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IN-HOUSE BASIC TRAINING MANUAL

For Retail Sales Personnel

SAVINGS: During the barter system, when goods and services were traded, savings were possible by putting away precious metals and gems; there was no inflation to worry about. INVESTMENT: As trade became more complex inflation became an issue. To maintain purchasing power, people had to invest their savings to eep ahead of inflation. NEED TO SAVE !enerally, people want to save for: " " " " " their own education#marriages their children$s education#marriages the rainy day their own old age their heirs to inherit

%deally, they would want to put their savings in investments that would fetch them the maximum returns with the minimum to ris . &owever, the norm of the mar et is 'uite the opposite, namely: The higher the risk, the higher the reward. %n any case, while balancing the (ris #reward$ ratio, investors would want to earn enough on their investments to, at least, beat the inflation rate, so that the purchasing power of their savings is not diminished with the passage of time.

FINANCIAL MAR ETS *inancial +ar ets are the mar et places where people go to invest their savings in a variety of assets. *inancial +ar ets comprise of: " " " " Ca!ital Mar"ets #E$%it& Mar"ets an' Bon' Mar"ets( Mone& Mar"ets Co))o'ities Mar"ets C%rren*& Mar"ets #Forei+n E,*-an+e(

,e shall examine the salient features of various asset classes available in the -apital and +oney +ar ets only, as +utual *unds in .a istan are concerned with these two mar ets only.

Ca!ital Mar"ets a. E$%it& Mar"et The 0'uity +ar et, also nown as the 1toc +ar et or the 1toc 0xchange, is the mar et where investors can buy shares of listed -ompanies. 2pon doing so, they become 1hareholders, i.e., part"owners of those companies and are entitled to the profits of the companies, which are distributed to them in the shape of -ash Dividend or 3onus 1hares. Primary Market. ,hen new shares are sold to the public by a Company 4as in the case of an %nitial .ublic 5ffering 6%.578, through their Bankers to the Issue, it is nown as a transaction in the .rimary +ar et. Advantages of Primary Market (as opposed to Secondary Market). " " " shares are, normally, offered at their *ace 9alue Tax -redit can be claimed on the invested amount under 1ection :) of the %ncome Tax 5rdinance, );;1 there is no Transfer *ee on such shares allotted to the subscriber

Disadvantages of Primary Market (as opposed to Secondary Market). %f the %ssue is oversubscribed, the investors will receive any shares only if they succeed in the balloting. &ence, one can, normally, expect to buy only a small 'uantity of shares through the .rimary +ar et.

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Secondary Market. ,hen there is a sale#purchase transaction of existing shares, between two investors, through their Brokers on the 1toc +ar et it is nown as a transaction in the 1econdary +ar et. Advantages of Secondary Market (as opposed to Primary Market). " sub=ect to availability of a willing seller at the right price, any number of shares can be bought

Disadvantages of Secondary Market (as opposed to Primary Market). " " " buyer has to pay the +ar et .rice of the share, which is determined on the basis of demand and supply Tax -redit is not available on such transactions the buyer has to pay Transfer *ee on every such share he buys

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Advantages of investing in shares. " Better ret%rns: . 3y investing in the right kind of shares, at the right price and with a long-term 6> years or more7 view, an investor will be well"placed to ride out the volatility of the 1toc +ar et and can expect better returns than those being given by other Asset -lasses 63onds, etc.7. This is so because, as inflation rates rise, the companies increase the prices of their products, thereby ensuring that their profits are not adversely affected to any large extent. %pso facto, the returns they would give to their shareholders would be higher than the inflation rate. " Ta, a'/anta+es. Dividends on shares of listed companies are taxed, in the hands of an individual, at the rate of 1;? which is deemed to be his final tax liability on that particular income.

