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Key to Success
Index Tracker Fund
AKDI n c o m e F u n d
AKDOpportunity Fund
AKDManaged by: AKD Investment Management Ltd.
1st Quarter ReportSeptember 30, 2008 (Un-audited)
AKD INCOME FUND
First Quarter Report I September 30, 2008
CONTENTSCorporate Information
Mission & Vision Statement
Report of The Directors of the Management Company
Fund Manager's Report
Condensed Interim Statement of Assets and Liabilities
Condensed Interim Income Statement
Condensed Interim Distribution Statement
Condensed Interim Cash Flow Statement
Condensed Interim Statement of Movement in Unit Holders' Fund
Notes to and Forming Part of the Condensed Interim Financial Statements
First Quarter Report I September 30, 2008
AKD INCOME FUND
CORPORATE INFORMATIONBOARD OF DIRECTORS OF THE
MANAGEMENT COMPANY
Chairman
Mr. Farrukh Shaukat Ansari
Chief Executive Officer
Mr. Faisal Bengali
Directors
Mr. Ashraf Adamjee
Mr. Asif Ikram
Mr. Farooq Ahmed Awan
Mr. Imran Motiwala
Mr. Zahoor Motiwala
COMPANY SECRETARY & CFO OF THE
MANAGEMENT COMPANYMr. Muhammad Amin Hussain
AUDIT COMMITTEE
Chairman
Mr. Ashraf Adamjee
Members
Mr. Imran Motiwala
Mr. Zahoor Motiwala
INTERNAL AUDITORS
Ford Rhodes Sidat Hyder & Co.
Chartered Accountants
Progressive Plaza, Beaumont Road,
P.O. Box 15541, Karachi 75530.
TRUSTEECentral Depository Company
of Pakistan Limited
Suite # M-13-16, Mezzanine Floor,
Progressive Plaza, Beaumont Road,
Near PIDC House, Karachi.
BANKERSAllied Bank Limited
Arif Habib Bank Limited
Bank Alfalah Limited
Bank Al-Habib Limited
Citibank N.A. Pakistan
Habib Bank Limited
Habib Metropolitan Bank LimitedKASB Bank LimitedMCB Bank LimitedMybank LimitedSoneri Bank LimitedStandard Chartered Bank (Pakistan) LimitedThe Bank of KhyberThe Bank of PunjabUnited Bank Limited
AUDITORSA.F. Ferguson & Co.Chartered AccountantsState Life Building No. 1-C,I.I. Chundrigar Road,P.O. Box 4716, Karachi-74000
LEGAL ADVISERSattar & SattarAttorneys -at -law3rd Floor, UBL Building,I.I. Chundrigar Road,Karachi
REGISTRARGangjees Registrar Services (Pvt.) Ltd.516, Clifton Centre, Khayaban-e-Roomi,Kehkashan, Block-5, Clifton, Karachi.Tel: 5375714 - 5836920.
DISTRIBUTORSAKD Investment Management LimitedAKD Securities LimitedBMA Capital Management LimitedIGI Investment Bank LimitedKASB Securities LimitedThe Bank of PunjabAccesss Financial Services (Private) LimitedAl-Falah Securities (Private) LimitedReliance Financial Products (Private) Limited
RATINGAKD Income Fund (Fund)JCR-VIS: �A - (f)� (Single A Minus (f))AKD Investment Management Ltd. (AMC)JCR-VIS: AM3+ (AM - Three Plus)
First Quarter Report I September 30, 2008
AKD INCOME FUND
MISSION STATEMENT
VISION
AKD Income Fund shall aim to preserve its investor�s capital,
while providing the highest quality industry leading returns. Our
goal is to provide investors with a financial product that offers
them a consistent stream of returns, with ample liquidity, catering
to their immediate financial needs, and encouraging long term
savings. AKD Investment Management�s team�s objective is to
offer our clients professionalism and services, defining the standard
for excellence, benchmarked on a global level.
To achieve distinction for consistent, quality returns and highest
standards of service in fixed income as an asset class and become
an indispensable Investment Manager for the masses.
First Quarter Report I September 30, 2008
AKD INCOME FUND
REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY
The Board of Directors of AKD Investment Management Ltd (AKDIML), the management company of AKD Income Fund (AKDIF) is
pleased to present its report along with the accounts of the fund for the first quarter FY09 ended September 30, 2008.
Investment Strategy
AKD Income Fund is a dedicated fund that focuses primarily on fixed income securities and instruments. The objective of AKDIF is to
offer investors an ideal vehicle to invest in a diversified portfolio of fixed income securities / instruments that provide consistent optimum
returns with concern for preservation of capital.
