 A mutual fund is a professionally-managed

form of collective investments that pools

money from many investors and invests it
in stocks, bonds, short-term money market
instruments, and/or other securities
Characteristics Of Mutual Fund
 short-term money market instruments
 The value of a share of the mutual fund, known as the net
asset value per share (NAV) NAV is the current market
value of a fund's holdings, less the fund's liabilities, usually
expressed as a per-share amount
 mutual fund may be used as a generic term for various
types of collective investment vehicle
 In Australia and New Zealand the term "mutual fund" is
generally not used; the name "managed fund" is used
instead.
Cont…
 Mutual funds can invest in many different kinds of securities. The
most common are cash, stock, and bonds, but there are hundreds
of sub-categories
 Stock funds, for instance, can invest primarily in the shares of a
particular industry, such as technology or utilities. These are known
as sector funds
 Bond funds can vary according to risk (e.g., high-yield junk bonds or
investment-grade corporate bonds), type of issuers (e.g.,
government agencies, corporations, or municipalities), or maturity of
the bonds (short- or long-term)
 Unlike most other types of business entities, they are not taxed on
their income as long as they distribute substantially all of it to their
shareholders
Cont…
 The public offering price, or POP, is the NAV plus a sales charge
 Open-end funds sell shares at the POP and redeem shares at the
NAV, and so process orders only after the NAV is determined
 Closed-end funds (the shares of which are traded by investors)
may trade at a higher or lower price than their NAV
 Diversification is the idea of spreading out your money across
many different types of investments. When one investment is
down another might be up. Choosing to diversify your investment
holdings reduces your risk tremendously
 The fee structure of a mutual fund can be divided into two main
components: management fee, nonmanagement expense.
Management Fees
 The management fee for the fund is
investment advisory fee charged for the
management of a fund's investments
 it is helpful to define management fee as
equal to the advisory fee + the
administrator fee
Non-management Expenses
 transfer agent expenses (this is usually the person
you get on the other end of the phone line when you
want to purchase/sell shares of a fund)
 custodian expense (the fund's assets are kept in
custody by a bank which charges a custody fee)
 legal/audit expense, fund accounting expense,
registration expense (the SEC charges a registration
fee when funds file registration statements with it)
 printing and postage expense (incurred when
printing and delivering shareholder reports).
Types of
mutual funds
 OPEN-END
 CLOSE END
 EXCHANGE TRADE FUNDS
 EQUITY FUNDS
 INDEX FUNDS
 BOND FUNDS
 FUNDS OF FUNDS
 MONEY MARKET FUNDS
Open-End
 An open-end(ed) fund is a collective investment which
can issue and redeem shares at any time. An investor can
purchase shares in such funds directly from the mutual
fund company, or through a brokerage house
 The term mutual fund is the common name for an open-
end investment company. Being open-ended means that,
at the end of every day, the fund issues new shares to
investors and buys back shares from investors wishing to
leave the fund.
 Profit or loss is shared on daily performance
 Unlimited investment (per unit)
Close End
 A closed-end fund is a collective
investment scheme with a limited number
of shares
 Close funds have a limited number of
shares; these are also called unit
investment trusts.
 Closed end funds are typically traded on
the stock exchanges
Distinguishing features
 Some characteristics that distinguish a closed-end fund
from an ordinary open-end mutual fund are that:
1. it's closed to new capital after it begins operating, and
2. its shares (typically) trade on stock exchanges rather than
being redeemed directly by the fund.
3. its shares can therefore be traded during the market day at
any time. An open-end fund can usually be traded only at
the closing price at the end of the market day.
4. a CEF usually has a premium or discount. An open-end
fund sells at its NAV (except for sales charges).
Exchange-traded funds
 ETFs combine characteristics of both
mutual funds and closed-end funds. An
ETF usually tracks a stock index. It is also
called Index Tracker Fund.
Equity funds
 Equity funds, which consist mainly of stock
investments, are the most common type of
mutual fund.
Money market funds
 Money market funds entail the least risk,
as well as lower rates of return. Unlike
certificates of deposit (CDs), money
market shares are liquid and redeemable
at any time. The interest rate quoted by
money market funds is known as the 7
Day SEC Yield.
Mutual Fund Investing vs. Stock Investing

