Ÿþn B P S a R M a Y a I Z a F a F U N D 2 0 2 0 1

NBP SARMAYA IZAFA FUND NBP SARMAYA IZAFA FUND

MISSION STATEMENT

To rank in the top quartile in performance of NBP FUNDS relative to the competition, and to consistently offer Superior risk-adjusted returns to investors.

01 NBP SARMAYA IZAFA FUND

FUND'S INFORMATION 03

DIRECTORS' REPORT 05

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES 11

CONDENSED INTERIM INCOME STATEMENT 12 Contents

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME 13

CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND 14

CONDENSED INTERIM CASH FLOW STATEMENT 15

NOTES TO AND FORMING PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS 16

02 NBP SARMAYA IZAFA FUND

FUNDS INFORMATION Management Company NBP Fund Management Limited - Management Company Board of Directors of Management Company Shaikh Muhammad Abdul Wahid Sethi Chairman Dr. Amjad Waheed Chief Executive Officer Mr. Saad ur Rahman Khan Director Syed Hasan Irtiza Kazmi Director Mr. Ali Saigol Director Mr. Imran Zaffar Director Mr. Khalid Mansoor Director Mr. Humayun Bashir Director Mr. Saad Amanullah Khan Director Company Secretary & COO Mr. Muhammad Murtaza Ali Chief Financial Officer Mr. Khalid Mehmood Audit & Risk Committee Mr. Saad Amanullah Khan Chairman Syed Hasan Irtiza Kazmi Member Mr. Imran Zaffar Member Mr. Humayun Bashir Member Human Resource Committee Mr. Khalid Mansoor Chairman Shaikh Muhammad Abdul Wahid Sethi Member Mr. Ali Saigol Member Mr. Humayun Bashir Member Strategy & Business Planning Committee Mr. Humayun Bashir Chairman Mr. Saad ur Rahman Khan Member Mr. Ali Saigol Member Mr. Imran Zaffar Member Mr. Saad Amanullah Khan Member Trustee Central Depository Company of Pakistan Limited CDC House, 99-B, Block "B" S.M.C.H.S., Main Shahra-e-Faisal, Karachi. Bankers to the Fund MCB Bank Limited Summit Bank Limited JS Bank Limited Meezan Bank Limited Habib Bank Limited United Bank Limited Bank Alfalah Limited Bank Al Habib Limited Askari Bank Limited Habib Metropolitan Bank Limited Allied Bank Limited National Bank of Pakistan Zarai Taraqiati Bank Limited MCB Islamic Bank Limited Faysal Bank Limited Soneri Bank Limited Dubai Islamic Bank Limited Telenor Microfinance Bank Limited Bank Islami Pakistan Limited U Microfinance Bank Limited The Bank of Punjab First Microfinance Bank Limited

03 NBP SARMAYA IZAFA FUND

Auditors A.F. Ferguson & Co. Chartered Accountants State Life Building No. 1-C I.I. Chundrigar Road, P.O.Box 4716 Karachi. Legal Advisor Akhund Forbes D-21, Block 4, Scheme 5, Clifton, Karachi 75600, Pakistan. Head Office: 7th Floor Clifton Diamond Building, Block No. 4, Scheme No. 5, Clifton Karachi. UAN: 021 (111-111-632), (Toll Free): 0800-20002, Fax: (021) 35825329 Website: www.nbpfunds.com Lahore Office: 7-Noon Avenue, Canal Bank, Muslim Town, Lahore. UAN: 042-111-111-632 Fax: 92-42-35861095 Islamabad Office: 1st Floor, Ranjha Arcade Main Double Road, Gulberg Greens, Islamabad. UAN: 051-111-111-632 Fax: 051-4859031 Peshawar Office: Opposite Gul Haji Plaza, 2nd Floor National Bank Building University Road Peshawar, UAN: 091-111 111 632 Fax: 091-5703202

Multan Office:

Khan Center, 1st Floor, Abdali Road, Multan. Phone No. : 061-4540301-6, 061-4588661-2 & 4

04 NBP SARMAYA IZAFA FUND

DIRECTORS REPORT

The Board of Directors of NBP Fund Management Limited is pleased to present the unaudited Condensed Interim financial statements of NBP Sarmaya Izafa Fund (NSIF) for the quarter ended September 30, 2020.

Fund's Performance

The size of NBP Sarmaya Izafa Fund has increased from Rs. 1,258 million to Rs.1,375 million during the period, i.e. a increase of 9%. During the period, the unit price of NBP Sarmaya Izafa Fund has increased from Rs. 14.6242 on June 30, 2020 to Rs. 16.1226 on September 30, 2020, thus showing an increase of 10.2%. The Benchmark increase during the same period was 9.3%. Thus, the Fund has outperformed its Benchmark by 0.9% during the period under review. Since inception the NAV of the Fund has increased from Rs. 4.4462 (Ex-Div) on August 20, 2010 to Rs. 16.1226 on September 30, 2020, thus showing an increase of 262.6%. During the said period, the Benchmark increased by 146.7%, translating into outperformance of 115.9%. This performance is net of management fee and all other expenses.

Carrying forward the positive momentum, the stock market depicted robust performance during 1QFY2021 as the benchmark KSE-100 Index surged by 17.9%. To put things into perspective, after tumbling to a multi-year low level of 27,229 in March this year, the stock market staged a strong 17.8% recovery during 4QFY20. This impressive market performance was mainly driven by encouraging development on the healthcare front. The active cases of Covid-19 after peaking at 109,000 in July, dropped to 9,000 at the end of September; the fatality rate fell sharply, and ratio of new infections to tests also fell to a low single-digit.

The improvement on the pandemic front allowed re-opening of the economy, which picked-up steam earlier than expected as evidenced by the frequently released economic data such as electricity consumption, retail fuel sales, and industrial output (cement, fertilizers, automobiles, textiles). The encouraging development on the healthcare front and improving economic activity, sparked optimism in investors. External account has so far remained beneficiary of the Coronavirus as workers' remittances have shown a hefty 31% growth in 1QFY21 on a year-on-year basis. Resultantly, the country has posted current account surplus of USD 805 million in the first 2 months of FY2021 versus current account deficit of USD 1,241 million in corresponding period last year.

Looking at the sector wise performance of the market, Automobiles, Cements, Engineering, Glass & Ceramics, Oil & Gas Marketing Companies, Paper & Board, Refineries, Technology and Textiles outperformed the market, while Commercial Banks, Fertilizers, Food & Personal Care, Oil & Gas Exploration, Pharmaceuticals, Power Generation and Distribution and Transport sectors lagged behind. In terms of participant-wise activity, Individuals remained the largest buyers during the quarter with net inflows of USD 108 million. Alongside, Mutual Fund and Insurance were also net buyers, adding positions worth USD 26 million and USD 21 million, respectively. On the other hand, Foreigners and Banks/DFIs were the largest sellers in the market with net outflows amounting to USD 95 million and USD 53 million, respectively.

The market saw pick-up in issuance of debt securities in the primary market as companies turned to capital market for working capital and long-term financing. The trading activity also improved that stood at Rs. 6.7 billion in 1QFY21 billion versus Rs. 2.8 billion in 1QFY20. During 1QFY21, the State Bank of Pakistan (SBP) held Monetary Policy Committee (MPC) meeting in September 2020 and, in line with the market expectation, left the Policy Rate unchanged at 7%. The SBP cited that the outlook for growth and business confidence has improved since the last review. The CPI inflation clocked in at 9% for September 2020, above the market consensus due to spike in prices of perishable food items. During the period under review, T-Bills yields increased by 44 bps, 55 bps, and 59 bps for 3-month, 6-month, and 12- month tenures, primarily due to demand versus supply side factors. Long-term sovereign yields responded to the above expected inflation readings and the market expectation of bottoming out of the Policy Rate as yields on PIBs witnessed an increase of 76 bps, 102 bps and 106 bps for 3-year, 5-year, and 10-year tenures, respectively. The SBP held six T- Bills auctions during the period, realizing a total of Rs. 1.5 trillion against the maturity of Rs. 1.9 billions and target of Rs. 1.9 trillion. The SBP held three (3) fixed rate PIB auctions during the period, realizing a total of Rs. 249 billion.

05 NBP SARMAYA IZAFA FUND

The Fund has earned a total income of Rs. 144.006 million during the period. After deducting total expenses of Rs. 15.317 million, the net income is Rs. 128.689 million. The below chart presents the The asset allocation of the Fund as on September 30, 2020 is as follows:

NSIF Performance versus Benchmark

06 NBP SARMAYA IZAFA FUND

Acknowledgement

The Board takes this opportunity to thank its valued unit-holders for their confidence and trust in the Management Company, and providing the opportunity to serve them. It also offers its sincere gratitude to the Securities & Exchange Commission of Pakistan and State Bank of Pakistan for their patronage and guidance.

The Board also wishes to place on record its appreciation for the hard work, dedication and commitment shown by the staff and the Trustee.

On behalf of the Board of NBP Fund Management Limited

Chief Executive Director

Date: October 27, 2020 Place: Karachi.

07 NBP SARMAYA IZAFA FUND

08 NBP SARMAYA IZAFA FUND

09 NBP SARMAYA IZAFA FUND

10 NBP SARMAYA IZAFA FUND

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES AS AT SEPTEMBER 30, 2020

Un Audited Audited September 30, June Note 2020 30, 2020 Rupees in '000 ASSETS

Bank Balances 670,587 619,145 Investments 4 756,140 701,053 Mark-up accrued and dividend receivable 4,554 2,869 Receivable against sale of investments - 2,563 Receivable against transfer of units 1,188 9,587 Deposits, prepayments and other receivables 3,374 3,405 Total assets 1,435,843 1,338,622

LIABILITIES

Payable to NBP Fund Management Limited - Management Company 14,956 15,677 Payable to Central Depository Company of Pakistan Limited - Trustee 223 210 Payable to the Securities and Exchange Commission of Pakistan 68 275 Payable against redemption of units 1,179 13,856 Accrued expenses and other liabilities 44,160 50,162 Total liabilities 60,586 80,180

NET ASSETS 1,375,257 1,258,442

UNIT HOLDERS' FUNDS (AS PER STATEMENT ATTACHED) 1,375,257 1,258,442

CONTINGENCIES AND COMMITMENTS 6

------Number of units ------

NUMBER OF UNITS IN ISSSUE 85,300,175 86,051,906

Rupees

NET ASSET VALUE PER UNIT 16.1226 14.6242

The annexed notes 1 to 12 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

11 NBP SARMAYA IZAFA FUND

CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter ended Quarter ended Note September 30, September 30, 2020 2019

(Rupees in '000) INCOME

Gain / (Loss) on sale of investments - net 28,166 (11,188) Return / mark-up on: - bank balances and term deposits 2,986 20,235 - debt securities 1,209 - government securities 8,486 1,348 Dividend income 3,072 14,595 Net unrealised appreciation / (diminution) on re-measurement of investments classified as financial assets 'at fair value through profit or loss' 100,087 (41,354) Total Income /(loss) 144,006 (16,364)

EXPENSES

Remuneration of NBP Fund Management Limited - Management Company 5,135 5,722 Sindh Sales Tax on remuneration of the Management Company 668 744 Reimbursement of operational expenses to the Management Company 343 364 Selling and marketing expenses 7 5,135 3,783 Remuneration of Central Depository Company of Pakistan Limited - Trustee 594 615 Sindh Sales Tax on remuneration of Trustee 77 80 Annual fee - Securities and Exchange Commission of Pakistan 68 73 Auditors' remuneration 198 190 Annual listing fee 7 7 Printing charges 9 12 Legal and professional charges 18 15 Securities transaction cost 367 398 Fund rating fee 51 51 Settlement and bank charges 21 245 Total Expenses 12,691 12,299

Net income / (loss) from operating activities 131,315 (28,663)

Provision for Sindh Workers' Welfare Fund 5 (2,626) -

Net income / (loss) for the period before taxation 128,689 (28,663)

Taxation 8 - -

Net income /(loss) loss for the period after taxation 128,689 (28,663)

Allocation of Net income for the period:

Net income for the period after taxation 128,689 - Income already paid on units redeemed (14,688) - 114,001 - Accounting income available for distribution: - Including capital gain 113,443 - - Excluding capital gain 558 - 114,001 -

The annexed notes 1 to 12 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

12 NBP SARMAYA IZAFA FUND

CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter ended Quarter ended September 30, September 30, 2020 2019 Rupees in '000'

Net income / (loss) for the period after taxation 128,689 (28,663)

Other comprehensive income / (loss) for the period - -

Total comprehensive income / (loss) for the period 128,689 (28,663)

The annexed notes 1 to 12 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

13 NBP SARMAYA IZAFA FUND

CONDENSED STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter ended September 30, 2020 Quarter ended September 30, 2019 ------(Rupees in '000) ------

Capital Undistributed Capital Undistributed Total Total Value income Value income

Net assets at beginning of the period 689,515 568,927 1,258,442 1,217,096 552,301 1,769,397

Issuance of 13,236,281 units (2019: 1,772,491 units)

- Capital value 193,570 - 193,570 25,634 - 25,634 - Element of loss 18,348 - 18,348 (671) - (671) Total proceeds on issuance of units 211,918 - 211,918 24,963 - 24,963

Redemption of 13,988,012 units (2019: 27,525,256 units) - Capital value (204,563) (204,563) (398,079) - (398,079) - Element of income (4,541) (14,688) (19,229) 10,716 - 10,716 Total payments on redemption of units (209,104) (14,688) (223,792) (387,363) - (387,363)

Total comprehensive income/ (loss) for the period - 128,689 128,689 - (28,663) (28,663)

Distribution during the period ------

Net assets at end of the period 692,329 682,928 1,375,257 854,696 523,638 1,378,334

Undistributed income / (loss) brought forward: - Realised 560,107 753,682 - Unrealised 8,820 (201,381) 568,927 552,301

Accounting income available for distribution

- Relating to capital gain 113,443 - - Excluding capital gain 558 - 114,001 -

Net loss for the period after taxation (28,663)

Distribution during the period - -

Undistributed income carried forward 682,928 - 523,638

Undistributed income / (loss) carried forward:

- Realised 582,841 564,992 - Unrealised 100,087 (41,354)

682,928 523,638

- (Rupees) - - (Rupees) - Net assets value per unit at beginning of the period 14.6242 14.4623

Net assets value per unit at end of the period 16.1226 14.2696

The annexed notes 1 to 12 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

14 NBP SARMAYA IZAFA FUND

CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter ended Quarter ended September 30, September 30, 2020 2019

Rupees in '000 CASH FLOWS FROM OPERATING ACTIVITIES

Net income / (loss) for the period before taxation 128,689 (28,663)

Adjustments for non-cash charges and other items: Net unrealised (appreciation) / diminution in fair value of investments classified as 'at fair value through profit or loss' (100,087) 41,354 28,602 12,691

(Increase) / decrease in assets Investments 45,000 191,704 Receivable against sale of investments 2,563 80,315 Dividend and profit receivable (1,685) (12,677) Deposits, prepayments and other receivable 31 30 45,909 259,372

Increase / (decrease) in liabilities Payable to the Management Company (721) (3,090) Payable to the Central Depository Company of Pakistan Limited - Trustee 13 (64) Payable to the Securities and Exchange Commission of Pakistan (207) (2,478) Accrued expenses and other liabilities (6,002) 1,208 (6,917) (4,424)

Net cash generated from operating activities 67,594 267,639

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts from issue of units 220,317 24,218 Payments on redemption of units (236,469) (386,744) Net cash (used in) from financing activities (16,152) (362,526)

Net increase / (decrease) in cash and cash equivalents during period 51,442 (94,887)

Cash and cash equivalents at the beginning of the period 619,145 526,947

Cash and cash equivalents at the end of the period 670,587 432,060

The annexed notes 1 to 12 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

15 NBP SARMAYA IZAFA FUND

NOTES TO AND FORMING PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE QUARTER ENDED SEPTEMBER 30, 2020

1 LEGAL STATUS AND NATURE OF BUSINESS

NBP Sarmaya Izafa Fund (the Fund) was established under a Trust Deed executed between NBP Fund Management Limited as the Management Company and Central Depository Company of Pakistan Limited (CDC) as the Trustee. The Trust Deed was executed on June 29, 2010 and was approved by the Securities and Exchange Commission of Pakistan (SECP) on June18, 2010 in accordance with the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules).

The Management Company of the Fund has been licensed to act as an asset management company under the NBFC Rules through a certificate of registration issued by SECP. The registered office of the Management Company is situated at 7th floor, Clifton Diamond Building, Block No. 4, Scheme No. 5, Clifton, Karachi.

The Fund is an open-ended mutual fund categorized as "asset allocation scheme" and its units are listed on Pakistan Stock Exchange Limited. Units of the Fund are offered for public subscription on a continuous basis. The units of the Fund are transferable and can be redeemed by surrendering them to the Fund.

The investment objective of the Fund is to generate income by investing in debt and money market securities and to generate capital appreciation by investing in equity and equity related securities.

The Pakistan Credit Rating Agency Limited (PACRA) has assigned an asset manager rating of 'AM1' to the Management Company and has assigned performance ranking of "4 star" to the Fund.

Title of the assets of the Fund is held in the name of CDC as trustee of the Fund.

2 BASIS OF PREPARATION

2.1 Statement of Compliance

These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards applicable in Pakistan for interim financial reporting comprise of:

- International Accounting Standard (IAS) 34, 'Interim Financial Reporting', issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;

- Provisions of and directives issued under the Companies Act, 2017 along with part VIIIA of the repealed Companies Ordinance, 1984; and

- the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules), the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the NBFC Regulations) and the requirements of the Trust Deed.

Where provisions of and directives issued under the Companies Act, 2017, part VIIIA of the repealed Companies Ordinance 1984, the NBFC Rules, the NBFC Regulations and the requirements of the Trust Deed differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017, part VIIIA of the repealed Companies Ordinance 1984, the NBFC Rules, the NBFC Regulations and the requirements of the Trust Deed have been followed.

The disclosures made in these condensed interim financial statements have, however, been limited based on the requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim financial statements do not include all the information and disclosures required in a full set of financial statements and should be read in conjunction with the annual published audited financial statements of the Fund for the year ended June 30, 2020.

16 NBP SARMAYA IZAFA FUND

In compliance with schedule V of the NBFC Regulations the directors of the Management Company hereby declared that this condensed interim financial information gives a true and fair view of the state of the Funds affairs as at September 30, 2020.

These financial statements are presented in Pakistan Rupee, which is the Fund's functional and presentation currency.

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3.1 The accounting policies adopted and the methods of computation of balances used in the preparation of these condensed interim financial statements are the same as those applied in the preparation of the annual financial statements of the Fund for the year ended June 30, 2020.

3.2 There are no other standards, amendments to standards or interpretations that are effective for annual periods beginning on July 1, 2020 that have a material effect on the financial statements of the Fund.

(Un Audited) (Audited) 4 INVESTMENTS As at As at September June 30, Note 30, 2020 2020 (Rupees in '000) Financial assets at fair value through profit or loss Listed equity securities 4.1 610,328 649,981 Sukuks 4.2 51,213 51,072 Government Securities 4.3 94,600 - 756,140 701,053 4.1 Listed equity securities All shares have a nominal face value of Rs. 10 each except for shares of K-Electric which have a face value of Rs. 3.5 each.

OIL AND GAS EXPLORATION COMPANIES Mari Petroleum Company Limited 34,790 - - 1,500 33,290 45,591 3.32 6.03 0.03 Oil and Gas Development Company Limited 239,400 - - 67,100 172,300 17,850 1.30 2.36 0.01 Pakistan Oilfields Limited 13,120 - - 1,600 11,520 4,854 0.35 0.64 0.03 Pakistan Petroleum Limited 323,569 - 1 40,600 282,970 26,050 1.89 3.45 0.02 6.86 12.48 FERTILIZER Engro Corporation Limited 97,070 - - 19,100 77,970 23,471 1.71 3.10 0.03 Engro Fertilizers Limited 153,000 - - 49,000 104,000 6,325 0.46 0.84 0.03 Fauji Fertilizer Bin Qasim Limited 173,500 - - 173,500 - - - - 0.05 Fauji Fertilizer Company Limited 364,500 8,000 - 62,500 310,000 33,477 2.43 4.43 0.05 4.60 8.37 CHEMICALS Engro Polymer and Chemicals Limited 684,857 - - 154,000 530,857 21,372 1.55 2.83 0.11 1.55 2.83 FOOD AND PERSONAL CARE PRODUCTS

Matco Foods Limited 1,250 - - - 1,250 27 0 0 - 00

17 NBP SARMAYA IZAFA FUND

Number of shares Investment as a percentage of Market Market Market value Investment As at Name of the investee company and As at Purchased value as at value as a as a percentage Bonus / Sold during September sector July 01, during the September 30, as a percentage of paid up Right issue the period 30, 2020 period 2020 percentage of of total capital of the 2020 net assets investment investee (Rupees in '000') ------% ------ENGINEERING International Steels Limited 85,300 - - 38,200 47,100 3,629 0.26 0.48 0.02 Mughal Iron and Steel Industries Limited 477,500 - - 283,500 194,000 12,470 0.91 1.65 0.01 1.17 2.13 CEMENT D.G. Khan Cement Company Limited 42,000 - - 12,500 29,500 3,042 0.22 0.40 0.00 Lucky Cement Limited 93,300 - - 32,300 61,000 39,471 2.87 5.22 0.02 Kohat Cement Limited 127,950 - - 12,400 115,550 19,729 1.43 2.61 0.08 Fauji Cement Company Limited 400,500 - - 33,000 367,500 7,306 0.53 0.97 0.07 5.05 9.20 TEXTILE COMPOSITE Nishat Mills Limited 180,000 - - 33,500 146,500 14,8071.08 1.96 0.07 Gul Ahmed Textile Mills Limited 438,560 - - 225,000 213,560 7,970 0.58 1.05 0.14 Nishat Chunian Limited 65,500 - - 16,500 49,000 1,930 0.14 0.26 0.08 Kohinoor Textile Mills Limited 246,194 - - 65,500 180,694 9,777 0.71 1.29 0.08 Interloop Limited 162,177 - - 26,000 136,177 9,131 0.66 1.21 0.02 3.17 5.77

POWER GENERATION AND DISTRIBUTION The Hub Power Company Limited 572,687 - - 102,600 470,087 36,883 2.68 4.88 0.06 Saif Power Limited 93,000 - - - 93,000 1,566 0.11 0.21 0.02 K-Electric Limited 625,000 - - 179,000 446,000 1,878 0.14 0.25 0.00 Lalpir Power Limited 756,000 - - 420,000 336,000 4,415 0.32 0.58 0.23 PAKGEN Power Limited 274,500 - - 74,000 200,500 3,609 0.26 0.48 0.07 3.51 6.40

