Arif Habib Limited (AHL) is engaged in providing brokerage and corporate finance services to a large number of institutional, corporate,

high networth individuals and retail clients. It is a listed company with 75% ownership by Arif Habib Securities Ltd, the holding company of one of the premier financial services groups in Pakistan. Arif Habib Group commenced brokerage services in 1970. Our brokerage services are provided by a team of professional brokers with 13 years of average individual experience and 80 years of collective experience. We remain eager to provide realistic trading recommendations, efficient order execution, significant capacity to execute large orders, competititve pricing, and in-depth research reports to our valued clients. COMPANY PROFILE Arif Habib Investments Limited is an Asset Management, Investment Advisory and Pension Fund Management Company, managing Open-end Mutual Fund and Pension Funds. The Company is registered with the Securities & Exchange Commission of Pakistan (SECP) and regulated under the Non-Banking Finance Companies (NBFC) Rules 2003, NBFC and Notified Entities Regulations 2008 and Voluntary Pension System Rules 2005. Arif Habib Investments Limited manages over Rs. 34.86658 billion , as of 31stMarch 2012. It has 16 Mutual Funds, 2 Pension Funds and 9 Investments Plans in its product portfolio to meet the investment needs of its growing clientele. The Company was conceived in the year 2000 and, in March 2002, two of its flagship Funds, the Pakistan Stock Market Fund (PSM) and the Pakistan Income Fund (PIF) were launched. Arif Habib Investments has been an industry leader, setting international standards and bringing innovative products to market.

AHI enjoys the highest Asset manager Quality rating of AM2 (With Positive Outlook) by PACRA in the industry MCB Dynamic Stock Fund has been assigned 5-star ranking for long term due to its outstanding performance by PACRA based on returns achieved up to 30th June 2011. AHI's new index tracker Fund 'AH Dow Jones SAFE Pakistan Titans 15 Index Fund' is the only Fund structured on an index by International Index Provider in Pakistan. Pakistan Income Fund launched in March 2002 by AHI was the 1st Income Fund in the mutual fund industry. AHI brought first private sector equity fund, that is Pakistan Stock Market Fund in the country, which was created an Alpha of 170% since inception in March 2002. Pakistan Cash Management Fund became the 1st Money Market Fund to be assigned stability rating of AAA(f) in the country. Metrobank Pakistan Sovereign Fund-Perpetual, established in 2003 was the first sovereign risk income fund in the industry. PIEF rewrote history in the fixed income Funds category (inception in Aug2008)

by earning highest ever annualized return of 18.33% in f FY09. Arif Habib Investments Fund; the Pakistan Premier Fund Limited (PPFL), was also placed in KSE's top 25 companies in 2005 and 2006. Pakistan International Element Islamic Fund (PIIF) of Arif Habib Investments Limited is the first Mutual Fund in the country with permission from the State Bank of Pakistan to also invest overseas. AHI was the first AMC to introduce ATM card withdrawal facility for retail clients, now offering VISA Debit card in association with a commercial bank AHI was the first AMC to convert closed end fund (Pakistan Capital Market Fund) into an open end fund in 2006 keeping investors interest supreme. 1st AMC to develop unique software based administrative investment plans tailor made for retail as well as corporate investors.

ission and Vision Mission To become a preferred Savings and Investment Manager in the domestic and regional markets, while maximizing stakeholders value Vision To become synonymous with Savings

Pension Builder Profile An Investment Plan, which provides an opportunity to create a personalized retirement fund through monthly investments in PSM and PIF, with allocations adjusted according to the age & risk taking capacity of the investor. Pension Planning When it comes to investing for retirement, one is posed with the dilemma of choosing between good returns and the safety of life savings. Table-1 shows the results for a person starting with savings of Rs.2,500 per month at the age of 30 and investing the amount in two different types of investments, debt only investment assuming a yield of 7% per annum, and debt and equity investment (Pension Builder), assuming a yield of 15% per annum, further assuming that this person can increase his/ her investment by 10% each year. The result is that in the debt- only case, the investment accumulates to about Rs.12 million in 30 years or 60 years of age and in the case of Pension Builder, the investment accumulates to about Rs. 29 million. Every now and then one comes across friends, relatives and acquaintances facing problems of either not having enough savings to take them through retired life or not knowing how to invest their savings to get a good enough return which keeps them going comfortably. The cause of course being the lack of investment opportunities available, and perhaps even the lack of foresight and awareness to start building pension early enough. In our society, by the time an individual recognizes the need to create a retirement fund, he/she is usually around 50 years old. As a result the retiree finds it difficult to keep up the lifestyle he/she has maintained prior to retirement. Surely, to have a comfortable retired life one would need a regular (monthly) stream of income which is somewhat close to the last drawn monthly income, if not exactly equal.

