basic training manual-for retail sales personnel

8/12/2019 Basic Training Manual-For Retail Sales Personnel

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IN-HOUSE BASIC TRAINING

MANUAL

For Retail Sales Personnel

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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 themaximum returns with the minimum to ris.

&owever, the norm of the maret 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 enoughon 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.

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FINANCIAL MARETS

*inancial +arets are the maret places where people go to invest their savings in a

variety of assets.

*inancial +arets 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 +arets only, as +utual *unds in aistan are concerned with these two maretsonly.

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Ca!ital Mar"ets

a. E$%it& Mar"et

The 0'uity +aret, also nown as the toc +aret or the toc 0xchange, is the maret

where investors can buy shares of listed -ompanies.

2pon doing so, they become hareholders, 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 hares.

Primary Market

hen newshares are sold to the public by a Company4as in the case of an %nitial ublic

5ffering 6%578, through theirBankers to the Issue, it is nown as a transaction in therimary +aret.

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 ection ) of the %ncomeTax 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 therimary +aret.


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Secondary Market

hen there is a sale#purchase transaction of existingshares, between two investors,

through their Brokerson the toc +aret it is nown as a transaction in the econdary+aret.

Advantages of Secondary Market (as opposed to Primary Market)

" sub=ect to availability of a willing seller at the right price, any number of sharescan be bought

Disadvantages of Secondary Market (as opposed to Primary Market)

" buyer has to pay the +aret 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 priceand with a long-term6> years or

more7 view, an investor will be well"placed to ride out the volatility of the toc +aretand 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 theprices 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 theinflation 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.


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isks of investing in shares

%nvestment in shares carries riss that are considered higher than those in Debt ecurities

63ond, etc.7. The riss emanate from various factors that include, but are not limited to:

" 9olatility in share prices resulting from their dependence on maret sentiment,

peculative activity, demand and supply of the shares and the li'uidity in the maret

" -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 stries, frauds, etc. in the

company

" The possibility of defaults by participants or failure of the toc 0xchanges, the Depositories, the ettlements or the -learing ystem

" 3rea"down of law and order, war, natural disasters, etc.

" Any governmental or court order restraining payment of capital or income

" eniority 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 maret 6(lower loc$7

" Difficulty in finding a reliable 3roer willing to handle small transactions

" @is of such a 3roer giving wrong advice sometimes, deliberatelyB

" Cac of time, sill and pertinent research data to come to a worable analysis of

different

shares, i.e., their *air 9alue based on the company$s potentialfutureearnings. +any aperson 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.


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1. Bon' Mar"et

The 3ond +aret Debt +aret or *ixed %ncome +aret7 is the maret where participants

buy and sell Debt ecurities, usually in the form of 3onds.

3onds are issued by the !overnment 6!overnment 3onds7 as well as companies listed on

the toc 0xchange 6-orporate 3onds7 to raise money from the maret.

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& interestat 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 +arets.

Duration is the period that the %ssuer will tae 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 aistan 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 allpractical purposes, Hero. Therefore, the rate of interest paid on %3s is the lowest in the

maret in comparison to the rates paid on -orporate 3onds 6of similar tenors7.

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"!enchmarking

!overnment 3onds are used as (benchmars$ for determining the other interest rates

prevailing in the maret. %n its simplest form, it wors 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 therate of interest would be less 11? but more than J?.

3.4 Cor!orate Bon's

%n aistan, 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 tae on more

partners 6shareholders7 by issuing new shares, it would prefer issuing 3onds instead ofban 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 ratingto attract the general public to invest in the %ssue.

-ating

There are !overnment"approved -redit @ating Agencies who rate the 3onds, i.e., givegrades 6A, 3, 3", AAA, etc.7 indicating the company$s ability to repay the rincipal

amount andservice the debt 6ability to eep paying the promised interest7, based on

documentary evidence of the company$s financial soundness, business acumen, tracrecord, future prospects, etc.

"Pricing

ince a !overnment 3ond, guaranteed by the !overnment, carries#ero default risk

6sovereign ris7, 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.

