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Fund Manager Saeed Aziz Khan Listing Islamabad Stock ExchangeFund Type Open-end asset allocation fund Trustee Central Depository CompanyLaunch Date 10 September, 2007 (IPO) Auditors Ford Rhodes Sidat Hyder & Co.

ASKARI ASSET ALLOCATION FUNDNAV 97.6270

Fund Manager ReportNovember 2007

Investment Objective

The fund seeks to maximize long-term total return (stocksplus income) while incurring lesser risk than a fundcomprising entirely of stocks. Asset universe of the fundincludes stocks, term finance certificates, Governmentbonds, treasury bills, certificates of investment, continuousfunding system, and spread transactions (Redi-Future),etc. The fund seeks to provide its investors with returnsthat are 5% higher than the benchmark (KSE-100 index).

The Fund was launched (Pre-IPO) on June 2, 2007 withthe IPO taking place from Sep 10-13, 2007.

Economic Outlook

After revising its world growth forecast downward at 4.8%in October, the International Monetary Fund is againlooking to revise the number further downward in the wakeof higher oil prices and mortgage loans crisis in the UnitedStates. However, the State Bank of Pakistan is confidentthat Pakistan will largely remain insulated from theinternational economic slowdown and will achieve 7.0%target growth for FY08.

During the month, foreign portfolio investment worth$219.86 million flowed out of Pakistan after the imposition

of emergency in the country, which resulted in fairly volatileprice swings during the month. As a result of reportedlower credit off-take and mixed 3 rd quarter results, most ofthe banks lost against the KSE 100 Index. Crude oil pricesremained at record highs during the month and broughtgood gains in the oil shares. The cement sector remaineddepressed on the expectation that rising energy input costswould reduce profits further. Fertilizer prices kept risingduring the month solidifying the profits of the sector. Risingsteel prices, a stronger yen, and tighter credit from banksfor car loans made the auto sector less promising than inprevious years. Power, technology and communicationsectors gave a lackluster performance. Some major

insurers announced plans to realize capital gains on theirportfolios before capital gains tax exemption expires at theend of the calendar year. This gave boost to their shares.Rising lint prices due to lower cotton production andapprehension of lower demand due to economic slowdownin the textile importing countries cast a shadow over thetextile sector. The chemical sector performed somewhatbetter.

Fund Performance

At the start of the month, the fund had a high exposure to the market and the fund NAV dipped significantly afterimposition of emergency in the country. The stock market closed at the month end with a small loss. The Fund was,

however, able to outperform the KSE 100 Index by 0.76% percent. Oil exploration and production and fertilizer stocksperformed well. At the end of the month the Fund was invested 65% in equities and 35% in fixed income and cash.General elections are to be held within a month and the outcome of the election will determine the future trend of themarket. Before the elections, the market is likely to remain somewhat cautious.

General InformationMinimum Investment Rs 5,000Sales Load 2.5% front-end, 0.0% back-endManagement Fee 3.0%Risk MediumManagnt Company Rating AM3 by JCR-VIS and PACRA

Fund Size and Growth30 Nov 07 31 Oct 07

Fund Size Rs 737 mn Rs 722 mnNAV* 97.6270 99.0956* Dividend of Rs. 1.99 paid as of June 30, 2007

Fund PerformanceRolling Return 1-Month 3-Month Since Inc. FY08

AAAF -1.48% 4.15% -0.38% -2.55%

KSE 100 -2.24% 12.75% 8.23% 1.64%

Portfolio DetailsP/E (FY08) 12.88Beta 0.90R2 81.0%Max Drawdown (DD) 9.2%Number of days in DD 127Standard Deviation* 3.9%* On monthly basis

Economic DataNov/06 Mar/07 Jun/07 Sep/07 Nov/07

KSE100 Index 10,618.8 11,271.6 13,772.5 13,351.8 13,998.56M KIBOR 10.57% 10.39% 10.02% 9.97% 9.97%CPI Inflation 8.10% 7.67% 7.77% 7.07% -

Asset Allocation

Cash

19%

Banks

16%Fixed Income

15%

Fertilizer11%

OMC

5%

Cement

4%

Tech& Comm

3%

Inv Banks

2%

Other

6%

E & P

19%