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Key to Success

Index Tracker Fund

AKDI n c o m e F u n d

AKDOpportunity Fund

AKDManaged by: AKD Investment Management Ltd.

1st Quarter ReportSeptember 30, 2008 (Un-audited)

AKD INCOME FUND

First Quarter Report I September 30, 2008

CONTENTSCorporate Information

Mission & Vision Statement

Report of The Directors of the Management Company

Fund Manager's Report

Condensed Interim Statement of Assets and Liabilities

Condensed Interim Income Statement

Condensed Interim Distribution Statement

Condensed Interim Cash Flow Statement

Condensed Interim Statement of Movement in Unit Holders' Fund

Notes to and Forming Part of the Condensed Interim Financial Statements


AKD INCOME FUND

CORPORATE INFORMATIONBOARD OF DIRECTORS OF THE

MANAGEMENT COMPANY

Chairman

Mr. Farrukh Shaukat Ansari

Chief Executive Officer

Mr. Faisal Bengali

Directors

Mr. Ashraf Adamjee

Mr. Asif Ikram

Mr. Farooq Ahmed Awan

Mr. Imran Motiwala

Mr. Zahoor Motiwala

COMPANY SECRETARY & CFO OF THE

MANAGEMENT COMPANYMr. Muhammad Amin Hussain

AUDIT COMMITTEE

Chairman

Mr. Ashraf Adamjee

Members

Mr. Imran Motiwala

Mr. Zahoor Motiwala

INTERNAL AUDITORS

Ford Rhodes Sidat Hyder & Co.

Chartered Accountants

Progressive Plaza, Beaumont Road,

P.O. Box 15541, Karachi 75530.

TRUSTEECentral Depository Company

of Pakistan Limited

Suite # M-13-16, Mezzanine Floor,

Progressive Plaza, Beaumont Road,

Near PIDC House, Karachi.

BANKERSAllied Bank Limited

Arif Habib Bank Limited

Bank Alfalah Limited

Bank Al-Habib Limited

Citibank N.A. Pakistan

Habib Bank Limited

Habib Metropolitan Bank LimitedKASB Bank LimitedMCB Bank LimitedMybank LimitedSoneri Bank LimitedStandard Chartered Bank (Pakistan) LimitedThe Bank of KhyberThe Bank of PunjabUnited Bank Limited

AUDITORSA.F. Ferguson & Co.Chartered AccountantsState Life Building No. 1-C,I.I. Chundrigar Road,P.O. Box 4716, Karachi-74000

LEGAL ADVISERSattar & SattarAttorneys -at -law3rd Floor, UBL Building,I.I. Chundrigar Road,Karachi

REGISTRARGangjees Registrar Services (Pvt.) Ltd.516, Clifton Centre, Khayaban-e-Roomi,Kehkashan, Block-5, Clifton, Karachi.Tel: 5375714 - 5836920.

DISTRIBUTORSAKD Investment Management LimitedAKD Securities LimitedBMA Capital Management LimitedIGI Investment Bank LimitedKASB Securities LimitedThe Bank of PunjabAccesss Financial Services (Private) LimitedAl-Falah Securities (Private) LimitedReliance Financial Products (Private) Limited

RATINGAKD Income Fund (Fund)JCR-VIS: �A - (f)� (Single A Minus (f))AKD Investment Management Ltd. (AMC)JCR-VIS: AM3+ (AM - Three Plus)


AKD INCOME FUND

MISSION STATEMENT

VISION

AKD Income Fund shall aim to preserve its investor�s capital,

while providing the highest quality industry leading returns. Our

goal is to provide investors with a financial product that offers

them a consistent stream of returns, with ample liquidity, catering

to their immediate financial needs, and encouraging long term

savings. AKD Investment Management�s team�s objective is to

offer our clients professionalism and services, defining the standard

for excellence, benchmarked on a global level.

To achieve distinction for consistent, quality returns and highest

standards of service in fixed income as an asset class and become

an indispensable Investment Manager for the masses.


AKD INCOME FUND

REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY

The Board of Directors of AKD Investment Management Ltd (AKDIML), the management company of AKD Income Fund (AKDIF) is

pleased to present its report along with the accounts of the fund for the first quarter FY09 ended September 30, 2008.

