Funds Managed by: AKD Investment Management Ltd.

1st Quarter Report September 30, 2010 (Un-audited)

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AKD Investment Management Ltd. AKD Opportunity Fund Financial Statements - First Quarter FY11

Contents

32 Fund Information

33 Fund Manager’s Report

36 Condensed Interim Statement of Assets and Liabilities

37 Condensed Interim Income Statement

38 Condensed Interim Distribution Statement

39 Condensed Interim Cash Flow Statement

40 Condensed Interim Statement of Movement in Unit Holders’ Fund

41 Notes to and Forming Part of the Condensed Interim Financial Statements AKD AKD Opportunity Fund Opportunity Fund

MANAGEMENT COMPANY LEGAL ADVISER AKD Investment Management Limited Sattar & Sattar 216-217, Attorneys -at -law Continental Trade Centre, Block-8, 3rd Floor, UBL Building, Clifton, -74000 I.I. Chundrigar Road, Karachi TRUSTEE Central Depository Company REGISTRAR of Pakistan Limited Gangjees Registrar Services (Pvt.) Ltd. CDC House 99-B, Block-B 516, Clifton Centre, S.M.C.H.S., Main Shahra-e-Faisal, Karachi. Khayaban-e-Roomi, Kehkashan, Block-5, Clifton, Karachi. BANKERS Tel: 35375714 - 35836920. Limited Bank Al-Habib Limited DISTRIBUTORS Habib Metropolitan Bank Limited AKD Investment Management Limited KASB Bank Limited AKD Securities Limited MCB Bank Limited BMA Capital Management Limited Mybank Limited IGI Investment Bank Limited Standard Chartered Bank (Pakistan) Limited The The Bank of Punjab Accesss Financial Services (Private) Limited Al-Falah Securities (Private) Limited Foundation Securities (Private) Limited AUDITORS Reliance Financial Products (Private) Limited KPMG Taseer Hadi & Co. Bulls & Bulls (Private) Limited Chartered Accountants Sheikh Sultan Trust Building No. 2 RATING - AKDOF Beaumont Road, Karachi. JCR-VIS: MFR 2-Star AKD Opportunity Fund - Quarterly Report September 2010

FUND MANAGER'S REPORT

Fund Performance in 1QFY11

The AKD Opportunity Fund achieved a positive return of 4.84% in 1QFY11 as compared to 3.00% for the Benchmark, the KSE-100 index. The fund thus outperformed the Index by 1.84%.

The out-performance was as a result of strong showing by companies in the Refining, Utilities and Textile sectors. Gas Utilities sector delivered a stellar performance. This was on the back of positive regulatory change for companies within the sector where the regulator increased the Unaccounted for Gas (UFG) limits from 5.5% to 7%. The older UFG limits significantly hurt the profitability of the companies within the sector as the penalties associated with breaching those limits added to the cost of doing business for the companies. The increase in limits means that there will be a greater threshold for UFG to occur and hence the penalties would reduce, thereby enhancing profitability of the companies within this sector.

The Refining sector, particularly National Refinery Limited, was expected to perform well owing to superior performance of the lube segment that helped the company post phenomenal profit. As a result the company was able to pay a healthy dividend that further bolstered return to shareholders. The Textile segment continued to benefit from rising cotton prices and subsequently the price of end products was duly affected. This, along with Pak Rupee depreciation, led to yet another profitable season thus benefiting the Fund with positive investment appreciation.

The Fund continues to remain fully invested maintaining limited cash. Equity asset class now forms 99.55% of the total net assets which is reflective of our near term view of strong market performance owing to broad-based undervaluation of Pakistan market relative to the region. The top five sectors changed over the quarter with Chemicals (22.17%), Banks (11.76%), Oil and Gas (11.21%), Gas and Water Utilities (10.45%) and General Industries (6.20%) occupying top slots towards the end of the 1QFY11. This is in contrast to the position held in June 2010 with Chemicals (22.30%), Banks (12.44%), Oil and Gas (10.93%), Gas and Water Utilities (7.88%) and Fixed Line Telecommunications (6.17%) making up a bulk of the portfolio.

