UNITED MONEY MARKET FUND (UMF)

Fund Manager Report: April 2007

Investment Objective:
United Money Market Fund (UMF) is an Open-End Money Market Fund, investing in a diversified portfolio of low risk assets. The fund seeks to provide attractive daily returns while maintaining comparatively high liquidity.

UMF Performance
Since Inception Monthly: April 2007 Standard Deviation* Sharpe Ratio**

UMF
8.40% 9.35% 3.10% 0.43

Benchmark
5.48% 9.18% 3.40% 0.11

Money Market Review & Outlook:

The SBP seems to be walking a tight rope given the multiple challenges of rising inflation (food inflation), burgeoning deficits and exchange rate management this financial year. The signals from the Central Bank appear to be changing already as it intends to continue with a neutral monetary policy stance. The huge foreign inflows have resulted in a buildup of Net Foreign Assets (NFA) of Commercial banks; this in turn increases the money growth and eventually ends up fueling even higher inflation. Private sector credit growth has shown signs of respite showing a decline of 24% to Rs. 262.8 bn against the targeted amount of Rs. 390 bn in the period July-March of FY'07. However higher government borrowing at Rs. 129 bn will offset the net impact on monetary growth. CPI inflation for March 07 stood at 7.67% over the same month last year (food inflation up by 10.74%). On the deficits front, trade deficit widened to it highest ever level of US$9.985 bn in the first nine months (July-March) of this fiscal, whereas the current account deficit increased to US$5.56 bn during the first eight months of this fiscal. In the scheduled T-bill auctions during the month, T-bill yields increased across all tenors to 8.69%, 8.90% and 9.088% in the 3 months, 6 months & 12 months tenors respectively. Rates in tenors of 1 week, 1 month and 3 months closed at 9.10-9.30%, 8.85-8.95% and 8.80-8.85% respectively. In the PIB auction conducted during the month, yields slipped to 10.13%, 9.62% and 9.33% in tenors of 10 years, 5 years and 3 years respectively signaling a possible downward revision at the longer end of the yield curve. Secondary market trades in 10-year PIB took place in the range of 10.06%-10.09% post the auction. There were strong rumors that in order to check the surplus liquidity in the system, the SBP may raise the Statutory Liquidity Requirement (SLR) or Cash Reserve Requirement(CRR) which would reduce the liquidity flow and push KIBOR and call market rates upwards.

*Annual since last 3Yrs.**3M T-Bill yield is used as a risk-free rate.

Mar 31 '07
Fund Size NAV Rs. 6,449 mn Rs. 107.6984

Apr 30 '07
Rs. 7,417 mn Rs. 108.5259 + 15.01% + 0.77%

Fund Information
Fund Type Fund Launch Date Benchmark Listing Trustee Auditors Management Co. Rating Fund Rating Minimum Investment Amount Sales Load Management Fee Open End Money Market Fund November 5, 2002 1M KIBOR Karachi Stock Exchange (KSE) Central Depository Company (CDC) KPMG-Taseer Hadi & Co. AM-2 Minus (JCR-VIS) A Plus (JCR-VIS) Rs. 5,000 Nil 1.50% p.a.

UMF Performance Review & Outlook:

The month under review is marked by a commendable increase in the fund size of 15% to Rs. 7.41 bn. The monthly yield stood at 9.35% p.a. showing an improvement from last month's 9.00% p.a. Owing to excess liquidity in the money market, rates remained on the lower side. 3-months call placements ranged from 9.25%-9.75% p.a. while the rates on TDRs and placement with NBFIs further slipped by 50bps on average to 10.25%-10.75% p.a. Investment in this asset class was maintained at the 22% level of the previous month. On the CFS front, despite a substantial increase in the CFS quantum which closed the month at the cap of Rs. 55 bn, rates did not improve due to excess liquidity in the system. Despite this, CFS remained our top pick and investment in this asset class at month end closed at 44% of net assets. With the increase in fund size, we maintained our aggressive stance in accumulating TFCs from the primary as well as secondary markets. On an enhanced fund size, the exposure to this asset class stood at 20% of net assets (on an absolute basis, this increased by over 16% from last month). Investment in Government Securities stood at 2% of net assets as we participated in the PIB Auction on 21st April. We continue to be buyers in the Government Securities market at our specified target levels which will help us to build a robust portfolio offering superior returns. In case of an increase in the SLR or CRR as indicated above, there will be a consequent increase in rates across asset classes such as TDR / NBFI Placments and CFS - the Fund Manager is prepared for this eventuality and will re-align the portfolio accordingly.
Cash & Cash Equivalents 12%

