My Final Project

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Comparison of Islamic and convention mutual icome funds of Pakistan

By
MUHAMMAD AKBAR
&
TAIMOOR KHAN

This report of the final project is submitted to the Department of Accounting &

Finance Faculty of Management Sciences International Islamic University

Islamabad,to fulfill theRequirementsOfthe degree

Master of Business Administration (finance).

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Faculty of Management Sciences
International Islamic University Islamabad

PROJECT
REPORT

Ttile of Project:
Islamic and coventional mutual incom funds comparison

Submitted to:
Sir Zulfiqar Ali Shah
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Submittedby:
MUHAMMAD AKBAR
(5925-FMS/MBA/S13)

TAIMOOR KHAN
(5723-FMS/MBA/S12)

FACULTY OF MANAGEMENT SCIENCES
INTERNATIONAL ISLAMIC UNIVERSITY ISLAMABAD

2014 copyright by Muhammad Akbar & Taimoor khan
All rights are reserved. No part of this final project report can be reproduced in any form without
the former sanction of the authors.

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SUPERVISORS CERTIFICATE
This is certified that Mr. RIAZ AHMAD with (Reg No# 5681-FMS/MBA/S12)&
Mr.MUHAMMAD BILAL AFZALwith (Reg No#5723-FMS/MBA/S12)of MBA
havecompleted their final project report entitled Comparison of Conventional & Islamic
mutualIncome Fundsof Pakistan under my supervision. I have checked the report and found
itconfined work of the authors.

MR. IKRAM TOOR
SUPERVISOR
Assistant Professor IIUI

DR. SYED ZULFIQAR ALI SHAH
Head ofDepartment Accounting & Finance
Faculty of Management Sciences
International Islamic University Islamabad
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BISMILLAH IR-REHMAN IR-RAHIM
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By The Name of ALLAH who is most merciful and kind

Thanks to ALLAH Almighty the most merciful and beneficent,
Who gave usthe courage & talent to complete task assigned to us successfully.
Any achievement requires the efforts of a lot of people. This final project report
also is a result of the mutual effort. Although the report has been exclusively
prepared by us with the purpose of fulfilling the requirements of FINAL PROJECT of
MBA (Masters in Business Administration), there are numerous helping hands
behind it, who have guided us on our way.
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Bundle of thanks to Mr. IKRAM TOORfor guiding us with attention and care.
He has taken pain to complete the project and makesessentialamendment
as and when it was needed.

We would also like to thank s our Institution and faculty members
Without whom this project would have been a distant reality.
We also extend our heartfelt thanks to
Our families and well-wishers.

RIAZ AHMAD M.BILAL AFZAL
5681-FMS/MBA/S12 5723-FMS/MBA/S12

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This Final Project is lovingly dedicated to our respective parents who
have been our persistent source of motivation. They have given us the
determination and discipline to challenge any task with interest and
purpose. Without their support and love this project would not have been
made possible.

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PROJECT SCOPE
This project covers few conventional and Islamic mutual fund companies selected from
the mutual fund industry of Pakistan. In this project we have analyzed Income Fund portion of
the mutual fund of the selected mutual fund companies. For the conventional we have selected
conventional Income Fund and for the Islamic we have selected Islamic Income Fund.

We have selected three conventional and three Islamic Income Funds from the selected
mutual funds companies. Through different ratios, vertical and horizontal analysis we have
examined their performance for three consecutive years. Significant analysis and results of the
companies has been discussed with necessary graphical and tabular demonstration of the specific
company.

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PURPOSEAND SIGNIFICANCE OF THE PROJECT
The purpose of this project is to measure the performance of the selected conventional
and Islamic mutual income funds working and providing their services to investors in Pakistan.
Through a comparison of the selected mutual income funds working in our country we will be
able to select the best mutual income fund from the mutual fund industry of country. This project
is useful for the investors who want to invest in the mutual fund, and it provides basis for the
decision making regarding investment.
The performance of the Islamic mutual income fund has been evaluated and it indicated
good results and has provided good investment opportunities, so an investor who not wants to
indulge himself in the interest base profit and earning can benefit from this project. He can get a
lot from this project, as it includes the introduction about different Islamic mutual fund and
different Islamic mutual income fund working in Pakistan.
As interest is prohibited in Islam and Muslims must avoid it, so by investing in the
Islamic mutual income fund they can earn the profit and can also avoid fight with Allah
Almighty and this project can help them in their decision making.

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EXECUTIVE SUMMARY
This project has coveredthe evaluation of the selected conventional and Islamic mutual
income funds from the mutual fund sector of Pakistan by using different techniques. Three
companiesfrom the conventional mutual income fund and three companies form the Islamic
mutual income fund were selected for the analysis. Different techniques have been applied with
the primary objective performance evaluation of the selected companies. In the start of the
project conventional and Islamic mutual funds have been discussed, and we have also provided a
detail view of the performance of mutual fund sector of Pakistan in the previous periods.
Detailed introductions of all the selected conventional and Islamic income funds
companies have been given the subsequent chapter. The Mission and the vision statement of the
selected companies have also been provided in the introduction of the companies. Some of the
major developments and the important milestones that havebeen achieved by the selected
companies are also the part of the project.
A theoretical background has been mentioned in summarized form in the subsequent
chapter.Different techniques which are used for the evaluation has been discussed with the
theoretical concepts, those techniques are the ratios, common size and trend analysis and in the
chaptertheir interpretation and importance has been highlighted.
In the ratios analysis part of the study we have calculated different ratios for both the
conventional and Islamic mutual income funds.The results have been represented both in
graphically and in the tabular form. A slight explanation and interpretation has been stated on the
basis of given results.
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And at the last of the project, we have concluded all the results of the selected mutual
funds. We have highlighted the important aspects of all the findings and the overall performance
of the selected mutual funds.

TABLE OF CONTENTS:
The Page Number:
CHAPTER 01.18
INTRODUCTION:
Introduction to Mutual Fund.19
Mutual Fund Process.21
Brief History Of The Mutual Funds......22
The Mutual Funds Association Of Pakistan (MUFAP)...22
Types Mutual Funds..23
The Islamic Finance Industry............26
The Rise Of The Islamic Mutual Funds....27
So Why Islamic Funds......29
CHAPTER 02...............................................................................................30
INTRODUCTION TO CONVENTIONAL MUTUAL FUND COMPANIES:
1) ALFALAH GHP INVESTMENT MANAGEMENT LIMITED
Mission...31
Vision.........31
The Board of Directors of Management Company............31
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The Audit Committee.................32
The Funds under Management...............32
2) ABL ASSET MANAGEMENT COMPANY LIMITED
Introduction........33
Management...33
Trustee........33
Profile of Directors.........33

3) AKD INVESTMENT MANAGEMENT LIMITED (AKDIML)
Mission...35
Company....35
Products and Services....35
Management of the Company....36
Financial Services......36
Distribution Network.........36
CHAPTER 0337
INTRODUCTION TO ISLAMIC MUTUAL FUND COMPANIES
1) AL-MEEZAN ISLAMIC INCOME FUND
Vision........38
Mission......38
Board of Directors.....38
Shariah Board........39
Meezan Islamic Income Fund...39
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2) IGI ISLAMIC INCOME FUND
Vision........41
Mission......41
Values....41
The Board of Directors......42
Corporate Partners.....43
IGI Islamic Income Fund...........43
3) DAWOOD ISLAMIC INCOME FUND
Mission/Vision Statement.....44
Board of Directors.....45
Dawoodperks.....45
Shariah Board....45
Dawood Shariah Division Introduction.....45
CHAPTER 04..46
VETRICAL, TREND &RATIOS ANALYSIS OF THE SELECTED
CONVENTIONAL INCOME FUNDS:
COMMON SIZE ANALYSIS AND THE TREND ANALYSIS:

1) ALFALAH GHP INVESTMENT MANAGEMENT LIMITED:

Balance Sheet of Alfalah:
Common Size Analysis..48
Trend Analysis...49

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Income Statement Alfalah:
Trend Analysis...50

2) ABL ASSET MANAGEMENT COMPANY LIMITED:

Balance Sheet of ABL:
Common Size Analysis..................53
Trend Analysis...............54

Income Statement ABL:
Common Size Analysis......55
Trend Analysis...........................57

3) AKD INVESTMENT MANAGEMENT LIMITED:

Balance Sheet of AKD:
Common Size Analysis...60
Trend Analysis........61
Income Statement AKD:
Common Size Analysis...62
Trend Analysis........64
RATIOS ANALYSIS OF THE SELECTED CONVENTIONAL INCOME
FUNDS:
Return on assets:
Table= B.1 Return on assets.....67
Graph= B.1 Return on assets....67
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Return on Equity:
Table= B.2Return on Equity.....68
Graph= B.2 Return on equity....68
Profit Margin:
Table= B.3Profit Margin.......69
Graph= B.3 Profit Margins...69
Net asset value per unit:
Table= B.4 Net asset value per unit......70
Graph= B.4 Net Asset Value per Unit......70
Earning per unit:
Table= B.5 Earning per unit.....71
Graph= B.5 Earning Per unit....71
Current ratio:
Table= B.6 Current ratio..72
Graph= B.6 Current Ratio....72
Net Working Capital Ratio:
Table= B.7Net Working Capital Ratio....73
Graph= B.7 Net Working Capital Ratios....73
Assets Turnover Ratio:
Table= B.8 Assets Turnover Ratio..74
Graph= B.8 Asset Turnover Ratios.....74
Account Receivable Turnover Ratio:
Table= B.9 A/C Receivable Turnover Ratios.....75
Graph= B.9 Account Receivable Turnover Ratios.....75
Debt to Equity Ratio:
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Table= B.90 Debt to Equity Ratio......76
Graph= B.90 Debt to Equity Ratios....76

BEST CONVENTIONAL INCOME FUND..77

CHAPTER 05..78
RATIOS, VERTICAL& HORIZONTAL ANALYSIS OF THE SELECTED
ISLAMIC INCOME FUNDS:
Return on assets:
Table= 1.1 Return on assets...80
Graph= 1.1 Return on assets..80
Return on Equity:
Table= 1.2Return on Equity...81
Graph= 1.2 Return on equity......81
Profit Margin:
Table= 1.3Profit Margin.....82
Graph= 1.3 Profit Margins.....82
Table= 1.4 Net asset value per unit....83
Graph= 1.4 Net Asset Value per Unit....83
Earning per unit:
Table= 1.5 Earning per unit...84
Graph= 1.5 Earning Per unit..84
Current ratio:
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Table= 1.6 Current ratio....85
Graph= 1.6 Current Ratio......85
Table= 1.7Net Working Capital Ratio..86
Graph= 1.7 Net Working Capital Ratios..86
Table= 1.8 Assets Turnover Ratio....87
Graph= 1.8 Asset Turnover Ratios...87
Table= 1.9 A/C Receivable Turnover Ratios...88
Graph= 1.9 Account Receivable Turnover Ratios.......88
Table= 1.90 Debt to Equity Ratio........89
Graph= 1.90 Debt to Equity Ratios..89

BEST ISLAMIC INCOME FUND ..90

COMMON SIZE ANALYSIS AND THE TREND ANALYSIS:

1) AL-MEEZAN ISLAMIC INCOME FUND

BALANCE SHEET OF AL-MEEZAN:
Common Size Analysis....92
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Trend Analysis.....93
Graphical Representation.....94
INCOME STATEMENT AL-MEEZAN:
Common Size Analysis....95
Trend Analysis.....97
Graphical Representation.........................98


BALANCE SHEET OF IGI:
Common Size Analysis.................100
Trend Analysis...............101
Graphical Representation..................102
INCOME STATEMENT IGI:
Trend Analysis...........................105
Graphical Representation...................106

3) DAWOOD ISLAMIC INCOME FUND:

BALANCE SHEET OF DAWOOD:
Trend Analysis.......109
Graphical Representation...110
INCOME STATEMENT DAWOOD:
Trend Analysis.......111
Graphical Representation...112
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CHAPTER 06113
COMPARISION OF THE RESULTS OF THE CONVENTIONAL & ISLAMIC INCOME
FUNDS:
Results of Conventional Income Funds...114
Results of Islamic Income Funds.....115
The Best Income Fund among the Selected Income Funds.....115

CHAPTER 07...116
CONCLUSION AND RECOMMENDATION:
Conclusion and Recommendation....117
Recommendation..118

CHAPTER 08..119
REFERENCES:
Reference......120

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INTRODUCTION TO MUTUAL FUND:
There are two methods of investment. Number first is the direct investment and the
second is the indirect investment. The Direct investment is one in which individuals invest by
themselves, and in the indirect investment the individual gives his / her money to a number of
institutions, companies etc. the direct investment is very suitable for those persons who have the
information,knowledge, and the expertise of moneyinvestment. But those investors who want to
invest his or her money and also want some return for their investment, but they have lack the
information and do not have the expertise to invest in different opportunities. So for those
investorsthe mutual funds are the best and the right option.

A mutual fund is a company that takes the money from many the people and invests in
the stocks, bonds or in the other assets. The combined companies of the stocks, bonds or the
other assets in the Fund are known as portfolio. Each investor who are investing in the fund owns
the shares, which represent a specific part of these companies

Mutual fund is the pool of money created by the individual investors and they give them
it to the professionals. Then the professionals are used to manage these funds and make a
portfolio of the assets, and they determine whether to invest in the stock market or debt market
according to their goal. Currently there are a number of closed-end and open - end mutual funds
which are operating in Pakistan. One of the oldest is NIT and the various funds which are
managed by the Investment Corporation of Pakistan (ICP). The largest numbers of listed
investment funds are twenty-six, which are managed by the ICP. There are about 11 closed-end
mutual funds operating in the private sector of the country.

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Some of the analysts believe that the sector number of mutual funds, their paid-up capital
and the number of investors in these mutual funds are too small. The Mutual Investment Fund
Association of Pakistan (MUFAP) is the body that ensures the transparency and the high ethical
conduct and responsible for the growth of the mutual fund industry. In Pakistan, the first open -
end mutual fund was introduced in the year 1962 by the government. In 1966, the government
then created the Investment Corporation of Pakistan (ICP), which is offering a series of the
closed -end mutual funds. In the late 90's there was a growing tendency to run many privatebased
equity investment funds. In the year 2001 and 2007 there was a huge increase in the profitability,
but in the year 2008 due to the financial crisis the net asset value of those funds fell from 390
billion rupees to 187 corers in the year 2009.The performance of the mutual fund in the year
2008 to 2009 was at the worst state due to the financial crises, but after that the mutual fund
industry backed on its feet and the size of the fund increases by the day, due to theinterestof the
people and due to high returns offered by these mutual funds. The mutual fund industry has the
potential to grow even further and can provides the best opportunities for the investors, but also
very well for the economy of Pakistan.
In a graph below the performance of the open ended mutual fund has been shown, which
are providing a positive trend from the year 2009 to 2012.

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MUTUAL FUND PROCESS:
The mutual fund process is given in the following diagram.

