compared to UBL stock equity fund. The
market standard deviation is lower than the firm. The lower the standard deviation, the less
volatile is the return.
Beta
Definition
It measures a fund's volatility compared to that of a benchmark. It tells you how much a fund's
performance would swing compared to a benchmark.
Interpretation
If a fund has a beta of 1.5, it means that for every 10% upside or downside, the fund's NAV
would be 15% in the respective direction.
The UBL equity beta is measured as 1.03 this means that the stock price moves more in
comparison of market.
Critical Analysis
MUTUAL
FUND
Fund Std.
Dev
MKT/ Std.
Dev
Avg. Fund
Return
Avg. MKT Return Beta

Equity 17.13% 14.17% 24.92% 13.47% 1.03
EQUITY
According to the fund return computed NAV from period 30-Jun-14 to 30-jun-16 the manager
outperformed 11.45 % points, with the return of 24.92% contrasts to its average benchmark
return of about 13.47% which shows the outperformance in the equity return throughout the
year 14 and 15. But the deviation in equity funds of UBL is 17.13% which is more than the
volatility in the market which remains 14.17%.
A beta of 1 indicates that the security price will move with the market, beta less than 1 means
that the security will be less volatile than the market whereas, beta greater than 1 indicates
that the security is more volatile than the market. So, in the case of UBL-SF the resulting beta is
1.03 which is more than 1 depicting the security being riskier than the market.
Classification of Portfolio
Portfolio is classified in to three categories:
i) Held-for-Trading Securities
ii) Available-for-Sale Securities
iii) Held-to-Maturity Securities
Held for Trading involve Market treasury bills and Investment bonds, whereas securities.
Available for Sales include ordinary shares, preference shares, investment in related parties,
Sukuk bond, GOP Sukuk, GOP Ijara Sukuk, Foreign currency bond & term finance certificates.
The last category.
Held-To-Maturity involves TFC’s bonds, GOP Sukuk, GOP Ijara Sukuk, Bai Muajjal Placement &
Pakistan investment bonds.
Risk Profile of the Fund and Liquidity Management
Risk profile of the equity scheme poses high profile risk because of the high deviation of about
17.13%.
Various Risk Factors Effecting Mutual Funds Industry
The risk factors that can effects mutual funds are the fluctuation in the prices of oil in
international market that can impact on the rate of inflation. With these two factors the
another important factor needs to be address in mutual fund is the currency value, IMF
tranches, tax measures, hike in gas tariffs, upsurge in international commodity prices etc.

FACILITY PROVIDED BY MUTUAL FUNDS TO INVESTORS
A. Systematic Investment
Systematic Investment Plan is a method of investing a fixed sum, regularly, in a mutual fund
scheme. SIP allows one to buy units on a given date each month, so that one can implement a
saving plan for themselves. The biggest advantage of SIP is that one need not time the market.
In timing the market, one can miss the larger rally and may stay out while markets were doing
well or may enter at a wrong time when either valuation have peaked or markets are on the
verge of declining. Rather than timing the market, investing every month will ensure that one is
invested at the high and the low, and make the best out of an opportunity that could be tough
to predict in advance.
B. Withdrawal
A systematic withdrawal plan (SWP) lets you take money out of a fund account according to a
regular schedule that you choose. It's a convenient way to draw down your holdings over time.
UBL (MONEY MARKET)
Money market fund
UBL Money Market Fund (UMMF) is a mutual fund investment scheme that offers an ideal
investment opportunity to grow your savings. Compared to traditional savings schemes, you
can enjoy an attractive market-based return on your investment – no huge lump-sum amount
or lock-in conditions.
Product Profile:
a. Benefits of investing in selected Mutual Fund
b. Risks involved in investing in selected Mutual Fund
Benefits
 Stable return
 Option to avail ‘Regular Income’
 Easy access to money (in part or whole)
 No fixed-term holding period requirement
 No charges on withdrawal

Fund Information
Minimums & Charges
Minimum investment Rs. 500
Minimum subsequent investment Rs. 500
Investment charges 1%
Redemption (withdrawal) charges Nil
Management fee (annual) 10% of all gross earnings (with
minimum fee of: 1% p.a. & maximum
fee of: 1.25% p.a.)
Fund Facts
Launch date October 2010
Fund type Open-end
Fund category Income
Fund rating AA (by JCR-VIS)
Benchmark Average of 6M KIBOR
Risk & RewardPotential
The scheme offers a secure investment for your medium to long-term investment objectives. In
addition to aiming to preserving capital, the scheme seeks to provide the highest possible

income available from low-risk securities such as Government securities (PIBs and T-Bills) and
High Rated Bank Deposits. The scheme does not have any exposure to Corporate Bonds (Term
Finance Certificates (TFC) and Sukuks)
Features
 Want to grow your savings over the medium to long-term
 Want to have access to your money (don’t want to lock-in for a fixed-term)
 Want to generate a regular source of income from your savings
Types of Fees/Expenses chargedby Funds inPakistan
 Management fee
 Trustee fee
 Securities and Exchange Commission of Pakistan fee
UBL Money Market Fund (UMMF)

