Mutual Fund Asset Allocation
Pakistan Capital Market Fund
The objective of the Fund is to provide investors a mix of income and capital growth over medium to long term from equity and debt investments.
Pakistan Capital Market Fund (A Balanced Fund) (referred to as PCM) is an open end balanced fund that invests in a range of asset classes such as equity and debt in Pakistani market.
The asset allocation to equities and debt is made on the basis of relative attractiveness of each asset class. The investment process is driven by fundamental research. For equities investment, fundamental outlook of sectors/companies and DCF (discounted cash flow) valuations are the primary factors in sectors’ allocation and stock selection. For debt investment, interest rate outlook is the key determining factor and allocation to this segment is increased when the yields are comparatively higher compare to the total returns on equities. Investment is made in corporate bonds (investment grade) and government bonds. Cash is kept in deposits with highly rated banks.
PCM is a long only fund and cannot undertake leveraged investments. Under the NBFC Rules, it is only allowed to borrow up to 15% of net assets for up to 90 days to meet redemption needs.
MCB Bank Dynamic Allocation Fund
MCB Bank Dynamic Allocation Fund is an asset allocation fund and its objective is to aim at providing a high absolute return by investing in equity and debt markets.
MCB Bank DAF shifts exposures in to debt or equity as per market conditions and discretion of the Management Company. The fund may invest up to 100% in equity securities or up to 100% in debt securities according to market conditions.