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-isks of investing in "i#ed $ncome Sec%rities

5dd as it may sound, there areriss involved, even in investing in !overnment paper.

No in/est)ent is totall& ris"-0ree. The riss emanate from various factors that may

include, but are not limited to:

" Cre'it Ris"-redit @is comprises of Default @is, -redit pread @is and Downgrade @is.

0ach can have a negative impact on the value of a *ixed %ncome ecurity.

6i7 De0a%lt Ris" is the ris that the %ssuer will not be able to pay the

obligation, either on time or at all.

6ii7 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 theseinterest rates is called a K-redit preadL. -redit preads are based on

macro"economic events in the domestic or global financial marets. Anincrease in -redit pread will decrease the value of *ixed %ncome

ecurities.

6iii7 Do2n+ra'e Ris" is the ris that a -redit @ating Agency, such as A-@A

or M-@"9%, will reduce the -redit @ating of an %ssuer$s securities.

Downgrades in -redit @ating will decrease the value of such *ixed

%ncome ecurities.

" Interest Rate Ris"

*ixed %ncome ecurities pay fixed interest rates. hen interest rates rise, thevalue of an existing 3ond will fall because the -oupon @ate on that 3ond is lower

than the increased interest rates prevailing in the maret, 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.

" Oter Ris"s

" %ncrease in lending rates as a result of a change in the demand and supply of

li'uidity in the maret 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 maing prudent investments on their behalf, strictly in accordancewith 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. &'osedend "%nd

A -losed"end *und is a +utual *und that has a fixed pool of money which is collectedfrom 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 -ashDividends 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 toc 0xchange, through

a toc 3roer, at the prevailing price, =ust lie selling hares of a listed -ompany. Thesaid 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 .>? 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. penend "%nd

An 5pen"end *und does not have a fixed pool of money. The *und +anager iscommitted 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 thenewspapers 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

ame 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 dividingthe Eet Assets by the number of units issued and outstanding.

uppose the @epurchase rice is @s.#"" per unit and the *ront"end Coad is ).>?.hat is the 5ffer riceO

ince the *ront"end Coad is ).>? of the 5ffer rice, therefore:

5ffer rice: 61.?7 Cess: *ront"end Coad:FFF6" ).>?7

@epurchase rice 6EA97: 6 J.>?7

*rom the above, it is clear that the$epurchase %rice is &'") of the *ffer %rice.

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%f the 5ffer rice is (P$, then:

J.> x P Q @s.

1P Q x 1 Q @s.1.>

&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 ales Agents for finding investors for the *und, on an on"going basis.uch Agents can be 3ans, ecurities # 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+ tro%+ 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 taing 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, orhave 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 onesthat 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 thefuturegrowth and earning capacity of the company, amongst so many

other factors. The professional *und +anager is ade'uately e'uipped to do all this andmae the right investment decision.

"+iversificationhen an investor buys -ertificates or 2nits of a +utual *und, he automatically becomes

a directpart"owner of allthe 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 3roer on the toc 0xchange, an investormust buy, at least, a maretable 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 toc, Debt

or +oney +aret *unds.

--ess .o'ati'ity

3y investing in diversified assets, +utual *unds are, generally, less volatile than theaverage 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 *undenhances its ability to exploit investment and trading opportunities in the maret.

--i/%idity

For O!en-en' F%n'sAn 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 +aret and is not caught in the vicious

circle of lac of buyers and imposition of (lower locs$.

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 toc 0xchange, through a 3roer, at the

prevailing +aret 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 ection ) of the %ncome Tax 5rdinance,

)1, 6=ust lie 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 toc 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"3aning *inance -ompanies 60stablishmentand @egulation7 @ules, )/ 6Kthe @ulesL or KE3*- @ulesL7, E3* R notified 0ntities

@egulations 6)I7 -are controlled and regulated by the ecurities and 0xchange

-ommission of aistan 6Kthe -ommissionL or K0-L7. The -ommission$s control is sostringent that even an advertisement of a +utual *und has to be first approved by 0-

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 Trusteeforthe 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 taes all investment decisions within the defined %nvestment olicy, and6b7 does not tae 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 theinterests of the 2nitholders.