 Diversification
 Professional Management
 Efficiency
 Ease of Use
 Liquidity
 Cost Effective
 Risk
 Mutual Fund Investing vs. Stock Investing

One Stock- No Diversification

Many Stocks (Mutual Fund)
Diversification
Mutual funds vs. other investments
 Mutual funds offer several advantages over investing in
individual stocks. For example, the transaction costs are
divided among all the mutual fund shareholders, who
also benefit by having a third party (professional fund
managers) apply their expertise, dedicate their time to
manage and research investment options. However,
despite the professional management, mutual funds are
not immune to risks. They share the same risks
associated with the investments made. If the fund
invests primarily in stocks, it is usually subject to the
same ups and downs and risks as the stock market.
Mutual Fund Companies In Pakistan
 AKD Group is a dynamic and diversified group that not only provides a wide
range financial services, but also has interests in other sectors/ segments.

Sector Key Milestones

Financial Services

AKD Securities (Pvt.) Limited
Leading brokerage house in Pakistan. Trades approximately 8 % of the
daily volume traded on the KSE.
Recipient of Certified Financial Analysts Association of Pakistan (CFAAP)
Award in 2006 for being the “Best Securities House in Pakistan”.
Pioneers in providing a platform for online trading through its subsidiary,
AKD Trade in November 2002, and now has a customer base of over
6,000 individuals.

TMT Ventures First venture capital Company in Pakistan launched in 2000.

Has linked the first cross border deal with SEAF worth US$100 million.

Real Estate

AKD Capital Creek Marina is the largest residential project in the country’s history.

Ports and Infrastructure

Gwadar Port Gawadar Port was inaugurated in March 2007

Jointly Managed by Port of Singapore Authority (PSA) and AKD.
Company Profile

 AKD Investment Management Limited is the investment

management arm of the AKD Group and the wholly owned
subsidiary of AKD Securities, one of the leading brokerage houses
in Pakistan, AKDIML was established in September 2004. In a short
span of 3 years our rating has been enhanced to AM3+ (which
denotes Good Management Quality) by JCR-VIS., and the most
trusted names in the Asset Management Industry.

 In September 2004, they have started with Rs. 200 million and since
then it has been a leader in providing innovative solutions to
growing customer needs in a dynamic market. Within a short time its
assets under management (AUM) have grown to Rs. 8.1 billion
(26.10.07), all in open-end & close end funds.
 Mission Statement
To provide investors access to investment opportunities through
introduction of innovative financial products, providing consistent
risk-adjusted performance and returns over time.

 Vision Statement
The vision of AKD Investment Management Limited is to become
Pakistan’s premier asset management company, providing
exceptional performance and service to a wide spectrum of risk
profiles.
The Business Concept
 The core business of an asset management
company is to manage “assets” and hence AKD
Investment Management Limited remains focused on
introducing products that can cater all investor risk
profiles, besides using technology to making
investments more convenient and timely.

However, our foremost priority is to provide a

complete family of funds and currently the funds
under management of AKDIML are all essentially
equity funds and hence in order to fulfill our objective
Investment Choices Today Your goal is to seek “inflation adjusted” annual returns that helps your
capital to grow while it is being preserved and you have taken a calculated risk, investing at regular intervals.
You as an Investor are left with the following asset classes for investing your wealth:

Bank Although bank deposits are liquid, their downside is a rate of return of
Deposits 6~10% per annum (approx) that's almost equal to inflation.
The fixed income returns range from 9~11%, slightly beating inflation
Fixed Income
and providing a low risk alternative to bank deposits. Through
Instruments
sometimes the tenure is long and the liquidity isn't there.
Direct investment in Real state is an unregulated and a very illiquid
Real Estate investment avenue. Regulated real estate investment trusts are still
awaiting regulatory approval and are not available in Pakistan.
Pakistan's capital market has matured significantly over the last decade
Capital Market has returned 51% plus per annum over the last five
Equities
years, 35% in 10 years, 16% in 25 years, the daily traded volume is
averaged over $270 million.
AKD Investment Ideology