BRIEF HISTORY OF THE MUTUAL FUNDS:
The history of the mutual fund industry is very uncertain, because some of the historians
believe that the concept of the close end mutual was launched in the Netherlands in the year
1822 by King William,but the others believe that it was started by Dutch merchant Adrian van
Ketwich, who started his first investment Fund in the year 1774. Hehas given certainly an idea of
the diversification for the investors who love the minimal risk. He also gives his name to the
fund Ketwich,the Eendragt Maakt MAGT which gives the slogan that "unity creates strength,"
THE
INVESTORS
Fund
Manager
The Securities
The Returns
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he provided these lines in a specific context that, when the different investors pool their money
in one place and then invests in the various types of different securities, then it reduces the risk
as it gives the idea of diversification. The Modern mutual fund was introduced in the
Massachusetts in year 1924. With the passage of time the number of mutual fund has been
increased day by day due to increasein the investor interest to invest in these funds and currently
there is about more than ten thousand mutual funds in the U.S. market alone.

THE MUTUAL FUNDS ASSOCIATION OF PAKISTAN (MUFAP):
Mutual Funds Association of Pakistan (MUFAP) is the trade body for the multi billion
rupees of the asset management industry of Pakistan. The members manage a wide variety of the
investment vehicles which includes stocks, bonds, money market instruments,the government
securities and the bank deposits. The role of MUFAP is to ensure the transparency, the high
ethical conduct and the growth of the mutual fund industry. It was formed in the year 1996 by
Zaigham Mahmood Rizvi, who was the former chairman and the founder member and it was
officially incorporated in the year 2001 as a public company limited by the guarantee without the
share capital. MUFAP has licensed by the Ministry of Commerce (the Directorate General of the
Trade Organizations). After the establishment of MUFAP in the year 1996, different private and
foreign firms were allowed to swim the public funds for the general public. This time also saw
the new heights scale performance of the stock market as a result of the positive government
policies and the incentives, a growth of more than 15 times the net assets of mutual funds in the
period 2000 2008 was recorded. The Mutual Funds are initially under the control of a judicial
body corporate (CLA) under his wing Securities. CLA is a division of the Ministry of Finance,
which was gradually transformed and made the independent as the Commission on the Securities
and Exchange Commission of Pakistan (SECP) within the framework of the Capital Market
Development (CMDP) initiative of the Asian Development Bank, conducted by Pakistan.
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In the graph given below there is a positive trend in the total net asset of the open ended
mutual funds but a negative trend in the closed ended mutual fund of Pakistani mutual fund
sector.

DIFFERENT TYPES OF MUTUAL FUNDS:
On the structure of mutual funds are classified as open-end fund and closed-end fund.
OPEN-END FUNDS:
Open-end funds are the public offer and there is no limit to authorize the capital and the
shares are bought and sold at the outlet of the company. If a person wants to sell these shares
then the daily rates will be calculated in terms of the net asset value (NAV), and if a person
wants redemption of these actions,then he will buy it at a price based on the net asset value. The
Net asset value can be calculated by subtracting the liabilities from the total fund assets.
The Value of Net Assets = Total Assets Liabilities / No of Shares Outstanding
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CLOSED FUND:
Close funds offer the shares through the IPO (Initial Public Offering). This fund operates
as the joint stock company and shares are then traded on the secondary market. If a person wants
to strip and then he can go to the exchange. There is one difference from the open end fund is
that the fund is closely limit to authorize capital approved by ACCP. Here, the prices are
determined by the market forces Fund (supply and demand). Different Rules for the Mutual
Funds operating in Pakistan.
These rules govern mutual funds in Pakistan include:
1. The Investment companies and the investment advisers rules 1971. (Government gated
mutual funds).
2. The Asset Management Companies Regulations 1995. (Regulated open-end mutual
funds).

TYPES OF MUTUAL FUNDS:
With respect to objectives there are various kinds of funds,
Money Market Fund
Income Fund
Islamic Fund
Asset Allocation Fund
Growth Fund

MONEY MARKET:
The money market funds are invested in the short-term securities issued by the
government or the corporations such as T-bills and the commercial paper, whose life is less than
a year, and they are the most liquid instruments.
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EQUITY INCOME:
The main objective of the equity fund is to obtain high income depending on the risk
means that if the funds are invested in the risky securities issued by a corporation then the return
will be high, but if it is invested in a non- risky securities issued by the government,the return
will be lower than the risky securityreturn.
ISLAMIC FUNDS:
As the name indicates,the Islamic funds will be invested in thosesecurities that are in
accordance with the Sharia principles, these funds are not invested in those securities that bear
the interest.
ASSET ALLOCATION FUNDS:
The asset allocation funds are invested in the different securities in order to diversify or
minimize the risk. A type of portfolio is created for this purpose where risk is minimal. These
funds are designed for those investors who do not want to take the maximum risk.
EQUITY GROWTH:
The main purpose of equity growth funds is to increase the principal amount invested,
and a long-term investment can be from 3 to 5 years.

ADVANTAGES OF MUTUAL FUNDS:
DIVERSIFICATION:
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The greatest advantage of the mutual fund is the diversification which means to minimize
the risk. Mutual funds have a quality of diversification because the fund is invested in various
assets.
LIQUIDITY:
The second quality of a mutual fund is its liquidity, because at any moment a person can sell
their shares at net asset value (open-ended) and can get money back.

PROFESSIONAL MANAGEMENT:
Professional management is also one of the important advantages of the mutual funds.
Mutual funds have their own experts who can professionally manage the portfolio in the best
way.
LOW INVESTMENT:
Mutual fund can be very helpful for those investors who have small amount of money for
investment. Mutual funds provide opportunities for those investors, and they can invest a
minimum amount in these funds.
LOW TRANSACTION COST:
The transaction cost is low because a mutual fund invests collectively large number of
funds in different securities. If individual investors buy and sell shares than the value of the
transaction is high.

THE ISLAMIC FINANCE INDUSTRY:
The Islamic finance industry over the past three decades has diversified itself from the
banking to the other sectors as well and now it includes the institutions such as the Islamic banks,
the Islamic insurance companies and the Islamic mutual funds. The growth has been impressive
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over the last decade, despite of the crisis that hit the global financial markets during this period
of time.
The Islamic mutual fund industry has also enjoyed the success in attracting the
investment funds from the Muslim investors, as well as from the non-Muslim investors because
of their impressive results. The Islamic mutual fund industry has grown by leaps and bounds
throughout the world and in Pakistan as well. In PakistanCurrently, there are 15 AMCs (Asset
Management Companies) of the Islamic mutual funds. There are about 29 open- end funds,
which are Islamic in the open category end funds. In addition, there are 18 voluntary pension
funds and the one closed -ended fund as well.
Islamic principles compliment the growth gross capital formation or productive
capacity of the economy through the promotion of entrepreneurship in the manufacturing
sector.Taking the business risk is the basis of the Islamic economics. Effective institutions are
required to comply the financial intermediation that promote an entrepreneurial culture, and get
around with it.
There are currently no Islamic Investment Bank in Pakistan and not Islamic venture
capital fund. Mudarabah companies that have been around since the 1980s, are in such dubious
ways that even the scholars of Islamic Sharia counseling mutual funds consider investing in these
companies are not relevant from the point of view of the Islamic principles . In the voluntary
pension funds, there are as many as the number of Islamic funds conventional means.
It is to show that, in addition to the banking, there is so much space in the alternative
financial institutional structure where the Islamic institutions can lead, not follow. The key to
that is equity based financial intermediation capture currently debt-based financial
intermediation, which is the circularly associated with banking. But, while Islamic banks
maintain the higher spreads compared to the conventional banks and have most of their products
related to interest rates, there is still a long way.

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THE RISE OF THE ISLAMIC MUTUAL FUNDS:
Although in general the mutual fund industry has expanded at a remarkable 52 percent
for the fiscal year ended in June 2012, its growth has decreased by 10.4 percent for the 10
months ending April 30, 2013.
Much of the decline can be attributed to a reduction of the 14.9 per cent in the assets
under management (AUM) of conventional mutual funds, against the positive growth of 17.4
percent in those Islamic mutual funds.
With the Islamic investment funds accounted for more than 17 percent of the total
industry in mutual funds, a total of 39 funds and more than Rs61 billion AUM , it is realistic to
say that , if you have not created a segment , it has been steadily picking up the momentum.
Although the Islamic funds continue to perform steadily butthere are number of problems
to spoil its way.
Lack of the awareness of the mutual funds and the understanding of Shariah investments
and their benefits, industry prevented from performing to its growth potential. General
impression that prevails in that profit from the Islamic funds is less than that offered by their
conventional counterparts.
Another important question arises in the connection with the non- standardization and
lack of the uniform interpretation of Sharia councils through because of the difference in the
sects, along with the fragmentation of these cards on individual institutions.
This often leads to the conflicts between different views of the Sharia scholars, and leads
to a lengthy approval process of the new products that will be launched.
While Shariah Advisory Council is under the development by the Commission ofthe
Securities and Exchange Commission of Pakistan (SECP), there was no separate regulatory body
to oversee the Islamic mutual funds industry until now.
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Another serious problem facing by the industry is the lack of variety of the financial
instruments in the mutual funds, which hinders investment and product diversification of Islamic
asset management companies (AMCs).
Currently, Islamic investment funds face the limited investment destinations, especially
for the short-term debt securities, as the majority of the short-term debt instruments in the market
are interest.
In this respect, the support from the regulatory authorities to implement and to improve
asset classes such as the real estate investment trusts,the private equity funds and other liquid
products that are needed to expand the scope of Islamic funds industry.
In addition, a limited distribution network constrains the growth of Islamic mutual funds
and their accessibility to retail investors. There is lack of the interest by banks for the sale of
mutual funds.
SO WHY ISLAMIC FUNDS:
There are the two reasons that why you should go with the Islamic mutual funds.
1. It provides arelatively high rate of return in the private sector.
2. It is Halal.

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Alfalah GHP INVESTMENT MANAGEMENT LIMITED:

The Alfalah GHP Investment Management Limited Is authorized by the Securities and
Exchange Commission of Pakistan (SECP), pay services provide the Asset Management and the
Investment Advisory pay retail , the Business and Institutional Investors ACCORDING NBFC
Rules 2003 .

Bring the merger with the ALFALAH GHP relationships significant force of IGI Funds
with the customer and the fund management. IGI Funds Limited merged with and IN Alfalah
GHP Investment Management Limited and the Rights of All the Organizations manage the
placement of the Collective Separated and Accounts (SMA) sera transferred to the Alfalah GHP
Investment Management Limited.

Alfalah GHP vise various float of mutual funds in time period of June who seek to invest
in various asset classes such as the equities, money market, etc.

MISSION:
Mission of Alfalah GHP Income Multiplier Fund is to provide sustainable returns,
consistent and inflation protected investment in instruments and Income Money Market

VISION:
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Vision of Alfalah GHP Income Multiplier Fund is to impose Investment vehicle of
setting for Investors who are seeking sustainable returns, consistent and inflation protected on the
long term through investments in the securities Income and the Money Market and other
securities.
The Board of Directors of Management Company:
Mr. Abdul Aziz Anis
Mr. Shahid Hosain Kazi
Mr. Hanspeter Beier
Mr. Shakil Sadiq
Mr. Shahab Bin Shahid

The Audit Committee:
Mr. Shahab Bin Shahid
Mr. Shahid Hosain Kazi
Mr. Shakil Sadiq

The Fund Manager:
Mr. Zeeshan Khalil

The Trustee:
Central Depository Company of Pakistan

The Bankers to Fund:
Bank Alfalah Limited
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Faysal Bank Limited

The Registrar:
Alfalah GHP Investment Management Limited

The Distributor:
Bank Alfalah Limited

The Funds under Management:
The ALFALAH GHP VALUE FUND (AGVF)
TheALFALAH GHP INCOME MULTIPLIER FUND (AGIMF)
TheALFALAH GHP ISLAMIC FUND (AGIF)
TheALFALAH GHP ALPHA FUND (AGAF)
TheALFALAH GHP CASH FUND (AGCF)

ABL Asset Management Company Limited (ABL AMC):
ABL AMC is a subsidiary of Allied Bank Limited (ABL). It has a paid up capital of Rs.
500 million,it is the second startup Pakistani asset managementcompany.
The ABL AMC plans is to become world class Asset Management Company, to provide
innovative solutions for the managing assets for its institutional and the retail investors.
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The company is authorized to undertake the asset management services and the
investment advice and is planned to establish the highest standards of integrity and the quality
service through the professional management of mutual funds.
PROFILE OF DIRECTORS:
Sheikh Mukhtar Ahmed:
Sheikh Mukhtar Ahmed has begun his professional career after migrating from the India
at the time of the independence of Pakistan in the year 1947 and contributed to the industrial and
commercial growth in Pakistan throughhis entrepreneurial skills and the business acumen. He
has 55 years of experience in the creation and the successful management of the various
industrial and the financial companies.. He joined the Allied Council Bank in 2004 and the
Council ABLAMC in 2008.
Khawaja Mohammad Almas:
Khawaja Mohammad Almas began his career with Allied Bank in the year 1983 and has
29 years of the banking experience. He has completed MBA from IBA Punjab University in the
year 1982 and professional qualification (DAIBP) in the year 1986. Now he is the Chief
Commercial & Retail Banking Group ABL Group.
Mr. Jawaid Iqbal:
Mr. Jawaid Iqbal CFA is the head of Corporate and Investment Banking Group at the
Allied Bank Limited. He has done Master of Business Administration (MBA) degrees from
Charter Institute banker, UK and CFA from CFA Institute, USA. He is now the president of the
CFA Association of Pakistan.
Mr. Farid Ahmed Khan, CFAis theCEOof the fund.
Syed Khalid Husain is the Head of Business Development.
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Mr. Saqib Morning ACA, APA is the Chief Financial Officer and the Company
Secretary of the fund.
Mr. Muhammad Imran is the Chief Investment Officer of the fund.
Mr. Mubeen Ashraf Bhimani is the Chief Internal Auditor of the fund.
Syed Mehdi Hassan is the Head of RS & Operations of the fund.
Mr. Wali Muhammad Hassan is the Head of Information Technology of the fund.
Mr. Abid Jamal is the Director of Research of the fund.
Mr. Hammad Ali Abbas is the Senior Research Analyst of the fund.
Mr. Kamran Aziz CFA is the Fund manager of the fund.

3) AKD INVESTMENT MANAGEMENT LIMITED (AKDIML)
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AKDIML is the maximum value of the investment services provider in Pakistan. They
currently manage one of the oldest mutual funds in the country. They have several innovative
financial instruments to be launched. They specialize in the custom design for high net worth,
client investment plans.
MISSION:
Mission of AKDIML is to provide the investors with access to the investment
opportunities through the introduction of the innovative financial products, offering performance
and to provide consistent risk adjusted return.
COMPANY:
AKDIML is a subsidiary of Aqeel Karim Dhedhi Securities (Private) Limited (AKD). They
focused on the enabling customers to enjoy the experience of fund managers. The management
team manages a fund of the oldest mutual funds Golden Arrow in the market and also developing
a range of advanced financial instruments.
PARENT:
AKD Securities is the leading securities company providing the financial services to a large and
diverse group of the institutional clients and the foreign and local individuals. It is the broker top
sales and trading and it is a leader in the breeding and venture capital in the underwriting, market
making, and in the mergers and acquisitions in the country.
PRODUCTS AND SERVICES:
Mutual Funds:
AKD Income Fund (AKDIF):
The AKD Income Fund is essentially a dedicated fund that focuses primarily on an asset
class that is fixed income securities and instruments.