Tax -redit available on subscription of new shares issued through %.5.

isks of investing in shares. %nvestment in shares carries ris s that are considered higher than those in Debt 1ecurities 63ond, etc.7. The ris s emanate from various factors that include, but are not limited to: " 9olatility in share prices resulting from their dependence on mar et sentiment, 1peculative activity, demand and supply of the shares and the li'uidity in the mar et " -hange in business cycles affecting the business of the investee company " -hange in business circumstances of the investee company, its business sector, industry or the economy of the country in general " +ismanagement of the investee company, third party liability, whether through class action or otherwise, or occurrence of other events, such as stri es, frauds, etc. in the company " The possibility of defaults by participants or failure of the 1toc 0xchanges, the Depositories, the 1ettlements or the -learing 1ystem " 3rea "down of law and order, war, natural disasters, etc. " Any governmental or court order restraining payment of capital or income " 1eniority of rights of creditors over shareholders, in the event of winding"up of the investee company. *urthermore, a retail investor will face the following problems: " Difficulty in selling one$s shares for days, in a falling mar et 6(lower loc $7 " Difficulty in finding a reliable 3ro er willing to handle small transactions " @is of such a 3ro er giving wrong advice A sometimes, deliberatelyB " Cac of time, s ill and pertinent research data to come to a wor able analysis of different shares, i.e., their *air 9alue based on the company$s potential future earnings. +any a person has been hurt by basing his investment decision on the past trac "record of pay" outs made by a company.

REMEMBER. Past !er0or)an*e is no +%arantee o0 0%t%re !a&-o%ts.

1. Bon' Mar"et The 3ond +ar et Debt +ar et or *ixed %ncome +ar et7 is the mar et where participants buy and sell Debt 1ecurities, usually in the form of 3onds. 3onds are issued by the !overnment 6!overnment 3onds7 as well as companies listed on the 1toc 0xchange 6-orporate 3onds7 to raise money from the mar et. 0ssentially, a 3ond is a paper 6 an instrument7 whereby the %ssuer 1orro2s, say, the *ace 9alue 6Eominal 9alue7 of the 3ond from the buyer against his 6the %ssuer$s7 *o))it)ent to re!a& the same on specified date6s7 AED to !a& interest at a 0i,e' rate, specified therein, as well as the 0re$%en*& o0 s%*- !a&)ents 6usually :"monthly7. This is the simplest form of a 3ond. 5ther forms are 3onds that pay interest at /aria1le rates. %n such a case, the %ssuer commits to pay interest at FFF percent above, say, the :"month G%35@ rate. 3. Lon+ Ter) Bon's. 3onds of long"term durations 6> years or more7 are transacted in the -apital +ar ets. Duration is the period that the %ssuer will ta e to mature, i.e., to repay the .rincipal amount while paying the interest at the agreed rate and fre'uency during that period. The longer the duration, the higher the risk as well as the rate of returns (interest rate , other things being e!ual" 3.3 Go/ern)ent Bon's. %n .a istan these are nown as Pa"istan In/est)ent Bon's #PIBs(. They are issued by the *ederal !overnment which guarantees the repayment of the .rincipal amount as well as the payment of the interest at the agreed rate and fre'uency. " Pricing The ris of the !overnment defaulting on payment of the .rincipal or interest is, for all practical purposes, Hero. Therefore, the rate of interest paid on .%3s is the lowest in the mar et in comparison to the rates paid on -orporate 3onds 6of similar tenors7.

" !enchmarking !overnment 3onds are used as (benchmar s$ for determining the other interest rates prevailing in the mar et. %n its simplest form, it wor s this way: %f the interest rate on a >"year .%3 is J? p.a., then the interest rate on an KA"@atedL >"year Term *inance -ertificate 6T*-7 may be, say, 11?, whereas on an KAA"@atedL the rate of interest would be less 11? but more than J?. 3.4 Cor!orate Bon's. %n .a istan, these are nown as Ter) Finan*e Certi0i*ates #TFCs(. %f a company is in need of long"term funds and its owners do not want to ta e on more partners 6shareholders7 by issuing new shares, it would prefer issuing 3onds instead of ban borrowing, because: " it would, possibly, pay a lower interest rate on the 3ond than to the ban for a loan " it does not have to create a -harge on its assets to secure its 3ond, .@59%D0D T&AT its trac record and future prospects are such that it would get the !overnment approvals and good rating to attract the general public to invest in the %ssue. - ating There are !overnment"approved -redit @ating Agencies who rate the 3onds, i.e., give grades 6A, 3, 3", AAA, etc.7 indicating the company$s ability to repay the .rincipal amount and service the debt 6ability to eep paying the promised interest7, based on documentary evidence of the company$s financial soundness, business acumen, trac record, future prospects, etc. " Pricing 1ince a !overnment 3ond, guaranteed by the !overnment, carries #ero default risk 6sovereign ris 7, a -orporate 3ond would have to pay a higher interest rate than a !overnment 3ond of the same tenor. %t goes without saying, then, that an A"rated 3ond would, obviously, have to pay a lower interest rate than a 3"rated 3ond.

