NATIONAL FULLERTON ASSET MANAGEMENT LIMITED

S.KAMAL.HAYDER KAZMI,
Research Analyst
, PAGE
Aug 11 - 17, 2008

National Fullerton Asset Management Limited (NAFA) is a Non-Banking Finance Company which is engaged in Asset Management business. NAFA's main area of operation is Investment Management more specifically floating and managing mutual funds and discretionary management of institutional portfolios.

The main sponsors of NAFA are National Bank of Pakistan, NIB Bank Limited and Alexandra Fund Management Pvt. Ltd.

NAFA CASH FUND

NAFA Cash Fund (NCF) has earned an annualized yield of 11.01% during the month of July, 2008, which are approx 32 basis points better than the return earned during the last month. NAFA Cash Fund continues to show improvement in its performance on a month to month basis. NAFA Cash Fund earned a return of 9.60% in May, 10.69% in June and 11.01% in July 2008. Continuous improvement in NAFA Cash Fund's rate of return is attributable to resetting of Term Finance Certificate's (TFC) coupons at higher rates. NAFA Cash Fund also benefited from earning higher return on the new TDR's.

NAFA CASH FUND

UNIT PRICE (31/07/2008) : Rs 10.1305 Jul 08

PERFORMANCE

Annualized Performance (%)*

Jul - Jun

Jun

July

Since Launch

2007 -2008

2008

2008

22-Apr-06

NAFA Cash Fund:

9.85%

10.69%

11.01%

10.33%

Benchmark:

10.64%

13.62%

13.70%

10.39%

Monthly profit on Rs. 100,000 invested

Rs. 9,874

Rs. 838

Rs. 891

**Rs. 25,128

* Returns are net of management fee & all other expenses
** Represents cumulative profit since inception
Source: NAFA

NAFA STOCK FUND

During the month, KSE-30 Index decreased by 16.23% whereas NAFA Stock Fund's (NSF) Net Asset Value (NAV) decreased by 13.22%. Thus, an out performance of 3.01% was recorded. Since inception on Jan. 22, 2007, the NAV of NSF has risen by 20.54% and the benchmark has fallen by 10.39%, thus, to date the out performance which is 30.93%.

NAFA STOCK FUND

NAV PER UNIT (31-07-2008): RS. 9.6863 JUL-08

PERFORMANCE

RETURN (%)*

JUL - DEC

JAN - JUN

JUL

SINCE LAUNCH

2007

2008

2008

22-Jan-07

NAFA Stock Fund

12.63%

-14.04%

-13.22%

20.54%

Benchmark:

-1.63%

-14.30%

-16.23%

-10.39%

* Returns are net of management fee & all other expenses
Source: NAFA

NAFA MULTI ASSET FUND

NAFA Multi Asset Fund's (NMF) Net Asset Value (NAV) decreased by 5.91% while the benchmark decreased by 7.79%. Therefore, its fund out performed the benchmark by 1.88% during the month. Since inception on Jan 22, 2007, the fund has risen by 27.54% while, the benchmark has risen by 3.60%. Thus, to- date the out performance of fund stands at 23.94%.

NAFA MULTI ASSET FUND

NAV PER UNIT (31-07-2008): RS. 10.4513 JUL-08

PERFORMANCE

RETURN (%)*

JUL - DEC

JAN - JUN

JUL

SINCE LAUNCH

2007

2008

2008

22-Jan-07

NAFA Multi Asset Fund:

11.69%

-5.90%

-5.91%

27.54%

Benchmark: (50% KSE-30 Index & 50% 1-month KIBOR)

1.99%

-4.38%

-7.79%

3.60%

* Returns are net of management fee & all expense
Source: NAFA

NAFA ISLAMIC INCOME FUND

NAFA Islamic Income Fund (NIIF) offered an annualized return of 10.34% during the month of July 2008 compared with 9.35% during the last month, translating into an improvement of 99 basis points. Annualized return of 10.34% generated by NIIF during the outgoing month is 5.03% better than the one month average deposit rate of 5.31% offered by the Islamic banks.

NAFA ISLAMIC INCOME FUND

UNIT PRICE (31/07/2008): RS 10.1779. JUL-08

PERFORMANCE

ANNUALIZED PERFORMANCE (%)*

OCT- DEC 2007

JAN - JUN 2008

JUN-08

JUL-08

SINCE LAUNCH OCT 29, 2007

NAFA Islamic income fund

7.67%

8.62%

9.35%

10.34%

8.59%

Benchmark

5.31%

5.31%

5.31%

5.31%

5.31%

Profit on Rs. 100,000 invest

Rs. 1,304

Rs. 4,209

Rs. 738

Rs. 839

Rs. **6,455

*Returns are net of management fee and all other expenses. **Represents cumulative profit since inception.
Source: NAFA

NAFA ISLAMIC MULTI ASSET FUND

NAFA Islamic Multi Asset Fund's (NIMF) NAV is decreased by 5.01%. The fund is 34,5% invested in Sharia'h Compliant stocks. Nafa's universe of Sharia'h Compliant Companies has declined by 12.67% during the month . The cummulative return of the Fund since inception now stands at -9.41%.

NAFA ISLAMIC MULTI ASSET FUND

NAV PER UNIT (31/07/2008): RS 9,0586, JUL-08

PERFORMANCE

RETURN(%)*

FEB - JUL 2008

MAY - JUL 2008

JUN - 08

JUL - 08

SINCE LAUNCH OCT 29 2007

NAFA Islamic Multi Asset Fund

-7.65%

-11.36%

0.64%

-5.01%

-9.41%

*Return are net of management fee and all other expenses
Source: NAFA

NAFA INCOME FUND

NAFA Income Fund (NIF) has earned an annualized return of 10.26% which is 170 basis points better than the return earned in the month of June, 2008. NAFA Income Fund earned a 7.89% in May, 8.56% in June and 10.26% in month of July. Improvement in performance is attributable to resetting of coupons at higher rates due to higher kibor rates in comparison to test coupon reset. Also, the Fund is investing in Term Deposit Receipts (TDR) at higher rates.

NAFA INCOME FUND

UNIT PRICE (31/07/2008): RS. 10.0844. JUL-08

PERFORMANCE

ANNUALIZED PERFORMANCE (%)*

MAR- JUN 2008

JUN-08

JUL-08

SINCE LAUNCH MAR 29, 2008

NAFA income fund

8.43%

8.56%

10.26%

8.88%

Benchmark

10.87%

11.95%

12.41%

11.25%

Profit on Rs. 100,000 invest

Rs.2,107

Rs.677

Rs.833

**Rs. 2,957

*Returns are net of management fee and all other expenses.
**Represents cumulative profit since inception
Source: NAFA

CONCLUSION

NAFA is a premier Asset Management Company that capitalizes on the technical and institutional strengths of its promoters and consistently offers creative and pioneering domestic and international products to meet varying needs of investors.