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Management of the company:
Faisal Bengaliis theCEOof the company.Bengali has the Master in Business
Administration from Rice University, USA.
AKD Group:
It is a dynamic group not only provides the financial services to the entire range, but it
also has interests in other sectors.
FINANCIAL SERVICES:
AKD Securities (Pvt) Limited
The Leading brokerage house in country. Trades about 8 % of the daily volume traded on
the KSE.
The Recipient of Certified Financial Analysts Association of Pakistan (CFAAP) Award
in the year 2006 for the Best Securities House in Pakistan.
It is the pioneers in the providing a platform for online trading through its subsidiary,
It is the pioneers of the venture capital in Pakistan launched in 2000.
It is the First NBFC license Venture Capital Company in Pakistan.

Distribution Network:
AKD Investment Management Ltd.
AKD Securities
Bank of Punjab
Interbank
Access to Financial Services (Pvt ) Ltd

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1) MEEZAN ISLAMIC INCOME FUND

Al Meezan Investment Management Limited (Al Meezan):
The Al Meezan Investment Management Limited (Al Meezan) is dedicated to providing
investment solutions according to Sharia Meezan Bank (MBL) and Pak Kuwait Investment
Company (PKIC) is a joint venture. They have open and closed-end mutual funds; provide
investment advisory and the discretionary management of institutional as well as the high net
worth individuals (HNWIs) files, both developing and managing floats, specializes in the
investment.

Al Meezan was established in the year of 1995 as a joint venture between,
Pakistan Kuwait Investment Company (PKIC),
National Investment (Trust) Limited ,
Vision:
Vision of the company is to promote professional fund management through
development and implementation of Shariah compliant investment products, policies and
practices designed to meet the investment objectives of the investors.

Mission:
Mission of the company is to be the leading Shariah compliant asset management
company by providing quality service to the institutional and individual investors utilizing
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modern techniques of the portfolio management, proactive asset allocation and the prudent
security selection by maintaining high standards of the ethical and professional conduct.

Board of Directors:

The Board of Directors comprises of the renowned professionals and is chaired by Mr. Ariful
Islam, who is the Chief Operating Officer of Meezan Bank Limited. The Board members
include:

Mr. Ariful Islam (Chairman):
Mr. P. Ahmed: Head of Product Liability (Asset Management and Insurance)
Mr. Salman Sarwar Butt
Mr. Tasnim Ul Haq Farooqui
Mr. FAROOQUI L.L.M from Karachi is University (1986).

Shariah Board:

The company is veryspecific about providing Halal and Riba-Free investment opportunities.
For all the operations and investments, they draw Shariah Advisory from the Shariah
Supervisory Board of the Meezan Bank Limited, including the following Islamic scholars:
Justice (Retd.) Mufti Muhammad Taqi Usmani (Chairman)
Dr. Imran Ashraf Usmani (Pakistan)
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Dr. Abdul Sattar Abu Guddah (Saudi Arabia)
Sheikh Essam M. Ishaq (Bahrain)
Meezan Islamic Income Fund:
The Meezan Islamic Income Fund (MIIF) is the Pakistans first Shariah Compliant open
end mutual fund which is in the category of Income Fund.
The objective of this MIIF is to provide Halal and the consistent stream of income with
long-term capital preservation in a Shariah Compliant manner. It also provides the potential to
the investors for capital gains as well as the regular income by investing in a diversified portfolio
of the good quality Islamic Instruments such as Sukuks, Certificate of the Islamic Investments,
Musharika and the Morabaha instruments, the Shariah-compliant spread transactions, and other
Islamic income products.
The MII Fund meets the requirement of a large number of investors both for institutional
and individual, who have desire of Shariah-Compliant investment opportunities but also want to
avoid the risk of direct exposure to the stock market.
The Features of MIIF are:
It provide capital preservation through practical fund management,
It is Halal and consistent stream of income which is strictly monitored and approved by
the Shariah Advisors,
It provides an opportunity to start investment with minimum Rs. 5,000/ and then invest at
a regular intervals with subsequent investment amount as low as Rs. 1,000/- .
Its units are readily cashable throughout the year,
Investment in MIIF enables a person to get tax benefit up to Rs. 100,000/- in the case of
salaried person or up to Rs 125,000/- in the case of non-salaried person on the
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investmentsup to Rs. 500,000/- under the applicable tax laws, if the investment is held for
a period of one year.
It provides diversification of the portfolio resulting in lower risk and competitive return
on investment.
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IGI ISLAMIC INCOME FUND:
It is established in the year 2006, it is a company of the IGI Financial Services and
Packages Limited group. Company is authorized by the Securities and Exchange Commission of
Pakistan (SECP) to provide the investment advisory services and the asset management under
the NBFC Rules, 2003.

IGI Funds is committed to providing the quality services to the institutional and retail
clients using the modern techniques of the portfolio management, asset allocation and the
security selection, by maintaining high standards of ethics and professional conduct.

Pacra has assigned Management Quality Rating of AM3 + with a stable outlook to the
IGI Funds Limited, which shows that the IGI Funds Limited meets the high investment
management norms and standards of the industry.

VISION:
Vision of IGI Funds Limited is to be a trusted provider of solutions and services for the
fund management focus on the best serving the interests of clients' investments.

MISSION:
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Mission of the company is to provide solutions to the investment needs of the customers
who adhere to the highest ethical standards by meeting the long-term goals and the short-term
needs, to attract and retain the talent that shares the core values of integrity,and excellence.

Values:
Integrity,
Professionalism,
Focus on Sustainable Growth.

The Board of Directors:
Javed Hamid:
Chairman IGI Funds Limited

Muhammad Asif Saad
(Independent)
Director

Abid Naqvi (Independent)
Director

Khalid Yacob
Director
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Alman A. Aslam (Independent)
Director

Corporate Partners:

Trustee:
IGI Funds Limited has appointed the Central Depository Company of Pakistan Limited
(CDC) to act as a trustee for the existing funds in the 2003 regulations, NBFC.

Registrar:
For all the open-ended funds offered by IGI Funds Limited Registrar will manage the in-house
services and strives to provide support services to the unprecedented unity.
Auditors;
KPMG Taseer Hadi & Co is the external auditors of all five funds.
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IGI offer the following Funds:
IGI Aggressive Income Fund
IGI Islamic Income Fund
IGI Stock Fund
IGI Income Fund
IGI Money Market Fund

IGI Islamic Income Fund:
The IGI Islamic Income Fund seeks, through a combination of the current income and
long term capital appreciation, which provide a stable return with a reasonable investment risk in
a Shariah compliant manner.
The investment policy of the Fund is to select instruments from within the specified
Shariah compliant Permitted investments and invest in the Offer Document asset classes.
The Pakistan Credit Rating Agency (PACRA) has assigned a (A + (f)) rating to IGI Islamic
Income Fund.
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3) DAWOOD ISLAMIC INCOME FUND
Dawood Capital Management Limited (DCM):

The Dawood Capital Management Limited (DCM) commitment is to bring the best social
responsibility priorities in Pakistan based leading asset Management Company.

It has 25% stake in Asian Development Bank (ADB) was established jointly by the truly
international, and they are development oriented. The DCM venture capital financing for
Pakistan Venture Capital Limited (PVCL), started business operations on the 1 January of 1993
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and the first Dawood Group took over the management in the year 1999 and has worked in
collaboration with the ADB.

The DCM Asset Management and the Investment Advisory Company NBFC
(Establishment and Regulations)Rules 2003 under the Securities and Exchange Commission of
Pakistan (SECP) has both license in good standing.

The DCM has always been a pioneer and became the country's 1st listed asset
management company. Today, the have company open-end and closed-end Dawood Income
Fund and the First Dawood Investment Fund managers, and soon the David Cash Fund is
launching an open end.

The DCM always with Dawood Global Foundation BABYFUND through a partnership
of women and the children through the work of its container was given back to the community a
terrific and was LADIESFUND initiatives.

Mission/Vision Statement:
Mission and vision of the company is to be the Prominent Funds Manager That Adds
Value for the Stakeholders through an Innovative and Responsible Management.

Board of Directors:

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Mrs. Shafqat Sultana:
Independent Director & Chairperson
Ms. Tara Uzra Dawood:
Chief Executive Officer
Mr. S. Shabahat Hussain:
Director

DAWOODPERKS:
The DCM investors are part of the family. The DCM family has now grown to include the joint
promotions with various enterprises including the boutiques, salons, book stores and an array of
the products.
DCM Shariah Division Introduction:
The DCM Shariah Division is an independent structure within the asset management
company to provide a world class specialized shariah investment services to the clients. These
include personalized Shariah Investment Advisory Services as well as the mutual funds including
the Dawood Islamic Fund.
The DCM CEO Tara Uzra Dawood minored in the Shariah finance and legal systems as
part of her Doctorate in Juridical Sciences from the Harvard Law School. All the investments
and elements of this Shariah Division are also overseen by the well-known scholar on the
Shariah Board.
Shariah Board
Mufti Muneeb ur Rehman (Chairperson)
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Mufti Syed Sabir Husain
Mufti Syed Zahid Siraj

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VERTICAL/ COMMON SIZE ANALYSIS AND THE HORIZONTAL /
TREND ANALYSIS:


BALANCE SHEET OF ALFALAH:
Common Size Analysis
Trend Analysis
INCOME STATEMENT ALFALAH:
Trend Analysis:

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Alfalah GHP Investment Management Company Limited.

Income Multiplier Fund Balance Sheet Common size Analysis:

TableA-3.1: Balance Sheet Common Size Analysis of Alfalah
ASSETS 2010 2011 2012
Bank Balances 11% 5% 10%
Investments 87% 85% 82%
The Profit Receivables 1% 9% 7%
The Security deposits. &The other Receivable. 1% 1% 1%
The Prelim. Exp. & The Floating costs 0% 0% 0%
Total Assets 100% 100% 100%
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LIABILITIES
The Payable to The Alfalah GHP IM Ltd. 13% 6% 6%
Payable to The CDC, Pakistan 2% 1% 1%
Payable to The SECP 5% 6% 4%
The Accrued Exp &The other Liabilities 79% 87% 88%
Total Liabilities 100% 100% 100%

The Common Size analysis of the balance sheet of Alfalah Income Multiplier Funddepicts
different scenario over different time period. In Financial Year of 2010 the total investments
were 87% of the total asset value which went slightly down ward over the next two periods of
FY2011 and FY2012 to 85% and 82% respectively.

Bank balance of Alfalah Income Multiplier Fund decreased from FY 2010 where it
was about 11% of the total asset to 5% in FY2011 and then increased to 10% in FY 2012.

Total Liabilities of the company increased from FY 2010 where it was about 0.8% of the
total asset to 1.6% in FY 2011 and it also increased in FY 2012 which is about 1.8% of
the total assets value.

Net Assets of the company decreased from FY 2010 where it was about 99.2% of the
total asset value and it increased to 98.4% in FY2011 and it again slightly decreased in
FY 2012 to 98.2% of the total asset value.

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Income Multiplier Fund Balance Sheet Trend Analysis:

TableA-3.2: Balance Sheet TrendAnalysis of Alfalah
ASSETS 2010 2011 2012
Bank Balances 100% -79% 88%
Investments 100% -53% -13%
The Profit Receivables 100% 324% -33%
The Security deposits. &The other Receivable. 100% -8% -28%
Prelim. Exp. &The Floating costs 100% -51% -
The Receivables against The Sale & Maturity of The Investments
Total Assets 100% -51% -11%
LIABILITIES
Payable to The Alfalah GHP IM Ltd. 100% -56% 10%
Payable to The CDC, Pakistan 100% -52% 0%
Payable to The SECP 100% 16% -28%
The Accrued Exp & other Liabilities 100% 8% 2%
Total Liabilities 100% -2% 1%
NET ASSETS 100% -52% -11%
No. of The Units in Issue 100% -53% -4%
The Net Asset Value per Unit 100% 2% -7%

The Trend Analysis of the balance sheet of Alfalah Income Multiplier Funddepicts different
scenario over different time period. A positive trend has been noted in the Profits Receivables of
the company in the Financial Year of 2011 shows a huge increase of 324% and in 2012 it shows
a slight decrease of 33%.
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Bank balance of Alfalah Income Multiplier Fundhave shown a negative trend in the FY
2011 with a decrease of 79% but showed a positive trend in FY2012 by registering an
increase of 88% in that year.

Total Assets of the company have shown a negative trend as well for the FY 2011 which
decreased by 51% and the downward trend continued in the next year but the magnitude
of the decrease reduced to 11%.

Total Liabilities of the company have shown a mixed trend in both years, in the FY 2011
it decreased by 2% and in Fy2012 total Liabilities increased by 1%.

Net Assets of the companyhave shown a negative trend in the FY 2011 by decreasing by
52% as well as same trend in FY 2012 but decline reduced to 11%.

Income Multiplier Fund Income Statement Trend Analysis:

TableA-3.3:Income StatementTrendAnalysis of Alfalah
INCOME 2010 2011 2012
Capital gain/loss on The investment sale 100% -83% 72%
The Income from The Govt. Securities 100% -18% 57%
Income from reverse transaction. 100% 491% -60%
Income from The Term Fin. Cert./Sukuk 100% -23% 149%
The Profit on bank accounts 100% -18% -75%
Reversal in invest value 100% 2794% 61%
The Unrealized inc/dec in The invest value 100% 179% -234%
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The Impairment in Held for sale The invest 100% 301% -247%
Total Income 100% -322% -157%
EXPENSES
The Salaries of Alfalah GHP IM Ltd. 100% 16% -28%
Salaries of CDC 100% 18% -18%
The Annual fees - SECP 100% 16% -28%
Brokerage & other costs 100% -38% -79%
Bank Charges 100% -86% 73%
The Auditor's salaries 100% 31% -15%
Amortization 100% 101% -4%
Legal Charges 100% 296% -59%
Printing charges 100% 69% -17%
Listing Fees etc. 100% 88% -14%
Worker Welfare Fund 100% -93%
The Total Operating Expenses 100% -17% -19%
Net Operating Loss 100% 95% -1406%
Net gain/loss on unit sales/redem. 100% 176517% -98%
The Net Income before Tax 100% -181% -199%
Taxation
The Comprehensive Income for the year 100% -181% -199%

The Trend Analysis of the Income statement of Alfalah Income Multiplier
Fundillustratesvarious scenarios over different time period. A mixed trend has been noted in the
term finance certificate of the company in the Financial Year of 2011 it saw a slight decrease of
18% and in FY2012 its value increased by 57%.

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Bank Balance of Alfalah Income Multiplier Fundhad shown a negative trend in the FY
2011 and 2012, which decreased by 18% in 2011 and 75% in 2012.

Total Income of the company has shown a discouraging trend in the FY 2011which
decreased by 322% and downward trend continues in FY2012 as income again decreased
by 157% in that year.

