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Mutual Funds Association of Pakistan:

Mutual Funds Association of Pakistan (MUFAP) is the trade body for Pakistan’s multi billion
rupees asset management industry. The money our members manage is in a wide variety of
investment vehicles including stocks, bonds, money market instruments, government
securities and bank deposits. Our role is to ensure transparency, high ethical conduct and
growth of the mutual fund industry. MUFAP was formed in 1996 by Mr. Zaigham Mahmood
Rizvi, ex-Chairman and founder member, and was formally licensed in 2001 as a public
limited company (by guarantee) under Section 42 of the Companies Ordinance, 1984 by
Ministry of Commerce (MOC) and is thus a quasi legal entity. After the establishment of
MUFAP in 1996, private and foreign firms were allowed to float open-ended funds for the
general public. This time also saw the stock market’s performance scale new heights as a
result of positive government policies and incentives, registering a growth of more than 15
times in the net assets of the mutual funds between 2000-2008. Mutual Funds were initially
overseen by the Corporate Law Authority (“CLA”) under its Securities Wing. The CLA, then
a division of the Ministry of Finance, was gradually transformed and made independent as the
Securities and Exchange Commission of Pakistan (“SECP”) as part of the Capital Market
Development Program (CMDP) initiative of the Asian Development Bank undertaken for
Pakistan. The CMDP envisaged formation of four types of Self-Regulated Organizations
(“SROs”) to function under the SECP:

1. Stock Exchanges recognized as separate SROs;

2. Mutual Funds Association of Pakistan (MUFAP);
3. Leasing Association of Pakistan (LAP); and
4. Modaraba Association of Pakistan (MAP).
MUFAP’s role is to establish the essential codes and standards within the industry to
ensure the trust and confidence of investors and build the industry as a whole. MUFAP’s
core objectives encompass:
1. Overseeing industry compliance under prescribed prudential standards;
2. Perform onsite supervision based on agreed criteria;
3. Conducting registration and testing/ examinations;
4. Developing cooperative programs with governmental agencies and industrial
organizations to resolve problems affecting investors;
5. Liaising between the industry and SECP and other concerned government
bodies to highlight and resolve issues affecting the mutual fund industry; and
6. Presenting budgeting proposals and other recommendations to the SECP for
the development of the industry.
Pak Oman Asset Management Company Ltd.
Pak Oman Asset Management Company Ltd. (POAMCL) is a Non-Banking Finance
Company incorporated on July 28, 2006 as a public unlisted company with the principal
objective of acting as an investment manager for mutual funds.
POAMCL has paid up capital of Rs.330 million and is licensed by the (SECP) to undertake
Investment Advisory Services and act as an Investment Advisor under Rule 5(2) of the NBFC
Rules, 2003.
Pak Oman Asset Management Company Limited strives to be the pioneer in new investment
solutions by setting higher standards in the industry. It is this aim that drives our innovative
and customized approach to meet our client's changing investment needs.
We believe in professionalism, transparent and responsible decision making, and continuous
learning, to ensure better returns for our investors while maintaining high ethical standards.
“To support Pakistan’s and Oman’s economic prosperity, To nurture the friendship between
Pakistan and Oman by offering high rate of return to all stake holders, To become an
employer of choice, and To spread ethical practices”
“Pak Oman Asset Management Company limited aims to provide an expert quality, wide
variety of fund management and advisory services to the investors at large with different
investment objectives. Its aims to provide differentiated and innovative financial products for
international and domestic investors”.
Open End Fund:
2) POAAIF (formerly poalf)
3) POAAAF (formerly poasf)
Close End Fund:

Explain: (POALLF)
Pak Oman Advantage Fund Islamic Income (POAIIF) is an open-end fund. The objective of
POAIIF is to maximize medium to long-term return. This will be achieved by investing in a
diversified portfolio of Shariah compliant instruments (such as Sukuks) certificates of Islamic
investment, spread transactions as per Shariah board approval, and other Shariah complaint
income instruments including Shariah compliant securities available outside Pakistan. All
investments of the fund will be as per the guidelines of the Shariah advisor and Shariah
technical support of the fund. This philosophy will also mitigate the risk for investors.
Fund Investment Objective
The investment objective is to provide a stable stream of income with a moderate level of risk
by primarily investing in fixed income securities and offering prospects of income and capital
Type of Fund
PakOman Advantage Stock Fund is an open-end scheme constituted under Non Banking
Finance Companies (Established and Regulation) Rule, 2003.

The Fund invests primarily into high quality debt instruments constituting corporate bonds,
bank deposits, Continuous Funding System (CFS) and other available fixed income
alternatives. Benchmark for investment is 3 months KIBOR +1% and the fund is managed by
Pak Oman Asset Management Company Ltd.
Close End Funds:
Explain (Poasf)

Is a closed end fund, established through a Trust Deed between Pak Oman Asset Management
Limited, the Management Company and Central Depository Company of Pakistan Limited.
POAF has been developed with the objective of investing in high quality debt instruments of
commercial banks. POAF will have a limited life of 8 years, after which the fund will be
wound down and investors will be paid back
Fund Investment Objective
To provide low risk adjusted returns to the investor by minimizing credit and price risks in a
fixed income portfolio.
Type of Fund
Pak Oman Advantage Fund (POAF) is a Closed End Fund with the objective to invest in high
quality debt instruments of commercial banks. upto 75% of fund will be invested in listed and
rated Tier II TFC issues of commercial banks. As only free floating instruments will be
accepted, both credit risk as well as price risk will be minimized.The remaining will be
invested in listed and rated TFCs (non bank) rated A or higher, placements with banks and
other financial institutions which have a minimum entity rating of "A", money market
instruments including repurchase transactions where the underlying securities are of
acceptable risk (Government or high credit rated corporate bonds), spread transactions and
Continuous Funding System.
Name of the Members of Investment Committee:
Ms, Hina Ghaznafar, CEO
Mr, Shoaib Ali Khan, Equity fund Manager
Mr, Nabeel Malik, Fixed Income Manager

