arif habib

MCB-ARIF HABIB SAVINGS AND INVESTMENTS

LIMITED (FORMERLY: ARIF HABIB

INVESTMENTS LTD.)

AFTAB AHMED DARCOMSATS Institute of Information Technology Abbottabad.

Table of Contents

• Company Profile• Group Profile• Vision• Mission• Mutual Funds

Company Profile

• MCB-Arif Habib Savings and Investments Limited is an Asset Management, Investment Advisory and Pension Fund Management Company• Managing Open-end Mutual Fund and Pension Funds. • The Company is registered with the Securities & Exchange Commission of

Pakistan (SECP) and regulated under the Non-Banking Finance Companies (NBFC) Rules 2003• NBFC and Notified Entities Regulations 2008 and Voluntary Pension System

Rules 2005.• MCBAH is a member of the Mutual Funds Association of Pakistan (MUFAP).

Company Profile

• MCB-Arif Habib Savings and Investments Limited manages over Rs. 51.17 billion, as on September 30th 2014. • It has 14 Mutual Funds,2 Voluntary Pension schemes and different

Investments Plans in its product portfolio to meet the investment needs of its growing customers.• The Company was conceived in the year 2000 and, in March 2002,

two of its flagship Funds, the Pakistan Stock Market Fund (PSM) and the Pakistan Income Fund (PIF) were launched.

Group Profile

MCB Bank Limited:•MCB is one of the oldest banks of Pakistan, incorporated in 1947. It was privatized in 1991. •To agree to international capital markets, the Bank launched Global Depositary Receipts (GDRs) in 2006. •It was the first Pakistani Bank that got its GDRs listed on the London Stock Exchange•. In 2008, the Bank entered into a strategic partnership with Maybank, Malaysia, which owns 20% stake in it through Mayban International Trust (Labuan) Berhad.

Group ProfileArif Habib Corporation:• Arif Habib Corporation Limited (AHCL) is the holding company of one of the major business groups

of Pakistan. • The Company has a diversified portfolio across sectors including Chemical and Fertilizers, Financial

Services, Construction Materials, Industrial Metals and others.• AHCL aims to seek opportunities globally as well and currently has invested in an equity brokerage

house in Srilanka and has acquired membership of a multi commodity exchange in the UAE. • The company was incorporated on 14 November 1994 as a public limited company under the

Companies Ordinance, 1984 with a paid up capital of Rs. 40 million.• The Company was listed in 2001 on all three bourses of the Country by offering one million shares to

the general public at a price of Rs. 80 per share (being the Book Value at that time) raising Rs. 80 millions

Vision and Mission:

Vision:•To become synonymous with SavingsMission:•To become a preferred Savings and Investment Manager in the domestic and regional markets, while maximizing stakeholders’ value

Definitions:• KIBOR:It is Karachi Inter Bank Offer Rate (KIBOR), given by specialized institution on daily, weekly, monthly and on 1, 2 and 3 yearly basis to all the commercial banks of Pakistan so that they charge interest to their customers on that basis. This rate is inflation adjusted rate and then banks by adding 2 or 3% in KIBOR rate charge their customers for their profit.• Term Finance Certificate: (TFC)A debt instrument issued by a corporation to raise funds. TFCs typically offer higher rates of return than bank deposits and government bonds. Unlike bonds, TFCs offer investors the option to redeem a portion of the principal during the term of the instrument.• Net Asset Value: (NAV)A mutual fund's price per share or exchange-traded fund's (ETF) per-share value. In both cases, the per-share dollar amount of the fund is calculated by dividing the total value of all the securities in its portfolio, less any liabilities, by the number of fund shares outstanding.

INCOME FUNDS

Pak Income Fund:Investment Objective• The objective of the fund is to deliver returns primarily from debt and fixed income

investments without taking excessive risk. Fund Profile• Pakistan Income Fund (PIF) is an open end fund, which invests in corporate securities,

Government securities; money market placements, TDRs and short maturity reverse repurchase transactions. PIF is a long only fund and cannot undertake leveraged investments. Under the Regulation number 58(1)(k) of NBFC and NE regulations 2008, it is only allowed to borrow up to 15% of net assets for up to 90 days to meet redemption needs.