Investment Strategy

AKD Income Fund is a dedicated fund that focuses primarily on fixed income securities and instruments. The objective of AKDIF is to

offer investors an ideal vehicle to invest in a diversified portfolio of fixed income securities / instruments that provide consistent optimum

returns with concern for preservation of capital.

Fund Performance

The Fund generated an annualized return of 11.14% for the First Quarter FY09 (Opening Ex-NAV of PkR 50.4221 and ending NAV of PkR

51.7830). The net income for the quarter stood at PkR 48mn with the fund size of PkR 2.274bn.

Market Performance

As compared to FY07-08 financial sector faced a severe liquidity crunch since the start of this quarter. Combined effect of SBP monetary

tightening act and withdrawals for the holy month of Ramzan and Eid were the main causes behind lack of liquidity with in the system.

During the quarter overnight lending rates showed a continuous upward trend and call rates went as high as 50% along with Karachi

Inter Bank Offer Rate (KIBOR) which also showed an upward movement averaging 13.91% during this quarter.

Future Outlook

The government has taken some prudent measures as it slashed subsidies on diesel and power. Current liquidity crunch is the real

concern and support from the IMF will help the foreign exchange reserves of the country.

Acknowledgements

The Directors would like to take this opportunity to thank the Securities and Exchange Commission of Pakistan, the Ministry of Finance

and the State Bank of Pakistan for their support to the mutual fund industry.

For and on behalf of the Board

Faisal Bengali

Karachi: October 17, 2008 Chief Executive Officer


AKD INCOME FUND

FUND MANAGER�S REPORT

The Fund posted an annualized return of 11.14% for the First Quarter FY09. (Opening Ex-NAV of PkR 50.4221 and ending NAV of PkR

51.7830). The net income for the quarter stood at PkR 48mn with the fund size of PkR 2.274bn at the end of first quarter FY09.

Investment Strategy

AKD Income Fund is a dedicated fund that focuses primarily on fixed income securities and instruments. The objective of AKDIF is to

offer investors an ideal vehicle to invest in a diversified portfolio of fixed income securities / instruments that provide consistent optimum

returns with concern for preservation of capital.

Investing Activities

In order to maintain low risk profile AKDIF continued with its strategy of maintaining a diversified portfolio of fixed income

securities/instruments generating superior long-term risk adjusted returns keeping a balance of income and growth while preserving

the capital. Following are the key changes in the portfolio of the AKD Income Fund.

� Investments in Term Finance Certificates / Sukuks increased to 45.07% on September 30, 2008 from 39.02% on June

30, 2008 of the net assets.

� Investments in TDR stood at 32.11% on September 30, 2008 from 28.25% on June 30, 2008 of the net assets.

� Investments in COM/COI stood at 20.89% on September 30, 2008 of net assets from 18.83% on June 30, 2008.

� Other Assets stood at 1.93% on September 30, 2008 from 13.90% on June 30, 2008.

Fund Strategy and Outlook

During the first quarter FY09 money market faced severe liquidity shortage due to SBP monetary tightening and withdrawal of deposits

for the holy month of Ramadan and Eid. Commercial banks relied on SBP to square their positions almost everyday. During the last

couple of weeks towards the end of the quarter, inter-bank rates went up as high as 50%. SBP addressed this issue by making PIBs

SLR eligible, while the 19% SLR (Statuary Liquidity Requirement) on long term stable deposits (greater than 1 year) has been completely

done away with. Simultaneously CRR was reduced by 3% from October 18, 2008 and will be reduced by another 1% till November 15,

2008 which led to an injection of PkR 240bn in the money market.

We believe the steps taken by country's economic managers so far, are in the right direction. Although, the need of the hour suggest

an extra leap forward to effectively combat the financial crisis and stimulate economic growth. We expect SBP to act inline with Central

Banks of other countries and strongly urge SBP to cut discount rate in order to make market functional again, ensuring flow of liquidity

to all the market participants.

Distribution for the Quarter

The Board has approved an interim bonus of PkR 0.75/- per unit.

