KARACHI, Oct 28: United Money-Market Fund (UMF) is being offered to investors for subscription from November 1.

An spokesman of the fund on Monday said UMF is an open-ended money market fund that will offer its units for investment to investors on a continuing basis. The fund will invest in securities such as treasury bills, government securities and corporate debt securities.

UMF will be managed by United Asset Management Company Limited (UMAC), a United Bank Limited group company.

United Bank Limited Investment Banking Group has structured the fund with the objective of providing the investors a convenient and profitable venture for parking their liquidity.

The investment policy of the fund is geared towards meeting three prime concerns of the investors: safety, liquidity and profitability.

UMF is first of its kind fund in Pakistan that will be offering two classes of units — Class A units and Class C units — to different categories of investors.

Class A units carry no sales load which means that there will be no difference between the offer and redemption prices of these units. These units will be offered to individuals, corporates, insurance companies and provident and pension funds.

The absence of sales load will result in the net yield to Class A investors being higher than that offered by comparable instruments. The absence of a sales load will particularly benefit the small investors.

Class C units will have an exit sales load, which will be deducted from the net asset value for computing the redemption price. These units will be offered to banks, NBFIs, DFIs, brokerage houses, modarabas and financial institutions.

The minimum investment size is Rs5,000 whereas there is no upper limit on the maximum number of units that can be purchased by an investor. In order to protect the interest of the investors, Central Depository Company of Pakistan (CDC) has been appointed as the trustee to the Fund and A.F. Ferguson and Co Chartered Accounts, a member firm of Price WaterhouseCoopers, are acting as its auditors.

United Bank Limited is the primary investor of the fund and has contributed seed capital of Rs250 million. UAMC will be regulated by the Securities and Exchange Commission of Pakistan (SECP).—APP