Mutual Funds Portfolio/Fund Manager Net Asset Value Types of Mutual Funds By Structure By Investment Objective Sources of Profit generation Mutual Funds industry in Pakistan Rules Govern Mutual Funds in Pakistan Mutual Funds Companies in Pakistan NBP Fullerton Asset Management Limited Sponsors Funds name NAFA Money Market Fund

1. Topic: Mutual Funds
RIZWAN AHMAD
CMA-Stage 4
e-mail : rizwan_207@yahoo.com
Institute of Cost and Management Accountants of Pakistan
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2. Outline of Presentation
 Mutual Funds
Portfolio/Fund Manager
 Net Asset Value
 Types of Mutual Funds
By Structure
By Investment Objective
 Sources of Profit generation
 Mutual Funds industry in Pakistan
 Rules Govern Mutual Funds in Pakistan
 Mutual Funds Companies in Pakistan
 NBP Fullerton Asset Management Limited
Sponsors
Funds name
NAFA Money Market Fund
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3. Mutual Funds……….?
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4. What is a Mutual Fund ?
 It is a trust that pools the savings of a number
of investors who share a common financial goal
 Professional fund managers then invest
these funds in a way that helps investors
achieve their goal
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5. A mutual fund is managed by a management company (Asset Management
Company)
The management company is a bank of human resources, considered to be
professionally qualified personnel
The portfolio of mutual fund is managed by a "Portfolio Manager", whose
responsibility is to be invested in, and satisfies the desire of the investors
Every day, the fund manager/ portfolio manager counts up the value of all fund's
holding, figures out how many shares have been purchased by shareholders, and
then calculates the Net Asset Value (NAV) of the mutual fund, the price of a single
share of the fund on that day.
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6. Mutual Funds
INVESTORS
Pool their
Passed back to money with
RETURNS FUND
MANAGERS
Invest in
Generate
SECURITIES
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7. NAV (Net Asset Value)
A fund's NAV fluctuates along with the value of its
underlying investments. The formula for NAV is:
NAV = (Market Value of All Securities Held by Fund
+ Cash and Equivalent Holdings - Fund Liabilities) /
Total Fund Shares Outstanding
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8. Example
 Let's assume at the close of trading yesterday that a
particular mutual fund held $10,500,000 worth of
securities, $2,000,000 of cash, and $500,000 of liabilities.
If the fund had 1,000,000 shares outstanding, then
yesterday's NAV would be:
NAV = ($10,500,000 + $2,000,000 - $500,000) / 1,000,000
= $12.00
 A fund's NAV will change daily as the value of a fund's
securities, cash held, liabilities, and the number of shares
outstanding fluctuates
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9. Types of Mutual Funds
By structure, there are two types of mutual
funds, which are:
 Open-end mutual funds
 Closed-end mutual funds
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10. Open-Ended Funds
Unlimited Capitalization
No predetermined date of redemption
Sales and purchase of units at current net
asset value (NAV)
No restrictions on entry & exit
Purchase of units directly from funds
Sale of units directly to the funds
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11. Closed-Ended Funds
 Constant Capitalization
 Pre-determined date of redemption
 Purchase & sale of units at the stock exchanges
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12. Types of Mutual Funds
(By Investment Objective)
By Investment objective there are two types of
mutual funds, which are:
 GROWTH FUNDS
 INCOME FUNDS
 BALANCED FUNDS
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13. SOURCES OF PROFIT GENERATION
A mutual fund can generate profits from two different
sources, which are:
 Dividend
 Capital Gains
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14. Mutual Fund Industry in Pakistan
 The National Investment (Unit) Trust is Pakistan’s largest and oldest
Mutual Fund. As on June 30, 2009, NIUT had funds under management of
around Rs. 28 billion invested in over 430 listed companies and had
approximately 56,000 unit holders
 Mutual Funds were introduced in Pakistan in 1962, with the public offering
of National Investment (Unit) Trust (NIT) which is an open-end mutual
fund in the public sector. This was followed by the establishment of the
Investment Corporation of Pakistan (ICP) in 1966, which subsequently
offered a series of closed-end mutual funds
 Currently there exists one open end (NIT) mutual fund in public sector.
Twelve open-ended and fourteen closed-ended mutual funds under private
sector management, and there are many more Funds in the pipeline
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15. Rules Govern Mutual Funds in Pakistan
There are two rules govern mutual funds in
Pakistan, which are:
1. Investment Companies and Investment Advisors'
Rules, 1971. (Govern closed-end mutual funds)
2. Asset Management Companies Rules, 1995.
(Govern open-ended mutual funds)
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16. Mutual Fund (Asset Management)
Companies in Pakistan
NATIONAL INVESTMENT TRUST
NBP FULLERTON ASSET MANAGEMENT LIMITED
ABAMCO LIMITED
AKD INVESTMENT MANAGEMENT LTD.
AL FALAH GHP INVESTMENT MANAGEMENT
AL-MEEZAN INVESTMENT MANAGEMENT LIMITED
AMZ ASSET MANAGEMENT LTD.
ARIF HABIB INVESTMENT MANAGEMENT LTD.
ASIAN CAPITAL MANAGEMENT (PVT.) LTD
ASKARI ASSET MANAGEMENT LTD.
ATLAS ASSET MANAGEMENT LTD.
BMA ASSET MANAGEMENT LTD.
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17. HABIB ASSETS MANAGEMENT LTD.
HBL ASSET MANAGEMENT LTD
KASB FUND LIMITED
NATIONAL ASSET MANAGEMENT COMPANY LIMITED
NATIONAL FULLERTON ASSET MANAGEMENT LIMITED - NAFA
NATIONAL IINVESTMENT TRUST LTD.
NBP CAPITAL LIMITED
NOMAN ABID INVESTMENT MANAGEMENT LIMITED
PICIC ASSET MANAGEMENT COMPANY LTD.
PRUDENTIAL FUND MANAGEMENT LTD
SAFEWAY MANAGEMENT LTD.
UBL FUND MANAGERS LTD.
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WE INVESTMENT MANAGEMENT LIMITED

18. CROSBY ASSET MANAGEMENT LTD.
DAWOOD CAPITAL MANAGEMENT LTD.
FAYSAL ASSET MANAGEMENT LIMITED
FIRST CAPITAL INVESTMENTS LTD
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19. NBP Fullerton Asset Management Limited
A subsidiary of
National Bank of Pakistan
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20. NBP Fullerton Asset Management Limited
Sponsors :
 National Bank of Pakistan
 Fullerton Fund Management
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21. NBP Fullerton Asset Management Limited
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22. NBP Fullerton Asset Management Limited
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23. Summary
 Mutual Funds
Portfolio/Fund Manager
 Net Asset Value
 Types of Mutual Funds
By Structure
By Investment Objective
 Sources of Profit generation
 Mutual Funds industry in Pakistan
 Rules Govern Mutual Funds in Pakistan
 Mutual Funds Companies in Pakistan
 NBP Fullerton Asset Management Limited
Sponsors
Funds name
NAFA Money Market Fund
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24. Quote for future leaders
" If you do not like any Rule , just Follow it ,
Reach the top and Change the rule ........
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25. rizwan_207@yahoo.com
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