COM/COI - 20.89%

Other Assets - 1.93%

TFCs/Sukuks - 45.07%

TDR - 32.11%


AKD INCOME FUND

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIESAS AT SEPTEMBER 30, 2008

(Unaudited) (Audited) September 30, June 30,

2008 2008Note Rupees in '000'

ASSETS

Bank balances 4 3,489 114,070

Receivable against Continuous Funding System (CFS) transactions - 39,323

Investments 5 1,076,819 1,732,948

Loans and receivables 6 1,228,751 1,896,276

Dividend and other receivables 7 65,558 112,711

Deposits and prepayments 4,253 4,367

Preliminary expenses and floatation costs 1,749 1,875

Total assets 2,380,619 3,901,570

LIABILITIES

Payable to AKD Investment Management Limited

- Management Company 6,412 6,318

Payable to Central Depository Company of Pakistan

Limited - Trustee 293 431

Payable to Securities and Exchange Commission of Pakistan 782 4,601

Payable on redemption of units 98,463 13,131

Accrued expenses and other liabilities 8 1,167 672

Total liabilities 107,117 25,153

Net assets 2,273,502 3,876,417

Unit Holders� Fund (as per statement attached) 2,273,502 3,876,417

CONTINGENCIES AND COMMITMENTS 9

(Number of Units)

Number of units in issue 43,904,338 75,384,360

(Rupees)

Net asset value per unit 51.78 51.42

Face value per unit 50.00 50.00

The annexed notes 1 to 14 form an integral part of these condensed interim financial statements.

For AKD Investment Management Limited

(Management Company)

Faisal Bengali Imran MotiwalaChief Executive Officer Director


AKD INCOME FUND

CONDENSED INTERIM INCOME STATEMENT (UNAUDITED)

FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2008

Quarter endedSeptember 30,

2008 2007Note Rupees in '000'

INCOME

Capital loss on sale of investments (5,756) -

Profit on bank deposits 2,972 26,436

Income from Term Deposit Receipts 28,110 14,562

Income from spread transactions - 24,935

Income from Continuous Funding System transactions 66 424

Income from Term Finance Certificates and Sukuk bonds 45,772 4,988

Income from Government Securities 1,325 134

Income from Commercial Papers 831 -

Income from Certificates of Musharika and Certificates of Investment 16,429 3,717

Other Income 369 -

90,118 75,196

Unrealised appreciation on re-measurement of investments at

fair value through profit or loss - net 4,067 9,893

Unrealised diminiuation on revaluation of future contracts - (6,458)

Total Income 94,185 78,631

EXPENSES

Remuneration of AKD Investment Management Limited - Management Company 8,329 7,528

Remuneration of Central Depository Company of Pakistan Limited - Trustee 1,034 937

Annual fee - Securities and Exchange Commission of Pakistan 782 684

Brokerage and Capital value tax 69 826

Borrowing costs 859 -

Fees and Subscription 291 15

Legal and Professional Charges 63 -

Auditors' remuneration 63 57

Settlement and bank charges 40 70

Amortisation of preliminary expenses and floatation costs 126 126

Total Expenses 11,656 10,243

Net Income from operating activities 82,529 68,388

Element of accrued income / (loss) and capital gains / (losses) included

in prices of units issued less those in units redeemed (34,582) 37,594

Net Income 47,947 105,982

Earnings per unit 10






AKD INCOME FUND

CONDENSED INTERIM DISTRIBUTION STATEMENT (UNAUDITED)



2008 2007Rupees in '000'

Undistributed income brought forward 105,685 83,826

Final distribution

(2008: for the year ended June 30, 2008: Rs 1.00 per unit

Date of distribution: July 07, 2008)

(2007: for the period from October 2, 2006 to June 30, 2007: Rs 1.59 per unit

Date of distribution: July 11, 2007)

- Cash distribution (13,747) -

- Issue of bonus units (61,638) (75,443)

Element of income / (loss) and capital gains / (losses) included in

prices of units sold less those in units redeemed - amount

representing income / (losses) that form part of the unit holders' fund (460) -

Net income for the period 47,947 105,982

Undistributed income carried forward 77,787 114,365






AKD INCOME FUND


2008 2007Rupees in '000'

CASH FLOW FROM OPERATING ACTIVITIES

Net income for the period 47,947 105,982

Adjustments for non-cash and other itemsUnrealised appreciation in fair value of investments 'at fair value through profit or loss - net (4,067) (9,893)Unrealised diminiuation on revaluation of future contracts - 6,458Element of (income) / loss and capital (gains) / losses included in prices of units issued less those in units redeemed 34,582 (37,594)Amortisation of preliminary expenses and floatation costs 126 126Remuneration of AKD Investment Management Limited - Management Company 8,329 7,528Remuneration of Central Depository Company of Pakistan Limited - Trustee 1,034 937

