AIFPF II - Conventional VPS Fundwise Booklet coveriii) Explanation as to whether the Collective Investment Scheme achieved its stated objective ... AIPPF-II is a fund-of-funds scheme

Fund Information

Fund Manager Report

Fund Performance Table

Report of the Trustee

Statement of Compliance

Review Report to the Unit Holders on Statement of Compliance

Report of the Shariah Advisory Board

Independent Assurance Report to the Unit Holders of the Fund

Independent Auditors’ Report to the Unit Holders

Statement of Assets and Liabilities

Income Statement

Statement of Comprehensive Income

Distribution Statement

Statement of Movement in Unit Holders’ Funds

Cash Flow Statement

Notes to Financial Statement

01

02 - 05

06

07

08 - 10

11

12

13

14

15

16

17

18

19

20

21 - 37

Al-Ameen Islamic Principal Preservation Fund – II 01 Annual Report ‘15

Al-Ameen Islamic Principal Preservation Fund – IIAIPPF-II

INVESTMENT OBJECTIVEThe objective of Al-Ameen Islamic Principal Preservation Fund - II is to earn a potentially high return through dynamic asset allocation between Shariah Compliant Equities and Shariah Compliant Income/Money Market based Collective Investment Schemes, while providing capital preservation of the Initial Investment Value at completion of the duration of fund

Management Company UBL Fund Managers Limited

TrusteeCentral Depository Company of Pakistan Limited99-B, Block-B, S.M.C.H.S., Main Shahra-e-Faisal,Karachi. Tel: (9221) 111-111-500

Distribution Company

Auditors KPMG Taseer Hadi and Co.

Legal Advisor Mohsin Tayebaly & Co.

Bankers

Management Company Rating AM2+ (JCR‐VIS)

Fund Rating Not yet rated

United Bank Limited(for detail of others, please visit our website: www.UBLFunds.com)

United Bank LimitedBank Alfalah LimitedHabib Metropolitan Bank Limited

FUND MANAGER’S REPORT – AL-AMEEN ISLAMIC PRINCIPAL PRESERVATION FUND-II (AIPPF-II)

i) Description of the Collective Investment Scheme category and type Islamic Fund of Funds Scheme / Open-end

ii) Statement of Collective Investment Scheme’s investment objective The objective of Al-Ameen Islamic Principal Preservation Fund - II is to earn a potentially high return through dynamic asset allocation between Shariah Compliant Equities and Shariah Compliant Income/Money Market based Collective Investment Schemes, while providing capital preservation of the Initial Investment Value at completion of the duration of fund.

iii) Explanation as to whether the Collective Investment Scheme achieved its stated objective The Collective Investment Scheme aims to provide capital protection at completion of the duration; the performance so far till end June’15 reflects that the fund is on track to achieve its stated objective of earning potentially high returns while providing capital preservation of the initial investment value.

iv) Statement of benchmark(s) relevant to the Collective Investment Scheme Weighted Average Daily Return of KMI-30 Index and 3M Deposit Rates of A & above rated Islamic Banks based on the Fund’s actual participation in the Equity & Debt/Income Component.

v) Comparison of the Collective Investment Scheme’s performance during the period compared with the said benchmarks

Monthly Yield Jul‘14 Aug‘14 Sep‘14 Oct‘14 Nov‘14 Dec‘14 Jan‘15 Feb‘15 Mar’15 Apr‘15 May‘15 Jun‘15 FYTD

AIPPF-II

Benchmark

1.92%

2.23%

-5.91%

-3.39%

4.45%

2.31%

2.74%

0.63%

3.25%

2.12%

1.55%

2.10%

8.99%

5.86%

-3.52%

-0.42

-9.08%

-6.08%

9.53%

8.90%

-2.84%

-0.65%

3.77% 13.90%

3.27% 17.29%

Asset Allocation (% of Total Assets) Jun-14 Jun-15

Equity FundsMoney Market FundsOthersCash LeverageTotal

75%25%0%0%Nil100%

59%41%0%0%Nil100%

vi) Description of the strategies and policies employed during the period under review in relation to the Collective Investment Scheme’s performanceAIPPF-II is a fund-of-funds scheme which primarily invests in the Al-Ameen Shariah Stock Fund (ASSF) and the Al-Ameen Islamic Sovereign Fund (AISF) through a Constant Proportion Portfolio Insurance (CPPI) trading strategy. CPPI based trading strategy periodically changes allocation between equity and fixed income investments based on performance of respective investment vehicles and their future outlook.

vii) Disclosure of the Collective Investment Scheme’s asset allocation as at the date of the report and particulars of significant changes in asset allocation since the last report (if applicable)

viii) Analysis of the Collective Investment Scheme’s performanceFY’15 Return:Standard Deviation (12m trailing):Sharpe Ratio (12m trailing):

13.90%N/AN/A


ix) Changes in total NAV and NAV per unit since the last review period or since commencement (in case of newly established Collective Investment Schemes)

x) Disclosure on the markets that the Collective investment Scheme has invested in including - review of the market(s) invested in and performance during the period

The Fund is a principal-protected fund which has invested in ASSF (equity fund) and AISF (money-market fund). Thus, the underlying assets of AIPPF-II are equity and money-market CIS and the market reviews are as follows:

Debt Market Review – FY15With softening international crude oil prices (with its trickle down impact on domestic fuel prices), stability in exchange rate and better production of minor crops, headline inflation moderated to 4.53% in FY15, decelerating from 8.62% in FY14. Moreover, a sizeable reduction in government’s borrowing from the Central Bank also contained inflation expectations. In April, CPI slowed to 2.1%YoY, the lowest reading after September 2003. Food inflation dropped to mere 2.41% on the back of lower commodity prices and limited impact of floods on supplies of perishable products in August last year. Non Food inflation also reduced to 3.56% in FY15. Core measures of inflation also witnessed downward trajectory where the Non Food Non Energy (NFNE) measure which is somewhat sticky in nature trimmed to 6.59% in comparison to 8.3% posted in same period last year. Taking cues from lower inflation, the Central Bank reinitiated the monetary easing in Nov’15 where the policy rate was slashed by 50bps to 9.5% after maintaining it at 10% in last seven monetary policies. Policy stance was consistently maintained and discount rate was further reduced successively in next three monetary policies to reach at historic low of 7% in May’15 (cumulative reduction of 300bps) in an effort to stimulate the stagnant economy.

In twelve PIB auctions conducted during the period, the government mopped up PKR~965bn (PKR 2.037trn in FY14) against target of PKR 900bn. Consequently, the outstanding amount for the PIBs in the market increased to PKR 4.104trn. Participation in the auctions was largely skewed towards three and five year paper with the participation ratio of 51% and 27% respectively. Cut off yields in June auction trimmed to 8.09%, 8.99% for three and five year PIB instruments respectively. Weighted average borrowing cost reduced to 10.42% in FY15 against 12.25% in corresponding period last year.

The yield curve based on government securities of various maturities has shifted downwards in line with the decrease in discounts rates during FY15. Since the initiating of monetary easing by the SBP in November last year, Secondary market yields for the long term and short term PIB instruments have come off by ~200bps and ~300bpps respectively. The spread between annualized yields of 1-year T-bills (6.98% p.a.) and 10-year PIBs (9.97% p.a.) stood at ~3% as of 30 June, 2015 which from a historical perspective is on the higher side.


