ARIF HABIB INVESTMENT LTD.

S.KAMAL HAYDER KAZMI,
Research Analyst
, PAGE
June 29 - July 5, 2009

Arif Habib Investments Ltd. (former Arif Habib Investment Management Ltd.) is an asset management company managing both open and closed-end mutual funds. Arif Habib Investments manages about Rs. 12.614 bn in 12 mutual funds as of 31st May 2009.

Arif Habib Investments is part of the Arif Habib Group, with Arif Habib Securities Ltd (AHSL) as its main shareholder. The group is operating multifarious financial businesses, main among them are asset management, stock brokerage services, Arif Habib Bank. The group also offers services such as securities research, investment advisory, corporate finance, and project advisory services.

Habib group has acquired membership of the Dubai Multi Commodities Centre through its subsidiary Arif Habib DMCC.

PAKISTAN STOCK MARKET FUND (PSM)

PSM is an open-end equity fund investing in both growth and value stocks listed in Pakistan. The Fund seeks to achieve long-term capital appreciation primarily from growth stocks. PSM is an equity fund with investment allocation between growth and value stocks, the proportions are approximately 70/30 respectively.

PAKISTAN INTERNATIONAL ELEMENT ISLAMIC FUND (PIIF)

PIIF is an open-end equity fund, which is Shariah compliant and is able to invest in Pakistan capital markets as well as international markets. It invests only in Shariah compliant equity and debt securities.

PAKISTAN INCOME FUND (PIF)

PIF is an open-end fund, investing primarily in income producing debt securities. The Fund seeks relatively high fixed income returns. PIF invests in a range of fixed income securities including government of Pakistan bonds, corporate sector bonds (TFCs), Reverse-Repo transactions in the money market, CFS and spread transactions.

PAKISTAN CAPITAL MARKET FUND (PCM)

PCM is an open-end fund, investing in a hybrid of equity, debt and money market securities. Allocation depends on the opportunities available within different asset classes. The Fund seeks the optimum absolute return from Pakistan's capital market.

METROBANK-PAKISTAN SOVEREIGN FUND (MSF)

MSF is an open-end mutual fund, which invests only in government securities, such as PIBs of various maturities. This is the only fund in Pakistan, which provides investors an opportunity to invest in an underlying portfolio of zero default risk securities.

PAKISTAN PENSION FUND (PPF)

PPF constituted under the voluntary pension system Rules 2005 is a savings cum investment scheme with customized investment choices. The investor has a choice between various allocation schemes that PPF offers in the three sub funds i.e. Equity, Debt, and Money market.

PAKISTAN ISLAMIC PENSION FUND (PIPF)

PIPF constituted under the voluntary pension system Rules 2005 is a savings cum investment scheme with customized investment choices in shariah compliant assets. The investor has a choice between various allocation schemes that PIPF offers, each of which is invested in different proportion in the three sub funds i.e. Equity; Debt and Money market under the Islamic rules.

PAKISTAN CASH MANAGEMENT FUND (PCF)

PCF is an open-ended fund. The fund seeks to provide investors return with high level of liquidity coupled with extremely low credit and price volatility, thus enabling them to manage their surplus cash efficiently. PCF seeks to derive its returns by investing in a portfolio of government securities (primarily T-Bills) and other short-term debt instrument.

FUNDS DIVIDEND

MUTUAL FUNDS

FINANCIAL YEAR % OF FACE VALUE PAYOUT/UNIT (RS.)
PSM 2007-08 20.22 17
PIIF 2007-08 3.5 1.75
PIF 2008-09 2.6 1.3
PCM 2007-08 3 0.3
MSF 2007-08 13.7 6.85
PPF 2007-08 - -
PIPF 2007-08 - -
PCF 2008-09(May) 0.94 0.47
PIEF 2008-09(May) 1 0.5
PPFL 2007-08 15 1.5
PSAF 2007-08 7 0.7
PCPF-1 2007-08 6.6 0.66
Source: Arif Habib Inv.

PAKISTAN INCOME ENHANCEMENT FUND (PIEF)

PIEF is an open-ended fund. Objective of the fund is to provide investors an opportunity to earn a reasonable rate of return by taking exposure primarily in debt and fixed income products and seeks enhancement in return wherever possible, by taking limited exposure in Ready/Future transaction and structured products both within and outside Pakistan.

PAKISTAN PREMIER FUND LIMITED (PPFL)

PPFL is a closed-end fund, mainly investing in both value and growth stocks in Pakistan. The shares of the Fund are traded on the stock exchanges and the Fund Manager does not have the responsibility to accept investments and redemptions.

PAKISTAN STRATEGIC ALLOCATION FUND (PSAF)

PSAF is a closed-end scheme and its certificates are traded on the stock exchanges. The fund mainly invests in growth stocks with an added feature to benefit from market volatility. The fund seeks to achieve a long-term capital appreciation and current income.

PAKISTAN CAPITAL PROTECTED FUND-1 (PCPF-1)

PCPF-1 is a capital protected fund and has an objective to pay back investors their entire initial investment i.e. Rs. 10 per certificate over the term of its life in the form of dividend or return of capital on its termination.

CONCLUSION

No doubt, Arif Habib Investments is an industry leader, setting international standards and bringing innovative products to market. This is one of the fastest growing asset management companies in the country and has received the KSE's Top 25 Companies Award for the past six consecutive years.