Atlas Group launches two mutual funds

Atlas Asset Management Ltd on Monday launched two new mutual funds, in collaboration with ING Investment Management which has a fund of 460 billion euros, providing opportunity of extending its expertise in this particular field to Pakistan. State Bank Governor Dr Ishrat Husain termed it a big success for the Atlas group, which involved a company of the highest standard, the ING Investment Company, in Pakistan.
Like SBP Governor, ING Asia/Pacific Regional Manger Peter A Smyth said he saw great potential for the growth of mutual funds in the country.
Dr Hussain said that mutual funds in Pakistan are managing only equal to 4.7 percent (Rs 100 billion) of banks' deposits, while in India it is 13 percent (equal of Rs 16 trillion), and in US it is 100 percent.
The SBP Governor urged the mutual fund sector to come up with products, which are required by the public. He stressed the need for educating the people about mutual funds and their benefits. He said that the benefits of mutual funds should not be limited to a few cities and the network should be countrywide and should reach far and remote areas where people have assets but are not aware about their use.
He said that the government has been encouraging National Saving Schemes, a way to involve individuals to meet their budgetary requirements which damaged the mutual funds sector. But now the government is discouraging NSS and there is vital potential for mutual funds sector to tap individuals' assets. He said it was not a good situation that banks have over 90 percent assets of the people.
Smyth expressed confidence about the mutual funds sector in Pakistan and assured his full support and co-operation for the growth of mutual funds. He said Pakistan was going through deregulation and economy was growing which is attractive for the growth of the mutual funds. He said that products should be designed in line with the requirements of the people, which is essential for the growth of mutual funds.
He said that good performance is needed for a mutual fund company and added that good result should be reflected in second quarter of the year.
He said that mutual funds should be accessible to people, as it was essential for the growth of the whole economy of the country.
The Atlas Stock Market Fund (ASMF), an open-ended equity fund, and the Atlas Funds of Fund (AFF), a close-end fund, were the two products launched on Monday.
The AFF will be Pakistan's first Fund of Funds. The IPO dates will be November 23-26, 2004, for ASMF and December 13-16 for AFF. The two new funds will collectively add Rs 1.15 billion to the fund size and the total funds under management will surge to Rs 1.7 billion, approximately.
Habib-ur-Rehman, Chief Executive of the Company, and Acting Chairman of SECP, Abdur Rehman Qureshi, also spoke on the occasion.
The founder of Atlas Group, Yousuf Sherazi, appreciated the role of State Bank and said that Dr Husain was the captain of reforms in banking. He was also thankful to Smyth that he specially Atlas Group launches two mutual funds came to attend the launching ceremony. Sherazi said that Atlas Group paid taxes amounting to Rs 9 billion to the exchequer last year and expressed hope to keep the flag high.