Asset Allocation - Apr '07

Government Securities 2%

Others 1%

Term Finance Certificates 20%

Continuous Funding System 44%

Placements/ Term Deposits 22%

Asset Allocation (% of NAV)

CFS Placements/ Term Deposits Term Finance Certificates Cash & Equivalents Others

Feb'07
48% 16% 23% 12% 1%

Mar'07
43% 22% 19% 13% 3%

Apr'07
44% 22% 20% 12% 3%
11.00% 10.50% 10.00%

UMF v/s Benchmark

Yield

9.50% 9.00% 8.50% 8.00% Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07

Key Interest Rates

KIBOR: (1M, 6M) T-Bill Cut-Off: (3M, 6M, 12M) PIB Cut-Off: (3Yr, 5Yr, 10Yr) Discount Rate: CPI (Mar): Y-o-Y basis Repo Rate: (Overnight, 1M, 3M)
Monthly Yield

(9.18%, 10.00%) (8.69%, 8.90%, 9.08%) (9.33%, 9.62%, 10.13%) 9.50% 7.67% (7.88%, 8.76%, 8.83%)

Date

UMF 1M Kibor

Jul'06
10.57% 8.93% 8.23%

Aug'06
9.42% 9.37% 8.70%

Sep'06
8.77% 9.24% 8.62%

Oct'06
9.84% 9.40% 8.65%

Nov'06
10.55% 9.38% 8.71%

Dec'06
10.81% 9.59% 8.69%

Jan'07
10.19% 9.62% 8.71%

Feb'07
9.77% 9.47% 8.80%

Mar'07
9.00% 9.44% 8.92%

Apr'07
9.35% 9.18% 8.80%

May'07

Jun'07

YTD
10.20% 9.36% 8.68%

UMF 1M KIBOR PKRV (16-30D)

Disclaimer: Information presented in this report has been generated from reliable sources. It is being circulated for information purposes only and we are not soliciting any action based on it. UBL Fund Managers does not guarantee the accuracy of this information and does not assume any liability on this. This report or any part of it may not be reproduced, published or distributed without prior permission.

UBL Fund Managers Limited.

Corporate Office: 11th Floor, Executive Tower, Dolmen City Building, Block 4, Clifton, Karachi. Phone: (92-21) 5290080-95 Fax:(92-21) 5290070 Operations Office: 5th Floor Office Towers,Technocity, Hasrat Mohani Road, Off. I.I. Chundrigar Road, Karachi. UAN: (92-21) 111-825-262, Fax: (92-21) 2214930 Toll Free: 0800-00026, Website: www.UBLfunds.com, E-mail :info@ublfunds.com, SMS: "INVEST" to 260 (for Mobilink users only)

UNITED GROWTH & INCOME FUND (UGIF)

Fund Manager Report: April 2007
Investment Objective:
United Growth & Income Fund (UGIF) is an Open-End Income Fund, investing in medium to long term fixed income Instruments. The fund seeks to generate superior long -term risk adjusted returns keeping a balance of income and growth while preserving the capital over the long term.