Fund Performance
The Fund generated an annualized return of 11.14% for the First Quarter FY09 (Opening Ex-NAV of PkR 50.4221 and ending NAV of PkR
51.7830). The net income for the quarter stood at PkR 48mn with the fund size of PkR 2.274bn.
Market Performance
As compared to FY07-08 financial sector faced a severe liquidity crunch since the start of this quarter. Combined effect of SBP monetary
tightening act and withdrawals for the holy month of Ramzan and Eid were the main causes behind lack of liquidity with in the system.
During the quarter overnight lending rates showed a continuous upward trend and call rates went as high as 50% along with Karachi
Inter Bank Offer Rate (KIBOR) which also showed an upward movement averaging 13.91% during this quarter.
Future Outlook
The government has taken some prudent measures as it slashed subsidies on diesel and power. Current liquidity crunch is the real
concern and support from the IMF will help the foreign exchange reserves of the country.
Acknowledgements
The Directors would like to take this opportunity to thank the Securities and Exchange Commission of Pakistan, the Ministry of Finance
and the State Bank of Pakistan for their support to the mutual fund industry.
For and on behalf of the Board
Faisal Bengali
Karachi: October 17, 2008 Chief Executive Officer
First Quarter Report I September 30, 2008
AKD INCOME FUND
FUND MANAGER�S REPORT
The Fund posted an annualized return of 11.14% for the First Quarter FY09. (Opening Ex-NAV of PkR 50.4221 and ending NAV of PkR
51.7830). The net income for the quarter stood at PkR 48mn with the fund size of PkR 2.274bn at the end of first quarter FY09.
Investment Strategy
AKD Income Fund is a dedicated fund that focuses primarily on fixed income securities and instruments. The objective of AKDIF is to
offer investors an ideal vehicle to invest in a diversified portfolio of fixed income securities / instruments that provide consistent optimum
returns with concern for preservation of capital.
Investing Activities
In order to maintain low risk profile AKDIF continued with its strategy of maintaining a diversified portfolio of fixed income
securities/instruments generating superior long-term risk adjusted returns keeping a balance of income and growth while preserving
the capital. Following are the key changes in the portfolio of the AKD Income Fund.
� Investments in Term Finance Certificates / Sukuks increased to 45.07% on September 30, 2008 from 39.02% on June
30, 2008 of the net assets.
� Investments in TDR stood at 32.11% on September 30, 2008 from 28.25% on June 30, 2008 of the net assets.
� Investments in COM/COI stood at 20.89% on September 30, 2008 of net assets from 18.83% on June 30, 2008.
� Other Assets stood at 1.93% on September 30, 2008 from 13.90% on June 30, 2008.
Fund Strategy and Outlook
During the first quarter FY09 money market faced severe liquidity shortage due to SBP monetary tightening and withdrawal of deposits
for the holy month of Ramadan and Eid. Commercial banks relied on SBP to square their positions almost everyday. During the last
couple of weeks towards the end of the quarter, inter-bank rates went up as high as 50%. SBP addressed this issue by making PIBs
SLR eligible, while the 19% SLR (Statuary Liquidity Requirement) on long term stable deposits (greater than 1 year) has been completely
done away with. Simultaneously CRR was reduced by 3% from October 18, 2008 and will be reduced by another 1% till November 15,
2008 which led to an injection of PkR 240bn in the money market.
We believe the steps taken by country's economic managers so far, are in the right direction. Although, the need of the hour suggest
an extra leap forward to effectively combat the financial crisis and stimulate economic growth. We expect SBP to act inline with Central
Banks of other countries and strongly urge SBP to cut discount rate in order to make market functional again, ensuring flow of liquidity
to all the market participants.
Distribution for the Quarter
The Board has approved an interim bonus of PkR 0.75/- per unit.