Total expenses of the company had shown a positive trend in the FY 2011which
decreased by 17% and in FY2012 it showed a decreasing trend too and it decreased by
19% in that year.

Net income of Alfalah Income Multiplier Fundhad shown a negative trend in both the
FY 2011and FY 2012 which decreased by181%and199% respectively.

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TREND ANALYSIS:


BALANCE SHEET OF ABL:
Trend Analysis
INCOME STATEMENT ABL:
Trend Analysis:
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ABL Assets Management Company Limited.

ABL Income Fund Balance Sheet Common Size Analysis:

TableA-1.1: Balance Sheet Common size analysis of ABL
ASSETS 2010 2011 2012
TheSecurity deposit. &Theother Receivable. 0% 0% 0%
ThePrelim. Exp. & Floating costs 0% 0% 0%
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Receivables against TheSale & Maturity of Investments

LIABILITIES
ThePayable to AMC 11% 7% 17%
ThePayable to CDC, Pakistan 1% 0% 1%
Payable to SECP 5% 4% 10%
TheDividend Payable 64% 55% -
Payable against TheRedemption 18% 3% -
TheAccrued Exp & other Liabilities 1% 30% 71%

In the above shown table, the Vertical or Common size analysis of balance sheet of ABL
Income Fund is calculated in which each item of the balance sheet is shown as a proportion of
the specific component of the same balance sheet. The vertical analysis of the balance sheet of
ABL Income Fund depicts different scenarios over different time periods.In Financial Year
2010 the total investments were about 91% of the total assets which went slightly down ward
over the next period of 2011to 79% and in FY2012 it was calculated77% of the total assets.

Balance with the banks of ABL Income Fundshowed an increase from FY 2010 where it
was about 8% of the total assets to 20% in FY2011 and continued upward trend in FY
2012 and is about 22% of the total assets value.
Total Liabilities of the company increase in FY 2010 from 1.70% of the total asset to
2.21% of total assets value in FY2011 however it decreased in FY 2012 and its value
showed downward trend and changed to 10.1% of the total assets value.

Net Assets of the company slightly decreased from FY 2010 where it was about 98.3% of
the total assets value to 97.8% in FY2011 and it again increased in FY 2012 and is about
98.9% of the total assets value.
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ABL Income Fund Balance Sheet Trend Analysis:
TableA-1.2: Balance Sheet Trend analysis of ABL
ASSETS 2010 2011 2012
Bank Balances 100% 52% -17%
Investments 100% -49% -25%
Profit Receivables 100% -66% -26%
TheSecurity depo. & other Recei. 100% 775% 1436%
Prelim. Exp. & Floating costs 100% -31% -45%
TheReceivablesagainst Sale &TheMaturity of Investments
Total Assets 100% -41% -23%

LIABILITIES
Payable to AMC 100% -49% -16%
ThePayable to CDC, Pakistan 100% -56% -15%
Payable to SECP 100% -30% -18%
Dividend Payable 100% -34% -
ThePayable against Redemption 100% -88% -
TheAccrued Exp &Theother Liabilities 100% 1840% -16%
Total Liabilities 100% -24% -65%
NET ASSETS 100% -42% -22%
TheNo. of Units in Issue 100% -42% -23%
TheNet Asset Value per Unit 100% 0% 0%

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Horizontalor Trend Analysis of balance sheet of ABL Income Fundisemployed to calculate the
particular trend of the balance sheet over different time period.For calculating the trend we have
taken FY2010 as base year and any changes over time in all items of the balance sheets of
subsequent years were calculated using the base year and trend in reference to base year has been
calculated which is shown as above. The Trend Analysis of the balance sheet of ABL Income
Fundportraysvarious scenarios over different time period.

Balance with the banks of ABL Income Fund have shown a positive trend in the FY
2011 which increased about 52% but it have shown a negative trend in the FY 2012 when
it decreased about 17% .
Total Assets of ABL Income Fundhad shown a negative trend in the FY 2011 and 2012
which decreased about 41% and 23% in FY 2011 and FY 2012 respectively.
Total Liabilities of the company had also shown a negative trend in the FY 2011 and FY
2012 as it showed a decline of 24% and 65% in FY2011 and FY2912 respectively.
Net Assets of ABL Income Fund had shown a negative trend too as its values shown a
decrease of 42% in FY 2011 and 22% in FY2012 respectively.

ABL Income Fund Income Statement Common Size Analysis:

Table A-1.3:Income statement Common size analysis of ABL
INCOME 2010 2011 2012
Capital gain/loss on investment sale 0% 0% 2%
Income from TheGovt. Securities 23% 57% 67%
Income from TheTerm deposit. Receipts 42% 25% 10%
Income from Thecertificate of Invest. 9% 0% -
Income from C.O.D's 0% 2% 0%
Income from The Letters of placement 8% 4% 1%
Income from The reverse repur. transac. 5% 6% 1%
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Income from TheTerm Fin. Cert./Sukuk - 0% 8%
Profit on Thebank accounts 1% 6% 7%
Dividend Income - - 3%
Held for trading 0% 0% 0%
Total Income 100% 100% 100%

EXPENSES
Salaries of AMC 12% 12% 11%
TheSalaries of CDC 1% 1% 1%
Annual fees SECP 1% 1% 1%
Brokerage &Theother costs 0% 0% 0%
Bank Charges 0% 0% 0%
Auditor's salaries 0% 0% 0%
Amortization 0% 0% 0%
ThePrinting charges 0% 0% 0%
Listing Fees etc. 0% 0% 0%
Rating Fees etc. 0% 0% 0%
Other expenses 0% 0% 0%
TheTotal Operating Expenses 14% 14% 15%
Net Operating Income 86% 86% 85%
Net gain/loss on The unit sales/redem. -3% -9% 5%
TheWorker's welfare fund 0% -2% -2%
Net Income before Tax 82% 76% 88%
Taxation 0% 0% 0%
TheComprehensive Income for the year 82% 76% 88%
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The TrendAnalysis of the Income Statement of ABL Income Fund shows different scenarios
over different time period.In Financial Year of 2010 the total income from Govt. securities
was23% of the Total Income which gradually increased over the next two periods of 2011to 57%
and 67% in FY2012respectively.

The ABL Income Fund did not pay the dividends in FY2010 and FY 2011. It started
paying dividends in FY2012 in which it was 3% of the Total Income from the fund.

Unrealized gain on the re-measurement of the investments of Al-Meezan Islamic income
fund increased from FY 2010 where it was about 65.3 percent of the total income to 87.3
percent in FY 2011 and it also increased in FY 2012 which is about 97.4 percent of the
total income.

Total expenses of ABL Income Fund was 14% in FY 2010 whereas it continued to
remain at the same level of 14% until FY2011 and then it slightly increased to 15% of the
total Income of the fund in FY2012.

The Net Income for the financial years 2011 of ABL Income Fund was 82% of the Total
Income and in FY2011 it decreased and was 76% of the total income. However, in
FY2012 it rose again to 88% of the total income of that year.

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ABL Income Fund Income StatementTrend Analysis:

Table A-1.4:Income statementTrendAnalysis of ABL
INCOME 2010 2011 2012
Income Thefrom Govt. Securities 100% 82% 82%
Income Thefrom Term deposit. Receipts 100% -56% -86%
Income Thefrom certificate of Invest. 100% -98%
Income Thefrom C.O.D's 100% 289% -32%
Income Thefrom Letters of placement 100% -64% -88%
Income Thefrom reverse repur. transac. 100% -2% -84%
Profit on bank accounts 100% 231% 226%
Held for trading 100% 73% 132%
Total Income 100% -26% -37%
EXPENSES
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TheSalaries of AMC 100% -30% -43%
Salaries of CDC 100% -33% -49%
TheAnnual fees SECP 100% -28% -41%
TheBrokerage & other costs 100% 51% 141%
Bank Charges 100% -31% -31%
Auditor's salaries 100% -9% -1%
ThePrinting charges 100% -14% -58%
Rating Fees etc. 100% 6% 14%
TheOther expenses 100% 2133% 4067%
Total Operating Expenses 100% -29% -33%
TheNet Operating Income 100% -25% -38%
TheNet gain/loss on Theunit sales/redem. 100% -95% 186%
TheWorker's welfare fund 100% -976% -950%
Net Income before Tax 100% -32% -33%
Taxation 0% 0% 0%
TheComprehensive Income for the year 100% -32% -33%

The Trend Analysis of the Income statement of ABL Income Fund shows different scenario
over different time period. A positive trend has been noted in the Income from the Govt.
securities for the company in the Financial Years of 2010, 2011 and 2012, which grows at a rate
of more than 80% for both of the FY2011 and FY2012.

Dividend income of ABL Income Fund had shown no trend at all because the company
did not paid any dividend in FY2010 and FY2011. It started to pay dividend in FY2012
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for the first time in its history which is a good sign of company growth and have positive
impact on it s image among investors.

Profits from bank accounts a significant increase in FY2011 and FY2012 as compared
with FY2010. The company had shown a positive trend in the FY 2011 and its bank
accounts profits increased by 231% and in FY2012 its income from bank accounts rose
by 226% respectively.

Total Income of ABL Income Fundhad shown a downward trend in the FY 2011which
decreased by 26% and 37% in FY 2012 respectively.

Total expenses of the company have shown anencouraging trend in the FY 2011 lowered
by 29% and 33% in FY2012 respectively.

Net income of ABL Income Fundhad shown a negative trend in the FY 2011which
lowered by 32% and which further lowered by almost the same ratio by 33% in FY2012.

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TREND ANALYSIS:

3) AKD INVESTMENT MANAGEMENT LIMITED

BALANCE SHEET OF AKD:
Trend Analysis
INCOME STATEMENT AKD:
Trend Analysis:

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AKD Investment Management Company Limited.

AKD Aggressive Income Fund Balance Sheet Common Size Analysis:

TableA-2.1: Balance Sheet Common Size Analysis of AKD
ASSETS 2010 2011 2012
Security depo. &The other Recei. 1% 1% 1%
Prelim. Exp. &The Floating costs 0% 0% -
Receivables against Sale &The Maturity of The Investments 29% 7% 12%
Recei. against MTS 0% 3% 29%
LIABILITIES
Payable to The AKD IMC Ltd. 39% 5% 77%
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Payable to The CDC, Pakistan 2% 1% 0%
Payable to The SECP 11% 3% 2%
Payable against TheRedemption 16% 71% 0%
Accrued Exp &Theother Liabilities 32% 20% 20%

The Vertical analysis of the balance sheet of AKD Aggressive Income Fund depicts different
scenario over different time period.In Financial Year of 2010 the total investments were about
62% of the total assets which went upward over the next period of FY2011 it was about 81%
while again in FY2012 in goes down to 48% of the total assets value.

Bank Balance of AKD Aggressive Income Fund showed slight downward trend,in FY
2010 it was about 7% of the total asset to 6% percent in FY2012 and it also decreased in
FY 2012 too and was 5%.

Total Liabilities of the company increased from FY2010 where it was about 0.8% of the
total asset to 2.4% in FY 2011 and it further increased in FY2012 to 3.8% of the total
asset.

Net Assets of the company slight decrease from FY 2010 where it was about 99.2% of
the total asset to 97.6% in FY2011 and it again decreased very slightly in FY 2012 and
net assets were about 96.2% of the total asset.


AKD Aggressive Income Fund Balance Sheet Trend Analysis:

Table A-2.2: Balance Sheet Trend Analysis of AKD
FMS

78

ASSETS 2010 2011 2012
Bank Balances 100% -23% -2%
Investments 100% 15% -38%
TheProfit Receivables 100% -2% 149%
Security depo. &Theother Recei. 100% 11% 0%
Prelim. Exp. & Floating costs 100% -57% -
Receivables against TheSale & Maturity of Investments 100% -78% 68%
Recei. Against TheMTS 100% 1344900% 851%
Total Assets 100% -12% 5%
LIABILITIES
Payable to TheAKD IMC Ltd. 100% -64% 2338%
Payable to TheCDC, Pakistan 100% -21% 16%
Payable to TheSECP 100% -18% -3%
ThePayable against Redemption 100% 1090% -100%
Accrued Exp &Theother Liabilities 100% 65% 70%
NET ASSETS 100% -14% 3%
No. of TheUnits in Issue 100% -17% 1%
TheNet Asset Value per Unit 100% 4% 2%

The Trend Analysis of the balance sheet of AKD Aggressive Income Fund depicts different
scenario over different time period. An overall positive trend has been noted in the Profit
Receivables, in the Financial Year of 2011 in showed slight decrease of 2% but in FY 2012 there
is a huge positive increase trend and Profit Receivables increased by 149%.

FMS

79

Bank Balance of AKD Aggressive Income Fundhave shown a negative trend in the FY
2011 it decreased by 23% and its downward trend slowed in FY2012 and it slightly
decreased by 2%.
Total Assets of the company had shown a negative trend in the FY 2011 with a decrease
in total assets value of 12% but inFY2012 total assets value increased by 5%.
Total Liabilities of the company have shown a negative trend in the FY 2011& 2012and
in FY 2011 its total liabilitiesincreased by 168% while in FY2012 its total liabilities
increased by 66%.
Net Assets of AKD Aggressive Income Fund have shown a negative trend in the FY
2011 with a decrease in value of 14% but in FY 2012 it has shown a positive trend with
an increase of 3% in the value of net assets.

AKD Aggressive Income Fund Income Statement Common Size Analysis:

Table A-2.3: Income StatementCommon Size Analysis of AKD
INCOME 2010 2011 2012
Capital gain/loss on investment sale -2% 0% 0%
Income from Govt. Securities 2% 15% 17%
Income from Term deposit. Receipts 4% 3% 32%
Income from certificate of Invest. 32% 11% 0%
Income from Letters of placement 4% 6% 0%
Income from Term Fin. Cert./Sukuk 77% 52% 46%
Profit on bank accounts 8% 8% 6%
Unrealized inc/dec. on re-evaluation of invest. -25% 4% -2%
Total Income 100% 100% 100%
EXPENSES
Salaries of AKD IMC Ltd. 14% 11% 12%
FMS

80

Salaries of CDC 2% 1% 1%
Annual fees - SECP 1% 1% 1%
Brokerage & other costs 0% 0% 0%
Legal Charges 0% 0% 0%
Printing charges 0% 0% 0%
Worker Welfare Fund 1% 1% 1%
Impairment loss on Invest. 9% 16% 1%
Total Operating Expenses 29% 33% 24%
Net Operating Income 71% 67% 76%
Net gain/loss on unit sales/redem. -12% -9% -4%
Comprehensive Income for the year 68% 71% 77%

The vertical analysis of the Income Statement of AKD Aggressive Income Fund portrays
different scenario over different time period.In Financial Year of 2010 the total Profit on the
Govt. Securities was 2% of the total income which increased over the next period of 2011to 15%
and in FY2012 it was again slightly increased to 17%.

Income on Sukuk of AKD Aggressive Income Fund decreased from FY 2010 where it
was about 72% of the total income to 52% in FY 2011 and it decreased further in FY
2012 to 46% of the total income of that year.

FMS

81

Total expenses of IGI Islamic income fund increased from FY 2010 where it was about
29% of the total income to 33% in FY 2011 but it decreased in FY 2012 to about 24% of
the total income of FY2012.