UGIF Performance
Since Public Launch Monthly: April 2007 Standard Deviation* Sharpe Ratio**

UGIF
10.61% 11.26% 1.20% 2.48

Benchmark
10.56% 10.66% 4.32% 0.51

Fixed Income Review & Outlook:

The SBP seems to be walking a tight rope given the multiple challenges of rising inflation (food inflation), burgeoning deficits and exchange rate management this financial year. The signals from the Central Bank appear to be changing already as it intends to continue with a neutral monetary policy stance. The huge foreign inflows have resulted in a buildup of Net Foreign Assets (NFA) of Commercial banks; this in turn increases the money growth and eventually ends up fueling even higher inflation. Private sector credit growth has shown signs of respite showing a decline of 24% to Rs. 262.8 bn against the targeted amount of Rs. 390 bn in the period July-March of FY'07. However higher government borrowing at Rs. 129 bn will offset the net impact on monetary growth. CPI inflation for March 07 stood at 7.67% over the same month last year (food inflation up by 10.74%). On the deficits front, trade deficit widened to it highest ever level of US$9.985 bn in the first nine months (July-March) of this fiscal, whereas the current account deficit increased to US$5.56 bn during the first eight months of this fiscal. In the scheduled T-bill auctions during the month, T-bill yields increased across all tenors to 8.69%, 8.90% and 9.088% in the 3 months, 6 months & 12 months tenors respectively. Rates in tenors of 1 week, 1 month and 3 months closed at 9.10-9.30%, 8.85-8.95% and 8.80-8.85% respectively. In the PIB auction conducted during the month, yields slipped to 10.13%, 9.62% and 9.33% in tenors of 10 years, 5 years and 3 years respectively signaling a possible downward revision at the longer end of the yield curve. Secondary market trades in 10-year PIB took place in the range of 10.06%-10.09% post the auction. There were strong rumors that in order to check the surplus liquidity in the system, the SBP may raise the Statutory Liquidity Requirement (SLR) or Cash Reserve Requirement(CRR) which would reduce the liquidity flow and push KIBOR and call market rates upwards.

*Daily basis annualized since inception.**3M T-Bill yield is used as a risk-free rate.

Mar 31 '07
Fund Size NAV Rs. 5,968 mn Rs. 108.8292

Apr 30 '07
Rs. 7,081 mn Rs. 109.8366 + 18.64% + 0.93%

Fund Information
Fund Type Fund Launch Date Benchmark Listing Trustee Auditors Management Co. Rating Fund Rating Minimum Investment Amount Sales Load (Income Units) Sales Load (Growth Units) Management Fee Open End Income Fund March 2, 2006 Average of 1Yr & 3Yr KIBOR Karachi Stock Exchange (KSE) Central Depository Company (CDC) KPMG-Taseer Hadi & Co. AM-2 Minus (JCR-VIS) Not yet rated Rs. 5,000 1.5% (Front-End) Stepped Down Back End Structure 1.50% p.a.

Asset Allocation - Apr '07

Government Securities 2% Spreads 18% Others 1% Term Finance Certificates 19%

UGIF Performance Review & Outlook:

During the month under review, the Fund size increased by over 18% to cross the Rs. 7 bn mark with the monthly yield at 11.26% p.a. Our blended approach to investing in fixed income securities / instruments has resulted in us providing attractive returns and at the same time tempering the volatility in varying market conditions. Investment in GOP securities on an enhanced fund size stood at 2% of net assets since we participated both in the PIB Auction and the secondary market. We expect to significantly increase our exposure in this asset class in order to build up our long term oriented portfolio and at the same time take advantage of market movements to realize trading gains. Investment in TFCs increased to 19% of net assets at month end on an enhanced fund size reflecting both primary market disbursements from our end and secondary market purchases. As the fund size increases, there is obviously a pressure on the Fund Manager to deploy funds in long term high yielding assets such as Term Finance Certificates. However, the quality of assets to be procured by the Fund is very important and investment proposals for TFCs are critically evaluated. Various factors such as their industry dynamics, strength of sponsors, track record, future growth potential etc. are looked at as we aim to be very prudent, yet aggressive in this area of portfolio building. Among the short tenor investments, spread transactions constituted 18% of net assets at month end where deployment was made in a very diversified manner to mitigate risk. Investment in CFS was reduced to 26% at end April against 37% at the previous month's end. TDR/ NBFI placements with high rated commercial banks and NBFIs with solid fundamentals stayed at around the 21% level at month end.