Benchmark• 75% KIBOR (6 Month) + 25% PKRV (3 Months)

Pak Income Fund

Date of Inception

11th March 2002

Fund Type Open End Income

Minimum investment

PIF - PKR 5,000/- PIF-CD - PKR 10,000,000/-

Initial Public Offer

PKR 50.00

Fee Schedule

Front End Load: Investments less than or equal

to Rs.15 million: 2%* Investments greater than

Rs.15 million: NIL*plus applicable taxes

Management fee: 1.50% per annum of average NAV

Term finance certificate

INCOME FUNDS

• MCB Dynamic Cash Fund:Investment Objective• To provide an attractive return to short term investors or investors with a very low

desire for risk while taking into account capital security and liquidity considerations. Fund Profile• MCB-DCF through active management will aim to provide optimum returns for its

unit holders by investing primarily in Money Market and short term instruments.• The fund may also invest a small portion of the fund in medium to long term assets in

order to provide higher returns to the unit holders. Benchmark:• 1 Month KIBOR.

MCB Dynamic Cash Fund

Date of Inception 1st March 2007

Fund Type

Open-end Income Scheme (SECP categorization in process)

Minimuminvestment

Growth Units Rs.5,000Cash Dividend Units Rs.5,000 Income Units Rs. 100,000

Fee Schedule

Front End Load: Investments less than or equal to Rs.15 million:

1.5%* Investments greater

than Rs.15 million: NIL*plus applicable taxes

Management fee: 1.50% per annum of average

NAV

INCOME FUNDS

• MetroBank-Sovereign Fund:Investment Objective• The objective of the fund is to deliver income primarily from investment in government

securities.Fund Profile• Metro-Bank Pakistan Sovereign Fund Perpetual (MSF) is an open end fund, which invests

in bonds and debt securities issued by the Government of Pakistan as well as Reverse Repurchase transactions (Reverse-REPOs) against government securities. Under the Regulation number 58(1)(k) of NBFC and NE regulations 2008, it is only allowed to borrow up to 15% of net assets for up to 90 days to meet redemption needs.

Benchmark• 6 month T–Bill rate

INCOME FUNDS

Date of Inception

1st March 2003

Fund Type Income Scheme

Minimum investment 100 units


PKR 50.00

Fee Schedule

Front End Load: Investments less than or equal

to Rs.15 million: 1.5%* Investments greater than Rs.15

million: NIL*plus applicable taxes

Management Fee is lower of the following:

a) 10% of Fund’s Operating Revenue

b) 1.5% of Average Daily Net Assets

Subject to a minimum fee of 0.5% of Average Daily Net

Assets

AGGRESSIVE INCOME FUND• Pak Income Enhancement Fund:Investment Objective• The objective of the fund is to deliver return from aggressive investment strategy in

debt and fixed income market. Fund Profile• Pakistan Income Enhancement Fund (An Aggressive Fixed Income Fund) (referred

to as PIEF) is an open end fund which primarily invests in debt and fixed income instruments and may also take limited exposure in structured products. The maximum duration of the fund shall not exceed 3 years.

Benchmark• 90% KIBOR(1 YEAR) + 10% PKRV (3 Months)

Pak Income Enhancement Fund

Date of Inception 28th August 2008

Fund Type

Open End Aggressive Fixed Income Scheme

Minimuminvestment

Type A : 5,000

Type B : 10,000,000

Fund Manager Saad Ahmed

Rating by PACRA A + (f)


PKR 50.00

Fee Schedule

Front End Load: Investments less than or

equal to Rs.15 million: 2%*

Investments greater than Rs.15 million: NIL

*plus applicable taxes

Management fee: 1.5 %

ISLAMIC INCOME FUND• MCB Islamic Income Fund Investment Objective• To generate superior risk adjusted returns by investing in short, medium and long-term Shariah

Compliant Fixed income instruments. Fund Profile• The Fund shall seek to provide the investors with a rate of return consistent with a broadly

diversified portfolio of long, medium, and short term, high quality Shariah Compliant fixed income instruments.