COM/COI - 20.89%
Other Assets - 1.93%
TFCs/Sukuks - 45.07%
TDR - 32.11%
First Quarter Report I September 30, 2008
AKD INCOME FUND
CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIESAS AT SEPTEMBER 30, 2008
(Unaudited) (Audited) September 30, June 30,
2008 2008Note Rupees in '000'
ASSETS
Bank balances 4 3,489 114,070
Receivable against Continuous Funding System (CFS) transactions - 39,323
Investments 5 1,076,819 1,732,948
Loans and receivables 6 1,228,751 1,896,276
Dividend and other receivables 7 65,558 112,711
Deposits and prepayments 4,253 4,367
Preliminary expenses and floatation costs 1,749 1,875
Total assets 2,380,619 3,901,570
LIABILITIES
Payable to AKD Investment Management Limited
- Management Company 6,412 6,318
Payable to Central Depository Company of Pakistan
Limited - Trustee 293 431
Payable to Securities and Exchange Commission of Pakistan 782 4,601
Payable on redemption of units 98,463 13,131
Accrued expenses and other liabilities 8 1,167 672
Total liabilities 107,117 25,153
Net assets 2,273,502 3,876,417
Unit Holders� Fund (as per statement attached) 2,273,502 3,876,417
CONTINGENCIES AND COMMITMENTS 9
(Number of Units)
Number of units in issue 43,904,338 75,384,360
(Rupees)
Net asset value per unit 51.78 51.42
Face value per unit 50.00 50.00
The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.
For AKD Investment Management Limited
(Management Company)
Faisal Bengali Imran MotiwalaChief Executive Officer Director
First Quarter Report I September 30, 2008
AKD INCOME FUND
CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)
FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2008
Quarter endedSeptember 30,
2008 2007Note Rupees in '000'
INCOME
Capital loss on sale of investments (5,756) -
Profit on bank deposits 2,972 26,436
Income from Term Deposit Receipts 28,110 14,562
Income from spread transactions - 24,935
Income from Continuous Funding System transactions 66 424
Income from Term Finance Certificates and Sukuk bonds 45,772 4,988
Income from Government Securities 1,325 134
Income from Commercial Papers 831 -
Income from Certificates of Musharika and Certificates of Investment 16,429 3,717
Other Income 369 -
90,118 75,196
Unrealised appreciation on re-measurement of investments at
fair value through profit or loss - net 4,067 9,893
Unrealised diminiuation on revaluation of future contracts - (6,458)
Total Income 94,185 78,631
EXPENSES
Remuneration of AKD Investment Management Limited - Management Company 8,329 7,528
Remuneration of Central Depository Company of Pakistan Limited - Trustee 1,034 937
Annual fee - Securities and Exchange Commission of Pakistan 782 684
Brokerage and Capital value tax 69 826
Borrowing costs 859 -
Fees and Subscription 291 15
Legal and Professional Charges 63 -
Auditors' remuneration 63 57
Settlement and bank charges 40 70
Amortisation of preliminary expenses and floatation costs 126 126
Total Expenses 11,656 10,243
Net Income from operating activities 82,529 68,388
Element of accrued income / (loss) and capital gains / (losses) included
in prices of units issued less those in units redeemed (34,582) 37,594
Net Income 47,947 105,982
Earnings per unit 10
The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.
For AKD Investment Management Limited
(Management Company)
Faisal Bengali Imran MotiwalaChief Executive Officer Director
First Quarter Report I September 30, 2008
AKD INCOME FUND
CONDENSED INTERIM DISTRIBUTION STATEMENT (UNAUDITED)
FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2008
Quarter endedSeptember 30,
2008 2007Rupees in '000'
Undistributed income brought forward 105,685 83,826
Final distribution
(2008: for the year ended June 30, 2008: Rs 1.00 per unit
Date of distribution: July 07, 2008)
(2007: for the period from October 2, 2006 to June 30, 2007: Rs 1.59 per unit
Date of distribution: July 11, 2007)
- Cash distribution (13,747) -
- Issue of bonus units (61,638) (75,443)
Element of income / (loss) and capital gains / (losses) included in
prices of units sold less those in units redeemed - amount
representing income / (losses) that form part of the unit holders' fund (460) -
Net income for the period 47,947 105,982
Undistributed income carried forward 77,787 114,365
The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.