87,951 73,544(Increase) / decrease in assetsReceivable against Continuous Funding System Transactions 39,323 17,673Investments 659,179 (610,381)Loans and Receivables 667,525 (840,000)Dividend and other receivables 47,153 (13,176)Deposits and prepayments 114 (26)Receivable against sale of investments - 235,256

1,413,294 (1,210,654)Increase / (decrease) in liabilities Payable against purchase of investments - 12,155Payable to AKD Investment Management Limited - Management Company (593) 996Payable to Central Depository Company of Pakistan Limited - Trustee 1 (20)Payable to Securities and Exchange Commission of Pakistan (3,819) 684Accrued expenses and other liabilities 495 7,274

(3,916) 21,089Remuneration paid to AKD Investment Management Limited - Management Company (7,642) (6,387)Remuneration paid to Central Depository Company of Pakistan Limited- Trustee (1,173) (833)

Net cash generated / (used) from / in operating activities 1,488,514 (1,123,241)

CASH FLOW FROM FINANCING ACTIVITIES

Net (payments) / receipts against redemption / sales of units (1,585,348) 1,481,129Dividend paid (13,747) -Net cash (outflow) / inflow from financing activities (1,599,095) 1,481,129

Net (decrease) / increase in cash and cash equivalents during the period (110,581) 357,888Cash and cash equivalents at the beginning of the period 114,070 1,093,308

Cash and cash equivalents as at the end of the period 3,489 1,451,196


CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)






AKD INCOME FUND


2008 2007Rupees in '000'

Net assets at the beginning of the year 3,876,417 2,450,766

Issue of 23,619,016 units (2007: 59,896,636 units) 1,201,527 3,062,134Redemption of 56,321,471 units (2007: 31,006,428 units) (2,872,207) (1,580,295)

(1,670,680) 1,481,839Element of (income) / loss and capital (gains) / losses included in prices of units issued less those in units redeemed

- amount representing (income) / loss and capital (gains) / losses - transferred to Income Statement 34,582 (37,594)

- amount representing (income) / loss that form part of unit holders' fund - transferred to Distribution Statement 460 -

35,042 (37,594)

Net unrealised (diminution) in fair value of investments classified as �available for sale� (342) -Capital gain realised against sale of investments classified as �available for sale� (675) -

(1,017) -Issue of 1,222,433 final bonus units (2007: Issue of 1,503,528 bonus units for the period from October 2, 2006 to June 30, 2007) 61,638 75,443

Other net income for the period 49,636 102,547

Element of loss and capital losses included in prices of units issued less those in units redeemed - amount representing unrealised diminution (460) -

Capital loss on sale of investments (5,756) -

Unrealised appreciation on re-measurement of investments at fair value through profit or loss - net 4,067 9,893

Unrealised diminiuation on revaluation of future contracts - (6,458)

Final distribution (2008: for the year ended June 30, 2008: Rs 1.00 per unit Date of distribution: July 07, 2008) (2007: for the period from October 2, 2006 to June 30, 2007: Rs 1.59 per unit Date of distribution: July 11, 2007) - Cash distribution (13,747) - - Issue of bonus units (61,638) (75,443)

(27,898) 30,539

Net assets at the end of the year 2,273,502 4,000,993


CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND (UN-AUDITED)






AKD INCOME FUND

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)


1. LEGAL STATUS AND NATURE OF BUSINESS

AKD Income Fund (the Fund) was established under a Trust Deed executed between AKD Investment Management Limited

(AKDIML) as the Management Company and Central Depository Company of Pakistan Limited (CDC) as the Trustee. The Securities

and Exchange Commission of Pakistan (SECP) authorised constitution of the Trust Deed on September 11, 2006 and it was

executed on October 2, 2006 in accordance with the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003

(NBFC Rules). The Fund commenced operations from March 23, 2007.

The Management Company of the Fund has been licensed to act as an Asset Management Company under the NBFC Rules through

a certificate of registration issued by SECP. The registered office of the Management Company is situated at 606, Continental

Trade Centre, Block 8, Clifton, Karachi.

The Fund is an open ended mutual fund and is listed on the Karachi Stock Exchange. Units are offered for public subscription on

a continuous basis. The units are transferable and can also be redeemed by surrendering to the Fund.