The following table shows weighting deviations from the Benchmark for key sector exposures of the Fund and indicates where significant over/under performance can be attributed to. It will be noted that the large overweight positions in Chemicals and Gas and Water Utilities helped the Fund's performance in 1QFY11. The performance was further improved by Banks' underweight position as well as the over-weight position in Fixed-Line Telecommunications. On the other hand, large underweight position in the Oil and Gas E&P sector created a drag.

AKDOF Key Sector Weightings vs. KSE-100

June 2010 KSE-100 Sector SECTOR O/U Weight* Performance AKDOF KSE-100 (Jun10 to Sep10) Weight Weight

Chemicals 22.30% 8.49% 13.8% O-Weight 1.69% Banks 12.44% 23.28% -10.8% U-Weight -7.18% Oil & Gas 10.93% 39.10% -28.2% U-Weight 1.23% Gas Water & Utilites 7.88% 1.06% 6.8% O-Weight 43.68% Fixed Line Telecommunication 6.17% 3.80% 2.4% O-Weight 5.02% *O/U: Over/Under Weight

33 AKD Opportunity Fund - Quarterly Report September 2010

Equity Market Dynamics

During the period under review (July 01 - Sep 30, 2010) the KSE-100 Index showed a gain of 3.0%. This was actually a mediocre performance given that emerging markets in general and Asian markets in particular, saw record inflows of Foreign Portfolio Investment (FPI) during the last quarter. Macro economic weakness, lack of movement towards structural reforms (RGST, Circular Debt, high government borrowing) and stand off between the Judiciary and the Executive branches of government kept Pakistan discount to regional markets at an elevated level.

Indeed, it is unfortunate that at a time when global capital flows are heading towards emerging markets, especially Asia, lack of focus on economic reforms is causing Pakistan to miss out on a huge opportunity to attract investment. This window of opportunity is narrow. There is strong evidence over many decades that when developed markets' - especially the U.S. - monetary policy is loose and interest rates low, as is the case at present, capital flows into riskier asset classes such as emerging market debt and equities. In Pakistan, there is hardly any depth in the debt (Fixed Income) market, so our capital market is effectively the stock market. And here we are missing out in a big way because of government's inability to tackle serious economic imbalances and governance issues. These opportunities are not easily recurring. If we miss them now, it may be a long time before we get another window of opportunity. By that time, the world would have moved on far ahead. In today's era with rapid technology driven progress, even standing still means being left behind.

For domestic stock market investors whether direct, or indirect via equity mutual funds such as the AKDOF, there is however a silver lining in the near term despite lack of longer term visibility regarding the macro environment.

Stocks markets are driven by a combination of factors. Chief amongst them being sentiment, liquidity, valuations and earnings outlook, as well as returns on competing investments ranging from 'risk free' government securities, bank deposits, NSS, to gold, foreign currency (via exchange rate changes), real estate and other alternative investments.

In the case of Pakistan stock market, general sentiment remains cautious due to macro level uncertainties - both economic and socio political. However, the outlook for corporate earnings has been improving and with it the valuation attractiveness. For example, the EPS growth for KSE-100 companies bounced back from below 5% in 2009 to over 18% in 2010. At the same time, for non-financial universe, gross margin reverted back to 18.2% in 2010 versus 17.4% in 2009 and net margin improved to 7.3% from 7.0% during this period.

Going forward, despite initial setbacks due to recent flooding, corporate sector represented in the KSE-100 is showing signs of quick recovery. As a result, forward PER (FY11) for KSE-100 is close to 8x. This compares to an average of 17x for Asian emerging markets. Thus on valuation basis, the Pakistan market discount to the region is at the larger end of its historic range at present. If one excludes OGDC, the forward PER is near 7x, implying an earnings yield of over 14% and indicating even more attractive valuation.