Cash & Cash Equivalents 11% Continuous Funding system 26%

Placements/ Term Deposits 21%

Asset Allocation (% of NAV)

CFS Placements/ Term Deposits Term Finance Certificates Spreads Cash & Equivalents Others

Feb'07
39% 13% 12% 21% 14% 1%

Mar'07
37% 24% 18% 10% 9% 2%

Apr'07
26% 21% 19% 18% 11% 3%

UGIF v/s Benchmark

20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07

Key Interest Rates

KIBOR: (6M, 1Yr, 3Yr) T-Bill Cut-Off: (3M, 6M, 12M) PIB Cut-Off: (3Yr, 5Yr, 10Yr) Discount Rate: CPI (Mar): Y-o-Y basis Repo Rate: (Overnight, 1M, 3M)
Monthly Yield

(10.00%, 10.38%, 10.93%) (8.69%, 8.90%, 9.08%) (9.33%, 9.62%, 10.13%) 9.50% 7.67% (7.88%, 8.76%, 8.83%)

Yield

Date

UGIF 1& 3Yr Kibor (avg)

Jul'06

Aug'06
12.77% 10.85%

Sep'06
5.80% 10.83%

Oct'06
9.11% 10.86%

Nov'06
12.20% 10.90%

Dec'06
12.06% 10.93%

Jan'07
11.06% 10.94%

Feb'07
9.78% 10.90%

Mar'07
9.23% 10.86%

Apr'07
11.26% 10.66%

May'07

Jun'07

YTD
11.67% 10.80%

UGIF 18.37% 1&3Yr KIBOR 10.30%

Disclaimer: Information presented in this report has been generated from reliable sources. It is being circulated for information purposes only and we are not soliciting any action based on it. UBL Fund Managers does not guarantee the accuracy of this information and does not assume any liability on this. This report or any part of it may not be reproduced, published or distributed without prior permission.

UBL Fund Managers Limited.

Corporate Office: 11th Floor, Executive Tower, Dolmen City Building, Block 4, Clifton, Karachi. Phone: (92-21) 5290080-95 Fax:(92-21) 5290070 Operations Office: 5th Floor Office Towers,Technocity, Hasrat Mohani Road, Off. I.I. Chundrigar Road, Karachi. UAN: (92-21) 111-825-262, Fax: (92-21) 2214930 Toll Free: 0800-00026, Website: www.UBLfunds.com, E-mail :info@ublfunds.com, SMS: "INVEST" to 260 (for Mobilink users only)

UNITED STOCK ADVANTAGE FUND (USF)

Fund Manager Report: April 2007
Investment Objective:
United Stock Advantage Fund (USF) is an Open-End Equity Fund, investing primarily in equities listed on the Karachi Stock Exchange (KSE). The Fund seeks to maximize total returns and outperform the KSE-100 Index benchmark by investing in a combination of securities offering long term capital gains and dividend yield potential.

USF Performance
Since Public Launch Monthly: April 2007 Standard Deviation* Sharpe Ratio** Beta Price-to-Earning Ratio Dividend Yield Value at Risk^

USF
17.84% 10.72% 14.90% 0.99 0.74 11.8x 4.00% 1.10%

Benchmark
15.96% 9.74% 18.40% 0.64 1.00 11.5x 4.98% 1.80%

Stock Market Review & Outlook:

