HABIB ASSET MANAGEMENT LIMITED

Habib Asset Management Limited an associate company of Bank AL-Habib Limited has been established with the objective to float
open-end mutual funds for different classes of investors. So far, Habib Asset Management Limited has launched First Habib Income
Fund and First Habib Stock Fund, keeping in view the aim to provide alternative investment solutions to investors.

MONTHLY SPOTLIGHT
 State Bank of Pakistan announced a 50bps increase in its benchmark interest rate from 12.5% to 13% through monetary policy
statement announced on July 30, 2010.
 FBR has constituted a high level committee comprising senior brokers of Karachi Stock Exchange and tax officials to finalise rules
on the applicability of capital gains tax.
 Recommendations of SECP sub committee on Margin Trading System has been sent to SECP for final review and approval.
 According to Federal Bureau of Statistics, Pakistan exports grew by $19.382 billion during 2009-10, up by 10% over $17.688 billion
for the same period last year.
 Government is in the process of identifying about 2 billion dollar projects for energy sector for which funding would be sought
under Kerry Lugar Bill.
MONEY MARKET STATISTICS STOCK MARKET STATISTICS
1M 3M 6M 1Y Karachi Stock Exchange July 2010 June 2010
KIBOR 100 Index 10,519.02 9,721.91
Jul 2010 12.39 12.33 12.42 12.76 High 10,537.95 9,859.42
Jun 2010 12.45 12.29 12.37 12.72 Low 9,544.81 9,131.11
T-BILL
Year to Date Return 8.2% 35.74%
Jul2010 NA 12.10 12.37 12.46
Foreign Investors Portfolio Investments (Rs.)
Jun 2010 NA 12.10 12.30 12.42
PKRV Gross Buy 6,691,275,455 6,693,806,847
Jul 2010 12.02 12.07 12.31 12.42 Gross Sell 3,079,813,678 4,154,501,084
Jun 2010 12.01 12.13 12.26 12.38 Net Buy 3,611,461,770 2,539,305,761
FIRST HABIB INCOME FUND FIRST HABIB STOCK FUND
Fund Type Open-end Fund Type Open-end
Fund Category Income Scheme Fund Category Equity Scheme
Launch Date June 02, 2007 Launch Date October 10, 2009
Benchmark 1 month KIBOR Benchmark KSE – 100 Index
Net Assets Rs. 1.7 billion (July 31, 2010)
Net Assets Rs. 139.08 million (July 31, 2010)
Net Assets Value Rs. 100.87 per unit (July 31, 2010)
Net Assets Value Rs. 101.92 per unit (July 31, 2010)
Pricing Mechanism Forward Pricing
Pricing Mechanism Forward Pricing
Management Fee 1.50% p.a.
Front-end-Load NIL Management Fee 3.00% p.a.
Back-end-Load 0.50% if redeemed within 15 days from the Front-end-Load 2.00%
date of investment. Back-end-Load NIL
Trustee Central Depository Company of Pakistan Trustee Central Depository Company of Pakistan
Registrar Gangjees Registrar Services (Pvt.) Ltd Registrar Gangjees Registrar Services (Pvt.) Ltd
Auditors External KPMG Taseer Hadi & Co. Auditors External KPMG Taseer Hadi & Co.
Auditors Internal A. F. Ferguson & Co. Auditors Internal A. F. Ferguson & Co.
Fund Manager Mr. Junaid Kasbati Fund Manager Mr. Junaid Kasbati
Minimum Subscription Rs. 5,000/- subsequently Minimum Rs. 5,000/- subsequently
Rs. 1,000/- per transaction Subscription Rs. 1,000/- per transaction
Dealing Days Monday – Friday Dealing Days Monday – Friday
Cut-off Timings 9:00 am to 4:30 pm
Cut-off Timings 9:00 am to 4:30 pm
AMC Rating “AM3-” by PACRA
AMC Rating “AM3-” by PACRA
Fund Stability Rating “AA- (f)” by PACRA
Leverage NIL
Leverage NIL
Risk Profile As per Offering Document
Risk Profile As per Offering Document
INVESTMENT COMMITTEE
1. Mr. Imran Azim (CEO) 2. Mr. Muhammad Shakeel Musani (CFO & Company Secretary) 3. Mr. Junaid Kasbati (Fund Manager)
Risk Disclosure: This publication is for informational purposes only and nothing herein should be construed as a Habib Asset Management Limited
solicitation, recommendation or an offer to buy or sell any Fund. All investments in mutual funds are subject to 1st Floor, Imperial Court, Dr. Ziauddin Ahmed Road, Karachi,
market risk. The NAV based prices of units and any dividends/ returns thereon are dependant on forces and factors Pakistan.
affecting the capital market. These may go up and down based on market conditions. Past performance is not U.A.N. 111-342-242, Fax 021-35223710
necessarily indicative of future results. E-mail: info@habibfunds.com , http://www.habibfunds.com
INVESTMENT OBJECTIVE
The objective of First Habib Income Fund (FHIF) is to achieve the best possible rate of return in comparison to the other available
investment avenues by maintaining diversified investment portfolio with easy entry and exit for investors.
FUND MANAGER REVIEW
The Fund earned an annualized return of 9.89% for the month of July 2010 which was well above the industry’s average return of Income
Funds. SBP announced an increment in its Policy rate of 50 bps to 13% from 12.50% on July 30, 2010. The unexpected increase in the discount
rate will hurt the NAVs of the Funds in the short run which are invested in T-Bills, though the impact will be positive in the long run as the
Funds will be investing at higher yields compare to the current lower yields at the time of maturity. FHIF is invested in T-Bills up to 74% of
its total assets on July 31, 2010 which is highest among the Income Funds available in the market. Term Deposit rates are also expected to
improve in the higher interest rates environment. The expected increase in KIBOR rates will positively affect the returns of TFCs which will
help in achieving better returns for the Fund.
FUND’S PERFORMANCE ASSET ALLOCATION
Year to date (YTD) (Annualized) 9.89%
Cash TBill TDR TFC COIs LOP Others
Year To Date 0.84%
July - 2010 0.84% 74% 6% 15% 0.16% 2% 2%
Monthly Return (Annualized) 9.89%
June - 2010 4% 75% 6% 13% 0.19% NIL 1.81%
Weighted avg. time to maturity of Net
200 Days
Assets DETAILS OF NON COMPLIANT INVESTMENT
ASSET QUALITY
Value of inv.
Below Type of before provision value of inv. after % of net % of gross
AA-
Inv. Name Investment provision held provision assets assets
AA+ AA 6% A+
Grade
10% 6% 0.36% GHARIBWAL
1.64% CEMENT LTD. PPTFC 13,895,114 13,645,746 249,368 0.0147 % 0.0146%