*. Mone& Mar"et 3onds of short"term durations 6upto 1 year7 are transacted in the +oney +ar et. Treasury 3ills 6T"3ills or T3s7: %n .a istan, T"3ills are issued by the 1tate 3an of .a istan 613.7, with the !overnment$s guarantee, for /"month, :"month and 1"year tenors. 2nli e 3onds, which are issued at *ace 9alue 6at par7 and interest is paid periodically thereon, T"3ills are issued below par and no interest is paid periodically. %nstead, the full par value is paid on maturity date. The difference between the *ace 9alue and the lower .urchase 9alue represents the interest earned by the buyer 6investor7. 0.g., if a 1"year T"3ill of @s.1;; *ace 9alue is purchased for @s.J; the difference of @s.1; wor s out to a yield of 11.11? p.a. over a period of 1 year. "Pricing and !enchmarking 3eing bac ed by !overnment guarantee, the same principles apply as those discussed under !overnment 3onds. 5f course, being of short"term tenors, T"3ills pay lesser rates of interest and are less ris y than .%3s. REMEMBER. T-e lon+er t-e '%ration o0 a Bon'5 t-e ris"ier t-e in/est)ent5 '%e to t-e i)!ossi1ilit& o0 !re'i*tin+ t-e Interest6In0lation Rate o/er a lon+ !erio' o0 ti)e. The instruments discussed above 63onds and T"3ills7 are also nown as *ixed %ncome 1ecurities.

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- isks of investing in "i#ed $ncome Sec%rities 5dd as it may sound, there are ris s involved, even in investing in !overnment paper. No in/est)ent is totall& ris"-0ree. The ris s emanate from various factors that may include, but are not limited to: " Cre'it Ris". -redit @is comprises of Default @is , -redit 1pread @is and Downgrade @is . 0ach can have a negative impact on the value of a *ixed %ncome 1ecurity. 6i7 6ii7 De0a%lt Ris" is the ris that the %ssuer will not be able to pay the obligation, either on time or at all. Cre'it S!rea' Ris" is the ris that there will be an increase in the difference between the interest rate of an %ssuer$s 3ond and the interest rate of a 3ond that is considered to have little associated ris 6such as a !overnment guaranteed 3ond or T"3ill7. The difference between these interest rates is called a K-redit 1preadL. -redit 1preads are based on macro"economic events in the domestic or global financial mar ets. An increase in -redit 1pread will decrease the value of *ixed %ncome 1ecurities. Do2n+ra'e Ris" is the ris that a -redit @ating Agency, such as .A-@A or M-@"9%1, will reduce the -redit @ating of an %ssuer$s securities. Downgrades in -redit @ating will decrease the value of such *ixed %ncome 1ecurities.

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Interest Rate Ris". *ixed %ncome 1ecurities pay fixed interest rates. ,hen interest rates rise, the value of an existing 3ond will fall because the -oupon @ate on that 3ond is lower than the increased interest rates prevailing in the mar et, and vice versa. Go/ern)ent Re+%lation Ris". The value of securities may be affected due to change in !overnment regulations, policies, taxation laws, etc., or due to any !overnmental or -ourt 5rders restraining payment of capital, principal or income. Ot-er Ris"s. " %ncrease in lending rates as a result of a change in the demand and supply of li'uidity in the mar et or on account of increase in the underlying inflation rate. " -hanges in 0xchange @ates " 3rea "down of law and order, war, natural disasters, etc.