1,199,054 1,087,470 115.4200 106.92 10.3 7.95

Net Asset Value NAV per unit

30-Jun-15

Rupees (000) % %

30-Jun-14 30-Jun-15 30-Jun-14Change Change

Rupees

Stock Market Review – FY15The equity market continued its bull run and the benchmark KSE 100 index during FY15 increased by 16.0%. In addition to this, FY15 stood as a remarkable year as the average daily trading volumes and values rose to a 6year high at 215.9mn shares and US$ 107.6mn respectively. Rising volumes witnessed during the year were a result of new offerings and improving investor’s confidence. Interestingly, the aforementioned performance of KSE-100 index came despite a negative return by index heavy weight sectors. Oil & Gas sector amid a 44% decline in the international oil prices led to a subdued performance and declined by 25% YoY. In addition to this, performance of the banking sector also remained lackluster owing to a soft interest rate environment and regulatory overhang. During FY15, Mutual funds (US$ 122.17mn net buy), NBFC’s (US$ 68.2mn net buy) and FIPI (US$ 38.6mn net buy) along with other organizations (US$ 40.9mn net buy) remained net buyers at the bourse. Conversely selling came from Banks (US$ 137.9mn net sell), Companies (US$ 97.0mn net sell) and individuals which sold equities worth US$ 24.5mn. Improving macros led by multi decade low interest rates, low inflation, increased foreign exchange reserves and contained fiscal deficit were the key positives for FY15 which helped the market to generate performance. Also in the outgoing year, inflation clocked in at 4.6% significantly lower than the target of 8% set by the Government. In view of improving macros and declining inflation, the SBP adopted an accommodative monetary policy and reduced the policy rate by 300bps to multi decade low of 7%. Thanks to sharp decline in current account deficit, issue of Sukuk bond and IMF payments, the foreign exchange reserves increased by US$ 4.2bn in FY15 to reach at US$ 18.2bn at close of FY15. Thus an overall improvement in macroeconomic indicators led to a ratings upgrade by Moody’s in June 2015 from Caa1 to B3.

Performance detractors stood as the index heavyweights during FY15 where Oil and Gas and Bank having a cumulative weight of 39% closed with negative returns. Amongst all 32 sectors, 6 sectors with cumulative index weight of 45% remained in the negative territory as they yielded negative returns of 17%. These included Oil and Gas (-ve 25% YoY), Fixed Line (-ve 19% YoY), Tobacco (-ve 17% YoY) and Commercial banks (-ve 6% YoY). On the other hand, 26 sectors which made up for 55% of the market weight registered 34% YoY growth. Amongst the ones which posted gains, key sectors included Autos (+ve 94% YoY), Electricity (+ve 63% YoY), Construction & Materials (+ve 47% YoY) and Chemicals (+ve 41% YoY).

Despite the continuous bull-run in the last few years, improving macros and corporate sector profitability will provide better visibility of Pakistan to foreign investors and help in an upward re-rating of Pakistan equities.

xi) Disclosure on distribution (if any), comprising:-- particulars of income distribution or other forms of distribution made and proposed during the period; and- statement of effects on the NAV before and after distribution is made

xii) Description and explanation of any significant changes in the state of affairs of the Collective Investment Scheme during the period and up till the date of the manager’s report, not otherwise disclosed in the financial statements There were no significant changes in the state of affairs during the year under review.

xiii) Breakdown of unit holdings by size


Distribution Per unit Declared on Bonus Cash Per Unit Cum NAV Ex NAV Rupees (000) ------------- Rupees ---------------

- 121.3600 115.0200 July 26, 2015 62,643 6.34

0.0001 - 9,999.9999

10,000.0000 - 49,999.9999

50,000.0000 - 99,999.9999

100,000.0000 - 499,999.9999

500,000.0000 & Above

Total

Range of Units Number ofInvestors

AIPPF-II

254

108

11

15

5

393

xiv) Disclosure on unit split (if any), comprising:- There were no unit splits during the period.

xv) Disclosures of circumstances that materially affect any interests of unit holders Investment are subject to credit and market risk.

xvi) Disclosure if the Asset Management Company or its delegate, if any, receives any soft commission (i.e. goods and services) from its broker(s) or dealer(s) by virtue of transactions conducted by the Collective Investment Scheme. No soft commissions are received by the AMC from its brokers or dealers by virtue of transactions conducted by the Collective Investment Scheme.


FUND PERFORMANCE TABLEAl-Ameen Islamic Principal Preservation Fund – II

AL-AMEEN ISLAMIC PRINCIPAL PRESERVATION FUND - IIPERFORMANCE TABLE

2015 20141,199,054 1,087,475

Class A UnitsOffer 115.42 106.92

Redemption* 109.65 101.57

Total Return of the Fund 13.90 14.15 Capital Growth (per unit) 7.20 7.04 Date of Income Distribution 26-Jun-15 28-May-14Income Distribution 6.02 5.81 Date of Income Distribution 30-Jun-15 24-Jun-14Income Distribution 0.18 1.30

First Year 13.90 14.15Second Year 14.03

Highest Price per Unit - Class A UnitsOffer 126.35 115.04

Redemption* 120.0325 109.288

Lowest Price per Unit - Class A UnitsOffer 100.96 100.00

Redemption* 95.91 95.00*Redemption Prices are net of Back-end Load

Bank Balances 0.00 1.00Money Market Funds 41.00 20.00Equity Funds 59.00 79.00

Mutual Funds 100 100

Portfolio Composition by Category - Percentage

Portfolio Composition by Market - Percentage

Note: The launch date of the Fund is 7 November 2013DISCLAIMER: Past performance is not necessarily indicative of future performance. Unit prices and investment returns may go down as well as up.

Net Assets as at 30 June - Rupees in '000

Net Asset Value per unit at 30 June - Rupees

Return of the Fund - Percentage

Average Annual Return - Percentage

Offer / Repurchase During the Year - Rupees

Portfolio Composition - Percentage of Net Assets as at 30 June


3


TRUSTEE REPORT TO THE UNIT HOLDERS

Report of the Trustee pursuant to Regulation 41(h) and clause 9 of Schedule V of the Non-Banking Finance Companies and Notified Entities Regulations,

2008

We Central Depository Company of Pakistan Limited, being the Trustee of Al-Ameen Islamic Principal Preservation Fund – II are of the opinion that UBL Fund Managers Limited being the Management Company of the Fund has in all material respects managed the Fund during the year ended June 30, 2015 in accordance with the provisions of the following:

(i) Limitations imposed on the investment powers of the Management Company under the constitutive documents of the Fund;

(ii) The pricing, issuance and redemption of units are carried out in accordance with the requirements of the constitutive documents of the Fund; and

(iii) The Non-Banking Finance Companies (Establishment and Regulations) Rules, 2003, the Non-Banking Finance Companies and Notified Entities Regulations, 2008 and the constitutive documents of the Fund.

Muhammad Hanif JakhuraChief Executive OfficerCentral Depository Company of Pakistan Limited

KarachiDate: 28 September 2015

Al-Ameen Islamic Principal Preservation Fund – II

STATEMENT OF COMPLIANCE BY UBL FUND MANAGERS LIMITED WITH THE BEST PRACTICES OF CODE OF CORPORATE GOVERNANCE

FOR THE YEAR ENDED 30 JUNE 2015

This statement is being presented to comply with the Code of Corporate Governance (the Code) contained in chapter XI of Listing Regulations of Islamabad Stock Exchange for the purpose of establishing a framework of good gover-nance, whereby a listed entity is managed in compliance with the best practices of Corporate Governance.

The Board of Directors (the Board) of UBL Fund Managers Limited (the Management Company), which is an unlisted public company, manages the affairs of Al-Ameen Islamic Principal Preservation Fund – II (the Fund). The Fund being a unit trust open end scheme does not have its own Board of Directors. The Management Company has applied the principles contained in the Code to the Fund, whose units are listed as a security on the Islamabad Stock Exchange, in the following manner:

1. The Management Company encourages representation of independent non-executive directors. All the directors, except the Chief Executive Officer of the Management Company are non-executive directors, two of which are independent non-executive directors.