Fund Manager
Critical Analysis:
MUTUAL
FUNDS
Fund
Std
Dev
MKT/Kibor
Std Dev
Avg. Fund
Return
Avg.
Benchmark
Return
Sharpe
ratio of
fund
Money Market 9% 8% 2.87% 0.25% 9.74
Investment style:
primarily in listed companies in Pakistan. The risk prole of the Fund will be moderate to high.
Permissible Investment Avenues:
Assets allocation:
1) Commercial Banks
2) Power Generation & Distribution
3) Fertilizer
4) Oil & Gas Exploration Companies
5) Cement
6) Cash Equivalents and Others including receivables
7) Others
Classificationof Portfolio:

iv) Held-for-Trading Securities
v) Available-for-Sale Securities
vi) Held-to-Maturity Securities
Held for trading involve Market treasury bills and Investment bonds, whereas available for
salessecurities include ordinary shares, preference shares, investment in related parties,
Foreign currency bond & term finance certificates. The last category Held-To-Maturity involves
TFC’s bonds & Pakistan investment bonds.
INTERPRETATION:
FundStd Deviation 13%
Mkt Std. Deviation 15%
Avg.DailyReturn 34%
Beta 0.134
FUND STANDARD DEVIATION:
DEFINITION:
It measuresthe volatilitythe fund'sreturnsinrelationtoitsaverage.
INVESTORS POINT OF VIEW:
Investorslooktothe standarddeviationmeasurementonmutual funds'annual returnstodetermine
the degree of fluctuation thatcanoccur fromyearto year.Mutual fundswitha longtrack record of
consistentreturnsdisplayalowstandarddeviation.Growth-orientedoremergingmarketfunds,
however,likelysee more volatilityandhave ahigherstandarddeviation.
INTERPRETATION:
As we know that standard deviation not necessarily imply future consistency. Standard
deviation only shows consistency or inconsistency of returns but does not show how well the
fund performs against its benchmark. The standard deviation for UBL MM is measured as 13%.
This means that the returns are more volatile
The higher the number, the more volatile is the fund's returns. Investors prefer funds with
lower volatility.
 MARKET STANDARD DEVIATION:

The market standarddeviationisgreaterthanthe firm.Thismeansthatthe investorsare more
interestedinthe UBLfundas comparedto market.The marketstandard deviationisgreaterthanthe
firm.The higherthe standarddeviation,the greatervolatileisthe return.
 BETA:
DEFINITION:
INTERPRETATION:
But the beta is measured as -0.9. This means that the stock price moves less in comparison of
market.
 Alpha:
Alpha is used in finance to represent two things: 1. A measure of performance on a risk-
adjusted basis. ... The excess returns of a fund relative to the return of a benchmark index is the
fund's alpha. Alpha is most often used for mutual funds and other similar investment types.
Functioning of the Mutual Fund
UBL Money Market Fund (the Fund) was established under the Non-Banking Finance
Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules) and Non-Banking
Finance Companies and Notified Entities Regulations, 2008 (NBFC Regulations) as an open-end
mutual fund. It was constituted under a Trust Deed dated 10 August 2010 executed between
UBL Fund Managers Limited (a wholly owned subsidiary of United Bank Limited), as the
Management Company and Central Depository Company of Pakistan Limited, as the trustee.
The Trust Deed has also been approved by the SECP. The registered office of the Management
Company is situated at the 4th Floor STSM Building, Beaumont Road, Civil Lines Karachi, with
effect from 6 April 2016. Previously it was situated at 8th Floor, State Life Building No.1, I.I
Chundrigar Road Pakistan.
The Management Company of the Fund is registered with the SECP as a Non-Banking Finance
Company under the NBFC Rules.

The Fund is an open ended mutual fund and is listed on the Pakistan Stock Exchange Limited
(Formerly Islamabad Stock Exchange Gurantee Limited, merged/integrated with KSE & LSE on
11 January 2016). Units are offered for public subscription on a continuous basis. The units are
transferable and can also be redeemed by surrendering them to the Fund at the option of the
unit holder. The Fund was initially categorized as income scheme and was recategorized as
Money Market scheme effective from 23 May 2014.
The principle activity of the fund is to generate competitive return within a low risk portfolio to
provide a regular stream of income and easy liquidity to its investors by investing more than
50% liquidity of portfolio in short term Government securities.
Fund’s Past Performance History and Trend Analysis (Standalone and Peers
The Fund has earned an annualized return of 11.9% since its beginning (2011) as compared to
its Benchmark (3-Month deposit rates of 'AA' & above rated banks) annualized return of 14.2%
for the same period. UBL MMF is a Money Market Scheme, the Fund's Authorized Investments
include T-Bills, Bank Deposits and Money Market instruments. The Fund has been awarded a
stability rating of AA (f) by PACRA which denotes a very strong capacity to manage risk and
generate relatively stable return. Minimum rating of investments is AA, while the Fund is not
allowed to invest in any security exceeding six month maturity. The weighted average time to
maturity of the Fund cannot exceed 90 days. These restrictions minimize credit and interest
rate risks. The management is announcing monthly dividends since the Fund came into
operation and intends to continue this policy in the future as well.
-1500
-1000
-500
0
500
1000
1500
Jun30,2014
Jul22,2014
Aug20,2014
Sep11,2014
Oct03,2014
Oct31,2014
Nov25,2014
Dec17,2014
Jan13,2015
Feb04,2015
Feb27,2015
Mar24,2015
Apr15,2015
May07,2015
May29,2015
Jun22,2015
Jul14,2015
Aug10,2015
Sep02,2015
Sep28,2015
Oct20,2015
Nov12,2015
Dec04,2015
Dec30,2015
Jan21,2016
Feb15,2016
Mar08,2016
Mar31,2016
Apr22,2016
May16,2016
Jun07,2016
Jun29,2016
Daily Return Daily Mkt Return Alpha