34 AKD Opportunity Fund - Quarterly Report September 2010

In terms of liquidity, it is true that 's tight monetary policy (high discount rate) is a negative for equities as an asset class while large government borrowing is crowding out private sector credit. Paradoxically however, while businesses are starved for credit there is a buildup of liquidity in the business community as larger, longer-term fixed investment is almost at a standstill. This includes real-estate which historically used to absorb such liquidity. With the central bank raising domestic rates continually and developed market rates, especially on US dollar, expected to remain low for some while yet, the near term risk-reward ratio favors domestic financial assets. The margin financing product expected to be implemented soon, has the potential to draw in this excess liquidity into the equity market. In tandem with the above trend of FPI flows into emerging markets, Pakistan market continues to witness the trickle down effect of inflows. If the KSE-100 advances with improved volumes in October and the margin financing product is implemented, Pakistan equities may yet show a reversal of trend in 3QCY10 when the KSE-100 ended up being the worst performing market in emerging Asia ex-Japan.

Investment Strategy

In view of the above our equity funds' investment strategy is to remain nearly fully deployed in the market with focus on stocks having catch-up potential in terms of valuation attractiveness but also strong fundamentals. For the fixed income side we continue to favor short duration government securities in order to reduce reinvestment risk and ride the ascending interest rate outlook.

35 AKD Opportunity Fund - Quarterly Report September 2010

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES AS AT SEPTEMBER 30, 2010 (Un-audited) (Audited) September 30, June 30, 2010 2010 Note (Rupees In ‘000) ASSETS

Investments 4 465,191 479,547 Bank balances 549 2,707 Dividend and profit receivable 1,218 568 Security deposits & Prepayments 2,630 2,600 Total Assets 469,588 485,422

LIABILITIES

Payable to management company 188 1,221 Remuneration payable to the trustee 77 79 Annual fee payable to Securities and Exchange Commission of Pakistan 114 629 Payable on redemption of units 7,162 534 Accrued expenses and other liabilities 493 306 Worker's Welfare Fund 3,937 3,937 Unclaimed dividend 15 15 Total Liabilities 11,986 6,721

CONTINGENCIES AND COMMITMENTS 5 - -

NET ASSETS 457,602 478,701

Unit Holders' Fund (as per statement attached) 457,602 478,701

(Number of Units)

Number of units in issue 16,834,775 11,611,089

(Rupees)

Net assets value per unit (face value per unit Rs.50/-) 27.18 41.23

The annexed notes from 1 to 9 form an integral part of these condensed interim financial statements. For AKD Investment Management Limited (Management Company)

Nadeem Naqvi Imran Motiwala Chief Executive Officer Director

36 AKD Opportunity Fund - Quarterly Report September 2010

CONDENSED INTERIM INCOME STATEMENT (UNAUDITED) FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2010 Quarter ended September 30 2010 2009 Note (Rupees In ‘000) INCOME

Investment Income Capital gain on sale of investments 5,848 63,271 Dividend income 1,071 6,424 Profit / return on - bank deposits 104 2,604 - investment in debt securities 629 1,420 Unrealised appreciation on remeasurement of investment at fair value through profit or loss - held for trading 18,651 108,219 26,303 181,938 Other Income Element of income / (loss) and capital gains / (losses) included in prices of units sold less those in units redeemed (126,809) 8,303 (100,506) 190,241

OPERATING EXPENSES

Remuneration to management company 3,591 5,786 Remuneration to trustee 239 386 Annual fee to Securities and Exchange Commission of Pakistan 114 183 Securities transaction cost 57 873 Auditors' remuneration 61 61 Others 65 171 4,127 7,460 Net (loss) / income for the period (104,633) 182,781

Other Comprehensive Income - -

Total comprehensive (loss) / income for the period carried to distribution statement (104,633) 182,781

Earnings per unit 2.2

The annexed notes from 1 to 9 form an integral part of these condensed interim financial statements.