JCR-VIS Credit Rating Company Limited has assigned a management quality rating of 'AM3+' to the Management Company and

fund stability rating of "A-(f)" to the Fund.

The principal activity of the Fund is to make investments in fixed income securities. Other avenues of investments include spread

transactions in listed securities and transactions under Continuous Funding System. Title of the assets of the Fund are held in

the name of Central Depository Company of Pakistan Limited as trustee of the Fund.

2. STATEMENT OF COMPLIANCE

2.1 These condensed interim financial statements have been prepared in accordance with approved accounting standards as

applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS)

issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984, the requirements

of the Trust Deed, the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules), the

Non-Banking Finance Companies and Notified Entities Regulations, 2007 (the NBFC Regulations) and directives issued by

the Securities and Exchange Commission of Pakistan (SECP). Wherever the requirements of the Trust Deed, the NBFC Rules,

the NBFC Regulation or directives issued by SECP differ with the requirements of IFRS, the requirements of the Trust Deed,

the NBFC Rules, the NBFC Regulations or the directives issued by SECP prevail. The disclosures made in these condensed

interim financial statements have, however, been limited based on the requirements of the International Accounting Standard

34: 'Interim Financial Reporting'.

2.2 These condensed interim financial statements are unaudited.

3. ACCOUNTING POLICIES

The accounting policies adopted in preparation of these financial statements are the same as those applied in the preparation of

the published financial statements of the Fund for the year ended June 30, 2008.

(Unaudited) (Audited)

September 30, June 30,

2008 2008

Note Rupees in '000'

4. BANK BALANCES

In current accounts 252 452

In savings accounts 3,237 113,618

3,489 114,070

5. INVESTMENTS

Financial assets at fair value through profit or loss - held for trading

- Quoted equity securities 5.1 52,196 47,028

- Fixed income and other debt securities 5.2 744,040 1,223,176

Available for sale

- Fixed income and other debt securities 5.3 280,583 462,744

1,076,819 1,732,948


AKD INCOME FUND

Number of shares Balance as at Septembter 30, 2008

Name of the Investee Company As atJuly 1, 2008

Purchasesduring

the period

Bonus /Rights issue

Salesduring

the period

As atSept. 30,2008

Book ValueMarketvalue

Appreciation/(Diminution)

Marketvalue as

a percentage ofinvestments

5.1 'Assets at fair value through profit or loss' - held for trading (Quoted equity securities)

SHARES OF LISTED COMPANIES - Preference shares

Leasing Companies

Security Leasing Corporation

(Preference shares) 5,167,875 - - - 5,167,875 47,028 52,196 5,168 2.30% 4.85%

Total listed equity securities 47,028 52,196 5,168

Rupees in �000�

Marketvalue as

a percentageof net assets



Note 2008 2008

(Rupees in '000)

Term finance certificates and Sukuk Bonds 5.2.1 744,040 1,049,709

Government Securities 5.2.2 - 173,467

744,040 1,223,176

5.2 'Assets at fair value through profit or loss' - held for trading (Fixed income and other debt securities)

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Certificates / Bonds of Rs 5,000 each unless otherwise stated

Term finance certificates - Listed

Pakistan Mobile Communications Limited 50,000 - 50,000 - - - - - - -

Dewan Cement Limited * 20,000 - - 20,000 6 months KIBOR+2.00% 100,000 100,000 - 4.40% 9.29%

Worldcall Telecom Limited * 20,000 - - 20,000 6 months KIBOR+1.60% 100,000 100,000 - 4.40% 9.29%

United Bank Limited (10-8-04) 13,540 - - 13,540 8.45% (Fixed) 59,448 59,147 (301) 2.60% 5.49%

Faysal Bank Limited 1,104 - - 1,104 6 months KIBOR+1.40% 5,670 5,612 (58) 0.25% 0.52%

Engro Chemical Pakistan Limited (30-11-07) 1,825 - 1,800 25 6 months KIBOR+1.55% 126 125 (1) 0.01% 0.01%

United Bank Limited (14-2-08) 12,000 - - 12,000 6 months KIBOR+0.85% 59,658 59,412 (246) 2.61% 5.52%

Pak Arab Fertilizers Limited 6,724 - 6,000 724 6 months KIBOR+1.50% 3,613 3,628 15 0.16% 0.34%

