PAKISTAN STOCK MARKET FUND (PSM)

Investment Objective
The objective of the fund is to provide investors long term capital appreciation from its investment in Pakistani equities.

Fund Profile
Pakistan Stock Market Fund (PSM) is an open end equity fund that invests in quality stocks listed in Pakistan. The fund is actively managed and fundamental research drives the investment process. Fundamental outlook of sectors/companies and DCF (discounted cash flow) valuations are the primary factors in sectors allocation and stock selection. Major portion of the funds portfolio is high quality liquid stocks. The funds which are not invested in equities are required to be kept in bank deposits and short-term money market instruments/ placements. PSM is a long only fund and cannot undertake leveraged investments. Under the NBFC Rules, it is only allowed to borrow up to 15% of net assets for up to 90 days to meet redemption needs.

Benchmark
KSE-100 Index. Performance (Since Inception) Quick Stats

PSM (%) BM* (%)

62.26 52.41 26.85 29.41 -3.01 -26.32 24.77 55.16 41.12 34.08 37.87 -10.77 -41.72 35.74

2004 2005 2006 2007 2008 2009 2010 * PSM Benchmark PSM - Overall Asset Allocation May Cash Equity T-bills Other assets net of liabilities 5.3 88.9 5.7 0.1 Apr 3.3 88.1 7.7 0.9

Date of Inception 11th March 2002 Fund Type Open-end Equity Minimum Rs. 5,000 investment Fund Manager Nazia Nauman Rating by PACRA Full year - Jul 09 Jun 10 36 months - Jul 07 - Jun 10 Initial Public Offer PKR 50.00 Currency PKR Registrar Gangjees Registrar Services (Pvt.) Ltd. Trustee Central Depository Company of Pakistan Ltd. (CDC) Auditors KPMG Taseer Hadi & Co, Chartered Accountants

Portfolio Characteristics (May 2011) PSM Price to Earning Net Assets/Mkt. Cap. (Rs. bn) NAV (Rs. per unit) * AHI Universe 7.46 1.28 61.20 KSE-100 8.16* 2,978.99 12,123.15

Fee Schedule Management fee: 2.00% per annum of average NAV Front-end load: Up to 2% effective 12th Jan, 2009 Overall annual expense ratio for the composite is as follows: Financial Year Expense Ratio 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2.56% 2.57% 2.52% 3.27% 3.69% 3.99% 3.86%

2002-03 2001-02

4.43% 5.14% Fund Returns (May 2011) (%) PSM KSE-100 0.54 7.39 24.70 543.86

Expense ratio has been calculated taking into account operating expenses as a percentage of average net assets of the composite PSM Asset Financial Year 2010-11* 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02
st

Month on Month Quarter on Quarter FY11 to date Since Inception

0.41 8.13 23.29 716.23

PSM Assets PKR (million) 1,283.98 1,844.44 1,847.89 3,350.62 3,245.59 3,617.73 2,712.99 1,051.64 783.99 322.97

Funds under management PKR (million) 12,603.06 16,316.34 13,314.79 18,424.17 23,946.67 19,697.64 15,110.07 7,169.37 3,372.59 633 Fauji Fertilizer Company Ltd. Pak. Intnl Container Terminal Ltd. Lucky Cement Ltd. Kot Addu Power Company Ltd. Packages Ltd. 6.1 4.0 3.8 3.7 10.1 Top Ten Holdings (May 2011) Engro Corporation Ltd. Pakistan Oilfields Ltd. Pakistan Petroleum Ltd. Nishat Mills Ltd. Allied Bank Ltd. (%) 9.7 8.8 8.3 6.3 6.1

* as of 31 May 2011

Dividend History Financial Year 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2004-05 2003-04 2002-03

% of Face Value 19.40 0 34 50 60 50 20 60 40

Payout /unit (Rs.) 9.7 17 25 30 25 10 30 20

Form Bonus Bonus Bonus Bonus Bonus Cash Bonus Bonus

Bonus reinvested 19.54 26.34 29.73 35.59 27.75 36.59 28.98 2.75

2001-02* 2.70 1.35 Bonus * Dividend is not for the full year as the fund was launched in March-2002. Face value is Rs.50

All investments in mutual funds and securities are subject to market risk. The NAV based price of these units and any dividends and return thereon are dependent on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and the risk involved.