For AKD Investment Management Limited
(Management Company)
Faisal Bengali Imran MotiwalaChief Executive Officer Director
First Quarter Report I September 30, 2008
AKD INCOME FUND
Quarter endedSeptember 30,
2008 2007Rupees in '000'
CASH FLOW FROM OPERATING ACTIVITIES
Net income for the period 47,947 105,982
Adjustments for non-cash and other itemsUnrealised appreciation in fair value of investments 'at fair value through profit or loss - net (4,067) (9,893)Unrealised diminiuation on revaluation of future contracts - 6,458Element of (income) / loss and capital (gains) / losses included in prices of units issued less those in units redeemed 34,582 (37,594)Amortisation of preliminary expenses and floatation costs 126 126Remuneration of AKD Investment Management Limited - Management Company 8,329 7,528Remuneration of Central Depository Company of Pakistan Limited - Trustee 1,034 937
87,951 73,544(Increase) / decrease in assetsReceivable against Continuous Funding System Transactions 39,323 17,673Investments 659,179 (610,381)Loans and Receivables 667,525 (840,000)Dividend and other receivables 47,153 (13,176)Deposits and prepayments 114 (26)Receivable against sale of investments - 235,256
1,413,294 (1,210,654)Increase / (decrease) in liabilities Payable against purchase of investments - 12,155Payable to AKD Investment Management Limited - Management Company (593) 996Payable to Central Depository Company of Pakistan Limited - Trustee 1 (20)Payable to Securities and Exchange Commission of Pakistan (3,819) 684Accrued expenses and other liabilities 495 7,274
(3,916) 21,089Remuneration paid to AKD Investment Management Limited - Management Company (7,642) (6,387)Remuneration paid to Central Depository Company of Pakistan Limited- Trustee (1,173) (833)
Net cash generated / (used) from / in operating activities 1,488,514 (1,123,241)
CASH FLOW FROM FINANCING ACTIVITIES
Net (payments) / receipts against redemption / sales of units (1,585,348) 1,481,129Dividend paid (13,747) -Net cash (outflow) / inflow from financing activities (1,599,095) 1,481,129
Net (decrease) / increase in cash and cash equivalents during the period (110,581) 357,888Cash and cash equivalents at the beginning of the period 114,070 1,093,308
Cash and cash equivalents as at the end of the period 3,489 1,451,196
The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.
CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)
FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2008
For AKD Investment Management Limited
(Management Company)
Faisal Bengali Imran MotiwalaChief Executive Officer Director
First Quarter Report I September 30, 2008
AKD INCOME FUND
Quarter endedSeptember 30,
2008 2007Rupees in '000'
Net assets at the beginning of the year 3,876,417 2,450,766
Issue of 23,619,016 units (2007: 59,896,636 units) 1,201,527 3,062,134Redemption of 56,321,471 units (2007: 31,006,428 units) (2,872,207) (1,580,295)
(1,670,680) 1,481,839Element of (income) / loss and capital (gains) / losses included in prices of units issued less those in units redeemed
- amount representing (income) / loss and capital (gains) / losses - transferred to Income Statement 34,582 (37,594)
- amount representing (income) / loss that form part of unit holders' fund - transferred to Distribution Statement 460 -
35,042 (37,594)
Net unrealised (diminution) in fair value of investments classified as �available for sale� (342) -Capital gain realised against sale of investments classified as �available for sale� (675) -
(1,017) -Issue of 1,222,433 final bonus units (2007: Issue of 1,503,528 bonus units for the period from October 2, 2006 to June 30, 2007) 61,638 75,443
Other net income for the period 49,636 102,547
Element of loss and capital losses included in prices of units issued less those in units redeemed - amount representing unrealised diminution (460) -
Capital loss on sale of investments (5,756) -
Unrealised appreciation on re-measurement of investments at fair value through profit or loss - net 4,067 9,893
Unrealised diminiuation on revaluation of future contracts - (6,458)
Final distribution (2008: for the year ended June 30, 2008: Rs 1.00 per unit Date of distribution: July 07, 2008) (2007: for the period from October 2, 2006 to June 30, 2007: Rs 1.59 per unit Date of distribution: July 11, 2007) - Cash distribution (13,747) - - Issue of bonus units (61,638) (75,443)
(27,898) 30,539
Net assets at the end of the year 2,273,502 4,000,993
The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.
CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND (UN-AUDITED)
FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2008
For AKD Investment Management Limited
(Management Company)
Faisal Bengali Imran MotiwalaChief Executive Officer Director
First Quarter Report I September 30, 2008
AKD INCOME FUND
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2008
1. LEGAL STATUS AND NATURE OF BUSINESS
AKD Income Fund (the Fund) was established under a Trust Deed executed between AKD Investment Management Limited
(AKDIML) as the Management Company and Central Depository Company of Pakistan Limited (CDC) as the Trustee. The Securities
and Exchange Commission of Pakistan (SECP) authorised constitution of the Trust Deed on September 11, 2006 and it was
executed on October 2, 2006 in accordance with the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003
(NBFC Rules). The Fund commenced operations from March 23, 2007.
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 606, Continental
Trade Centre, Block 8, Clifton, Karachi.
The Fund is an open ended mutual fund and is listed on the Karachi Stock Exchange. Units are offered for public subscription on
a continuous basis. The units are transferable and can also be redeemed by surrendering to the Fund.
JCR-VIS Credit Rating Company Limited has assigned a management quality rating of 'AM3+' to the Management Company and
fund stability rating of "A-(f)" to the Fund.