NIB Bank Limited 8,000 - 8,000 - - - - - - -

Pace Pakistan Limited 115 - - 115 6 months KIBOR+1.50% 582 581 (1) 0.03% 0.05%

329,097 328,505 (592)

Term finance certificates - Unlisted

Engro Chemical Pakistan Limited (PRP II) 20,000 - - 20,000 6 months KIBOR+1.25% 100,630 100,600 (30) 4.42% 9.34%

Engro Chemical Pakistan Limited (PRP I) 8,900 - - 8,900 6 months KIBOR+1.70% 45,279 44,803 (476) 1.97% 4.16%

Al-Abbas Sugar Mills Limited 5,000 - - 5,000 6 months KIBOR+1.75% 25,135 25,132 (3) 1.11% 2.33%

JDW Sugar Mills Limited 14,000 - - 14,000 3 months KIBOR+1.25% 70,000 70,000 - 3.08% 6.50%

241,044 240,535 (509)

Sukuk Bonds - Unlisted

B.R.R. Guardian Modaraba - 5,000 - 5,000 6 months KIBOR+1.30% 25,000 25,000 - 1.10% 2.32%

House Building Finance Corporation Limited 30,000 - - 30,000 6 months KIBOR+1.00% 150,000 150,000 - 6.60% 13.93%

175,000 175,000 -

745,141 744,040 (1,101)

* This represents amount invested in private placement of term finance certificates which have not been issued uptill September 30, 2008.

Number of certificates / bonds


Purchasesduring

the period

Sales /redeemed

during the period

As atSept. 30,2008

Profit / mark-up rateBook Value

Market valueas at

Sept. 30, 2008


Percentageof

total investments

5.2.1 Term finance Certificates and Sukuk Bonds

Rupees in �000�

Percentageof

net assets

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Face Value Balance as at September 30, 2008 Percentage in relation to

Issue dateTenor Balance

as at1 July 2008

Rupees in �000�

5.2.2 Government Securities

Purchasesduring

the period

Saleduring

the period

Balanceas at

30 September2008

Book ValueFair value

as at30 Sept. 2008

Appreciation /(diminution)

Fair Valueas a percentage

of net assets

Fair Valueas a percentageof Investments

Pakistan Investment Bonds

October 31, 2006 20 Years 25,000 - 25,000 - - - - - -

October 31, 2006 15 Years 95,000 - 95,000 - - - - - -

August 22, 2007 10 Years 100,000 - 100,000 - - - - - -

220,000 - 220,000 - - - -



Note 2008 2008

(Rupees in '000)

Term finance certificates and Sukuk Bonds 5.3.1 280,583 462,744

5.3 Available for sale (Fixed income and other debt securities)

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Certificates / Bonds of Rs 5,000 each unless otherwise stated

Term Finance Certificates - Unlisted

KASB Securities Limited 10,000 - 5,000 5,000 6 months KIBOR+1.90% 25,395 25,190 (205) 1.11% 2.34%

Trakker (Pvt.) Limited 200 - - 200 6 months KIBOR+3.50% 15,000 15,000 - 0.66% 1.39%

First Dawood Investment Bank Limited 6,300 - - 6,300 6 months KIBOR+1.60% 31,840 31,674 (166) 1.39% 2.94%

Pakistan Mobile Communications Limited 25,000 - 10,000 15,000 6 months KIBOR+1.30% 74,685 74,685 - 3.29% 6.94%

Avari Hotels Limited 7,093 - - 7,093 6 months KIBOR+3.25% 35,467 35,467 - 1.56% 3.29%

Al-Abbas Sugar Mills Limited 7,000 - 6,000 1,000 6 months KIBOR+1.75% 5,027 5,026 (1) 0.22% 0.47%

Trakker (Pvt.) Limited - private placement

of Rs 14,000,000 1 - 1 - - - - - - -

187,414 187,042 (372)

Sukuk Bonds - Unlisted

New Allied Electronics Industries (Pvt.) Limited

-certificate of Rs 312.5 each 96,000 - - 96,000 3 months KIBOR + 2.60% 30,201 30,225 24 1.33% 2.81%

Kohat Cement Company Limited 13,000 - 2,000 11,000 6 months KIBOR + 1.80% 53,252 53,273 21 2.34% 4.95%