The KSE-100 Index gained around 1,100 points during the month-in-review and closed at 12,369 (up by 9.74%) which was also an all time high. Despite negative news on the political front, the market remained bullish throughout the month due to major buying activity of foreign fund managers whose main focus was the Banking sector (market capitalization of this sector alone went up by 14%). High investor interest can also be gauged by the significantly heavier average daily volume of 265 mn shares and a cumulative net inflow of USD 43.8 mn in SCRA during the month. March'07 results were in full swing with most of the excitement centered around the first quarter banking and third quarter E&P sector results; both these sectors have performed quite well with respect to earnings and the consequent impact on stock prices was witnessed in the month of April. Results of other blue-chip companies such as PTCL and Engro Chemicals (which also gave a Rights Issue) were below expectations; yet the market did not react very negatively. On the privatization front, the issue of Attock Group's participation in PSO's still lies with the courts and trading activity in the scrip has become very range-bound. The pre-bid meeting for NITLs privatization was also held in April wherein the modalities for splitting up of the portfolio of the largest state owned mutual fund was discussed - no indications of a bidding date have however been provided. The continous inflow of liquidity in the market from both domestic and foreign fronts is expected to keep the market buoyant in the coming months. With the CFS quantum at its ceiling of PKR 55 bn in the market, there is a lot of talk regarding an increase which is dependent on negotiations between the stake-holders and the SECP. The Federal Budget, due in June'07, which usually causes jitters in the market from before is expected to be investor and business friendly - hence not much negative impact of this is likely. May 19th has been set as the bidding date of PSO and in case the Government is successful in selling a strategic stake in the Company, the market's positive momentum will be reinforced. We remain confident on the long-term growth outlook of the market and will continue our accumulation on dips strategy in the market.

*Daily annualized since inception.**3M T-Bill yield used as risk-free rate.^ If usual conditions prevail, the fund can expect that with a probability of 95%, a change in the value of it's portfolio would not result in a decrease of more than 1.10% during 1 day.

Mar 31 '07
Fund Size NAV Rs. 522 mn Rs. 106.43

Apr 30 '07
Rs. 611 mn Rs. 117.84 + 17.04% + 10.72%

Fund Information
Fund Type Fund Launch Date Benchmark Listing Trustee Auditors Management Co. Rating Fund Rating Minimum Investment Amount Sales Load (Front - End) Sales Load (Back - End) Management Fee Open End Equity Fund August 4, 2006 KSE 100 Index Karachi Stock Exchange (KSE) Central Depository Company (CDC) KPMG-Taseer Hadi & Co. AM-2 Minus (JCR-VIS) Not yet rated Rs. 5,000 2.50% Nil 3.00% p.a

Asset Allocation- Apr '07

CFS & Cash 6%

USF Performance Review & Outlook:

Fund size increased by 17% on a closing basis at April end while the NAV appreciated by 10.72% against the benchmark appreciation of 9.74%. Given the strong earnings of Commercial Banks, the Fund Manager made a timely entry into the sector during the month in order to take advantage of an anticipated run-up in prices. Fertilizer and Cement sector exposure was reduced with a profit taking view, although the Fund Manager still remains positive on the long term fundamentals of both these sectors. Attock Petroleum was added on in the Oil & Gas Marketing sector given its excellent third quarter earnings and product mix differentiation from the other giants such as Shell & PSO. The month ended with the exposure in equities at the 94% level as compared to 88% at the end of March. The Fund Manager continues to remain vigilant with respect to the various corporate results, sector & company specific news and overall market conditions; our active asset reallocation strategy has so far proved successful in outperforming the Benchmark and we aim to continue this in the coming months.
Equities 94%

Sector Allocation (% of NAV)

Commercial Banks Oil & Gas Exploration Cement Automobile Assembler Oil & Gas Marketing Companies Fertilizer Investment Banks Chemicals Others

Yield

Feb'07 13% 19% 11% 8% 5% 11% 2% 4% 6%

Mar'07 11% 20% 14% 10% 1% 13% 8% 4% 7%

Apr'07 20% 20% 9% 9% 7% 7% 6% 5% 11%

USF v/s Benchmark

20% 15% 10% 5% 0%

Top Ten Holdings of USF

PICIC National Bank of Pakistan Askari Commercial Bank Lucky Cement Pak Suzuki Motors
Monthly Yield

Pakistan Oil Fields Oil & Gas Development Co. Pakistan Petroleum Attock Petroleum Fauji Fertilizer Co.