COMMERCIAL BANKS Allied Bank Limited 37,200 - - - 37,200 3,135 0.23 0.41 0.03 Bank Al-Falah Limited 872,450 - - - 872,450 30,344 2.21 4.01 0.06 Bank Al-Habib Limited 438,150 - - 21,500 416,650 26,903 1.96 3.56 0.05 Bank Of Punjab Limited 369,500 - - 369,500 - - - - - MCB Bank Limited 150,700 - - 57,900 92,800 16,130 1.17 2.13 0.01 United Bank Limited 193,803 - - - 193,803 22,309 1.62 2.95 0.03 Faysal Bank Limited 46,145 - - - 46,145 790 0.06 0.10 0.02 Habib Bank Limited 350,567 - - - 350,567 45,833 3.33 6.06 0.02 National Bank Of Pakistan 102,500 - - 39,000 63,500 2,532 0.18 0.33 0.00 10.76 19.57 PAPER AND BOARD Century Paper and Board Mills Limited 198,500 - - 89,000 109,500 12,180 0.89 1.61 0.17 Cherat Packaging Limited 75,389 - - 75,388 1 0 0.00 0.00 - Roshan Packages Limited - 105,000 - - 105,000 3,641 0.26 0.48 - Packages Limited 14,000 - - 5,000 9,000 4,521 0.33 0.60 0.23 1.48 2.69

AUTOMOBILE ASSEMBLER Indus Motor Company Limited 969 - - - 969 1,240 0.09 0.16 0.12 Millat Tractors Limited 15,900 - - 1,550 14,350 12,416 0.90 1.64 0.22 Honda Atlas Cars (Pakistan) Limited 35,100 - - 23,000 12,100 3,133 0.23 0.41 0.09 1.22 2.21

AUTOMOBILE PARTS AND ACCESSORIES Baluchistan Wheels Limited 7,500 - - - 7,500 600 0.04 0.08 0.06 0.04 0.08

TECHNOLOGY AND COMMUNICATION Systems Limited 94,250 - - 32,500 61,750 16,798 1.22 2.22 0.07 Netsol Technologies Limited 84,500 - - 31,000 53,500 3,216 0.23 0.43 0.18 TPL Trakker Limited - 333,500 - - 333,500 3,468 0.25 0.46 0.12 1.70 3.11

GLASS AND CERAMICS Tariq Glass Industries Limited 214,200 - - 74,500 139,700 12,658 0.92 1.67 0.23 0.92 1.67

18 NBP SARMAYA IZAFA FUND

PHARMACEUTICALS The Searle Company Limited 9,415 - - - 9,415 2,413 0.18 0.32 0.11 Highnoon Laboratories Limited 8,954 - - 4,500 4,454 2,735 0.20 0.36 0.13 AGP Limited 10,000 - - - 10,000 1,090 0.08 0.14 0.06 0.46 0.82

SYNTHETIC PRODUCTS Synthetic Products Enterprises Limited 28,080 - - - 28,080 1,251 0.09 0.17 0.03 0.09 0.17

INSURANCE PRODUCTS Adamjee Insurance Company Limited 154,000 - - 33,000 121,000 4,852 0.35 0.64 0.04 0.35 0.64 Total as at September 30, 2020 610,328 44.34 80.72

Carrying value as at September 30, 2020 509,814

4.2 Sukuks

Market value as Market value Purchases Matured/Sold As at Market Value As Name of the As at July 1, a % of net as a % of Tenor during the during the September 30, at September 30, investee company 2020 assets of the total period period 2020 2020 Fund investments ------No. of Units------(Rupees in '000) ------Percentage % ------The HUB Power Company - Sukuk 3 Years 500 - - 500 51,213 3.72 6.77

500 - - 500 51,213 3.72 6.77

Carrying Value as at September 30, 2020 51,072

4.3 Government Securities Face value Investment as a percentage of Sold / matured Market value as Issue date Maturity date Tenor As at July Purchases As at September Total during the at September Net Assets 01, 2020 during the year 30, 2020 investments year 30, 2020

Rupees in 000' ------% ------

July 16, 2020 October 8, 2020 3 months - 450,000 450,000 - - - July 16, 2020 January 14, 2021 6 months - 75,000 75,000 - - - July 16, 2020 July 15, 2021 12 months - 100,000 - 100,000 94,600 6.88 12.51 July 18, 2019 July 16, 2020 12 months - 500,000 500,000 - - - August 29, 2019 August 27, 2020 12 months - 100,000 100,000 - - - 100,000 94,600 6.88 12.51

Carrying Value as at September 30, 2020 95,167

5 PROVISION FOR SINDH WORKERS' WELFARE FUND

The legal status of applicability of Worker's Welfare Fund and Sindh Workers' Welfare Fund is same as that disclosed in note 17 to the annual audited financial statements of the Fund for the year ended June 30, 2020.

The Fund, being prudent, recognised provision for SWWF amounting to Rs. 23.12 million for the period ended September 30, 2020 in this condensed interim financial information, Had the provision not been made, net

19 NBP SARMAYA IZAFA FUND

assets value per unit at September 30, 2020 would have been higher by Rs. 0.2711 per unit (June 30, 2020: Rs. 0.2382 per unit).

6 CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at September 30, 2020 and June 30, 2020.

7 SELLING AND MARKETING EXPENSES

The SECP vide circular 11 of 2019 dated July 05, 2019 has allowed the Asset Management Companies to charge selling and marketing expenses to all categories of open-end mutual funds (except fund of funds) and prescribed revised conditions for charging of selling and marketing expenses to CIS. The said circular also supersedes circular No. 40 of 2016, circular No. 05 of 2017 and circular No. 5 of 2018. These expenses shall be counted in the total expense ratio cap of the fund. Accordingly, the Management Company has charged selling and marketing expenses at the rate of 1.50% per anum of the net assets of the Fund.

8 TAXATION

The Fund's income is exempt from income tax as per clause 99 of part I of the Second Schedule to the Income Tax Ordinance, 2001 subject to the condition that not less than 90 percent of the accounting income for the year as reduced by capital gains, whether realised or unrealised, is distributed amongst the unit holders. Furthermore, as per regulation 63 of the NBFC Regulations, the Fund is required to distribute 90 percent of the net accounting income other than capital gains to the unit holders. Since the management intends to distribute the required minimum percentage of income earned by the Fund for the year ending June 30, 2020 to the unit holders in the manner as explained above, no provision for taxation has been made in these condensed interim financial statements.

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

9 TOTAL EXPENSE RATIO

The Total Expense Ratio (TER) of the Fund as at September 30, 2020 is 4.48% (2019: 3.39%) which includes 1.01% (2019: 0.25%) representing government levies on the Fund such as sales taxes, federal excise duties, annual fee to the SECP, etc. This ratio is within the maximum limit of 4.5% (as amended by S.R.O 639 dated June 20, 2019) prescribed under the NBFC Regulations for a collective investment scheme categorised as 'Asset Allocation Scheme'.

10 TRANSACTIONS WITH CONNECTED PERSONS

10.1 Connected persons and related parties include NBP Fund Management Limited being the Management Company, Central Depository Company of Pakistan Limited being the Trustee, National Bank of Pakistan being the Parent of the Management Company and Baltoro Growth Fund being the sponsor of the Management Company. It also includes associated companies of Management Company due to common directorship, post-employment benefit funds of the Management Company, its parent and sponsor. It also includes subsidiaries and associated companies of the Parent of the Management Company and other collective investment schemes (CIS) managed by the Management Company, directors and key management personnel of the Management Company and any person or company beneficially owning directly or indirectly 10% or more of the units in issue / net assets of the Fund.

10.2 The transactions with connected persons are in the normal course of business, at contracted rates and terms determined in accordance with market rates.

10.3 Remuneration and front-end load payable to the Management Company is determined in accordance with the provisions of the NBFC Regulations and the Trust Deed respectively.

10.4 Remuneration payable to the Trustee is determined in accordance with the provisions of the NBFC Regulations and the Trust Deed.

20 NBP SARMAYA IZAFA FUND

------Un Audited ------Quarter ended Quarter ended September 30, September 30, 2020 2019 10.5 Details of the transactions with connected persons during (Rupees in '000) the period are as follows: NBP Fund Management Limited - Management Company Remuneration for the period 5,135 5,722 Sindh sales tax on remuneration 668 744 Reimbursement of operational expenses to the Management Company 343 364 Selling and marketing expense 5,135 3,783 Front-end load 2,290 529 Central Depository Company of Pakistan Limited - Trustee Remuneration for the period 594 615 Sindh Sale Tax on Remuneration CDC Trustee 77 80 CDS charges 46 5 Employees of the Management Company Units Issued/ transfer in: 268,448 units (2019: Nil ) 4,332 - Units Redeemed / transferred out: 134,465 units (2019: 16,969 units) 2,153 230 Bonus Units Issued Nil units (2014: Nil units) Portfolios managed by the Management Company Units Issued / transferred in: 1,527,828 units (2019: Nil ) 25,000 - Government Treasury Bills Sold 73,464 -

Taurus Securities Limited Brokerage expense 14 -

Fauji Fertilizer Limited Company (Common Directorship with the Management Company) Dividend Income 853 -

Pakistan Stock Exchange Limited (Common Directorship with the Management Company) Annual Listing Fee 25 -

Un Audited Audited September 30, June 30, 2020 2020 10.6 Amounts outstanding as at period end ; (Rupees in '000) NBP Fund Management Limited - Management Company Remuneration of the Management Company 1,717 1,556 Sindh Sales Tax on remuneration of the Management Company 223 202 Operational expenses 342 309 Selling and Marketing expenses 5,135 4,440 Sales load 6,671 4,811 Sindh Sales tax and Federal Excise Duty on sales load 868 4,359

Central Depository Company of Pakistan Limited - Trustee Remuneration of the Trustee 197 186 Sindh sales tax on remuneration of the Trustee 26 24 CDS charges 133 133 Security deposit 100 100 National Bank of Pakistan (Parent Co. of the Management Company) Bank balances 15,247 8,866

International Steels Limited (Common Directorship with the Management Company) Ordinary shares held: 47,100 shares (June 30, 2020: 85,300 shares) 3,629 4,406

Gul Ahmed Textile Mills Limited (Common Directorship with the Management Company) units held: nil (June 30, 2020: 438,560 shares) - 12,556

21 NBP SARMAYA IZAFA FUND

Un Audited Audited September 30, June 30, 2020 2020 (Rupees in '000)

Bank Islami Pakistan Limited (Common Directorship with the Management Company) Bank balances 573 465 Markup accrued on bank balances 13 7

Employees of the Management Company Investment held: 158,797 units (June 30, 2020: 24,814 units) 2,560 363

Portfolio managed by the Management Company Investment held: 2,793,200 units (June 30, 2020: 1,265,372 units) 45,034 18,506

Fauji Fertilizer Limited Company (Common Directorship with the Management Company) Ordinary shares held; 310,000 (June 30, 2020: 364,500 shares) 33,477 40,091 The Hub Power Company Limited (Common Directorship with the Management Company) Ordinary shares held; 470,087 (June 30, 2020: 572,687) shares 36,883 41,520 Markup accrued on sukuks 1,760 550 Sukuks held 51,072 51,072 National Clearing Company of Pakistan Limited (Common Directorship with the Management Company) Security deposit 2,750 2,750 NCCPL charges payable 82 125

11 DATE OF AUTHORISATION FOR ISSUE

These financial statements were authorised for issue by the Board of Directors of the Management Company on October 27 , 2020.

12 GENERAL

12.1 Figures have been rounded off to the nearest thousand rupees unless otherwise stated.

12.2 Corresponding figures have been rearranged or reclassified, where necessary, for the purposes of better presentation.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

22 Head Office 7th Floor, Clifton Diamond Building, Block No.4, Scheme No.5, Clifton, Karachi. UAN: 021-111-111-632 Toll Free: 0800-20002 Sms: INVEST to 9995 Fax: 021-35825335 Email: [email protected] Website: www.nbpfunds.com /nbpfunds NBP MONEY MARKET FUND NBP MONEY MARKET FUND

MISSION STATEMENT

To rank in the top quartile in performance of NBP FUNDS relative to the competition, and to consistently offer Superior risk-adjusted returns to investors.

01 NBP MONEY MARKET FUND

FUND'S INFORMATION 03

DIRECTORS' REPORT 05

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES 09

CONDENSED INTERIM INCOME STATEMENT 10 Contents

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME 11

CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND 12

CONDENSED INTERIM CASH FLOW STATEMENT 13

NOTES TO AND FORMING PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS 14

02 NBP MONEY MARKET FUND

MCB Bank Limited Allied Bank Limited Summit Bank Limited Sindh Bank Limited JS Bank Limited National Bank of Pakistan Meezan Bank Limited Samba Bank Limited Habib Bank Limited Zarai Taraqiati Bank Limited United Bank Limited MCB Islamic Bank Limited Bank Alfalah Limited Faysal Bank Limited Bank Al Habib Limited Dubai Islamic Bank Limited Askari Bank Limited Habib Metropolitan Bank Limited

03 NBP MONEY MARKET FUND

Auditors Deloitte Yousuf Adil Chartered Accountants Cavish Court, A-35, Block 7 & 8, KCHSU, Sharae Faisal Karachi-75350 Pakistan. Legal Advisor Akhund Forbes D-21, Block 4, Scheme 5, Clifton, Karachi 75600, Pakistan. Head Office: 7th Floor Clifton Diamond Building, Block No. 4, Scheme No. 5, Clifton Karachi. UAN: 021 (111-111-632), (Toll Free): 0800-20002, Fax: (021) 35825329 Website: www.nbpfunds.com Lahore Office: 7-Noon Avenue, Canal Bank, Muslim Town, Lahore. UAN: 042-111-111-632 Fax: 92-42-35861095 Islamabad Office: 1st Floor, Ranjha Arcade Main Double Road, Gulberg Greens, Islamabad. UAN: 051-111-111-632 Fax: 051-4859031 Peshawar Office: Opposite Gul Haji Plaza, 2nd Floor National Bank Building University Road Peshawar, UAN: 091-111 111 632 Fax: 091-5703202 Multan Office: Khan Center, 1st Floor, Abdali Road, Multan. Phone No. : 061-4540301-6, 061-4588661-2 & 4

04 NBP MONEY MARKET FUND

DIRECTORS REPORT

The Board of Directors of NBP Fund Management Limited is pleased to present the unaudited Condensed Interim financial statements of NBP Money Market Fund (NMMF) for the quarter ended September 30, 2020.

Fund's Performance

The size of NBP Money Market Fund has increased from Rs. 28,236 million to Rs. 30,334 million during the period (i.e. a growth of 7%). During the period, the unit price of the Fund has increased from Rs. 9.7447 (Ex-Div) on June 30, 2020 to Rs. 9.8881 on September 30, 2020, thus showing a return of 5.8% p.a. as compared to the benchmark return of 6.7% p.a. for the same period. The performance of the Fund is net of management fee and all other expenses.

NMMF's stability rating awarded by PACRA is 'AA (f)', which denotes a very strong capacity to maintain relative stability in returns and very low exposure to risks. Being a Money Market scheme, the Fund has strict investment guidelines. The authorized investments of the Fund include T-Bills, Bank Deposits and Money Market instruments. Minimum rating requirement is 'AA', while the Fund is not allowed to invest in any security exceeding six months maturity. The weighted average time to maturity of the Fund cannot exceed 90 days.

The Fund has earned a total income of Rs. 563.49 million during the period. After deducting total expenses of Rs. 81.33 million, the net income is Rs. 482.16 million. The asset allocation of NBP Money Market Fund as on September 30, 2020 is as follows:

Income Distribution

The Board of Directors of the Management Company has approved interim cash dividend of 1.41% of the opening ex- NAV (1.39% of the par value) for the period ended September 30, 2020.

05 NBP MONEY MARKET FUND

Acknowledgement

The Board also wishes to place on record its appreciation for the hard work, dedication and commitment shown by the staff and the Trustee.

On behalf of the Board of NBP Fund Management Limited

Chief Executive Director

Date: October 27, 2020 Place: Karachi.

06 NBP MONEY MARKET FUND

07 NBP MONEY MARKET FUND

08 NBP MONEY MARKET FUND

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES AS AT SEPTEMBER 30, 2020

(Un-Audited) (Audited) September 30, June 30, 2020 2020 Note ------Rupees in '000------ASSETS

Bank balances 4 27,202,993 22,428,934 Investments 5 3,375,000 6,043,726 Mark-up accrued 61,002 17,435 Receivable against transfer of units 3,159 337 Deposit and prepayments 298 118,817 Total assets 30,642,452 28,609,249

LIABILITIES Payable to NBP Fund Management Limited - Management Company 54,606 66,177 Payable to Central Depository Company of Pakistan Limited - Trustee 2,031 1,724 Payable to the Securities and Exchange Commission of Pakistan 1,678 5,730 Payable against redemption of units 19,404 82,968 Accrued expenses and other liabilities 230,960 216,488 Total liabilities 308,679 373,087 NET ASSETS 30,333,773 28,236,162

UNIT HOLDERS FUND (AS PER STATEMENT ATTACHED) 30,333,773 28,236,162

Contingencies and commitments 7

------Number of units------

Number of units in issue 3,067,712,890 2,857,199,837

------Rupees------

Net asset value per unit 9.8881 9.8825

The annexed notes from 1 to 13 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

09 NBP MONEY MARKET FUND

CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter ended Quarter ended September September 30, 30, 2020 2019 Note ------Rupees in '000------INCOME Return / mark-up on: - bank balances 145,480 827,329 - government securities 342,661 42,869 - letter of placement 52,640 - - Certificate of Income 43,147 - - Commercial Paper - 19,565 - Sukuk Income - 15,834 Net loss on sale of investments (20,437) (458) Total income 563,491 905,139

EXPENSES Remuneration of NBP Fund Management Limited - Management Company 12,586 29,677 Sindh Sales Tax on remuneration of the Management Company 1,636 3,858 Allocation of operational expenses to the Management Company 8,390 6,439 Selling and Marketing Expenses 8 40,413 40,609 Remuneration of Central Depository Company of Pakistan Limited - Trustee 5,454 4,185 Sindh Sales Tax on remuneration of the Trustee 709 544 Annual fee to the Securities and Exchange Commission of Pakistan 1,678 1,288 Settlement charges 178 50 Bank charges 92 129 Auditors' remuneration 236 226 Legal and professional charges 31 19 Fund rating fee 60 108 Annual listing fee 7 7 Printing charges 20 9 Total expenses 71,490 87,148 Net income from operating activities 492,001 817,991

Provision for Sindh Workers' Welfare Fund 6 (9,840) (16,360)

Net income for the period before taxation 482,161 801,631

Taxation 9 - -

Net income for the period after taxation 482,161 801,631

Earnings per unit - -

Allocation of net income for the period:

Net income for the period after taxation 482,161 801,631 Income already paid on units redeemed (66,572) (326,637)

415,589 474,994 Accounting income available for distribution: - Relating to capital gain - - - Excluding capital gain 415,589 474,994 415,589 474,994

The annexed notes from 1 to 13 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

10 NBP MONEY MARKET FUND

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter ended Quarter ended September 30, September 30, 2020 2019

------Rupees in '000 ------

Net income for the period after taxation 482,161 801,631 Other comprehensive income - -

Total comprehensive income for the period 482,161 801,631

The annexed notes from 1 to 13 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

11 NBP MONEY MARKET FUND

CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNITHOLDERS FUND (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter ended Quarter ended September 30, September 30, ------2020 ------2019 ------(Rupees in '000) ------

Capital Undistributed Capital Undistributed Total Total Value Income Value Income

Net assets at beginning of the period 28,065,892 170,270 28,236,162 20,465,978 132,984 20,598,962 Issue of 2,636,372,933 units (2019: 1,974,912,040 units) - Capital value 26,053,994 - 26,053,994 19,489,814 - 19,489,814 - Element of income 55,989 - 55,989 108,871 - 108,871

Total proceeds on issuance of units 26,109,983 - 26,109,983 19,598,685 - 19,598,685

Redemption of 2,425,859,880 units (2019: 1,509,012,425 units) - Capital value (23,974,740) - (23,974,740) (14,570,796) - (14,570,796) - Element of loss (3,057) (66,572) (69,629) (109,248) (326,637) (435,885)

Total payments on redemption of units (23,977,797) (66,572) (24,044,369) (14,680,044) (326,637) (15,006,681)

Total comprehensive income for the period - 482,161 482,161 - 801,631 801,631

Interim Distribution @ 0.0390 per unit declared on July 28, 2020 (July 30, 2019: 0.0968 per unit) - Cash Distribution - (114,110) (114,110) - (189,543) (189,543) - Refund of Capital (21,334) - (21,334) (47,977) - (47,977)

Interim Distribution @ 0.0467 per unit declared on August 28, 2020 (August 29, 2019: 0.1014 per Unit) - Cash Distribution - (123,698) (123,698) - (240,420) (240,420) - Refund of Capital (11,246) - (11,246) (30,492) - (30,492)

Interim Distribution @ 0.0534 per unit declared on September 28, 2020 (September 28, 2019: 0.1018 per unit) - Cash Distribution - (159,417) (159,417) - (236,314) (236,314) - Refund of Capital (20,360) - (20,360) (24,516) - (24,516)

Total distribution during the period (52,939) (397,225) (450,164) (102,985) (666,277) (769,262) Net assets at end of the period 30,145,139 188,634 30,333,773 25,281,633 (58,299) 25,223,335

Undistributed income brought forward - Realised 158,881 132,984 - Unrealised 11,389 - 170,270 132,984 Accounting income available for distribution - Relating to capital gain - - - Excluding capital gain 415,589 474,994 415,589 474,994

Interim Distribution during the period (397,225) (666,277)

Undistributed income carried forward 188,634 (58,299)

Undistributed income carried forward - Realised 188,634 (58,299) - Unrealised - - 188,634 (58,299)

- (Rupees) - - (Rupees) -

Net assets value per unit at beginning of the period 9.8825 9.8687

Net assets value per unit at end of the period 9.8881 9.8791

The annexed notes from 1 to 13 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

12 NBP MONEY MARKET FUND

CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Un - Audited Un - Audited Quarter ended Quarter ended September 30, September 30, 2020 2019 Note ------Rupees in '000 ------

CASH FLOWS FROM OPERATING ACTIVITIES Net income for the period before taxation 482,161 801,631

Adjustments: Return / mark-up on bank balances - bank balances (145,480) (827,329) - government securities (342,661) (42,869) - letter of placement (52,640) - - Certificate of Income (43,147) - - Commercial Paper - (19,565) - Sukuk Income - (15,834) - Net loss / (gain) on Investments 20,437 - Provision for Sindh Workers' Welfare Fund 9,840 16,360

(553,651) (889,237) (71,490) (87,606) decrease / (Increase) in assets

Investments 2,648,289 (1,768,152) Deposit and prepayments 118,519 87 2,766,808 (1,768,065) (decrease) / Increase in liabilities

Payable to the Management Company (11,571) 21,470 Payable to the Trustee 307 (58) Payable to the Securities and Exchange Commission of Pakistan (4,052) (16,764) Accrued expenses and other liabilities 4,632 11,996 (10,684) 16,644

Mark-up on bank balances received 145,060 794,531 Mark-up on government securities received 342,661 42,869 Mark-up on letter of placement received 52,640 - Mark-up on Commercial Paper received - 19,565 540,361 856,965

Net cash generated / (used in) from operating activities 3,224,995 (982,062)

CASH FLOWS FROM FINANCING ACTIVITIES

Amounts received on issuance of units 26,054,222 19,353,332 Amounts paid on redemption of units (24,107,933) (14,925,853) Distributions paid (397,225) (666,277)

Net cash generated from financing activities 1,549,064 3,761,201

Net increase in cash and cash equivalents during the period 4,774,059 2,779,139

Cash and cash equivalents at the beginning of the period 22,428,934 19,789,023

Cash and cash equivalents at the end of the period 4 27,202,993 22,568,162

The annexed notes from 1 to 13 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

13 NBP MONEY MARKET FUND

NOTES TO AND FORMING PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

1. LEGAL STATUS AND NATURE OF BUSINESS

NBP Money Market Fund (the Fund) was established under a Trust Deed executed between NBP Fund Management Limited as the Management Company and Central Depository Company of Pakistan Limited (CDC) as the Trustee. The Trust Deed was executed on May 4, 2011 and was approved by Securities and Exchange Commission of Pakistan (SECP) on April 14, 2011 in accordance with the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules).