The independent directors meets the criteria of independence under clause i (b) of the CCG.

2. The existing directors have confirmed that none of them are serving as a director in more than seven listed companies, including the Management Company.

3. All the resident directors of the Management Company have confirmed that they are registered as taxpayers and none of them have defaulted in payment of any loan to a banking company, a DFI or an NBFC or, being a member of a stock exchange, have been declared as a defaulter by that stock exchange.

4. During the financial year 2014-2015, 5 following directors namely Mr. Muhammad Hanif Akhai, Mr. Rayomond Kotwal, Mr. Jamal Nasir and Syed Ali Hasnain resigned from the Board while Mr. Saeed Iqbal did not participate in the re-election of the Board of Directors held on Sep 29, 2014 and in their places Mr. Zia Ijaz, Mr. Zulfiqar Alavi, Syed Furrukh Zaeem and Mirza Muhammad Sadeed Barlas were inducted on the Board.

All of the above casual vacancies are filled up by the new directors within 90 day period.

5. The Management Company has prepared a 'Code of Conduct' and has ensured that appropriate steps have been taken to disseminate it throughout the company along with its supporting policies and procedures.

Category NameMr. Tariq KirmaniMr. Shabbir Hussain Hashmi

Independent Directors

Executive Directors

Non - Executive Directors

Mr. Mir Muhammad Ali, CFA

Mr. Zia IjazMr. Zulfiqar AlaviSyed Furrukh ZaeemMirza Muhammad Sadeed Hassan Barlas


6. The Management Company has developed a vision/ mission statement, corporate strategy and significant policies for the Fund that has been approved by the Board. A complete record of particulars of significant policies along with the dates on which these were approved or amended has been maintained.

7. All the powers of the Board have been duly exercised and decisions on material transactions, including appoint-ment and terms and conditions of employment of the CEO have been taken by the Board.

8. The meetings of the Board were presided over by the Chairman and the Board met at least once in every quarter. Written notices of the Board meetings, along with agenda and working papers, were circulated at least seven days before the meetings. The minutes of the meetings were appropriately recorded and circulated.

9. The related party transactions have been placed before the Audit Committee and approved by the Board of Directors with necessary justification for non-arm’s length transaction and pricing methods for transaction that were made on terms equivalent to those that prevail in the arm’s length transactions only if such terms can be substantiated.

10. In order to apprise the directors on their duties and responsibilities and the requirements of the Code, the Manage-ment Company has a process in place to conduct formal orientations for new directors. Furthermore, three directors on the Board have completed the Director Training Program (DTP) and are certified directors, while two Independent directors are exempt from the DTP under the Code of Corporate Governance 2012. The directors are well conversant with the relevant laws applicable to the Fund and the Management Company, its policies and procedures and provi-sions of memorandum and articles of association and are aware of their duties and responsibilities.

11. There was no new appointment of CFO, Company Secretary and Head of Internal Audit during the year.

12. The Directors' report relating to the Fund for the year ended 30 June 2015 has been prepared in compliance with the requirements of the Code and fully describes the salient matters required to be disclosed.

13. The financial statements of the Fund were duly endorsed by the CEO and CFO of the Management Company before approval of the Board.

14. The Directors, CEO, and executives do not hold any interest in the units of the Fund and shares of the Manage-ment Company other than disclosed in the Directors' Report.

15. The Management Company has complied with all the applicable corporate and financial reporting requirements of the Code.

16. The Board has formed a Board Audit Committee. It comprises of four members, all of whom are non-executive directors of the Management Company including the chairman of the Committee who is an independent non-executive director.

17. The meetings of the Board Audit Committee were held at least once in every quarter and prior to the approval of interim and final results of the Fund as required by the Code. The terms of reference have been approved in the meeting of the Board of Directors and the Committee has been advised to ensure compliance with those terms of reference.

18. The Management Company has in-house internal audit function. The internal audit team is considered suitably qualified and experienced for the purpose and is conversant with the policies and procedures of the Fund and they are involved in the internal audit function on full time basis.

19. The Board has formed a Human Resource and Compensation Committee. It comprises of four members, of whom three are non-executive directors, one is an executive director and the chairman of the Committee is an indepen-dent non- executive director


20. The statutory auditors of the Fund have confirmed that they have been given a satisfactory rating under the Quality Control Review program of the Institute of Chartered Accountants of Pakistan (ICAP), that they or any of the partners of the firm, their spouses and minor children do not hold shares of the Management Company or units of the Fund and that the firm and all its partners are in compliance with the International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the Institute of Chartered Accountants of Pakistan.

21. The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard.

22. The 'closed period', prior to the announcement of interim/final results, and business decisions, which may material-ly affect the market price of Fund's securities, was determined and intimated to directors, employees and stock exchange(s).

23. Material/price sensitive information has been disseminated among all market participants at once through stock exchange(s).

24. We confirm that all other material principles contained in the Code have been complied with.

MIR MUHAMMAD ALI, CFA Karachi.Chief Executive Dated: August 24, 2015


REVIEW REPORT TO THE UNIT HOLDERS ON THE STATEMENTOF COMPLIANCE WITH THE BEST PRACTICES OF THE CODE

OF CORPORATE GOVERNANCE

We have reviewed the enclosed Statement of Compliance with the best practices contained in the Code of Corporate Governance (“the Code”) prepared by the Board of Directors of the Management Company of Al-Ameen Islamic Principal Preservation Fund II (“the Fund”) for the year ended 30 June 2015 to comply with the listing regulation No. 35 of Islamabad Stock Exchange, where the Fund is listed.

The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors of the Management Company of the Fund. Our responsibility is to review, to the extent where such compliance can be objectively verified, whether the Statement of Compliance reflects the status of the Fund’s compliance with the provisions of the Code of Corporate Governance and report if it does not and to highlight any non compliance with the requirements of the Code. A review is limited primarily to inquiries of the Fund personnel and review of various documents prepared by the Fund to comply with the Code.As part of our audit of financial statements we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. We are not required to consider whether the Board’s statement on internal control covers all risks and controls, or to form an opinion on the effectiveness of such internal controls, the Fund's corporate governance procedures and risks.

The Code requires the Management Company to place before the Audit Committee, and upon recommendation of the Audit Committee, place before the Board of Directors for their review and approval of related party transactions distinguishing between transactions carried out on terms equivalent to those that prevailed in arm’s length transactions and transactions which are not executed at arm’s length price and recording proper justification for using such alternate pricing mechanism. We are only required and have ensured compliance of this requirement to the extent of approval of the related party transactions by the Board of Directors upon recommendation of the Audit Committee. We have not carried out any procedures to determine whether the related party transactions were undertaken at arm’s length price or not.

Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Fund’s compliance, in all material respects, with the best practices contained in the Code of Corporate Governance for the year ended 30 June 2015.

KPMG Taseer Hadi & Co., Chartered AccountantsKARACHIDate: 24 August 2015


REPORT OF THE SHARIAH ADVISORY BOARD

We, the Shariah Advisors of the fund are issuing this report in accordance with the rules and regulations. The scope of the report is to express an opinion on the Shariah Compliance of the Funds activities.

In the capacity of Shariah Advisors, we have prescribed criteria and procedures to be followed in ensuring Shariah Compliance in every investment.

It is the responsibility of the Management Company of the fund to establish and maintain a system of internal controls to ensure compliance with the Shariah guidelines. Our responsibility is to express an opinion, based on our review, to the extent where such compliance can be objectively verified. A review is limited primarily to inquiries of the Management Company’s personnel and review of various documents prepared by the Management Company to comply with the prescribed criteria.

