BMA Asset Management Company Limited (BMA FUNDS) established in 1992 is a Non Banking Finance Company (NBFC) and a wholly owned subsidiary of BMA Capital Management Limited. The firm is an approved Investment Advisor and Asset Manager by the Securities and Exchange Commission of Pakistan (SECP) with a proven track record and intimate knowledge of Pakistan's capital markets over the past 15 years. BMA Capital is the parent company of BMA FUNDS and a leading investment firm involved in the domestic capital markets, investment banking, asset management and private equity. In June 2004, BMA entered into a joint venture with Abraaj Capital, the leading private equity firm in the Middle East and have launched Pakistan's first private equity fund of US $300 million for inward investment in Pakistan.

1. Report
Information on BMA funds
Prepared by:
Sumaira Talpur
Submitted on:
8th
October 2007

2. BRIEF HISTORY OF BMA FUNDS:
BMA Asset Management Company Limited (BMA FUNDS) established in 1992 is a
Non Banking Finance Company (NBFC) and a wholly owned subsidiary of BMA
Capital Management Limited. The firm is an approved Investment Advisor and Asset
Manager by the Securities and Exchange Commission of Pakistan (SECP) with a proven
track record and intimate knowledge of Pakistan's capital markets over the past 15 years.
BMA Capital is the parent company of BMA FUNDS and a leading investment firm
involved in the domestic capital markets, investment banking, asset management and
private equity. In June 2004, BMA entered into a joint venture with Abraaj Capital, the
leading private equity firm in the Middle East and have launched Pakistan's first private
equity fund of US $300 million for inward investment in Pakistan.
BMA is one of a few select firms in Pakistan, with a time-tested track record of managing
investments in the capital markets of Pakistan. BMA managed the Security Stock Fund
Limited from 1994 to 2000, during which timeframe the Fund provided substantially high
absolute returns and relatively high performance compared to the Morgan Stanley
Pakistan Fund and KSE 100 Index. The Security Stock Fund Limited was a listed closed
end equity fund launched by BMA Capital in July 1994 and sold in July 2000. The Fund
provided a total return of over 40% from 1994 to 2000 while return for the KSE 100
Index was negative 20% during the same the period. The time period concerned
witnessed some of the most difficult and turbulent times in the history of Pakistani capital
markets. BMA is advising on funds of over Rs. 3 billion for a host of corporate and
retirement fund clients. BMA FUNDS, the Principal Fund Manager, has a team of three
fund managers and three research analysts responsible for investment decisions. The team
members are responsible for specific sectors and carry out in depth propriety research
involving some 50 company visits a year and financial statements analysis going back 5
years. The team has a database tracking the results of the stock universe on a quarterly
bases that helps in generating new investment ideas. These ideas are put forward by
individual team members and discussed within an investment committee on a daily and
weekly basis. Our investment team has a combined experience of over fifty years in
Pakistani and international markets with a deep understanding of Pakistani companies.

3. WHAT IS A MUTUAL FUND?
A mutual fund is simply an investment vehicle that allows a group of investors to pool
their money together with a predetermined investment strategy. The mutual fund has a
fund manager who is responsible for investing the pooled money into specific securities
(usually stocks or bonds). When you invest in a mutual fund, you are buying shares (or
portions) of the mutual fund and become a shareholder of the fund.
Mutual funds are one of the best investments ever created because they are very cost
efficient and very easy to invest in (you don't have to figure out which stocks to buy).
By pooling money together in a mutual fund, investors can purchase stocks or bonds with
much lower trading costs than if they tried to do it on their own. But the biggest
advantage to mutual funds is diversification.
WHAT IS NET ASSET VALUE (NAV)?
Definition: The Net Asset Value, or NAV, is simply a measure of the current rupee value
of one unit of a mutual fund. It's the fund's assets minus its liabilities divided by the
number of outstanding shares.
NAVs are calculated at the end of each trading day. If the NAV increases, then it means
the value of your holdings increase (if you are a shareholder).
TYPES OF MUTUAL FUNDS:
There are two types of mutual funds:
1- CLOSE-ENDED FUND:
A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is
open for subscription only during a specified period at the time of launch of the scheme.
Investors can invest in the scheme at the time of the initial public issue and thereafter
they can buy or sell the units of the scheme on the stock exchanges where the units are
listed. These mutual funds schemes disclose NAV generally on daily basis.
2- OPEN-ENDED FUND:
An open-ended fund or scheme is one that is available for subscription and repurchase on
a continuous basis. These schemes do not have a fixed maturity period. Investors can
conveniently buy and sell units at Net Asset Value (NAV) related prices which are
declared on a daily basis. The key feature of open-end schemes is liquidity.