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7HAT ARE MUTUAL FUNDS8 A +utual *und is a pool of money belonging to a group of investors, who entrust it to a *und +anager for ma ing prudent investments on their behalf, strictly in accordance with the %nvestment .olicy laid down in the -onstitutive Documents of the *und. The ownership of the *und .roperty vests in the investors and the *und +anager is entitled only to certain fees, paid by the *und, i.e., by the investors, for managing the *und. 1. Types of +utual *unds: There are two types of +utual *unds, viH.: a. Close'-en' F%n' 1. O!en-en' F%n' a. &'osed(end "%nd. A -losed"end *und is a +utual *und that has a fixed pool of money which is collected from the investors when the *und is set up 4%nitial .ublic 5ffering 6%.578. Thereafter, the *und +anager invests the money in accordance with the declared %nvestment .olicy of the *und and distributes returns to the investors, from time to time, in the shape of -ash Dividends or 3onus -ertificates. 0ach share of the *und is called a -ertificate and its *und +anager is also nown as the %nvestment Advisor. %f an investor wants to sell his -ertificates, he can do so on the 1toc 0xchange, through a 1toc 3ro er, at the prevailing price, =ust li e selling 1hares of a listed -ompany. The said price, of course, is determined by the demand and supply of those -ertificates at that given time. F%n'9s Ta, Lia1ilit&. The *und does not incur any tax liability if it distributes at least J;? of its income amongst the investors, by way of Dividends or 3onus -ertificates. In/estor9s Ta, Lia1ilit&. " 1;? ,ithholding Tax payable on -ash Dividends. " Tax on -apital !ains: up to six months 1;?, more than six months D.>? and after year " Nero 6if there is also gain on %nvestment7 F%n' Mana+er9s Fee. The *und +anager is entitled to a +anagement *ee, ranging from >? to )? of the funds under management, to be paid to him out of the *und$s income, for all the wor done and expenses incurred by him 6the *und +anager7 in managing the *und.

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1. )pen(end "%nd. An 5pen"end *und does not have a fixed pool of money. The *und +anager is committed to continuously issue 2nits to new investors at the 5ffer .rice and buy"bac 2nits from (old$ investors at the @epurchase .rice 6a. .a. @edemption .rice7. The *und is set up as a Trust, with an independent Trustee, who has custody of the assets of the Trust. 0ach share of the *und is called a 2nit and its *und +anager is nown as the Asset +anagement -ompany 6A+-7. The *und, itself, is called a 2nit Trust. Net Asset Val%e #NAV(. As at the close of every day the A+- calculates the Eet Assets of the *und which are divided by the then issued and outstanding 2nits to arrive at the Eet Asset 9alue 6EA97 of each 2nit, which is also the @epurchase .rice applicable that day. O00er Pri*e. This is the price at which the *und sells its 2nits to the investors. %t is published in the newspapers as well as posted on the A+-$s website everyday. Re!%r*-ase Pri*e. This is the price at which the *und buys"bac its 2nits from the 2nit holders and, in it is the same as the EA9 each day. F%n' Mana+er9s Fees. 1ame as explained under K-losed"end *undL above. - Front-en' Loa'. *ront"end Coad is the difference between the 5ffer .rice and the @epurchase .rice, the 5ffer .rice, naturally, being higher than the @epurchase .rice. The *ront"end Coad is expressed as a percentage of the 5ffer .rice. Therefore, if the *ront"end Coad is ).>?, it means that it is ).>? of the 5ffer .rice. As we have seen earlier, the @epurchase .rice 6EA97 is calculated everyday by dividing the Eet Assets by the number of units issued and outstanding. 1uppose the @epurchase .rice is @s.:;#"" per unit and the *ront"end Coad is ).>?. ,hat is the 5ffer .riceO 1ince the *ront"end Coad is ).>? of the 5ffer .rice, therefore: 5ffer .rice: 61;;.;;?7 Cess: *ront"end Coad:FFF6" ).>;?7 @epurchase .rice 6EA97: 6 JD.>;?7 *rom the above, it is clear that the $epurchase %rice is &'"() of the *ffer %rice. 1/