The Net income for the different financial years of AKD Aggressive Income Fund
increased from FY 2010 where it was about 68% of the total income to 71% in FY 2011
and it further increased in FY 2012 to about 77% of the total income of that year.

FMS

82


AKD Aggressive Income Fund Income Statement Trend Analysis:

Table A-2.4: Income StatementTrend Analysis of AKD

INCOME 2010 2011 2012
Income from the Govt. Securities 100% 647% 0%
Income from theTerm deposit. Receipts 100% -30% 874%
Income from thecertificate of Invest. 100% -66% -99%
Income from theLetters of placement 100% 58% -
Income from theTerm Fin. Cert./Sukuk 100% -31% -24%
FMS

83

theProfit on bank accounts 100% 6% -35%
Unrealized inc/dec. on there-evaluation of investment 100% 117% -148%
Total Income 100% 2% -14%
EXPENSES
Salaries of theAKD IMC Ltd. 100% -18% -4%
Salaries of the CDC 100% -24% -12%
theAnnual fees - SECP 100% -18% -3%
Brokerage & other costs 100% -73% 4%
Amortization 100% 0% -25%
Legal Charges 100% -14% 5%
thePrinting charges 100% -7% 13%
Worker Welfare Fund 100% -1% 7%
theImpairment loss on Invest. 100% 91% -97%
Total Operating Expenses 100% 18% -38%
Net Operating Income 100% -5% -2%
Net gain/loss on theunit sales/redem. 100% 22% -59%
Net Income 100% -1% 6%
Unrealized increase/decrease on theinvestment re-measurement 100% 909% -71%
theComprehensive Income for the year 100% 7% -8%

FMS

84

The Trend Analysis of the Income statement of AKD Aggressive Income Fund depicts different
scenario over different time period. A positive trend has been noted in the profits on the term
deposit receipts of the company in the Financial Year of 2011 and 2012, which is about 30%
decrease in 2011 and about 900% increase in FY2012.

Income from SukukAKD Aggressive Income Fund has shown a downward negative
trend with31% decline inFY2011 and 24% decline in the FY 2012.

Total Income of the company has shown a positive trend in the FY 2011with a 2%
increase and a negative trend in 14% decrease in FY 2012.

Total expenses of the company have shown a downward trend in the FY 2011 with 18%
increase and upward trend in FY2012 with a 38% decrease in total expenses of that year.

Net income of AKD Aggressive Income Fund had shown a slight negative trend in the
FY 2011with 1% decrease in Net Income for the year but in FY2012 it showed a positive
trend with a 6% increase in Net Income of the year.

FMS

85

RATIOS ANALYSIS OF CONVENTIONAL MUTUAL INCOME FUNDS:

Return on assets:
Table= B.1 Return on assets
Graph= B.1 Return on assets

Return on Equity:
Table= B.2Return on Equity
Graph= B.2 Return on equity

Profit Margin:
Table= B.3Profit Margin
Graph= B.3 Profit Margins

Table= B.4 Net asset value per unit
Graph= B.4 Net Asset Value per Unit

Earning per unit:
FMS

86

Table= B.5 Earning per unit
Graph= B.5 Earning Per unit

Current ratio:
Table= B.6 Current ratio
Graph= B.6 Current Ratio

Table= B.7Net Working Capital Ratio
Graph= B.7 Net Working Capital Ratios

Table= B.8 Assets Turnover Ratio
Graph= B.8 Asset Turnover Ratios

Table= B.9 A/C Receivable Turnover Ratio
Graph= B.9 Account Receivable Turnover Ratios

Table= B.90 Debt to Equity Ratio
Graph= B.90 Debt to Equity Ratios

FMS

87

Return on assets:
Return on asset for the selected Conventional mutual income funds are given in the following table B.1,
which show that Alfalah have the highest return on asset among the selected Conventional income funds in the first
two years and in the third year ABL have highest return on asset.
Table= B.1 Return on assets: 2010 2011 2012
ABL's IF 11.17% 9.66% 14.40%
AKD's AIF 8.43% 9.64% 9.33%
Alfalah GHP' IMF 19.51% 15.69% 6.57%

Graphical Representation:
In graph B.1 we have shown the ratios of return on asset for the selected Conventional
income funds in different time period starting from 2010 and goes to 2012. This also shows that
Alfalah have the highest return on asset among the selected Conventional income funds in the first two years and in
the third year ABL have highest return on asset.
Graph= B.1 Return on assets:
FMS

88

Return on Equity:
Return on equity for the selected Conventional mutual income funds are given in the following table B.2,
which show that Alfalah have the highest return on equity among the selected Conventional income funds in the first
year but in the second and third year ABL have highest return on equity.
Table= B.2Return on Equity: 2010 2011 2012
ABL's IF 12.20% 16.16% 21.13%
AKD's AIF 4.92% 9.27% 6.92%
Alfalah GHP' IMF 19.66% 15.83% 6.64%

0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2010 2011 2012
Return on Asset
ABL's IF
AKD's AIF
Alfalah GHP' IMF
FMS

89

In graph B.2 we have shown the ratios of return on equity for the selected Conventional
income funds in different time period starting from 2010 and goes to 2012. This also shows
Alfalah have the highest return on equity among the selected Conventional income funds in the first year but in the
second and third year ABL have highest return on equity.
Graph= B.2 Return on equity:

Profit Margin:

Profit margins for the selected Conventional mutual income funds are given in the following table
B.3, which also shows that Alfalah have the highest profit margin among the selected Conventional income
funds in the specific time period from 2010 to 2012.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2010 2011 2012
Return on Equity
ABL's IF
AKD's AIF
Alfalah GHP' IMF
FMS

90

Table= B.3Profit Margin 2010 2011 2012
ABL's IF 33.26% 27.39% 19.65%
AKD's AIF 6.96% 17.76% 16.33%
Alfalah GHP' IMF 23.08% 17.57% 7.38%

In graph B.3 we have shown the profit margins for the selected Conventional income funds
in different time period starting from 2010 and goes to 2012. This also shows that Alfalah have the
highest profit margin among the selected Conventional income funds in the specific time period from 2010 to 2012.
Graph= B.3Profit Margins:

0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2010 2011 2012
Profit Margin
ABL's IF
AKD's AIF
Alfalah GHP' IMF
FMS

91

Net asset value per unit for the selected Conventional mutual income funds are given in the following table
B.4, which show that ABL Conventional income fund have the highest net asset value per unit among the selected
income funds in all the consecutive selected time period.
Table= B.4 Net asset value per unit 2010 2011 2012
ABL's IF 46.17 51.57 49.66
AKD's AIF 105.17 103.49 102.48
Alfalah GHP' IMF 79.54 83.97 76.76

In graph B.4 we have shown the net asset value per unit for the selected Conventional
income funds in different time period starting from 2010 and goes to 2012. This shows that ABL
has the highest net asset value per unitas compare to the other Conventional income funds.
Graph= B.4Net Asset Value Per Unit:

0.00
20.00
40.00
60.00
80.00
100.00
120.00
2010 2011 2012
Net Asset Value Per Unit
ABL's IF
AKD's AIF
Alfalah GHP' IMF
FMS

92

Earning per unit:

Earning per unit for the selected Conventional mutual income funds are given in the following table B.5,
which show that Alfalah income fund have the highest earning per unit in the year 2010 and in 2011 but in 2012
AKD have the highest earning per unit among the selected Conventional income funds.
Table= B.5 Earning per unit 2010 2011 2012
ABL's IF 0.01 0.01 0.01
AKD's AIF 5.17 7.61 15.49
Alfalah GHP' IMF 15.63 12.29 5.45

In graph B.5 we have shown the earning per unit for the selected Conventional income
funds in different time period starting from 2010 and goes to 2012. This shows also Alfalah income
fund have the highest earning per unit in the year 2010 and in 2011 but in 2012 AKD have the highest earning per
unit among the selected Conventional income funds.
Graph= B.5Earning Per unit:
FMS

93

Current ratio:
Current ratio for the selected Conventional mutual income funds are given in the following table B.6,
which show that in the first two years AKD income fund have the highest current ratio among the selected income
funds but in the last year Alfalah have the highest current ratio.
Table= B.6 Current ratio 2010 2011 2012
ABL's IF 13.73 23.87 8.25
AKD's AIF 38.00 83.06 14.35
Alfalah GHP' IMF 46.63 20.93 16.55

0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
2010 2011 2012
Earning Per Unit
ABL's IF
AKD's AIF
Alfalah GHP' IMF
FMS

94

In graph B.6 we have shown the current ratio for the selected Conventional income funds in
different time period starting from 2010 and goes to 2012. This also show that in the first two years
AKD income fund have the highest current ratio among the selected income funds but in the last year Alfalah have
the highest current ratio.
Graph= B.6Current Ratio:

Net working capital ratio for the selected Conventional mutual income funds are given in the following
table B.7, which show that AKD income fund have the highest net working capital ratio in the year 2010 and 2011
but ABL & ALFALAH have the same net working capital ratio in the year 2012, which are both higher than the
AKD income fund.
Table= B.7Net Working Capital Ratio2010

2011 2012
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
2010 2011 2012
Current Ratio
ABL's IF
AKD's AIF
Alfalah GHP' IMF
FMS

95

ABL's IF 0.08 0.13 0.03
AKD's AIF 0.27 0.44 0.02
Alfalah GHP' IMF 0.11 0.04 0.03

In graph B.7 we have shown the net working capital ratio for the selected Conventional
income funds in different time period starting from 2010 and goes to 2012. This shows that AKD
income fund have the highest net working capital ratio in the year 2010 and 2011 but ABL & ALFALAH have the
same net working capital ratio in the year 2012, which are both higher than the AKD income fund.
Graph= B.7Net Working Capital Ratios:

0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
0.50
2010 2011 2012
Net Working Capital Ratio
ABL's IF
AKD's AIF
Alfalah GHP' IMF
FMS

96

Asset turnover ratio for the selected Conventional mutual income funds are given in the following table
B.8, which show that ABL income fund have the highest asset turnover ratio among the selected income funds in all
the consecutive selected time periods.
Table= B.8 Assets Turnover Ratio 2010 2011 2012
ABL's IF 0.91 0.91 1.04
AKD's AIF 0.70 0.52 0.42

In graph B.8 we have shown asset turnover ratio for the selected Conventional income
funds in different time period starting from 2010 and goes to 2012. This shows that ABL income
fund have the highest asset turnover ratio among the selected income funds in all the consecutive selected time
periods
Graph= B.8Asset Turnover Ratios:
FMS

97

Accounts Receivable Turnover Ratio:

Account receivable turnover ratio for the selected Conventional mutual income funds are given in the
following table B.9, which show that ABL income fund have the highest account receivable turnover ratio among
the selected income funds in all the consecutive selected time periods.
Table= B.9 A/C Rece Turnover Ratio2010

2011 2012
ABL's IF 39.87 48.90 52.67
AKD's AIF 31.95 11.49 9.64
0.00
0.20
0.40
0.60
0.80
1.00
1.20
2010 2011 2012
Asset Turnover Ratio
ABL's IF
AKD's AIF
Alfalah GHP' IMF
FMS

98


In graph B.8 we have shown account receivable turnover ratio for the selected Conventional
income funds in different time period starting from 2010 and goes to 2012. This shows that ABL
income fund have the highest account receivable turnover ratio among the selected income funds in all the
consecutive selected time periods
Graph= B.9Account Receivable Turnover Ratios:

Debt to equity ratio for the selected Conventional mutual income funds are given in the following table
B.90, which show that ABL income fund have the highest debt to equity ratio in the year 2010 and 2011 but Alfalah
have the highest debt to equity ratio in the year 2012.
0.00
10.00
20.00
30.00
40.00
50.00
60.00
2010 2011 2012
Account Receivable Turnover Ratio
ABL's IF
AKD's AIF
Alfalah GHP' IMF
FMS

99

Table= B.90 Debt to Equity Ratio 2010 2011 2012
ABL's IF 0.015 0.020 0.006
AKD's AIF 0.009 0.005 0.006
Alfalah GHP' IMF 0.008 0.010 0.012

In graph B.90 we have shown the debt to equity ratio for the selected Conventional income
funds in different time period starting from 2010 and goes to 2012. This shows that ABL income
fund have the highest debt to equity ratio in the year 2010 and 2011 but Alfalah have the highest debt to equity ratio
in the year 2012
Graph= B.90Debt to Equity Ratios:

0.000
0.005
0.010
0.015
0.020
0.025
2010 2011 2012
Debt to Equity Ratio
ABL's IF
AKD's AIF
Alfalah GHP' IMF
FMS

100

BEST CONVENTIONAL INCOME FUND IN THE THREE SELECTED
CONVENTIONAL INCOME FUNDS:

We have calculated different ratios for the selected income funds, the result provide a
useful information about the performance of the conventional income fund in the specific time
period. Different income funds provided different results for the different time period, in one
period the specific fund have highest ratio and in other period the other fund have the highest
ratio.

According to the ratios of return on asset, return on equity Alfalah income fund have the
highest ratios in the first two years as (in 2010, 2011) but in 2012 ABL have the highest ratios of
return on asset& equity as compare to the other income funds.

ABL have the highest ratios profit margins for all the consecutive years as compare to the
other income funds.

The net asset per unit value is high for the AKD income fund as compared to the other
selected Islamic income fund.

The earning per unit value is high for Alfalah income fund in the first two year but in
third year AKD have the highest earning per unit as compared to the other selected income
funds.
FMS

101

The current ratio and net working capital ratios values are high for AKD income fund in
the as compared to the other selected income fund in the first two years but in the last year
Alfalah have the highest values for these ratios.

Over all the ABL income fund is the best fund to the investment point of view as it provides
highreturns in the year 2012 as compared to the other selected income fund.