The principal activity of the Fund is to make investments in fixed income securities. Other avenues of investments include spread
transactions in listed securities and transactions under Continuous Funding System. Title of the assets of the Fund are held in
the name of Central Depository Company of Pakistan Limited as trustee of the Fund.
2. STATEMENT OF COMPLIANCE
2.1 These condensed interim financial statements have been prepared in accordance with approved accounting standards as
applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS)
issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984, the requirements
of the Trust Deed, the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules), the
Non-Banking Finance Companies and Notified Entities Regulations, 2007 (the NBFC Regulations) and directives issued by
the Securities and Exchange Commission of Pakistan (SECP). Wherever the requirements of the Trust Deed, the NBFC Rules,
the NBFC Regulation or directives issued by SECP differ with the requirements of IFRS, the requirements of the Trust Deed,
the NBFC Rules, the NBFC Regulations or the directives issued by SECP prevail. 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'.
2.2 These condensed interim financial statements are unaudited.
3. ACCOUNTING POLICIES
The accounting policies adopted in preparation of these financial statements are the same as those applied in the preparation of
the published financial statements of the Fund for the year ended June 30, 2008.
(Unaudited) (Audited)
September 30, June 30,
2008 2008
Note Rupees in '000'
4. BANK BALANCES
In current accounts 252 452
In savings accounts 3,237 113,618
3,489 114,070
5. INVESTMENTS
Financial assets at fair value through profit or loss - held for trading
- Quoted equity securities 5.1 52,196 47,028
- Fixed income and other debt securities 5.2 744,040 1,223,176
Available for sale
- Fixed income and other debt securities 5.3 280,583 462,744
1,076,819 1,732,948
First Quarter Report I September 30, 2008
AKD INCOME FUND
Number of shares Balance as at Septembter 30, 2008
Name of the Investee Company As atJuly 1, 2008
Purchasesduring
the period
Bonus /Rights issue
Salesduring
the period
As atSept. 30,2008
Book ValueMarketvalue
Appreciation/(Diminution)
Marketvalue as
a percentage ofinvestments
5.1 'Assets at fair value through profit or loss' - held for trading (Quoted equity securities)
SHARES OF LISTED COMPANIES - Preference shares
Leasing Companies
Security Leasing Corporation
(Preference shares) 5,167,875 - - - 5,167,875 47,028 52,196 5,168 2.30% 4.85%
Total listed equity securities 47,028 52,196 5,168
Rupees in �000�
Marketvalue as
a percentageof net assets
(Unaudited) (Audited)
September 30, June 30,
Note 2008 2008
(Rupees in '000)
Term finance certificates and Sukuk Bonds 5.2.1 744,040 1,049,709
Government Securities 5.2.2 - 173,467
744,040 1,223,176
5.2 'Assets at fair value through profit or loss' - held for trading (Fixed income and other debt securities)
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Certificates / Bonds of Rs 5,000 each unless otherwise stated
Term finance certificates - Listed
Pakistan Mobile Communications Limited 50,000 - 50,000 - - - - - - -
Dewan Cement Limited * 20,000 - - 20,000 6 months KIBOR+2.00% 100,000 100,000 - 4.40% 9.29%
Worldcall Telecom Limited * 20,000 - - 20,000 6 months KIBOR+1.60% 100,000 100,000 - 4.40% 9.29%
United Bank Limited (10-8-04) 13,540 - - 13,540 8.45% (Fixed) 59,448 59,147 (301) 2.60% 5.49%
Faysal Bank Limited 1,104 - - 1,104 6 months KIBOR+1.40% 5,670 5,612 (58) 0.25% 0.52%
Engro Chemical Pakistan Limited (30-11-07) 1,825 - 1,800 25 6 months KIBOR+1.55% 126 125 (1) 0.01% 0.01%
United Bank Limited (14-2-08) 12,000 - - 12,000 6 months KIBOR+0.85% 59,658 59,412 (246) 2.61% 5.52%
Pak Arab Fertilizers Limited 6,724 - 6,000 724 6 months KIBOR+1.50% 3,613 3,628 15 0.16% 0.34%
NIB Bank Limited 8,000 - 8,000 - - - - - - -
Pace Pakistan Limited 115 - - 115 6 months KIBOR+1.50% 582 581 (1) 0.03% 0.05%
329,097 328,505 (592)
Term finance certificates - Unlisted
Engro Chemical Pakistan Limited (PRP II) 20,000 - - 20,000 6 months KIBOR+1.25% 100,630 100,600 (30) 4.42% 9.34%
Engro Chemical Pakistan Limited (PRP I) 8,900 - - 8,900 6 months KIBOR+1.70% 45,279 44,803 (476) 1.97% 4.16%
Al-Abbas Sugar Mills Limited 5,000 - - 5,000 6 months KIBOR+1.75% 25,135 25,132 (3) 1.11% 2.33%
JDW Sugar Mills Limited 14,000 - - 14,000 3 months KIBOR+1.25% 70,000 70,000 - 3.08% 6.50%
241,044 240,535 (509)
Sukuk Bonds - Unlisted
B.R.R. Guardian Modaraba - 5,000 - 5,000 6 months KIBOR+1.30% 25,000 25,000 - 1.10% 2.32%
House Building Finance Corporation Limited 30,000 - - 30,000 6 months KIBOR+1.00% 150,000 150,000 - 6.60% 13.93%
175,000 175,000 -
745,141 744,040 (1,101)
* This represents amount invested in private placement of term finance certificates which have not been issued uptill September 30, 2008.