-5% -10%

31-Aug- 30-Sep- 31-Oct- 30-Nov- 31-Dec- 31-Jan- 28-Feb- 31-Mar- 30-Apr06 06 06 06 06 07 07 07 07

USF KSE 100 Index

Jul'06
-

Aug'06
-3.41% -4.10%

Sep'06
3.68% 4.46%

Oct'06
3.88% 7.75%

Nov'06
-3.64% -6.26%

Dec'06
-4.89% -5.45%

Jan'07
9.32% 12.27%

Feb'07
0.25% -0.82%

Mar'07
1.86% 0.82%

Apr'07
10.72% 9.74%

May'07

Jun'07

YTD
17.84% 15.96%

USF KSE - 100

Disclaimer: Information presented in this report has been generated from reliable sources. It is being circulated for information purposes only and we are not soliciting any action based on it. UBL Fund Managers does not guarantee the accuracy of this information and does not assume any liability on this. This report or any part of it may not be reproduced, published or distributed without prior permission.

UBL Fund Managers Limited.

Corporate Office: 11th Floor, Executive Tower, Dolmen City Building, Block 4, Clifton, Karachi. Phone: (92-21) 5290080-95 Fax:(92-21) 5290070 Operations Office: 5th Floor Office Towers,Technocity, Hasrat Mohani Road, Off. I.I. Chundrigar Road, Karachi. UAN: (92-21) 111-825-262, Fax: (92-21) 2214930 Toll Free: 0800-00026, Website: www.UBLfunds.com, E-mail :info@ublfunds.com, SMS: "INVEST" to 260 (for Mobilink users only)

UNITED COMPOSITE ISLAMIC FUND (UCIF)

Fund Manager Report: April 2007
Investment Objective:
United Composite Islamic Fund (UCIF) is an Open-End Fund which offers it's investors an opportunity to invest in a diversified portfolio of Shariah Compliant investments. The Fund seeks to maximize medium to long term returns for a given level of risk.

UCIF Performance
Since Public Launch Monthly: April 2007 Standard deviation* Sharpe Ratio**

UCIF
9.57% 4.78% 8.10% 2.18

Benchmark
7.57% 4.04% 7.00% 1.78

Market Review & Outlook:

The KSE-100 Index gained around 1,100 points during the month-in-review and closed at 12,369 (up by 9.74%) which was also an all time high. Despite negative news on the political front, the market remained bullish throughout the month due to major buying activity of foreign fund managers whose main focus was the Banking sector (market capitalization of this sector alone went up by 14%). High investor interest can also be gauged by the significantly heavier average daily volume of 265 mn shares and a cumulative net inflow of USD 43.8 mn in SCRA during the month. March'07 results were in full swing with most of the excitement centered around the first quarter banking and third quarter E&P sector results; both these sectors have performed quite well with respect to earnings and the consequent impact on stock prices was witnessed in the month of April. Results of other blue-chip companies such as PTCL and Engro Chemicals (which also gave a Rights Issue) were below expectations; yet the market did not react very negatively. On the privatization front, the issue of Attock Group's participation in PSO's still lies with the courts and trading activity in the scrip has become very range-bound. The pre-bid meeting for NITLs privatization was also held in April wherein the modalities for splitting up of the portfolio of the largest state owned mutual fund was discussed - no indications of a bidding date have however been provided. The continous inflow of liquidity in the market from both domestic and foreign fronts is expected to keep the market buoyant in the coming months. With the CFS quantum at its ceiling of PKR 55 bn in the market, there is a lot of talk regarding an increase which is dependent on negotiations between the stake-holders and the SECP. The Federal Budget, due in June'07, which usually causes jitters in the market from before is expected to be investor and business friendly - hence not much negative impact of this is likely. May 19th has been set as the bidding date of PSO and in case the Government is successful in selling a strategic stake in the Company, the market's positive momentum will be reinforced. We remain confident on the long-term growth outlook of the market and will continue our accumulation on dips strategy in the market.

*Daily basis annualized since inception.**3M T-Bill yield is used as a risk-free rate.

