Investment Policy Statement

Introduction:

The purpose of this investment policy statement is to establish guidelines for an

optimized portfolio fund of the 10 different stocks selected from KSE100 Index and to supervise,
evaluate and monitor the portfolio over the specified period in order to attain maximum return
for the portfolio. The statement incorporates the standards, objectives, constraints, circumstances
and overall policies used to measure the performance of the portfolio. The document shall apply
to the investment committee responsible for managing the portfolio on behalf of the client. The
investment policies for the Fund contained have been formulated consistent with the financial
needs and financial risk desired by the client. The stocks in the portfolio have been chosen based
on fundamental analysis of the companies.

Investment Objectives:

The objectives of the portfolio are listed below:

 The Primary objective of the stock is to achieve high capital gain along with minimum
risk of all the stocks invested in.
 The expected return from the portfolio is ___ when the risk from portfolio is ___ along
with market risk at ___.
 Equity securities are optimized based on Sharpe ratio, optimization via correlation
and covariance and fundamental analysis.
Investment Constraints:

The portfolio is subject to the following constraints:

 The client wishes to invest PKR50 million cash only.

 For the sake of diversification, the client has constrained investment managers to invest
in a maximum of 10 stocks chosen from KSE100 Index only.
 The client also does not wish to allow usage of “day-trading”
 Investment time horizon of this project and the trading time for selling and buying
securities would be 3 months only.

V. Description of Responsibilities:
The roles of those involved in the management of the asset allocation include, but are not limited to:

A. Investment Committee shall be responsible for the selecting, monitoring, and retaining the
available investment options that adhere to the specified requirements of the client. Moreover,
the investment committee holds the authority to select and appoint investment managers. The
Investment Committee is stated as under:
1)Abdul Manan
2)Baqar Shayan
3)Hamza Ashfaq
4)Aamir Zaryab