Number of certificates / bonds
Name of the Investee Company As atJuly 1, 2008
Purchasesduring
the period
Sales /redeemed
during the period
As atSept. 30,2008
Profit / mark-up rateBook Value
Market valueas at
Sept. 30, 2008
Appreciation/(Diminution)
Percentageof
total investments
5.2.1 Term finance Certificates and Sukuk Bonds
Rupees in �000�
Percentageof
net assets
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Face Value Balance as at September 30, 2008 Percentage in relation to
Issue dateTenor Balance
as at1 July 2008
Rupees in �000�
5.2.2 Government Securities
Purchasesduring
the period
Saleduring
the period
Balanceas at
30 September2008
Book ValueFair value
as at30 Sept. 2008
Appreciation /(diminution)
Fair Valueas a percentage
of net assets
Fair Valueas a percentageof Investments
Pakistan Investment Bonds
October 31, 2006 20 Years 25,000 - 25,000 - - - - - -
October 31, 2006 15 Years 95,000 - 95,000 - - - - - -
August 22, 2007 10 Years 100,000 - 100,000 - - - - - -
220,000 - 220,000 - - - -
(Unaudited) (Audited)
September 30, June 30,
Note 2008 2008
(Rupees in '000)
Term finance certificates and Sukuk Bonds 5.3.1 280,583 462,744
5.3 Available for sale (Fixed income and other debt securities)
First Quarter R
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Certificates / Bonds of Rs 5,000 each unless otherwise stated
Term Finance Certificates - Unlisted
KASB Securities Limited 10,000 - 5,000 5,000 6 months KIBOR+1.90% 25,395 25,190 (205) 1.11% 2.34%
Trakker (Pvt.) Limited 200 - - 200 6 months KIBOR+3.50% 15,000 15,000 - 0.66% 1.39%
First Dawood Investment Bank Limited 6,300 - - 6,300 6 months KIBOR+1.60% 31,840 31,674 (166) 1.39% 2.94%
Pakistan Mobile Communications Limited 25,000 - 10,000 15,000 6 months KIBOR+1.30% 74,685 74,685 - 3.29% 6.94%
Avari Hotels Limited 7,093 - - 7,093 6 months KIBOR+3.25% 35,467 35,467 - 1.56% 3.29%
Al-Abbas Sugar Mills Limited 7,000 - 6,000 1,000 6 months KIBOR+1.75% 5,027 5,026 (1) 0.22% 0.47%
Trakker (Pvt.) Limited - private placement
of Rs 14,000,000 1 - 1 - - - - - - -
187,414 187,042 (372)
Sukuk Bonds - Unlisted
New Allied Electronics Industries (Pvt.) Limited
-certificate of Rs 312.5 each 96,000 - - 96,000 3 months KIBOR + 2.60% 30,201 30,225 24 1.33% 2.81%
Kohat Cement Company Limited 13,000 - 2,000 11,000 6 months KIBOR + 1.80% 53,252 53,273 21 2.34% 4.95%
Maple Leaf Cement Factory Limited 12,000 - 10,000 2,000 6 months KIBOR + 1.70% 10,058 10,043 (15) 0.44% 0.93%
93,511 93,541 30
280,925 280,583 (342)
Number of certificates / bonds
Name of the Investee Company As atJuly 1, 2008
Purchasesduring
the period
Sales /redeemed
during the period
As atSept. 30,2008
Profit / mark-up rateBook Value
Market valueas at
Sept. 30, 2008
Appreciation/(Diminution)
Percentageof
total investments
5.3.1 Term finance Certificates and Sukuk Bonds
