Cash dividend for PCMF announced

The board of directors of Arif Habib Investment Management Limited, fund managers of Pakistan Capital Market Fund (PCMF) and Pakistan Strategic Allocation Fund (PSAF), both closed-end funds, in its meeting on Saturday approved final cash dividend for Pakistan Capital Market Fund of Rs1.75 per certificate for FY2004-05.
The PCMF had already announced an interim cash dividend of Rs1.25 in February 2005. The announcement takes the total distribution per certificate for the financial year 2004-05 to Rs3 per share.
The book closure for the entitlement for both funds will be from September 3, 2005 to September 10, 2005 (both days inclusive).
The board also announced results for Pakistan Strategic Allocation Fund (PSAF) launched on July 21, 2004, but started investing activity in August 2004 and approved a cash dividend at Rs1.5 per certificate. The Fund had already distributed an interim cash dividend of Re1 per certificate. The announcement takes the total distribution per certificate for the period from July 21, 2004 to June 30, 2005 to Rs2.50 per certificate.
PCMF delivered a cash-flow basis adjusted internal rate of return of 57 percent for FY2004-05. The market rose 41 percent during the fiscal year.
The Fund has earned a total income of Rs 598.90 million (including unrealised appreciation in fair value of investments classified as 'held for trading') during the year. Realised capital gains of Rs 473.25 million; dividend income was Rs 84.81 million; income from carryover transactions (COT), Rs 25.65 million; and income from investment in government securities was Rs 3.94 million.
In order to provide investors the benefit of being able to exit any time at the full value of the Fund, the board of directors of Arif Habib Investments has decided to convert the Fund to an open-ended fund. Approval from the certificate holders has already been taken, and some last minute legal requirements are being fulfilled. This is the first time in Pakistan's history that such a step has been taken in the mutual fund industry, which demonstrates management's continued commitment to serve its valued investors.
PSAF has earned a total income of Rs 1,046.40 million (including unrealised appreciation in the value of investments classified as 'held for trading') during the period. Realised capital gains were Rs 827.68 million; dividend income was Rs 102.67 million; and income from carryover transactions (COT), Rs 94.60 million.
The market rose 41 percent during the fiscal year and despite the sharp correction in March, it still closed appreciably up by the close of the year. The market's performance was simply a response to the higher earnings growth, superior corporate results and pay-outs and improved market fundamentals. PSAF delivered a cash-flow basis adjusted internal rate of return of 37 percent for FY2004-05.
Arif Habib Investments manages three open-ended and three closed-end mutual funds with over Rs 15 billion of assets under management and has a rating of A (M2) by PACRA. Arif Habib Investments has received "Performance Excellence Award" by MUFAP for FY2003-04 for the best performance of Pakistan Stock Market Fund (PSM) and Pakistan Income Fund (PIF).