In light of the above, we hereby certify that:

i. We have reviewed and approved the modes of investments of AIPPF-II in light of the shariah guidelines.

ii. All the provisions of the Scheme and investments made on account of AIPPF-II by UBL Fund Managers are Shariah compliant and in accordance with the criteria established.

iii. On the basis of information provided by the management, all operations of AIPPF-II for the year ended 30 June 2015 have been in compliance with the Shariah principles.

During the year, Rs. 8,270 has been recognized as charity.

May Allah give us strength to work in accordance with Quran and Sunnah and forgive our mistakes.

Mufti Muhammad Hassaan Kaleem Mufti Muhammad Najeeb KhanMember, Shariah Advisory Board Member, Shariah Advisory Board

KARACHI:DATE: 30 July 2015



INDEPENDENT ASSURANCE REPORT TO THE UNIT HOLDERS OF THE FUND IN RESPECT OF THE FUND’S COMPLIANCE WITH THE SHARIAH

RULES AND PRINCIPLES

We have performed our independent assurance engagement of Al-Ameen Islamic Principal Preservation Fund II “the Fund” to assess the Fund’s compliance with the Shariah Guidelines prescribed by the Shariah Advisor of the Fund for the year ended 30 June 2015.

Management Company's responsibility Management Company of the Fund is responsible for the appointment of Shariah Advisor of the Fund and for compliance with the Shariah Guidelines prescribed by the Shariah Advisor. This responsibility includes: designing, implementing and maintaining internal control to ensure compliance with the Shariah Guidelines issued by the Shariah Advisor of the Fund. Responsibility of independent assurance provider Our responsibility is to express our conclusion on the compliance based on our independent assurance engagement, performed in accordance with the International Standards on Assurance Engagements (ISAE 3000) ‘Assurance Engagement other than Audits or Review of Historical Financial Information’. This standard requires that we comply with ethical requirements and plan and perform the engagement to obtain reasonable assurance whether the Fund has complied with the guidelines issued by the Shariah Advisor.

The procedures selected depend on our judgement, including the assessment of the risks of material non-compliances with the Shariah guidelines. In making those risk assessments, we have considered internal controls relevant to the entity’s compliance with the guidelines in order to design our procedures that are appropriate in the circumstances, for gathering sufficient appropriate evidence to determine that the Fund was not materially non-compliant with the guidelines. Our engagement was not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

Conclusion

In our opinion, the Fund was in all material respects, in compliance with the Shariah Guidelines issued by the Shariah Advisor of the Fund for the year ended 30 June 2015.

KPMG Taseer Hadi & Co. Karachi Chartered Accountants 24 August 2015

INDEPENDENT AUDITORS’ REPORT TO THE UNIT HOLDERS

Report on the financial statementsWe have audited the accompanying financial statements of Al-Ameen Islamic Principal Preservation Fund II (“the Fund”), which comprise the statement of assets and liabilities as at 30 June 2015, and the related income statement, statement of comprehensive income, distribution statement, cash flow statement, statement of movement in Unit Holders’ Fund for the year ended 30 June 2015, and a summary of significant accounting policies and other explanatory notes.

Management’s responsibility for the financial statementsManagement Company of the Fund is responsible for the preparation and fair presentation of the financial statements in accordance with the requirements of the approved accounting standards as applicable in Pakistan and for such internal control as Management Company determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ responsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards as applicable in Pakistan. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Fund’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements give a true and fair view of the state of the Fund’s affairs as at 30 June 2015, and of its financial performance, cash flows and transactions for the year then ended in accordance with approved accounting standards as applicable in Pakistan.

Emphasis of matterWithout qualifying our opinion, we draw attention to note 1 to the financial statements which inter alia states that the Fund commenced its operation from 7 November 2013. The duration of the fund is 24 months from the commencement of the life of the Fund and the Fund shall stand automatically dissolved after the aforementioned period. Accordingly, the financial statements are not prepared on the going concern basis. However, no adjustments are required as the assets and liabilities are stated at the values at which they are expected to be realized or settled.

Report on other legal and regulatory requirementsIn our opinion, the financial statements have been prepared in accordance with the relevant provisions of the Non-Banking Finance Companies (Establishment and Regulation Rules, 2003) and Non-Banking Finance Companies and Notified Entities Regulations, 2008. KPMG Taseer Hadi & Co. Karachi Chartered Accountants 24 August 2015 Audit Engagement Partner: Mazhar Saleem


AL-AMEEN ISLAMIC PRINCIPAL PRESERVATION FUND – IISTATEMENT OF ASSETS AND LIABILITIES

AS AT JUNE 30, 2015

Chief Executive DirectorMir Muhammad Ali, CFA Syed Furrukh Zaeem

Note 30 June 30 June2015 2014

(Rupees in '000)AssetsBank balances 5 3,960 3,509 Investments 6 1,210,080 1,094,036 Profit receivable on bank balances 13 56 Prepaid rating fee 128 - Preliminary expenses and floatation costs 7 884 3,384 Total assets 1,215,065 1,100,985

LiabilitiesPayable to the Management Company 8 - 5,050 Payable to the Trustee 9 127 116 Annual fee payable to Securities and Exchange

Commission of Pakistan 10 862 512 Provision for Workers' Welfare Fund 11 5,795 2,776 Other payables 12 9,228 5,056 Total liabilities 16,012 13,510

Net assets 1,199,053 1,087,475 Unit holders' funds 1,199,053 1,087,475 Contingent liability 13

Number of units in issue 10,388,902 10,171,127

Net assets value per unit (Rupees) 115.42 106.92

The annexed notes 1 to 23 form an integral part of these financial statements.

DirectorChief Executive

For UBL Fund Managers Limited

Al-Ameen Islamic Principal Preservation Fund IIStatement of Assets and Liabilities

As at June 30, 2015

(Management Company)

Syed Furrukh ZaeemMir Muhammad Ali, CFA


AL-AMEEN ISLAMIC PRINCIPAL PRESERVATION FUND – IIINCOME STATEMENT

FOR THE PERIOD FROM JUNE 24, 2015 TO JUNE 30, 2015


Note For the year ended 30 June

2015

For the period from 7 November 2013 to 30

June 2014(Rupees in '000)

IncomeCapital gain on sale of investments - net 84,712 72,675 Profit on bank accounts 126 1,515 Unrealised (loss) / gain in the value of investment 'at

fair value through profit or loss' 6.1 (3,149) 68,217 Dividend Income 75,649 - Other income 1,730 1,527

159,068 143,934

ExpensesRemuneration to the Trustee 9 1,494 888 Annual fee to Securities and Exchange Commission of Pakistan 10 862 512 Auditors' remuneration 264 271 Preliminary expenses and floatation costs 7 2,500 1,616 Other expenses 294 331 Total expenses 5,414 3,618

Net income from operating activities 153,654 140,316

Element of income and capital gains included in pricesof units issued less those in units redeemed - net 303 1,253

Provision for Workers' Welfare Fund 11 (3,019) (2,776)

Net income for the year / period before taxation 150,938 138,793

Taxation 14 - -

Net income for the year/ period 150,938 138,793


DirectorMir Muhammad Ali, CFA

Chief Executive Syed Furrukh Zaeem

Al-Ameen Islamic Principal Preservation Fund IIIncome Statement

For the year ended June 30, 2015

For UBL Fund Managers Limited(Management Company)


