AKD Investment Management Limited

AKD Investment Management Limited (AKDIML) is a wholly owned subsidiary of AKD Securities (Private) Limited. Its main objective is delivering what investors want most, access to a wide range of investment opportunities through the introduction of innovative financial products, providing consistent risk-adjusted performance and returns over time. As an established leader in Pakistan's capital markets, AKD brings unparalleled expertise in all aspects of the local equity markets. In addition to being the largest broker on the KSE, with a market share of around 15%, AKD has the most active equity research group in the country.
AKD's institutional sales group services virtually all of the major institutional investors in the country, and has a special team exclusively targeted towards international investors. In addition, through akdtrade.com, Pakistan's first online trading system launched in November 2002, AKD has acquired more retail customers than any other broker in Pakistan.
As its first venture, AKDIML has acquired the rights to manage Pakistan's one of the oldest closed end mutual fund in the private sector: "Golden Arrow Selected Stocks Fund" (GASF) with a paid up capital of Rs.100mn. By issuing a rights issue, the current paid up capital has been increased to Rs.351mn. AKDIML has restructured the portfolio it inherited, as the fund held a number of illiquid and non-performing stocks.
The investment strategy is to invest in high dividend paying, blue chip stocks, in order to create a quality portfolio, which provides investors with consistent capital gains, and assured dividend yields. GASF has provided excellent returns since the time of inception with AKDIML.
AKDIML in its pursuit for launching new products in Pakistan is in the process of introducing an Index Tracker Fund, called the "AKD Index Tracker Fund", which is an index-based closed-end fund in Pakistan. The objective of the Fund is to invest in listed equities which are components of the KSE-100 index on the Karachi Stock Exchange so as to mirror the return of the KSE-100 Index. The fund will strictly assign weights to stocks and sectors within the portfolio according to the weights that these stocks and sectors have in the KSE-100 index.
AKDITF offers investors a chance to diversify their portfolio by investing in equity as an asset class and eliminating the reliance of expert stock picking and market timing, which is extremely difficult to achieve in volatile market conditions. The Fund also allows small investors to participate in the overall performance of the market, as it would be difficult for them to allocate limited funds to various classes of stocks, thus making diversification impossible. Currently, there are over $4 trillion invested in Index Funds globally. The reason for their popularity is the fact that they have outperformed active fund management in the long term.
During the last 20 years, on average, the individual stock investor in the United States has enjoyed a return of 5.8% vs. S&P 500 return of 15.6% (source: Dimension Asset Management). Its amazing to see that the Wilshire 5000 Index, which represents the entire US market has provided a 16.3% return since 1990 till date, vs. a return of 13.9% by active mutual funds (source: Index Fund Investor).
AKDIML has assembled a seasoned and motivated team with a track record of global fund management headed by Mr. Faisal Bengali. He has been working with AKD since 1994. As Head of Equity Sales & Trading of AKD, he has provided investment advice and recommendations to institutional fund managers and high net worth clients. He enjoys close working relationship with reputable foreign and local institutional clients. Mr. Bengali has a Masters in Business Administration degree from Rice University, USA.
Mr. Sadiq Hussain has joined AKDIML as its Chief Investment Officer. He brings with him more than a decade of experience in financial services, including 9 years with Merrill Lynch. His last assignment was with Merrill Lynch's Global Private Wealth Management Group, where he was the Senior Financial Advisor managing over USD120m in assets. Prior to that, he spent 8 years with Merrill Lynch Asia Pacific, where he was a Director in the Institutional Client Division. Mr. Hussain is a graduate from the University of Pennsylvania, Wharton School of Business.

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PICIC INVESTMENT FUND-PIF       (formerly ICP Mutual Funds Lot 'B')

                                2001    2002   2003   2004     2005

                                                               (9M)

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NET ASSET VALUE PKR MILLION     965     1,249   2,289  5,091  6,066

CAPITAL GAINS   PKRMILLION       64        14     169    908  1,323

DIVIDEND INCOME PKRMILLION      113       126     174    255    248

EPS (W/O Unrealized Gain) PKR  1.10      0.97    2.46   3.48   5.17

EPS (With Unrealized Gain) PKR 1.10      0.97    9.27   5.32   4.93

PIAD UP CAPITAL PKR           1,150     1,150   1,262  2,841  2,841

DIVIDEND PAID MILLION PKR      1.00      1.90    1.40   2.94   1.50

BONUS SHARES   %                NIL       NIL      10    NIL    NIL

Right Shares   %                NIL       NIL     NIL    125    NIL

Right Subscription Amnt PKR MLN NIL       NIL     NIL  2,563    NIL

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