Melchior is set to launch the first Pakistan fund on 19 June in a bid to take advantage of a growing energy sector.
The Melchior Selected Trust Pakistan Opportunities Fund (MSTPOF), which is open to UK investors, will be managed by Dalton Strategic Partnership LLP and advised by KASB Funds in Karachi.
Pakistan’s attraction as a frontier economy – with sustainable economic growth of 7% per year – is being fuelled by its strategic geographic position as a trade corridor between the Middle East, Central Asia, China and India, Melchior says.
Compared with Asian and Middle Eastern markets, the Pakistan equity market is relatively inexpensive, with a Price Earnings multiple of less than 10 times and a market average return on equity of 24% for 2008 and a dividend yield of close to 5%.
Naz Khan, chief executive officer of KASB Funds views potential in the energy and banking sectors. He says: “Notwithstanding the strong rise in the market over the past six years, the Karachi stock market is poised to benefit from the continued growth in the economy.
“In particular, we like the Energy and Banking sectors and fertilizer, chemicals and cement should all do well.
"Pakistan is growing as an energy producer, already producing 30% of our energy requirements and with a successful record of exploration which looks set to continue.”IFAonline
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created