Out of the total initial size of Rs 1.5 billion worth of the fund, Rs 975 million has already been committed for subscription under pre-IPO arrangements by prominent financial institutions and other investors.
Arif Habib Investment itself is said to be taking up Rs 150 million, leaving Rs 375 million for the public offer.
The PCM would be the first fund being structured as a closed-end unit trust scheme under the recently announced NBFC Rules, thus providing investors with the added protection of a trustee.
"The Central Depository Company Limited (CDC), trustee of several other funds, is the trustee of PCM Fund," the company said. With already about Rs 5.5 billion in mutual funds, the launch of PCM would raise the total sum under its management to Rs 7 billion.
The PCM would be the second closed-end fund to be managed by Arif Habib Investments, which already manages the Pakistan Premier Fund.
The management rights of that fund were acquired late last year. Besides the two closed-end funds, the company also manages three open-end funds: Pakistan Stock Market Fund (PSM); Pakistan Income Fund (PIF); and MetroBank - Pakistan Sovereign Fund (MSF), a strategic alliance with Metropolitan Bank Limited.
The company said that the first full year of performance for the funds managed by Arif Habib Investments had been rewarding for investors.
The PSM gave out total return of 81.82 percent for financial year 2002-03 and a bonus distribution of 40 percent; the PIF delivered total return of 12.4 percent and a bonus distribution of 12 percent, while the Pakistan Premier Fund declared right issue at 50 percent during financial year 2002-03, a bonus of 12.5 percent applicable to right shares as well and that followed by interim dividend at 12.5 percent for the current financial year.
The investments may include traded securities or contracts covering debt, equity, money market transactions and deposits in the Pakistani rupee.
The investments may also be made in listed venture capital companies, subject to regulatory compliance.
The fund may also take positions in derivatives for enhancing or protecting its value.