For AKD Investment Management Limited (Management Company)

Nadeem Naqvi Imran Motiwala Chief Executive Officer Director

37 AKD Opportunity Fund - Quarterly Report September 2010

CONDENSED INTERIM DISTRIBUTION STATEMENT (UNAUDITED) FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2010 Quarter ended September 30 2010 2009 (Rupees In ‘000)

Undistributed (loss) / income brought forward - Realised 58,665 84,327 - Unrealised (160,521) (379,104) (101,856) (294,777)

Net (loss) / income for the period (104,633) 182,781

Distribution: Bonus units issued for the year ended June 30, 2010 (@ Rs.15.30 per unit distributed on July 08, 2010) (177,650) - (282,283) 182,781

Unallocated (loss) carried forward (384,139) (111,996)

Represented by: - Realised (248,165) 16,868 - Unrealised (135,974) (128,864) (384,139) (111,996)

The annexed notes from 1 to 9 form an integral part of these condensed interim financial statements.

For AKD Investment Management Limited (Management Company)

Nadeem Naqvi Imran Motiwala Chief Executive Officer Director

38 AKD Opportunity Fund - Quarterly Report September 2010

CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED) FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2010 Quarter ended September 30 2010 2009 (Rupees In ‘000) A. CASH FLOWS FROM OPERATING ACTIVITIES

Net (loss) / income for the period (104,633) 182,781 Adjustments for: Unrealised appreciation on remeasurement of investment at fair value through profit or loss' - held for trading (18,651) (108,219) Element of income / (loss) and capital gains / (losses) included in prices of units sold less those in units redeemed 126,809 (8,303) 3,525 66,259 (Increase) / decrease in assets Investments 33,007 15,147 Receivable against sale of securities / investments - (1,583) Dividend and profit receivable (650) (2,658) Security deposits (30) (30) 32,327 10,876 Increase / (decrease) in liabilities Payable to management company (1,033) 208 Remuneration payable to trustee (2) 14 Annual fee payable to Securities and Exchange Commission of Pakistan (515) (940) Payable against purchase of securities - 12,291 Payable on redemption of units 6,628 49 Accrued expenses and other liabilities 187 820 5,265 12,442 Net cash generated from operating activities A 41,117 89,577

B. CASH FLOWS FROM FINANCING ACTIVITIES

Dividend paid during the period - (4) Amount received on issue of units 20,446 72,973 Amount paid on redemption of units (63,721) (81,109) Net cash used in financing activities B (43,275) (8,140)

Net (decrease) / increase in cash and cash equivalents during the period A+B (2,158) 81,437 Cash and cash equivalents at beginning of the period 2,707 90,644 Cash and cash equivalents at end of the period 549 172,081

The annexed notes from 1 to 9 form an integral part of these condensed interim financial statements.

For AKD Investment Management Limited (Management Company)

Nadeem Naqvi Imran Motiwala Chief Executive Officer Director

39 AKD Opportunity Fund - Quarterly Report September 2010

CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUNDS (UNAUDITED) FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2010

Quarter ended September 30 2010 2009 (Rupees In ‘000)

Net assets at beginning of the period 478,701 704,424

Amount received on issue of units : Number of units Issued during the period 2010 : 764,538 units (2009: 1,704,609 units) 20,446 72,973

Amount paid on redemption of units : Number of units redeemed during the period 2010: 2,392,532 units (2009: 2,033,397 units) (63,721) (81,109) (43,275) (8,136)

Final distribution of 6,851,680 bonus units for the year ended June 30, 2010 177,650 -

Element of income and capital gains included in prices of units sold less those in units redeemed 126,809 (8,303)

Total comprehensive income / (loss) for the period after distribution (282,283) 182,781

Net assets at end of the period 457,602 870,766

(Rupees)

Net assets value per unit (face value per unit Rs.50/-) 27.18 44.30

The annexed notes from 1 to 9 form an integral part of these condensed interim financial statements.

