presentation mutual funds
DESCRIPTION
Mutual FundsPortfolio/Fund Manager Net Asset Value Types of Mutual Funds By Structure By Investment Objective Sources of Profit generation Mutual Funds industry in Pakistan Rules Govern Mutual Funds in Pakistan Mutual Funds Companies in Pakistan NBP Fullerton Asset Management Limited Sponsors Funds name NAFA Money Market FundTRANSCRIPT
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Topic: Mutual Funds
RIZWAN AHMAD
CMA-Stage 4
e-mail : [email protected] of Cost and Management Accountants of Pakistan
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Outline of Presentation
Mutual Funds
Portfolio/Fund Manager Net Asset Value Types of Mutual Funds
By Structure
By Investment Objective Sources of Profit generation Mutual Funds industry in Pakistan Rules Govern Mutual Funds in Pakistan Mutual Funds Companies in Pakistan NBP Fullerton Asset Management Limited
Sponsors
Funds name
NAFA Money Market Fund
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Mutual Funds……….?
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What is a Mutual Fund ?
It is a trust that pools the savings of a number of investors who share a common financial goal
Professional fund managers then invest these funds in a way that helps investors achieve their goal
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A mutual fund is managed by a management company (Asset Management Company)
The management company is a bank of human resources, considered to be professionally qualified personnel
The portfolio of mutual fund is managed by a "Portfolio Manager", whose responsibility is to be invested in, and satisfies the desire of the investors
Every day, the fund manager/ portfolio manager counts up the value of all fund's holding, figures out how many shares have been purchased by shareholders, and then calculates the Net Asset Value (NAV) of the mutual fund, the price of a single share of the fund on that day.
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Mutual Funds
Pool their money with
INVESTORS
FUND MANAGERS
Passed back to
Generate
RETURNS
SECURITIES
Invest in
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NAV (Net Asset Value)
A fund's NAV fluctuates along with the value of its underlying investments. The formula for NAV is:
NAV = (Market Value of All Securities Held by Fund + Cash and Equivalent Holdings - Fund Liabilities) /
Total Fund Shares Outstanding
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Example
Let's assume at the close of trading yesterday that a particular mutual fund held $10,500,000 worth of securities, $2,000,000 of cash, and $500,000 of liabilities. If the fund had 1,000,000 shares outstanding, then yesterday's NAV would be:
NAV = ($10,500,000 + $2,000,000 - $500,000) / 1,000,000 = $12.00
A fund's NAV will change daily as the value of a fund's securities, cash held, liabilities, and the number of shares outstanding fluctuates
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Types of Mutual Funds
By structure, there are two types of mutual funds, which are:
Open-end mutual funds
Closed-end mutual funds
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Open-Ended Funds
Unlimited Capitalization No predetermined date of redemption Sales and purchase of units at current net
asset value (NAV)No restrictions on entry & exit Purchase of units directly from funds Sale of units directly to the funds
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Closed-Ended Funds
Constant Capitalization
Pre-determined date of redemption
Purchase & sale of units at the stock exchanges
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Types of Mutual Funds (By Investment Objective)
By Investment objective there are two types of mutual funds, which are:
GROWTH FUNDS
INCOME FUNDS
BALANCED FUNDS
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SOURCES OF PROFIT GENERATION
A mutual fund can generate profits from two different sources, which are:
Dividend
Capital Gains
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Mutual Fund Industry in Pakistan
The National Investment (Unit) Trust is Pakistan’s largest and oldest Mutual Fund. As on June 30, 2009, NIUT had funds under management of around Rs. 28 billion invested in over 430 listed companies and had approximately 56,000 unit holders
Mutual Funds were introduced in Pakistan in 1962, with the public offering of National Investment (Unit) Trust (NIT) which is an open-end mutual fund in the public sector. This was followed by the establishment of the Investment Corporation of Pakistan (ICP) in 1966, which subsequently offered a series of closed-end mutual funds
Currently there exists one open end (NIT) mutual fund in public sector. Twelve open-ended and fourteen closed-ended mutual funds under private sector management, and there are many more Funds in the pipeline
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Rules Govern Mutual Funds in Pakistan
There are two rules govern mutual funds in
Pakistan, which are:
1. Investment Companies and Investment Advisors' Rules, 1971. (Govern closed-end mutual funds)
2. Asset Management Companies Rules, 1995. (Govern open-ended mutual funds)
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Mutual Fund (Asset Management) Companies in Pakistan
NATIONAL INVESTMENT TRUST
NBP FULLERTON ASSET MANAGEMENT LIMITED
ABAMCO LIMITED
AKD INVESTMENT MANAGEMENT LTD.
AL FALAH GHP INVESTMENT MANAGEMENT
AL-MEEZAN INVESTMENT MANAGEMENT LIMITED
AMZ ASSET MANAGEMENT LTD.
ARIF HABIB INVESTMENT MANAGEMENT LTD.
ASIAN CAPITAL MANAGEMENT (PVT.) LTD
ASKARI ASSET MANAGEMENT LTD.
ATLAS ASSET MANAGEMENT LTD.
BMA ASSET MANAGEMENT LTD.
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HABIB ASSETS MANAGEMENT LTD.
HBL ASSET MANAGEMENT LTD
KASB FUND LIMITED
NATIONAL ASSET MANAGEMENT COMPANY LIMITED
NATIONAL FULLERTON ASSET MANAGEMENT LIMITED - NAFA
NATIONAL IINVESTMENT TRUST LTD.
NBP CAPITAL LIMITED
NOMAN ABID INVESTMENT MANAGEMENT LIMITED
PICIC ASSET MANAGEMENT COMPANY LTD.
PRUDENTIAL FUND MANAGEMENT LTD
SAFEWAY MANAGEMENT LTD.
UBL FUND MANAGERS LTD.
WE INVESTMENT MANAGEMENT LIMITED
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CROSBY ASSET MANAGEMENT LTD.
DAWOOD CAPITAL MANAGEMENT LTD.
FAYSAL ASSET MANAGEMENT LIMITED
FIRST CAPITAL INVESTMENTS LTD
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NBP Fullerton Asset Management LimitedA subsidiary of
National Bank of Pakistan
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NBP Fullerton Asset Management Limited
Sponsors :
National Bank of Pakistan
Fullerton Fund Management
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NBP Fullerton Asset Management Limited
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NBP Fullerton Asset Management Limited
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Summary
Mutual Funds
Portfolio/Fund Manager Net Asset Value Types of Mutual Funds
By Structure
By Investment Objective Sources of Profit generation Mutual Funds industry in Pakistan Rules Govern Mutual Funds in Pakistan Mutual Funds Companies in Pakistan NBP Fullerton Asset Management Limited
Sponsors
Funds name
NAFA Money Market Fund
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Quote for future leaders
" If you do not like any Rule , just Follow it , Reach the top and Change the rule ........
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