KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has approved the conversion of PICIC Investment Fund (PIF) and PICIC Growth Fund (PGF), being managed by HBL AMC into open-end funds, an announcement said on Thursday.
The corporate sector regulator in a statement said it managed to bring this longstanding issue to a successful conclusion by closely working with HBL AMC and other stakeholders, including Pakistan Stock Exchange (PSX), Central Depository Company (CDC), and National Clearing Company of Pakistan Limited (NCCPL).
The conversion will enable investors to capture the benefit of net asset value of unfrozen portfolio of the funds in case of redemption and allow exit mechanism to the investors of Class A units representing frozen portfolio through PSX, the statement said.
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Consequently, the PICIC Investment Fund (PIF) and PICIC Growth Fund (PGF) were converted into open-end funds on July 2, 2018, in compliance with the condition imposed by the SECP for the merger of the PICIC AMC with and into HBL AMC.
The SECP said Regulation 65 of the Non-Banking Finance Companies and Notified Entities Regulations, 2008, required all closed-end funds to be converted into open-end schemes upon expiry of five years starting November 21, 2007.
It must be noted that the PIF and PGF could not be converted into an open-end structure because of the frozen portfolio comprising shares of PSO and SNGPL as per the consent agreements with Government of Pakistan through Privatization Commission.
As per approved scheme, Class A units are issued to the certificate holders of the PIF and PGF based on the market value of the frozen portfolio and related assets and liabilities as applicable on June 30, 2018.
Class B units are issued to the certificate holders of PIC and PGF based on the net asset value (NAV) of the portfolio other than those attributed to Class A units on June 30, 2018.