For AKD Investment Management Limited (Management Company)

Nadeem Naqvi Imran Motiwala Chief Executive Officer Director

40 AKD Opportunity Fund - Quarterly Report September 2010

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2010

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 AKD Opportunity Fund (the Fund) was established under a Trust Deed executed between AKD Investment Management Limited (AKDIML) as the Management Company and Central Depository Company of Pakistan Limited (CDC) as the Trustee. The Trust Deed was executed on December 7, 2005 and was approved by the Securities and Exchange Commission of Pakistan (SECP) on December 19, 2005 in accordance with the Non- Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules).

1.2 The Management Company of the Fund has obtained a license to act as an Asset Management Company under the NBFC Rules from SECP. Registered office of the Management Company is situated at Continental Trade Centre, Block-8, Clifton, Karachi, in the province of Sind.

1.3 It is an open-ended mutual fund and is listed on the Karachi . Its units are offered for public subscription on a continuous basis. The units are transferable and can be redeemed by surrendering the same to the Fund.

1.4 Pursuant to SECP Circular No.7 of 2009, the Board of Directors of AKD Investment Management Limited has opted for Equity Scheme, by virtue of which the Fund can be invested in the following proportion:

i) At least 70% of its net assets shall remain invested in listed equity securities during the year based on quarterly average investment calculated on daily basis:

ii) The remaining net assets shall be invested in cash and / or near cash instruments which include cash in bank accounts (excluding TDRs), and treasury bills not exceeding 90 days maturity; and

iii) It shall not take exposure to Continuous Funding System (CFS).

1.5 Title to the assets of the Fund are held in the name of Central Depository Company Limited as a trustee of the Fund.

1.6 Management Quality rating of 'AM3' has been assigned to the Management Company on September 14, 2010 and Mutual Fund Performance Ranking (MFP) of 'MFR 2-Star' as one year rating has been assigned to the Fund on July 29, 2010 by JCR-VIS Credit Rating Company Limited.

41 AKD Opportunity Fund - Quarterly Report September 2010

2. STATEMENT OF COMPLIANCE

2.1 These condensed interim financial statements have been prepared in accordance with requirements of Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the NBFC Regulations), Non-Banking Finance Companies (Establishment and Regulation) Rules 2003 (the NBFC Rules), the Trust Deed, the Companies Ordinance, 1984 ( the Ordinance), directives issued by the Securities and Exchange Commission of Pakistan (SECP) and approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRSs) as are notified under the provisions of the Ordinance. Wherever, the requirements of the NBFC Rules, the NBFC Regulations, the Ordinance or directives issued by SECP differ with the requirements of these standards, the requirements of the NBFC Rules, the NBFC Regulations, the Ordinance and the said directives issued by SECP shall prevail.

2.2 Earnings per unit

Earnings per unit (EPU) has not been disclosed as in the opinion of the management, determination of weighted average units for calculating EPU is not practicable.

2.3 These condensed interim financial statements are unaudited.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies and methods of computation followed for the preparation of these condensed interim financial statements are the same as those applied in preparing of the published annual financial statements of the Fund for the year ended June 30, 2010. Un-audited Audited September 30, June 30, 2010 2010 Note (Rupees In ‘000) 4. INVESTMENTS

Investments in securities at fair value through profit or loss - held for trading

- Quoted equity securities 4.1 455,555 461,733 - Term finance certificates - unquoted 4.2 9,636 17,814 465,191 479,547

42 AKD Opportunity Fund - Quarterly Report September 2010 2.00 0.11 0.79 0.48 0.23 0.06 4.71 0.47 1.50 0.12 3.21 3.91 1.24 0.35 0.25 5.75 4.47 8.89 0.11 1.70 0.33 5.23 0.08 5.31 0.81 2.86 11.57 11.03 10.28 10.28 Total market value of investment Fund of the Percentage in relation to Net assets Unrealised (diminution) appreciation/ Book value Market value Balance as at September 30, 2010 Balance as at September 69,098 59,535 53,829 11.76 45,658 26,848 26,731 79,757 47,630 51,300 5.84 11.21 25,669 25,320 47,808 10.45 35,636 28,137 24,720 5.40 Cost ------Rupees in '000' ------2010 As at Sep 30 Sales period during the Bonus / Rights issue Number of Shares / Certificates / Units Number of Shares / Certificates period Purchases during the