 Investment Objective
The Fund’s objective in managing risks is the creation and protection of Unit holders’ value.
Risk is inherent in the Fund’s activities, but it is managed through monitoring and controlling
activities which are primarily set up to be performed based on limits established by the
Management Company, Fund's constitutive documents and the regulations and directives of
the SECP. These limits reflect the business strategy and market environment of the Fund as well
as the level of the risk that the Fund is willing to accept. The Board of Directors of the
Management Company supervises the overall risk management approach within the Fund. The
Fund is exposed to market risk (which includes interest rate risk and currency risk), credit risk
and liquidity risk arising from the financial instruments it holds.
 Market risk
Market risk is the risk that the fair value or future cash flows of financial instruments will
fluctuate due to changes in market variables such as interest rates, foreign exchange rates and
debt / security prices.
 Interest rate risk
Interest rate risk arises from the possibility that changes in interest rates will affect future cash
flows or the fair values of financial instruments. As at June 30, 2016, the Fund is exposed to
such risk in respect of Government securities and bank balance.
 Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in foreign exchange rates. The Fund does not have any
financial instruments in foreign currencies and hence is not exposed to such risk.
 Other price risk
The risk that fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices of securities due to a change in credit rating of the issuer or the
instrument, change in market sentiments, speculative activities, supply and demand of
securities and liquidity in the market. The following table demonstrates the sensitivity to a
reasonably possible change in other prices, with all other variables held constant, of the Fund’s
income and other comprehensive income.
 Liquidity Risk
Liquidity risk is defined as the risk that the Fund will encounter difficulty in meeting obligations
associated with financial liabilities. Liquidity risk arises because of the possibility that the Fund
could be required to pay its liabilities earlier than expected. The Fund is exposed to cash
redemptions of its redeemable units on a regular basis. Units are redeemable at the unit

holder’s option based on the Fund’s net asset value per unit at the time of redemption,
calculated in accordance with the Fund’s constitutive documents.
In order to manage the Fund’s overall liquidity, the Fund has the ability to withhold daily
redemption requests in excess of ten percent of the units in issue and such request would be
treated as redemption requests qualifying for being processed on the next business day. Such
procedure would continue until the outstanding redemption requests come down to a level
below ten percent of the units then in issue. The Fund did not withhold any significant
redemption during the year. Further, the Fund also has the ability to suspend redemption of
units with approval of Board of Directors of the Management Company in extraordinary
circumstances.
Rationales for Fund’s Outperformance/Underperformance
Many of the motivations for the creation of RFAs are similar to those for multilateral
institutions like the Fund. Specifically: If RFA resources can be readily accessed, they can
provide insurance against shocks in a cost-efficient manner. Economic and financial
interconnectedness create spillovers and contagion risks, particularly among countries with
geographic proximity, but accumulating reserves at the country level is costly. Moreover,
reserves might not be readily used by countries for ―fear of losing reserves. Pooling resources
can help countries gain access on better terms to international capital markets and can provide
a source of countercyclical financing. Sharing resources create incentives to put in place a
regional peer review or surveillance mechanism to monitor members’ economic developments
and policies, contributing to early identification of crisis risks and prevention of a regional crisis.
In cases where such a mechanism already exists, its effectiveness is likely strengthened by
sharing resources. In a currency union, an RFA provides an additional mechanism to cushion
country adjustment in response to idiosyncratic shocks. The CMI and its successor, the Chiang
Mai Initiative Multi lateralization (CMIM), put in place a regional self-help‖ mechanism to
provide ―sufficient and timely‖ financial support, and supplement international financing
arrangements. They stemmed from the experience of the Asian crisis where financing by the 9
IMF (2011b). Lending: In most cases, financial assistance by RFAs is in the form of loans to
members facing balance of payments or other financing needs. As noted above, NAFA and
CMIM assistance is extended via swaps of a member’s local currency and a reserve currency or
another strong major currency. Other forms of assistance include purchases of bonds issued by
members in the primary and secondary markets and loans to sovereigns for recapitalization of
the banking system, such as in the ESM.13 Precautionary lending: Until 2011, only FLAR
provided contingent credit; since then, the EU has incorporated precautionary loans in its
lending toolkit. The CMIM is also set to introduce a precautionary swap line when its
Agreement is amended. As for instrument design, the ESM’s Precautionary Conditioned Credit
Line and Enhanced Conditions Credit Line appear similar to the Fund’s FCL and PLL,

