PICIC ASSET MANAGEMENT COMPANY LTD
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Aug 09 - 15, 2004
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The Board of Directors of PICIC Asset Management Company Ltd at its 3rd meeting held on 26th July, 2004 at Karachi, approved accounts of PICIC Investment Fund (formerly ICP Mutual Fund Lot 'B' comprising of 13 funds viz: 2nd, 5th, 6th, 7th, 9th, 10th, 13th, 14th, 16th, 17th, 18th, 22nd and 24th) and PICIC Growth Fund-PGF (formerly ICP State Enterprises Mutual Fund-SEMF) for the year ended on 30th June, 2004.

By the Grace of Allah, PICIC Asset Management Company Ltd. the Investment Adviser of PICIC Investment Fund and PICIC Growth Fund (PGF) declared final dividend for PICIC Investment Fund (PIF) of 25% (i.e. Rs.2.5/- per certificate) together with the interim cash dividend of 10% (i.e. Re.1/- per certificate) the total dividend for the year ended June 30, 2004 amounts to 35% (i.e. Rs.3.5/- per certificate). For PICIC Growth Fund (PGF) the Board declared final dividend of 35% (i.e. Rs.3.5/- per certificate) together with the interim cash dividend of 10% (i.e. Re.1/- per certificate) the total dividend for the year ended June 30, 2004 amounts to 45% (i.e. Rs.4.5/- per certificate).

The total turnover and portfolio of PICIC Investment Fund (PIF) and PICIC Growth Fund (PGF) amounted to Rs.31000 million. Realized capital gains for PICIC Investment Fund (PIF) and PICIC Growth Fund (PGF) amounted to Rs.1600 million during the year ended June 30, 2004.

PERFORMANCE OF PICIC INVESTMENT FUND (PIF)

During the period under review total income excluding unrealized capital gains, increased to Rs.1171 million as compared to Rs.362 million in the corresponding period of last year reflecting a growth of 223%. This growth was mainly attributed to better market performance, active fund management, portfolio restructuring and equity enhancement by way of right issue. The dividend income for FY-2004 stood at Rs.255 million as compared to Rs.175 million in the corresponding period of last year reflecting a growth of 46% which depicts the fact that the funds raised through right issue were deployed in dividend yielding stocks and the average corporate earnings growth remained at 12% over the last year. Realized capital gains during FY-2004 stood at Rs.908 million as compared to Rs.179 million in the corresponding period of last year reflecting a phenomenal growth of 408%.

PERFORMANCE OF PICIC GROWTH FUND (PGF)

During the period under review total income excluding unrealized capital gains, increased to Rs.1047 million as compared to Rs.511 million in the corresponding period of last year reflecting a growth of 105%. This growth was mainly attributed to better market performance, active fund management, portfolio restructuring and equity enhancement by way of right issue. The dividend income for FY-2004 stood at Rs.359 million as compared to Rs.303 million in the corresponding period of last year reflecting a growth of 18.5% which reflects the fact that funds raised through right issue were deployed in dividend yielding stocks and the average corporate earnings growth remained at 12% over the last year. Realized capital gains during FY-2004 stood at Rs.684 million as compared to Rs.197 million in the corresponding period of last year reflecting a phenomenal growth of 247%.

NET ASSET VALUE

PICIC INVESTMENT FUND (PIF)

As on October 24, 2002 when PICIC acquired the management rights of ICP Mutual Funds Lot 'B' now PICIC Investment Fund the Net Asset Value of these funds was Rs.1.55 billion which has risen to Rs.5.67 billion as on June 30, 2004, which also includes the right issue wherein we fully capitalized upon the recent market upsurge. Moreover, an amount of Rs.286 million was distributed as cash dividend (Effective 24%) to the certificate holders.

 

 

PICIC GROWTH FUND

As on March 22, 2003 when PICIC acquired the management rights of ICP SEMF now PICIC Growth Fund (PGF) the Net Asset Value of these funds was Rs.3.72 billion which has risen to Rs.6.79 billion as on June 30, 2004, which also includes right issue wherein we fully capitalized upon the recent market upsurge. Moreover, an amount of Rs.420 million was distributed as cash dividend (Effective 45%) to the certificate holders.

MERGER OF ICP MUTUAL FUND LOT 'B' INTO PICIC INVESTMENT FUND (PIF)

Pursuant to the provisions of the Management Rights Transfer Agreement dated December 13, 2002 ("MRTA") amongst the Privatization Commission, Investment Corporation of Pakistan ("ICP") and Pakistan Industrial Credit and Investment Corporation Limited ("PICIC"), PICIC acquired the right to manage the affairs of the merging ICP Mutual Funds and it was agreed that the merging ICP Mutual Funds would be reorganized (inter alia by way of merger), with a view to ensure governance of the merging ICP Mutual Funds by the provisions of Non Banking Finance Companies (Establishment and Regulation) Rules 2003.

Thereafter the Scheme of Arrangement for Merger and Amalgamation of ICP Mutual Fund Lot 'B' comprising of thirteen funds viz: 2nd, 5th, 6th, 7th, 9th, 10th, 13th, 14th, 16th, 17th, 18th, 22nd, & 24th ICP Mutual Fund into a new closed end Scheme i.e. PICIC Investment Fund (PIF) was approved by the certificate holders in thirteen separate extraordinary general meetings held on March 31, 2004.

CHANGE OF NAME OF ICP-SEMF TO PICIC GROWTH FUND (PGF)

PICIC Asset Management Company Ltd. has successfully reorganized ICP State Enterprises Mutual Fund (SEMF) to PICIC Growth Fund (PGF) and the certificates were actively traded on the Karachi Stock Exchange on 23rd July, 2004 by the name of PICIC Growth Fund (PGF). The change of name would further add synergies to the fund.

CHANGE OF MANAGEMENT

The management rights of the newly merged PICIC Investment Fund (PIF) and ICP State Enterprises Mutual Fund (SEMF) now PICIC Growth Fund were transferred to PICIC Asset Management Company Limited on June 28, 2004.

PICIC ASSET MANAGEMENT COMPANY

PICIC decided to form a specialized company under the provisions of NBFC Rules 2003 to undertake asset management and investment advisory services. The move was a part of the coherent strategy to dedicate focused resources for the development and evolution of these expertises in an institutionalized manner to strengthen its future endeavors.

With an authorized capital of Rs.5000 million and paid-up capital of Rs.3000 million, PICIC Asset Management Company Ltd. is one of the largest Asset Management Company of Pakistan which is a wholly-owned subsidiary of Pakistan Industrial Credit & Investment Corporation Ltd. (PICIC).

PICIC AMC has started with a vision to provide a diverse set of investment products according to the investment and risk appetite of all the investor segments, establishing it as the largest fund manager in Pakistan. Its immediate future plans include launching a closed end fund by the second quarter of current fiscal and bringing on its platform an open end fund by June 2005.

The Company is being headed by a team of dedicated professionals who have excelled in their respective careers and offers a unique mix of experience and young potential so that a collective and focused effort can be made towards realization of our vision.