AL-AMEEN ISLAMIC PRINCIPAL PRESERVATION FUND – IISTATEMENT OF COMPREHENSIVE INCOME




2015



Net income for the year / period 150,938 138,793

Other comprehensive income for the year / period - -

Total comprehensive income for the year/ period 150,938 138,793


Mir Muhammad Ali, CFA

Al-Ameen Islamic Principal Preservation Fund IIStatement of Comprehensive Income



Director



AL-AMEEN ISLAMIC PRINCIPAL PRESERVATION FUND – IIDISTRIBUTION STATEMENT



30 June '2015 7 November 2013 to 30 June 2014

(Rupees in '000)

Undistributed income brought forward: - Realised income 2,145 - - Unrealised income 68,217 -

70,362 -

Interim distribution of nil bonus units (30 June2014: 520,099 bonus units at the rate of

Rs.5.81 per unit declared on 28 May 2014) - (55,370)

Interim distribution of nil bonus units (30 June2014: 124,027 bonus units at the rate ofRs.1.30 per unit declared on 24 June 2014) - (13,061)

Interim distribution at the rate of Rs.6.34 perunit declared on 24 June 2015 - Cashdividend (62,643) -


Undistributed income carried forward 158,657 70,362

Undistributed income carried forward: - Realised income 161,806 2,145- Unrealised income (3,149) 68,217

158,657 70,362



Al-Ameen Islamic Principal Preservation Fund IIDistribution Statement

For the year ended 30 June 2015

Syed Furrukh Zaeem Chief Executive Director

(Management Company)For UBL Fund Managers Limited


2015











Director



2015











Director




AL-AMEEN ISLAMIC PRINCIPAL PRESERVATION FUND – IISTATEMENT OF MOVEMENT IN UNIT HOLDERS' FUNDFOR THE PERIOD FROM JUNE 24, 2015 TO JUNE 30, 2015

For the year ended 30 June

2015



Net Assets at the beginning of the year / period 1,087,475 -

Cash received on issuance of 508,288 units (2014: 10,044,130 units) 58,198 1,004,413 Cash paid on redemption of 290,513 units (2014: 517,129 units) (34,612) (54,478)

23,586 949,935 Element of income and capital gains in prices of units sold less those

in units redeemed (303) (1,253)

Issuance of Nil bonus units (2014: 644,126 units) - 68,431

Realized gain on sale of investments - net 84,712 72,675 Unrealised (loss) / gain in the value of investment 'at fair value

through profit or loss' (3,149) 68,217 Total other comprehensive income for the year/ period 69,375 (2,099) Interim distribution of nil bonus units (30 June 2014: 520,099 bonus

units at the rate of Rs.5.81 per unit declared on 28 May 2014) - (55,370) Interim distribution of nil bonus units (30 June 2014: 124,027 bonus

units at the rate of Rs.1.30 per unit declared on 24 June 2014) - (13,061) Interim distribution at the rate of Rs.6.34 per unit declared on 24 June

2015 - Cash dividend (62,643) - Net income for the year / period 88,295 138,793

Net assets at the end of the year / period 1,199,053 1,087,475

(Rupees)

Net asset value per unit at the beginning of the year / period 106.92 100.00 Net asset value per unit as at the end of the year / period 115.42 106.92


Mir Muhammad Ali, CFA Chief Executive

Syed Furrukh Zaeem Director


Al-Ameen Islamic Principal Preservation Fund IIStatement of Movement in Unit Holders' Fund



AL-AMEEN ISLAMIC PRINCIPAL PRESERVATION FUND – IICASH FLOW STATEMENT



For the year ended 30 June

2015

For the period from 7 November 2013 to

30 June 2014

(Rupees in '000)

CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the year/ period 150,938 138,793

Adjustments for:Profit on bank accounts (126) (1,515) Amortization of preliminary expenses and flotation costs 2,500 1,616 Workers Welfare Fund expense 3,019 2,776 Dividend Income (75,649) - Capital gain on sale of investments - net (84,712) (72,675) Unrealised gain in the value of investment 'at fair value through profit or loss' 3,149 (68,217) Element of income and capital gains included in prices of

units issued less those in units redeemed - net (303) (1,253) (152,122) (139,268)

Net cash flows used in operations before working capital changes (1,184) (475)

Working capital changes(Increase) in assetsInvestments (34,481) (953,144) Prepaid rating fee (128) - Preliminary expenses and floatation costs - (5,000)

(34,609) (958,144)

Increase in liabilitiesPayable to the Management Company (5,050) 5,050 Remuneration payable to the Trustee 11 116 Payable to Securities and Exchange Commission of Pakistan 350 512 Other payables 4,172 5,056

(517) 10,734

Profit received 169 1,459 Net cash flows used in operating activities (36,141) (946,426)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipt from issuance of units 58,198 1,004,413 Payments against redemption of units (34,612) (54,478) Dividend received 75,649 - Dividend paid (62,643) - Net cash flows generated from financing activities 36,592 949,935

Cash and cash equivalents at beginning of the year / period 3,509 - Cash and cash equivalents at end of the year / period 3,960 3,509


Mir Muhammad Ali, CFA Chief Executive

Syed Furrukh Zaeem Director


Al-Ameen Islamic Principal Preservation Fund IICash Flow Statement



AL-AMEEN ISLAMIC PRINCIPAL PRESERVATION FUND – IINOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2015

1. LEGAL STATUS AND NATURE OF BUSINESS

Al-Ameen Islamic Principal Preservation Fund II (the 'Fund') was established under a Trust Deedexecuted between UBL Funds Managers Limited, (wholly owned subsidiary company of UnitedBank Limited) as its Management Company and Central Depository Company of Pakistan Limited,as its Trustee. The Trust Deed was executed on 27 August 2013 and the Fund was authorized by theSecurities and Exchange Commission of Pakistan (SECP) on 06 September 2013 in accordance withthe Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (NBFC Rules).The registered office of the Management Company is situated at 8th Floor, State Life Building No. 1,I.I. Chundrigar Road, Karachi, Pakistan.

The Management Company of the Fund is registered with the SECP as a Non-Banking FinanceCompany under the NBFC Rules, 2003.

The Fund is an open ended mutual fund listed on Islamabad Stock Exchange. Units were offered forsubscription upto the end of public offering period. After the initial offering period, the offer of unitswas discontinued. However, the subscription in the units may be re-opened for fresh issuance by themanagement company in accordance with the provisions of the constitutive documents and subject tonecessary approvals. The units are transferable and can be redeemed by surrendering them to theFund at the option of the unit holders. The units of the Fund were initially offered to the public (IPO)on 31 October 2013. The Fund is categorized as Fund of Fund Scheme in accordance with CircularNo. 7 issued by Securities and Exchange Commission of Pakistan.

The objective of the Fund is to earn a potentially high return through dynamic asset allocationbetween Shariah Compliant Equities and Shariah Compliant Income/Money Market based CollectiveInvestment Schemes, while providing principal preservation of the Initial Investment Value atcompletion of the duration of fund.

Title to the assets of the Fund are held in the name of Central Depository Company Limited as aTrustee of the Fund.

The Fund commenced its operation from 7 November 2013. The duration of the fund is 24 monthsfrom the commencement of the life of the Fund and the Fund shall stand automatically dissolved afterthe aforementioned period. Based on the above, the management have assessed and concluded thatthe Fund is no longer a going concern. Accordingly, these financial statements are not prepared on agoing concern basis. The Funds assets and liabilities are measured principally in accordance with thebasis of the measurement disclosed in note 3 of these financial statements. However, no adjustmentsare required in this financial statements as the assets and liabilities are stated at values at which theyare expected to be realised or settled.

