2 CORPORATE PROFILEPICIC Asset Management Company Limited (PICIC AMC) is a wholly owned subsidiary of NIB Bank Limited, which is 88.64% owned by Temasek Holdings - an investment arm of the Government of Singapore with credit rating of AAA/Aaa by S&P and Moody’s.PICIC AMC has the highest authorized capital of USD 50 million and paid-up capital of USD 30 million in the industry. The company is currently managing two closed-end funds and four open-ended funds with an investor base of around 40,000 and total Assets under Management of USD 206 million as of May 31, PICIC AMC is managing the largest equity portfolio in Pakistan market after the state owned National Investment Trust and is expected to launch the Islamic Fund series by end of this calendar year. As of today, the total distribution by Funds managed by the Company stands at USD 138 million. PICIC AMC is also licensed for investment advisory services for customized discretionary and non-discretionary portfolio mandates.Based on the Sponsor’s strength, quality of management, systems and procedures and fund performance, the Company has been rated ‘AM2-’ by JCR-VIS which denotes ‘High Management Quality’.
5 MANAGEMENT PROFILE Mir Adil Rashid – Chief Executive Officer Mir Adil Rashid has more than 14 years of rich and diversified professional experience in the field of portfolio management and institutional and retail sales. Besides that, Adil carries a proven track record of turning around business organizations into vibrant units. Adil took over as the Chief Executive Officer (CEO) of PICIC AMC in Dec 2008 and has successfully turned the company around with a proactive hands-on approach to management. The company’s assets under management, after touching a low of approximately US$ 80mn, have registered an impressive growth in the last four years to over US$ 200mn as of June 28, This success has been shared vehemently with the certificate holders in the form of US$ 47mn in dividend payments during the same period. Furthermore, with the objective of taking the company to new heights, under Adil’s guidance, PICIC AMC has launched the Investment Advisory division with the intention of servicing not only domestic but also international clients. PICIC AMC’s Investment Advisory division has been positioned to provide international service standards under the branding of PICIC Bespoke.Prior to joining PICIC AMC, Adil was the CEO of Global Securities Pakistan Ltd. (one of the leading corporate brokerage houses of Pakistan) where he played an instrumental role in managing the growth of the company by leveraging potential opportunities and developing cost effective solutions resulting in raising competitiveness and increasing firm revenues. At Global, Adil had been involved in landmark investment transactions, including the privatizations of Pakistan Telecommunications Company Limited (US$2.6bn), Pak Telecom (US$898mn), Habib Bank Limited (US$229 million), United Bank Limited (US$126mn) and Kot Addu Power Company Limited (US$48 million). Under his tenure at Global, Adil successfully introduced compliance and risk management systems. Adil also established key relationships with international portfolio managers, broker dealers and hedge funds by providing investment advice on the Pakistan equity market through international road shows and conferences. Adil was also pivotal in converting the research department from a traditional cost centre to a revenue generating centre.Adil’s association with the capital markets is also longstanding where he has recently served on the board of MUFAP for two years between 2009 and He holds a Bachelor’s degree from Forman’s Christian College, Lahore majoring in Mathematics and Statistics. He has attended various conferences and workshops on strategic planning, team building and business development..
