-200.00%

0.00%200.00%

ONDJFMAMJJAS

-200.00%

0.00%200.00%

ONDJFMAMJJAS

-200.00%

0.00%200.00%

ONDJFMAMJJAS

0.00

4.00

8.00

12.00

16.00

20.00

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep-

12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

YoY Consumer Price Index

General % Food % Non Food %

During the month of March, government borrowed PKR277billion against the target of PKR 250 billion through two t-billsauctions. The cut-off yields for 3-month and 6-month t-bills stoodat 9.41% and 9.42% witnessing a modest increase of 4bps and2bps respectively. Furthermore, no bids for 12-month treasurybills were received in second auction as investors were reluctantto take long-term position in the instruments due to impendingmonetary policy announcement by the central bank.CPI figures for the month of March were lowest for 68 months asit fell from 7.4% in Feb. to 6.57%. However, softer CPI numbersfailed to wave concerns on current account front which has beenin deficit for the period July to February 2013 . The currentaccount deficit of US$700 million could have been far worse, hadit not found support in falling international oil prices and foreignremittances from Pakistanis abroad which have clocked in atUS$9.235 billion for the first eight months (July-Feb) for FY13, anincrease of 7.47% from the same period of FY12. Forex reservesalso slipped by US$566.4 million (4.38%) MoM on account of 10thand 11th SBA IMF re-payments worth US$535.55 million. SofterCPI numbers do not warrant a cut in discount rates on the backof worsening current account situation and we expect the centralbank to maintain status quo in the upcoming monetary policystatement.

(400)(200)-2004006008001,0001,200

1,5002,2503,0003,7504,5005,250

Inflow Outflow Net flow

Current AccountUS $million

US $million

-200.00%

0.00%200.00%

ONDJFMAMJJAS

With the conclusion of quarterly results period, marketperformance was largely dictated by macroeconomic indicatorsas well as political climate of the country. Investors werepredominantly cautious as they awaited clarity on key issues ofcaretaker government setup and future economic outlook of thecountry. This was evidenced by a fall in average daily tradedvolumes by `21% MoM to 135 million shares. The rumors ofimposition of UN sanctions due to Iran-Pakistan gas pipelineaccord allayed fears amongst investors and KSE-100 indexwitnessed a sharp decline of 441points on Mar. 11.

Main tipping point for the benchmark-100 index proved out to bea psychological barrier of 18000 mark which was continuouslytested throughout the month. Telecom, Financial Services andCommercial banks sectors were major losers registering a declineof 13%, 14% and 10% respectively. Growth in domestic demandand lowering coal prices supported a gain of 7.5% in cementsector while food sector also registered a hefty gain of `10% MoM.Finally, textile sector margins (up 4% MoM) were boosted byrising cotton prices as major players had already booked cotton atlower prices. KSE-100 index witnessed a fall of 0.72% from thepreceding month of February.Risk Disclosure: “This publication is for informational purposes only and nothing herein should beconstrued as a solicitation, recommendation or an offer to buy or sell any Fund. All investments in mutualfunds are subject to market risk. The NAV based prices of units and any dividends/ returns thereon aredependant on forces and factors affecting the capital market. These may go up and down based on marketconditions. Past performance is not necessarily indicative of future results”.

Habib Asset Management Limited1st Floor, Imperial Court Building, Dr. Ziauddin Ahmed Road,Karachi, Pakistan.U.A.N. 111-342-242, Fax 021-35223710E-mail: info@habibfunds.com , http://www.habibfunds.com

0

50

100

150

200

17,000

17,200

17,400

17,600

17,800

18,000

18,200

18,400

1-M

ar-1

3

3-M

ar-1

3

5-M

ar-1

3

7-M

ar-1

3

9-M

ar-1

3

11-M

ar-1

3

13-M

ar-1

3

15-M

ar-1

3

17-M

ar-1

3

19-M

ar-1

3

21-M

ar-1

3

23-M

ar-1

3

25-M

ar-1

3

27-M

ar-1

3

29-M

ar-1

3

KSE-100Index Vol. (Mn)Vol. Mn KSE-100 Index

During the month of March, government borrowed PKR277billion against the target of PKR 250 billion through two t-billsauctions. The cut-off yields for 3-month and 6-month t-bills stoodat 9.41% and 9.42% witnessing a modest increase of 4bps and2bps respectively. Furthermore, no bids for 12-month treasurybills were received in second auction as investors were reluctantto take long-term position in the instruments due to impendingmonetary policy announcement by the central bank.CPI figures for the month of March were lowest for 68 months asit fell from 7.4% in Feb. to 6.57%. However, softer CPI numbersfailed to wave concerns on current account front which has beenin deficit for the period July to February 2013 . The currentaccount deficit of US$700 million could have been far worse, hadit not found support in falling international oil prices and foreignremittances from Pakistanis abroad which have clocked in atUS$9.235 billion for the first eight months (July-Feb) for FY13, anincrease of 7.47% from the same period of FY12. Forex reservesalso slipped by US$566.4 million (4.38%) MoM on account of 10thand 11th SBA IMF re-payments worth US$535.55 million. SofterCPI numbers do not warrant a cut in discount rates on the backof worsening current account situation and we expect the centralbank to maintain status quo in the upcoming monetary policystatement. (800)

(600)(400)

-750

1,500

Fund Type Open-ended

Fund Category Islamic Balanced Scheme

Net Assets Rs. 292.69 million (Mar. 31, 2013)

NAV per Unit Rs. 104.9202 (Mar. 31, 2013)

Trustee Central Depository Company of Pakistan Ltd.