respectively. Also, the CMIM Precautionary Line resembles the PLL in terms of qualification, but
has greater flexibility regarding the extent of ex post conditionality
Rationales for Fund’s Outperformance/Underperformance
 Annualized Fund Return
 Beta
 Standard Deviation
 Information ratio
 Sharpe Ratio
 Beta
Money Market
2012 2013 2014 2015 2016
UBL 12.06% 9.31% 7.81% 7.98% 5.15%
bench mark 13.3% 10.27% 10.6% 8.61% 5.91%
The risk-return characteristics of these funds are very different due to different investment
guidelines. Fiscal Year to-date (July-April), UBL Government Securities Liquid Fund has provided
an annualized return of 10.46% with negligible volatility. UBL Asset Allocation Fund have
provided a cumulative return of about 11.20% in the 10-month period ending April 2016,
whereas UBL Stock Fund has provided a return of 14.99% during the same period. It is pertinent
to mention that volatility in return of the UBL Stock Fund lower and UBL Asset Allocation Fund
is even lower. Thus, investors of UBL Asset Allocation Fund beneted from the upside of the
stock market with lower volatility in returns. We advise investors to choose the fund keeping in
mind their risk and return objectives.
Investors must realize that all investments in mutual funds and securities are subject to market
risks. Our target return / dividend range cannot be guaranteed and it should be clearly
understood that the portfolio of UBL MONEY MARKET FUND is subject to market price
fluctuations and other risks inherent in all such investments.
Various Risk Factors effecting Mutual Funds
(1) Government Regulation Risk –
Government policies or regulations are more prevalent in some securities and financial
instruments than in others. Funds that invest in such securities may be affected due to

change in these regulations or policies, which directly or indirectly affect the structure of
the security and/or in extreme cases a governmental or court order could restrain
payment of capital, principal or income.
(2) Credit Risk –Credit risk is the possibility of an issuer defaulting on its financial obligation
when due, or downgrade in its rating, or widening of its credit spread.
(3) Price Risk - The price risk is defined as when the value of the fund, due to its holdings in
such securities rises and falls as a result of change in interest rates. NAFA MONEY
MARKET FUND Offering Document 12
(4) Liquidity Risk – Liquidity risk is the possibility of deterioration in the price of a security
in the Fund when it is offered for sale in the secondary market.
(5) Settlement Risk – At times, the Fund may encounter settlement risk in purchasing /
investing and maturing / selling its investments which may affect, the Fund’s
performance etc.
(6) Reinvestment Rate Risk –In a declining interest rate economic environment, there is a
risk that maturing securities or coupon payments will be reinvested at lower rates,
which shall reduce the return of the Fund compared to return earned in the preceding
quarters.
(7) Other Risks Involved:
a. Third party liability whether through class action or otherwise or occurrence of other
events such as strikes, fraud, etc., in the security in which an investment is made.
b. Break down of law and order, war, terrorist activity, natural disasters, etc.
Facility/Incentives providedby Mutual Funds to different types of Investors
a. Systematic Investment:
Systematic Investment Plan is a method of investing a fixed sum, regularly, in a mutual fund
scheme. SIP allows one to buy units on a given date each month, so that one can implement a
saving plan for themselves. The biggest advantage of SIP is that one need not time the market.
In timing the market, one can miss the larger rally and may stay out while markets were doing
well or may enter at a wrong time when either valuation have peaked or markets are on the
verge of declining. Rather than timing the market, investing every month will ensure that one is
invested at the high and the low, and make the best out of an opportunity that could be tough
to predict in advance.
b. Withdrawal:
A systematic withdrawal plan (SWP) lets you take money out of a fund account according to a
regular schedule that you choose. It's a convenient way to draw down your holdings over time.