• The funds shall only be invested in Shariah compliant avenues with minimum credit rating of A+ (A Plus)

Benchmark• Average of the most recent published three- month profit rates of three Islamic Banks rated A and

above.

MCB Islamic Income Fund Date of Inception 20th June 2011

Fund Type Open-end (Islamic) Income Scheme

Minimuminvestment

Growth Units Rs. 500Income Units Rs. 100,000Cash Dividend Units Rs. 50

Front End Load (Type A) : Investments less than or equal to Rs.15 million: 1.5%* Investments greater than Rs.15 million: NIL*plus applicable taxes Class “B” 0%

Management fee: 10% of gross earnings subject to minimum fee of 0.25% of daily Net Assets -End Loads: Class A Units :0%Class B Units: - 1.5% on redemption in the 1st year from the date of investment- 1% on redemption in the 2nd year from the date of investment- 0% on redemption after completion of 2nd year from the date of investment

EQUITY FUNDS• Pak Stock Market FundInvestment Objective• The objective of the fund is to provide investors long term capital appreciation from its investment in

Pakistani equities.

Fund Profile• Pakistan Stock Market Fund (PSM) is an open end equity fund that invests in quality stocks listed in Pakistan.• The fund is actively managed and fundamental research drives the investment process. Fundamental outlook

of sectors/companies and DCF (discounted cash flow) valuations are the primary factors in sectors’ allocation and stock selection. Major portion of the fund’s portfolio is high quality liquid stocks. The funds which are not invested in equities are required to be kept in bank deposits and short-term money market instruments/ placements. PSM is a long only fund and cannot undertake leveraged investments. Under the Regulation number 58(1)(k) of NBFC and NE regulations 2008, it is only allowed to borrow up to 15% of net assets for up to 90 days to meet redemption needs.

Benchmark• KSE-100 Index.

Pak Stock Market Fund

Date of Inception

11th March 2002

Fund Type Open-end Equity

Minimuminvestment

PSM - PKR 5,000/- PSM-CD PKR 10,000,000/-


PKR 50.00

Front End Load: Investments less than or equal to Rs.15 million: 2%* Investments greater than Rs.15 million: NIL*plus applicable taxes


EQUITY FUNDS• Pak Strategic Allocation FundInvestment Objective• The objective of the fund is to provide investors capital growth over medium to long term primarily

from investment in more liquid Pakistani equities. Fund Profile• Pakistan Strategic Allocation Fund (PSAF) is an open end strategic allocation fund which primarily

invests in equities based on a quantitative model. The Fund takes advantage of equity market volatility and buys equities when they are underpriced and sells equities when they are overpriced. DCF (discounted cash flow) valuations are pivotal for stocks selection in the portfolio. The fund is mostly invested in liquid stocks. Under the Regulation number 58(1)(k) of NBFC and NE regulations 2008, it is only allowed to borrow up to 15% of net assets for up to 90 days to meet redemption needs.

Benchmark• KSE-100 Index.

Pak Strategic Allocation Fund

Date of Inception

11th September 2004

Fund Type Open-end Equity

Initial Public Offer PKR 10.00

Front End Load: Investments less than or

equal to Rs.15 million: 2%* Investments greater than

Rs.15 million: NIL*plus applicable taxes

Management fee: 2% per annum

ISLAMIC ASSET ALLOCATION FUND• Pakistan International Element Islamic Asset Allocation Fund:Investment Objective• The objective of the fund is to provide medium to long term capital appreciation through

investing in Shariah compliant investments in Pakistan and internationally. Fund Profile• PIEIF is an Islamic open-end asset allocation fund, which seeks to achieve its objective

through investing in a portfolio of Shariah compliant investments diversified across the capital markets of Pakistan as well as keeping a limited exposure internationally. The fund is managed through an active management strategy with dynamic allocations towards different asset classes.