The Management Company of the Fund has been licensed to act as an asset management company under the NBFC rules through a certificate of registration issued by SECP. The registered office of the Management Company is situated at 7th floor, Clifton Diamond Building, Block No. 4, Scheme No. 5, Clifton, Karachi.

The Fund is an open-ended mutual fund categorised as "money market scheme" and its units are listed on Pakistan Stock Exchange Limited. Units of the Fund are offered for public subscription on a continuous basis. The units of the Fund are transferable and can be redeemed by surrendering them to the Fund.

The investment objective of the Fund is to generate stable income stream for its unit holders while ensuring capital preservation by investing in AA and above rated banks and money market instruments.

The Pakistan Credit Rating Agency Limited (PACRA) has assigned an asset manager rating of 'AM1' to the Management Company and a stability rating of 'AA(f)' to the Fund.

Title to the assets of the Fund are held in the name of CDC as a trustee of the Fund.

2. BASIS OF PREPARATION

2.1 STATEMENT OF COMPLIANCE

- International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;

- Provisions of and directives issued under the Companies Act, 2017 along with part VIIIA of the repealed Companies Ordinance, 1984; and

- Non-Banking Finance Companies (Establishment and Regulations) Rules, 2003 (the NBFC Rules), Non- Banking Finance Companies and Notified Entities Regulations, 2008 (the NBFC Regulations) and requirements of the Trust Deed.

Where provisions of and directives issued under the Companies Act, 2017, part VIIIA of the repealed Companies Ordinance, 1984, the NBFC Rules, the NBFC Regulations and requirements of the Trust Deed differ from the IFRS Standards, the provisions of and directives issued under the Companies Act, 2017, part VIIIA of the repealed Companies Ordinance, 1984, the NBFC Rules, the NBFC Regulations and requirements of the Trust Deed have been followed.

2.2 The disclosures made in these condensed interim financial statements have, however, been limited based on the requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. These condensed interim financial statements do not include all the information and disclosures required in a full set of financial statements and should be read in conjunction with the annual published audited financial statements of the Fund for the year ended June 30, 2020.

14 NBP MONEY MARKET FUND

2.3 In compliance with schedule V of the NBFC Regulations the directors of the Management Company hereby declared that this condensed interim financial information gives a true and fair view of the state of the Funds affairs as at September 30, 2020.

2.4 These financial statements are presented in Pakistan Rupee, which is the Fund's functional and presentation currency.

3. SUMMARY OF ACCOUNTING POLICIES

The accounting policies adopted and the methods of computation of balances used in the preparation of these condensed interim financial statements are the same as those applied in the preparation of the annual financial statements of the Fund for the year ended June 30, 2020.

The preparation of the condensed interim financial statements in conformity with accounting and reporting standards as applicable in Pakistan requires management to make estimates, assumptions and use judgments that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and judgments are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the period of revision. In preparing the condensed interim financial statements, the significant judgments made by management in applying the Funds accounting policies and the key sources of estimation and uncertainty were the same as those applied to the financial statements as at and for the year ended June 30, 2020. The Funds financial risk management objectives and policies are consistent with those disclosed in the financial statements as at and for the year ended June 30, 2020.

(Un-Audited) (Audited) September June 30, 30, 2020 2020 4. BANK BALANCES Note ------Rupees in '000------

Current Account 4.1 16,527 13,491 Saving Account 4.2 & 4.3 27,186,466 22,415,443

27,202,993 22,428,934

4.1 This include bank balances of Rs.0.16 million (June 30, 2020: Rs. 0.16 million), maintained with National Bank of Pakistan.

4.2 These savings accounts carry mark-up at rates ranging from 4% to 9% per annum (June 30, 2020: 10.25% to 14.35%) per annum.

4.3 These include bank balance of Rs. 2.78 million and 3.09 million (June 30, 2020: Rs. 2.097 million), maintained with National Bank of Pakistan and BankIslami Pakistan Limited, related parties, and carrying mark-up at the rate of 5.5% and 6% respectively. (June 30, 2020: 11.25%) per annum.

(Un-Audited) (Audited) September June 30, 30, 2020 2020 5 INVESTMENTS Note ------Rupees in '000------Financial Assets at fair value through profit or loss Government securities - Market Treasury Bills 5.1 - 6,043,726 Certificate of Investments 5.2 3,375,000 -

3,375,000 6,043,726

15 NBP MONEY MARKET FUND

5.1 Investment in Government securities

Sales / As at July 01, 2020 Purchased Market value as at Market Market Matured As at September Issue Date Tenor during the during the September 30, value of value of during the 30, 2020 period period 2020 net assets total investments period ------Rupees in '000------(%) ------12-Sep-19 12 Months - 2,650,000 2,650,000 - - - - 26-Sep-19 12 Months 98,000 3,200,000 3,298,000 - - - - 10-Oct-19 12 Months 1,583,000 7,727,000 9,310,000 - - - - 19-Dec-19 12 Months - 2,150,000 2,150,000 - - - - 26-Mar-20 6 Months 1,405,000 1,000,000 2,405,000 - - - - 9-Apr-20 6 Months 1,575,000 2,450,000 4,025,000 - - - - 23-Apr-20 6 Months 1,375,000 4,650,000 6,025,000 - - - - 7-May-20 6 Months - 6,511,800 6,511,800 - - - - 18-Jun-20 6 Months 125,000 - 125,000 - - - - 16-Jul-20 3 Months - 3,075,000 3,075,000 - - - - 16-Jul-20 6 Months - 75,000 75,000 - - - - 27-Aug-20 3 Months - 1,701,000 1,701,000 - - - - 27-Aug-20 6 Months - 3,050,000 3,050,000 - - - - 10-Sep-20 3 Months - 500,000 500,000 - - - - Total as at September 30, 2020 -- -

Carrying value of investments as at September 30, 2020 -

5.2 This represents the purchase of Certificate of Investments on July 10, 2020 and August 10, 2020 (having face value of Rs. 1,500 million & 1,875 million respectively) from Pak Oman Investment Company Limited. This carry profit at the rate of 7.05% and 7.15%respectively and will mature on October 09, 2020 and November 20, 2020 respectively.

6 PROVISION FOR SINDH WORKERS' WELFARE FUND

The legal status of applicability of Worker's Welfare Fund and Sindh Workers' Welfare Fund is same as that disclosed in note 18 to the annual audited financial statements of the Fund for the year ended June 30, 2020.

The Fund, being prudent, recognised provision for SWWF amounting to Rs. 151.667 million for the period ended September 30, 2020 in this condensed interim financial information, Had the provision not been made, net assets value per unit at September 30, 2020 would have been higher by Rs. 0.0494 per unit (June 30, 2020: Rs. 0.0496 per unit).

7 CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at September 30, 2020 and June 30, 2020.

8 SELLING AND MARKETING EXPENSES

16 NBP MONEY MARKET FUND

9 TAXATION

The Fund's income is exempt from income tax as per clause 99 of Part I of the Second Schedule of the Income Tax Ordinance, 2001 subject to the condition that not less than ninety percent of its accounting income for the year, as reduced by capital gains whether realised or unrealised is distributed amongst the unit holders (excluding distribution made by issuance of bonus units). Furthermore, as per regulation 63 of the NBFC Regulations, the Fund is required to distribute ninety percent of accounting income other than capital gains whether realised or unrealised to the unit holders. The Fund intends to distribute such accounting income for the year ending June 30, 2021 to its unit holders. Accordingly, no provision in respect of taxation has been made in the current period.

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

10 TOTAL EXPENSE RATIO

Total Expense Ratio (all the expenses incurred during the period divided by Average net assets value for the period) of the Fund as at September 30, 2020 is 0.97% (2019: 1.6%) which includes 0.17% (2019: 0.34%) representing government levies on the Fund such as Sindh sales taxes, Sindh Workers' Welfare Fund and annual fee to the Securities and Exchange Commission of Pakistan. This ratio is within the maximum limit of 2% (as amended by S.R.O 639 dated June 20, 2019) prescribed under the NBFC Regulations for a collective investment scheme categorised as 'Money Market scheme'.

11 TRANSACTIONS AND BALANCES WITH CONNECTED PERSONS AND RELATED PARTIES

11.1 Connected persons and related parties include NBP Fund Management Limited being the Management Company, Central Depository Company of Pakistan Limited being the Trustee, National Bank of Pakistan being the Parent of the Management Company and Baltoro Growth Fund being the sponsor of the Management Company. It also includes associated companies of Management Company due to common directorship, post employment benefit funds of the Management Company its parent and Sponsor. It also includes associated companies of Management Company due to common directorship, post-employment benefit funds of the Management Company, its parent and sponsor. It also includes subsidiaries and associated companies of the Parent of the Management Company and other collective investment schemes (CIS) managed by the Management Company, directors and key management personnel of the Management Company and any person or company beneficially owning directly or indirectly 10% or more of the units in issue / net assets of the Fund.

11.2 The transactions with connected persons and related parties are carried at agreed rates.

11.3 Remuneration of the Management Company is determined in accordance with the provisions of the NBFC Regulations.

11.4 Remuneration of the Trustee is determined in accordance with the rates agreed between the Management Company and the Trustee. ------(Un-audited) ------Quarter ended September 30, September 30, 2020 2019 11.5 Details of transactions with connected persons and related parties are ------Rupees in '000 ------as follows:

NBP Fund Management Limited (Management Company) Remuneration of the Management Company 12,586 29,677 Sindh Sales Tax on remuneration of the Management Company 1,636 3,858 Reimbursement of operational expenses to the Management Company 8,390 6,439 Selling and Marketing expenses to the Management Company 40,413 40,609 Dividend re-invest Nil units (2019: 3,249 Units) - 32 Units issued / transferred in Nil units (2019: Nil units) - - Units redeemed / transferred out Nil (2019: 392,993 units) - 3,910

17 NBP MONEY MARKET FUND

------(Un-audited) ------Quarter ended September 30, September 30, 2020 2019 ------Rupees in '000 ------Central Depository Company of Pakistan Limited (Trustee) Remuneration of the Trustee 5,454 4,185 Sindh Sales Tax on remuneration of the Trustee 709 544

Employees of the Management Company Dividend re-invest 8,258 units (2018: 90,764 Units) 82 728 Units issued / transferred in 3,371,708 units (2018: 842,510 units) 33,343 5,401 Units redeemed / transferred out 4,438,450 units (2018: 1,362,212 units) 43,929 7,230

National Bank of Pakistan (Parent of the Management Company) Mark-up on bank balances 179 98 Purchase of Treasury Bills 443,170 -

*Askari Bank Limited (Common Directorship with the Management Company) Markup on bank balance - 28

Dr. Amjad Waheed - Chief Executive Officer Dividend re-invest 13,689 units (2019: 5,191 units) 135 52 Units issued / transferred in 4,705,017 units (2019: 1 units) 46,500 - Units redeemed / transferred out 1,707,684 units (2019: Nil units) 16,903 -

**Syed Hasan Irtiza Kazmi - Director of Management Company Dividend re-invest 2,443 units (2019: Nil units) 24 -

Humayun Bashir (Director of the Management Company) Dividend re-invest 1,557 units (2019: Nil units) 15 - Units issued / transferred in 1,977,155 units (2019: Nil units) 19,539 -

*Kamal Amir Chinoy (Director of the Management Company) Units issued / transferred in Nil units (2019: 6,623 units) - 65

Muhammad Murtaza Ali - Chief Operating Officer and Company Secretary Units redeemed / transferred out Nil units (2019: 779 units) - 8

National Fullerton Asset Management Employee Provident Fund (Provident Fund of the Management Company) Dividend re-invest 612 units (2019: Nil units) 6 - Units issued / transferred in 4,993,520 units (2019: Nil units) 49,365 - Units redeemed / transferred out 2,932,914 units (2019: Nil units) 29,126 -

18 NBP MONEY MARKET FUND

------(Un-audited) ------Quarter ended September 30, September 30, 2020 2019 ------Rupees in '000 ------

**National Clearing Company of Pakistan Limited (NCCPL) (Common Directorship with the Management Company) Dividend re-invest 895 units (2019: Nil units) 9 - Units issue / transferred in 8,451,174 units (2019: Nil units) 83,519 - Units redeemed / transferred out 8,423,293 units (2019: Nil units) 83,623 -

Baltoro Partners Private Limited (Common Directorship with the Management Company) Dividend re-invest 12,245 units (2019: Nil units) 121 - Units issue / transferred in 1 units (2019: Nil units) 0 -

**Mutual Fund Association of Pakistan (MUFAP) (Common Directorship with the Management Company) Dividend re-invest 723 units (2019: Nil units) 7 - Units issue / transferred in 0 units (2019: Nil units) 0 -

Reliance Enterprises (COO Holding more than 10% in RE) Dividend re-invest 34 units (2019: 2,434 units) - 24 Units issue / transferred in 1 units (2019: 1 units) - - Units redeemed / transferred out 140,511 units (2019: 140,511 units) - 1,400

Fauji Fertilizer Company Limited (Common Directorship with the Management Company) Dividend re-invest 3,944,555 units (2019: 609,488 units) 38,989 144,080 Units issued / transferred in 1,224,386,542 units (2019: 257,165,754 units) 12,100,000 2,550,000 Units redeemed / transferred out 466,420,516 units (2019: Nil units) 4,625,259 -

**Pakistan Stock Exchange Limited (Common Directorship with the Management Company) Listing Fee Paid 25 25

NBP Financial Sector Income Fund (Fund Managed by Management Company) Sale of Treasury Bills 499,382 -

Portfolios managed by the Management Company Dividend re-invest 226,343 units (2019: 609,488 units) 2,237 6,350 Units issued / transferred in 73,017,061 units (2019: 35,140,225 units) 722,447 537,994 Units redeemed / transferred out 46,477,767 units (2019: 27,420,015 units) 460,935 542,612

* Current period transactions with these parties have not been disclosed as they did not remain connected persons and related parties during the period."

** Comparative transactions with these parties have not been disclosed as these parties were not related parties in last period.

19 NBP MONEY MARKET FUND

(Un-audited) (Audited) September 30, June 30, 2020 2020 ------Rupees in '000 ------11.6 Balances outstanding as at are as follows NBP Fund Management Limited - Management Company Remuneration of the Management Company 4,148 3,575 Sindh Sales Tax on remuneration of the Management Company 539 465 Operational expenses 8,390 8,703 Selling and marketing expenses 40,413 52,530 Sales load 746 559 Sindh Sales Tax and Federal Excise Duty on sales load 369 345

Central Depository Company of Pakistan Limited (Trustee) Remuneration of the Trustee 1,797 1,526 Sindh Sales Tax on remuneration of the Trustee 234 198 Security deposit 100 100

National Bank of Pakistan (Parent of the Management Company) Bank balances - in savings account 2,786 2,097 - in current account 166 166 Accrued markup 21 61

BankIslami Pakistan Limited (Common Directorship with the Management Company) Bank balances - in savings account 3,092 - Accrued markup 1 -

Employees of the Management Company Investment held in the Fund: 699,588 units (2020: 1,758,071 units) 6,918 17,374

Dr. Amjad Waheed - Chief Executive Officer Investment held in the Fund: 3,485,419 units (2020: 474,397 units) 34,464 4,688

Muhammad Murtaza Ali - Company Secretary & COO Investment held in the Fund: 1 units (2020: 1 units) - -

National Fullerton Asset Management Employee Provident Fund (Provident Fund of the Management Company) Investment held in the Fund: 2,347,520 (2020:286,302) units 23,213 2,829

Baltoro Partners Private Limited (Common Directorship with the Management Company) Investment held in the Fund: 1,031,956 units (2020: 1,019,710 units) 10,204 10,077

Mutual Fund Association of Pakistan (MUFAP) (Common Directorship with the Management Company) Investment held in the Fund: 60,930 (2020: 60,207) units 602 595

National Clearing Company of Pakistan Limited (NCCPL) (Common Directorship with the Management Company) Investment held in the Fund: 2,828,352 (2020: 2,799,576) units 27,967 27,667

20 NBP MONEY MARKET FUND

(Un-audited) (Audited) September 30, June 30, 2020 2020 ------Rupees in '000 ------Reliance Enterprises (COO Holding more than 10% in RE) Investment held in the Fund: 2,886 (2020: 2,852) units 29 28

Fauji Fertilizer Company Limited (Common Directorship with the Management Company) Investment held in the Fund: 761,910,581 (2020: Nil) units 7,533,848 -

Syed Hasan Irtiza Kazmi - Director of Management Company Investment held in the Fund: 205,848 (2020: 203,405) units 2,035 2,010

Humayun Bashir - Director of Management Company Investment held in the Fund: 1,978,712 (2020: Nil) units 19,566 -

Portfolios Managed By the Management Company Investment held in the Fund: 53,817,699 (2020: 27,052,457) units 532,153 267,345

12 DATE OF AUTHORISATION FOR ISSUE

This condensed interim financial information was authorised for issue on October 27, 2020 by the Board of Directors of the Management Company.

13 GENERAL

13.1 Figures have been rounded off to the nearest thousand rupees unless otherwise specified.

13.2 Corresponding figures have been rearranged and reclassified, wherever necessary, for the purpose of better presentation.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

21 Head Office 7th Floor, Clifton Diamond Building, Block No.4, Scheme No.5, Clifton, Karachi. UAN: 021-111-111-632 Toll Free: 0800-20002 Sms: INVEST to 9995 Fax: 021-35825335 Email: [email protected] Website: www.nbpfunds.com /nbpfunds NBP ISLAMIC SAVINGS FUND NBP ISLAMIC SAVINGS FUND

MISSION STATEMENT

To rank in the top quartile in performance of NBP FUNDS relative to the competition, and to consistently offer Superior risk-adjusted returns to investors.

01 NBP ISLAMIC SAVINGS FUND

FUND'S INFORMATION 03

DIRECTORS' REPORT 05

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES 07

CONDENSED INTERIM INCOME STATEMENT 08 Contents

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME 09

CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND 10

CONDENSED INTERIM CASH FLOW STATEMENT 11

NOTES TO AND FORMING PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS 12

02 NBP ISLAMIC SAVINGS FUND

FUNDS INFORMATION

Management Company

NBP Fund Management Limited - Management Company

Board of Directors of Management Company

Shaikh Muhammad Abdul Wahid Sethi Chairman Dr. Amjad Waheed Chief Executive Officer Mr. Saad ur Rahman Khan Director Syed Hasan Irtiza Kazmi Director Mr. Ali Saigol Director Mr. Imran Zaffar Director Mr. Khalid Mansoor Director Mr. Humayun Bashir Director Mr. Saad Amanullah Khan Director

Company Secretary & COO

Mr. Muhammad Murtaza Ali

Chief Financial Officer

Mr. Khalid Mehmood

Audit & Risk Committee

Mr. Saad Amanullah Khan Chairman Syed Hasan Irtiza Kazmi Member Mr. Imran Zaffar Member Mr. Humayun Bashir Member

Human Resource Committee

Mr. Khalid Mansoor Chairman Shaikh Muhammad Abdul Wahid Sethi Member Mr. Ali Saigol Member Mr. Humayun Bashir Member

Strategy & Business Planning Committee

Mr. Humayun Bashir Chairman Mr. Saad ur Rahman Khan Member Mr. Ali Saigol Member Mr. Imran Zaffar Member Mr. Saad Amanullah Khan Member

Trustee Central Depository Company of Pakistan Limited CDC House, 99-B, Block "B" S.M.C.H.S., Main Shahra-e-Faisal, Karachi.

Bankers to the Fund

Al Baraka Islamic Bank Limited Allied Bank Limited Bank Alfalah Limited Bank Al Habib Limited Bankislami Pakistan Limited Dubai Islamic Bank Pakistan Limited Habib Bank Limited Habib Metropolitan Bank Limited JS Bank Limited MCB Bank Limited Meezan Bank Limited National Bank of Pakistan Silk Bank Limited Sindh Bank Limited Soneri Bank Limited Summit Bank Limited United Bank Limited

03 NBP ISLAMIC SAVINGS FUND

Auditors

Deloitte Yousuf Adil Chartered Accountants Cavish Court, A-35, Block 7 & 8, KCHSU, Sharae Faisal Karachi-75350 Pakistan.

Legal Advisor

Akhund Forbes D-21, Block, Scheme 5, Clifton, Karachi 75600, Pakistan.

Head Office:

7th Floor Clifton Diamond Building, Block No. 4, Scheme No. 5, Clifton Karachi. UAN: 021 (111-111-632), (Toll Free): 0800-20002, Fax: (021) 35825329 Website: www.nbpfunds.com

Lahore Office:

7-Noon Avenue, Canal Bank, Muslim Town, Lahore. UAN: 042-111-111-632 Fax: 92-42-35861095

Islamabad Office:

1st Floor, Ranjha Arcade Main Double Road, Gulberg Greens, Islamabad. UAN: 051-111-111-632 Fax: 051-4859031

Peshawar Office:

Opposite Gul Haji Plaza, 2nd Floor National Bank Building University Road Peshawar, UAN: 091-111 111 632 Fax: 091-5703202

Multan Office:

Khan Center, 1st Floor, Abdali Road, Multan. Phone No. : 061-4540301-6, 061-4588661-2 & 4

04 NBP ISLAMIC SAVINGS FUND

DIRECTORS REPORT

The Board of Directors of NBP Fund Management Limited is pleased to present the unaudited Condensed Interim financial statements of NBP Islamic Savings Fund (NBP-ISF) for the quarter ended September 30, 2020.