4. MUTUAL FUNDS SCHEMES AT BMA FUNDS:
There are two schemes available at BMA funds:
1- BMA Principal Guaranteed Fund I (BPGF I)
Investment Objective:
BMA Principal Guaranteed Fund I (BPGF I) is a closed-end scheme with a two year
maturity period. The investment objective of BPGF I is to guarantee the 100% Of
principal investment of investors and to simultaneously ensure a high level of total return
relative to mean returns from a fixed income asset class. This is the first principal
guarantee fund to be structured in Pakistan’s capital market history and listed on the
Karachi Stock Exchange.
Investment Strategy:
After ensuring that the Principal Amount is guaranteed through 80 % investments in
Fixed Income Instruments, the remaining 20% funds will be invested in equities in order
to generate higher returns in the form of stock dividends, cash dividends and capital gains
to be passed onto investors. Fixed income investments would follow a strict criterion of
placing funds only in quality instruments of an investment grade rated financial
institutions. Equity portfolio would involve exposure in 20-25 quality stocks that are
selected through a rigorous investment process.
Equity Portfolio Sector Allocation
Oil & Gas Exploration 37%
Commercial Banks 23%
Jute 11%
Engineering 11%
Fertilizer 9%
Power Generation 2%
Automobile Assembler 2%
Others 5%
Total 100%

5. Other Details:
Type Closed-end Fund
Trustee CDC
Inception Date December 24, 2006
Asset (at inception) PKR 100m
Assets (May 31, 2007) PKR 106.28m
NAV (at inception) 10.00
NAV (May 31, 2007) 10.63
Management Fee 2%
Sine Inception Return 6.3%
Beta 0.17
Volatility since Inception 3.5%
2- BMA Chundrigar Road Savings Fund (BCSF)
Fund Objective
The BMA Chundrigar Road Savings Fund is an open-ended fund that seeks to provide
individual and institutional investors attractive income by investing in all fixed income
and money market instruments of low risk and short duration to generate attractive rates
of return. The fund will seek to maintain a rupee weighted average maturity of the
investment portfolio of not more than 1 year.
Investment Strategy
The majority of BCSF assets are in liquid, short-term deposits with highly-rated banks.
Some exposure was taken in clean placements of varying tenors after carrying out
thorough due diligence. A small exposure has also taken in attractively priced corporate
debt in secondary market which represents attractive trading opportunities with a view to
yield enhancement.
Asset Allocation 31-Aug-07
CP/COIs 6.00%
Term Deposits 6.00%
TFCs 2.50%
Government Securities 3.00%
Cash & Equivalents 82.50%
Total 100.00%

6. Fund Details
Structure Open End
Inception Date 23-Aug-07
Minimum Subscription in PKR 5,000
Benchmark 1M KIBOR
Assets in PKR mn (31.08.07) 840.00
NAV/unit in PKR (31.08.07) 10.0219
Fee & Redemption Structure
Management Fee 1.50%
Front end Load Upto 1.00%
Valuation Frequency Daily
Return Risk Statistics
Month Return 0.74%
Month to Date 8.88%
Duration 90 Days
Standard Deviation 0.66%
1M KIBOR Yield 9.55%