- ther Safeg%ards0!enefits

" 3efore a new +utual *und starts its operations, it must procure eed -apital of

@s.)> million against which the ubscribers are issued the *und$s -ertificates#2nits

at *ace 9alue, with the condition that they may not sell the same for at least . years.uch ubscribers are usually bans, 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 aistani 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!uantifiableexpenses.

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" 3roerage to the 3roers

" Cast, but not least, is the sheer convenienceof investing through a +utual *und all

business transacted under the (one window$ concept, with the greatest of ease. "

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

MCB Asset Management Company Limited (MCB AMC) is a wholly owned subsidiary of MCBBank Limited. The Company is incorporated in akistan under the Companies !rdinance" #$%&and licensed by the 'ecurities and change Commission of akistan to undertake AssetManagement 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 ManagementCompanies of akistan which has been assigned the Asset Manager rating of AM0 with (ositi+eoutlook) 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 ortfolioManagement ser+ices to high net-worth indi+iduals and businesses.

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

Mission

To achie+e leadership position in the asset management industry by offering an inno+ati+e andetensi+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"

etensi+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 terminvestors with a very low appetite for ris( while ta(ing into account capital security andliquidity considerations. It primarily invests in short term fi$ed return instruments and has nodirect e$posure to stoc( mar(et. MCB C! is ideal for both institutional and individual investorssee(ing an opportunity to invest their savings in a high yield asset which can also be encashedquic(ly.

Dividend and Bonus Payout

!und Announcement ate Cash Bonus

MCB)C! *+)un)+- +.+++ *.*+

MCB)C! /0)Apr)+ +.+++ *.*++

MCB)C! *+)un)+ +.+++ 0.120

MCB)C! /2)3ct)+ *.+++ +.+++

MCB)C! /0)May)+4 +.+++ *.+++

MCB)C! *+)un)+4 +.+++ *.5-*

MCB)C! )3ct)+4 +.+++ /.+++

MCB)C! /5)an)5+ +.+++ /.2++

MCB)C! /5)Apr)5+ +.+++ /.++

MCB-3C *+)un)5+ /.1541 /.1541

MCB)C! #%-!ct-#1 /.-+25 /.-+25

MCB)C! /)an)55 *.+++ *.+++

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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 AssetManagement Company %imited. &he ob'ective of MCB 6! is to provide long term capitalappreciation to investors. &he stoc( mar(et has provided better returns in longer term ascompared to other forms of investments. Based on the investment ob'ective and investmentstrategy of the MCB ynamic 6toc( !und, is to provide long term capital gains. &hus theinvestments 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 highlycorrelated 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.



MCB)6!MCBynamic 6toc(!und "MCB6!#:

*+)un)+- 2.+++ /+.+++

MCB)6! *+)un)5+ +.+++ 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 MCBAMC which allows +)5++; e$posures into debt or equity as per mar(et conditions and discretionof the fund manager. &he ob'ective of the fund is to provide investors with a high absolutereturn. MCB A! offers superior returns relative to stoc( mar(et at a higher ris(. It also allowsregular rebalancing to maintain the correct ris(


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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 competitivereturns from a low ris( profile of short duration assets while maintaining high liquidity. MCBCM3> invests the ma'or portion of net assets in short term money mar(et instruments with ama$imum time to maturity of si$ months and weighted a+erage maturity up to $1 days. &heremaining net assets are invested in short term deposits to generate better returns &his isintended to reduce ris( while maintaining liquidity.The main areas of in+estment would beTreasury Bills" Cash and ,ear-Cash *nstruments" Money market placements" Certificate of3eposits (C!37s)" Certificate of Musharika (C!M7s)" Term 3eposits (T3/7s)" Commercial apersetc.



MCB)CM3> /5)an)5+ +.+++ *.*1/

MCB)CM3> /5)Apr)5+ +.+++ /.0+4

MCB)CM3> *+)un)5+ +.+++ 5.4+

MCB)CM3> 5)3ct)5+ *.5025 *.5025

MCB)CM3> /)an)55 *.5*55 *.5*55

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