The Pakistan Credit Rating Agency (PACRA) has assigned a 5-Star fund rating (Category: Absolute Return Fund) to Pakistan Capital Market Fund (PCM), which reflects its superior performance. The rating is a composite measure of two factors namely a) returns, b) risk associated with the returns measured by Sharpe Ratio.

About the fund: PCM is a broad based, absolute-return fund, investing in a combination of equity, debt and money market securities, with the underlying objective of seeking the optimum absolute return from Pakistan’s capital market. The Fund does not have set allocation limits for any asset class (with the exception of an upper limit of 30% and 25% of NAV for investments in government securities and CFS, respectively) and can even invest 100% of its NAV in any class. If a particular asset class offers relatively higher return prospects than other asset class, the Fund is likely to have higher allocation in that particular asset class and vice versa.

About the Asset Manager: AHIML, incorporated in August 2000, is one of the largest asset management companies in Pakistan managing assets of above PKR 17bln at end-05. The majority stake in the company is held by Arif Habib Securities Limited (AHS). AHS, which started as a traditional security firm, is now acquiring the character of a holding company for Arif Habib Group.