FMS

102

FMS

103

RATIOS ANALYSIS OF THE SELECTED ISLAMIC INCOME FUNDS:
Return on assets:
Table= 1.1 Return on assets
Graph= 1.1 Return on assets
Return on Equity:
Table= 1.2Return on Equity
Graph= 1.2 Return on equity
Profit Margin:
Table= 1.3Profit Margin
Graph= 1.3 Profit Margins

Table= 1.4 Net asset value per unit
Graph= 1.4 Net Asset Value per Unit

Earning per unit:
Table= 1.5 Earning per unit
Graph= 1.5 Earning Per unit
FMS

104

Current ratio:
Table= 1.6 Current ratio
Graph= 1.6 Current Ratio

Table= 1.7Net Working Capital Ratio
Graph= 1.7 Net Working Capital Ratios

Table= 1.8 Assets Turnover Ratio
Graph= 1.8 Asset Turnover Ratios

Table= 1.9 A/C Receivable Turnover Ratio
Graph= 1.9 Account Receivable Turnover Ratios

Table= 1.90 Debt to Equity Ratio
Graph= 1.90 Debt to Equity Ratios
RETURN ON ASSETS:
FMS

105

Return on asset for the selected Islamic mutual income funds are given in the following
table 1.1, which show that Al-Meezan have the highest return on asset among the selected
Islamic income funds.
Table= 1.1 Return on assets: 2010 2011 2012
Almeezan 30.10% 25.02% 20.38%
IGI 4.87% 9.21% 6.89%
Dawood 19.51% 15.69% 6.57%

GRAPHICAL REPRESENTATION:
In graph 1.1 we have shown the ratios of return on asset for the selected Islamic income
funds in different time period starting from 2010 and goes to 2012. This also shows that Al-
Meezan has the highest return on asset.
Graph= 1.1 Return on assets:

0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2010 2011 2012
Return on Asset
Almeezan
IGI
Dawood
FMS

106

RETURN ON EQUITY:
Return on equity for the selected Islamic mutual income funds are given in the following
table 1.2, which show that Al-Meezan have the highest return on equity among the selected
Islamic income funds.
Table= 1.2Return on Equity: 2010 2011 2012
Almeezan 30.56% 25.46% 20.63%
IGI 4.92% 9.27% 6.92%
Dawood 19.66% 15.83% 6.64%

In graph 1.2 we have shown the ratios of return on equity for the selected Islamic income
funds in different time period starting from 2010 and goes to 2012. This also shows that Al-
Meezan has the highest return on equity.
Graph= 1.2 Return on equity:
FMS

107

PROFIT MARGIN:

Profit margins for the selected Islamic mutual income funds are given in the following
table 1.3, which also shows that Al-Meezan Islamic income fund have the highest profit margin
among the selected Islamic income funds, in the specific time period from 2010 to 2012.
Table= 1.3Profit Margin 2010 2011 2012
Almeezan 33.26% 27.39% 19.65%
IGI 6.96% 17.76% 16.33%
Dawood 23.08% 17.57% 7.38%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2010 2011 2012
Return on Equity
Almeezan
IGI
Dawood
FMS

108

In graph 1.3 we have shown the profit margins for the selected Islamic income funds in
different time period starting from 2010 and goes to 2012. This also shows that Al-Meezan has
the highest profit margin as compare to the other Islamic income funds.
Graph= 1.3Profit Margins:

NET ASSET VALUE PER UNIT:
Net asset value per unit for the selected Islamic mutual income funds are given in the
following table 1.4, which show that IGI Islamic income fund have the highest net asset value
per unit among the selected Islamic income funds in all the consecutive selected time period.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2010 2011 2012
Profit Margin
Almeezan
IGI
Dawood
FMS

109

Table= 1.4 Net asset value per unit 2010 2011 2012
Almeezan 46.17 51.57 49.66
IGI 105.17 103.49 102.48
Dawood 79.54 83.97 76.76

In graph 1.4 we have shown the net asset value per unit for the selected Islamic income
funds in different time period starting from 2010 and goes to 2012. This shows that IGI has the
highest net asset value per unitas compare to the other Islamic income funds.
Graph= 1.4Net Asset Value Per Unit:

0.00
20.00
40.00
60.00
80.00
100.00
120.00
2010 2011 2012
Net Asset Value Per Unit
Almeezan
IGI
Dawood
FMS

110

EARNING PER UNIT:

Earning per unit for the selected Islamic mutual income funds are given in the following
table 1.5, which show that Dawood Islamic income fund have the highest earning per unit in the
year 2010 and 2011 but in 2012 IGI Islamic income find have the highest earning per unit among
the selected Islamic income funds.

Table= 1.5 Earning per unit 2010 2011 2012
Almeezan 0.01 0.01 0.01
IGI 5.17 7.61 15.49
Dawood 15.63 12.29 5.45

In graph 1.5 we have shown the earning per unit for the selected Islamic income funds in
different time period starting from 2010 and goes to 2012. This shows that Dawood Islamic
income fund has the highest earning per unitin the year 2010 and 2011 as compare to the other
Islamic income funds but in 2012 IGI Islamic income fund have the highest earning per unit.
Graph= 1.5Earning Per unit:
FMS

111

CURRENT RATIO:
Current ratio for the selected Islamic mutual income funds are given in the following
table 1.6, which show that Dawood Islamic income fund have the highest current ratio in the year
2010 but IGI Islamic income fund have the highest current ratio in the year 2011 and 2012
among the selected Islamic income funds .
Table= 1.6 Current ratio 2010 2011 2012
Almeezan 13.73 23.87 8.25
IGI 38.00 83.06 14.35
Dawood 46.63 20.93 16.55

0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
2010 2011 2012
Earning Per Unit
Almeezan
IGI
Dawood
FMS

112

In graph 1.6 we have shown the current ratio for the selected Islamic income funds in
different time period starting from 2010 and goes to 2012. This shows that Dawood Islamic
income fund has the highest current ratioin the year 2010 and 2012 as compare to the other
Islamic income funds but in 2011 IGI Islamic income fund have the highest current ratio.
Graph= 1.6Current Ratio:

NET WORKING CAPITAL RATIO:
Net working capital ratio for the selected Islamic mutual income funds are given in the
following table 1.7, which show that IGI Islamic income fund have the highest net working
capital ratio in the year 2010 and 2011 but Al-Meezan and Dawood have the same net working
capital ratio in the year 2012, which are both higher than the IGI Islamic income fund.
Table= 1.7Net Working Capital Ratio 2010 2011 2012
Almeezan 0.08 0.13 0.03
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
2010 2011 2012
Current Ratio
Almeezan
IGI
Dawood
FMS

113

IGI 0.27 0.44 0.02
Dawood 0.11 0.04 0.03

In graph 1.7 we have shown the net working capital ratio for the selected Islamic income
funds in different time period starting from 2010 and goes to 2012. This shows that IGI Islamic
income fund has the highest net working capital ratio in the year 2010 and 2011 as compare to
the other Islamic income funds but in 2012 Al-Meezan Islamic income fund have the highest net
working capital ratio.
Graph= 1.7Net Working Capital Ratios:

ASSETS TURNOVER RATIO:
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
0.50
2010 2011 2012
Net Working Capital Ratio
Almeezan
IGI
Dawood
FMS

114

Asset turnover ratio for the selected Islamic mutual income funds are given in the
following table 1.8, which show that Al-Meezan Islamic income fund have the highest asset
turnover ratio among the selected Islamic income funds in all the consecutive selected time
periods.
Table= 1.8 Assets Turnover Ratio 2010 2011 2012
Almeezan 0.91 0.91 1.04
IGI 0.70 0.52 0.42
Dawood 0.85 0.89 0.89

In graph 1.8 we have shown asset turnover ratio for the selected Islamic income funds in
different time period starting from 2010 and goes to 2012. This shows that Al-Meezan Islamic
income fund has the highest asset turnover ratio in the year 2010, 2011 and 2012 as compare to
the other Islamic income funds.
Graph= 1.8Asset Turnover Ratios:

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ACCOUNTS RECEIVABLE TURNOVER RATIO:

Account receivable turnover ratio for the selected Islamic mutual income funds are given
in the following table 1.9, which show that Al-Meezan Islamic income fund have the highest
account receivable turnover ratio among the selected Islamic income funds in all the consecutive
selected time periods.
Table= 1.9 A/C Rece Turnover Ratio 2010 2011 2012
Almeezan 39.87 48.90 52.67
IGI 31.95 11.49 9.64
Dawood 5.28 6.79 6.07
0.00
0.20
0.40
0.60
0.80
1.00
1.20
2010 2011 2012
Asset Turnover Ratio
Almeezan
IGI
Dawood
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In graph 1.9 we have shown account receivable turnover ratio for the selected Islamic
income funds in different time period starting from 2010 and goes to 2012. This shows that Al-
Meezan Islamic income fund has the highest account receivable turnover ratio in the year 2010,
2011 and 2012 as compare to the other Islamic income funds.
Graph= 1.9Account Receivable Turnover Ratios:

DEBT TO EQUITY RATIO:
Debt to equity ratio for the selected Islamic mutual income funds are given in the
following table 1.90, which show that Al-Meezan Islamic income fund have the highest debt to
equity ratio in the year 2010 and 2011 but Dawood have the highest debt to equity ratio in the
year 2012.
0.00
10.00
20.00
30.00
40.00
50.00
60.00
2010 2011 2012
Account Receivable Turnover Ratio
Almeezan
IGI
Dawood
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Table= 1.90 Debt to Equity Ratio 2010 2011 2012
Almeezan 0.015 0.020 0.006
IGI 0.009 0.005 0.006
Dawood 0.008 0.010 0.012

In graph 1.90 we have shown the debt to equity ratio for the selected Islamic income
funds in different time period starting from 2010 and goes to 2012. This shows that Al-Meezan
Islamic income fund has the highest debt to equity ratio in the year 2010 and 2011 as compare to
the other Islamic income funds but in 2012 Dawood Islamic income fund have the highest net
debt to equity ratio.
Graph= 1.90Debt to Equity Ratios:

0.000
0.005
0.010
0.015
0.020
0.025
2010 2011 2012
Debt to Equity Ratio
Almeezan
IGI
Dawood
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BEST ISLAMIC INCOME FUND IN THE THREE SELECTED ISLAMIC INCOME
FUND:

We have calculated different ratios for the selected Islamic income funds, the result
provide a useful information about the performance of the Islamic income fund in the specific
time period. Different Islamic income funds provided different results for the different time
period, in one period the specific fund have high ratio and in other period the other fund have
high ratio.

According to the ratios of return on asset, return on equity and the profit margins Al-
Meezan Islamic income fund have the highest ratios as compare to the other Islamic income
funds.

The net asset per unit value is high for the IGI Islamic income fund as compared to the
other selected Islamic income fund.

The earning per unit value is high for Dawood Islamic income fund in the first two year
but in third year IGI have the highest earning per unit as compared to the other selected Islamic
income fund.

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The current ratio and net working capital ratios values are high for IGI Islamic income
fund in the as compared to the other selected Islamic income fund, which shows that IGI more
current asset to pay its short term obligations.

Over all the Al-Meezan Islamic income fund is the best fund to the investment point of
view as it provides high returns as compared to the other selected Islamic income fund.

TREND ANALYSIS:

1)AL-MEEZAN ISLAMIC INCOME FUND:

Trend Analysis
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Graphical Representation
Trend Analysis:

1) AL-MEEZAN ISLAMIC INCOME FUND:

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BALANCE SHEET OF AL-MEEZAN

COMMON SIZE ANALYSIS:
Table= 2.1 Balance Sheet Common size analysis of Al-Meezan:
Balance Sheet
Assets 2010 2011 2012
Balances with the banks 8.8% 12.8% 3.5%
Investments 90.5% 85.7% 96.1%
Dividend receivable 0.4% 0.5% 0.2%
Advances and other receivables 0.3% 0.9% 0.2%
Total assets 100 100 100
Liabilities
Payable to the (Al Meezan) Investment Management Limited 0.2% 0.2% 0.3%
Payable to the Central Depository Company (CDC )
Which is trustee of the Fund 0.011% 0.010% 0.011%
Payable to theAl-Meezan Bank Limited 0.002% 0.009% 0.001%
Payable to the (SECP)Securities and Exchange Commission of
Pakistan 0.1% 0.1% 0.1%
Payable on the redemption of units 0.3% 0.2% 0.0%
Payable (against)the purchase of investments 0.0% 1.2% 0.0%
Accrued expenses 0.8% 0.2% 0.2%
Total liabilities 1.5% 1.9% 0.6%
Net assets 99% 98% 99%

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Vertical analysis or Common size analysis of balance sheet has been used to calculate
each component of the balance sheet as a proportion of the specific components of the balance
sheet. The vertical analysis of the balance sheet of Al-MeezanIslamic Income Fund depicts
different scenario over different time period.In Financial Year of 2010 the total investments were
about 90.5 percent of the total assets which went slightly down ward over the next period of
2011 and in FY2012 it was about 96.1 percent of the total assets.

Balance with the banks of Al-Meezan Islamic income fund increase from FY 2010 where
it was about 8.8 percent of the total asset to 12.8 percent in FY2011 but it decreased in
FY 2012 which is about 3.5 percent of the total asset.
Total Liabilities of the company increase from FY 2010 where it was about 1.5 percent of
the total asset to 1.9 percent in FY2011 but it decreased in FY 2012 which is about 0.6
percent of the total asset.
Net Assets of the company decreased from FY 2010 where it was about 99 percent of the
total asset to 98 percent in FY2011 but it again increased in FY 2012 which is about 99

TREND ANALYSIS:

Table= 2.2 Balance Sheet Trend analysis of Al-Meezan:
Balance Sheet
Assets 2010 2011 2012
Balances with the banks 100 167.0213 52.63232497
Investments 100 107.8914 141.6816585
The Receivable against the sale of investments 100 0 0
Dividend receivable 100 122.9763 56.57931187
Advances and the other receivables 100 396.1675 117.922417
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The Total assets 100 113.9069 133.4919241
Liabilities
Payable to the Al Meezan Investment Management Limited 100 128.6332 204.6866559
Payable to the Central Depository Company of Pakistan
Limited (CDC) which is trustee of the Fund 100 109.6019 143.3255269
Payable to the Meezan Bank Limited 100 549.3671 84.81012658
Payable to the Securities and Exchange Commission of
Pakistan (SECP) 100 98.59257 111.5991264
Payable on the redemption of units 100 77.29852 15.47861507
Payable (against)the purchase of investments 100 3714.986 0
The Accrued expenses and the other liabilities 100 28.63695 27.33938864
Total liabilities 100 147.6203 52.36478654
Net assets
100 113.3935 134.7271875
The Unit holders fund 100 113.3935 134.7271875
Number of the units in issue 100 101.5319 125.2698023
The Net assets value per unit 100 111.6959 107.559021

Horizontal analysis or Trend analysis of balance sheet has been used to calculate the
trend of a particular item of the balance sheet over different time period.For calculating the trend
we have taken a base year which is 2010 and all item of the balance sheet have a value of 100
and then in the subsequent years we have calculated the trend in accordance with the base year.
The trend Analysis of the balance sheet of Al-MeezanIslamic Income Fund depicts different
scenario over different time period. A positive trend has been noted in the investments of the
company in the Financial Year of 2011 and 2012, which is about 107 in 2011 and 141 in 2012.

