NAME: AMEER HAMZA

CLASS: BSAF- 6B

SUBJECT: INTERNSHIP REPORT

ROLL NO: 180818

ACKNOWLEDGEMENT:
No one can say that I am perfect; everyone should admit that without the help of ALLAH and
His people a man cannot get anything so I bow my head before almighty Allah
with gratitude. I am also very much thankful and presents salute to Many individuals who
have helped me in shaping this report .I am also very much thankful to lot of my
contemporary colleagues.

Historical Background of Habib Bank Limited:

Mohammed Ali Jinnah, Pakistan's founding father, realized the importance of financial
intermediation while he was campaigning for the creation of a separate homeland for the
Muslims of India. He persuaded the Habib family to establish a commercial bank that could
serve the Indian Muslim community. His initiative resulted in the creation of Habib Bank in
1941, with HO in Bombay (now Mumbai), and fixed capital of 25,000 rupees. The bank played
an important role in mobilizing funds from the Muslim community to finance the All India
Muslim League's campaign for the establishment of Pakistan. Habib Bank also played an
important role in channeling relief funds to the people hurt in the communal riots and violence
that preceded the departure of the British from India.
After Pakistan was born in 1947, Habib Bank, at the urging of Governor-General Jinnah, moved
its headquarters to Karachi, Pakistan's first capital. This gave Karachi its first commercial bank
of the newly formed Islamic Republic of Pakistan. The Habib family owned and managed the
bank until the Pakistan government nationalized it on 01 January 1974.
Following is a brief description of HBL’s journey over the last several decades.
1951 HBL opened the first of 3 branches in Sri Lanka.
1952 HBL established Habib Bank (Overseas).
1956 HBL opened first of 5 branches in Kenya.
1957 or 1958 HBL opened a branch in Aden.
1961 HBL opened the first of what would become 6 branches in the UK.
1964 HBL opened the first of 4 branches in Mauritius and a branch in Beirut.
1966 HBL opened the first of 8 branches in the UAE.
1969 HBL opened first of 3 branches and an OBU in Bahrain. However, HB’s branch in Aden is
nationalized.

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1971 HBL opened an OBU in Singapore and a branch in New York.
1972 HBL opened the first of 11 branches in Oman. HBL constructed Habib Bank Plaza in
Karachi to commemorate the bank’s 25th Anniversary.
1974 The government of Pakistan nationalized HBL and HBL merged with Habib Bank.
1975 HBL opened a branch in Belgium. HBL also merged with Standard Bank, a Pakistani
bank.
1976 HBL opened a branch in the Seychelles, the first of two branches in Bangladesh, and a
branch in the Maldives.
1979 HBL opened a branch in the Netherlands.
1980 HBL opened a branch in Paris and another in Hong Kong.
1981 HBL established Nigeria Habib Bank with 40% ownership. HBL also opened a
representative office in Teheran.
1982 HBL opened a branch in Khartoum.
1983 HBL opened branch in the Karachi EPZ and a branch in Istanbul.
1984 HBL established Habib American Bank in New York with a branch each in Manhattan and
Queens, and a US International Banking Facility. HBL also opened a branch in California.
1987 HBL opened in Australia.
1991 The Habib Group established a separate private bank, the Bank AL Habib, after private
banking was re-established in Pakistan. HBL opened a branch in the Fiji Islands, and took over
the Pakistani branches of failed bank, BCCI.
1992 In Nepal HBL acquired 20% of Himalayan Bank.
1995 HBL established a representative office in Cairo.
1990s HBL established Habib Finance (Australia), and Habib Finance International Limited,
Hong Kong.
2000 HBL established Habib Canadian Bank.
2002 On June 13, 2002 Pakistan's Privatization Commission announced that the Government of
Pakistan had granted the Aga Khan Fund for Economic Development (AKFED), a subsidiary of
the Aga Khan Development Network, rights to 51% of the shareholding in HBL, against an
investment of PKR 22.409 billion (USD 389 million). HBL's UK operation came close to being
shut down due to regulatory issues with the Financial Services Authority. The issue was resolved
by converting the operations to a subsidiary. On February 26, the Government of Pakistan

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handed over management control of Habib Bank to AKFED. The Board of Directors was
reconstituted to have four AKFED nominees, including the Chairman and the President/CEO and
three Government of Pakistan nominees 2006 HBL sold the operations that it had established in
Fiji in 1991 to Bank of South Pacific. 2008 Declared best bank.
2009 Pakistan’s largest banking network.
Now I talk about its wholly owned subsidiary where I worked to learn about how HBL invest
and manage the funds.
HBL Asset Management Limited (HBL AML):
Is a wholly owned subsidiary of HBL, the largest commercial bank in Pakistan. The company was
incorporated in February 2006 as a public limited company under the Companies Ordinance 1984. The
Securities and Exchange Commission of Pakistan licensed it for Investment Advisory and Asset
Management Services in April 2006. The company launched its first fund in 2007 and has developed a
record of accomplishment of strong and consistent growth over the past decade. With a nationwide
footprint of retail and corporate clients, HBL AML is one of the largest private fund management
company in the country. During the year 2016, HBL AML acquired PICIC Asset Management Company
Limited, which has subsequently merged into HBL AML.

