ABAMCO Limited, the management company of Unit Trust of Pakistan (UTP), UTP-Income Fund  (UTP-IF) & UTP-Islamic Fund (UTP-ISF), has announced audited results and dividends for the three open-ended mutual funds under its management for the financial periods ended June 30, 2003 on Saturday, July 12, 2003. ABAMCO’s open-ended funds are the first among listed companies to have completed the audit within a period of less than two weeks after the close of the financial year.

Unit Trust of Pakistan (UTP)

UTP posted a net profit of Rs. 674.93 million (inclusive of unrealized gains on investment in marketable securities), which works out to Rs. 2,889 per unit. Excluding the unrealized gains, the net profit is Rs. 375.24 million, which works out to Rs. 1,606 per unit, which is 181.97% higher than last year’s figure of Rs. 133.08 million or Rs. 801 per unit.

A cash dividend of 25% has been declared, i.e. Rs. 1,250 per unit, which would dissipate 77.83% of the net profit (excluding unrealized capital gains) of the year. This is the highest cash dividend ever paid in the open-ended mutual fund sector in Pakistan. After the appropriation of cash dividend, the NAV of units of UTP works out to Rs. 7,145 as on June 30, 2003. Together with dividend and appreciation in NAV, the total return on UTP for the year ended June 30, 2003 works out to 55.55%. The average annualized return in UTP since public offering on October 27, 1997 is 24.42%.

As of June 30, 2003, the total number of units in issue was 233,649 valued at Rs. 1,669.486 million after appropriation of dividend, reflecting an increase of 86.20% in the net assets of UTP. UTP is a balanced fund with a strategy of investment in high-class securities comprising equity, debt and short term money market instruments. As on June 30, 2003, 72.59% of the net assets were invested in equity, 8.65% in TFCs & PIBs and 37.58% in COT/short term money market instruments. This strategy provides investors both regular return and long term appreciation in value of the investment.

UTP-Income Fund (UTP-IF)

UTP-Income Fund (UTP-IF) is the first of two open-ended funds launched by ABAMCO during the year under review. It was offered to public on August 26, 2002 with a par value of Rs. 500 per unit. The investment strategy focuses on capital preservation while maintaining a stable income flow. During the period under review, UTP-IF has posted profits of 36.134 million, which works out to Rs. 48 per unit for a period of ten months and five days.

A cash dividend of Rs. 47.50 per unit i.e. 9.5% has been declared at par value of the units.  The dividend yield is 11.25% on an annualized basis. Together with appreciation in value the total return on the UTP-IF comes to 13.35% on an annualized basis. This is the highest return by any income fund during the year.

The number of units in issue was 753,219 valued after the appropriation of dividend at Rs. 383.251 million as on June 30, 2003.

UTP-Islamic Fund (UTP-ISF)

UTP-Islamic Fund (UTP-ISF), the latest open-ended fund under the flagship of ABAMCO, was launched on December 26, 2002. UTP-ISF is the first and only fund in the country to be based on the principles laid down by the Shariah. The fund invests in close co-ordination with the Shariah Advisory Council that has been formed with the approval of the SECP for the purpose of guiding the fund on Shariah matters.

During the period under review, the fund has shown exemplary growth and performance. The profits, inclusive of unrealized gain on investment and marketable securities, were Rs. 70.146 million. The total return, inclusive of dividend and appreciation, has been calculated to 17.60% over the period under review, which comes to 34.72% on an annualized basis. A total of 831,113 units are in issue on June 30, 2003, valued at Rs. 455.281 million, after appropriation of dividend.

The management company has approved a cash dividend of Rs. 40 per unit which works out to 8% of the par value of the units i.e. Rs. 500. The dividend yield works out to 15.78% on an annualized basis.

Distribution of Profit

Dividend warrants or unit certificates where unit holders have chosen to reinvest will be dispatched by August 12, 2003.

The results of thirteen closed-end funds under management by ABAMCO will be announced on July 26, 2003.

The transactions in units will commence from Monday, July 14, 2003. The management company has fixed the following ex-dividend offer and redemption prices of units for the period Monday, July 14, 2003 to Thursday, July 17, 2003.

UTP

Offer: Rs. 7,656

Redemption: Rs. 7,505

UTP-Income Fund

Offer: Rs. 520.25

Redemption: Rs. 509.75

UTP-Islamic Fund

Offer: Rs. 587.75

Redemption: Rs. 576