Mar 31 '07
Fund Size NAV Rs. 866 mn Rs. 104.57

Apr 30 '07
Rs. 895 mn Rs. 109.57 + 3.35% + 4.78%

Fund Information
Fund Type Fund Launch Date Benchmark Listing Trustee Auditors Management Co. Rating Fund Rating Minimum Investment Amount Sales Load (Front - End) Sales Load (Back - End) Management Fee Open End Composite Islamic Fund December 24, 2006 50% DJIMPK Index + 50% Fixed Income Shariah Compliant Instruments Islamabad Stock Exchange (ISE) Central Depository Company (CDC) KPMG-Taseer Hadi & Co. AM-2 Minus (JCR-VIS) Not yet rated Rs. 5,000 2.50% Nil 3.00% p.a

Asset Allocation- Apr '07

UCIF Performance Review & Outlook:

Fund yield was up by 4.78% as compared to the Benchmark which was up by 4.04%. Fund size grew by 3.35% in the month of April which clearly depicts the continued interest of our valued investors. We increased our exposure mainly in the Automobile Assembler, Technology & Communication and Cement sectors on the basis of attractive valuations and long-term growth prospects. On the income side, the Fund continued to invest in spread transactions and bank deposits that contributed to reduction of fund volatility and return optimization. Further, in close co-ordination with our Shariah Advisors, we have given in-principle commitments for investment in a few Sukuk Instruments in the primary market; disbursements against these are expected in the month of June. The encouraging aspect is that market for long-term Shariah Compliant sukuks and other arrangements such as diminishing musharkah is picking up rapidly and across diverse sectors the Fund Manager feels that as and when a few of these transactions are successfully completed, the multiplier effect will be triggered wherein the deal flow in the pipeline (Corporates wanting to adopt structured Shariah Compliant Financing Modes) will be executed more rapidly. Our international markets investment strategy is on track and we hope to be invested in some high quality international investments before the year-end in June'07.
Spreads 28%

Equities 56%

Cash & Equivalents 16%

Sector Allocation (% of NAV)

Oil & Gas Exploration Automobile Assembler Fertilizer Technology & Communication Oil & Gas Marketing Companies Chemicals Cement Paper & Board Others Oil & Gas Development Co. Pakistan Oil Fields Pakistan Petroleum DG Khan Cement Pakistan Telecommunication
Monthly Yield

Feb'07 23% 4% 12% 0% 8% 3% 1% 2% 1%

Mar'07 14% 6% 12% 2% 5% 3% 2% 2% 1%

Apr'07 15% 11% 9% 6% 3% 4% 4% 3% 1%

12.0% 10.0% 8.0% Yield 6.0% 4.0% 2.0% 0.0%

UCIF v/s Benchmark

Top Ten Equity Holdings of UCIF

Engro Chemicals Fauji Fertilizer Co. Nishat Mills Pakistan Suzuki Motors Pakistan State Oil

31-Dec- 15-Jan- 31-Jan- 15-Feb- 28-Feb- 15-Mar- 31-Mar- 15-Apr- 30-Apr06 07 07 07 07 07 07 07 07 Date
UCIF Benchmark

Jul'06
-

Aug'06
-

Sep'06
-

Oct'06
-

Nov'06
-

Dec'06
0.13% 0.71%

Jan'07
4.79% 3.92%

Feb'07
-0.07% -0.42%

Mar'07
-0.28% -0.77%

Apr'07 May'07
4.78% 4.04%

Jun'07

YTD
9.57% 7.57%

UCIF Benchmark

Disclaimer: Information presented in this report has been generated from reliable sources. It is being circulated for information purposes only and we are not soliciting any action based on it. UBL Fund Managers does not guarantee the accuracy of this information and does not assume any liability on this.This report or any part of it may not be reproduced, published or distributed without prior permission.

UBL Fund Managers Limited.

Corporate Office: 11th Floor, Executive Tower, Dolmen City Building, Block 4, Clifton, Karachi. Phone: (92-21) 5290080-95 Fax:(92-21) 5290070 Operations Office: 5th Floor Office Towers,Technocity, Hasrat Mohani Road, Off. I.I. Chundrigar Road, Karachi. UAN: (92-21) 111-825-262, Fax: (92-21) 2214930 Toll Free: 0800-00026, Website: www.UBLfunds.com, E-mail :info@ublfunds.com, SMS: "INVEST" to 260 (for Mobilink users only)