Fund's Performance

The size of NBP Islamic Savings Fund has decreased from Rs. 3,968 million to Rs. 3,407 million during the period (i.e. a decline of 14%). During the period, the unit price of the Fund has increased from Rs. 9.5313 on June 30, 2020 to Rs. 9.6697 on September 30, 2020, thus showing return of 5.8% p.a. as compared to its benchmark return of 4.4% p.a. for the same period. The performance of the Fund is net of management fee and other expenses.

NBP-ISF is categorized as a Shariah Compliant Income Fund and has been awarded stability rating of 'AA- (f)' by PACRA. During the period under review, the market witnessed issuance of a decent size of Shariah Compliant commercial papers to meet the increasing funding need for working capital/bridge financing for fixed capital investments. During 1QFY21, the State Bank of Pakistan (SBP) held Monetary Policy Committee (MPC) meeting in September 2020 and, in line with the market expectation, left the Policy Rate unchanged at 7%. The SBP cited that the outlook for growth and business confidence has improved since the last review. The CPI inflation clocked in at 9% for September 2020, above the market consensus due to spike in prices of perishable food items.

The Fund has earned a total income of Rs. 69.72 million during the period. After deducting total expenses of Rs. 15.53 million, the net income is Rs. 54.19 million. The asset allocation of NBP Islamic Savings Fund as on September 30, 2020 is as follows:

Acknowledgement

The Board also wishes to place on record its appreciation for the hard work, dedication and commitment shown by the staff and the Trustee.

On behalf of the Board of NBP Fund Management Limited

Chief Executive Director

Date: October 27, 2020 Place: Karachi.

05 NBP ISLAMIC SAVINGS FUND

06 NBP ISLAMIC SAVINGS FUND

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES AS AT SEPTEMBER 30, 2020

Un-Audited Audited September June 30, 30, 2020 2020 Note (Rupees in '000)

ASSETS

Balances with banks 4 1,539,753 2,092,481 Investments 5 1,911,849 1,938,519 Profit receivable 24,909 22,621 Receivable against conversion of units - 16,135 Advances, deposits, prepayments and other receivables 1,464 1,547 Total assets 3,477,975 4,071,303

LIABILITIES

Payable to Management Company 10,021 13,723 Payable to Trustee 243 287 Payable to Securities and Exchange Commission of Pakistan 189 653 Payable on redemption of units 35,516 68,330 Accrued expenses and other liabilities 25,157 20,660 Total liabilities 71,126 103,653

Net Assets 3,406,849 3,967,650

Unit Holders Funds (as per statement attached) 3,406,849 3,967,650

Contingencies and commitments 7

Number of units

Number of units in issue 352,321,394 416,273,709

Rupees Rupees

Net asset value per unit 9.6697 9.5313

The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

07 NBP ISLAMIC SAVINGS FUND

CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter Quarter Ended Ended September September 30, 2020 30, 2019 Note (Rupees in '000) INCOME Income from sukuk, ijarah bonds and commercial paper 12,971 15,532 Income from term deposits receipts 17,746 - Profit on bank deposits 32,780 73,237 Income from Bai-Moajjal 6,223 Net (Loss) on sale of investment - (834) Net unrealised (diminution) in the value of investments carried 'at fair value through profit or loss' - (683) Total Income 69,720 87,252

EXPENSES Remuneration of the Management Company 4,867 5,020 Sindh Sales Tax on Management Fee 633 653 Accounting and operational charges to the Management Company 946 668 Selling and Marketing Expenses 8 6,623 4,378 Remuneration of the Trustee 710 501 Sindh Sales Tax on Trustee Fee 92 65 Annual fee - Securities and Exchange Commission of Pakistan 189 134 Securities transaction cost - 8 Settlement and bank charges 28 75 Annual listing fee 7 7 Auditors' remuneration 92 175 Printing Expense - 1 Rating Fee 104 103 Shariah Advisor Fee 124 110 Legal and Professional Charges 13 7 Total Expenses 14,428 11,905

Net Income from operating activities 55,292 75,347

Provision for sindh workers' welfare fund 6 (1,106) (1,507)

Net income for the period before taxation 54,186 73,840

Taxation 9 - -

Net income for the period after taxation 54,186 73,840

Allocation of Net income for the period: Net income for the period after taxation 54,186 73,840 Income already paid on units redeemed (7,126) (10,405) 47,060 63,435

Accounting income available for distribution: - Relating to Capital Gains - - - Excluding Capital Gains 47,060 63,435 47,060 63,435

The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

08 NBP ISLAMIC SAVINGS FUND

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter Quarter Ended Ended September September 30, 2020 30, 2019 (Rupees in '000)

Net income for the period after taxation 54,186 73,840

Other comprehensive income - -

Total comprehensive income for the period 54,186 73,840

The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

09 NBP ISLAMIC SAVINGS FUND

CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNITHOLDERS FUND (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter Ended September 30, 2020 Quarter Ended September 30, 2019 Capital Undistributed Capital Undistributed Total Total Value Income Value Income (Rupees in '000)

Net assets at the beginning of the period 3,907,523 60,127 3,967,650 3,585,988 56,382 3,642,370

Issuance of 57,172,686 units (2019: 56,467,942 units) - Capital Value 544,930 544,930 537,722 537,722 - Element of income 2,659 2,659 6,725 6,725 Total proceeds on issuance of units 547,589 - 547,589 544,447 544,447

Redemption of 121,125,001 units (2019: 183,200,709 units) - Capital Value (1,154,479) - (1,154,479) (1,744,547) - (1,744,547) - Element of loss (971) (7,126) (8,097) (1,350) (10,405) (11,755) Total payments on redemption of units (1,155,450) (7,126) (1,162,576) (1,745,897) (10,405) (1,756,302)

Total comprehensive income for the period - 54,186 54,186 - 73,840 73,840

Net assets at the end of the period 3,299,662 107,187 3,406,849 2,384,538 119,817 2,504,355

Accumulated income brought forward - Realised income 60,127 58,700 - Unrealised income - (2,318) 60,127 56,382 Accounting income available for distribution for the period: - Relating to Capital Gains - - - Excluding Capital Gains 63,435 47,060 63,435

Undistributed carried forward 107,187 119,817

Undistributed income comprising of : - Realised income 107,187 120,500 - Unrealised income - (683) 107,187 119,817

Net Asset Value per unit at beginning of the period 9.5313 9.9920

Net Asset Value per unit at period end 9.6697 9.6473

The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

10 NBP ISLAMIC SAVINGS FUND

CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter Quarter Ended Ended September September 30, 2020 30, 2019 Note (Rupees in '000) CASH FLOW FROM OPERATING ACTIVITIES

Net income for the period 54,186 73,840

Adjustments Amortisation of preliminary expenses and floatation costs - - loss on sale of investments - 834 Net unrealised dimination in the value of investments carried 'at fair value through profit or loss' - 683 54,186 75,357 Decrease in assets Investments 26,670 722,634 Profit receivable (2,288) 854 Advances, deposits, prepayments and other receivables 83 110 24,465 723,598 (Decrease) in liabilities Payable to Management Company (3,702) (1,514) Payable to Trustee (44) (147) Payable to Securities and Exchange Commission of Pakistan (464) (2,149) Accrued expenses and other liabilities 4,497 (17,778) 287 (21,588)

Net cash generated from operating activities 78,938 777,367

CASH FLOW FROM FINANCING ACTIVITIES

Receipts from issue of units 563,724 529,870 Payments on redemption of units (1,195,390) (1,730,230) Net cash used in financing activities (631,666) (1,200,360)

Net decrease in cash and cash equivalents during the period (552,728) (422,993)

Cash and cash equivalents at the beginning of the period 2,092,481 2,118,188

Cash and cash equivalents at the end of the period 4 1,539,753 1,695,195

The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

11 NBP ISLAMIC SAVINGS FUND

NOTES TO AND FORMING PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

1 LEGAL STATUS AND NATURE OF BUSINESS

NBP Islamic saving Fund (the Fund) was established under a Trust Deed executed between NBP Fund Management Limited as the Management Company and Central Depository Company of Pakistan Limited (CDC) as the Trustee. The Trust Deed was executed on August 20, 2007 and was approved by the Securities and Exchange Commission of Pakistan (SECP) on August 17, 2007 in accordance with the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 ( the NBFC Rules). The Trust Deed was amended through first supplemental trust deed executed for the change of name and categorisation of the Fund as shariah-compliant income scheme as per the criteria for categorization of open end collective investment scheme as specified by SECP and other allied matters. CDC retired as the Trustee of the Fund and MCB Financial Services Limited (MCBFSL) was appointed as the new Trustee with effect from November 22, 2011. The SECP approved the appointment of MCBFSL as the Trustee in place of CDC on November 15, 2011. Accordingly, the Trust Deed of the Fund was revised through a supplemental Trust Deed executed between the Management Company, CDC and MCBFSL. Thereafter, on July 17, 2014 CDC was re-appointed as the new Trustee of the Fund, after MCBFSL retired on prior day.

The Fund is an open-ended mutual fund and classified as shariah compliant "income" scheme by the Management Company and is listed on the Pakistan Stock Exchange Limited. Units are offered for public subscription on a continuous basis. The units of the Fund are transferable and can be redeemed by surrendering them to the Fund.

Management Company has obtained approval of SECP, pursuant to which the category of the Fund was changed from shariah compliant aggressive fixed income scheme to 'shariah compliant income scheme' and the name of the Fund was 'NAFA Islamic Income Fund' with effect from March 14, 2017.

The objective of the Fund is to provide preservation of capital and earn a reasonable rate of return by investing in Shariah compliant securities, having a good credit rating and liquidity.

The Pakistan Credit Rating Agency Limited (PACRA) has assigned an asset manager rating of 'AM1' to the Management Company and has assigned stability rating of 'AA-(f)' to the Fund.

Title of the assets of the Fund is held in the name of CDC as a trustee of the Fund.

2 STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. The accounting and reporting standards applicable in Pakistan comprise of:

- International Financial Reporting Standards (IFRS Standards) issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;

- Provisions of and directives issued under the Companies Act, 2017 along with part VIIIA of the repealed Companies Ordinance, 1984; and

12 NBP ISLAMIC SAVINGS FUND

These financial statements are presented in Pakistan Rupee, which is the Fund's functional and presentation currency.

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(Un-Audited) (Audited) September June 30, 4 BANK BALANCES Note 30, 2020 2020 (Rupees in '000)

In current accounts 26,273 22,104 In savings accounts 1,513,480 2,070,377 1,539,753 2,092,481

(Un-Audited) (Audited) September June 30, 30, 2020 2020 5 INVESTMENTS (Rupees in '000) At fair value through profit or loss Commercial Paper 5.1 511,339 414,009 Term Deposit Receipt 5.2 1,086,000 1,210,000 Bai-Moajjal 5.3 314,510 314,510 1,911,849 1,938,519

13 NBP ISLAMIC SAVINGS FUND

5.1 This represents Commercial paper of K-Electric Limited which carries profit at rates ranging from 5.92% to 7.12% per annum

5.2 This represents three month term deposit receipt of 586 million with UBL Ameen at 6.65% and 39 days term deposit receipt of 500 million having profit of 6.75% with Bank Islami Pakistan Limited (related party) being matured on Nov 06, 2020 and October 30, 2020 respectively.

5.3 This represents bai-muajjals of commercial paper with Pak Brunei Investment Company on June 15, 2020. This carry profit at the rate of 7.85% and will mature on December 14, 2020.

6 PROVISION FOR SINDH WORKERS' WELFARE FUND

The Fund, being prudent, recognised provision for SWWF amounting to Rs.19.747 million as at September 30, 2020 in this condensed interim financial information, Had the provision not been made, net assets value per unit at September 30, 2020 would have been higher by Rs. 0.056 per unit (June 30, 2020: Rs. 0.0448 per unit).

7 CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at September 30, 2020 and June 30, 2020.

8SELLING AND MARKETING EXPENSES

9 TAXATION

The Fund's income is exempt from income tax as per clause 99 of part I of the Second Schedule to the Income Tax Ordinance, 2001 subject to the condition that not less than 90 percent of the accounting income for the year as reduced by capital gains, whether realised or unrealised, is distributed amongst the unitholders. Furthermore, as per regulation 63 of the NBFC Regulations, the Fund is required to distribute 90 percent of the net accounting income other than capital gains to the unit holders. Since the management intends to distribute the required minimum percentage of income earned by the Fund for the year ending June 30, 2021 to the unit holders in the manner as explained above, no provision for taxation has been made in these condensed interim financial statements.

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

10 TOTAL EXPENSE RATIO

The total expense ratio (TER) of the Fund for the year ended September 30, 2020 is 1.64% (June 30, 2020: 2.06%) which includes 0.21% (June 30, 2020: 0.34%) representing government levies on the Fund such as sales taxes, Sindh Workers' Welfare Fund, annual fee payable to the SECP, etc. This ratio is within the maximum limit of 2.5% prescribed under the NBFC Regulations for a collective investment scheme categorised as 'Shariah compliant income scheme'.

14 NBP ISLAMIC SAVINGS FUND

11 DETAILS OF NON-COMPLIANT INVESTMENTS

The Securities and Exchange Commission of Pakistan vide Circular no. 7 of 2009 dated March 6, 2009, required all Asset Management Companies to categorize funds under their management on the basis of criteria laid down in the Circular. The Board has approved the category of the fund as 'income scheme'.

The SECP vide Circular no. 16 dated July 07, 2010, prescribed specific disclosures for the scheme holding investments that are non-compliant either with the minimum investment criteria specified for the category assigned to such schemes or with investment requirements of their constitutive documents.

Following is the detail of non-compliant investments :

Name of Non- Value of Investment Provision held, if Value of Investment compliant Non-compliance of Clause % of net assets % of gross assets before Provision any after Provision investment

New Allied Rating is below investment Electronics grade as prescribed in clause Industries (Private) 9(v) of the Annexure of 110,000 (110,000) - - - Limited Circular 7 of - Sukuk 1 2009

New Allied Rating is below investment Electronics grade as prescribed in clause Industries (Private) 9(v) of the Annexure of 4,905 (4,905) - - - Limited Circular 7 of - Sukuk 2 2009

Total carrying value 114,905 (114,905)

11.1 At the time of purchase, these sukuks were in compliance with the aforementioned Circular. However, they either subsequently defaulted or were downgraded to non investment grade.

12 TRANSACTIONS WITH CONNECTED PERSONS

12.1 Connected persons and related parties include NBP Fund Management Limited being the Management Company, Central Depository Company of Pakistan Limited being the Trustee, National Bank of Pakistan being the Parent of the Management Company and Baltoro Growth Fund. Limited being the sponsor of the Management Company. It also includes associated companies of Management Company due to common directorship, post-employment benefit funds of the Management Company, its parent and sponsor. It also includes subsidiaries and associated companies of the Parent of the Management Company and other collective investment schemes (CIS) managed by the Management Company, directors and key management personnel of the Management Company and any person or company beneficially owning directly or indirectly 10% or more of the units in issue / net assets of the Fund.

12.2 The transactions with connected persons and related parties are carried at agreed terms.

12.3 Remuneration of the Management Company is determined in accordance with the provisions of the NBFC Regulations.

12.4 Remuneration payable to the Trustee is determined in accordance with the provisions of the NBFC Regulations and the Trust Deed.

15 NBP ISLAMIC SAVINGS FUND

------Un-audited------Quarter Ended Quarter Ended September 30, September 30, 2020 2019 12.5 Details of the transactions with connected persons are as follows: (Rupees in '000) NBP Fund Management Limited - Management Company Management fee expense for the period 4,867 5,020 Sindh Sales Tax on Management Fee 633 653 Reimbursement of operational expenses 946 668 Sales load & transfer load 1,104 982 Selling & Marketing expenses 6,623 4,378 Units issued / transferred in 1,038 units (2019: Nil units) 10 - Central Depository Company of Pakistan Limited - Trustee Trustee fee expense for the period 710 510 Sindh Sales Tax on Trustee Fee 92 65 Settlement Charges 2 2 Bank Islami Pakistan Limited (Common Directorship) Profit on savings account 421 22,295 Profit on Term deposit receipts 7,698 14,690 Placement of term deposit receipts 1,090,000 1,135,000 Chief Financial Officer of the Management Company Units issued / transferred in Nil units (2019: 51,525 units) - 500 Employees of the Management Company Units issued / transferred in 388,025 units (2019: 60,196 units) 3,721 579 Units redeemed / transferred out 1,625,025 units (2019: 435,888 units) 15,571 4,176

Pakistan Stock Exchange (Common Directorship) Listing fees paid 25 25 (Un-Audited) (Audited) As at As at September June 30, 2020 30, 2020 12.6 Amounts outstanding as at quarter end (Rupees in '000)

NBP Fund Management Limited - Management Company Management fee payable 1,447 1,959 Sindh Sales Tax payable on Management Fee 188 255 Sindh Sales Tax on sales load 48 1,013 Sales load & transfer load 769 2,430 Accounting and operational charges to the Management Company 946 971 Selling & Marketing payable 6,623 7,095 Investment held in the Fund 1,038 units: (June 30, 2020: Nil units) 10 -

Central Depository Company of Pakistan Limited Remuneration payable 215 254 Sindh Sales Tax payable 28 33 Settlement Charges payable 5 3 Security deposits 100 100

16 NBP ISLAMIC SAVINGS FUND

(Un-Audited) (Audited) As at As at September June 30, 2020 30, 2020 (Rupees in '000)

National Bank of Pakistan - Parent of the Management Company Balance in account 4,514 9,119

Employees of Management Company Investment held by the executives in the Fund 1,394,643 units;( June 30, 2020: 2,633,581 units) 13,486 25,101

Chief Financial Officer of the Management Company Investment held in the Fund 5,877 units: (June 30, 2020: 5,877 units) 57 56

BankIslami Pakistan Limited (Common Directorship with the Management Company) Balance in savings accounts 2,159 2,058 Profit Receivable on Bank Balance 15 1,060 Term deposit receipts 500,000 590,000 Profit Receivable on TDR 925 113

13 DATE OF AUTHORISATION FOR ISSUE

These financial statements were authorised for issue by the Board of Directors of the Management Company on October 27,2020.

14 GENERAL

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

14.2 Corresponding figures have been rearranged or reclassified, where necessary, for the purposes of better presentation.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

17 Head Office 7th Floor, Clifton Diamond Building, Block No.4, Scheme No.5, Clifton, Karachi. UAN: 021-111-111-632 Toll Free: 0800-20002 Sms: INVEST to 9995 Fax: 021-35825335 Email: [email protected] Website: www.nbpfunds.com /nbpfunds NBP Government Securities Savings Fund NBP Government Securities Savings Fund

MISSION STATEMENT

To rank in the top quartile in performance of NBP FUNDS relative to the competition, and to consistently offer Superior risk-adjusted returns to investors.

01 NBP Government Securities Savings Fund

FUND'S INFORMATION 03

DIRECTORS' REPORT 05

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES 09

CONDENSED INTERIM INCOME STATEMENT 10 Contents

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME 11

CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND 12

CONDENSED INTERIM CASH FLOW STATEMENT 13

NOTES TO AND FORMING PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS 14

02 NBP Government Securities Savings Fund

FUNDS INFORMATION Management Company NBP Fund Management Limited - Management Company Board of Directors of Management Company Shaikh Muhammad Abdul Wahid Sethi Chairman Dr. Amjad Waheed Chief Executive Officer Mr. Saad ur Rahman Khan Director Syed Hasan Irtiza Kazmi Director Mr. Ali Saigol Director Mr. Imran Zaffar Director Mr. Khalid Mansoor Director Mr. Humayun Bashir Director Mr. Saad Amanullah Khan Director Company Secretary & COO Mr. Muhammad Murtaza Ali Chief Financial Officer Mr. Khalid Mehmood Audit & Risk Committee Mr. Saad Amanullah Khan Chairman Syed Hasan Irtiza Kazmi Member Mr. Imran Zaffar Member Mr. Humayun Bashir Member Human Resource Committee Mr. Khalid Mansoor Chairman Shaikh Muhammad Abdul Wahid Sethi Member Mr. Ali Saigol Member Mr. Humayun Bashir Member Strategy & Business Planning Committee Mr. Humayun Bashir Chairman Mr. Saad ur Rahman Khan Member Mr. Ali Saigol Member Mr. Imran Zaffar Member Mr. Saad Amanullah Khan Member Trustee Central Depository Company of Pakistan Limited CDC House, 99-B, Block "B" S.M.C.H.S., Main Shahra-e-Faisal, Karachi. Bankers to the Fund Allied Bank Limited Bank Alfalah Limited Bank Al Habib Limited Bank Islami Pakistan Limited Habib Bank Limited Habib Metropolitan Bank Limited JS Bank Limited Khushali Microfinance Bank Limited MCB Bank Limited National Bank of Pakistan Samba Bank Limited Sindh Bank Limited Soneri Bank Limited Summit Bank Limited Telenor Microfinance Bank Limited The First Microfinance Bank Limited United Bank Limited U Microfinance Bank Limited Zarai Taraqiati Bank Limited

03 NBP Government Securities Savings Fund

Auditors A.F. Ferguson & Co. Chartered Accountants State Life Building No. 1-C I.I. Chundrigar Road, P.O.Box 4716 Karachi. Legal Advisor Akhund Forbes D-21, Block, Scheme 5, Clifton, Karachi 75600, Pakistan. Head Office: 7th Floor Clifton Diamond Building, Block No. 4, Scheme No. 5, Clifton Karachi. UAN: 021 (111-111-632), (Toll Free): 0800-20002, Fax: (021) 35825329 Website: www.nbpfunds.com Lahore Office: 7-Noon Avenue, Canal Bank, Muslim Town, Lahore. UAN: 042-111-111-632 Fax: 92-42-35861095 Islamabad Office: 1st Floor, Ranjha Arcade Main Double Road, Gulberg Greens, Islamabad. UAN: 051-111-111-632 Phone: 051-2514987 Fax: 051-4859031 Peshawar Office: Opposite Gul Haji Plaza, 2nd Floor National Bank Building University Road Peshawar, UAN: 091-111 111 632 Fax: 091-5703202 Multan Office:

Khan Center, 1st Floor, Abdali Road, Multan. Phone No. : 061-4540301-6, 061-4588661-2&4

04 NBP Government Securities Savings Fund

DIRECTORS REPORT

The Board of Directors of NBP Fund Management Limited is pleased to present the unaudited Condensed Interim financial statements of NBP Government Securities Savings Fund (NGSSF) for the quarter ended September 30, 2020.

Fund's Performance

The size of NBP Government Securities Savings Fund decreased from Rs. 692 million to Rs. 224 million during the period (i.e. a drop of 68%). During the period, the unit price of the Fund has increased from Rs. 10.3490 on June 30, 2020 to Rs. 10.3635 on September 30, 2020, thus showing return of 0.6% p.a. as compared to the benchmark return of 7.0% p.a. for the same period. The performance of the Fund is net of management fee and all other expenses. The Fund has been assigned a stability rating of 'AA- (f)' by PACRA.