Maple Leaf Cement Factory Limited 12,000 - 10,000 2,000 6 months KIBOR + 1.70% 10,058 10,043 (15) 0.44% 0.93%

93,511 93,541 30

280,925 280,583 (342)

Number of certificates / bonds


Purchasesduring

the period

Sales /redeemed

during the period

As atSept. 30,2008

Profit / mark-up rateBook Value

Market valueas at

Sept. 30, 2008


Percentageof

total investments

5.3.1 Term finance Certificates and Sukuk Bonds

Rupees in �000�

Percentageof

net assets

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2008 2008

Note Rupees in '000'

5.4 Net unrealised (diminution) / appreciation on re-measurement of

investments classified as 'financial assets through profit or loss' - net

Market value of securities 796,236 1,270,204

Less: carrying value of securities (792,169) (1,290,826)

4,067 (20,622)

5.5 Net unrealised appreciation on re-measurement of investments

classified as available for sale' - net

Market value of securities 280,583 462,744

Less: carrying cost of securities (280,086) (461,230)

497 1,514

6. LOANS AND RECEIVABLES

Certificates of Musharika 6.1 300,000 555,000

Certificates of Investment 6.2 175,000 175,000

Commercial Papers 6.3 23,751 71,276

Term Deposit Receipts 6.4 730,000 1,095,000

1,228,751 1,896,276

Name of Modaraba / Investee CompanyExpected

profit /mark-up rate

MaturityCarrying

amount as atSept. 30, 2008

(Rupees in '000)

6.1 Certificates of Musharika

First Punjab Modaraba 11.20% - 11.90% 3 - 6 months 150,000

First National Bank Modaraba 14.18% - 14.31% 3 - 30 months 150,000

300,000

6.2 Certificates of Investment

Orix Investment Bank Limited 10.95% 6-Mar-09 50,000

Al-Zamin Leasing Corporation Limited 15.80% 14-Feb-09 25,000

Saudi Pak Leasing Company Limited 14.82% 20-Feb-10 100,000

175,000

6.3 Commercial Papers

IGI Insurance Company Limited 10.66% 23-Oct-08 23,751

23,751

6.4 Term Deposit Receipts

Bank of Punjab 11.40% - 12.00% 19-Mar-09 400,000

Mybank Limited 10.80% - 13.00% 3 -12 months 300,000

Tameer Microfinance Bank 13.00% 30-Apr-09 30,000

730,000


AKD INCOME FUND



2008 2008

Rupees in '000'

7. DIVIDEND AND OTHER RECEIVABLES

Profit receivable on bank deposits and certificates of Musharika and Investment 24,281 58,384

Income accrued on CFS transactions - 773

Income accrued on Term Finance Certificates and Sukuk Bonds 40,035 35,370

Income accrued on Pakistan Investment Bonds - 5,441

Income accrued on security margin deposits - 8

Income accrued on commercial papers 1,096 2,740

Receivable against conversion of units 146 9,995

65,558 112,711

8. ACCRUED EXPENSES AND OTHER LIABILITIES

Brokerage 20 62

National Clearing Company Charges - 38

Withholding tax payable 23 8

Auditors' remuneration 80 193

Others 1,044 371

1,167 672

9. CONTINGENCIES AND COMMITMENTS

Continuous Funding System (CFS) transactions (including transactions

to be rolled over) entered into by the Fund in respect of which the

purchase transactions have not been settled as at period / year end - 30,960

10. Earnings per unit

Earnings per unit (EPU) has not been disclosed as in the opinion of the management determination of weighted average units for

calculating EPU is not practicable.

(Unaudited) For the

First Quarter endedSeptember 30

2008 2007Rupees in '000'11. TRANSACTIONS WITH CONNECTED PERSONS

11.1 Transactions during the period

AKD Investment Management Limited - Management Company

Purchase of units (2008: 485,788 ; 2007: Nil) 25,000 -

Redemption of units (2008: 58,063 ; 2007: Nil) 3,000 -

Management fee 8,329 7,528

Sales load 64 1,598

Preliminary expenses and floatation costs paid by the Management Company 500 -

Central Depository Company of Pakistan Limited - Trustee

Trustee fee 1,034 937


Redemption of units (2008: 489,629 ; 2007: Nil ) 25,000 -

Issue of bonus units (2008: 35186 ; 2007: 21,846) 1,774 1,096


AKD INCOME FUND

(Unaudited) For the

First Quarter endedSeptember 30

2008 2007Rupees in '000'