Equities
Our core investment decisions are based on strong fundamentals and extensive research,
the investment in our equity portfolios is built on the following key methodology:
 Sector wise Comparison
 Global Comparison
 Corporate Earnings growth potential
 Price to earning ratio
 Dividend yields

Fixed Income
AKDIML is proud to have a high level of competence on investing in all asset classes,
including equity and debt securities, our philosophy of investing in fixed income
securities is based on
 High yield
 Keeping quality
 Preservation of capital
AKD Valued Investors
Key Numbers
.
Benefits of using AKDIML Advisory Services
What to expect from AKD Investment Advisors

 Understanding your needs

 Develop the right Investment Strategy
 Monitoring your Investments
 Training and Development of Human
Resource
 Technology
AKD Management

Chief Operating Officer

Mr. Imran Motiwala
Chief Financial Officer / Company Secretary
Mr. Amin Hussain Head of Investment
Mr. Abdullah Amin
Fund Manager
Mr. Ali Alvi
Head of Marketing
Miss Naveen Dar
Head of Sales
Mrs. Khan
AKD Products
AKD Index Tracker Fund, to track the returns of the KSE-100 index up
to 96% accuracy, providing investors with a high quality, in-depth diversification
instrument.

Fund Manager Mr. Ali Alvi

Face Value Rs. 10

Type of Fund Open end

Benchmark KSE 100

Date of Launching October 20, 2005

Fund Size Rs. 835 Millions (26.10.07)

AKDITF
Total Units 75,000,000 @ PkR 10 each

Assets Under Management PkR 1.06 bn

Net Asset Value (29th June 2007)

Pkr.14.09
KSE symbol AKDITF

Management Fee 0.75%

Following chart provides the weightages of stocks in the KSE100 Index as on 13th Jun 2007:
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 Manager Mr. Faisal Bengali &

Mr. Imran Motiwala
Face Value Rs. 50

Type of Fund Open end

Benchmark 6 Month KIBOR

Date of Launching March 22, 2007

Fund Size Rs. 4.545 Billions

AKDIF
Total Units 47.338 mln Units

Assets under Management PkR 2,388 mil

Net Asset Value (30th June 07)

PkR 51.7641

KSE symbol AKDIF

Management Fee 1.50%

AKDIF
•The objective of the AKD Income Fund shall be 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
•The AKD Income Fund is in essence a dedicated fund that will
focus on primarily one asset class that is fixed income securities
and instruments
•fixed income security's principal and return is guaranteed or
predetermined. Therefore, the risk profile of a fixed income fund
compared to an equity fund is considerably less.
Investment Avenues

Average rate of
return from Bonds,
Debentures, Debenture stock,
Term Certificates, Musharika
Certificates, Term Finance Stock Market Fund Balanced Portfolio
Investment Avenues Bank Deposit (Rs.) Income Fund (Rs.)
Certificates, Convertible Bonds, (Rs.) (Rs.) (Ratio is 70:30)
Mortgage Backed Securities,
GDR’s, ADR’s, PIB’s, Federal
Investment Bonds, T-Bill’s,
Sukuk Bonds, Eurobonds,
Soverign Bonds, Certificates of
Musharika, TDR’s, TFC’s COI’s,
CFS, etc

Invested Amount 100,000 100,000 100,000 100,000 70,000 30,000

8% (Less 10% 11% (Less 10%

Rate of Return Withholding Tax) Withholding Tax) 16% 11% 11% 16%

1st Year 107,200 109,900 116,000 111,000 112,500

5th Year 141,570 160,320 210,034 168,505 180,203

10th Year 200,423 257,025 441,143 283,942 324,732.