During 1QFY21, the State Bank of Pakistan (SBP) held Monetary Policy Committee (MPC) meeting in September 2020 and, in line with the market expectation, left the Policy Rate unchanged at 7%. The SBP cited that the outlook for growth and business confidence has improved since the last review. The CPI inflation clocked in at 9% for September 2020, above the market consensus due to spike in prices of perishable food items. During the period under review, T-Bills yields increased by 44 bps, 55 bps, and 59 bps for 3-month, 6-month, and 12-month tenures respectively, primarily due to demand versus supply side factors. Long-term sovereign yields responded to the above expected inflation readings and the market expectation of bottoming out of the Policy Rate as yields on PIBs witnessed an increase of 76 bps, 102 bps and 106 bps for 3-year, 5-year, and 10-year tenures, respectively. The SBP held six T-Bills auctions during the period, realizing a total of Rs. 1.5 trillion against the maturity of Rs. 1.9 billion and target of Rs. 1.9 trillion. The SBP held three (3) fixed rate PIB auctions during the period, realizing a total of Rs. 249 billion.

The Fund has earned a total income of Rs. 1.022 million during the period. After accounting for total expenses of Rs. 1.528 million, the net loss is Rs. 0.506 million. The below chart presents the asset allocation and the weighted average credit rating of each of the sub-asset classes of NGSSF.

05 NBP Government Securities Savings Fund

Acknowledgement

The Board also wishes to place on record its appreciation for the hard work, dedication and commitment shown by the staff and the Trustee.

On behalf of the Board of NBP Fund Management Limited

Chief Executive Director

Date: October 27, 2020 Place: Karachi.

06 NBP Government Securities Savings Fund

07 NBP Government Securities Savings Fund

08 NBP Government Securities Savings Fund

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES AS AT SEPTEMBER 30, 2020

Un-Audited Audited September June 30,2020 Note 30,2020 (Rupees in '000)

ASSETS

Bank Balances 82,943 214,955 Investments 4. 202,583 527,289 Profit receivable 12,283 14,519 Receivable against Issuance of units - 345 Deposits and prepayments 1,011 1,032 Total assets 298,820 758,140

LIABILITIES

Payable to NBP Fund Management Limited - Management Company 6,397 7,146 Payable to Central Depository Company of Pakistan Limited - Trustee 64 95 Payable to Securities and Exchange Commission of Pakistan 21 161 Payable against purchase of investments 62,926 52,638 Payable against redemption of units - 744 Accrued expenses and other liabilities 5,214 5,183 Total liabilities 74,622 65,967

NET ASSETS 224,198 692,173

UNIT HOLDERS FUNDS (AS PER STATEMENT ATTACHED) 224,198 692,173

CONTINGENCIES AND COMMITMENTS 6. - -

Number of units in issue 21,633,379 66,883,230

NET ASSET VALUE PER UNIT 10.3635 10.3490

The annexed notes 1 to 12 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

09 NBP Government Securities Savings Fund

CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter Ended September 30, September 30, Note 2020 2019 (Rupees in '000) INCOME

Income from Government Securities 5,597 18,541 Income on term deposit receipts 1,376 Profit on bank deposits 2,682 7,806 Capital (loss) / Gain on sale of investments (6,993) 28 Net unrealised appreciation / (diminution) on re-measurement of investments classified 'at fair value through profit or loss' (1,640) 1,391 Total income 1,022 27,766

EXPENSES Remuneration of the Management Company 259 526 Sindh sales tax on remuneration of the Management Company 34 68 Allocation of accounting & operational expenses 103 190 Remuneration of Central Depository Company of Pakistan Limited - Trustee 67 124 Sindh sales tax on remuneration of Trustee 9 16 Annual fee - Securities and Exchange Commission of Pakistan 21 38 Legal & Professional charges 9 18 Settlement and bank charges 59 11 Security Transaction Cost - 10 Annual listing fee 6 6 Auditors' remuneration 111 65 Fund rating fee 84 79 Printing charges 46 6 Selling and Marketing Expense 7 720 1,100 Total Expenses 1,528 2,257

Net Loss / Income from operating activities (506) 25,509

Provision for Sindh Workers' Welfare Fund 5 - (510)

Net Loss / Income for the period before taxation (506) 24,999

Taxation 8 - - Net Loss / Income for the period after taxation (506) 24,999

Allocation of net income for the period - Net income for the period after taxation - 24,999 - Income already paid on units redeemed - (18,304) - 6,695 Accounting income available for distribution: - Relating to capital gains - 1,419 - Excluding capital gains - 5,276

- 6,695

The annexed notes 1 to 12 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

10 NBP Government Securities Savings Fund

CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter Ended

September 30, September 30, 2020 2019 (Rupees in '000)

Net (Loss) / Income for the period after taxation (506) 24,999

Other Comprehensive Income - -

Total comprehensive (Loss) / income for the period (506) 24,999

The annexed notes 1 to 12 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

11 NBP Government Securities Savings Fund

CONDENSED STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020 Sep-20 Sep-19 Capital Undistributed Total Capital Undistributed Total Value income Value income ------(Rupees in '000) ------

Net assets at beginning of the year 650,168 42,005 692,173 1,051,874 40,423 1,092,297

Issuance of 9,664,809 units (2019: 5,312,996 - Income on term deposit receipts - Capital value 100,021-- 100,021 54,828 54,828 -Element of Income 73 - 73 1,903 - 1,903 Total proceeds on issuance of units 100,094 - 100,094 56,731 - 56,731

Redemption of 54,914,660 units (2019: 92,681,744 units) - Capital value (568,312)- (568,312) (956,440)- (956,440) -Element of loss 749 - 749 (92) (18,304) (18,396) Total payments on redemption of units (567,563) - (567,563) (956,532) (18,304) (974,836)

Total comprehensive Loss / income for the year - (506) (506) - 24,999 24,999

Net assets at end of the year 182,699 41,499 224,198 152,073 47,118 199,191 . Undistributed income brought forward - Realised 21,754 46,868 - Unrealised 20,251 (6,445) 42,005 40,423

Accounting income available for distribution: - Relating to capital gains - 1,419 - Excluding capital gains - 5,276 - 6,695

Total comprehensive Loss for the year (506) -

Undistributed income carried forward 41,499 47,118

Undistributed income carried forward - Realised 43,139 45,727 - Unrealised (1,640) 1,391 41,499 47,118

(Rupees) (Rupees)

Net assets value per unit at beginning of the year 10.3490 10.3196

Net assets value per unit at end of the Period 10.3635 10.7799

The annexed notes 1 to 12 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

12 NBP Government Securities Savings Fund

CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter Ended September 30, September 30, 2020 2019 (Rupees in '000) CASH FLOW FROM OPERATING ACTIVITIES

Net Loss / Income for the period (506) 24,999

Net unrealised appreciation / (diminution) on re-measurement of investments classified 'at fair value through profit or loss' 1,640 (1,391)

1,134 23,608 Decrease in assets Investments 323,066 578,569 Profit receivable 2,236 9,765 Deposits and prepayments 21 61 325,323 588,395

Increase / (decrease) in liabilities Payable to the Management Company (749) 121 Payable to Central Depository Company of Pakistan Limited - Trustee (31) (140) Payable to the Securities and Exchange Commission of Pakistan (140) (498) Payable against purchase of investments 10,288 (509,729) Accrued expenses and other liabilities 31 (174) 9,399 (510,420)

Net cash generated from operating activities 335,856 101,583

CASH FLOW FROM FINANCING ACTIVITIES Net receipts from issue of units 100,439 43,474 Net payments on redemption of units (568,307) (974,616) Net cash (used in) operating activities (467,868) (931,142)

Net (decrease) in cash and cash equivalents during the period (132,012) (829,559)

Cash and cash equivalents at the beginning of the period 214,955 861,816

Cash and cash equivalents at the end of the period 82,943 32,257

The annexed notes 1 to 12 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

13 NBP Government Securities Savings Fund

NOTES TO AND FORMING PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

1. LEGAL STATUS AND NATURE OF BUSINESS

NBP Government Securities Savings Fund (the Fund) was established under a Trust Deed executed between NBP Fund Management Limited as Management Company and Central Depository Company of Pakistan Limited (CDC) as the Trustee. The Trust Deed was executed on June 05, 2014 and was approved by the Securities and Exchange Commission of Pakistan (SECP) on May 30, 2014. under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (NBFC Rules).

The Management Company of the Fund has been licensed to act as an Asset Management Company under the NBFC Rules through a certificate of registration issued by the SECP. The principal office of the Management Company is situated at 7th Floor, Clifton Diamond Building, Block No. 4, Scheme No. 5, Clifton, Karachi. The Management Company is a member of the Mutual Funds Association of Pakistan (MUFAP).

The Fund is an open-ended mutual fund and is listed on the Pakistan Stock Exchange. The units of the Fund are transferable and can be redeemed by surrendering them to the Fund. The units are listed on the Pakistan Stock Exchange. The Fund is categorized as an Open-End "Income Scheme" as per the criteria laid down by the Securities and Exchange Commission of Pakistan for categorization of Collective Investment Schemes (CIS).

The objective of NBP Government Securities Savings Fund is to provide competitive return from portfolio of low credit risk by investing primarily in Government Securities.

The Pakistan Credit Rating Agency (PACRA) has assigned an asset manager rating of AM1 to the Management Company and stability rating of 'AA-(f)' to the Fund.

Title of the assets of the Fund is held in the name of Central Depository Company of pakistan limited (CDC) as trustee of the Fund.

2. BASIS OF PREPARATION

2.1 Statement of Compliance

- International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;

- Provisions of and directives issued under the Companies Act, 2017 along with part VIIIA of the repealed Companies Ordinance, 1984; and

14 NBP Government Securities Savings Fund

These financial statements are presented in Pakistan Rupee, which is the Fund's functional and presentation currency.

3. SUMMARY OF ACCOUNTING POLICIES

Un-audited Audited 4. INVESTMENTS September June 30, 2020 30, 2020 (Rupees in '000) At fair value through Market Treasury Bills 4.1 62,914 58,540 Pakistan Investment Bonds 4.2 104,669 433,749 Term deposit receipt 4.3 35,000 35,000 202,583 527,289 4.1 Investment in Treasury Bills

Face Value Market Value (Rs. Market value as a Market value as a Tenor in Purchased Disposed / As at In '000') Issue date As at July 1, percentage of net percentage of total months during the matured during September 30, September 30, 2020 assets investments period the period 2020 2020

7-Nov-19 12 53,930 - 53,930 - - - - 24-Oct-19 12 3,500 - 3,500 - - - - 12-Sep-19 12 2,500 - 2,500 - - - - 9-Apr-20 6 - 126,000 63,000 63,000 62,914 28.06 31.06 16-Aug-19 12 - 10,000 10,000 - - - - 26-Mar-20 6 - 38,000 38,000 - - - - 62,914 28.06 31.06

Carrying value before fair value adjustment as at September 30, 2020 62,926

15 NBP Government Securities Savings Fund

4.2 Investment in Pakistan Investment Bonds

Face Value Market Value (Rs. Market value as a Market value as a Tenor in Purchased Disposed / As at In '000') Issue date As at July 1, percentage of net percentage of total years during the matured during September 30, September 30, 2020 assets investments period the period 2020 2020

12-Jul-18 10 34,000 - - 34,000 36,272 16.18 17.90 19-Sep-19 3 120,900 - 75,000 45,900 46,669 20.82 23.04 19-Sep-19 5 258,400 - 237,000 21,400 21,728 9.69 10.73

104,669 46.69 51.67

106,299 4.3 Term deposit receipt

This is maintained with Mobilink Microfinance Bank Limited and carries profit at the rate of 15.6% per annum (Septemeber 30, 2019: Nil), with maturity on October 21, 2020.

5. PROVISION FOR SINDH WORKERS' WELFARE FUND

The legal status of applicability of Worker's Welfare Fund and Sindh Workers' Welfare Fund is same as that disclosed in note 11.1 to the annual audited financial statements of the Fund for the year ended June 30, 2020.

The Fund, being prudent, recognised provision for SWWF amounting to Rs. 4.444 million as at September 30, 2020 in this condensed interim financial information, Had the provision not been made, net assets value per unit at September 30, 2020 would have been higher by Rs. 0.2054 per unit (June 30, 2020: Rs. 0.0664 per unit).

6. CONTINGENCIES AND COMMITMENTS

There were no contingencies outstanding as at September 30, 2020 and June 30, 2020.

7. SELLING AND MARKETING EXPENSES

8. TAXATION

Furthermore, as per regulation 63 of the NBFC Regulations, the Fund is required to distribute 90 percent of the net accounting income other than capital gains to the unit holders. Since the management intends to distribute the required minimum percentage of income earned by the Fund for the year ending June 30, 2020 to the unit holders in the manner as explained above, no provision for taxation has been made in these consdensed interim financial statements.

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

16 NBP Government Securities Savings Fund

9. TOTAL EXPENSE RATIO

The Total Expense Ratio (TER) of the Fund as at September 30, 2020 is 1.50% (2019: 1.48%) which includes 0.06% (2019: 0.34%) representing government levies on the Fund such as sales taxes, federal excise duties, annual fee to the SECP, etc. This ratio is within the maximum limit of 2.5% (as amended by S.R.O 639 dated June 20, 2019) prescribed under the NBFC Regulations for a collective investment scheme categorised as 'Income scheme'.

10. TRANSACTIONS WITH CONNECTED PERSONS

10.2 The transactions with connected persons are in the normal course of business, at contracted rates and terms determined in accordance with market rates.

10.3 Remuneration and front-end load payable to the Management Company is determined in accordance with the provisions of the NBFC Regulations and the Trust Deed respectively.

10.4 Remuneration payable to the Trustee is determined in accordance with the provisions of the NBFC regulation and the Trust Deed. Quarter ended Quarter ended September 30, September 30, 2020 2019 (Rupees in '000) 10.5 Details of the transactions with connected persons are as follows:

NBP Fund Management Limited - Management Company Remuneration of the Management Company 259 526 Sindh sales tax on remuneration of the Management Company 34 68 Accounting and operational expenses 103 190 Selling and Marketing Expense 720 1,100 Sales load and transfer generated 322 39 Sales tax on sale load 42 5 Units Redeemed / Transferred Out Nil (2019 : 4,810,930) - 50,000

Portfolios Managed by Management Company Units Redeemed / Transferred Out : Nil (2019 : 3,952,715) - 41,401 Purchase of PIB 24,759 Sale of PIB 8,271

Ms Franey N. Irani* - Holding more than 10% Units Redeemed / Transferred Out : 470,331 (2018 : Nil) - 5,000

J.K Spinning Mills Ltd Employees Provident Fund Trust* - Holding more than 10% Units Issued / transferred in: nil (2019: 2,342,096 units) - 25,000

Employees of the Management Company Units redeemed / transferred out: 141,333 (2019: Nil units) 1,468 - Units Issued / transferred in: 257,332 (2019: nil units) 2,650 -

Central Depository Company of Pakistan Limited - Trustee Remuneration 67 124 Sindh sales tax on remuneration of Trustee 916

17 NBP Government Securities Savings Fund

Un-audited Audited As at As at September 30, June 30, 2020 2020 (Rupees in '000) 10.6 Amounts outstanding as at period end NBP Fund Management Limited - Management Company Management remuneration payable 42 175 Sindh Sales Tax payable 623 Federal Excise Duty on remuneration of the Management Company 1,864 1,864 Federal Excise Duty on sales load 371 371 Accounting and operational expenses 358 255 Sales load and transfer load payable 2,629 2,307 Sales tax on sale load 362 320 Other payable 45 45 Selling and Marketing expense 720 1,786

Employees of the Management Company Units held: 38,961 (2020: 154,960 units) 404 1,604

Central Depository Company of Pakistan Limited - Trustee Trustee fee payable 57 84 Security deposit 102 102 Sindh Sales Tax payable 711

Khalid Mehmood - Chief Financial Officer Units held: Nil units (2020: 47,774 units) - 494

National Bank of Pakistan - Parent Company Bank balance in savings account 406 393 Profit receivable 65

Century Insurance Company Limited - unit holder with 10% or more holding* - 83,142 Units held: Nil units (2020: 8,033,785 units)

Bank Islami Pakistan Limited - Common Directorship Bank balance in savings account 123 1,093 Profit receivable 27 29

Portfolios Managed by Management Company Units held: Nil (June 30, 2020: 3,952,715 units) -2

Ms Franey N. Irani* - Holding more than 10% Units held: 2,207,646 (June 30, 2020: Nil units) 22,879 -

18 NBP Government Securities Savings Fund

11. DATE OF AUTHORISATION FOR ISSUE

These financial statements were authorised for issue by the Board of Directors of the Management Company on October 27, 2020.

12 GENERAL

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

12.2 Corresponding figures have been rearranged or reclassified, where necessary, for the purposes of better presentation.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

19 Head Office 7th Floor, Clifton Diamond Building, Block No.4, Scheme No.5, Clifton, Karachi. UAN: 021-111-111-632 Toll Free: 0800-20002 Sms: INVEST to 9995 Fax: 021-35825335 Email: [email protected] Website: www.nbpfunds.com /nbpfunds NBP ISLAMIC MONEY MARKET FUND NBP ISLAMIC MONEY MARKET FUND

MISSION STATEMENT

To rank in the top quartile in performance of NBP FUNDS relative to the competition, and to consistently offer Superior risk-adjusted returns to investors.

01 NBP ISLAMIC MONEY MARKET FUND

FUND'S INFORMATION 03

DIRECTORS' REPORT 05

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES 09

CONDENSED INTERIM INCOME STATEMENT 10 Contents

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME 11

CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND 12

CONDENSED INTERIM CASH FLOW STATEMENT 13

NOTES TO AND FORMING PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS 14

02 NBP ISLAMIC MONEY MARKET FUND

FUNDS INFORMATION

Management Company

NBP Fund Management Limited - Management Company

Board of Directors of Management Company

Shaikh Muhammad Abdul Wahid Sethi Chairman Dr. Amjad Waheed Chief Executive Officer Mr. Saad ur Rahman Khan Director Syed Hasan Irtiza Kazmi Director Mr. Ali Saigol Director Mr. Imran Zaffar Director Mr. Khalid Mansoor Director Mr. Saad Amanullah Khan Director Mr. Humayun Bashir Director

Company Secretary & COO

Mr. Muhammad Murtaza Ali

Chief Financial Officer

Mr. Khalid Mehmood

Audit & Risk Committee

Mr. Saad Amanullah Khan Chairman Syed Hasan Irtiza Kazmi Member Mr. Imran Zaffar Member Mr. Humayun Bashir Member

Human Resource Committee

Mr. Khalid Mansoor Chairman Shaikh Muhammad Abdul Wahid Sethi Member Mr. Ali Saigol Member Mr. Humayun Bashir Member

Strategy & Business Planning Committee

Mr. Humayun Bashir Chairman Mr. Saad ur Rahman Khan Member Mr. Ali Saigol Member Mr. Imran Zaffar Member Mr. Saad Amanullah Khan Member

Trustee

Central Depository Company of Pakistan Limited CDC House, 99-B, Block "B" S.M.C.H.S., Main Shahra-e-Faisal, Karachi.

Bankers to the Fund

Allied Bank Limited Askari Bank Limited Bank Al Habib Limited Faysal Bank Limited Habib Bank Limited Habib Metropolitan Bank Limited JS Bank Limited MCB Bank Limited Meezan Bank Limited Summit Bank Limited United Bank Limited

03 NBP ISLAMIC MONEY MARKET FUND

Auditors

Deloitte Yousuf Adil Chartered Accountants Cavish Court, A-35, Block 7 & 8, KCHSU, Sharae Faisal Karachi-75350 Pakistan.

Legal Advisor

Akhund Forbes D-21, Block 4, Scheme 5, Clifton, Karachi 75600, Pakistan.

Head Office:

7th Floor Clifton Diamond Building, Block No. 4, Scheme No. 5, Clifton Karachi. UAN: 021 (111-111-632), (Toll Free): 0800-20002, Fax: (021) 35825329 Website: www.nbpfunds.com

Lahore Office:

7-Noon Avenue, Canal Bank, Muslim Town, Lahore. UAN: 042-111-111-632 Fax: 92-42-35861095

Islamabad Office:

1st Floor, Ranjha Arcade Main Double Road, Gulberg Greens, Islamabad. UAN: 051-111-111-632 Fax: 051-4859031

Peshawar Office:

Opposite Gul Haji Plaza, 2nd Floor National Bank Building University Road Peshawar, UAN: 091-111 111 632 Fax: 091-5703202

Multan Office:

Khan Center, 1st Floor, Abdali Road, Multan. Phone No. : 061-4540301-6, 061-4588661-2 & 4

04 NBP ISLAMIC MONEY MARKET FUND

DIRECTORS REPORT

The Board of Directors of NBP Fund Management Limited is pleased to present the unaudited Condensed Interim financial statements of NBP Islamic Money Market Fund (NIMMF) for the quarter ended September 30, 2020.

Fund's Performance

The size of NBP Islamic Money Market Fund has decreased from Rs. 5,886 million to Rs. 4,941 million during the period (i.e. a decline of 16%). During the period, the unit price of the Fund has increased from Rs. 10.0355 on June 30, 2020 to Rs. 10.1898 on September 30, 2020, thus showing return of 6.1% p.a. as compared to the benchmark return of 3.9% p.a. for the same period. The performance of the Fund is net of management fee and all other expenses.

NIMMF is categorized as a Shariah Compliant Money Market Fund. The Fund aims to consistently provide better return than the profit rates offered by Islamic Banks/Islamic windows of commercial banks. Minimum eligible rating is AA, while the Fund is not allowed to invest in any security exceeding six months maturity. The weighted average time to maturity of the Fund cannot exceed 90 days while also providing easy liquidity along with a high-quality credit profile.

During the period under review, the market witnessed issuance of a decent size of Shariah Compliant commercial papers to meet the increasing funding need for working capital/bridge financing for fixed capital investments. During 1QFY21, the State Bank of Pakistan (SBP) held Monetary Policy Committee (MPC) meeting in September 2020 and, in line with the market expectation, left the Policy Rate unchanged at 7%. The SBP cited that the outlook for growth and business confidence has improved since the last review. The CPI inflation clocked in at 9% for September 2020, above the market consensus due to spike in prices of perishable food items.

The Fund has earned a total income of Rs. 87.66 million during the period. After deducting total expenses of Rs. 14.42 million, the net income is Rs. 73.24 million.

The below chart presents the asset allocation and the weighted average credit rating of each of the sub-asset classes of NIMMF.

05 NBP ISLAMIC MONEY MARKET FUND

Acknowledgement

The Board also wishes to place on record its appreciation for the hard work, dedication and commitment shown by the staff and the Trustee.