Benchmark• 70% KMI 30 Index, 30% DJIM-World

Pakistan International Element Islamic Asset Allocation Fund

Date of Inception

2nd May 2006

Fund Type

Open End Sharia Compliant Asset Allocation

Minimuminvestment

A&B - PKR 5,000/- C&D - PKR 10,000,000


PKR 50.00

Front End Load (Type A): Investments less than or

equal to Rs.15 million: 2%*

Investments greater than Rs.15 million: NIL

*plus applicable taxes

Type B,C & D: None

Management FeeType A & B: 2% Type C & D:

1.33%

ASSET ALLOCATION FUND• MCB Dynamic Allocation Fund: Investment Objective• MCB Dynamic Allocation Fund is an asset allocation fund and its objective is to

aim at providing a high absolute return by investing in equity and debt markets. Fund Profile• MCB DAF shifts exposures in to debt or equity as per market conditions and

discretion of the Management Company. The fund may invest up to 100% in equity securities or up to 100% in debt securities according to market conditions.

Benchmark• Proposed.

MCB Dynamic Allocation Fund:Date of Inception17th March 2008

Fund Type

Open-end Asset Allocation Scheme(SECP categorization in process)

Minimuminvestment Rs. 5,000


Management fee: 2% per annum of average NAV

MONEY MARKET FUNDS• MCB Cash Management Optimizer Fund Investment Objective• To provide unit-holders competitive returns from a low risk portfolio of short duration assets while

maintaining high liquidity. Fund Profile• MCB CMOP is purely a money market fund which shall make investments in money market

instruments with a maximum maturity of 180 days and weighted average maturity up to 90 days. Based on market conditions the Management Company will invest a major portion in highly liquid and low risk instruments. The remaining fund will be invested in short term deposits and assets to generate better returns. The main areas of investment would be Treasury Bills, Cash and Near-Cash Instruments, Money market placements, Certificate of Deposits (COD's), Certificate of Musharika (COM's), Term Deposits (TDR's), Commercial Papers etc.

Benchmark• Avg. three month deposit rates of AA and above rated scheduled banks, net of expenses.

MCB Cash Management Optimizer Fund Date of Inception1st October 2009

Fund TypeOpen-end Money Market Scheme

Minimuminvestment

Growth Units Rs. 5000Cash Dividend Units Rs. 5,000Income Units Rs. 100,000

Fee Schedule

Management fee: 10% of all gross earnings subject to minimum fee of 0.25% of average daily net assets.

Front-end load: Nil Up to 0% Overall annual

expense ratio for the composite

MONEY MARKET FUNDS• Pak Cash Management FundInvestment Objective• The Fund aims to deliver regular income and provide high level of liquidity primarily from short

duration government securities investments.Fund Profile• Pakistan Cash Management Fund (PCF) is an open end Fund, which invests in government

securities, mainly Treasury Bills and short maturity reverse repurchase transactions against Government Securities. The un-invested funds are kept in deposits with minimum AA-rated commercial banks. The overall maturity of the portfolio is kept below 90 days, in order to keep interest rate risk at a relatively low and manageable level and provide high liquidity to investors comparable to current bank deposits. PCF is a long only Fund.

Benchmark• 3 month T-Bill.

Pak Cash Management FundDate of Inception20th March 2008

Fund Type Open End Money Market

Minimuminvestment

A - PKR 5,000/- B - PKR 10,000,000/-

Fund Manager Syed Sheeraz AliRating by PACRA AAA (f)


Fee Schedule

Management fee: 10% of Gross Earnings subject to a minimum of 0.25% of Avg.

Daily Net Assets

Front-end load: Nil

-end load: 0.1% if redeemed within 3 days

and if converted within 30 days.

BALANCED FUND

• Pak Capital Market FundInvestment Objective• The objective of the Fund is to provide investors a mix of income and capital

growth over medium to long term from equity and debt investments. Fund Profile• Pakistan Capital Market Fund (A Balanced Fund) (referred to as PCM) is an

open end balanced fund that invests in a range of asset classes such as equity and debt in Pakistani market.

Benchmark• 50% KSE-100, 50% 1 year T-Bill

Pak Capital Market Fund

Date of Inception

24th January 2004

Fund Type Open End Balanced

Minimum investment

PCM - PKR 5,000/- PCM-CD -PKR 10,000,000/-




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