Rupees in �000�
Percentageof
net assets
First Quarter R
eport I S
eptem
ber 3
0, 2
008
AK
D IN
CO
ME
FU
ND
(Unaudited) (Audited)
September 30, June 30,
2008 2008
Note Rupees in '000'
5.4 Net unrealised (diminution) / appreciation on re-measurement of
investments classified as 'financial assets through profit or loss' - net
Market value of securities 796,236 1,270,204
Less: carrying value of securities (792,169) (1,290,826)
4,067 (20,622)
5.5 Net unrealised appreciation on re-measurement of investments
classified as available for sale' - net
Market value of securities 280,583 462,744
Less: carrying cost of securities (280,086) (461,230)
497 1,514
6. LOANS AND RECEIVABLES
Certificates of Musharika 6.1 300,000 555,000
Certificates of Investment 6.2 175,000 175,000
Commercial Papers 6.3 23,751 71,276
Term Deposit Receipts 6.4 730,000 1,095,000
1,228,751 1,896,276
Name of Modaraba / Investee CompanyExpected
profit /mark-up rate
MaturityCarrying
amount as atSept. 30, 2008
(Rupees in '000)
6.1 Certificates of Musharika
First Punjab Modaraba 11.20% - 11.90% 3 - 6 months 150,000
First National Bank Modaraba 14.18% - 14.31% 3 - 30 months 150,000
300,000
6.2 Certificates of Investment
Orix Investment Bank Limited 10.95% 6-Mar-09 50,000
Al-Zamin Leasing Corporation Limited 15.80% 14-Feb-09 25,000
Saudi Pak Leasing Company Limited 14.82% 20-Feb-10 100,000
175,000
6.3 Commercial Papers
IGI Insurance Company Limited 10.66% 23-Oct-08 23,751
23,751
6.4 Term Deposit Receipts
Bank of Punjab 11.40% - 12.00% 19-Mar-09 400,000
Mybank Limited 10.80% - 13.00% 3 -12 months 300,000
Tameer Microfinance Bank 13.00% 30-Apr-09 30,000
730,000
First Quarter Report I September 30, 2008
AKD INCOME FUND
(Unaudited) (Audited)
September 30, June 30,
2008 2008
Rupees in '000'
7. DIVIDEND AND OTHER RECEIVABLES
Profit receivable on bank deposits and certificates of Musharika and Investment 24,281 58,384
Income accrued on CFS transactions - 773
Income accrued on Term Finance Certificates and Sukuk Bonds 40,035 35,370
Income accrued on Pakistan Investment Bonds - 5,441
Income accrued on security margin deposits - 8
Income accrued on commercial papers 1,096 2,740
Receivable against conversion of units 146 9,995
65,558 112,711
8. ACCRUED EXPENSES AND OTHER LIABILITIES
Brokerage 20 62
National Clearing Company Charges - 38
Withholding tax payable 23 8
Auditors' remuneration 80 193
Others 1,044 371
1,167 672
9. CONTINGENCIES AND COMMITMENTS
Continuous Funding System (CFS) transactions (including transactions
to be rolled over) entered into by the Fund in respect of which the
purchase transactions have not been settled as at period / year end - 30,960
10. Earnings per unit
Earnings per unit (EPU) has not been disclosed as in the opinion of the management determination of weighted average units for
calculating EPU is not practicable.
