Arif Habib Investments: Mutual Funds

Pakistan Income Fund (PIF)

Composite

Pakistan Income Fund (PIF) is an open-end fund, investing primarily in income producing debt securities. The Fund seeks relatively high fixed income returns

PIF invests in a range of fixed income securities including Government of Pakistan Bonds, corporate sector bonds (Term Finance Certificates - TFCs), reverse-repo transactions in the money market, and spread transactions. The weightages of the investment mix of the portfolio are managed in such a manner that reduces the risk of loss in the market value of the investments due to any major upward movement in interest rates in the country. Being an income fund, PIF’s emphasis is on managing interest rate risk, and as a policy, the Fund keeps the average duration of its portfolio less than two years.

Performance( Since Inception)

PIF (%)	12.76	13.03	7.49	9.63	10.11	10.7	9.23	8.81
	2002	2003	2004	2005	2006	2007	2008	2009

PIF-Overall Asset Allocation (Feb, 10)

	Feb	Jan

Other assets net of liabilities	-	2.7
T-bills (Govt. securities)	45.5	37.8
PIBs (Govt. securities)	2.2	2.2
Term Finance Certificates	45.1	46.5
Term Deposit Receipts	1.1	5.6
Placements	4.9	2.2

Fee Schedule

	Management fee: 1.50% per annum of average NAV
	Front-end load: 1.35% of the NAV
	Overall annual expense ratio for the composite is as follows:

Financial Year	Expense Ratio

2002	4.7%	^
2002-03	2.8%
2003-04	3.3%
2004-05	2.92%
2005-06	2.64%
2006-07	2.23%
2007-08	2.57%

^ annualized

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	11th March, 2002.
Fund Type	Open-end Fixed Income
Minimum investment	Rs. 5,000
Fund Manager	M. Zafar Rehman
Rating by PACRA	AA - (f)
Initial Public Offer	PKR 50.00
Currency	PKR
Registrar	Gangjees Registrar Services (Pvt.) Ltd.
Trustee	Central Depository Company of Pakistan Ltd. (CDC)
Auditors	A.F. Ferguson a member firm of PWC

Volatility Measures

	Feb	Jan
Average Duration (Days)	97	92
Avg. Portfolio Maturity (Year)	2.28	2.35
Net Assets/Mkt. Cap. (Rs. bn)	2.25	2.24
NAV (Rs. per unit)	51.66	51.20

Fund Returns(%)

	Feb	Jan
Month on Month	11.71	7.87
Quarter on Quarter	7.66	10.13
FY’10 to date	14.66	14.91
Since Inception(1st March 2003)	10 39	10.37

PIF Assets

	Financial Year	PIF Assets	Funds under management

		PKR (million)	PKR (million)
2001-02		309.67	633
2002-03		1,499.90	3,372.59
2003-04		3,400.52	8,211.85
2004-05		3,706.52	14,453.24
2005-06		5,686.58	19,709.01
2006-07		9,405.96	23,184.34
2007-08		6,070.07	18,426.73
2008-09		2,369.94	13,314.79

Dividend History

Financial Year	% of Face Value	Payout /unit (Rs.)	Form	Bonus reinvested
2009-10***	4	2.00	Bonus	3.94
2009-10**	3.74	1.87	Bonus	3.66
2008-09	4.70	2.35	Bonus	4.63
2008-09**	2.6	1.30	Bonus	2.9
2007-08	2.9	1.45	Bonus	2.9
2007-08 ***	6.6	3.3	Bonus	6.55

2006-07	10.50	5.25	Bonus	3.50
2005-06	10.00	5.00	Bonus	11.83
2004-05	9.60	4.80	Bonus	8.99
2003-04	9.00	4.50	Bonus	9.59
2002-03	12.00	6.00	Bonus	9.98
2001-02*	4.00	1.76	Bonus	10.45

Note: *** 2007-08 upto 27^th March 08,2008-09** upto 30^th September 08,2009-10** upto 30^th September 09,2009-10*** upto 31^st December 09

*Dividened 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.