240,470 - - - 240,470 18,271 9,592 9,318 (274) 2.04 2009 As at July 01 Name of Investee Unless stated otherwise - the holding are in the fully paid Ordinary Shares / certificates / Units of Rs 10/- each Electronic and Electrical Equipment Pakistan Cables Limited 8,926 - - - 8,926 432 482 531 49 0.12 Banks Bank AlFalah Limited Bank AlHabib Limited Bank of Khyber United Bank Limited Habib Metropolitan Bank Limited NIB Bank Limited First Credit & Investment Bank Limited Summit Bank Limited 1,145,070 450,000 2,346,900 72,106 312,872 5,000 - - - - 823,471 231,669 - 156,900 ------1,145,070 - 2,346,900 450,000 - - - 72,106 29,942 7,041 - 5,692 312,872 - 5,000 1,960 - 27,367 823,471 5,633 231,669 4,257 1,415 156,900 2,271 21,917 301 3,739 6,970 1,490 3,690 1,183 17,518 (5,450) 2,239 271 2,462 1,337 1,061 (567) 832 Pakistan National Shipping Corporation Limited 15,259 4.79 (32) 2,190 257 1.52 14,940 (122) 0.81 565 0.49 (272) (14) (319) 0.23 (267) 0.48 0.06 3.26 0.12 Personal Goods Artistic Denim Limited Amtex Limited Nishat Mills Limited Nishat (Chunian) Limited Din Textile Mills Limited Construction and Materials D.G. Khan Cement Company Limited Oil and Gas 905,613 National Refinery Limited 1,000,000 Pakistan Refinery Limited 125,000 150,000 - Pakistan Limited 50,000 - - 100,000 22,551 - - 224,839 250,000 - - 8,900 - 99,502 - - - 130,000 - - - 25,452 - 150,000 - 870,000 - 905,613 - - 47,099 - 100,000 125,000 27,638 - - 35,497 - 100,000 20,200 1,280 1,650 20,549 18,493 7,231 150,000 204,639 - - 1,315 - 1,650 20,810 18,203 5,390 64,161 2,097 8,900 99,502 1,170 - 1,608 261 (290) 5,750 37,418 1,497 1,066 12,433 (145) (42) - 41,349 4.55 3.98 360 1,524 8,016 699 0.26 3,931 0.35 - 1.26 7,908 27 519 9.04 - (108) 0.33 (180) 1.73 - 0.11 Gas Water and Multiutilities Sui Northern Gas Pipeline Limited Limited Electricity Kohinoor Energy Limited Sitara Energy Limited 1,953,873 238,724 Industrial Metals and Mining Huffaz Seamless Pipe Industries limited 50,000 Industrial Engineering - AL-Ghazi Tractors Limited * 1,048,500 241,676 Industrial Transportation - 17,651 - 425,000 - - 238,724 1,578,873 62,100 - - - 25,669 - - - 25,320 - - - 1,048,500 47,808 - - 241,676 22,488 35,228 - 17,651 7,976 - 27,775 10.45 62,100 3,516 408 - 24,325 13,702 3,761 362 - (3,450) 12,562 245 395 5.32 - 13,294 0.82 33 732 - 0.09 2.91 4.1 - Held for trading value through profit and loss equity securities at fair Quoted

