Arif Habib Investments: Mutual Funds

Pakistan Stock Market Fund (PSM)

Investment 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 NBFC Rules, 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.

Performance (Since Inception)

PSM (%)	62.26	52.41	26.85	29.41	-3.01	-26.32	24.77
*BM (%)**	55.16	41.12	34.08	37.87	-10.77	-41.72	35.74
	2004	2005	2006	2007	2008	2009	2010

* PSM Benchmark

Overall Asset Allocation

Overall Asset Allocation

Fee Schedule

	Management fee: 2.00% per annum of average NAV
	Front-end load: Up to 2% effective 12th Jan, 2009
	Overall annual expense ratio for the composite is as follows:

	Financial Year	Expense Ratio

	2009-10	2.56%
	2008-09	2.57%
	2007-08	2.52%
	2006-07	3.27%
	2005-06	3.69%
	2004-05	3.99%
	2003-04	3.86%
	2002-03	4.43%
	2001-02	5.14%

Expense ratio has been calculated taking into account operating expenses as a percentage of average net assets of the composite

Quick Stats


	Date of Inception	11^th March 2002
	Fund Type	Open-end Equity
	Minimum investment	PSM - PKR 5,000/- PSM-CD PKR 10,000,000/-
	Fund Manager	Uzma Khan, CFA, FRM
	Rating by PACRA	ST : 3 Star LT: 3 Star
	Initial Public Offer	PKR 50.00
	Currency	PKR
	Registrar	Arif Habib Investments Limited
	Trustee	Central Depository Company of Pakistan Ltd. (CDC)
	Auditors	KPMG Taseer Hadi & Co, Chartered Accountants

Portfolio Characteristics

Portfolio Characteristics

Fund Returns

Fund Returns

Top Ten Holdings

Dividend History

Financial Year	% of Face Value	Payout /unit (Rs.)	Form	Bonus reinvested

2010-11	12.60	6.30	Bonus	-
2009-10	19.40	9.7	Bonus	19.54
2008-09	0	-	-	-
2007-08	34	17	Bonus	26.34
2006-07	50	25	Bonus	29.73
2005-06	60	30	Bonus	35.59
2004-05	50	25	Bonus	27.75
2004-05	20	10	Cash
2003-04	60	30	Bonus	36.59
2002-03	40	20	Bonus	28.98
2001-02*	2.70	1.35	Bonus	2.75

* Dividend is not for the full year as the fund was launched in March-2002. Face value is Rs.50

All investments in mutual funds and securities are subject to market risk. The NAV based price of these units and any dividends and return thereon are dependent on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies and the risk involved.