Recommendedinvestmentduration
There is no fixed-term holding period requirement for investment in this fund. You can invest
for your medium-term goals (1 to 3 years) or your long-term goals (3 years or more). However a
minimum investment duration of at least one year is recommended.
Conclusion:
Just as equity and fixed-income mutual funds have greatly simplified the world of investing,
money market mutual funds have made money market investing accessible to individual retail
investors. Money market mutual funds are among the safest and most liquid financial
instruments widely available. Moreover, money market funds offer modest initial investment
requirements and provide simple procedures for withdrawing funds by check or transfer to a
bank account. Finally, if investors choose carefully, purchasers of certain tax-exempt money
market funds may also enjoy relief from federal, state and even local taxation.
UBL (FIXED INCOME)
What is an 'Income Fund?'
An income fund is a type of mutual fund or exchange-traded fund (ETF) that emphasizes current
income, either on a monthly or quarterly basis, as opposed to capital appreciation. Such funds
usually hold a variety of government, municipal and corporate debt obligations, preferred
stock, money market instruments, and dividend-paying stocks.
Product Profile
UBL Fixed income Fund
While investing in the stock market offers an attractive growth potential over the long-term,
you may not be comfortable with the fluctuations (increase and decrease) in prices that you will
be facing when investing in stocks.
In comparison, Term Finance Certificates (TFC) as an alternative investment avenue offer you
the potential for long-term growth with comparatively less volatility (to the stock market). Term
Finance Certificates are ‘corporate bonds’ or loans that companies other than banks extend to
companies who require this money for their future growth and development needs. In return
for the loan that these companies borrow, they offer a fixed rate of return to the issuer of the
loan over a predefined period of time.

UBL Growth & Income Fund (UGIF) is a mutual fund investment scheme that offers you an
opportunity to gain exposure to Term Finance Certificates (TFC) and benefit from the long-term
growth potential that such investment instruments have to offer. Compared to a stock market
based investment scheme, UBL Growth & Income Fund (UGIF) offers a less volatile investment
avenue for your long-term growth of savings.
For your long-termgoals
While investing in Term Finance Certificates (TFC) offers an attractive growth potential for your
savings, the prices of TFC are subject to a daily pricing mechanism based on a mark-to-market
basis which brings about short-term fluctuation in the prices of UGIF. So if you have time on
your hands, and won’t be requiring your money in the short-term, investing in UGIF can be an
option you may want to consider to achieve your long-term goals (preferably over 5 or more
years).
Fund Information
Minimums & Charges
Minimuminvestment Rs. 500
Minimumsubsequentinvestment Rs. 500
Investmentcharges 1.5% for Income Units& Nil forGrowthUnits
Redemption(withdrawal) charges Nil forIncome Units& Stepped-downstructure forGrowthUnits*
Managementfee (annual) 1.5%
Fund Facts
Launch date March 2006
Fundtype Open-end
Fundcategory Aggressive fixedincome
Fundrating BBB plus(byJCR-VIS)
Benchmark 6 monthrollingaverage of 6M KIBOR

The scheme offers potential for long-term capital appreciation by investing in medium to long-
term debt instruments such as Corporate Bonds (Term Finance Certificates (TFC)) issued by
companies across various sectors and industries that UBL Fund Managers believes are poised
for long-term growth.
Due to the fluctuation in the prices of TFC instruments, the fund’s prices can fluctuate and
clients may experience decline in their investment value from time to time.
Fund’s Past Performance History and Trend Analysis (Standalone and
Peer Comparative Analysis)
UIOF
2012 2013 2014 2015 2016
UBL 9.23% 6.99% 10.86% 7.69%
Benchmark 8.71% 9.06% 9.06% 6.55%
Absolute Returns
UIOF VS Benchmark (Fund Return in Top Row)
Fy’08 Fy’09 Fy’10 Fy’11 Fy’12 Fy’13 Fy’14 Fy’15 Fy’16
9.2%
9.5% 21.4% 30.8%
8.7%
11.5% 21.6% 28.5%

UBL Income Opportunity fund also delivered return more than the bench mark as shown in
above data. During the past four years UBL Income Opportunity fund continuously shows
increase and decrease by certain percentage.
Fund Manager
Investment Style
primarily in listed companies in Pakistan. The risk role of the Fund will be moderate to high or
moderate to low.
Permissible Investment Avenues
Interpretation
Fund Standard Deviation 2.0%
KIBOR Standard Deviation 1.5%
Annualized fund return (Daily Average) 8.5%
Annualized benchmark return (Daily Average) 8.0%
Beta -3.2
Fund Standard Deviation
Definition
It measures the volatility the fund's returns in relation to its average.
From an Investors Point of View
Investors look to the standard deviation measurement on mutual funds' annual returns to
determine the degree of fluctuation that can occur from year to year. Mutual funds with a long
track record of consistent returns display a low standard deviation. Growth-oriented or
emerging funds, however, likely see more volatility and have a higher standard deviation.
Interpretation
Standard deviation shows consistency or inconsistency of returns but does not show how well
the fund performs against its benchmark. The standard deviation for UBL Income Opportunity
Fund is measured as 2.0%. This means that the returns are less volatile means investors prefer
the funds with lower volatility.
KIBOR Standard Deviation
The KIBOR standard deviation is 1.5.