43 AKD Opportunity Fund - Quarterly Report September 2010 6.08 9.95 4.57 7.29 6.10 1.06 5.92 2.77 6.08 21.81 Total Total market value of investment market value of investment Fund of the Fund of the Net assets Percentage in relation to Net assets Unrealised (diminution) appreciation/ Unrealised (diminution) appreciation/ Fair value Market value Balance as at September 30, 2010 Balance as at September Cost Book Value ------Rupees in '000' ------151,993 104,312 101,468 22.17 Cost Book value ------Rupees in '000' ------2010 As at June 30, 2010 As at Sep 30 Sales/ period during the Redeemed June 30, 2010 18,141 17,581 17,814 233 September 30, 2010 9,418 9,496 9,636 140 Sales period during the period Number of Certificates as at September 30, 2010 Balance Percentage in relation to September 30, 2010 June 30, 2010 591,747 437,044 621,927 455,555 487,878 18,511 461,733 (26,145) Purchases during the Bonus / Rights issue 2009 As at July 01 Number of Shares / Certificates / Units Number of Shares / Certificates period Rate Semi Purchases during the Coupon Annually 3M Kibor plus 23,203 27,534 28,276 6.18

111,339 - - 111,339 ------2009 As at Tenor July 01 Name of Investee Name of the Investee Unless stated otherwise - the holding are in the fully paid Ordinary Shares / certificates / Units of Rs 10/- each Chemicals Dawood Hercules Limited Sitara Chemical Industries Limited Clariant Pakistan Limited 177,200 293,319 210,050 ------13,870 177,200 279,449 - 53,264 59,925 210,050 23,910 49,029 38,804 21,245 46,302 31,373 (2,665) (2,727) 33,921 10.12 4.64 2,548 7.41 General Industrials Thal Limited * Pharma and Bio Tech Otsuka Pakistan Limited Support Services TRG Pakistan Limited Beverages Company Limited 170,500 267,120 137,500 6,905,950 * Ordinary shares of face value Rs.5/- each ------170,500 267,120 - 137,500 6,905,950 12,788 35,748 12,625 31,553 25,360 5,789 11,495 28,383 28,358 4,911 12,885 27,555 2,998 (878) 1,390 (828) 6.20 1.07 2.82 6.02 Fixed Line Telecommunication Pak Datacom Limited Pakistan Telecommunication Company Limited 245,882 - - - 245,882 23,203 27,534 28,276 742 6.18 JDW Sugar Mills Limited(face value Rs 5,000 each)WorldCall Telecom Limited (face value Rs 5,000 each) 6 Years quarterly basis 5 Years 6M Kibor plus 2,000 1.25% p.a. 2,000 1.6% p.a. - - 2,000 - - 2,000 - 9,418 - 9,496 9,636 - 140 - 2.11 - 2.07 - 4.2 Term finance certificates unquoted - Held for trading 4.1 - Held for trading value through profit and loss equity securities at fair Quoted

44 AKD Opportunity Fund - Quarterly Report September 2010 in net assets shall be invested net assets shall be invested % of Net Assets % of Gross Assets after provision Value of investment the basis of categorisation criteria laid down in the the basis of categorisation Provision held if any criteria requires that the remaining criteria requires that the remaining ------Rupees in '000' ------before provision Value of investment (ii) of the said investment Type of investment cash and/ or near cash instruments which include cash in bank accounts (excludng TDRs), and treasury bills not exceeding which include cash in bank accounts (excludng cash and/ or near cash instruments 90 days maturity. except as follows: Fund is compliant with the above-mentioned requirements, At September 30, 2010, the criteria of assigned catogery Details of non-complaint investments with the investment circular. AKD Investment Management Limited (Management Company) classified AKD Opportunity Fund (the Fund) as the said circular. 'Equity' in accordance with In accordance with clause (i) of the investment criteria laid down for 'Equity scheme', the Fund is required to have at least 70% of its net assets invested in listed equity securities during the year based on quarterly average investment calculated on daily basis. Moreover, clause The Securities and Exchange Commission of Pakistan vide circular no. 7 of 2009 dated March 6, 2009 required all Asset to classify funds under their management on Management Companies WorldCall Telecom Limited Term Finance Certificate 9,636 - 9,636 2.11% 2.05% Name of non-compliant investment 4.3 STATUS WITH THE INVESTMENT CRITERIA AS SPECIFIED BY THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

45 AKD Opportunity Fund - Quarterly Report September 2010

5. CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at September 30, 2010 and June 30, 2010.

6. TAXATION

The Fund is exempt from tax under clause 99 of Part 1 of Second Schedule to the Income Tax Ordinance, 2001 (the Ordinance), subject to the condition that not less than 90% of its accounting income for the year, as reduced by the capital gains whether realised or unrealised, is distributed among its unit holders.