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Balance with the banks of Al-Meezan Islamic income fund have shown a positive trend
in the FY 2011 which is about 167 but it have shown a negative trend in the FY 2012
which is about 57.6 .
Total Assets of Al-Meezan Islamic income fund have shown a positive trend in the FY
2011 and 2012 which is about 113.9 in FY 2011 and 133.4 in the FY 2012.
Total Liabilities of the company have shown a positive trend in the FY 2011 but in FY
2012 it has shown a negative trend which is about 52.3.
Net Assets of Al-Meezan Islamic income fund have shown a positive trend in the FY
2011 and 2012 which is about 113.3 in FY 2011 and 134.7 in the FY 2012.
Bellow the graph 2.1 provides view of the Trend analysis of the balance sheet of Al-
Meezan Islamic income fund, as we have stated that we have taken all the values of FY 2010
equal to 100, and then in subsequent year we have calculated the trend in those value which are
very clearly shown in the graph below.
Graph= 2.1 Balance sheet Trend Analysis of Al-Meezan:
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Table= 2.3 Income Statement Common size analysis of Al-Meezan:
INCOME STATEMENT

Income 2010 2011 2012
The Net realized gain on the sale of investments 37.5% 59.4% 66.8%
Dividend income 25.7% 23.1% 27.3%
Profit on the savings accounts with the banks 1.9% 4.6% 3.0%
0
20
40
60
80
100
120
140
160
180
2010 2011 2012
Balance Sheet Trend Analysis of Al-Meezan
Total assets
Balances with banks
Investments
Dividend receivable
Total liabilities
Net assets
Number of units in issue
Net assets value per unit
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Other income 0.2% 0.2% 0.4%
The Unrealized gain on the re-measurement of the investments 65.3% 87.3% 97.4%
at fair value through the profit or loss (net) 34.7% 12.7% 10.2%
The Total income 100 100 100
Expenses
The Remuneration to the Al Meezan management company 6.98% 6.78% 6.08%
Remuneration to the CDC which is trustee of the Fund 0.43% 0.42% 0.51%
The Annual fee to the SECP 0.33% 0.32% 0.40%
The Auditors' remuneration 0.05% 0.05% 0.06%
The Fees and subscription 0.00% 0.00% 0.00%
The Legal and the professional charges 0.06% 0.02% 0.02%
The Brokerage 0.33% 0.22% 0.49%
The Bank and the settlement charges 0.08% 0.07% 0.05%
The Printing charges 0.05% 0.07% 0.06%
(Reversal) of Workers' Welfare Fund 1.95%
-
1.92% 0.00%
Total expenses 10.2% 6.02% 11.3%
The Net income from The operating activities 89.7% 93.9% 88.6%
The Element of (loss) / income and The capital (losses) / gains
included
in The prices of units issued less those in The units redeemed 7.8% -8.6% -0.3%
The Net income for the year 97.5% 85% 88%
Other comprehensive income
The Unrealized (gain) on The available for sale investments (net) 1.75% 16% 12%
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The Element of loss and The capital losses included in prices of
units which is issued less those in units redeemed pertaining to
The available for sale investments -0.3% -3.9% .18%
The Total comprehensive income 98.9% 98% 75%

The vertical analysis of the Income Statement of Al-MeezanIslamic Income Fund depicts
different scenario over different time period.In Financial Year of 2010 the total gain on the sale
of investment were about 37.5 percent of the total income which increased over the next period
of 2011to 59.4 percent and in FY2012 it was about 66.8 percent of the total income.
Dividend Income of Al-Meezan Islamic income fund decreased from FY 2010 where it
was about 25.7 percent of the total income to 23.1 percent in FY 2011 but it increased in
FY 2012 which is about 27.3 percent of the total income.

Unrealized gain on the re-measurement of the investments of Al-Meezan Islamic income
fund increased from FY 2010 where it was about 65.3 percent of the total income to 87.3
total income.

Total expenses of Al-Meezan Islamic income fund decreased from FY 2010 where it was
about 10.27 percent of the total income to 6.02 percent in FY 2011 but it decreased in FY
2012 which is about 11.37 percent of the total income.

The Net income for the different financial years of Al-Meezan Islamic income fund
decreased from FY 2010 where it was about 97.52 percent of the total income to 85.34
total income.
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INCOME STATEMENT OF AL-MEEZAN:
TREND ANALYSIS:
Table= 2.4 Income Statement Trend analysis of Al-Meezan:
INCOME STATEMENT

Income
201
0 2011 2012
The Net realized gain on The sale of the investments 100 161.1251 164.6336
The Dividend income 100 90.97687 97.87132
Profit on the savings accounts with the banks 100 244.3895 143.8699
Other income 100 141.499 203.5714
The Unrealized gain on the re-measurement of investments 100 135.864 137.7918
at fair the value through profit or loss (net) 100 37.03795 27.14473
Total income 100
101.566
3
92.3845
1
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Expenses
The Remuneration to Al Meezan management company 100 98.59709 80.47678
The Remuneration to the CDC which is trustee of the Fund 100 98.87577 109.481
The Annual fee to the SECP 100 98.59257 111.5991
TheAuditors' remuneration 100 102.6578 105.4817
TheFees and subscription 100 100 100
TheLegal and Theprofessional charges 100 32.51613 24
Brokerage 100 66.2322 137.0746
Bank and Thesettlement charges 100 83.20537 50.28791
ThePrinting charges 100 136.019 112.9542
The(Reversal) / provision of TheWorkers' Welfare Fund 100 -100 0
Total expenses 100 59.53103 102.2243
TheNet income from Theoperating activities 100 106.3792 91.2579
Element of (loss) / income and capital (losses) / gains included
in Theprices of units issued less Thanthose in units redeemed 100 -112.557 -2.95835
TheNet income for the year 100 88.87426 83.72489
Other comprehensive income for the year
The Unrealized gain on Theavailable for sale investments (net) 100 967.1784 673.1957
TheElement of loss and Thecapital losses included in The prices
of
units issued less Thanthose in units redeemed pertaining to
'available for sale' investments 100 1308.212 -56.4443
TheTotal comprehensive income for the year 100 100.6769 70.76753

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The trend Analysis of the Income statement of Al-MeezanIslamic Income Fund depicts
different scenario over different time period. A positive trend has been noted in the gain on the
sale of investment of the company in the Financial Year of 2011 and 2012, which is about 161.1
in 2011 and 164.6 in 2012.
Dividend income Al-Meezan Islamic income fund have shown a positive trend in the FY
2011 and 2012, which is about 90.9 in 2011 and 97.8 in 2012.
Other income the company have shown a positive trend in the FY 2011 and 2012, which
is about 141.4 in 2011 and 203.5 in 2012.
Total Income of Al-Meezan Islamic income fund have shown a positive trend in the FY
2011which is 101.5but in FY 2012 it has shown a negative trend which is about 92.3.
Total expenses of the company have shown a positive trend in the FY 2011 and 2012,
which is about 59.5 in 2011 and 102.2 in 2012.
Net income of Al-Meezan Islamic income fund has shown a positive trend in the FY
2011which is 88.8but in FY 2012 it has shown a negative trend which is about 83.7.
Bellow the graph 2.2 provides view of the Trend analysis of the Income Statement of Al-
Meezan Islamic income fund, as we have stated that we have taken all the values of FY 2010
very clearly shown in the graph below.
Graph= 2.2 Income Statement Trend Analysis of Al-Meezan:
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TREND ANALYSIS:

2) IGI ISLAMIC INCOME FUND:

BALANCE SHEET OF IGI:
0
50
100
150
200
250
2010 2011 2012
Income Statement Trend Analysis of Al-Meezan
Total income
Net realised gain on sale of
investments
Dividend income
Other income
Total expenses
Net income for the year
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Trend Analysis
INCOME STATEMENT IGI:
Trend Analysis

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3) IGI ISLAMIC INCOME FUND:

BALANCE SHEET OF IGI


Table= 2.5 Balance Sheet Common size analysis of IGI:
Balance Sheet
Assets 2010 2011 2012
TheBank balances 27.4% 35.2% 5.6%
Investments 70.0% 62.3% 92.0%
TheDeferred formation cost 0.5% 0.2% 0.5%
Income receivable 2.2% 2.3% 1.8%
TheSecurity deposits 0.0%
Total assets 1 1 1
Liabilities
Amount payable on Theredemption of units 0.0% 0.1% 0.0%
Payable to the Management Company 0.7% 0.3% 0.2%
TheRemuneration payable to the Trustee 0.0% 0.0% 0.0%
TheAnnual fee payable to TheSecurities and
Exchange
TheCommission of Pakistan 0.0% 0.1% 0.2%
Accrued and other liabilities 0.2% 0.1% 0.2%
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Total liabilities 0.9% 0.5% 0.6%
TheNet assets attributable to Theunit holders 99.1% 99.5% 99.4%
TheUnit holders'

The vertical analysis of the balance sheet of IGIIslamic Income Fund depicts different
scenario over different time period.In Financial Year of 2010 the total investments were about 70
percent of the total assets which went slightly down ward over the next period of 2011 and in
FY2012 it was about 92 percent of the total assets.
Bank Balance of IGI Islamic income fund increase from FY 2010 where it was about
27.4 percent of the total asset to 35.2 percent in FY2011 but it decreased in FY 2012
which is about 5.6 percent of the total asset.
Total Liabilities of the company decreased from FY 2010 where it was about 0.9 percent
of the total asset to 0.5 percent in FY 2011 but it increased in FY 2012 which is about 0.6
Net Assets of the company increased from FY 2010 where it was about 99.1 percent of
the total asset to 99.5 percent in FY2011 but it again decreased in FY 2012 which is
about 99.4 percent of the total asset.


BALANCE SHEET OF IGI
TREND ANALYSIS:
Table= 2.6 Balance Sheet Trend analysis of IGI:
Balance Sheet
Assets 2010 2011 2012
The Bank balances 100 218.6447 10.33609
Investments 100 151.0722 66.42834
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The Deferred formation cost 100 78.60593 55.61292
The Income receivable 100 177.9717 42.16599
The Security deposits
Total assets 100 169.817 50.5221
Liabilities
The Amount payable on The redemption of units 100 1217.798 271.3914
The Payable to the Management Company 100 76.95659 12.75598
The Remuneration payable to the Trustee 100 123.9569 75.21719
The Annual fee payable to The Securities and
Exchange
Commission of Pakistan 100 207.8061 185.5798
The Accrued and other liabilities 100 50.48215 57.5064
Total liabilities 100 90.23803 33.33177
Contingency
The Net assets attributable to The unit holders 100 170.5378 50.67779
The Unit holders' fund
100 170.5378 50.67779
The Number of units in issue 100 173.317 52.00815
The Net assets value per unit 100 98.40259 97.44224

The trend Analysis of the balance sheet of IGIIslamic Income Fund depicts different
company in the Financial Year of 2011 which is about 151 but in FY 2012 there is a negative
trend which is about 66.4.
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Bank balance of IGI Islamic income fund have shown a positive trend in the FY 2011
which is about 218.6 but it have shown a negative trend in the FY 2012 which is about
10.3 .
Total Assets of IGI Islamic income fund have shown a positive trend in the FY 2011
which is about 169.8 but it have shown a negative trend in the FY 2012 which is about
50.5.
Total Liabilities of the company have shown a positive trend in the FY 2011 but in FY
2012 it has shown a negative trend which is about 33.3.
Net Assets of IGI Islamic income fund have shown a positive trend in the FY 2011 but in
FY 2012 it has shown a negative trend which is about 50.6.

Bellow the graph 2.3 provides view of the Trend analysis of the balance sheet of IGI
Islamic income fund, as we have stated that we have taken all the values of FY 2010 equal to
100, and then in subsequent year we have calculated the trend in those value which are very
clearly shown in the graph below.
Graph= 2.3 Balance Sheet Trend Analysis of IGI:
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INCOME STATEMENT:


Table= 2.7 income Statement Common size analysis of IGI:
Income Statement 2010 2011 2012
0
50
100
150
200
250
2010 2011 2012
Balance Sheet Trend Analysis of IGI
Bank balances
Investments
Income receivable
Total assets
Total liabilities
Net assets attributable
to unit holders
Number of units in
issue
Net assets value per
unit
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Income
The Profit on bank and The other deposits 97.7% 56.0% 102.4%
The Income on The Government of Pakistan Ijara Sukuk 2.4% 36.4%
The Unrealized loss on The measurement of held for The
trading
investment to The fair value -1.0%
The Element of income / (loss) and The capital gains / (losses)
included in
The prices of units sold less Than those in units redeemed - net -0.1% 8.6% -2.4%
Total income 100 100 100
Expenses
The Remuneration to the Management Company 13.5% 11.8% 12.5%
The Remuneration to the Trustee 1.8% 1.4% 1.5%
The Annual fee to the Securities and Exchange
Commission of Pakistan 0.7% 0.6% 0.6%
The Brokerage expense 0.0% 0.1% 0.1%
Bank charges 0.0% 0.0% 0.0%
The Amortization of The deferred formation cost 1.1% 0.7% 0.9%
The Auditors' remuneration 0.9% 0.5% 0.7%
Annual listing fee 0.4% 0.1% 0.1%
Credit rating fee 0.4% 0.3% 0.4%
The Printing charges 0.2% 0.3%
The Workers' Welfare Fund 1.6% -0.7%
Total expenses 20.4% 14.9% 19.1%
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The Net income for the period 79.6% 85.1% 62.0%

The vertical analysis of the Income Statement of IGIIslamic Income Fund depicts
different scenario over different time period.In Financial Year of 2010 the total Profit on the
bank and the other deposits were about 97.7 percent of the total income which decreased over the
next period of 2011to 56 percent and in FY2012 it was about 102 percent of the total income.

Income on Ijara Sukuk of IGI Islamic income fund increased from FY 2010 where it was
about 2.4 percent of the total income to 36.4 percent in FY 2011 but it decreased in FY
2012 which is about .1 percent of the total income.

Total expenses of IGI Islamic income fund decreased from FY 2010 where it was about
20.4 percent of the total income to 14.9 percent in FY 2011 but it again increased in FY
2012 which is about 19.1 percent of the total income.

The Net income for the different financial years of IGI Islamic income fund increased
from FY 2010 where it was about 79.6 percent of the total income to 85.1 percent in FY
2011 and it decreased in FY 2012 which is about 62 percent of the total income.
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INCOME STATEMENT:
TREND ANALYSIS:
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Table= 2.8 Income Statement Trend analysis of IGI:
The Income Statement 2010 2011 2012
Income
The Profit on bank and on The other deposits 100 136.6803 209.7136
The Income on The Government of Pakistan Ijara Sukuk 100 3643.036 0
The Unrealized loss on The measurement of held for trading
investment to The fair value
The Element of income / (loss) and The capital gains / (losses)
included in
The prices of units sold less Than those in units redeemed - net 100 -39880.2 11173.02
Total income 100 238.5258 199.9323
Expenses
The Remuneration to the Management Company 100 207.8048 185.5782
The Remuneration to the Trustee 100 190.3895 161.624
The Annual fee to the Securities and Exchange
The Commission of Pakistan 100 207.8061 185.3394
The Brokerage expense 100 792.5 1555.05
Bank charges 100 156.7855 288.2204
The Amortization of The deferred formation cost 100 145.8752 156.7776
The Auditors' remuneration 100 136.8571 164.3295
Annual listing fee 100 31.57895 42.22
Credit rating fee 100 200 174.948
The Printing charges
The Workers' Welfare Fund 100 -100 0
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Total expenses 100 174.1367 186.7022

The Net income for the period 100 255.0301 155.7062

The trend Analysis of the Income statement of IGIIslamic Income Fund depicts different
scenario over different time period. A positive trend has been noted in the profit on the bank and
on the other deposits of the company in the Financial Year of 2011 and 2012, which is about
136.6 in 2011 and 209.7 in 2012.

Income from Ijara SukukIGI Islamic income fund has shown a positive trend in the FY
2011.

Total Income of the company has shown a positive trend in the FY 2011which is
238.5but in FY 2012 it has shown a negative trend which is about 199.9.

Total expenses of the company have shown a positive trend in the FY 2011 and 2012,
which is about 174.1 in 2011 and 186.7 in 2012.

Net income of IGI Islamic income fund has shown a positive trend in the FY 2011which
is 255but in FY 2012 it has shown a negative trend which is about 155.7.