6 MANAGEMENT PROFILE Suleman Chhagla – Chief Operating Officer Suleman Chhagla joined PICIC Asset Management as Chief Operating Officer in December He has more than 23 years of experience at progressively senior levels in Audit, Finance, Operations, Risk Management, Treasury and Investments, in the Middle East, Pakistan, and South East Asia. Prior to joining PICIC AMC, Suleman was Chief Risk Officer for Techcombank Vietnam, one of the largest private banks of Vietnam, with strategic shareholding of HSBC.In his career, he has served in senior roles as Head of Risk / Chief Risk Officer at State Bank of Pakistan, as Head of Market Risk with co-assignment with Head of Operational Risk at Arab National Bank, Saudi Arabia, and as Head of Treasury Finance and Operations at the Saudi British Bank. In the early part of his career, he worked with the Big 4s in Audit and Assurance, with specialism in Finance and Banking Sector, where he managed high profile assignments of global significance.Suleman is a Fellow of the Institute of Chartered Accountants of Pakistan, and the Institute of Cost and Management Accountant of Pakistan. He speaks at various local and international forums of Bankers, Risk Managers, and Central Banks. He actively volunteers with the community based nonprofit organizations, and devotes time to his family, reading, traveling, and non-intensive sportKhashe Lodhi – Chief Investment OfficerKhashe Lodhi is responsible for devising investment strategies and managing portfolios of both closed end and open end equity and debt funds. He brings to the company a rich vein of experience of capital markets and investment banking. He started his career in 1993 as a fixed income dealer and later on moved to the equities side and managed a portfolio of over PKR 6.0 billion at Crescent Investment Bank. He then joined Pakistan Kuwait Investment Company wherein he had various assignments that included setting up a brokerage company and an asset management company. Before joining PICIC Asset Management Company, he was with UBL Fund Managers in the capacity of Head of Islamic Funds and Product Development. He has also worked for Mashreq Bank Pakistan and Crescent Commercial Bank.Khashe holds a Master's degree in Business Administration from Institute of Business Administration (IBA). He is also a visiting faculty member of IBA and has taught courses in finance including portfolio management.MANAGEMENT PROFILE
7 MANAGEMENT PROFILE Syed Ali Zafar Mehdi – Head of Risk Ali has seventeen year of experience in financial and investment analysis, FX trading and research, performance measurement, performance attribution, and risk management of fixed income and FX mandates. Prior to joining PICIC AMC, he was associated with Abu Dhabi Investment Authority (ADIA) for 17 years with focus on market risk, portfolio risk and quantitative analysis. He also has diversified experience as an auditor, treasury operation officer, and management accountant, gained in the early part of his career.Tauqir Shamshad – Head of Fixed Income and TreasuryTauqir has over 18 years of diversified work experience. He worked for 11 years in the field of treasury and over 5 years in Asset Management. During this tenor, he played an instrumental role in the formation, floatation and management of Income Fund, Shariah Compliant Asset Allocation Fund and Equity Asset Allocation Fund. Before joining PICIC AMC he was working as Senior Vice President for Dawood Capital Management Ltd, a company initially sponsored by Asian Development Bank, Manila and First Dawood Group.Tauqir holds Master’s degree in Business Administration, Commerce and PGD in Islamic Banking and Finance from Karachi University.Imad Zahid Nagi – Chief Financial OfficerImad is responsible for the management of finance function, secretarial affairs, corporate governance and general administration of PICIC AMC along with supervision of Fund accounting function for the funds under the management of PICIC AMC. He is also responsible for the liaison and smooth operating of internal and external audits of the organization. His area of responsibility further includes monitoring the regulatory and taxation matter, preparation of financial budgets and variance analysis. He has a rich experience of more than 6 years working for one of the most reputable Audit Firms of the Country KPMG Taseer Hadi and Co. Chartered Accountants. Imad is an Associate Member of Association of Certified Chartered Accountant (ACCA).MANAGEMENT PROFILE
8 MANAGEMENT PROFILE Saad H Qureshi – Head of Corporate Saad joined PICIC AMC as Head of Corporate in June He is spearheading sales and business development functions and is managing Corporate and Retail sales teams as well as the distribution network including NIB Bank branches throughout the country. Saad is also looking after Investment Advisory Business of Institutional and HNW clients.He has been associated with the financial sector for over 10 years with his area of expertise being Investment Advisory / Business Development. He started his career from CDC Pakistan Limited, and since then has been associated with various organizations including UBL Funds, IGI Investment Bank and NBP Fullerton Asset Management. He has been instrumental in generating sizeable institutional business in mutual funds as well as closing over a dozed investment advisory mandates during the course of his career. He has done his Masters in Business Administration from Institute of Business Administration (IBA), majoring in Marketing.Sohail Anjum – Head of Operations Sohail joined PICIC Asset Management Company Limited in April 2012 as Head of Operations. He brings with him more than 15 years of diversified experience in the fields of accountancy, taxation and treasury operations. Previously, he was associated with Arif Habib Investments Limited as Assistant Vice President Finance and Operations. He also served in Saba Textiles Private Limited as Manager Accounts and Finance.Sohail is a Cost and Management Accountant and an Associate Member of the Institute of Cost and Management Accountants of Pakistan.