Beta
Definition
Interpretation
The UBL Fixed income beta is measured as -3.2. This means that the Income fund price moves
less in comparison of market.
BenefitstoInvestors
 Government of Pakistan Securities offer Risk Free Return on Investment
 Acceptable by the Financial Institutions in Pakistan as Collateral
 PIBs being long term Instruments are an alternate to National Saving Scheme instrument – SSC,
RIC & DSC (3, 5 & 10 Years)
 Script less instrument, therefore no hassle of storage or safe keeping.
 Highly liquid instrument, entry & exit not an issue
 Yield on instrument not dependent on quantum of investment (NCB)
 The customer’s portfolio of T-Bills, PIBs & Sukuk are clearly marked with State Bank of Pakistan,
therefore added security for the investor
InvestinginGoPSecurities
Investment Process
Investors interested in buying GoP Securities, need to follow the below mentioned process flow
 Open an Investor Portfolio Services (IPS) Account with UBL
 Submit the IPS Account opening form along with the required documents at their UBL
branch(please note that for any corporate, Institutional investor or individual interested in
opening an IPS account , need to have an banking account with UBL)
 After the IPS Account is operational, the customer can proceed with its investment process
 Select the investment instrument (T-Bill, PIB or Sukuk)

 Select the investment Mode Primary Market-NCB or Secondary Market(select your preferred
mode by clicking on the link above)
Key factors which the investor needs to identify are
 Security Type
 Transaction Amount (Face Value ) or Investment Amount (Amount to be invested)
 Tenor of Instrument
 Settlement/Purchase/PaymentDate
Features & Benefits
 Long-term growth of you savings
Why you should invest
 Want to invest your savings for the long-term
 Will not require access to your money over the short-term
 Can withstand short-term fluctuations in prices for longer-term gains
Risks Involved in Investing in Selected Mutual Fund
Factors Affecting
The biggest risks of bonds and other fixed-income investments are interest rate risk, credit risk
and inflation risk. There are other risks to bear in mind, such as the call risk, but they only apply
in a limited number of situations.
1. Credit risk. If a bond issuer can’t repay a bond, it may end up being a worthless
investment.
2. Interest rate risk. The value of fixed income securities generally falls when interest rates
rise.

3. Inflation risk: Inflation can be particularly harmful to investors in fixed-income securities
because their yield is a fixed amount. In case of inflation, the real value of this amount falls and
investors may even lose money on a fixed-income investment
Features & Benefits
 Long-term growth of you savings
For example, if you are a salaried individual and your annual taxable income for the year is Rs.
4,000,000; your average tax rate will be 15%. If you invest, let’s say Rs. 800,000 in a mutual
fund scheme, you will be entitled to a tax credit of Rs. 120,000. In the same case if you are self-
employed, your tax credit will approximately be Rs. 144,500 (based on your annual tax rate of
18.06%).
At a Glance
The objective of this scheme is to offer clients with a competitive rate return by investing in
high quality financial sector debt instruments.
Payout: Rs. 1.95 (July 5, 2013)
Payout: Rs. 0.85 (September 25, 2013)
Payout: Rs. 1.46 (December 24, 2013)
Payout: Rs. 2.10 (March 25, 2014)
Payout: Rs. 2.15 (June 24, 2014)
Payout: Rs. 3.24 (June 26, 2015)
 Want to invest your savings for the long-term
 Will not require access to your money over the short-term
 Can withstand short-term fluctuations in prices for longer-term gains

Recommendedinvestmentduration
There is no fixed-term holding period requirement for investment in this scheme. You can
invest for your medium-term goals (1 to 3 years) or your long-term goals (3 years or more).
However minimum investment duration of at least one year is recommended.
CRITICAL ANALYSIS
MUTUAL
FUNDS
Fund Std.
Dev.
MKT/KIBOR Std.
Dev.
Avg. Fund
Return
Avg.
Benchmark
Return
Sharpe ratio
of fund
Equity 14.85% 14.14% -3.33% -11.43% -
Fixed
Income
2.0% 1.5% 8.5% 8.0% Beta -3.2%
Money
Market
0.13% 0.15% 0.34% 0.25% 9.74
Fund of
funds
Interpretation
According to the fund return computed NAV from period 30-Jun-14 to 30-jun-16 the manager
outperformed 8.5 % points, contrasts to its average benchmark return of about 8.0% which
shows the outperformance in the fund return throughout the year 14 to 16.
A beta of 1 indicates that the security price will move with the market, beta less than 1 means
that the security will be less volatile than the market whereas, beta greater than 1 indicates
that the security is more volatile than the market. So, in the case of UBL-SF the resulting beta is
1.03 which is more than 1 depicting the security being riskier than the market.
Classification of Portfolio
vii) Held-for-Trading Securities
viii) Available-for-Sale Securities
ix) Held-to-Maturity Securities
FixedIncome Sales

