Investment 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.

Pakistan Capital Market 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.

The asset allocation to equities and debt is made on the basis of relative attractiveness of each asset class. The investment process is driven by fundamental research. For equities investment, fundamental outlook of sectors/companies and DCF (discounted cash flow) valuations are the primary factors in sectors’ allocation and stock selection. For debt investment, interest rate outlook is the key determining factor and allocation to this segment is increased when the yields are comparatively higher compare to the total returns on equities. Investment is made in corporate bonds (investment grade) and government bonds. Cash is kept in deposits with highly rated banks.

PCM 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.

5 years performance