Karachi: Primus Investment Management Limited (PRIMUS Investments) and the Central Depository Company (CDC) signed a trust deed on Monday, 15th October, 2012, for the Primus Daily Reserve Fund (PRIMUS DRF).
PRIMUS DRF shall be an open-end money market fund, constituted under Non-Banking Finance Companies and Notified Entities Regulations, 2008 after obtaining requisite approval from regulatory authorities.
The objective of the Fund is to optimize savings for SMEs, Corporate Sector, & Financial Institutions for meeting any unexpected costs that may arise in the future, by providing them with high returns that constitutes low risk, and to maximize current income consistent with preservation of capital and liquidity.
The Fund would be managed by Primus Investment Management Limited; a wholly owned subsidiary of Pak Brunei Investment Company (PBIC), a joint venture between Government of Pakistan and Brunei Investment Agency.
The Fund will be offered directly to Institutional, Corporate, Retirement Funds and NGO’s Individual Investors through an IPO anticipated in mid November, 2012.
Primus Investment Management Limited aims to provide investment awareness across a broad spectrum of investor classes through providing access to traditional as well as alternative investment avenues such as commodities, Shariah compliant investments and financial derivatives.
Mr. Ahmed Ateeq, Chief Executive, commented on the occasion of launch of the fund by saying “One of the salient features of PRIMUS DRF is its management fee. On average, management companies are currently charging 1.25%, excluding other expenses. When combined, this comes to a cumulative 18% of the daily gross return of the fund which is encumbered onto the client. We believe that this cost is relatively high in the current declining interest rate scenario, making money market funds; which are commonly known as the most secured class in the mutual fund category; less attractive for Investors”
He also stressed on the responsible management of funds by saying that “PRIMUS has taken an initiative to launch a fund which will charge a justified management fee of 45bps, providing our clients with a high yielding investment avenue within the fixed income market.”