1 / 13

AKD Index Tracker Fund AKD Investment Management Limited

AKD Index Tracker Fund AKD Investment Management Limited. A mutual fund that seeks to produce the same return that investors would get if they owned all the securities in a particular index.

giulio
Télécharger la présentation

AKD Index Tracker Fund AKD Investment Management Limited

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. AKD Index Tracker Fund AKD Investment Management Limited

  2. Amutual fund that seeks to produce the same return that investors would get if they owned all the securities in a particular index. The first fund that AKDIM intends to launch is the “AKD Index Tracker,” which will try to mirror the return of the KSE-100 Index. AKDIM believes that this could be just the first of a variety of such funds, i.e. Liquid-30, Small Cap, Large Cap. What is an Index Fund?

  3. Index Funds Globally • At the end of 1975 there were $50mn invested in index funds. Today, there are roughly $9trn invested in equity and bond index funds globally. (source: www.ifa.com index funds advisors) • Last reported, World’s 100 largest fund managers reported that 27% of their portfolios were passively managed. (source: www.ifa.com index funds advisors) • The first index fund in India, UTI Master Index, was launched more than 6 years ago and AUM exceed INR 20bn. • During the last 17 years on average the individual stock investor in US has enjoyed a return of 5.8% vs. S&P 500 return of 15.6%. (source: Dimension Asset Mgmt Inc.) • Wilshire 5000 Index, which represents the entire US market has provided a 16.3% return since 1990 till date, vs. a return of 13.9% by active mutual funds. (source: Index Fund Investor) • Over the past 20 years 82% of active mutual funds in the UK have failed to beat the benchmark FTSE All Share Index. • In South America, a recent study by Peregrine Quant Research shows that 80% of SA’s actively managed portfolios are passively managed, while the rest is in selected stocks and Hedge Funds.

  4. Some wise words from masters of the trade: • " [Most investors would] be better off in an index fund." Peter Lynch, famous stock picker, Barron's, p. 15, April 2, 1990 • "..the best way to own common stocks is through an index fund...“ -Warren Buffett, Berkshire Hathaway, Inc. 1996 Shareholder Letter • "Most of the mutual fund investments I have are index funds, approximately 75%." - Charles R. Schwab, Author, Guide to Financial Independence, p.90

  5. AKD Index Tracker Fund – Why now? • Pakistan is fundamentally one of the cheapest market in the region. • With all the macro / micro economic indicators pointing north, the country’s risk rating improving and foreign interest coming in, we believe that the equities market in Pakistan is extremely attractive. 2005

  6. Portfolio Diversification – AKDITF invests in the full depth of the market, investing in a wide range of sectors and stocks, eliminating specific stock/sector risks, and the reliance on market timing and Fund Manager performance. Low Cost and Management Fees – As the fund is passively managed, there are low transaction costs matched by much lower management fees (less than 1%) vs. active mutual funds (3%).There is no entry load fee charged as the fund is close end. Full Transparency – Index funds are the most prudent way to invest as there are no issues relating to front running and market manipulation. The practice of holding high level of cash reserves in active mutual funds is a disadvantage to the investor, in the case of Index Funds 100% of your money is put to work at all times. AKD Index Tracker – Key Highlights

  7. Consistent Long Term Returns – The compounded annual return, on the KSE 100 index from CY1995-CY2005 is 17% and CY2000-CY2005 is 41%. In addition, the current dividend yield of KSE 100 is projected at 5.3% for FY2006. Reduce your Anxiety Level - It makes sense to invest a percentage of the equity portfolio in an Index Fund as we all know how difficult it is to time markets and pick stocks, (especially in Pakistan’s volatile market), putting the entire portfolio’s performance in the hands of the fund manager. An Index fund provides an investor consistent long term returns (KSE 17% p.a./10yrs) at one tenth to one third cost that of actively managed funds. This provides the opportunity for the investor to play the market with the rest of the AUM and enhance the existing returns being received by the index, thus outperforming the market in a diversified, reduced stress and cost efficient manner. AKD Index Tracker – Key Highlights (Continued)

  8. Average Rate of Return - Fixed Income vs. Equities

  9. KSE-100as % Total Market Cap & Total Traded Value

  10. Superb Dividend Yield (KSE-100 FY06 Dividend Yield 5.3%)

  11. Company Weights *Weightage as of September 22, 2005

  12. Sector Weights *Weightage as of September 23, 2005

  13. Contact information: • AKD Investment Management (Ltd) • 606, Continental Trade Center • Block 8, Clifton, Karachi • Pakistan • PABX: 92-21-5371305-7 • Fax: 92-21-5373217 • info@akdinvestment.com • www.akdinvestment.com AKD Investment Management Limited

More Related