The FixedIncome salesteamstrivestoworktowardsprovidingclientspecificinvestmentsolutionsin
riskfree governmentinstrumentstocorporations,institutions,welfare trusts,individualsetc.
The products offeredare:
 Market TreasuryBills(T-Bills)
 PakistanInvestmentBonds(PIBSs)
 Governmentof PakistanIjaraSukuk
Held for Trading involve Market treasury bills and Investment bonds, whereas securities.
Available for Sales include ordinary shares, preference shares, investment in related parties,
Sukuk bond, GOP Sukuk, GOP Ijara Sukuk, Foreign currency bond & term finance certificates.
The last category.
Held-To-Maturity involves TFC’s bonds, GOP Sukuk, GOP Ijara Sukuk, Bai Muajjal Placement &
Pakistan investment bonds.
Risk profile of the equity scheme poses low profile risk because of the low deviation of about
2.0%
Various Risk Factors Effecting Mutual Funds Industry
The risk factors that can effects mutual funds are the fluctuation in the prices of oil in
international market that can impact on the rate of inflation. With these two factors the
another important factor needs to be address in mutual fund is the currency value, IMF
tranches, tax measures, hike in gas tariffs, upsurge in international commodity prices etc.
Recommendations and conclusions
Based on above facts and figures it is concluded the UBL Fixed income Fund are ideal for
withstand short-term fluctuations in prices for longer-term gains and is safer for medium-term
(1 to 3 years) or your long-term (3 years or more) investment and they did not require the
access to our money for short-term but however minimum investment duration of at least one
year is recommended.

UBL (COMMODITY)
UBL Gold Fund(UGF)
This scheme offers you an opportunity to maximize the growth potential of your savings over
the long-term by investing your money in Gold based investments.
UBL Gold Fund (UGF) is the Pakistan’s first-ever gold based commodity fund that offers you a
convenient and safer way of investing in Gold (as an asset class) while eliminating drawbacks of
holding gold in physical form (such as High Storage Cost, Concern on Security/Theft, Concern on
Purity/Quality of Gold, etc.)
Fund Information
Minimums & Charges
Minimuminvestment Rs. 500
Minimumsubsequentinvestment Rs. 500
Investmentcharges/Front-endLoad 2%
Redemption(withdrawal) charges Nil
Managementfee (annual) 1.5% p.a.
FundFacts
Launch date February13, 2013
Fundtype Open-end
Fundcategory CommodityScheme
Fundrating N/A
Benchmark - 80% DailyClosingPakistanRupee (PKR) SpotGoldPricesatthe
PakistanMercantile Exchange (PMEX)
-20% Average of three (3) monthdepositratesof five (5),AA and
above ratedscheduledcommercialbanksforthe periodof
return.

How to Invest
Investment Procedure
Step 1:
Fill the Account Opening Form (Download Here) if you are a new investor. If you already have
an account with UBL Fund Managers, you need to fill the Additional Purchase Form (Download
Here).
Step 2:
Attach mandatory documents such as copy of CNIC to your application (complete list of
required documents is mentioned on the form).
Payment shall me made in favor of: CDC Trustee UBL Funds” or “CDC Trustee UBL Gold Fund”
Payment can be made in the form of Cheque, Pay Order, Demand Draft or Online Transfer (for
UBL Bank Account Holders only)
Step 3:
Send your application form along with the mandatory documents and payment proceeds to us.
To find out where you can submit your form, please contact us at 0800-00026. Once we receive
your duly filled application, we will send you a welcome letter and your account statement
confirming your investments with us.
It allows you to:

Own Gold based security without Concern for Safety and Affordability Provides hedge against
Gold prices Effective portfolio diversification – low correlation with stocks and bonds Open-end
Fund Structure – Ease of entry & exit, Attractive tax benefits, etc. Invest lump-sum or via SIP*
Mode – both facilities available *SIP stands for Systematic Investment Plan
A convenient mode of investing
You can systematically invest in UGF with regular contributions. Systematic investment (SIP) will
help investors not having lump-sum amount to invest in the fund to gradually build up their
exposure in Gold over the long term. . You have the option to withdraw your money, in part or
whole, at your convenience whenever the need arises, without incurring any charges.
For your investment needs
UGF provides you direct exposure to Gold as an asset class; thus allowing you to reap maximum
benefits of investing in Gold. .
If you are looking for a subsequent purchase of Gold Jewelry for your children’s wedding or for
a special occasion in the long term, investing your money in UGF can serve as an effective
hedge against rising Gold prices.
Investors seeking to effectively diversify their portfolio from stocks and bonds should also
consider investing in UGF. Gold has historically proven to have low correlation with stocks and
bonds – i.e. performance of gold is less dependent on the performance of stocks and bonds.
This makes Gold a very effective portfolio diversifier.
You can also enjoy exclusive tax benefits on your investment in UGF. Not just this, unlike a fixed
term deposit, there is no minimum holding period requirement in UGF, so while you may plan
to save for your investment goals, you can easily access your money, without any charges, any
time you want.
At a Glance
The objective of this scheme is to invest primarily in Gold based instruments to offer investors
portfolio diversification and opportunity for long term capital growth.
To view current and past returns click here
Features &Benefits
Hedge against Gold prices
Portfolio Diversification (diversify away from stocks and bonds)
No Security Concerns (You own a Gold based security in paper form)
A low cost and convenient mode of investing in Gold (You pay 10-20% premium to jewelers
over and above actual gold value of the jewelry)
Easy access to money (in part or whole)
No fixed-term holding period requirement