(Unaudited) For the
First Quarter endedSeptember 30
2008 2007Rupees in '000'11. TRANSACTIONS WITH CONNECTED PERSONS
11.1 Transactions during the period
AKD Investment Management Limited - Management Company
Purchase of units (2008: 485,788 ; 2007: Nil) 25,000 -
Redemption of units (2008: 58,063 ; 2007: Nil) 3,000 -
Management fee 8,329 7,528
Sales load 64 1,598
Preliminary expenses and floatation costs paid by the Management Company 500 -
Central Depository Company of Pakistan Limited - Trustee
Trustee fee 1,034 937
Purchase of units (2008: 978,151 ; 2007: Nil) 50,000 -
Redemption of units (2008: 489,629 ; 2007: Nil ) 25,000 -
Issue of bonus units (2008: 35186 ; 2007: 21,846) 1,774 1,096
First Quarter Report I September 30, 2008
AKD INCOME FUND
(Unaudited) For the
First Quarter endedSeptember 30
2008 2007Rupees in '000'
AKD Investment Management Limited Staff Provident Fund
Purchase of units (2008: 75,613 ; 2007: 4,875) 3,875 250
Redemption of units (2008: Nil ; 2007: 20,164) - 1,021
Issue of bonus units (2008: 1,027 ; 2007: 621) 52 31
Key management personnel - Asset Management Company
Purchase of units (2008: Nil; 2007: 202,652) - 10,244
Redemption of units (2008: Nil; 2007: 29,263) - 1,479
Issue of bonus units (2008: Nil; 2007: 901) - 45
Aqeel Karim Dhedhi Securities (Private) Limited
Issue of bonus units (2008: 52,513 ; 2007: 76,226) 2,648 3,825
AKD Opportunity Fund
Purchase of units (2008: 4,779,407 ; 2007: Nil) 244,000 -
Redemption of units (2008: 4,612,617 ; 2007: Nil) 236,358 -
Issue of bonus units (2008: 11,570 ; 2007: Nil) 583 -
AKD Index Tracker Fund
Purchase of units (2008: 194,802 ; 2007: Nil) 10,000 -
Redemption of units (2008: 194,802 ; 2007: Nil) 10,087 -
AKD Securities Limited - Brokerage House
Brokerage - 13
(Unaudited) (Audited)
September 30, June 30,
2008 2008
Rupees in '000'11.2 Amounts outstanding as at the period / year end
AKD Investment Management Limited - Management Company
Management fee payable 4,495 3,807
Preliminary expenses and floatation costs 1,875 2,375
Sales load payable 42 23
Rating fee payable - 113
Units held (Sept. 30, 2008: 427,725; June 30, 2008: Nil) 22,149 -
28,561 6,318
Central Depository Company of Pakistan Limited - Trustee
Trustee fee payable 292 431
CDS charges Payable 1 -
Units held (Sept. 30, 2008: 2,297,861 ; June 30, 2008: 1,774,153) 118,990 91,230
119,283 91,661
First Quarter Report I September 30, 2008
AKD INCOME FUND
(Unaudited) (Audited)
September 30, June 30,
2008 2008
Rupees in '000'
Aqeel Karim Dhedhi Securities (Private) Limited
Units held (Sept. 30, 2008: 2,700,343 ; June 30, 2008: 2,647,830) 139,832 136,157
AKD Opportunity Fund
Receivable against Conversion of Units 146 9,995
Units held (Sept. 30, 2008: 761,724 ; June 30, 2008: 583,364) 39,444 29,998
39,590 39,993
AKD Investment Management Limited - Staff Provident Fund
Units held (Sept. 30, 2008: 128,412 ; June 30, 2008: 51,772) 6,650 2,662
12. NON - ADJUSTING EVENT AFTER THE BALANCE SHEET DATE
The Board of Directors of the Management Company in its meeting held on October 17, 2008 has approved an interim bonus
of 1.4874% for the period ended September 30, 2008 (September 30, 2007; NIL). This condensed interim financial statements
for the first quarter ended September 30, 2008 do not include the effect of this distribution which will be accounted for in the
condensed interim financial statements for the half year ending December 31, 2008.
13. DATE OF AUTHORISATION FOR ISSUE
These financial statements were authorised for issue on October 17, 2008 by the Board of Directors of the Management Company.
14. GENERAL
Figures have been rounded off to the nearest thousand rupees unless otherwise specified.
For AKD Investment Management Limited
(Management Company)
Faisal Bengali Imran MotiwalaChief Executive Officer Director
First Quarter Report I September 30, 2008
AKD INCOME FUND
INH
OU
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omm
unic
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R.K
. Pri
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606, Continental Trade Centre, Block-8, Clifton, Karachi-74000U.A.N : 92-21-111-AKDIML (111-253-465) Fax : 92-21-5373217
E-mail : [email protected] Website : www.akdinvestment.com
AKD InvestmentManagement Ltd.
Karachi Branch:
Shop No. 1, Plot No. SB-44/2,
Good Time Appartment,
Block 13-B, Gulshan-e-Iqbal, Karachi.
U.A.N : 92-21-111-AKDIML (111-253-465)
Karachi Branch:
Shop No. 13,
Pardesi Pride Building,
Frere Town, Clifton, Karachi.
U.A.N : 92-21-111-AKDIML (111-253-465)
Islamabad Branch:
Eastern Side Basement No.1-A,
Pak Pavilion, 65-E, Fazal-e-Haq Road,
Blue Area, Islamabad.
U.A.N : 92-51-111-AKDIML (111-253-465)
Lahore Branch:
306-A, 6th Floor,
Siddiq Trade Centre,
Gulberg, Lahore.
U.A.N : 92-42-111-AKDIML (111-253-465)