Professional Documents
Culture Documents
Mutual Funds Association of Pakistan (MUFAP) is the trade body for Pakistan’s multi billion
rupees asset management industry. The money our members manage is in a wide variety of
investment vehicles including stocks, bonds, money market instruments, government
securities and bank deposits. Our role is to ensure transparency, high ethical conduct and
growth of the mutual fund industry. MUFAP was formed in 1996 by Mr. Zaigham Mahmood
Rizvi, ex-Chairman and founder member, and was formally licensed in 2001 as a public
limited company (by guarantee) under Section 42 of the Companies Ordinance, 1984 by
Ministry of Commerce (MOC) and is thus a quasi legal entity. After the establishment of
MUFAP in 1996, private and foreign firms were allowed to float open-ended funds for the
general public. This time also saw the stock market’s performance scale new heights as a
result of positive government policies and incentives, registering a growth of more than 15
times in the net assets of the mutual funds between 2000-2008. Mutual Funds were initially
overseen by the Corporate Law Authority (“CLA”) under its Securities Wing. The CLA, then
a division of the Ministry of Finance, was gradually transformed and made independent as the
Securities and Exchange Commission of Pakistan (“SECP”) as part of the Capital Market
Development Program (CMDP) initiative of the Asian Development Bank undertaken for
Pakistan. The CMDP envisaged formation of four types of Self-Regulated Organizations
(“SROs”) to function under the SECP:
Explain: (POALLF)
Introduction
Pak Oman Advantage Fund Islamic Income (POAIIF) is an open-end fund. The objective of
POAIIF is to maximize medium to long-term return. This will be achieved by investing in a
diversified portfolio of Shariah compliant instruments (such as Sukuks) certificates of Islamic
investment, spread transactions as per Shariah board approval, and other Shariah complaint
income instruments including Shariah compliant securities available outside Pakistan. All
investments of the fund will be as per the guidelines of the Shariah advisor and Shariah
technical support of the fund. This philosophy will also mitigate the risk for investors.
Fund Investment Objective
The investment objective is to provide a stable stream of income with a moderate level of risk
by primarily investing in fixed income securities and offering prospects of income and capital
growth
Type of Fund
PakOman Advantage Stock Fund is an open-end scheme constituted under Non Banking
Finance Companies (Established and Regulation) Rule, 2003.
The Fund invests primarily into high quality debt instruments constituting corporate bonds,
bank deposits, Continuous Funding System (CFS) and other available fixed income
alternatives. Benchmark for investment is 3 months KIBOR +1% and the fund is managed by
Pak Oman Asset Management Company Ltd.
Close End Funds:
Explain (Poasf)
Introduction
Is a closed end fund, established through a Trust Deed between Pak Oman Asset Management
Limited, the Management Company and Central Depository Company of Pakistan Limited.
POAF has been developed with the objective of investing in high quality debt instruments of
commercial banks. POAF will have a limited life of 8 years, after which the fund will be
wound down and investors will be paid back
Fund Investment Objective
To provide low risk adjusted returns to the investor by minimizing credit and price risks in a
fixed income portfolio.
Type of Fund
Pak Oman Advantage Fund (POAF) is a Closed End Fund with the objective to invest in high
quality debt instruments of commercial banks. upto 75% of fund will be invested in listed and
rated Tier II TFC issues of commercial banks. As only free floating instruments will be
accepted, both credit risk as well as price risk will be minimized.The remaining will be
invested in listed and rated TFCs (non bank) rated A or higher, placements with banks and
other financial institutions which have a minimum entity rating of "A", money market
instruments including repurchase transactions where the underlying securities are of
acceptable risk (Government or high credit rated corporate bonds), spread transactions and
Continuous Funding System.
Name of the Members of Investment Committee:
Ms, Hina Ghaznafar, CEO
Mr, Shoaib Ali Khan, Equity fund Manager
Mr, Nabeel Malik, Fixed Income Manager