VISION:
Enabling people to advance with confidence and success.

MISSION:
To make our investor(s) prosper, our staff excel and create value for our stakeholders.
Board of Directors:
Mr. Shahid Ghaffar ( chairman)
Mir Adil Rashid (CEO)
Muhammad Afaq Khan (Director)
Abrar Ahmed Mir (Director)
Rayomond Kotwal (Director)
Shabbir Hussain Hashmi (Director)
Ava A. Cowasjee (Director)
Tariq Masaud (Director)

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Industry:
Banking industry

Departments:
Account opening and processing
Customer services
Retail sales

Products:

Money Market / Income Funds:

If you are looking to earn competitive risk-adjusted returns, HBL Asset Management’s Money
Market / Income Funds are exactly what you need. Our products in this category are for
investors who are looking at regular & steady income & at the same time wish to earn
competitive risk-adjusted returns over a medium term period. These funds generally invest in
fixed income securities such as corporate bonds, government securities, bank deposits, T-bills,
etc.

These funds are relatively less volatile compared to equity schemes and are best suited for
investors who do not have the appetite for stock market volatility.

Following are the types of income funds:

HBL cash fund
HBL income fund
HBL money market fund
HBL government securities fund

Equity Funds:

If you want to invest in stock market but do not have the time to keep track of performing scripts,
look no further. HBL Asset Management’s Balanced / Equity Funds aims to provide the
investors with superior risk-adjusted returns by investing in blue-chip companies that have the
potential to provide high growth and returns. Our experienced & qualified Fund Managers
actively manage the equity fund portfolio so that our investors get superior risk-adjusted returns.

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These funds are volatile compared to Money Market / Income Funds schemes available and are
best suited for investors who have a long-term investment horizon.

Types:

HBL Energy Fund

HBL Multi asset Fund

HBL Stock Fund

Shariah Compliant Funds:

Get the best of both worlds at HBL Asset Management Limited. You can select from a wide
variety of Shariah compliant mutual funds & plans to match your unique investment goals and
risk appetite. Our products in this category are for investors who are looking at regular & steady
income & at the same time wish to earn competitive risk-adjusted returns over a medium to long-
term period.

Following are the types of shariah complaint funds:

HBL Islamic money market fund

HBL Islamic stock fund

HBL Islamic asset allocation fund

Financial Plans:

Are you avoiding investing in mutual fund because you do not understand them?

Choosing the right mode for savings is the most important decision you need to make when
planning for future.

Worry no more! HBL Financial Planning fund is the answer to all your investment needs. The
fund offers investment plans to help investors achieve their targeted returns as per their risk
appetite.

There are two types of financial plans:

HBL Islamic Financial Planning Fund

HBL Financial Planning Fund

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Voluntary Pension Scheme:

Planning for your retirement is one of the most important things anyone has to do. With HBL
Asset Management’s pension plans, you can now start your planning for your hassle-free post-
retirement life. Our Pension Schemes aims to provide secure source of savings and regular
income to investors after retirement. Based on your risk appetite, investments are made in
flexible allocation schemes to deliver superior-risk adjusted returns.

It also has two types:

HBL Pension fund

HBL Islamic pension fund

Separately Managed Accounts:

At HBL Asset Management Limited, we have a product for everyone. Whether you have a need
for capital appreciation, capital preservation, or looking to achieve a specific target return, our
tailor-made Separately Managed Accounts (SMAs) can help you achieve your financial goals.

Your investment portfolio is developed & maintained based on your investment horizon & risk
appetite. With the team of experienced, qualified & professional management team, analyst and
fund managers, you can take advantage of our tailor-made Separately Managed Accounts
(SMAs) where we can make your money work hard for you.

Services Offered under SMAs:

HBL Asset Management Limited provides customized Portfolio Management and Advisory
Services to institutional clients as well as to High Net worth Individuals (HNWIs) under license
by Securities and Exchange Commission of Pakistan. Our Investment Advisory Services include:

1. Discretionary Portfolio Management

2. Non- Discretionary portfolio Management

3. Advisory

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Relation with our course (BSAF):

As my internship is mostly about the mutual funds and their use (investment) in different
securities to get return in the future which is related to our subject that we I had studied in 6th
semester “Investment and portfolio management”. In which we learn about how to collect funds
and how to diversify your risk.

Recommendation:

Following are the changes may require in my opinion:

HBL (ASM) should focus on its marketing strategies so that the market share could be
increased.

Customer dealing should be given more weighted.

There is also a need of proper recruitment and selection program. New young talent
should be introduced to inject the new ideas.