On behalf of the Board of NBP Fund Management Limited

Chief Executive Director

Date: October 27, 2020 Place: Karachi.

06 NBP ISLAMIC MONEY MARKET FUND

07 NBP ISLAMIC MONEY MARKET FUND

08 NBP ISLAMIC MONEY MARKET FUND

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES AS AT SEPTEMBER 30, 2020

Un-Audited Audited September 30, June 30, Note 2020 2020 (Rupees in '000)

ASSETS

Bank balances 4 3,060,004 3,742,608 Investment 5 1,805,158 2,202,102 Preliminary and floatation costs 526 581 Mark-up accrued 34,181 27,032 Receivable against transfer of units 77,010 63,982 Deposits and prepayments 186 263 Total assets 4,977,065 6,036,568

LIABILITIES

Payable to NBP Fund Management Limited - Management Company 12,252 10,709 Payable to Central Depository Company of Pakistan Limited - Trustee 293 298 Payable to the Securities and Exchange Commission of Pakistan 242 693 Payable against redemption of units 10,675 109,581 Accrued expenses and other liabilities 12,901 28,891 Total liabilities 36,363 150,172 NET ASSETS 4,940,702 5,886,396

UNIT HOLDERS FUND (AS PER STATEMENT ATTACHED) 4,940,702 5,886,396

Contingencies and commitments 6

Number of units Number of units

Number of units in issue 484,868,085 586,559,970

-----Rupees------Rupees-----

Net asset value per unit 10.1898 10.0355

The annexed notes from 1 to 13 form an integral part of these financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

09 NBP ISLAMIC MONEY MARKET FUND

CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter Ended Quarter Ended Note September 30, September 30, 2020 2019 INCOME (Rupees in '000) (Rupees in '000)

Return / profit on: - bank balances 48,775 78,469 - term deposit receipts 12,924 12,056 - commercial paper 16,097 - - bai maujjal 9,860 - Total income 87,656 90,525

EXPENSES

Remuneration of NBP Fund Management Limited - Management Company 1,209 926 Sindh Sales Tax on remuneration of the Management Company 157 120 Reimbursement of operational expenses to the Management Company 1,209 652 Remuneration of the Central Depository Company of Pakistan Limited - Trustee 786 444 Sindh Sales Tax on remuneration of the Trustee 102 58 Annual fee to the Securities and Exchange Commission of Pakistan 242 136 Settlement and bank charges 92 32 Auditors' remuneration 167 169 Preliminary and floatation cost 56 55 Fund rating fee 233 47 Legal and professional charges 23 10 Annual listing fee 12 7 Printing charges 46 2 Selling & Marketing Expense 7 8,463 4,580 Shariah advisor fee 126 56 Total expenses 12,923 7,294 Net income from operating activities 74,733 83,231 Provision for Sindh Workers' Welfare Fund 9 (1,495) (1,665)

Net income for the period before taxation 73,238 81,566

Taxation 8 - -

Net income for the period after taxation 73,238 81,566

Allocation of net income for the period: Net income for the period after taxation 73,238 81,566 Income already paid on units redeemed (12,680) (17,856)

60,558 63,710 Accounting income available for distribution: - Relating to capital gain - - - Excluding capital gain 60,558 63,710 60,558 63,710

The annexed notes from 1 to 13 form an integral part of these financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

10 NBP ISLAMIC MONEY MARKET FUND

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter Ended Quarter Ended September 30, September 30, 2020 2019 (Rupees in '000) (Rupees in '000)

Net income for the period after taxation 73,238 81,566

Other comprehensive income --

Total comprehensive income for the period 73,238 81,566

The annexed notes from 1 to 13 form an integral part of these financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

11 NBP ISLAMIC MONEY MARKET FUND

CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNITHOLDERS FUND (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter Ended Quarter Ended ------September 30, 2020 ------September 30, 2019 ------(Rupees in '000) ------(Rupees in '000) ------Capital Undistributed Capital Undistributed Total Total Value Income Value Income

Net assets at beginning of the period 5,877,657 8,739 5,886,396 748,808 1,685 750,493

Issuance of units 316,071,399 units (2019: 7,512,539 units) - Capital value 3,171,935 - 3,171,935 4,758,297 - 4,758,297 - Element of loss 22,074 - 22,074 62,162 - 62,162 Total proceeds on issuance of units 3,194,009 - 3,194,009 4,820,459 - 4,820,459

Redemption of 417,763,284 units (2019: 12,153,599 units) - Capital value (4,192,463) (4,192,463) (1,856,221) (1,856,221) - Element of loss (7,798) (12,680) (20,478) (13,465) (17,856) (31,321) Total payments on redemption of units (4,200,261) (12,680) (4,212,941) (1,869,686) (17,856) (1,887,542)

Total comprehensive income for the period - 73,238 73,238 - 81,566 81,566

Net assets at end of the period 4,871,405 69,297 4,940,702 3,699,581 65,395 3,764,976

Undistributed income carried forward - Realised 8,739 1,685 - Unrealised - -

8,739 1,685

Accounting income available for distribution - Relating to capital gain - - - Excluding capital gain 60,558 63,710 60,558 63,710

Distribution for the period - -

Undistributed income carried forward 69,297 65,395

Undistributed income carried forward - Realised 69,297 65,395 - Unrealised - - 69,297 65,395

- (Rupees) - - (Rupees) -

Net assets value per unit at beginning of the period 10.0355 10.0226 Net assets value per unit at end of the period 10.1898 10.3310

The annexed notes from 1 to 13 form an integral part of these financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

12 NBP ISLAMIC MONEY MARKET FUND

CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter Ended Quarter Ended September 30, September 30, 2020 2019 (Rupees in '000) (Rupees in '000)

CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the period before taxation 73,238 81,566

Adjustments:

Return on - bank balances (48,775) (78,469) Return on - term deposit receipts (12,924) (12,056) Return on - commercial paper (16,097) - Return on - bai maujjal (9,860) - Amortization of preliminary and floatation cost 56 55 Provision for Sindh Workers' Welfare Fund 1,495 1,665 (86,105) (88,805) (12,867) (7,239) Decrease in assets Investments 396,944 (535,000) Deposits and prepayments 77 27 397,021 (534,973) (Decrease) / increase in liabilities Payable to the Management Company 1,543 5,095 Payable to the Trustee (5) 93 Payable to the Securities and Exchange Commission of Pakistan (451) (792) Accrued expenses and other liabilities (17,485) 1,774 (16,398) 6,170 Return on bank balances received 80,507 62,182

Net cash generated from / (used in) operating activities 448,263 (473,860)

CASH FLOWS FROM INVESTING ACTIVITIES

Net cash generated from investing activities - -

CASH FLOWS FROM FINANCING ACTIVITIES

Amounts received on issuance of units 3,180,981 4,755,913 Amounts paid on redemption of units (4,311,847) (1,887,017) Net cash used in financing activities (1,130,867) 2,868,896 Net decrease in cash and cash equivalents during the year (682,604) 2,395,036 Cash and cash equivalents at the beginning of the year 3,742,608 747,089 Cash and cash equivalents at the end of the year 4 3,060,004 3,142,125

The annexed notes from 1 to 13 form an integral part of these financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

13 NBP ISLAMIC MONEY MARKET FUND

NOTES TO AND FORMING PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

1. LEGAL STATUS AND NATURE OF BUSINESS

"NBP Islamic Money Market Fund (the Fund) was established under a Trust Deed executed between NBP Fund Management Limited as the Management Company and Central Depository Company of Pakistan Limited (CDC) as the Trustee. The Trust Deed was executed on January 09, 2018 and was approved by the Securities and Exchange Commission of Pakistan (SECP) on February 07, 2018 in accordance with the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules).

The Management Company of the Fund has been licensed to act as an Asset Management Company under the NBFC Rules through a certificate of registration issued by SECP. The registered office of the Management Company is situated at 7th floor, Clifton Diamond Building, Block No. 4, Scheme No. 5, Clifton, Karachi. The Management Company is also the member of Mutual Fund Association of Pakistan (MUFAP).

The Fund is an open-ended mutual fund and classified as sharia compliant "shariah compliant money market scheme" by the Management Company and is listed on the Pakistan Stock Exchange Limited. Units are offered for public subscription on a continuous basis. The units of the Fund are transferable and can be redeemed by surrendering them to the Fund.

The objective of the Fund is to provide competitive return with maximum possible capital preservation by investing in low risk and liquid Shariah Compliant authorized instruments.

The Pakistan Credit Rating Agency (PACRA) has assigned an asset manager rating of 'AM1' to the Management Company and has assigned stability rating AA(f) to the fund.

Title of the assets of the Fund is held in the name of Central Depository Company of Pakistan limited (CDC) as trustee of the Fund.

2. BASIS OF PREPARATION

2.1 Statement of compliance

- International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;

- Provisions of and directives issued under the Companies Act, 2017 along with part VIIIA of the repealed Companies Ordinance, 1984; and

2.2 Where provisions of and directives issued under the Companies Act, 2017, part VIIIA of the repealed Companies Ordinance, 1984, the NBFC Rules, the NBFC Regulations and requirements of the Trust Deed differ from the IFRS, the provisions of and directives issued under the Companies Act, 2017, part VIIIA of the repealed Companies Ordinance, 1984, the NBFC Rules, the NBFC Regulations and requirements of the Trust Deed have been followed. The disclosures made in these condensed interim financial statements have, however, been limited based on the requirements of the International Accounting Standard 34, Interim Financial Reporting.

14 NBP ISLAMIC MONEY MARKET FUND

3. SUMMARY OF ACCOUNTING POLICIES

Un-audited Audited September 30, June 30, 4 BANK BALANCES 2020 2020 Note ------Rupees in '000 ------

Current accounts 4.1 11,536 11,329 Savings accounts 4.2 3,048,468 3,731,279 3,060,004 3,742,608

4.1 These include bank balances of Rs. 0.198 million (2019: Rs. 0.198 million) maintained with Bank Islami Pakistan (related party).

4.2 These savings accounts carry profit at rates ranging from 2.50% to 7.50% per annum (June 30, 2020: 2.50% to 14.50% per annum).

Un-audited Audited September 30, June 30, 5 INVESTMENTS 2020 2020 ------Rupees in '000 ------At fair value through profit or loss

Commercial papers 575,826 570,770 Term deposit receipts 731,000 1,133,000 Bai muajjal 498,332 498,332 1,805,158 2,202,102

6 CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments as at September 30, 2020 and June 30 ,2020.

7 SELLING AND MARKETING EXPENSES

8 TAXATION

The Fund's income is exempt from income tax as per Clause 99 of Part I of the Second Schedule of the Income Tax Ordinance, 2001 subject to the condition that not less than 90% of its accounting income for the year, as reduced by capital gains whether realised or unrealised is distributed amongst the unit holders (excluding distribution made by issuance of bonus units). The Fund intends to distribute such accounting income for the year ended June 30, 2021 to its unit holders. Accordingly, no provision in respect of taxation has been made in these financial statements.

15 NBP ISLAMIC MONEY MARKET FUND

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

9 PROVISION FOR SINDH WORKERS' WELFARE FUND

The Fund, being prudent, recognised provision for SWWF amounting to Rs. 0.948 million for the period ended September 30, 2020 in this condensed interim financial information, Had the provision not been made, net assets value per unit at September 30, 2020 would have been higher by Rs. 0.0241 per unit (June 30, 2020: Rs. 0.0174 per unit).

10 TOTAL EXPENSE RATIO

The Total Expense Ratio (TER) of the Fund as at September 30, 2020 is 1.20% (2019: 1.7%) which includes 0.17% (2019: 0.34%) representing government levies on the Fund such as sales taxes, federal excise duties, annual fee to the SECP, etc. This ratio is within the maximum limit of 2% (as amended by S.R.O 639 dated June 20, 2019) prescribed under the NBFC Regulations for a collective investment scheme categorised as 'Shari'ah compliant Money Market scheme'.

11 TRANSACTIONS WITH CONNECTED PERSONS AND RELATED PARTIES

11.1 Connected persons include NBP Fund Management Limited being the Management Company, Central Depository Company of Pakistan Limited being the Trustee, National Bank of Pakistan (NBP), Baltoro Growth Fund being the sponsors, NAFA Pension Fund and NAFA Provident Fund Trust being the associates of the Management Company, other collective investment schemes managed by the Management Company, any entity in which the Management Company, its CISs or their connected persons have material interest, any person or company beneficially owning directly or indirectly ten percent or more of the capital of the Management Company or the net assets of the Fund, directors and their close family members and key management personnel of the Management Company.

11.2 The transactions with connected persons and related parties are carried out in the normal course of business, at contracted rates and terms determined in accordance with the market norms.

11.3 Remuneration of the Management Company is determined in accordance with the provisions of the NBFC Regulations.

11.4 Remuneration of the Trustee is determined in accordance with the provisions of the Trust Deed.

11.5 Details of transactions with connected persons are as follows: Un-audited Un-audited Quarter Ended Quarter Ended September 30, September 30, 2020 2019 (Rupees in '000) (Rupees in '000) NBP Fund Management Limited - Management Company Remuneration of the Management Company 1,209 926 Sindh Sales Tax on Management Company's remuneration 157 120 Operational expenses 1,209 652 Selling and marketing expenses 8,463 4,580 Sales load inclusive of Sindh Sales Tax 234 377 Central Depository Company of Pakistan Limited (Trustee) Remuneration of the Trustee 786 444 Sindh Sales Tax on Remuneration of the Trustee 102 58 CDS charges 2 -

16 NBP ISLAMIC MONEY MARKET FUND

Un-audited Un-audited Quarter Ended Quarter Ended September 30, September 30, 2020 2019 (Rupees in '000) (Rupees in '000)

Pakistan Stock Exchange Limited - Common Directorship

Listing Fee paid 25 25

Employees of the Management Company

Units issued / transferred in 14,865,446 units (2019: 2,024,153) 150,506 20,660 Unit redeemed / transferred out 14,104,988 units (2019: 1,179,701) 142,641 12,002

CDC Trustee NAFA Islamic Capital Preservation Plan-I

Units issued / transferred in 356,044 units (2019: Nil units) 3,600 - Unit redeemed / transferred out 5,457,219 units (2019: 25,839,226) 55,090 262,780

Portfolios managed by the Management Company

Units issued / transferred in 17,828,539 units (2019: 1,477,032 units) 179,458 15,000 Unit redeemed / transferred out 13,364,272 units (2019: 1,477,032) 135,200 15,052

Shaikh Muhammad Pervez - Holding more than 10% * Units issued / transferred in Nil units (2019: 39,762,139 units) - 406,071

Ghazala Pervez - Holding more than 10% * Units issued / transferred in Nil units (2019: 39,762,139 units) - 406,071

Sadia Rashid - Holding more than 10% * Units issued / transferred in Nil units (2019: 39,970,392 units) - 405,000

Un-audited Audited September 30, June 30, 2020 2020 (Rupees in '000) 11.6 Balances outstanding as at the period / year end NBP Fund Management Limited - Management Company Remuneration of the Management Company 378 406 Sindh Sales Tax payable on remuneration of the Management Company 49 53 Operational expenses 1,209 981 Selling & marketing expenses 8,463 6,883 Sales load 1,772 1,978 Sindh Sales Tax on sales load 230 257 Other Payable 151 151 Central Depository Company of Pakistan Limited - Trustee Remuneration payable 246 264 Sindh Sales tax Remuneration payable 32 34 CDC Charges 15 1 Security deposit 100 100

17 NBP ISLAMIC MONEY MARKET FUND

Un-audited Audited September 30, June 30, 2020 2020 (Rupees in '000)

Employees of the Management Company Investment held in the Fund: 7,965,301 units (June 30, 2020: 718,454 units) 81,165 7,210

CDC Trustee NAFA Islamic Capital Preservation Plan-I Investment held in the Fund: 8,085,222 units (June 30, 2020: 13,186,397 units) 82,387 132,332

Soorty Enterprises (Pvt) Limited - Holding more than 10% ** Investment held in the Fund: 50,251,242 units (June 2020: 50,251,242 units) 512,050 -

Portfolios managed by the Management Company Investment held in the Fund: 21,079,294 units (June 30, 2020: 16,615,027 units) 214,793 166,740

* Current Year transactions with these parties are not disclosed as they did not remain connected persons and related parties during the period.

** Balances with these parties are not disclosed as they were not connected persons and related parties during the period.

12 DATE OF AUTHORISATION FOR ISSUE

These financial statements were authorised for issue by the Board of Directors of the Management Company on October 27, 2020.

13 GENERAL

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

13.2 Corresponding figures have been rearranged or reclassified, where necessary, for the purposes of better presentation. No significant rearrangement or reclassification was made in these condensend interim financial statements during the current period.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

18 Head Office 7th Floor, Clifton Diamond Building, Block No.4, Scheme No.5, Clifton, Karachi. UAN: 021-111-111-632 Toll Free: 0800-20002 Sms: INVEST to 9995 Fax: 021-35825335 Email: [email protected] Website: www.nbpfunds.com /nbpfunds NBP ISLAMIC DAILY DIVIDEND FUND NBP ISLAMIC DAILY DIVIDEND FUND

MISSION STATEMENT

To rank in the top quartile in performance of NBP FUNDS relative to the competition, and to consistently offer Superior risk-adjusted returns to investors.

01 NBP ISLAMIC DAILY DIVIDEND FUND

FUND'S INFORMATION 03

DIRECTORS' REPORT 05

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES 09

CONDENSED INTERIM INCOME STATEMENT 10 Contents

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME 11

CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND 12

CONDENSED INTERIM CASH FLOW STATEMENT 13

NOTES TO AND FORMING PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS 14

02 NBP ISLAMIC DAILY DIVIDEND FUND

FUNDS INFORMATION

Management Company

NBP Fund Management Limited - Management Company

Board of Directors of Management Company

Company Secretary & COO

Mr. Muhammad Murtaza Ali

Chief Financial Officer

Mr. Khalid Mehmood

Audit & Risk Committee

Mr. Saad Amanullah Khan Chairman Syed Hasan Irtiza Kazmi Member Mr. Imran Zaffar Member Mr. Humayun Bashir Member

Human Resource Committee

Mr. Khalid Mansoor Chairman Shaikh Muhammad Abdul Wahid Sethi Member Mr. Ali Saigol Member Mr. Humayun Bashir Member

Strategy & Business Planning Committee

Mr. Humayun Bashir Chairman Mr. Saad ur Rahman Khan Member Mr. Ali Saigol Member Mr. Imran Zaffar Member Mr. Saad Amanullah Khan Member

Trustee

Central Depository Company of Pakistan Limited CDC House, 99-B, Block "B" S.M.C.H.S., Main Shahra-e-Faisal, Karachi.

Bankers to the Fund

Askari Bank Limited Bank Alhabib Limited United Bank Limited Meezan Bank Limited Habib Bank Limited Dubai Islamic Bank Limited Allied Bank Limted National Bank Of Pakistan JS Bank Limited

03 NBP ISLAMIC DAILY DIVIDEND FUND

Auditors

A.F. Ferguson & Co. Chartered Accountants State Life Building No. 1-C I.I. Chundrigar Road, P.O.Box 4716 Karachi.

Legal Advisor

Akhund Forbes D-21, Block 4, Scheme 5, Clifton, Karachi 75600, Pakistan.

Head Office:

7th Floor Clifton Diamond Building, Block No. 4, Scheme No. 5, Clifton Karachi. UAN: 021 (111-111-632), (Toll Free): 0800-20002, Fax: (021) 35825329 Website: www.nbpfunds.com

Lahore Office:

7-Noon Avenue, Canal Bank, Muslim Town, Lahore. UAN: 042-111-111-632 Fax: 92-42-35861095

Islamabad Office:

1st Floor, Ranjha Arcade Main Double Road, Gulberg Greens, Islamabad. UAN: 051-111-111-632 Fax: 051-4859031

Peshawar Office:

Opposite Gul Haji Plaza, 2nd Floor National Bank Building University Road Peshawar, UAN: 091-111 111 632 Fax: 091-5703202

Multan Office:

Khan Center, 1st Floor, Abdali Road, Multan. Phone No. : 061-4540301-6, 061-4588661-2 & 4

04 NBP ISLAMIC DAILY DIVIDEND FUND

DIRECTORS REPORT

The Board of Directors of NBP Fund Management Limited is pleased to present the unaudited Condensed Interim financial statements of NBP Islamic Daily Dividend Fund (NIDDF) for the quarter ended September 30, 2020.

Fund's Performance

The size of NBP Islamic Daily Dividend Fund has increased from Rs. 8,243 million to Rs. 12,638 million during the period (i.e. a growth of 53%). During the period, the unit price of the Fund has increased from Rs. 9.8392 (Ex-Div) on June 30, 2020 to Rs. 10.0000 on September 30, 2020, thus showing return of 6.5% p.a. as compared to the benchmark return of 3.9% p.a. for the same period. The performance of the Fund is net of management fee and all other expenses.

NIDDF is categorized as a Shariah Compliant Money Market Fund. The fund aims to consistently provide better return than the profit rates offered by Islamic Banks / Islamic windows of commercial banks. Minimum eligible rating is AA, while the Fund is not allowed to invest in any security exceeding six months maturity. The weighted average time to maturity of the Fund cannot exceed 90 days, thereby providing easy liquidity along with a high-quality credit profile.

The Fund has earned a total income of Rs. 183.940 million during the period. After accounting for total expenses of Rs. 16.945 million, the net income is Rs. 166.995 million. The below chart presents the asset allocation and the weighted average credit rating of each of the sub-asset classes of NIDDF.

05 NBP ISLAMIC DAILY DIVIDEND FUND

Acknowledgement

The Board also wishes to place on record its appreciation for the hard work, dedication and commitment shown by the staff and the Trustee.

On behalf of the Board of NBP Fund Management Limited

Chief Executive Director

Date: October 27, 2020 Place: Karachi.