%f the 5ffer .rice is (P$, then: JD.> x P Q @s.:; 1;; P Q :; x 1;; Q @s.:1.>< JD.> &ence, 5ffer .rice is @s.:1.>< and *ront"end Coad is @s.1.>< 6).>? of 5ffer .rice7. The *ront"end Coad, belonging to the A+-, is used by it 6the A+-7 to pay commissions to 1ales Agents for finding investors for the *und, on an on"going basis. 1uch Agents can be 3an s, 1ecurities # Distribution -ompanies or individuals. " Ba*"-en' Loa'. This is a percentage deducted from the @epurchase .rice when redeeming 2nits. -Ta, Lia1ilit&. The *und$s and the %nvestor$s Tax Ciability as well as Tax 0xemptions are the same as those explained under K-losed"end *undL above. 4. Bene0its o0 in/estin+ t-ro%+- M%t%al F%n's. A +utual *und enables an investor to benefit from the collective strength of the group 6pool7. The benefits include: - Professiona' Management* The A+- employs a whole team of 'ualified @esearchers and Analysts to assist the %nvestment -ommittee in ta ing competent and timely investment decisions. The data, -ompiled and used by these professionals in analyHing potential investee companies, is simply not available to the ordinary investor, who, in any case, may not be 'ualified, or have the time, to analyHe such data even if it was available to him. Due to this reason, most people with money do not invest in shares and most of the ones that do, do so on the basis of hearsay, rumours, (tips$, (herd instinct$ or on the basis of a -ompany$s past record. %t goes without saying that investing on such basis is extremely dangerous, leading to heavy losses. As we have seen earlier, the tric is to buy a share at the right price, which entails determining the future growth and earning capacity of the company, amongst so many other factors. The professional *und +anager is ade'uately e'uipped to do all this and ma e the right investment decision. " +iversification, ,hen an investor buys -ertificates or 2nits of a +utual *und, he automatically becomes a direct part"owner of all the shares owned by the *und 6proportionate to his investment amount7, enabling him to adhere to the saying: :Don9t !%t all &o%r e++s in one 1as"et:.

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- Sma'' Amo%nts of $nvestment. ,hen investing directly in shares, through a 3ro er on the 1toc 0xchange, an investor must buy, at least, a mar etable lot of any scrip, which could entail a larger outlay of funds than available with him. Through a +utual *und, he can invest as little as @s.>,;;;#" This will also enable him to achieve (averaging"out$ his purchase price. - Mi# +n, Match isks and ewards. Depending on his ris appetite, an investor can invest his money in a mix of 1toc , Debt or +oney +ar et *unds. - -ess .o'ati'ity. 3y investing in diversified assets, +utual *unds are, generally, less volatile than the average 0'uities portfolio of an individual investor. - Advantage of h%ge "%nds. ,ith huge funds under its management, the reach and dimension of a +utual *und enhances its ability to exploit investment and trading opportunities in the mar et. - -i/%idity. For O!en-en' F%n's. An investor can, at any time, buy or sell 2nits at the then applicable 5ffer#@epurchase 6@edemption7 .rice. @edemption amount is deposited in his 3an Account. This means that he is not at the mercy of the +ar et and is not caught in the vicious circle of lac of buyers and imposition of (lower loc s$. For Close'-en' F%n's. This advantage is not available to holders of -ertificates of -losed"end *unds, where the -ertificates have to be bought and sold at the 1toc 0xchange, through a 3ro er, at the prevailing +ar et .rice, depending upon the availability of sellers#buyers. - Ta#ation !enefits. " 3ecause new units are issued every time an investment is made in 5pen"end *unds, such investments en=oy a Tax"brea under 1ection :) of the %ncome Tax 5rdinance, );;1, 6=ust li e the Tax"brea en=oyed on investments in new shares of -ompanies7, .@59%D0D T&AT the *und is listed on at least one of the 1toc 0xchanges AED such investment is not encashed for at least one year