9 MANAGEMENT PROFILE Umer Pervez – Head of Research Umer Pervez has over six years of experience in sell side equity research in the capital markets of Pakistan. At PICIC AMC, Umer is the Head of Research and a member of the Investment Committee. Umer has an extensive understanding of all major listed sectors at the Karachi Stock Exchange. Prior to joining PICIC AMC, Umer was the Head of Research at Shajar Capital Pakistan (formerly Burj Capital Pakistan). Under his tenure, he successfully transformed the research department into a revenue generating unit by providing bespoke business research focusing on the GCC region. Prior to joining Shajar Capital, Umer was an Investment Analyst at AKD Securities Ltd. where he represented AKD Securities at various marketing road shows and investor conferences for Pakistan Equities and his expertise in his assigned industry sectors were highly regarded.Prior to this, Umer was based in the US and employed with The Pennsylvania State University, USA in an assistantship with the Program Chair of the Finance Program. He holds a Masters in Business Administration from The Pennsylvania State University, USA and a Bachelor of Science (Finance) from The Pennsylvania State University, USA.Asher Matloob – Head of Compliance and Internal Audit Asher Matloob has more than 12 years of working experience in Compliance, Audit, Internal Audit, Due Diligence Assignments etc. He is currently heading Compliance and Internal Audit at PICIC AMC. In this position, his job objective is to ensure that all business activities of the organization are carried out in accordance with the applicable laws and internal policies of the company and to provide value additions in the form of giving suggestions to improve the accounting and internal control system of the organization. Previously, he was working with UBL Fund Managers Ltd for almost 5 years as Manager –Internal Audit and Compliance.Asher is a qualified Cost and Management Accountant (ACMA) from Institute of Cost and Management Accountant of Pakistan and certified Internal Auditor (CIA) from Institute of Internal Auditors-USA. He is also an associate member of Pakistan Institute of Public Financial Accountant and CA (Inter). He has completed articleship from Deloitte Touché Tohmatsu, one of the leading accounting firms of the world.
10 MANAGEMENT PROFILE Jaffar Ali Khan- Head of Human Resources Jaffar Ali Khan has joined PICIC AMC as Head of Human Resources. Jaffar possesses a comprehensive knowledge of Human Resources Management. He has 11 years of HR experience in industries including Banking, Consultancy, Advertising and FMCG. Before joining PICIC AMC , he worked with Soneri Bank Limited as VP-Head Staff Compensation and Benefits. During his association with SBL, he was responsible for the development and implementation of several new HR initiatives including revamping HR policies, Centralization of Payroll, Centralization of Staff Loans and implementation of HRIS (Human Resources Information System). Jaffar has done his BBA (Hons.) & MBA in HR. He was also awarded gold medal in Marketing and Financial Management.Mohammad Farrukh Khan – Head of Information TechnologyFarrukh joined PICIC AMC as Manager Information Technology in August 2010 and was promoted as Head of Information technology in February Having a bachelor's degree in IT as well as various other certifications, he is responsible for overseeing the smooth functioning of the IT department. At PICIC, he has been responsible for ensuring the implementation of ERP, a project finalized in March He has an experience of almost 10 years in this field and has previously worked at Alpha Insurance, Global Securities and Fortune Securities.Farrukh has a bachelor’s degree in Computer Sciences from Petroman Training Institute.
11 Discretionary Portfolio SCOPE OF SERVICESFund ManagementInvestment AdvisoryOpen Ended FundsClosed End FundsPICIC BespokeDiscretionary PortfolioPICIC Energy FundPICIC Investment FundNon-DiscretionaryPortfolioPICIC Stock FundPICIC Growth FundPICIC Income FundPICIC Cash Fund
12 PERFORMANCE OF OPEN-ENDED FUNDS PICIC Income Fund12-Mar12-Jun12-Sep12-Dec13-Mar13-MayNet Asset Value (USD in Millions)10.3411.1513.2213.1513.3712.213Q 2012FY 20121Q 2013HY 20133Q 2013FY 2013Year to Date Annualized Return11.90%11.82%11.31%11.80%9.66%9.48%PICIC Cash Fund25.5728.1221.5321.1626.4923.3111.50%11.44%10.63%11.23%9.22%9.06%PICIC Stock Fund1.271.241.351.421.512.04Year to Date Return12.12%13.03%9.35%17.72%27.20%50.37%PICIC Energy Fund200920102011201210.5610.8712.3310.4714.37Earning Per 100 Certificate (USD)-1.731.363.300.88-PayoutNIL5.00%25.00%7.50%
13 PERFORMANCE OF CLOSED-END FUNDS PICIC Growth fund2006200720082009201020112012Net Asset Value (USD in millions)19822316580819077Earning Per 100 Certificate (USD)25.910.4-3.1-10.12.34.91.9Payout90.00%62.50%25.00%NIL20.00%38.00%17.50%PICIC Investment Fund91104743739423610.16.3-1.5-0.518.104.22.1680.00%37.50%7.50%10.00%8.00%
14 PAYOUTS BY PICIC FUNDS Payout Profile Closed Ended Funds Open Ended FundsTotalPGFPIFPICIC-EFPICIC-IFPICIC-CFPICIC-SFCash Dividend Paid (USD in Mn)71.048.55.8-0.420.41126.0Bonus Units/Certificates issued (USD in Mn)22.214.171.124.413.5Total Distribution (USD in Mn)77.43.923.81139.5Since Assets Under management with PICIC from 2004 till 31-March-2013
16 INTRODUCING PICIC Bespoke PICIC Asset management takes pride in introducing PICIC Bespoke, customized investment solutions exclusively designed for high net worth individuals and select corporations.At PICIC Asset Management, our experienced professionals aim to create customized and structured solutions for our clients’ requirements. Our Bespoke approach sets us apart from the competition. We work with clients and develop strategies that will be most effective in achieving their investment goals.PICIC Bespoke, offers discretionary portfolio and non-discretionary portfolio management services.