The Fund is also exempt from the provisions of Section 113 (minimum tax) under Clause 11 of Part IV of the Second Schedule to the Income Tax Ordinance, 2001.

7. TRANSACTIONS WITH CONNECTED PERSONS / RELATED PARTIES

Connected person include AKD Investment Management Limited, being the asset management company of the Fund, Aqeel Karim Dhedhi Securities (Private) Limited, AKD Securities Limited being the associated companies of the management company, Central Depository Company of Pakistan Limited being the trustee, other collective investment schemes managed by the Management Company and directors and officers of the Management Company and their connected persons.

Remuneration payable to the management company and trustee is determined in accordance with the provisions of the NBFC Regulations and Trust Deed respectively.

Details of transactions and balances with connected persons are as follows: Quarter ended September 30 2010 2009 (Rupees In ‘000) 7.1 Transactions during the year

AKD Investment Management Limited - Management Company Remuneration 3,591 5,786 Sales load 2 212 Issue of bonus - 9,578 units (2009: Nil units) 248 -

Aqeel Karim Dhedhi Securities (Pvt) Limited - Staff Providend Fund Issue of bonus - 11,802 units (2009: Nil units) 306 - Value of units redeemed - Nil units (2009: 15,261 units) - 578

AKD Investment Management Limited - Staff Providend Fund Issue of bonus - 3,468 units (2009: Nil units) 90 -

AKD Securities Limited- Brokerage House Value of units issued 463,129 units (2009: Nil units) 12,500 - Commission paid on purchase and sale of marketable securities - 62

Central Depository Company of Pakistan - Trustee Remuneration 239 386 CDS charges 4 21

46 AKD Opportunity Fund - Quarterly Report September 2010

Un-audited Audited September 30, June 30, 2010 2010 (Rupees In ‘000) 7.2 Balances outstanding at year end

Payable to AKD Investment Management Limited Remuneration 188 1,191 Sales load - 30

Payable to Central Depository Company of Pakistan Ltd. - Trustee Remuneration 77 79

Directors and officers of the fund (Number of Units)

AKD Investment Management Limited Units held 25,809 16,231

AKD Securities Limited Units held 463,129 -

AKD Investment Management Limited Staff Provident Fund Units held 9,345 5,877

Aqeel Karim Dhedhi Securities (Pvt.) Limited Staff Provident Fund Units held 31,802 20,000

8. DATE OF AUTHORISATION FOR ISSUE

These condensed interim financial statements were authorized for issue on October 29, 2010 by the Board of Directors of the management company.

9. GENERAL

Figures have been rounded off to the nearest of thousand rupees.

For AKD Investment Management Limited (Management Company)

Nadeem Naqvi Imran Motiwala Chief Executive Officer Director

47 216-217, Continental Trade Centre, Block-8, Clifton, Karachi-74000 U.A.N : 92-21-111-AKDIML (111-253-465) Fax : 92-21-35373217, 35303125 E-mail : [email protected] Website : www.akdinvestment.com

Islamabad Branch: Lahore Branch: Multan Branch: Suite # 302 - 303, Suite # 512-513, 5th Floor B.F 2/III, 2nd Business Floor, New ISE Tower, Main Jinnah Avenue, Building, ChenOne Tower, Blue Area, Islamabad 19, Khayaban-e-Aiwan-e-Iqbal Road, Lahore 74 Abdali Road, Multan Tel: 051-2894316-18, Fax: 051-2894319 Tel: 042-36280916-8, Fax: 042-36280919 Tel: 061-4512728 - 29