2. BASIS OF PRESENTATION

Statement of compliance

These financial statements have been prepared in accordance with the approved accountingstandards as applicable in Pakistan. Approved accounting standards comprise of such InternationalFinancial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are

Al-Ameen Islamic Principal Preservation Fund IINotes to the Financial StatementsFor the year ended June 30, 2015


notified under the Companies Ordinance, 1984, the requirements of the Trust Deed, the Non BankingFinance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules) , the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the NBFC Regulations, 2008)and directives issued by the SECP. Wherever, the requirements of the Trust Deed, the NBFC Rules,the NBFC Regulations, 2008 and the said directives differ with the requirements of these Standards,the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations, 2008 and the saiddirectives shall prevail. requirements of the Trust Deed, Non Banking Finance Companies(establishment & Regulations) Rules, 2003 & NBFC Regulations 2008 shall prevail.

3. BASIS OF PREPARATION

3.1 Basis of measurement

These financial statements have been prepared under the historical cost convention, except thatinvestments are stated at fair values.

3.2 Functional and presentation currency

These financial statements are presented in Pakistan Rupees, which is the functional & presentationcurrency of the Fund and rounded to the nearest thousand rupees.

3.3 Critical accounting estimates and judgments

The preparation of financial statements in conformity with approved accounting standards asapplicable in Pakistan requires management to make judgments, estimates and assumptions thataffect the application of policies and reported amount of assets and liabilities, income and expenses.Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accountingestimates are recognised in the period in which the estimate is revised if the revision affects only thatperiod, or in the period of its revision and future periods if the revision affects both current and futureperiods. In particular, information about assumption and estimation uncertainties that have asignificant risk of resulting in material adjustment within the next financial year as well as criticaljudgment in applying accounting policies that have the most significant effect on the amountsrecognised in the financial statements are as follows:

Judgments made by management in the application of approved accounting standards, as applicablein Pakistan, that have significant effect on the financial statements and estimates with a significantrisk of material judgment in the next year are as follows:

Investments stated at fair value

Fair value estimates are made at a specific point in time, based on net asset value of the funds inwhich the Scheme has made investments. These estimates are subjective in nature and involveuncertainties and matter of judgment (e.g. valuation, interest rates, etc.) and therefore, cannot bedetermined with precision.

Other assets

Judgment is also involved in assessing the realisability of the assets balances.


3.4 New accounting standards and IFRS interpretations that are not yet effective

The following standards, amendments and interpretations are only effective for accounting periods,beginning on or after the date mentioned against each of them. These standards, interpretations andthe amendments are either not relevant to the fund's operations or are not expected to havesignificant impact on the fund's financial statements other than certain additional disclosures.

Standards / amendments / interpretations Effective from accounting periodbeginning on or after

Amendment to IAS 38 'Intangible Assets' and IAS 16Property, Plant and Equipment' 1 January 2016

Amendment to IAS 41 'Agriculture' and IAS 16'Property, Plant and Equipment' 1 January 2016

�Amendments to IAS 27 'Separate Financial Statements' 1 January 2016Amendments to IFRS 10 and IAS 28 1 January 2016IFRS 10 - Consolidated Financial Statements 1 January 2015IFRS 11 - Joint Arrangements 1 January 2015IFRS 12 - Disclosure of Interests in Other Entities 1 January 2015IFRS 13 - Fair Value Measurement 1 January 2015Annual improvements 2012-2014 cycle 1 January 2016

Other than the aforesaid standards, interpretations and amendments, the International AccountingStandards Board (IASB) has also issued the following standards which have not been adoptedlocally by the Securities and Exchange Commission of Pakistan:

IFRS 1 - First Time Adoption of International Financial Reporting StandardsIFRS 9 - Financial InstrumentsIFRS 14 - Regulatory Deferral AccountsIFRS 15 - Revenue from Contracts with Customers

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these financial statements are set outbelow.

4.1 Investment

All investments are initially recognised at cost, being the fair value of the consideration givenincluding the transaction cost associated with the investment, except in case of "financial assets atfair value through profit or loss", in which case the transaction costs are charged off to the incomestatement.

The Fund classifies investments in the following categories:

4.1.1 Financial asset at fair value through profit or loss - upon initial recognition

Investments designated at fair value through profit or loss upon initial recognition include those groupof financial assets which are managed and their performance evaluated on a fair value basis, inaccordance with the documented risk management / investment strategy.

After initial recognition, these investments are remeasured at the fair values, Gains or losses onre-measurement of these investments are recognised in the income statement.


4.1.2 Available for sale

Investments which do not fall under the above categories are classified as available-for-sale. Afterinitial recognition, investments classified as "available-for-sale" are remeasured at fair value,determined with reference to the period-end quoted rates. Gains or losses on remeasurement ofthese investments are recognised directly in the unit holders' funds until the investment is sold,collected or otherwise disposed-off, or until the investment is determined to be impaired, at whichtime the cumulative gain or loss previously reported in unit holders' funds is included in incomestatement.

4.2 Preliminary expenses and floatation costs

Preliminary expenses represent expenditure incurred prior to the commencement of operations of theFund. These costs are being amortised over a period of two years commencing from 7 November2013 (also refer note 7 to these financial statements).

4.3 Issue and redemption of units

Units issued are allocated at the offer price, prevalent on the day on which the applications forpurchase of units are received (however units are issued on the receipt of cash / realisation ofcheques). The offer price represents the net asset value per unit as of the close of the business dayplus the allowable front-end sales load. The sales load is payable to the Management Company asprocessing fee.

Units redeemed are recorded at the redemption price, applicable to units for which the Fund receivesredemption applications during business hours of that day. The redemption price represents the netasset value per unit as of the close of the business day less any back-end load. Redemption of units isrecorded on acceptance of application for redemption.

4.4 Element of income / loss and capital gain / loss included in prices of units sold lessthose in units redeemed (Element)

An equalisation account called the "element of income / loss included in prices of units sold lessthose in units redeemed" is created, in order to prevent the dilution of per unit income and distributionof income already paid out on redemption. Element is recognised in the income statement to theextent that it is represented by income earned during the year.

4.5 Net assets value per unit

The net assets value per unit disclosed in the Statement of Assets and Liabilities is calculated bydividing the net assets of the Fund by the number of units in issue at the period end.

4.6 Taxation

The income of the Fund is exempt from income tax under clause 99 of Part I of the second scheduleto the Income Tax Ordinance, 2001 subject to the condition that not less than ninety percent of itsaccounting income for the year, as reduced by capital gains, whether realised or unrealised, isdistributed among the unit holders in the form of cash.


The Fund provides for deferred taxation using the balance sheet liability method on all majortemporary differences between the amounts used for financial reporting purposes and amounts usedfor taxation purposes. In addition, the Fund also records deferred tax asset on unutilised tax losses tothe extent that it is probable that the related tax benefit will be realised. However, the Fund has notrecognised any amount in respect of deferred tax in these financial statements as the Fund intends tocontinue availing the tax exemption in future years by distributing in the form of cash at least ninetypercent of its accounting income for the year as reduced by capital gains, whether realised orunrealised, to its unit holders every year.

The Fund is also exempt from the provisions of section 113 (minimum tax) under clause 11A of PartIV of the Second Schedule to the Income Tax Ordinance, 2001.

4.7 Revenue recognition

- Gains / losses arising on sale of investments are included in the Income Statement on the date atwhich the transaction takes place.

- Dividend income is recognised when the right to receive the dividend is established.

- Unrealised gains / losses arising on revaluation of securities classified as 'at fair value throughprofit or loss' are included in income statement in the period in which they arise.

- Element of income / loss and capital gains/ losses included in prices of units issued less those inunits redeemed is included in income statement on the date of issue and redemption of units.

4.8 Financial instruments

All the financial assets and liabilities are recognised at the time when the Fund becomes a party tothe contractual provisions of the instrument. Any gain or loss on derecognition of the financial assetand financial liabilities is taken to income directly.

