KARACHI, Jan 8: With the launch of Crosby Dragon Fund on Thursday, Pakistan saw the entry of first multinational-managed foreign fund into its financial markets.
The chairman, Securities and Exchange Commission of Pakistan (SECP), Tariq Hassan, speaking on the occasion of the launch of the Fund, said that the entry of Crosby Dragon Fund marked a new beginning in the development of mutual fund industry in Pakistan.
He affirmed that the entry of Crosby not only mirrored the interest of foreign funds in Pakistan but it was also an important step in the development of mutual fund industry in the country.
"The Crosby Dragon Fund is very innovative, diverse, backed by very professional Pakistani team and international managers," said the SECP chairman, adding that Crosby was regionally managed by Pakistani professionals and "we have been able to attract them to this country."
Mr Robert Owen, chairman, Crosby Group of Companies (Techpacific & Crosby)-who was earlier introduced as having 35 years experience in financial services industry, both as regulator as well as banker- said that over the last few years, Pakistan had come up as a serious emerging market. "The economic reforms have set a scene for remarkable performance and put Pakistan back on the map," said Mr Owen.
He recounted corporate governance, transparency and quality disclosures as important steps in the market reforms programme and stated that the privatization programme had played a major role in increasing investor confidence. Crosby, he said, would raise additional funds in the Pakistan market and later step into investment banking and so forth.
Crosby was focused on Asia but had strong presence in US and the Middle East. Mr Owen said: "Our clients are showing increasing interest in Pakistan and we can give them access."
Mr Mumtaz Hussain Syed, chief executive of Crosby Asset Management-the management company of Crosby Dragon Fund-said that Crosby was not new to Pakistan's financial markets. Mr Mumtaz elaborately discussed the company's plans for the future. He said that telecom, textile value-added and small hydel power sectors had tremendous growth potential. He cited horticulture market as remaining largely untapped: "About 50-70 per cent of our agricultural products parish," said Mr Mumtaz, adding that the company was working on those sectors as well.
He stated that Crosby had decided to enter Pakistan market in February-March of 2003 and launched the first open-end fund in December with seed capital of Rs260 million. He said that 14 financial institutions had participated as core investors in the Crosby Dragon Fund. He said that unlike other funds where 10 to 15 per cent subscription is made by general public, in Crosby Dragon Fund, the share of investing public was 30 per cent.
Others who spoke on the occasion included Mr Ilyas Khan, Managing director of the Crosby group and the main person to acquire Crosby through management buyout. "Our heartbeat," said Mr Ilyas is "China". Other biggest clients were stated to include governments of Korea and Hong Kong.