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- eg%'atory Protection. All +utual *unds are set"up under the Eon"3an ing *inance -ompanies 60stablishment and @egulation7 @ules, );;/ 6Kthe @ulesL or KE3*- @ulesL7, E3* R notified 0ntities @egulations 6);;I7 -are controlled and regulated by the 1ecurities and 0xchange -ommission of .a istan 6Kthe -ommissionL or K10-.L7. The -ommission$s control is so stringent that even an advertisement of a +utual *und has to be first approved by 10-. before it can be printed. - Protection thro%gh Tr%stee. All +utual *unds must appoint a Trustee which can be a 3an or a -entral Depository -ompany. All the *und$s moveable and immoveable assets are vested in the Trustee for the benefit of the -nitholders, i.e., the beneficial ownership of the assets of the *und vests in the 2nitholders. The Trustee is obligated to ensure that the *und +anager: 6a7 ta es all investment decisions within the defined %nvestment .olicy, and 6b7 does not ta e any action that is not in accordance with the provisions of the Trust Deed, the 5ffering Document or the @ules, which are watertight in protecting the interests of the 2nitholders. - )ther Safeg%ards0!enefits. " 3efore a new +utual *und starts its operations, it must procure 1eed -apital of @s.)>; million against which the 1ubscribers are issued the *und$s -ertificates#2nits at *ace 9alue, with the condition that they may not sell the same for at least . years. 1uch 1ubscribers are usually ban s, companies, high net worth individuals, etc., who are willing to get their money stuc for ) years because they have confidence in the competence and integrity of the *und +anager and anticipate good returns. " 2nder .a istani law, the income of all +utual *unds is tax"exempt, provided they distribute at least J;? of such income amongst the -ertificate#2nitholders by way of -ash Dividends or 3onus -ertificates#2nits. " The earnings of the *und are not affected by any un!uantifiable expenses. All expenses, incurred in connection with managing the *und, 6e.g., salaries, per'uisites, rents, printing, advertising, etc.7 are borne by the *und +anager 6A+-7. The main expenses payable by the *und are: " +anagement *ee to the A+" Trustee *ee to the Trustee " Audit *ee to the Auditors " 3ro erage to the 3ro ers " Cast, but not least, is the sheer convenience of investing through a +utual *und A all business transacted under the (one window$ concept, with the greatest of ease. " 1:

Additiona' 1enefits when investing thro%gh M&!(AM&


MCB Asset Management Company Limited (MCB AMC) is a wholly owned subsidiary of MCB Bank Limited. The Company is incorporated in akistan under the Companies !rdinance" #$%& and licensed by the 'ecurities and ()change Commission of akistan to undertake Asset Management and *n+estment Ad+isory 'er+ices under the ,on-Banking .inance Companies ((stablishment and /egulation) /ules 0112. MCB AMC is one of the Asset Management Companies of akistan which has been assigned the Asset Manager rating of AM0 with ( ositi+e outlook) by akistan Credit /ating Agency ( AC/A). MCB AMC is also licensed by the 'ecurities and ()change Commission of akistan ('(C ) to pro+ide *n+estment Ad+isory 'er+ices in akistan. And offer both 3iscretionary and ,on-3iscretionary ortfolio Management ser+ices to high net-worth indi+iduals and businesses.

At MCB Asset Management we aim to understand our investors needs better and respect what they value. In line with our vision to preserve and enhance the wealth of individuals and corporations, we continue to offer a wide range of products and quality investment advice tailored to our investors needs.

Mission To achie+e leadership position in the asset management industry by offering an inno+ati+e and e)tensi+e portfolio of in+estment products. 4e aim to pro+ide superior returns to our clients and help them manage their money more efficiently through our dedicated professional staff" e)tensi+e distribution network and state of the art technology platform. Vision To de+elop trustworthy relationships with our in+estors by working closely with them to understand their financial re5uirements and help them in achie+ing their long-term ob6ecti+es and short-term needs through our ad+isory and fund management ser+ices.

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MUTUAL FUNDS MANAGED B; MCB-AMC

MCB Dynamic Cash Fund:


MCB ynamic Cash !und "MCB C!# is a fi$ed income fund managed by MCB Asset Management Company %imited. &he ob'ective of MCB C! is to provide attractive returns to short term investors with a very low appetite for ris( while ta(ing into account capital security and liquidity considerations. It primarily invests in short term fi$ed return instruments and has no direct e$posure to stoc( mar(et. MCB C! is ideal for both institutional and individual investors see(ing an opportunity to invest their savings in a high yield asset which can also be encashed quic(ly.