4.9 Offsetting of financial assets and financial liabilities

Financial assets and financial liabilities are only set off and net amount reported in the Statement ofAssets and Liabilities when there is a legally enforceable right to set off the recognised amount andthe Fund intends either to settle on a net basis, or to realize the asset and settle the liabilitysimultaneously.

4.10 Cash and cash equivalents

Cash and cash equivalents comprise of bank balances including term deposits with banks. Cashequivalents are short term highly liquid investments that are readily convertible to known amounts ofcash, are subject to an insignificant risk of changes in value and are held for the purpose of meetingshort term cash commitments rather than for investment for other purposes.

4.11 Expenses

All expenses including Management fee, Trustee fee and Securities and Exchange Commission ofPakistan fee are recognised in the Income Statement on accrual basis.


4.12 Impairment

Impairment loss on financial assets other than ‘available for sale’ investments is recognized in the income statement whenever carrying amount offinancial asset exceeds its recoverable amount. If in the subsequent period, the amount of an impairment loss recognized decreases the impairment isreversed through income statement.

In case of investment classified as ‘available-for-sale’, a significant or prolonged decline in the fair value of the security below its cost is consideredan indicator that the securities are impaired. If any such evidence exists for ‘available-for-sale’ financial assets, the cumulative loss is measured asthe difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized inincome statement is removed from equity and recognized in the income statement.

4.13 Provisions

A provision is recognised when the Fund has a legal or constructive obligation as result of past event and it is probable that an outflow of resourcesembodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisionsare reviewed at each balance sheet date and are adjusted to reflect the current best estimate.

4.14 Dividend distribution

Dividend distributions and appropriations are recorded in the period in which the distributions and appropriations are approved.

4.15 Other assets

Other assets are stated at cost less impairment losses, if any.30 June 30 June

5. BANK BALANCES 2015 2014(Rupees in '000)

PLS saving account 5.1 234 2,384 Current account 3,726 1,125

3,960 3,509

5.1 Profit rates on these bank accounts range between 6.5% to 8.87% (2014: 4.74% to 6.6%) per annum.

6. INVESTMENTS

Name of Investee Funds As at Purchased Sold As at Cost Market value Market value Percentage of Percentage of30 June during the during the 30 June as at 30 as at 30 as at 30 total net assets

2014 year year 2015 June 2015 June 2015 June 2014 investment

At fair value through profitand loss - Units of MutualFunds

Al Ameen Islamic Cash Fund * 2,694,714 20,646,026 18,371,613 4,969,127 525,034 498,167 270,296 41.17% 41.55%Al Ameen Shariah Stock Fund * 8,523,801 17,826,132 20,159,921 6,190,012 688,195 711,913 823,740 58.83% 59.37%

1,213,229 1,210,080 1,094,036 100.00% 100.92%

* These represent investments held in related parties.

6.1 Unrealised gain in the value of investment 30 June 30 June classified as 'at fair value through profit or loss' 2015 2014

Market value of investments 1,210,080 1,094,036 Less: cost of investments (1,213,229) (1,025,819)

(3,149) 68,217

7. PRELIMINARY EXPENSES AND FLOATATION COSTS

Preliminary expenses and floatation costs 3,384 5,000 Amortization during the year (2,500) (1,616)

884 3,384

7.1 Preliminary expenses and floatation costs represent expenditure incurred prior to the commencement of operations of the Fund. These costs arebeing amortised over a period of two years (life of the Fund) commencing from 7 November 2013.

8. PAYBLE TO MANAGEMENT COMPANY

Preliminary expenses and floatation costs - 5,000 Other payables - 50

- 5,050

---------------- (Number of Holdings) ------------------------------------(Rupees in '000)--------------------

(Rupees in '000)


8.1 The management company is entitled to remuneration for services rendered to the Fund under theprovisions of the NBFC Regulations, of an amount not exceeding 3% percent of the average daily netassets during the life of the Fund. Further, as per the requirements of the NBFC Regulations theManagement Company shall not charge any fee if the Fund makes investment in the Collectiveinvestment scheme (CIS) managed by the same Management Company. During the year, the Fundhas invested in the units of the CIS managed by the same Management Company and accordingly ithas not charged any amount on account of the management fee.

8.2 Sindh Sales Tax at the rate of 15% (2014: 16%) on gross value of management fee including federalduties is also applied under the provisions of Sindh Sales Tax on Services Act, 2011. No sales tax waschargeable in the current period as the Management Company (as more fully disclosed in note 8.1) hasnot charged any amount on account of management fee during the year ended 30 June 2015.

9. PAYABLE TO THE TRUSTEE

The trustee is entitled to a monthly remuneration for services rendered to the Fund at 0.13% perannum of average daily net assets.

10. ANNUAL FEE TO SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

This represents annual fee payable to SECP in accordance with the NBFC Regulations 2008, wherebythe Fund is required to pay SECP an amount at the rate of 0.075 percent of the average daily netassets of the Fund in accordance with regulation 62 of NBFC regulations 2008.

11. PROVISION FOR WORKERS' WELFARE FUND

The Finance Act, 2008 introduced an amendment to the Workers' Welfare Fund Ordinance, 1971(WWF Ordinance). As a result of this amendment it is alleged that all Collective Investment Schemes/ mutual funds (CISs) whose income exceeds Rs.0.5 million in a tax year, have been brought within thescope of the WWF Ordinance, thus rendering them liable to pay contribution to WWF at the rate oftwo percent of their accounting or taxable income, whichever is higher. In this regard, a constitutionalpetition has been filed by certain CISs through their trustees in the Honourable High Court of Sindh,challenging the applicability of WWF to the CISs, which is pending adjudication.

Subsequent to the year ended 30 June 2011, the Honourable Lahore High Court (LHC) in aConstitutional Petition relating to the amendments brought in the WWF Ordinance, 1971 through theFinance Act, 2006, and the Finance Act, 2008, has declared the said amendments as unlawful andunconstitutional and struck them down whereas the Sindh High Court (SHC) has passed judgment inother similar cases on 01 March 2013 holding that the Workers Welfare Fund charged in terms ofrelevant provision of WWF Ordinance as the tax and thereby declared the amendments introduced inWWF Ordinance 1971 through the Finance Act 2006 and 2008 respectively are legal and valid.However the case regarding the applicability of tax on mutual funds is still pending adjudication and notyet decided. The Management Company in consultation with the legal counsel has considered theimplications of above judgment of SHC and is of the view that the matter will eventually be settled inits favour and WWF will not be levied on the Fund.

However, considering the open ended nature of the fund, the Board of Directors has resolved that thefund should create provision on account of WWF @ 2% of net accounting income under the WWFOrdinance, 1971.


Furthermore, in the Finance Act, 2015, the mutual funds have been excluded from the levy of WWF.As this change has been made in the definition of the term 'Industrial Establishment' as defined in theWorkers' Welfare Fund Ordinance, 1971, the change may appear to apply prospectively. Accordingly,the management is of the view that this change is applicable from 01 July 2015. Hence, the matterregarding previous years would either need to be clarified by FBR or would be resolved throughcourts. The Management company, as a matter of abundant precaution, has decided to retain theprovision for WWF in these financial statements.

Accordingly, the fund has recorded a provision for WWF of Rs. 5.795 million (2014: 2.776 million) asat 30 June 2015. Had the provision not been made the net asset value per unit of the fund would havebeen higher by Rs. 0.56 per unit.