Auditors ExternalErnst & Young Ford Rhodes Sidat Hyder,Chartered Accountants

Auditors Internal A. F. Ferguson & Co.

Management Fee 1.00% per annum

Front-end-Load Nil

Back-end-Load Nil

Launch Date November 09, 2012

Benchmark

KMI 30 Index and most recently published 3month deposit rates offered by 3 Islamic banksand these based on weighted averageallocation of equity and other instrumentduring the period.

Dealing Days Monday to Friday

Cut-off Timings 9:00 am to 4:30 pm

Pricing Mechanism Forward Pricing

Minimum Subscription Initial investment of Rs. 1,000/-Subsequently Rs. 100 per transaction.

Investment Objective To provide investors with medium to long termcapital growth and income by investing inShariah Compliant equity and debt securities. Weighted Avg. Time to Maturity of Net Assets 126 Days

TOP TEN HOLDINGS (% of Total Assets)

Holdings Asset Class % of Total Assets

(GOP) IJARA - SUKUK 9 Sukuk 15.32%

(GOP) IJARA - SUKUK 6 Sukuk 8.50%

Attock Petroleum Ltd. Equity 3.97%

Aisha Steel Mills Ltd.-PPTFC Sukuk 3.39%

Pakistan Oil Field Ltd. Equity 3.21%

Lucky Cement Ltd. Equity 3.02%

D.G Khan Cement Ltd. Equity 2.98%

Fauji Fertilizer Co. Ltd. Sukuk 2.98%

Nishat Mills Ltd. Equity 2.86%

Hub Power Co. Ltd. Equity 2.56%

SECTOR ALLOCATION (% of Total Assets)

Chemicals5.72%

Electricity2.56%

Oil & Gas16.16%

Construction &Material

7.16%

Telecommunication0.69%

Bank2.21%

Food Producers2.12%

Gas & Water0.65%

General Industrials0.29%

Personel Goods2.86% Automobile & Parts

0.33%

FUND MANAGER’S REVIEW

Risk Disclosure: “This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell anyFund. All investments in mutual funds are subject to market risk. The NAV based prices of units and any dividends/ returns thereon are dependant on forces and factorsaffecting the capital market. These may go up and down based on market conditions. Past performance is not necessarily indicative of future results”.

Mar’13 Feb’13

Cash 25.68% 29.48%

Ijara Sukuk 23.83% 24.49%

Equities 40.75% 37.04%

Placement withModaraba(COM)

3.39% 3.48%

Sukuk 3.39% 3.48%

Others including receivables 2.96% 2.03%

FUND’S PERFORMANCE

Return FHIBF Benchmark

Year to date (Absolute) 5.70% 6.70%

Month to date (Absolute) 0.91% 0.73%

To provide investors with medium to long termcapital growth and income by investing inShariah Compliant equity and debt securities.

AMC Rating “AM3” by PACRA

Fund Performance Ranking N/A

Risk Profile Moderate/ High

Fund Manager Mr. Junaid Kasbati

Investment Committee

Mr. Imran AzimMr. M Amir (Acting CFO)Mr. Junaid Kasbati

Leverage Nil

The FMR is as per MUFAP’s Recommended Format.

The scheme has maintained provisions against Worker’s Welfare Fund’s liability to the tune of Rs. 0.33mn If the same were not made the NAV per unit/returnof the Scheme would be higher by Rs. 0.1187/0.12%p.a. For details investors are advised to read the Note 08 of the latest Financial Statement of the Scheme.

WWF DISCLOSURE

Weighted Avg. Time to Maturity of Net Assets 126 Days

ASSET QUALITY

The fund outperformed the benchmark by 18 bps where it gave a return of 0.91%for the month of March. The funds rate of return stood at 5.70% for the periodNovember 2012 to March 2013. The fund witnessed a growth of 3.35% MoM innet assets as they stood at PKR292.69 million as of March 31, 2013.Equity portionof the portfolio was increased to 40.75% for March, witnessing a MoM increase of3.71%. As of March 31, 2013, the Fund was invested up to 40.75% in equities,23.83% in Ijara Sukuk and 3.39% each in Certificate of Musharaka and corporatesukuk. The fund maintained 25.68% as cash in banks. The weighted average timeto maturity of net assets remained at 126 days.

ASSET ALLOCATION

IjaraSukuk

23.83%

AA+25.68%

AA-3.39%

A3.39%

Others43.71%