Bellow the graph 2.4 provides view of the Trend analysis of the Income Statement of IGI
clearly shown in the graph below,

Graph= 2.4 Income Statement Trend Analysis of IGI:
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TREND ANALYSIS:

3)DAWOOD ISLAMIC INCOME FUND:

BALANCE SHEET OF DAWOOD:
0
50
100
150
200
250
300
2010 2011 2012
Income Statement Trend Analysis of IGI
Total income
Profit on bank and other
deposits
Total expenses
Net income for the year /
period
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144

Trend Analysis
INCOME STATEMENT DAWOOD:
Trend Analysis

1) DAWOOD ISLAMIC INCOME FUND:
BALANCE SHEET OF DAWOOD

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Table= 2.9 Balance Sheet Common size analysis of Dawood:
Assets 2010 2011 2012
The Bank Balances 11.3% 4.0% 3.1%
The Receivable From the Sale of Investments 0.0% 12.1% 1.8%
Investments 84.5% 82.5% 95.0%
The Advance, Deposit and The Profit Receivable 4.2% 1.4% 0.0%
Total Assets 100 100 100
Liabilities
The Remuneration Payable to The Management Company 0.1% 0.1% 0.1%
The Remuneration Payable to The Trustee 0.0% 0.0% 0.0%
The Annual Fee Payable to The Securities and Exchange
The Commission of Pakistan 0.1% 0.1% 0.1%
The Payable to The Unit Holders Against The Redemption 0.0%
The Accrued and Other Liabilities 0.5% 0.8% 1.0%
Total Liabilities 0.8% 1.0% 1.2%
The NET ASSETS 99.2% 99.0% 98.8%

The vertical analysis of the balance sheet of DawoodIslamic Income Fund depicts
different scenario over different time period. In Financial Year of 2010 the total investments
were about 84.5 percent of the total assets which went slightly down ward over the next period of
2011 to 82.5 percent and in FY2012 it was about 95 percent of the total assets.

Bank balance of Dawood Islamic income fund decreased from FY 2010 where it was
about 11.3 percent of the total asset to 4 percent in FY2011 and it also decreased in FY
2012 which is about 3.1 percent of the total asset.
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Total Liabilities of the company increased from FY 2010 where it was about 0.8 percent
of the total asset to 1.0 percent in FY 2011 and it also increased in FY 2012 which is
about 1.2 percent of the total asset.

Net Assets of the company decreased from FY 2010 where it was about 992 percent of
the total asset to 99 percent in FY2011 and it again decreased in FY 2012 which is about
98.8 percent of the total asset.

BALANCE SHEET OF DAWOOD

TREND ANALYSIS:
Table= 2.90 Balance Sheet Trend analysis of Dawood:
Assets 2010 2011 2012
The Bank Balances 100 41.99415 28.90254
TheReceivable From the Sale of TheInvestments
Investments 100 115.1399 116.823
TheAdvance, Deposit and TheProfit Receivable 100 38.65244 0.610288
Total Assets 100 117.997 103.9246
Liabilities
TheRemuneration Payable to TheManagement Company 100 129.5956 126.0857
TheRemuneration Payable to TheTrustee 100 114.2027 26.77198
TheAnnual Fee Payable to TheSecurities and Exchange
TheCommission of Pakistan 100 66.32913 78.48257
ThePayable to TheUnit Holders Against Redemption 0
TheAccrued and Other Liabilities 100 184.7723 208.887
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Total Liabilities
100 155.6813 168.2356
NET ASSETS
100 117.7095 103.434
TheUNIT HOLDERS FUND 100 117.7095 103.434
TheContingencies & Commitments
TheNumber of Units in Issue 100 111.5031 107.1728
TheNet Asset Value per Unit 100 105.5695 96.5049

The trend Analysis of the balance sheet of DawoodIslamic Income Fund depicts different
company in the Financial Year of 2011 and 2012 which is about 115.1 in FY 2012 and in FY
2012 it is about 116.8.

Bank balance of Dawood Islamic income fund have shown a positive trend in the FY
2011 which is about 41.9 but it have shown a negative trend in the FY 2012 which is
about 28.9 .

Total Assets of Dawood Islamic income fund have shown a positive trend in the FY 2011
which is about 117.9but it have shown a negative trend in the FY 2012 which is about
103.9.
Total Liabilities of the company have shown a positive trend in the FY 2011 and 2012
which is about 155.6 in FY 2012 and in FY 2012 it is about 168.2.

Net Assets of Dawood Islamic income fund have shown a positive trend in the FY 2011
but in FY 2012 it has shown a negative trend which is about 103.4.

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Bellow the graph 2.5 provides view of the Trend analysis of the balance sheet of Dawood
clearly shown in the graph below.
Graph= 2.5 Balance Sheet Trend Analysis of Dawood:

DAWOOD ISLAMIC INCOME FUND:
0
20
40
60
80
100
120
140
160
180
2010 2011 2012
Balance Sheet Trend Analysis of Dawood
Total Assets
Bank Balances
Investments
Total Liabilities
NET ASSETS
Number of Units in Issue
Net Asset Value per Unit
(Face Value per Unit Rs.
100/-)
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INCOME STATEMENT:
TREND ANALYSIS:
Table= 2.91 Income Statement Trend analysis of Dawood:
Income
TheProfit/Return on 2010 2011 2012
TheTerm Finance Certificates 100 55.73924 57.02655
Placements 100 32.35622 32.94532
TheTreasury Bills 100 1270.655 1271.795
TheTerm Deposit Receipts
TheBank Balances 100 168.0845 223.9867
TheCapital Gain on TheSale of Securities - Net 100 542.2612 27.50981
TheUnrealized Diminution in TheValue of Investments
at TheFair Value Through TheProfit & Loss Account
Total Income 100 125.5901 37.58208
Expenses
TheImpairment Loss on TheInvestments 100 28.54799 0
TheRemuneration of TheManagement Company 100 66.3327 78.48702
TheRemuneration of Trustee 100 79.5044 71.67363
Annual Fee of SECP 100 66.32913 78.48257
TheSecurities Transactions Cost 100 40.81244 22.0524
TheAuditors' Remuneration 100 107.9661 123.2203
Financial Charges 100 5.67925 5.491034
TheLegal and Professional 100 125 147.5
TheWorkers Welfare Fund 100 87.65503 37.39714
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Listing Fee 100 100 100
Printing Charges 100 135.4382 192.1381
Total Expenses 100 31.5311 5.524034
TheNET (LOSS) FROM OPERATING ACTIVITIES 100 -203.524 -74.5897
Element of Income and Capital Gains in Prices
of Units Sold Less than Those in Units Redeemed - Net 100 -13.6305 -1.5743
TheNET INCOME FOR THE YEAR BEFORE TAX 100 87.65501 37.37066
TheNET INCOME FOR THE YEAR CARRIED TO
TheDISTRIBUTION STATEMENT 100 87.65501 37.37066

The trend Analysis of the Income statement of DawoodIslamic Income Fund depicts
different scenario over different time period. A positive trend has been noted in the term finance
certificate of the company in the Financial Year of 2011 and 2012, which is about 55.7 in 2011
and 57 in 2012.

Bank Balance of Dawood Islamic income fund have shown a positive trend in the FY
2011 and 2012, which is about 168 in 2011 and 223.9 in 2012.

Total Income of the company has shown a positive trend in the FY 2011which is

Total expenses of the company have shown a positive trend in the FY 2011which is

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Net income of Dawood Islamic income fund has shown a positive trend in the FY
2011which is 87.6 but in FY 2012 it has shown a negative trend which is about 37.3.
Bellow the graph 2.6 provides view of the Trend analysis of the Income Statement of
Dawood Islamic income fund, as we have stated that we have taken all the values of FY 2010
very clearly shown in the graph below,
Graph= 2.6 Income Statement Trend Analysis of Dawood:

0
50
100
150
200
250
2010 2011 2012
Income Statement Trend Analysis of Dawood
Total Income
- Term Finance Certificates
- Bank Balances
Total Expenses
NET INCOME FOR THE YEAR
BEFORE TAXATION
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COMPARISION OF THE RESULTS OF CONVENTIONAL & ISLAMIC INCOME
FUNDS

RESULTS OF CONVENTIONAL INCOME FUNDS:
We have calculated different ratios for the selected income funds, the result provide a
useful information about the performance of the conventional income fund in the specific time
period. Different income funds provided different results for the different time period, in one
period the specific fund have highest ratio and in other period the other fund have the highest
ratio.
According to the ratios of return on asset, return on equity Alfalah income fund have the
highest ratios in the first two years as (in 2010, 2011) but in 2012 ABL have the highest ratios of
return on asset& equity as compare to the other income funds.
ABL have the highest ratios profit margins for all the consecutive years as compare to the
other income funds.
The net asset per unit value is high for the AKD income fund as compared to the other
selected Islamic income fund.
The earning per unit value is high for Alfalah income fund in the first two year but in
third year AKD have the highest earning per unit as compared to the other selected income
funds.
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The current ratio and net working capital ratios values are high for AKD income fund in
the as compared to the other selected income fund in the first two years but in the last year
Alfalah have the highest values for these ratios.
Over all the ABL income fund is the best fund to the investment point of view as it
provides highreturns in the year 2012 as compared to the other selected income fund. The
different profitability ratios are given bellow in table 3 for the ABL income fund.
Table= 3 Profitability ratios of ABL:
ABL Income Fund Different ratios 2010 2011 2012
Return on assets 11.2% 9.7% 14.4%
Return on Equity 16.2% 21.1% 21.1%
Profit Margin 33.3% 27.4% 19.7%
RESULTS OF ISLAMIC INCOME FUNDS:
According to the ratios of return on asset, return on equity and the profit margins Al-
Meezan Islamic income fund have the highest ratios as compare to the other Islamic income
funds.
The net asset per unit value is high for the IGI Islamic income fund as compared to the
other selected Islamic income fund.
The earning per unit value is high for Dawood Islamic income fund in the first two year
but in third year IGI have the highest earning per unit as compared to the other selected Islamic
income fund.
The current ratio and net working capital ratios values are high for IGI Islamic income
fund in the as compared to the other selected Islamic income fund, which shows that IGI more
current asset to pay its short term obligations.
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Over all the Al-Meezan Islamic income fund is the best fund to the investment point of
view as it provides high returns as compared to the other selected Islamic income fund. The
different profitability ratios are given bellow in table 4 for the Al-Meezan Islamic income fund.

Table= 4 profitability ratios of Al-Meezan:
Al-Meezan different ratios 2010 2011 2012
Return on assets 30.1% 25.0% 20.4%
Return on Equity 30.6% 25.5% 20.6%
Profit Margin 33.3% 27.4% 19.7%

THE BEST INOME FUND AMONG THE SELECTED INCOME FUNDS
From the comparison of selected Conventional and Islamic Income funds we come to
know that Al-Meezan Islamic income fund is the best fund among all the selected funds to the
investment point of view as it provides highest returns as compared to the other selected income
funds.
As we can examine from table 3 and 4 of this chapter, where we can see that Al-Meezan
profitability ratios are high than ABL income fund in almost all the consecutive years of the
analysis.

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CONCLUSION AND RECOMMENDATION:

This project provided a brief introduction of the Pakistani mutual income funds from both the
conventional Islamic mutual funds and has analyzed the performance of the selected mutual
funds by using different techniques of evaluation. The Pakistani mutual fund industry has the
potential to add value because the industry is developing day by day and general public are
takingdeep interest to invest in these mutual funds. The performance of the selected mutual
income funds as we calculated by using different techniques shows that they have provided a
good return in the previous years. Their returns are positive. The mutual fund sector in the
foreign countries is very large in size and capital as compared to the Pakistan mutual fund
industry. Presently the economic condition of our country is not very good, but the mutual funds
have provided better returns.
This project has covered the evaluation of the selected conventional and Islamic mutual
income funds from the mutual fund sector of Pakistan by using different techniques. Three
companies from the conventional mutual income fund and three companies form the Islamic
mutual income fund were selected for the analysis. Detailed introductions of all the selected
conventional and Islamic income funds companies have been given.
In the ratios analysis part of the study we have calculated different ratios for both the
conventional and Islamic mutual income funds.
We have calculated different ratios for the selected Islamic income funds, the result
provide a useful information about the performance of the Islamic income fund in the specific
time period. Different Islamic income funds provided different results for the different time
period, in one period the specific fund have high ratio and in other period the other fund have
high ratio.

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From the ratios analysis of the conventional income fund we have conclude that ABL
income fund is the best fund to the investment point of view as it provides highreturns in the year
2012 as compared to the other selected income fund.
From the ratios analysis of the Islamic income fund we have conclude that Al-Meezan
Islamic income fund is the best fund to the investment point of view as it provides high returns as
compared to the other selected Islamic income fund.

From the comparison of selected Conventional and Islamic Income funds we have
concluded that Al-Meezan Islamic income fund is the best fund among all the selected funds to
the investment point of view as it provides highest returns as compared to the other selected
income funds.
The Recommendations:
In the following lines there are some recommendations for the investors and the fund
management:
The education about mutual income funds must be transmitted through the established
mediums like interviews of the funds managers on the television, seminars, roads
shows newspaper and through the internet.
Distribution system can be upgraded from the focusing on the rural areas like the post
offices which can play an important role in the improvement of the distribution
network.
The cost of investment should be should be decreased so that the lower class
population can also afford to invest in these mutual income funds.
More and more Islamic products can be beneficial in attracting the investors towards
theses Islamic mutual income funds.
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General public is still unaware of these mutual income funds because of the lack of the
marketing efforts in the market so the Proper marketing of these products is very
important factor for the mutual income funds.
Creating the desire among the population to save and invest.

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REFERENCES:

Mutual funds of Pakistan, Last retrieved 2013 www.mutualfundspakistan.com
Mutual funds Association of Pakistan, Last retrieved 2013www.mufap.com.pk
Alfalah Income Fund, Last retrieved 2013 www.alfalahghp.com
Allied Bank Limited Income Fund, Last retrieved 2013 www.ablamc.com
AKD Income Fund, Last retrieved 2013 www.akdinvestment.com
Al-Meezan Islamic Income Fund, Last retrieved 2013 www.almeezangroup.com
IGI Islamic Income Fund, Last retrieved 2013 www.igifunds.com.pk
Dawood Islamic Income Fund, Last retrieved 2013 www.edawood.com
Security & Exchange Commission of Pak, Last retrieved 2013 www.secp.gov.pk
State bank of Pakistan, Last retrieved 2013 www.sbp.org.pk
Last retrieved 2013 www.demonstratingvalue.org
Last retrieved 2013 www.slideshare.net
Last retrieved 2013 www.islamiceconomicsproject.wordpress.com
Last retrieved 2013 www.x.dawn.com
Last retrieved 2013 www.mutualfundpak.blogspot.com
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Last retrieved 2013 www.thefinancialdaily.com
Last retrieved 2013 www.ifresource.com
Last retrieved 2013 www.academia.edu
Last retrieved 2013 www.tribune.com.pk
Last retrieved 2013 www.svtuition.org
Last retrieved 2013 www.bloomberg.com

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