17 INTRODUCING PICIC Bespoke To enhance and preserve your wealth, PICIC Bespoke follows a disciplined approach in constructing and managing your portfolio.We walk you through a multi step process, starting with gathering insight about you, which lead to devising and implementing the strategy and reviewing the performance of your investments.
18 INTRODUCING PICIC Bespoke Discretionary MandateWith Discretionary Mandate, a highly structured and personalized investment approach, we manage your money on your behalf. You can benefit from the experience and knowledge of our seasoned team of specialists that manages your money in line with your financial objectives, timeframe and risk tolerance.Non-Discretionary MandateWith Non-Discretionary Mandate, you have the flexibility and control to be directly involved in investment decisions while seeking our objective and professional advice.
19 RESEARCH FOCUS Head of Research Database Analysts Fixed Income EconomyCompany analysisSector/company updatesIdea generationHead of ResearchFixed IncomeStrategy: Equity/Fixed Income/International desk/Separately Managed AccountsRegional companiesNew idea generation/research productsPortfolio recommendationDatabaseProviding support function to analysts & Fund ManagersRevamping existing database
20 Research Driven Investment Decisions Research MaintenanceQuarterly updatesResult previewResult reviewsFixed incomeMonitoring structural shiftsCorporate meetingsMorning briefsHead of ResearchInvestment CommitteeIncreasing coverageIncludes both sector and companiesExpanding full coverage to at least 75% ofindex market capitalizationNew idea generationNew investment ideasPre IPO & IPO analysisResearch productsSupporting SMA activitiesConstruction of model portfolioRecommending target weightsClient presentationsInvestmentAdvisoryDatabaseConverting existing database structureConstructing new databaseProviding one platform solution
21 Process Flow- Idea generation Sector AnalysisStudying seasonal trendChanges in regulatory environmentChanges in fundamental driversRelative performanceCompany AnalysisGreenfield projectGrowth/cost efficiency measuresCompany financialsManagement changesRelative performanceEconomic AnalysisReviewing any changes in key macro variablesRegional analysisRecommendation
22 RISK And compliance Market Risk Regulatory Risk Risk and Compliance Risk measures such as Beta, standard deviation, R-Squared, downside risk, Sharpe Ratio, Tracking error and VaR is used to capture market risk.Component VaR analysis is done to identify the range between most risky and least risky stock and to provide effective risk allocation to each stock within each fund.Regulatory RiskDetermination of appropriate measures and processes to ensure compliance with the requirements of SECP.Making sure that all business practices are in line with the company’s policies.Risk and ComplianceIdentification, assessment, controlling, monitoring and communication of significant risks such as market, liquidity, credit, operational and regulatory risk.Implementation of processes to ensure that risks can be identified and reported in a timely manner, resulting in an appropriate corrective action if necessary.Credit RiskIdentify credit risk in each debt instruments or other activity through effective credit evaluation, monitoring and ongoing credit risk management.Utilize appropriate, accurate and timely tools to measure credit risk.Set acceptable risk parameters for each investment that exposes the company to credit risk.Operational RiskPeople risk, process risk, systems risk and events risk are monitored to ensures safe, effective and timely operation of the business.
23 CONTACT US PICIC Asset Management Company Limited Risk Disclaimer: Retail SalesPICIC Asset Management Company Limited3rd Floor, PNSC Building,M.T. Khan Road, KarachiUAN: PICIC (74242)Customer Service: PICIC (74242)Fax:Web:Risk Disclaimer:All investments in mutual funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependant 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.