No charges on withdrawal
This scheme is ideal for you if you want to:
 Buy Gold Jewelry for your children’s wedding or for a special occasion in the long term
 Ensure maximum safety of your gold holdings (Gold in paper-form)
 Invest in Gold but do not have lump-sum amount to invest in or wary of investing due to
short term volatility in Gold. You can invest small sum of money in UGF on a regular
basis (such as on a monthly basis) to gradually build-up your holdings in Gold in the long
term and benefit from average price increase.
 Diversify your portfolio away from stocks and bonds
 Bullish on prospective of Gold in the medium term but does want to own physical gold
UBL Commodity (Gold) Performance
If we look at the past 11 years, 7 out of 11 instances show that equity investments have
outperformed all other asset classes under consideration. While annualized average returns
over the last 11 years have outperformed investments in Gold by around 3.5% per annum. It is
important to mention over here that higher returns do warrant an appropriate time horizon (at
least 3 years for equity investment) and ability to see the value of your investments to go down
in uncertain times.
Gold, while being second to equity in terms of 11-year annualized performance, has not
witnessed even a single instance of negative returns over the time horizon. I am not saying that
Gold prices could not fall; it’s just that this has not been the case over the last 11 years. In stark
contrast, since the start of 2013 till date (7th June 2013) gold prices have already fallen by
16.3% highlighting the volatility the asset class might present.
Description 3 Months 6 Months 1 Year 3 Years 5 Years Since Inception
UGF 4.73% ‐1.28% 10.35% 9.79% - ‐3.36%
Benchmark ‐2.18% 1.37% 10.80% 1.74% - ‐8.25%

Asset Allocation (% of Total Assets) Aug'16 Sep'16 Oct'16
Gold 81.00% 0.82 77.00%
T‐Bills 0 0.00% 0.00%
Cash 61.00% 0.62 65.00%
Others* ‐43% ‐44% ‐43%
Leverage Nil Nil Nil
UBL GOLD Performance
Fund Std Deviation 14.18%
Mkt Std. Deviation 14.17%
AnnualizedFundReturn (Daily Avg.) 2.93%
AnnualizedMarketReturn (DailyAvg.) 13.47%
Beta -0.05
Performance of the Year Jan to Dec 2013
Monthly
Yield
Jan-
13
Feb-
13
Mar-
13
Apr-
13
May-
13
Jun-
13
Jul-13
Aug-
13
Sep-
13
Oct-
13
Nov-
13
Dec-
13
CYTD
UGF - ‐1.91% 0.0101 ‐3.98% ‐4.40% ‐8.90% 0.0625 0.045 ‐4.17% ‐0.16% ‐3.91% ‐2.43% 0.1176
Benchmark - ‐2.36% 0.0036 ‐4.69% ‐4.77% ‐8.86% 0.078 0.054 ‐1.78% ‐0.31% ‐2.94% ‐4.87% ‐16.73%
Monthly
Yield
Jan-
14
Feb-
14
Mar-
14
Apr-
14
May-
14
Jun-
14
Jul-14
Aug-
14
Sep-
14
Oct-
14
Nov-
14
Dec-
14
CYTD
UGF 0.0337 0.0613 ‐2.02% 0.0091 ‐1.31% 0.0586 ‐2.30% 0.006 ‐4.73% ‐2.14% 0.0035 0.0291 0.0723
Benchmark 0.0401 0.0381 ‐5.37%
-
0.0078
-
0.0206 0.0435 ‐3.16% 0.0252 ‐4.09% ‐1.44% 0.0039 ‐0.29% ‐2.67%
Monthly
Yield
Jan-
15
Feb-
15
Mar-
15
Apr-
15
May-
15
Jun-
15
Jul-15
Aug-
15
Sep-
15
Oct-
15
Nov-
15
Dec-
15
CYTD
UGF 0.0567 ‐4.42% ‐1.45% ‐0.21% 0.0108 ‐1.07% ‐4.60% 0.0311 ‐0.94% 0.0224 ‐5.67% ‐0.14% ‐6.79%
Benchmark 0.0561 ‐2.88% ‐1.30% ‐0.28% 0.0128 ‐1.71% ‐4.46% 0.0372 ‐1.07% 0.037 ‐4.53% ‐0.71% ‐3.14%
Performance of the Year Jan to Oct 2016
Monthly
Yield
Jan-
16
Feb-
16
Mar-
16
Apr-
16
May-
16
Jun-
16
Jul-16
Aug-
16
Sep-
16
Oct-
16
Nov-
16
Dec-
16
CYTD
UGF 0.0466 0.0918 ‐0.44% 0.0432 ‐5.21% 0.0757 0.0163 ‐2.70% 0.0043 ‐2.51% - - 0.1715
Benchmark 0.0445 0.0756 0.0003 0.026 ‐3.88% 0.07 0.0076 ‐0.91% 0.008 ‐2.08% - - 0.1688

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