Underlying Risk & Mitigates

The minimum amount of investment to open and maintain an account will be Rs. 5,000/-,
with no maximum limit.
Subsequent investment into the Scheme shall be for a minimum of Rs. 1,000/- per transaction,
with no applicable maximum amount.
Investors are advised that all investments in mutual funds and securities are subject to market
risks. A targeted return/dividend range cannot be guaranteed. It should therefore be clearly
understood that the portfolio of POAIIF is subject to market risk and other risks inherent in all
such investments. The risk emanates from various factors that include, but are not limited to:
1. Equity Risk - Companies issue equities, or stocks to help finance their operations and
future growth. A company’s performance outlook, market activity and the larger economic
picture influence the price of its shares. When the economy is expanding, the outlook for
many companies will be good and the value of their stocks should rise. The opposite is also
true. Usually, the greater the potential reward, the greater would be the risk. For small
companies, startups, resource companies and companies in emerging sectors, the risks and
potential rewards are usually greater. Some of the products and services offered by
technology companies, for example, can become obsolete as science and technology advance.
2. Credit Risk - Credit risk is comprised of default risk, credit spread risk and downgrade risk.
Each can have a negative impact on the value of a fixed-income security including money
market instruments.
a) Default risk is the risk that the issuer of the security will not be able to pay the obligation,
either on time or at all.
b) Credit spread risk is the risk that there will be an increase in the difference between the
return/mark-up rate of an issuer’s bond and the return/mark-up rate of a bond that is
considered to have little associated risk (such as a government guaranteed bond or treasury
bill). The difference between this return/mark-up rates is called a “credit spread”. Credit
spreads are based on macroeconomic events in the domestic or global financial markets. An
increase in credit spread will decrease the value of fixed income securities including money
market instruments.
c) Downgrade risk is the risk that a credit rating agency will reduce the credit rating of an
issuer’s securities. Downgrades in credit rating will decrease the value of those securities
including Shariah compliant money market instruments.
3. 3. Derivative Risk - Derivatives may be used to limit or hedge potential losses associated
with investments. This process is called “hedging”. The hedging strategy may not be effective
and there is no guarantee that a market will exist when a Fund wants to buy or sell the
derivative contract. There is also no guarantee that an acceptable counterpart will be willing
to enter into the derivative contract. The counter-party to the derivative contract may not be
able to meet its obligations or the Exchanges on which the derivative contracts are traded may
set daily trading limits, preventing a Fund from closing out a particular contract. If an
Exchange halts trading in any particular derivative contract, a Fund may not be able to close
out its position in that contract. The price of a derivative may not accurately reflect the value
of the underlying security or index.
4. Government Regulation Risk - Government policies or regulations are more prevalent in
some sectors than in others. Funds that invest in these sectors may be affected due to change
in these regulations or policies, which directly or indirectly affect the earnings and/or the cash
flows and/or any governmental or court orders restraining payment of capital, principal or
5. Voluminous Purchase/Redemption of Fund Units Risk - Any significant transaction made
by any investor could significantly impact a Fund’s cash flow. If the third party buys large
amounts of Units of a Fund, the Fund could temporarily have a high cash balance.
Conversely, if the third party redeems large amounts of Units of a Fund, the Fund may be
required to fund the redemption by selling securities at an inopportune time. This unexpected
sale may have a negative impact on the performance of the investment.
6. Country or Political Risks - is the uncertainty of returns caused by possibility of a major
change in political or economic environment of the country such as
a. Breakdown of law and order, war, natural disasters, etc
b. Any Government actions, legislative changes or court orders restricting payment of
principal or income
c. Any enactment by government of Foreign exchange restrictions
d. Any governmental or court orders restraining payment of capital income

Trustee & Custodial of Fund

Central Depository Company of Pakistan Limited-CDCPL

Disclaimer (Open end funds)

The Units of the Trust are not bank deposits and are neither issued by, insured by, obligations
of, nor otherwise supported by the Commission, any Government agency, the Trustee (except
to the extent specifically stated in this Offering Document and the Trust Deed) or any of the
shareholders of the Management Company or the Trustee or any of the Core Investors or any
other bank or financial institution.
Investors must be aware that all investments involve risk; it should be clearly understood that
the portfolio of POAIIF is subject to the risks mentioned herein. The value of the investments
and the income from them can fall as well as rise and is not guaranteed. Past performance is
not necessarily an indicator of future performance and returns.

Disclaimer (close end fund)

The certificate Prices of the Fund and income generated from them may go up or down. Due
to any extraordinary, unforeseeable circumstances, POAMCL may declare suspension of
redemptions, invoke a queue system or announce winding-up.
The certificate of the Trust are not bank deposits and are neither issued by, insured by nor
obligations of, nor otherwise supported by the SECP, any Government agency, the Trustee
(except to the extent specifically stated in this document and the Trust Deed) or any of the
shareholders of the POAMCL or any of the Core Investors or any other bank or financial