Dividend and Bonus Payout


!und MCB) C! MCB) C! MCB) C! MCB) C! MCB) C! MCB) C! MCB) C! MCB) C! MCB) C! MCB-3C. MCB) C! MCB) C! Announcement ate Cash *+),un)+/0)Apr)+. *+),un)+. /2)3ct)+. /0)May)+4 *+),un)+4 .)3ct)+4 /5),an)5+ /5)Apr)5+ *+),un)5+ #%-!ct-#1 /.),an)55 +.+++ +.+++ +.+++ *.+++ +.+++ +.+++ +.+++ +.+++ +.+++ Bonus *.*.+ *.*++ 0.120 +.+++ *.+++ *.5-* /.+++ /.2++ /..++

/.1541 /.1541 /.-+25 /.-+25 *.+++ *.+++

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MCB Dynamic Stock Fund (MCB DSF):


MCB ynamic 6toc( !und "MCB 6!# is an open)end stoc( mar(et fund managed by MCB Asset Management Company %imited. &he ob'ective of MCB 6! is to provide long term capital appreciation to investors. &he stoc( mar(et has provided better returns in longer term as compared to other forms of investments. Based on the investment ob'ective and investment strategy of the MCB ynamic 6toc( !und, is to provide long term capital gains. &hus the investments in MCB 6! are suitable for long)term investors. &he benchmar( of MCB 6! is 768 *+ Inde$. Being a pure equity fund, the performance is highly correlated with the performance of stoc( mar(et. 9istory tells us that such investors en'oy better returns over a period of time than offered by conventional deposit accounts and savings schemes.

Dividend and Bonus Payout


!und Announcement ate Cash MCB) 6! MCB ynamic 6toc( *+),un)+2.+++ !und "MCB 6!#: MCB) 6! *+),un)5+ +.+++ Bonus /+.+++ 5..00+

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MCB Dynamic Allocation Fund (MCB DAF)


MCB

ynamic Allocation !und "MCB A!# is an open)end asset allocation fund managed by MCB AMC which allows +)5++; e$posures into debt or equity as per mar(et conditions and discretion of the fund manager. &he ob'ective of the fund is to provide investors with a high absolute return. MCB A! offers superior returns relative to stoc( mar(et at a higher ris(. It also allows regular rebalancing to maintain the correct ris(<return characteristics over time. =ith MCB A! any one can choose and monitor one fund and reap the benefits of multiple investments.

Dividend and Bonus Payout


!und MCB) A! Announcement ate Cash *+),un)5+ +.+++ Bonus 5+.+.4

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MCB Cash Management Optimizer Fund (MCB CMOP)


MCB ynamic Cash !und "MCB C!# is an open)end money mar(et fund managed by MCB Asset Management Company %imited. &he ob'ective of the fund is to provide unit holders competitive returns from a low ris( profile of short duration assets while maintaining high liquidity. MCB CM3> invests the ma'or portion of net assets in short term money mar(et instruments with a ma$imum time to maturity of si$ months and weighted a+erage maturity up to $1 days. &he remaining net assets are invested in short term deposits to generate better returns &his is intended to reduce ris( while maintaining liquidity. The main areas of in+estment would be Treasury Bills" Cash and ,ear-Cash *nstruments" Money market placements" Certificate of 3eposits (C!37s)" Certificate of Musharika (C!M7s)" Term 3eposits (T3/7s)" Commercial apers etc.

Dividend and Bonus Payout


!und MCB)CM3> MCB)CM3> MCB)CM3> MCB)CM3> MCB)CM3> Announcement ate Cash /5),an)5+ /5)Apr)5+ *+),un)5+ 5.)3ct)5+ /.),an)55 +.+++ +.+++ +.+++ Bonus *.*1/ /.0+4 5..4+

*.5025 *.5025 *.5*55 *.5*55

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