The Pakistan Credit Rating Agency (PACRA) has assigned a 5-Star fund rating (Category: Equity Fund) to Pakistan Stock Market Fund (PSM), which reflects a superior performance relative to its peers. 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: PSM, an open-end equity fund, was established under a Trust Deed executed between Arif Habib Investment Management Limited (AHIML) as Management Company and Central Depository Company of Pakistan Limited (CDC) as Trustee in February 2002. The Fund primarily invests (normally 70%) in selective high quality liquid shares. The remaining portion (30%) is allocated to shares of listed companies that offer good value in terms of potential dividend yield or growth in the stock price but may not be traded in volumes. Equity investment decisions are based on the fair value of a company – as determined by the research division and approved by the Investment Committee – and its degree of under or over-pricing as compared to the market price.

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.