12. OTHER PAYABLES 30 June 30 June2015 2014

(Rupees in '000)

Provision for indirect duties and taxes 12.1 4,099 4,099 Auditors remuneration payable 215 213 Other payables 4,914 744

9,228 5,056

12.1 The Finance Act, 2013 introduced amendments in Table II of the First Schedule to The Federal ExciseAct 2005, whereby the services of financial institutions including asset management companies weresubjected to Federal Excise Duty (FED) at the rate of 16% effective from 13 June 2013. TheManagement Company is of the view that since the remuneration is already subject to the provincialsales tax, further levy of FED results in double taxation, which does not appear to be the spirit of thelaw. Further, during the current period, the Management Company along with Mutual FundsAssociation of Pakistan, CDC on behalf of some schemes and other asset management companies hasfiled a constitutional petition in the Honourable High Court of Sindh, to repeal Table II, First Scheduleto the Federal Excise Act, 2005, which is currently pending adjudication. However, the SHC hasissued � a stay order against the recovery of FED. The Fund, as a matter of abundant caution, hasmade full provision in respect of FED effective 13 June 2013.

13. CONTINGENT LIABILITY

As at 30 June 2015, there is no contingency.

14. TAXATION

The Fund's income is exempt from Income Tax as per clause (99) of part I of the Second Schedule ofthe Income Tax Ordinance, 2001 subject to the condition that not less than 90% of the accountingincome for the year as reduced by capital gains whether realised or unrealised is distributed amongstthe unit holders in the form of cash. Furthermore, as per regulation 63 of the Non-Banking FinanceCompanies and Notified Entities Regulations, 2008, the Fund is required to distribute 90% of the netaccounting income other than unrealized capital gains to the unit holders. The Fund is also exempt fromthe provisions of Section 113 (minimum tax) under Clause 11 of Part IV of the Second Schedule to theIncome Tax Ordinance, 2001. The management has distributed at least 90% of the income earned bythe year end by this Fund to the unit holders, accordingly no provision has been made in these financialstatements.


15. TRANSACTIONS WITH CONNECTED PERSONS/ RELATED PARTIES

Connected persons / related parties comprise of United Bank Limited (holding Company of Management Company),UBL Fund Managers Limited (Management Company), Al Ameen Islamic Financial Services (PVT) Ltd. (Subsidiaryof Management Company), entities under common management or directorships, Central Depository company ofPakistan Limited (Trustee) and the Directors and Officers of Management Company and unit holders holding more than10% units of the Fund.

Remuneration to the management company and the trustee is determined in accordance with the provision of NonBanking Finance Companies Rules, 2003, Non Banking Finance Companies and Notified Entities regulations, 2008 andthe Trust Deed respectively.

Other transactions with the related parties / connected persons have been carried out at agreed / commercial terms.

Details of transaction with the related parties and balances with them at the period end are as follows:

Management company

Associated companies Trustee

Funds under common

management

Directors and key executives

Other connected persons /

related parties

Transactions during the yearended 30 June 2015

Bank charges - 2 - - - - Units issued - 6,772 - - - 9,857 Purchase of units in funds - - - 4,075,146 - - Sale of units in funds - - - 4,040,687 - - Dividend / bonus received - - - 75,649 - - Dividend paid - (6,772) - - - (9,857) Remuneration - - 1,494 - - -

Balances held as at 30 June 2015Units held in (number in '000) - 1,127 - - - 1,641 Units held (Rupees in '000) - 130,099 - - - 189,370 Bank balances - 3,726 - - - - Securities - - - 1,210,080 - - Remuneration payable - - 127 - - -

Management company


Funds under common

management



Transactions during the period from7 November 2013 to 30 June 2014

Bank charges - 3 - - - - Units issued - 100,045 - - 3,779 151,448 Bonus units issued - 7,184 - - 261 10,457 Purchase of units in funds - - - 2,974,256 - - Sale of units in funds - - - 2,024,774 - - Dividend / bonus received - - - 188,380 - - Remuneration - - 888 - - -

Balances held as at 30 June 2014Units held in (number in '000) - 1,068 - - 39 1,555 Units held (Rupees in '000) - 114,198 - - 4,147 166,225 Bank balances - 1,125 - - - - Securities - - - 1,094,036 - - Remuneration payable - - 116 - - - Other payables 5,050 - - - - -

-------------------------------------------------- (Rupees in '000) --------------------------------------------------

-------------------------------------------------- (Rupees in '000) --------------------------------------------------


15. TRANSACTIONS WITH CONNECTED PERSONS/ RELATED PARTIES

Connected persons / related parties comprise of United Bank Limited (holding Company of Management Company),UBL Fund Managers Limited (Management Company), Al Ameen Islamic Financial Services (PVT) Ltd. (Subsidiaryof Management Company), entities under common management or directorships, Central Depository company ofPakistan Limited (Trustee) and the Directors and Officers of Management Company and unit holders holding more than10% units of the Fund.

Remuneration to the management company and the trustee is determined in accordance with the provision of NonBanking Finance Companies Rules, 2003, Non Banking Finance Companies and Notified Entities regulations, 2008 andthe Trust Deed respectively.

Other transactions with the related parties / connected persons have been carried out at agreed / commercial terms.

Details of transaction with the related parties and balances with them at the period end are as follows:

Management company


Funds under common

management



related parties

Transactions during the yearended 30 June 2015

Bank charges - 2 - - - - Units issued - 6,772 - - - 9,857 Purchase of units in funds - - - 4,075,146 - - Sale of units in funds - - - 4,040,687 - - Dividend / bonus received - - - 75,649 - - Dividend paid - (6,772) - - - (9,857) Remuneration - - 1,494 - - -

Balances held as at 30 June 2015Units held in (number in '000) - 1,127 - - - 1,641 Units held (Rupees in '000) - 130,099 - - - 189,370 Bank balances - 3,726 - - - - Securities - - - 1,210,080 - - Remuneration payable - - 127 - - -

Management company


Funds under common

management



Transactions during the period from7 November 2013 to 30 June 2014

Bank charges - 3 - - - - Units issued - 100,045 - - 3,779 151,448 Bonus units issued - 7,184 - - 261 10,457 Purchase of units in funds - - - 2,974,256 - - Sale of units in funds - - - 2,024,774 - - Dividend / bonus received - - - 188,380 - - Remuneration - - 888 - - -

Balances held as at 30 June 2014Units held in (number in '000) - 1,068 - - 39 1,555 Units held (Rupees in '000) - 114,198 - - 4,147 166,225 Bank balances - 1,125 - - - - Securities - - - 1,094,036 - - Remuneration payable - - 116 - - - Other payables 5,050 - - - - -

-------------------------------------------------- (Rupees in '000) --------------------------------------------------

-------------------------------------------------- (Rupees in '000) --------------------------------------------------

Co

16. FINANCIAL INSTRUMENTS BY CATEGORY

Total

On balance sheet - financial assetsBank balances 3,960 - - - 3,960 Investments - 1,210,080 - - 1,210,080 Accrued mark-up 13 - - - 13

3,973 1,210,080 - - 1,214,053

On balance sheet - financial liabilitiesPayable to the Management Company - - - - - Payable to the Trustee - - - 127 127 Payable to SECP - - - 862 862 Other liabilities - - - 5,129 5,129

- - - 6,118 6,118

Total

On balance sheet - financial assetsBank balances 3,509 - - - 3,509 Investments - 1,094,036 - - 1,094,036 Accrued mark-up 56 - - - 56

3,565 1,094,036 - - 1,097,601

On balance sheet - financial liabilitiesPayable to the Management Company - - - 5,050 5,050 Payable to the Trustee - - - 116 116 Payable to SECP 512 512 O

Documents

AIFPF II - Conventional VPS Fundwise Booklet coveriii) Explanation as to whether the Collective Investment Scheme achieved its stated objective ... AIPPF-II is a fund-of-funds scheme