The outlook and interior layout of the branch is another thing, which needs to be
improved.

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 Weekly Journal
1st Week activities:

In the first week, first day was the orientation day in which I visited to different section of the
company where there is account opening and processing section, customer’s services desks, cash
section. Our supervisor is with us to give us the information about the different section. In the
coming days, I learn about how to open the account of customer:

Following details are required to open an account and feed that information in the system:

1. Proof of Identity- Valid ID

 CNIC/NADRA Receipt (Pakistan national only)  Passport (Foreign nationals)

2. Nadra verification

 Biometric Verification

3. Proof of Address

 Biometric Verification  Utility Bill  Office Address

4. Source of Funds-Proof of income

 Salaried individuals:

Employer certificate/Service Card/Staff Card/Salary Certificate/3-month Pay slip/ Pensioner

book or card

 Non-Salaried individuals:

Declaration form

 Housewife/ Minor/Student:

Details of the funds provider/Guardian/ Financial Supporter and their source of income

After that supervisor, assign task to make different accounts by assuming customers.

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2nd Week activities:

In the second week, I learn about Money market funds and its types briefly:

HBL Cash Fund :

The investment objective of the fund is to provide competitive returns to its investors through
active investments in low risk portfolio of short duration, while maintaining high liquidity.

HBL government securities fund:

I learn that objective of this fund is to provide consistent returns to its investors through active
investment in a blend of short, medium and long term securities and guaranteed by Government.

HBL Income fund:

The main objective of this fund is to provide stable stream of income with a moderate level of
risky by investing in fixed income securities.

3rd Week activities:

In this week, I learn about Equity funds and its types:

HBL Energy fund:

The objective of HBL Energy Fund is to invest in the equity securities of Energy Sector in order
to provide the investors an access to high quality blue chip stocks in the Energy Sector. This will
also provide the investors an opportunity to earn capital growth over medium to long-term.

HBL multi asset fund:

To provide long-term capital growth and income by investing in multiple asset classes such as
Equity, Equity related instruments, Fixed Income Securities, Continuous Funding System,
Derivatives and Money Market instruments.

HBL stock fund:

To provide long term capital growth by investing primarily in a diversified pool of equities and
equity related Instruments.

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4th Week activities:

In this week, I learn about Shariah Compliant funds and its types:

HBL Islamic money market fund:

To seek high liquidity, competitive return and maximum possible preservation of capital for
investors by investment in low risk Shariah Compliant securities.

HBL Islamic stock fund:

To provide long term, capital growth by investing in Shariah Compliant Equity securities. Ideal for
investors who wish to make shariah compliant investments for long term capital growth.

HBL Islamic asset allocation fund:

HBL Islamic Asset Allocation Fund aims to provide superior returns through investments in
Shari’ah Complaint Equity Securities and Shari’ah Compliant Income / Money Market
Instruments.

5th Week activities:

In this week, I learn about financial plans and Voluntary Pension scheme:
Islamic financial plan:

HBL Islamic Financial Planning Fund (HBL-IFPF) invests in a mixture of shariah compliant
income / money market and equity schemes. The fund offers investment plans with varying
degrees of exposure to equities to help investors achieve their targeted returns as per their risk
appetite.

Following are the investment plans:

Investment plan Equity scheme(s) Income scheme(s) Cash equivalent

conservative 20% 80% 5-10%

Active 0-95% 0-100% 5-10%

Strategic 0-95% 0-100% 5-10%

Capital preservation 0%-95% 0%-50% 0%-100%

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Free insurance / takeful coverage:
You can save up for a prosperous post-retirement life and enjoy peace of mind with free
Insurance / Takaful coverage wherever you are. This insurance coverage is subject to
maintaining a minimum balance of Rs 100,000 in your pension plan.

Balance Amount In case of Natural In case of Accidental

Death Sum Assured Death Sum Assured

Below Rs. 100,000 None None

At least Rs. 100,000 but less than Rs. 200,000 Rs. 150,000 Rs 1000000

At least Rs. 200,000 but less than Rs. 400,000 Rs 300000 Rs 1500000

At least Rs. 400,000 but less than Rs. 600,000 Rs 500000 Rs 2000000

At least Rs. 600,000 but less than Rs. 800,000 Rs 750000 Rs 3000000

At least Rs. 800,000 but less than Rs. 1,000,000 Rs 1000000 Rs 4000000

At least Rs. 1,000,000 or more Rs 1500000 Rs 5000000

6th Week activities:

In the last week , supervisor given an assignment in which our task is to analyze different
securities and give suggestion about investing in securities which are beneficial for the bank and
customers in coming future.

Conclusion:
In a nutshell, HBL mutual funds are providing wide-ranging investment opportunities for the
investors to invest and capitalize their invested funds. For those investors who have surplus
funds and want to earn higher returns over a specified period, HBL Mutual funds are ideal
opportunity.

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