TOP TEN TFCs

Others
2% STANDARD CHAR. BANK LTD. III 1.32% ENGRO CHEM. PAK. LTD PPTFC - II 0.99%
T-Bills UNITED BANK LIMITED III 1.27% SITARA CHEM. LTD. - SUKUK-III 0.96%
74% ASKARI COMM. BANK LTD. II 1.18% SAUDI PAK LEASING CO. LTD. 0.94%
UNITED BANK LIMITED - IV 1.10% BANK AL-FALAH LIMITED II 0.90%
ORIX LEASING PAKISTAN LIMITED 1.07% ASKARI COMM. BANK LTD. I 0.86%

INVESTMENT OBJECTIVE
The objective of First Habib Stock Fund (FHSF) is to provide investors with long term capital growth from an actively managed
portfolio invested primarily in diversified pool of listed equities and other approved instruments.

FUND MANAGER REVIEW

Net Asset Value of FHSF increased by 6.80% as compared to KSE 100 Index which registered an increase of 8.20% during July 2010. The
underperformance of the fund was mainly because of the unusual increase in the price of OGDC which has Index Weightage of 24.49%,
increased by 7.27% during the month of July 2010. The KSE 100 Index closed at 10,519 points with an increase of around 800 points during the
month. The volumes in the market are still on the lower side because of the non-availability of the leverage product which is expected to be
introduced in the month of August. Foreign investment played an important role in the market with a net inflow of $ 42.49 million as
compared to $ 29.87 million during the month of June 2010. The Fund opted to capitalize the bullish trend in the market during the month
and realized the capital gains. The result season has started and expected higher earnings by the listed companies will further strengthen the
market.
FUND’S PERFORMANCE SECTOR ALLOCATION ASSET ALLOCATION
Year to date (YTD) 6.80%
25.00%
JULY 2010 JUNE 2010
22.71%
TOP TEN STOCKS
National 20.00%
Refinery 4.95% Packages Limited 4.42% 14.86% 14.49% Cash 18% 8%
15.00%
Kot Addu 11.17%
Power Co. ICI Pakistan
Ltd. 4.92% Limited 3.76% 10.00% 7.69%
6.12%
Habib Equity 77% 89%
5.00%
Bank Ltd 4.76% Oil and Gas Dev. 3.55%
Fauji 0.00%
Fertilizer OIL & GAS CHEMICALS
Co. Ltd. 4.55% P.S.O. 3.46% BANKS ELECTRICITY
Others 5% 3%
GENERAL INDUSTRIALS OTHERS
Pak
Petroleum 4.47% Shell Pakistan 3.25%