Picic Energy Fund will start selling Rs 250 million worth of funds from December 28 to December 29, taking advantages in the rally recorded in the energy sector at the Karachi Stock Exchange (KSE).
Abid Raza, chief executive of the Fund in a telephone interview said: "It is a unique fund and first dedicated fund for the energy sector, launched by the Picic Asset Management Company Ltd."
The size of this fund is Rs 1 billion and a green shoe option of Rs 500 million is also being offered to the general public. He said: "Oil and gas marketing companies, oil and gas exploration companies, power generation and distribution and refineries constitute the energy sector."
The one billion rupees is comprised of Rs 550 million generated from financial institutions, high net worth individuals and some of the overseas Pakistani investors. A sum of Rs 200 million has been invested by investment advisor, public offering Rs 250 million and nearly Rs 500 million of green shoe option.
Raza said: "The energy sector capitalisation growth has surpassed the total market capitalization growth. Picic asset management company is currently managing Picic investment fund and Picic growth fund known for their dividend payouts.
Picic asset management company is currently managing assets worth more than Rs 20 billion.
The Fund would aim to extract maximum possible return through investment in energy sector securities and actively switching amongst them on the basis of value orientation, thus ameliorating certificate holders wealth while ensuring risk minimisation as well.