AKD Investment Management Limited Staff Provident Fund

Purchase of units (2008: 75,613 ; 2007: 4,875) 3,875 250

Redemption of units (2008: Nil ; 2007: 20,164) - 1,021

Issue of bonus units (2008: 1,027 ; 2007: 621) 52 31

Key management personnel - Asset Management Company

Purchase of units (2008: Nil; 2007: 202,652) - 10,244

Redemption of units (2008: Nil; 2007: 29,263) - 1,479

Issue of bonus units (2008: Nil; 2007: 901) - 45

Aqeel Karim Dhedhi Securities (Private) Limited

Issue of bonus units (2008: 52,513 ; 2007: 76,226) 2,648 3,825

AKD Opportunity Fund

Purchase of units (2008: 4,779,407 ; 2007: Nil) 244,000 -

Redemption of units (2008: 4,612,617 ; 2007: Nil) 236,358 -

Issue of bonus units (2008: 11,570 ; 2007: Nil) 583 -

AKD Index Tracker Fund


Redemption of units (2008: 194,802 ; 2007: Nil) 10,087 -

AKD Securities Limited - Brokerage House

Brokerage - 13



2008 2008

Rupees in '000'11.2 Amounts outstanding as at the period / year end

AKD Investment Management Limited - Management Company

Management fee payable 4,495 3,807

Preliminary expenses and floatation costs 1,875 2,375

Sales load payable 42 23

Rating fee payable - 113

Units held (Sept. 30, 2008: 427,725; June 30, 2008: Nil) 22,149 -

28,561 6,318

Central Depository Company of Pakistan Limited - Trustee

Trustee fee payable 292 431

CDS charges Payable 1 -

Units held (Sept. 30, 2008: 2,297,861 ; June 30, 2008: 1,774,153) 118,990 91,230

119,283 91,661


AKD INCOME FUND



2008 2008

Rupees in '000'

Aqeel Karim Dhedhi Securities (Private) Limited

Units held (Sept. 30, 2008: 2,700,343 ; June 30, 2008: 2,647,830) 139,832 136,157

AKD Opportunity Fund

Receivable against Conversion of Units 146 9,995

Units held (Sept. 30, 2008: 761,724 ; June 30, 2008: 583,364) 39,444 29,998

39,590 39,993

AKD Investment Management Limited - Staff Provident Fund

Units held (Sept. 30, 2008: 128,412 ; June 30, 2008: 51,772) 6,650 2,662

12. NON - ADJUSTING EVENT AFTER THE BALANCE SHEET DATE

The Board of Directors of the Management Company in its meeting held on October 17, 2008 has approved an interim bonus

of 1.4874% for the period ended September 30, 2008 (September 30, 2007; NIL). This condensed interim financial statements

for the first quarter ended September 30, 2008 do not include the effect of this distribution which will be accounted for in the

condensed interim financial statements for the half year ending December 31, 2008.

13. DATE OF AUTHORISATION FOR ISSUE

These financial statements were authorised for issue on October 17, 2008 by the Board of Directors of the Management Company.

14. GENERAL

Figures have been rounded off to the nearest thousand rupees unless otherwise specified.





AKD INCOME FUND

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606, Continental Trade Centre, Block-8, Clifton, Karachi-74000U.A.N : 92-21-111-AKDIML (111-253-465) Fax : 92-21-5373217

E-mail : [email protected] Website : www.akdinvestment.com

AKD InvestmentManagement Ltd.

Karachi Branch:

Shop No. 1, Plot No. SB-44/2,

Good Time Appartment,

Block 13-B, Gulshan-e-Iqbal, Karachi.

U.A.N : 92-21-111-AKDIML (111-253-465)

Karachi Branch:

Shop No. 13,

Pardesi Pride Building,

Frere Town, Clifton, Karachi.

U.A.N : 92-21-111-AKDIML (111-253-465)

Islamabad Branch:

Eastern Side Basement No.1-A,

Pak Pavilion, 65-E, Fazal-e-Haq Road,

Blue Area, Islamabad.

U.A.N : 92-51-111-AKDIML (111-253-465)

Lahore Branch:

306-A, 6th Floor,

Siddiq Trade Centre,

Gulberg, Lahore.

U.A.N : 92-42-111-AKDIML (111-253-465)

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