06 NBP ISLAMIC DAILY DIVIDEND FUND

07 NBP ISLAMIC DAILY DIVIDEND FUND

08 NBP ISLAMIC DAILY DIVIDEND FUND

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES AS AT SEPTEMBER 30, 2020

(Un-audited) Audited September 30, June 30, 2020 2020 Note Rupees in '000 ASSETS Bank balances 4 7,542,075 5,063,693 Investments 5 5,030,008 3,154,524 Profit receivable 90,847 53,477 Prepayments, deposits and other receivables 691 826 Preliminary expenses and floatation costs 964 1,024 Total assets 12,664,585 8,273,544

LIABILITIES Payable to NBP Fund Management Limited - Management Company 11,853 11,127 Payable to Central Depository Company of Pakistan Limited - Trustee 759 514 Payable to the Securities and Exchange Commission of Pakistan 521 491 Payable against redemption of units - 10,164 Accrued expenses and other liabilities 13,183 8,101 Total liabilities 26,316 30,397

NET ASSETS 12,638,269 8,243,147

UNIT HOLDERS' FUND (AS PER STATEMENT ATTACHED) 12,638,269 8,243,147

CONTINGENCIES AND COMMITMENTS 7

Number of Number of units units

NUMBER OF UNITS IN ISSUE 1,263,826,810 824,318,625

Rupees

NET ASSET VALUE PER UNIT 10.0000 10.0000

The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

09 NBP ISLAMIC DAILY DIVIDEND FUND

CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter Ended September 30 2020

Note --Rupees in '000-- INCOME Income on sukuk certificates 3,940 Income on term deposit receipts 26,150 Income on commercial papers 24,653 Income on letter of placements 23,323 Profit on bank deposits 105,874 Total income 183,940

EXPENSES Remuneration of NBP Fund Management Limited - Management Company 2,608 Sindh sales tax on remuneration of the Management Company 339 Allocated expenses 2,608 Selling and marketing expense 5,215 Remuneration of Central Depository Company of Pakistan Limited - Trustee 1,695 Sindh sales tax on remuneration of the Trustee 220 Annual fee of the Securities and Exchange Commission of Pakistan 522 Amortisation of preliminary expenses and floatation costs 60 Auditors' remuneration 105 Legal and professional charges 18 Listing fee 11 Shariah advisor fee 46 Settlement and bank charges 46 Printing expenses 6 Rating fee 38 Total operating expenses 13,537 Net income from operating activities 170,403 Provision against Sindh Workers' Welfare Fund 6 (3,408) Net income for the period before taxation 166,995 Taxation 9 - Net income for the period after taxation 166,995

Allocation of net income for the period - Net income for the period after taxation 166,995 - Income already paid on units redeemed - 166,995 Accounting income available for distribution: - Relating to capital gains - - Excluding capital gains 166,995 166,995

The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

10 NBP ISLAMIC DAILY DIVIDEND FUND

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter Ended September 30 2020

---Rupees in '000----

Net income for the period after taxation 166,995

Other comprehensive income for the period -

Total comprehensive income for the period 166,995

The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

11 NBP ISLAMIC DAILY DIVIDEND FUND

CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNITHOLDERS FUND (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

FOR THE QUARTER ENDED SEPTEMBER 30, 2020 (UN-AUDITED) Undistributed Capital value Total income ------Rupees in '000 ------

Net assets at beginning of the period 8,243,147 - 8,243,147 Issuance of 652,445,057 units - Capital value 6,524,491 - 6,524,491 - Element of income --- Total proceeds on issuance of units 6,524,491 - 6,524,491

Redemption of 212,936,872 units - Capital value (2,129,369) - (2,129,369) - Element of loss --- Total payments on redemption of units (2,129,369) - (2,129,369)

Total comprehensive income for the period - 166,995 - Distribution paid 11 - (166,995) - Net income for the period less distribution ---

Net assets at end of the period (un-audited) 12,638,269 - 12,638,269

Accounting income available for distribution: - Relating to capital gains - - Excluding capital gains 166,995 166,995 Cash distribution (166,995)

Undistributed income carried forward -

Undistributed income carried forward: - Realised income - - Unrealised income - -

(Rupees)

Net assets value per unit at beginning of the period 10.0000 Net assets value per unit at end of the period 10.0000

The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

12 NBP ISLAMIC DAILY DIVIDEND FUND

CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

QUARTER ENDED SEPTEMBER 30, 2020

Rupees in '000 CASH FLOWS FROM OPERATING ACTIVITIES Net income for the period before taxation 166,995

Adjustments Income on sukuk certificates (3,940) Income on term deposit receipts (26,150) Income on commercial papers (24,653) Income on letter of placements (23,323) Profit on bank deposits (105,874) Provision against Sindh Workers' Welfare Fund 3,408 Amortisation of preliminary expenses and floatation costs 60 (180,472) (Increase) in assets Prepayments, deposits and other receivables 135 Investments - net (1,797,418) (1,797,283) Increase in liabilities Payable to NBP Fund Management Limited - Management company 726 Payable to Central Depository Company of Pakistan Limited - Trustee 245 Payable to the Securities and Exchange Commission of Pakistan 30 Accrued expenses and other liabilities 1,674 2,675

Profit received on bank balances 68,504

Net cash flows (used in) operating activities (1,739,581)

CASH FLOWS FROM FINANCING ACTIVITIES

Amount received against issuance of units 6,524,491 Amount paid against redemption of units (2,139,533) Distributions paid (166,995) Net cash flows generated from financing activities 4,217,963

Net increase in cash and cash equivalents during the period 2,478,382 Cash and cash equivalents at the beginning of the period 5,063,693

Cash and cash equivalents at the end of the period 7,542,075

The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

13 NBP ISLAMIC DAILY DIVIDEND FUND

NOTES TO AND FORMING PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

1 LEGAL STATUS AND NATURE OF BUSINESS

NBP Islamic Daily Dividend Fund (the Fund) is an open ended mutual fund constituted under a Trust Deed entered into on September 23, 2019 between NBP Fund Management Limited as the Management Company and Central Depository Company of Pakistan Limited (CDC) as the Trustee.

The Management Company of the Fund has been licensed to act as an Asset Management Company under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules) through a certificate of registration issued by the Securities and Exchange Commission of Pakistan (SECP). The registered office of the Management Company is situated at 7th Floor, Clifton Diamond Building, Block 4, Scheme No. 5, Clifton, Karachi. The Management Company is a member of the Mutual Funds Association of Pakistan (MUFAP).

The Fund has been categorised as an open ended 'Shariah compliant money market fund' by the Board of Directors of the Management Company pursuant to the provisions contained in Circular 7 of 2009 issued by Securities and Exchange Commission of Pakistan and is listed on the Pakistan Stock Exchange Limited. The units of the Fund were initially offered for public subscription at a par value of Rs. 10 per unit. Thereafter, the units were being offered for public subscription on a continuous basis from November 2, 2019 and are transferable and redeemable by surrendering them to the Fund.

The objective of the Fund is to provide competitive return along with daily dividend by investing in Shari'ah compliant money market instruments.

The Pakistan Credit Rating Agency Limited (PACRA) has assigned an asset manager rating of AM1 as at June 24, 2020 to the Management Company and rated AA(f) with stable outlook as at April 17, 2020 to the Fund.

The title to the assets of the Fund is held in the name of Central Depository Company of Pakistan as the Trustee of the Fund.

2 BASIS OF PREPARATION

2.1 Statement of compliance

International Accounting Standard (IAS) 34, 'Interim Financial Reporting', issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;

Provisions of and directives issued under the Companies Act, 2017 along with part VIIIA of the repealed Companies Ordinance, 1984; and

the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules), the Non- Banking Finance Companies and Notified Entities Regulations, 2008 (the NBFC Regulations) and the requirements of the Trust Deed.

14 NBP ISLAMIC DAILY DIVIDEND FUND

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

'There are no other standards, amendments to standards or interpretations that are effective for annual periods beginning on July 1, 2020 that have a material effect on the financial statements of the Fund.

(Un-audited) Audited September 30, June 30, 2020 2020 4 BANK BALANCES Note Rupees in '000

Savings accounts 7,534,595 5,057,324 Current accounts 7,480 6,369 7,542,075 5,063,693

5 INVESTMENTS

Commercial papers 5.1 1,763,771 532,787 Sukuk certificates 5.2 163,000 163,000 Term deposit receipts 5.3 1,924,500 1,280,000 Letters of placement 5.4 1,178,737 1,178,737 5,030,008 3,154,524

15 NBP ISLAMIC DAILY DIVIDEND FUND

5.1 Commercial paper Face value (Rupees in '000) Rupees in '000 Market value Market value Disposed of / Carrying value Market value as a Purchased As at as a Name of Investee Company As at July 1, matured as at as at percentage of during the September 30, percentage of 2020 during the September 30, Septmebr 30, total period 2020 net assets period 2020 2020 investments

------% ------K-Electric Limited 06-APR-20 06-OCT-20 25,000 - - 25,000 24,961 24,961 0.50 0.20 K-Electric Limited 12-AUG-20 12-FEB-21 - 675,000 - 675,000 655,457 655,457 13.03 5.19 K-Electric Limited 26-AUG-20 26-FEB-21 - 640,000 - 640,000 619,732 619,732 12.32 4.90 K-Electric Limited 09-SEP-20 09-MAR-21 - 480,000 - 480,000 463,621 463,621 9.22 3.67 Total as at September 30, 2020 1,763,771 1,763,771 35.07 13.96 Total as at June 30, 2020 532,787

5.2 Sukuk certificate Market value as a Number of certificates Market value percentage of Coupon as at Name of the security Issue date Purchased Matured As at Total market rate / tenor As at July Septemebr Net assets of during the during the September value of 1, 2020 30, 2020 the Fund period period 30, 2020 investments Rupees in 000------% ------Hub Power Company Limited May 19, 14.99% 2020 6 months 1,630 - - 1,630 163,000 1.29 3.24

Carrying value as at September 30, 2020 163,000 Unrealised gain on re-measurement of investments classified as financial profit or loss - as at Septemebr 30, 2020 assets at fair value through - 5.3 Term deposit receipts Market value Carrying Market value Market value Purchased Matured As at as a As at July 1, value as at as at as a Name of the security Issue date Profit rate during the during the September percentage 2020 September September percentage period period 30, 2020 of total 30, 2020 30, 2020 of net assets investments ------Rupees in '000 ------Percentage ------UBL Ameen Islamic Banking 6-Aug-20 6.65% - 500,000 - 500,000 500,000 500,000 9.94 3.96 UBL Ameen Islamic Banking 6-Aug-20 6.65% - 500,000 - 500,000 500,000 500,000 9.94 3.96 UBL Ameen Islamic Banking 6-Aug-20 6.65% - 288,000 - 288,000 288,000 288,000 5.73 2.28 UBL Ameen Islamic Banking 19-Aug-20 6.65% - 67,500 - 67,50067,500 67,500 1.34 0.53 UBL Ameen Islamic Banking 24-Aug-20 6.65% - 125,500 - 125,500 125,500 125,500 2.50 0.99 UBL Ameen Islamic Banking 27-Aug-20 6.65% - 22,000 - 22,00022,000 22,000 0.44 0.17 UBL Ameen Islamic Banking 31-Aug-20 6.65% - 74,000 - 74,00074,000 74,000 1.47 0.59 UBL Ameen Islamic Banking 2-Sep-20 6.65% - 250,500 - 250,500 250,500 250,500 4.98 1.98 UBL Ameen Islamic Banking 9-Sep-20 6.65% - 46,500 - 46,50046,500 46,500 0.92 0.37 UBL Ameen Islamic Banking 23-Sep-20 6.65% - 50,500 - 50,50050,500 50,500 1.00 0.40 Total as at September 30, 2020 1,924,500 1,924,500 38.26 15.23 Total as at June 30, 2020 1,280,000 1,280,000

16 NBP ISLAMIC DAILY DIVIDEND FUND

5.4 Letters of placement Market value as a Amount placed (Rupees in '000) As at September 30, 2020 percentage of Name of the investee companies Purchased Matured As at As at July 1, Carrying Total invest- during the during September Market value Net assets 2020 value ments period the period 30, ------(Rupees in '000) ------(%) ------Pak Brunei Investement Company Limited 228,236 - - 228,236 228,236 228,236 4.54 1.81 Pak Brunei Investement Company Limited 103,425 - - 103,425 103,425 103,425 2.06 0.82 Pak Brunei Investement Company Limited 97,570 - - 97,57097,570 97,570 1.94 0.77 Pak Brunei Investement Company Limited 370,364 - - 370,364 370,364 370,364 7.36 2.93 Pak Brunei Investement Company Limited 275,316 - - 275,316 275,316 275,316 5.47 2.18 Pak Brunei Investement Company Limited 103,826 - - 103,826 103,826 103,826 2.06 0.82 Total as at September 30, 2020 1,178,737 1,178,737 23.43 9.33 Total as at June 30, 2020 1,178,737 1,178,737

6 PROVISION FOR SINDH WORKERS' WELFARE FUND

The legal status of applicability of Worker's Welfare Fund and Sindh Workers' Welfare Fund is same as that disclosed in note 12.1 to the annual audited financial statements of the Fund for the year ended June 30, 2020.

The Fund, being prudent, recognized provision for SWWF amounting to Rs.8.0646 million as at September 30, 2020 in this condensed interim financial information, Had the provision not been made, net assets value per unit at September 30, 2020 would have been higher by Rs. 0.0064 per unit (June 30, 2020: Rs. 0.006 per unit).

7 CONTINGENCIES AND COMMITMENTS

There were no contingencies and commitments outstanding as at September 30, 2020 and June 30, 2020.

8 SELLING AND MARKETING EXPENSES

9 TAXATION

The income of the Fund is exempt from income tax under clause (99) of Part I of the Second Schedule to the Income Tax Ordinance, 2001 subject to the condition that not less than 90% of the accounting income for the year as reduced by capital gains, whether realised or unrealised, is distributed amongst the unit holders as cash dividend. Furthermore, as per Regulation 63 of the Non-Banking Finance Companies and Notified Entities Regulations, 2008, the Fund is required to distribute not less than 90% of its accounting income for the year derived from sources other than capital gains as reduced by such expenses as are chargeable thereon to the unit holders. Since the management has distributed the required minimum percentage of income earned by the Fund for the period ended June 30, 2020 to the unit holders in the manner as explained above, therefore, no provision for taxation has been made in these financial statements during the period.

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

17 NBP ISLAMIC DAILY DIVIDEND FUND

10 TOTAL EXPENSE RATIO

The Total Expense ratio (TER) of the Fund as at September 30, 2020 is 0.65% (June 30, 2020: 0.87%) which includes 0.17%(June 30, 2020: 0.23%) representing government levies on the Fund such as provision against Sindh Workers' Welfare Fund, sales taxes, annual fee to the SECP, etc. This ratio is within the maximum limit of 2.5% prescribed under the NBFC Regulations for a collective investment scheme categorised as a money market scheme..

11 INTERIM DISTRIBUTION

The Fund makes distribution on daily basis as per clause 12.1 of the Trust Deed and clause 1.4 of the Offering Document and re-invests the distributed dividend as per clause 1.4 of the Offering Document. During the period ended September 30, 2020, the Management Company on behalf of the Fund, has distributed total profit earned during the period amounting to Rs 166.995 million as dividend after deducting applicable taxes.

Payout Payout Per Unit Payout Payout Per Unit Payout Payout Per Unit Date Rupees Date Rupees Date Rupees

July 1, 2020 0.0018 August 1, 2020 0.0018 September 1, 2020 0.0017 July 2, 2020 0.0018 August 2, 2020 0.0017 September 2, 2020 0.0017 July 3, 2020 0.0019 August 3, 2020 0.0018 September 3, 2020 0.0017 July 4, 2020 0.0019 August 4, 2020 0.0017 September 4, 2020 0.0017 July 5, 2020 0.0018 August 5, 2020 0.0018 September 5, 2020 0.0017 July 6, 2020 0.0020 August 6, 2020 0.0017 September 6, 2020 0.0017 July 7, 2020 0.0018 August 7, 2020 0.0018 September 7, 2020 0.0018 July 8, 2020 0.0019 August 8, 2020 0.0018 September 8, 2020 0.0017 July 9, 2020 0.0018 August 9, 2020 0.0017 September 9, 2020 0.0017 July 10, 2020 0.0018 August 10, 2020 0.0018 September 10, 2020 0.0017 July 11, 2020 0.0019 August 11, 2020 0.0018 September 11, 2020 0.0017 July 12, 2020 0.0018 August 12, 2020 0.0018 September 12, 2020 0.0017 July 13, 2020 0.0018 August 13, 2020 0.0018 September 13, 2020 0.0017 July 14, 2020 0.0019 August 14, 2020 0.0018 September 14, 2020 0.0018 July 15, 2020 0.0018 August 15, 2020 0.0017 September 15, 2020 0.0017 July 16, 2020 0.0018 August 16, 2020 0.0017 September 16, 2020 0.0017 July 17, 2020 0.0019 August 17, 2020 0.0018 September 17, 2020 0.0017 July 18, 2020 0.0018 August 18, 2020 0.0017 September 18, 2020 0.0017 July 19, 2020 0.0018 August 19, 2020 0.0018 September 19, 2020 0.0018 July 20, 2020 0.0019 August 20, 2020 0.0017 September 20, 2020 0.0017 July 21, 2020 0.0018 August 21, 2020 0.0017 September 21, 2020 0.0017 July 22, 2020 0.0018 August 22, 2020 0.0017 September 22, 2020 0.0017 July 23, 2020 0.0018 August 23, 2020 0.0018 September 23, 2020 0.0017 July 24, 2020 0.0018 August 24, 2020 0.0017 September 24, 2020 0.0017 July 25, 2020 0.0017 August 25, 2020 0.0017 September 25, 2020 0.0017 July 26, 2020 0.0018 August 26, 2020 0.0017 September 26, 2020 0.0018 July 27, 2020 0.0018 August 27, 2020 0.0018 September 27, 2020 0.0017 July 28, 2020 0.0018 August 28, 2020 0.0017 September 28, 2020 0.0017 July 29, 2020 0.0018 August 29, 2020 0.0018 September 29, 2020 0.0017 July 30, 2020 0.0018 August 30, 2020 0.0017 September 30, 2020 0.0017 July 31, 2020 0.0017 August 31, 2020 0.0017

18 NBP ISLAMIC DAILY DIVIDEND FUND

12 TRANSACTIONS AND BALANCES WITH CONNECTED PERSONS / RELATED PARTIES

12.1 Related parties / connected persons include NBP Fund Management Limited being the Management Company, Central Depository Company of Pakistan Limited being the Trustee, National Bank of Pakistan, Baltoro Growth Fund being the sponsors, NAFA Pension Fund and NAFA Provident Fund Trust being the associates of the Management Company, Funds under management of the Management Company, directors and key management personnel of the Management Company and other associated companies. Connected persons also includes any person beneficially owing directly or indirectly 10% or more of the units in the issue / net assets of the Fund.

12.2 Transactions with related parties / connected persons essentially comprise sale and redemption of units, fee on account of managing the affairs of the Fund, sales load, other charges and distribution payments to related parties / connected persons. The transactions with related parties / connected persons are in the normal course of business, at contracted rates and at terms determined in accordance with the market rates.

12.3 Remuneration to the Management Company and the Trustee of the Fund is determined in accordance with the Trust Deed and Offering Document.

12.4 Details of transactions with related parties / connected persons during the period are as follows:

Quarter Ended September 30 2020 Rupees in '000 NBP Fund Management Limited - Management Company Remuneration of NBP Fund Management Limited - Management Company 2,608 Sindh sales tax on remuneration of the Management Company 339 Allocated expenses 2,608 Selling and marketing expense 5,215 Sales load payable to Management Company 129 Sindh sales tax payable on sales load 17 Preliminary expenses and floatation costs borne by the Management Company 60 Other expenses borne by the Management Company 1,341

Central Depository Company of Pakistan Limited - Trustee Remuneration of Central Depository Company of Pakistan Limited - Trustee 1,695 Sindh sales tax on remuneration of the Trustee 220

Employees of NBP Fund Management Limited Dividend re-invest units issued - 979 10 Units issued - 8,413 84 Units redeemed - 69,630 696

National Bank of Pakistan Limited - parent company Profit on bank balances 14

Baltoro Partners (Private) Limited - sponsor Dividend re-invest units issued - 1,071 11

Portfolio managed by the Management Company Dividend re-invest units issued - 78,274 783 Units issued - 12,000,000 120,000 Units Redemption- 10,623,495 106,235

19 NBP ISLAMIC DAILY DIVIDEND FUND

Quarter Ended September 30 2020 Rupees in '000 CDC Trustee NAFA Islamic Capital Preservation Plan-IV Dividend re-invest units issued - 160,429 1,604 Units issued - 13,250,000 132,500 Units Redemption- 5,800,000 58,000

CDC Trustee NAFA Islamic Capital Preservation Plan-V Dividend re-invest units issued - 91,467 915 Units issued - 7,950,000 79,500 Units Redemption- 1,000,000 10,000

Pakistan Stock Exchange Limited Listing fee paid 25

As at September As at June 30, 2020 30, 2020 12.5 Amounts / balances outstanding as at period end are as follows Rupees in '000

NBP Fund Management Limited - Management Company Remuneration of the Management Company 1,033 701 Sindh sales tax on remuneration of the Management Company 134 91 Allocated expenses payable 2,608 1,644 Selling and marketing expenses payable 5,215 5,973 Sales load payable to Management Company 1,347 1,218 Sindh sales tax payable on sales load 175 159 Other payable to Management Company 1,341 1,341

Central Depository Company of Pakistan Limited - Trustee Remuneration payable to the Trustee 672 455 Sindh sales tax payable on Trustee remuneration 87 59

Key management personnel of the Management Company Units outstanding - Units 24,214 (June 30, 2020: 84,451) 242 845

CDC Trustee NAFA Islamic Capital Preservation Plan-IV Investment held in the Fund: 7,610,429 units (June 30, 2020: Nil units) 76,104 -

CDC Trustee NAFA Islamic Capital Preservation Plan-V Investment held in the Fund: 7,041,467 units (June 30, 2020: Nil units) 70,415 -

Baltoro Partners (Private) Limited - sponsor Units outstanding - Units 77,927 (June 30, 2020: 76,856) 779 769

Portfolio managed by the Management Company Units outstanding - Units12,074,833 (June 30, 2020: Units 10,620,054) 120,748 106,201

Yunus Textile Mills Limited - unit holders with more than 10% holding Units outstanding - Units 304,990,907 (June 30, 2020: Units 201,379,926) 3,049,909 2,013,799

20 NBP ISLAMIC DAILY DIVIDEND FUND

As at September As at June 30, 2020 30, 2020 Rupees in '000

Pakistan Defence Officers Housing Authority - unit holders with more than 10% holding Units outstanding - Units 316,739,176 (June 30, 2020: Units163,799,290) 3,167,392 1,637,993

Artistic Milliners Private Limited - unit holders with more than 10% holding Units outstanding - Nil (June 30, 2020: Units 100,034,083) - 1,000,341

National Bank of Pakistan Limited - parent company Bank balance 119 118 Profit receivable on bank balances 13 -

Hub Power Company Limited - common directorship Sukuk certificates 163,000 163,000 Profit receivable on sukuk certificates 5,782 1,842

13 GENERAL

Figures in these condensed interim financial statements have been rounded off to the nearest thousand of rupees.

14 DATE OF AUTHORISATION FOR ISSUE

These condensed interim financial statements were authorised for issue by the Board of Directors of the Management Company on October 27, 2020.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

QUARTERLY REPORT SEPTEMBER 2020 NBP FINANCIAL SECTOR FUND

MISSION STATEMENT

To rank in the top quartile in performance of NBP FUNDS relative to the competition, and to consistently offer Superior risk-adjusted returns to investors.