The Pension Builder is a unique plan designed specifically to meet the requirement of an individual after his/her retirement. Unlike other saving instruments (NSS) and financial securities (common stocks and bonds), which allow an investor to accumulate wealth, these are not designed to work as pension plan. Investment Policy of the Pension Builder The Pension Builder recognizes that at a young age, pension savings will not be needed for several years, thus it invests a major portion of savings in PSM at the early stages of ones life and then gradually, as one approaches retirement, it reduces the investment in PSM and transfers these to fixed income instruments (such as PIF). This gives the perfect blend of balancing risk and reward through time diversification. Thus you get high returns from PSM when you can ride through the price volatility and at later stage in life you move to the safety of being invested in PIF when you can no longer take the risk. At retirement the exposure in PSM is reduced to only 20% of the investment. Table 1 Expected Performance of Pension Builder as opposed to a debt only investment Return on Return on Pension Debt Builder Age (Yrs.) 30 30 Return on Debt pa 7% 7% Return on Equity pa Nil 15% Annual Income (Rs.) 300,000 300,000 Salary Increase every year 10% 10% How much can you save & invest every 10% 10% year Outcome Total Investment (Rs.) 5,458,303 5,458,303 Estimated Fund Size on retirement (Rs.) 11,798,148 28,900,649 How much to invest to be able to maintain your lifestyle after retirement To build a pension fund one would have to first determine the amount required on a monthly basis after the time of retirement. In addition, one will have to work out how much will he/she need to set aside on a monthly basis to come up with a lump sum amount large enough to create an annuity, which provides a desired monthly income after retirement. We estimate that a person needs to invest around 20% of his/her income every month throughout his working life to accumulate adequate savings for a lifestyle commensurate with his/her income. Term of the Plan The term of the Plan would depend on the age of the investor, as the plan would mature at the age of 60 years. However, the investor is free to disinvest as and when desired, without any penalties and with returns up to the day of redemption. Monthly Contribution The Pension Builder offers an opportunity where individuals can conveniently and gradually accumulate a pension of their own. The Plan could be started with a monthly contribution of as little as Rs.1, 000 or more (not multiples of Rs.1, 000 but any amount of over Rs.1,000). It is desirable that the investor increases the investment by a certain percentage every year according to the rise in income levels to make the Plan work best. Insurance Option The Pension Builder also has an additional and optional feature of insurance whereby in case of death or permanent and total disability, not only the investors monthly contribution in the plan is continued, but the investor (or the family) is

also entitled to four times of the monthly contribution as a personal income or early pension. Paying a nominal premium in addition to the usual monthly contribution could insure the plan. By receiving, what in effect is early pension, the investors life style as well as the final objective does not get disturbed. Salient Benefits

The investor will, at all times, have the flexibility to increase the monthly contribution as earning levels rise. Facility of redemption, as and when desired, without any penalties or delays. No penalties on delayed payments. However, delay in insurance premium may cause problems.

Options available at maturity of the plan The Investor will have an option to claim a lump sum at the time of maturity or opt for a monthly plan in shape of annuity or invest in the Arif Habib Monthly Income Plan. Disclaimer Arif Habib Investments Limited (formerly Arif Habib Investment Management Limited) will only be responsible for matters pertaining to the two unit trust schemes. It can only facilitate and coordinate as far as insurance arrangements are concerned. Full responsibility of all matters pertaining to claims etc. will be of the Insurance Company chosen by the Investor.