Meezan Islamic Fund

Meezan Islamic Fund (MIF) is not only the largest Shariah compliant equity fund but also the largest Equity Fund in private sector in Pakistan.

Fund Statistics:
Fund Type Launch Date Trustee Benchmark Auditors Equity 8-Aug-03 Central Depository Company DJIMPK A.F. Ferguson

Management Fee 2 % Front End Load Listing Rating 2.25% KSE 5 Star by JCR-VIS

It is our flagship fund and has been rated 5-Star by JCR-VIS. MIF was launched on 8th August 2003 as the first open end mutual fund of Al Meezan. MIF operates with a clear and well defined investment objective To invest only in Shariah compliant instruments. Under all applicable rules and regulations of the SECP, the fund ensures an investment policy that is strictly in accordance with approved Islamic principles and Riba-Free. MIF invests in combination of income and growth stocks of Shariah compliant companies with demonstrated track record of profitability and stable dividend payout history.

Salient Features of MIF



Risk Diversification
MIF reduce the risk of volatility of prices by investing your money in a well defined portfolio of securities.

Cost Efficiencies
The per unit research and execution costs of a fund manager are also lower due to the large size of portfolio under management.

Professional Management
Our fund managers are trained investment professionals. Their knowledge provides you and opportunity to earn greater risk adjusted returns. Also by investing in MIF, you pass on the job of continuous monitoring and evaluation of investment opportunities to the Fund manager.

Tax Credit
Investment in MIF enables you to get tax benefit upto Rs. 60,000/- in case of salaried person or upto Rs 75,000/- in case of non salaried person on investments upto Rs. 300,000/- under applicable tax laws, if investment is held for a period of one year.

Healthy Return
Apart from tax benefit, MIF also provides you a healthy return on your investment.

Affordability
A minimum investment of Rs. 5,000 makes MIF an affordable investment for small investors. Subsequent investments can be made with a minimum amount of Rs. 1,000. There is no cap on maximum amount of investment

Besides providing all the other benefits associated with investment in mutual funds, MIF gives added comfort of being backed by strong sponsors, professional fund managers, credible Shariah advisors and a carefully selected portfolio of investments which ensure financial prudence as well as Shariah Compatibility. All investments in MIF are screened for Shariah compliance based on the criteria approved by the Meezan Banks Shariah Supervisory Board, which is headed by eminent Shariah scholar Justice (Retd.) Mufti Muhammad Taqi Usmani. For reviewing Shariah Criteria please click here . With such a strong and reputed Islamic foundation, Al Meezan uses its fund management expertise to satisfy your investment needs for Halal and Riba-Free returns. Being an open end mutual fund, its units can be purchased or redeemed on a continuous basis. Thus, the investor will have the freedom to enter the fund by purchasing units at the offer price and to exit the fund by redeeming units at the redemption price on any of the dealing days. The par value of MIF is Rs. 50/- per unit, while the prevailing rates are based on Net Asset Value (NAV) of the day of transaction.

Performance History
Description
Dividend Per Unit (Rs.) *1 % of Opening NAV

20032004*
7.5 15.00%

20042005
17.5 32.15% 35.00%

20052006
17.5 29.81% 35.00%

20062007
15.6 26.61% 31.2%

20072008
10 16.70% 20.00%

20082009
-

20092010
9.00 25.51% 18.00%

% of Face Value (i.e., Rs. 50 / unit) 15.00%

* Since August 2003 * Stock dividend to Growth Unit holders and Cash dividend to Income Unit holders