01 NBP FINANCIAL SECTOR FUND

FUND'S INFORMATION 03

DIRECTORS' REPORT 05

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES 09

CONDENSED INTERIM INCOME STATEMENT 10 Contents

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME 11

CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND 12

CONDENSED INTERIM CASH FLOW STATEMENT 13

NOTES TO AND FORMING PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS 14

02 NBP FINANCIAL SECTOR FUND

FUNDS INFORMATION

Management Company

NBP Fund Management Limited - Management Company

Board of Directors of Management Company

Company Secretary & COO

Mr. Muhammad Murtaza Ali

Chief Financial Officer

Mr. Khalid Mehmood

Audit & Risk Committee

Mr. Saad Amanullah Khan Chairman Syed Hasan Irtiza Kazmi Member Mr. Imran Zaffar Member Mr. Humayun Bashir Member

Human Resource Committee

Mr. Khalid Mansoor Chairman Shaikh Muhammad Abdul Wahid Sethi Member Mr. Ali Saigol Member Mr. Humayun Bashir Member

Strategy & Business Planning Committee

Mr. Humayun Bashir Chairman Mr. Saad ur Rahman Khan Member Mr. Ali Saigol Member Mr. Imran Zaffar Member Mr. Saad Amanullah Khan Member

Trustee

Central Depository Company of Pakistan Limited CDC House, 99-B, Block "B" S.M.C.H.S., Main Shahra-e-Faisal, Karachi.

Bankers to the Fund

MCB Bank Limited Summit Bank Limited JS Bank Limited Meezan Bank Limited Habib Bank Limited United Bank Limited Bank Al Habib Limited Allied Bank Limited Bankislami Pakistan Limited

03 NBP FINANCIAL SECTOR FUND

Auditors

A.F. Ferguson & Co. Chartered Accountants State Life Building No. 1-C I.I. Chundrigar Road, P.O.Box 4716 Karachi.

Legal Advisor

Akhund Forbes D-21, Block 4, Scheme 5, Clifton, Karachi 75600, Pakistan.

Head Office:

7th Floor Clifton Diamond Building, Block No. 4, Scheme No. 5, Clifton Karachi. UAN: 021 (111-111-632), (Toll Free): 0800-20002, Fax: (021) 35825329 Website: www.nbpfunds.com

Lahore Office:

7-Noon Avenue, Canal Bank, Muslim Town, Lahore. UAN: 042-111-111-632 Fax: 92-42-35861095

Islamabad Office:

1st Floor, Ranjha Arcade Main Double Road, Gulberg Greens, Islamabad. UAN: 051-111-111-632 Fax: 051-4859031

Peshawar Office:

Opposite Gul Haji Plaza, 2nd Floor National Bank Building University Road Peshawar, UAN: 091-111 111 632 Fax: 091-5703202

Multan Office:

Khan Center, 1st Floor, Abdali Road, Multan. Phone No. : 061-4540301-6, 061-4588661-2&4

04 NBP FINANCIAL SECTOR FUND

DIRECTORS REPORT

The Board of Directors of NBP Fund Management Limited is pleased to present the condensed unaudited financial statements of NBP Financial Sector Fund (NFSF) for the quarter ended September 30, 2020.

Fund's Performance

The size of NBP Financial Sector Fund has increased from Rs. 578 million to Rs. 634 million during the period, i.e. a increase of 10%. During the period, the unit price of NAFA Financial Sector Fund (NFSF) has increased from Rs. 7.6489 on June 30, 2020 to Rs. 8.8736 on September 30, 2020, thus showing an increase of 16.0%. The Benchmark for the same period was increased by 16.5%. Thus, the Fund has underperformed its Benchmark by 0.5% during the period under review. Since inception, the unit price of NBP Financial Sector Fund has decreased from Rs. 10.0000 on February 14, 2018 to Rs. 8.8736 on September 30, 2020, thus showing a decrease of 11.3%. The Benchmark for the same period was decreased by 7.7%. Thus, the Fund has underperformed its Benchmark by 3.6% during the period under review. This performance is net of management fee and all other expenses.

The Fund has earned a total income of Rs. 104.16 million during the period. After deducting total expenses of Rs. 8.52 million, the net income is Rs. 95.64 million.

The asset allocation of the Fund as on September 30, 2020 is as follows:

05 NBP FINANCIAL SECTOR FUND

NFSF Performance versus Benchmark (Since Inception)

NFSF KSE-30 25%

20%

16.5% 15% 16.0%

10%

-5%

Acknowledgement

The Board also wishes to place on record its appreciation for the hard work, dedication and commitment shown by the staff and the Trustee.

On behalf of the Board of NBP Fund Management Limited

Chief Executive Director

Date: October 27, 2020 Place: Karachi.

06 NBP FINANCIAL SECTOR FUND

07 NBP FINANCIAL SECTOR FUND

NFSF KSE-30 25%

20%

16.5% 15% 16.0%

10%

-5%

08 NBP FINANCIAL SECTOR FUND

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES AS AT SEPTEMBER 30, 2020 (Un-Audited) (Audited) September June 30,2020 Note 30,2020 Assets Rupees in '000

Bank balances 18,660 22,750 Investments 4 617,523 552,118 Profit receivable 87 98 Deposits and other receivable 2,971 2,948 Receivable against sale of investments - 4,078 Premilinary expenses and floatation costs 1,586 1,755 Total assets 640,827 583,747

Liabilities

Payable to NBP Fund Management Limited - Management Company 3,754 4,442 Payable to the Central Depository Company of Pakistan Limited - Trustee 125 107 Payable to the Securities and Exchange Commission of Pakistan 34 152 Accrued expenses and other liabilities 2,937 649 Total liabilities 6,850 5,350

NET ASSETS 633,977 578,397

UNIT HOLDERS' FUND (AS PER STATEMENT ATTACHED) 633,977 578,397

CONTINGENCIES AND COMMITMENTS 5

Number of units NUMBER OF UNITS IN ISSUE 71,445,024 75,618,518

------Rupees ------NET ASSET VALUE PER UNIT 8.8736 7.6489

The annexed notes from 1 to 12 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

09 NBP FINANCIAL SECTOR FUND

CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020 Quarter ended Quarter ended September 30, September 30, 2020 2019 Note Rupees in '000 Income Profit on bank deposits 457 1,423 Dividend income - 11,343 Gain / (Loss) on sale of investments - net 10,009 (27,096) Net unrealised appreciation / (diminution) on re-measurement of investments classified as 'financial assets at fair value through profit or loss' 93,692 (73,574) Total Income / (Loss) 104,158 (87,904)

Expenses Remuneration of NBP Fund Management Limited - Management Company 2,521 3,530 Sindh Sales Tax on remuneration of the Management Company 328 459 Accounting and operational expenses 168 224 Selling and marketing expenses 6 2,521 2,322 Remuneration of the Central Depository Company of Pakistan Limited - Trustee 336 441 Sindh Sales Tax on remuneration of the Trustee 44 57 Annual fees to the Securities and Exchange Commission of Pakistan 34 45 Securities transaction cost 194 365 Auditors' remuneration 146 110 Amortization of preliminary expenses and floatation costs 169 169 Annual listing fee 5 7 Printing charges 1 1 Legal and professional charges 20 9 Settlement and bank charges 80 40 Total operating expenses 6,567 7,779

Net Income / (loss) from operating activities 97,591 (95,683)

Provision for Sindh Workers' Welfare Fund 5 (1,952) -

Net Income / (loss) for the period before taxation 95,639 (95,683) Taxation 7 - - Net Income / (loss) for the period after taxation 95,639 (95,683)

Allocation of net income for the period Net income for the period after taxation 95,639 - Income already paid on units redeemed (9,512) - 86,127 - Accounting income available for distribution - Relating to capital gains 86,127 - - Excluding capital gains - - 86,127 -

The annexed notes from 1 to 12 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

10 NBP FINANCIAL SECTOR FUND

CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020 Quarter ended Quarter ended September 30, September 30, 2020 2019 Rupees in '000

Net Income / (loss) for the period after taxation 95,639 (95,683)

Other comprehensive income / (loss) for the period - -

Total comprehensive Income / (loss) for the period 95,639 (95,683)

The annexed notes from 1 to 12 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

11 NBP FINANCIAL SECTOR FUND

CONDENSED STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter ended September 30, Quarter ended September 30, 2020 2019 ------Rupees in '000 ------

Undistributed Undistributed Capital Capital income / Total income / Total Value Value (loss) (loss)

Net assets at beginning of the period 851,377 (272,980) 578,397 1,283,122 (162,494) 1,120,628

Issue of 12,337,214 units (2019: 2,814,531 units) - Capital value 94,366 - 94,366 25,502 - 25,502 - Element of income 8,086 - 8,086 (1,338) - (1,338) Total proceeds on issuance of units 102,452 - 102,452 24,164 - 24,164

Redemption of 16,510,708 units (2019: 37,245,025 units) - Capital value (126,289) - (126,289) (337,473) - (337,473) - Element of loss (6,710) (9,512) (16,222) 31,189 - 31,189 Total payments on redemption of units (132,999) (9,512) (142,511) (306,284) - (306,284)

Total comprehensive income / (loss) for the period - 95,639 95,639 - (95,683) (95,683) Net income / (loss) for the period after distribution - 95,639 95,639 - (95,683) (95,683)

Net assets at end of the period 820,830 (186,853) 633,977 1,001,002 (258,177) 742,825

Undistributed income brought forward Realised (loss) (124,931) (33,288) Unrealised (loss) (148,049) (129,206) (272,980) (162,494)

Accounting income available for distribution - Relating to capital gains 86,127 - - Excluding capital gains - - 86,127 -

Net Income / (loss) for the period after taxation - (95,683)

Distribution for the period - -

Undistributed loss carried forward (186,853) (258,177)

Undistributed loss carried forward - Realised loss (280,545) (184,603) - Unrealised income / (loss) 93,692 (73,574) (186,853) (258,177)

(Rupees) (Rupees)

Net assets value per unit at beginning of the period 7.6489 9.0609

Net assets value per unit at end of the period 8.8736 8.3233

The annexed notes from 1 to 12 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

12 NBP FINANCIAL SECTOR FUND

CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

Quarter ended Quarter ended September 30, September 30, 2020 2019

Rupees in '000 CASH FLOWS FROM OPERATING ACTIVITIES

Net Income / (loss) for the period before taxation 95,639 (95,683)

Adjustments for: Amortization of preliminary expenses and floatation costs 169 169 Net unrealised (appreciation) / diminution on re-measurement of investments classified as 'financial assets at fair value through profit or loss' (93,692) 73,574 (93,523) 73,743 Decrease in assets Investments 28,287 275,473 Profit receivable 11 531 Receivable against sale of investments 4,078 - Deposits and other receivable (23) (20) 32,353 275,984 Increase / (Decrease) in liabilities Payable to NBP Fund Management Limited - Management Company (688) (1,565) Payable to the Central Depository Company of Pakistan Limited - Trustee 18 (62) Payable to the Securities and Exchange Commission of Pakistan (118) (1,058) Accrued expenses and other liabilities 2,288 (3,399) 1,500 (6,084)

Net cash generated from operating activities 35,969 247,960

CASH FLOWS FROM FINANCING ACTIVITIES

Net receipts from issuance of units 102,452 24,164 Net payments against redemption of units (142,511) (306,272) Net cash (used in) from financing activities (40,059) (282,108)

Net increase / (decrease) in cash and cash equivalents (4,090) (34,148) Cash and cash equivalents at the beginning of the period 22,750 63,745

Cash and cash equivalents at the end of the period 18,660 29,597

The annexed notes from 1 to 12 form an integral part of these condensed interim financial statements.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director

13 NBP FINANCIAL SECTOR FUND

NOTES TO AND FORMING PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2020

1 LEGAL STATUS AND NATURE OF BUSINESS

NBP Financial Sector Fund (the Fund) is an open ended mutual fund constituted under a Trust Deed entered into on January 10, 2018 between NBP Fund Management Limited as the Management Company and the Central Depository Company of Pakistan Limited (CDC) as the Trustee.

The Management Company of the Fund has been licensed to act as an Asset Management Company under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules) through a certificate of registration issued by the SECP. The registered office of the Management Company is situated at 7th floor, Clifton Diamond Building, Block 4, Scheme No. 5, Clifton, Karachi. The Management Company is a member of the Mutual Funds Association of Pakistan (MUFAP).

The Fund has been categorised as an open ended equity scheme by the Board of Directors of the Management Company pursuant to the provisions contained in Circular 7 of 2009 and is listed on the Pakistan Stock Exchange Limited. The units of the Fund were initially offered for public subscription under pre - IPO at a par value of Rs 10 per unit. Thereafter, the units are being offered for public subscription on a continuous basis from February 7, 2018 and are transferable and redeemable by surrendering them to the Fund.

The objective of NBP Financial Sector Fund is to provide investors with long term capital growth from an actively managed portfolio of listed equities belonging to the Financial Sector. The investment objectives and policies are explained in the Fund's offering document.

The Pakistan Credit Rating Agency (PACRA) has assigned an Asset Manager Rating of AM1 to the Management Company. The Fund has not yet been rated.

The title to the assets of the Fund is held in the name of the CDC as the trustee of the Fund.

The duration of the fund is perpetual. However, the SECP or the Management Company may wind it up on the occurance of certain events as specified in offering document of the Fund.

2 BASIS OF PREPARATION

2.1 Statement of compliance

- International Financial Reporting Standards (IFRS Standards) issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;

- Provisions of and directives issued under the Companies Act, 2017 along with part VIIIA of the repealed Companies Ordinance, 1984; and

14 NBP FINANCIAL SECTOR FUND

These financial statements are presented in Pakistan Rupee, which is the Fund's functional and presentation currency.

3 SUMMARY OF ACCOUNTING POLICIES

There are no other standards, amendments to standards or interpretations that are effective for annual periods beginning on July 1, 2020 that have a material effect on the financial statements of the Fund. (Un-Audited) (Audited) September June 30, 2020 30, 2020 4 INVESTMENTS Note Rupees in '000 At fair value through profit or loss Quoted equity securities 4.1 617,523 552,118

4.1 Investments in equity securities - listed

Shares of listed companies - fully paid up ordinary shares with a face value of Rs. 10 each unless stated other wise.

Investment as a percentage of Market Market Market Sales As at Paid up As at Purchases Bonus / Value as at value as a value as a during September capital of Name of the investee company July 1, during the right September percentage percentage the 30, investee 2020 period shares 30, of net of total period 2020 company held 2020 assets investment ------Number of shares ------(Rupees in ------%------'000) COMMERCIAL BANKS Allied Bank Limited 432,500 26,000 - 20,500 438,000 36,910 5.825.98 0.04 Bank Al-Falah Limited 2,394,350 - - 190,500 2,203,850 76,650 12.0912.41 0.12 Bank Al-Habib Limited 1,351,000 - - 104,000 1,247,000 80,519 12.7013.04 0.11 Bank Of Punjab Limited 3,020,000 - - 882,500 2,137,500 21,119 3.333.42 0.08 Faysal Bank Limited 996,875 133,500 - - 1,130,375 19,363 3.053.14 0.07 Habib Bank Limited 849,000 70,581 - 79,500 840,081 109,832 17.3217.79 0.06 MCB Bank Limited 327,200 - - 67,500 259,700 45,141 7.127.31 0.02 National Bank Of Pakistan 640,000 - - 205,000 435,000 17,348 2.742.81 0.02 United Bank Limited 656,300 108,000 - 132,000 632,300 72,784 11.4811.79 0.05 Meezan Bank Limited 259,050 - 20,755 51,500 228,305 18,769 2.963.04 0.02

INSURANCE Adamjee Insurance Company Limited 2,053,500 - - 83,000 1,970,500 79,017 12.4612.80 0.56 IGI Holdings Limited 122,000 61,000 - - 183,000 40,072 6.326.49 0.13

Total as at September 30, 2020 11,705,611 617,523 97 100

Carrying value as at September 30, 2020 523,831

15 NBP FINANCIAL SECTOR FUND

4.1.2 Investments include shares with market value of Rs 118.742 (June 30, 2020: 102.055) million which have been pledged with National Clearing Company of Pakistan Limited for guaranteeing settlement of the Fund's trades in accordance with Circular No. 11 dated October 23, 2007 issued by the SECP.

5 PROVISION FOR SINDH WORKERS' WELFARE FUND

The Fund, being prudent, recognised provision for SWWF amounting to Rs.1.95 million as at September 30, 2020 in this condensed interim financial information, Had the provision not been made, net assets value per unit at September 30, 2020 would have been higher by Rs. 0.0273 per unit

6 CONTINGENCIES AND COMMITMENTS

There were no contingencies outstanding as at September 30, 2020 and June 30, 2020.

7 SELLING AND MARKETING EXPENSES

8 TAXATION

The Fund's income is exempt from income tax as per clause 99 of part I of the Second Schedule to the Income Tax Ordinance, 2001 subject to the condition that not less than 90 percent of the accounting income for the year as reduced by capital gains, whether realised or unrealised, is distributed amongst the unitholders. Furthermore, as per regulation 63 of the NBFC Regulations, the Fund is required to distribute 90 percent of the net accounting income other than capital gains to the unit holders. Since the management intends to distribute the required minimum percentage of income earned by the Fund for the year ending June 30, 2021 to the unit holders in the manner as explained above, no provision for taxation has been made in these consdensed interim financial statements.

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

9 TOTAL EXPENSE RATIO

The Total Expense Ratio (TER) of the Fund as at September 30, 2020 is 5.07% (2019: 3.48%) which includes 1.40% (2019: 0.25%) representing government levies on the Fund such as sales taxes, federal excise duties, annual fee to the SECP, etc. This ratio is within the maximum limit of 4.5% (as amended by S.R.O 639 dated June 20, 2019) prescribed under the NBFC Regulations for a collective investment scheme categorised as 'Shari'ah compliant equity scheme'.

10 TRANSACTIONS WITH RELATED PARTIES / CONNECTED PERSONS

10.1 Connected persons include NBP Fund Management Limited being the Management Company, the Central Depository Company of Pakistan Limited being the Trustee, National Bank of Pakistan (NBP) and its connected persons and Baltoro Growth Fund being the sponsors, NAFA Pension Fund and NAFA Provident Fund Trust being the associates of the Management Company, other collective investment schemes managed by the Management Company, any entity in which the Management Company, its CISs or their connected persons have material interest, any person or company beneficially owning directly or indirectly ten percent or more of the capital of the Management Company or the net assets of the Fund, directors and their close family members and key management personnel of the Management Company.

10.2 Transactions with connected persons are executed on an arm's length basis and essentially comprise sale and redemption of units, fee on account of managing the affairs of the Fund, sales load, other charges and distribution payments to connected persons. The transactions with connected persons are in the normal course of business, at contracted rates and at terms determined in accordance with market rates.

16 NBP FINANCIAL SECTOR FUND

10.3 Remuneration to the Management Company of the Fund is determined in accordance with the provisions of the NBFC Regulations, 2008 and the Trust Deed.

10.4 Remuneration to the Trustee of the Fund is determined in accordance with the provisions of NBFC Regulations, 2008 and the Trust Deed.

10.5 Details of the transactions with related parties / connected persons during the period are as follows:

(Un-Audited)

Quarter ended Quarter ended September 30, September 30, 2020 2019

(Rupees in '000) NBP Fund Management Limited - Management Company Remuneration for the period 2,521 3,530 Sindh Sales Tax on remuneration of Management Company 328 459 Selling and marketing expense 2,521 2,322 Accounting and operational charges 168 224 Sale and transfer load 110 45 Central Depository Company of Pakistan Limited - Trustee Remuneration for the period 336 441 Sindh Sales Tax on remuneration 44 57 Key management personnel of the Management Company Units issued during the period - 522,934 (2019: 1,233) 4,554 10 Units redeemed during the period - 523,133 (2019:7,365) 4,696 61 National Bank of Pakistan - (Parent of the Management Company) Shares purchased - Nil (2019: 370,000) - 11,717 Shares sold - 205,000 (2019: 234,500) 6,966 6,746 Portfolio Managed by the Management Company Units redeemed during the period: 3,195,483 (2019: 1,329,651) 29,398 11,780 Taurus Securities Limited - (Subsidiary of Parent Company) Brokerage expense 6 49 BankIslami Pakistan Limited - (Common Directorship) Profit income 149 842 Pakistan Stock Exchange Limited - (Common Directorship) Listing fee paid 25 25 National Clearing Company of Pakistan Limited - common directorship Settlement charges 81 20 United Bank Limited - unit holder with more than 10% holding Shares purchased - 108,000 (2019: 87,000) 11,495 11,696 Shares sold - 132,000 (2019: 260,400) 14,841 35,907 Dividend Income - 2,086 * Askari Bank Limited Shares sold - Nil (2019: 732,500) - 12,435

17 NBP FINANCIAL SECTOR FUND

10.6 Amounts / balances outstanding as at period end (Un-Audited) (Audited) As at As at September 30, June 30, 2020 2020 (Rupees in '000)

NBP Fund Management Limited - Management Company Remuneration payable to the Management Company 832 714 Sindh Sales Tax on remuneration of Management Company 108 93 Sales load and transfer load payable 110 1,237 Sindh Sales Tax payable on sales load and transfer load 15 161 Selling and marketing expenses payable 2,521 2,091 Accounting and operational charges payable 168 146

Central Depository Company of Pakistan Limited - Trustee Trustee fee payable 111 95 Sindh Sales Tax payable on trustee fee 14 12 Security deposit 100 100

Key management personnel of the Management Company Units held: 161,898 (2020: 162,097) 1,437 1,240

National Bank of Pakistan - (Parent of the Management Company) Shares held: 435,000 shares (2020: 640,000 shares) 17,348 17,696

BankIslami Pakistan Limited - (Common Directorship) Bank balances 7,153 7,636 Profit receivable 59 41

Portfolio Managed by the Management Company Units held 2,577,805 (2020: 5,773,289) 22,874 44,159

United Bank Limited - unit holder with more than 10% holding Units held 24,926,964 (2019: 24,926,964) 221,192 190,664 Shares held: 632,300 (2020: 656,300) 72,784 67,835

National Clearing Company of Pakistan Limited - (Common Directorship) Settlement charges payable 28 25 Security Deposit 2,500 2,500

Pak Brunei Investment Company Limited - unit holder with more than 10% holding Units held 22,502,305 (2020: 22,502,305) 199,676 172,118

* Current year figure has not been shown as the company ceased to be a related party / connected person as at September 30, 2020.

18 NBP FINANCIAL SECTOR FUND

11 DATE OF AUTHORISATION FOR ISSUE

These financial statements were authorised for issue by the Board of Directors of the Management Company on October 27, 2020.

12 GENERAL

Figures have been rounded off to the nearest thousand Rupee unless otherwise stated.

12.1 Corresponding figures have been rearranged or reclassified, where necessary, for the purposes of better presentation.

For NBP Fund Management Limited (Management Company)

______Chief Financial Officer Chief Executive Officer Director