15th Year 283,740 412,064 926,552 478,458 585,177

20th Year 401,694 660,623 1,946,075 806,231 1,054,509

25th Year 568,682 1,059,113 4,087,424 1,358,546 1,900,260

Golden Arrow Selected Stock Fund disciplined and balanced fund
management strategy focusing on fundamentally strong companies offering deep-
value, coupled with few cherry-picked growth companies.

Fund Manager Mr. Faisal Bengali

Face Value Rs. 5

Type of Fund Close end

Benchmark KSE 100

Date of Launching May 9, 1983

Fund Size Rs. 1,302 Billion (26.10.07)

AKDGASF
 Total Units 122,907,752 Units @ PkR 5 each
 Net Asset Value (31st July ‘07) Pkr.10.74
 KSE symbol GASF
 Management Fee 2%
AKD Opportunity Fund filters through the opportunity presented in the capital
markets, searching for the optimal combination of investment strategies, mainly in
equities, followed by fixed income and money markets as contingent defensive
strategy.

Fund Manager Mr. Faisal Bengali

Face Value Rs. 50

Type of Fund Open end

Benchmark KSE 100

Date of Launching March 31, 2006

Fund Size Rs. 1.417 Billion

AKDOF
Total Units: 16,567,941 Units

Assets under Management PkR 972 mil

Net Asset Value (31st July 07) Pkr 58.65

KSE symbol AKDOF

Management Fee 3%
Earning Mechanism
 CAPITAL GAINS
 Realized through encashment of units with appreciation in NAV

 BONUS UNITS
 The Fund declares Dividend at Year-end in the form of Bonus
Units
 These Bonus Units are Credited to the Unit holder’s Outstanding
Units, which may be encashed at will

All Funds are Exempt from Withholding & Corporate Tax

 Investment Processes
 On-Shore Investment
Investor Account Opening Form

Required Documents

Individuals 1. National Identity Card (NIC) Copy of Principal and Joint

Holders

2. Copy of Passport for Foreign Nationals

Institutional/Corp 1. NIC Copies of Authorized Signatories
orate
2. List of Directors and Officers

3. List of Directors and Officers

4. Copy of Certificate of Incorporation/Registration

5. Copy of Certificate of Commencement of Business

6. Certified Copy of Board Resolution

7. Membership Certificate (in case of Sole Proprietorship)

8. Partnership Deed and Certificate of Registration (in case of

registered partnership firm)

9. Power of Attorney (Notarized and on Stamp paper)

10. Copy of Memorandum & Articles of Association/ Bye Laws/ Trust

Deed
Procedure for Off-shore Investments

 AKD now very excited about being able to

market its products globally
Our Forms
 Investor Account Opening form

 Purchase of Units form

 Redemption of Units form

 Service Request form

 Pledge of Units form

Institutional Investor Required
 Name of the Institution / Corporate
 Address / Contact number's) of the investor
 Registration number of the investor
(Company / Corporation / Bank / Partnership / Sole Proprietor /
Club etc.)
 Declaration of whether or not Zakat is to be deducted is required.
If the option is selected as ‘NO’, the Zakat Declaration CZ-50
under Zakat and Ushr Ordinance, 1980, needs to be attached.
 Type of Institution (Company / Corporation / Bank / Partnership /
Sole Proprietor / Club, etc.,)
 Details of Authorized Signatories including their name's, their
identification i.e., National Identity Card number and their
specimen signatures. Copy of Memorandum & Article of
Association / Incorporation.
 Our Branch Network
Our Network  Karachi
Head Office
214, Continental Trade Centre,
Block 8, Clifton

 Lahore
Shop No. 7,
Al Latif Centre
Gulberg III

 Islamabad
2nd Floor, Razia Sharif Plaza
Fazl-e-Haq Road
Blue Area

www.akdinvestment.co
m
111 – 253 - 465
Distribution Network
Thank You

AKD Investment Management Limited

216, 2nd floor, Continental Trade Centre,
Block 8, Clifton, Karachi.
UAN: 111 253 465
PABX: (021) 537-1305~07, Ext. 240
Cell: (0300) 218-5500
Fax: (021) 530-3125
Website: www.akdinvestment.com