KARACHI, July 5: Pakistan Income Fund (PIF) and Pakistan Stock Market Fund (PSM), both managed by Arif Habib Investments, stood out as the best performing funds for the year ended June 30, 2004, on total return basis , in their respective (fixed income and equities) categories.

A statement issued by Arif Habib Investments on Monday stated that Pakistan Income Fund (PIF) had declared bonus dividend at the rate of 9 per cent (Rs4.50 per unit on face value of Rs50) for the year ended June 2004.

"PIF is the country's first and largest fixed income open-end fund," the company claimed and added that its equity fund-the Pakistan Stock Market Fund-had already announced 60 per cent (Rs30 per unit on face value of Rs50) bonus dividend on Saturday.

PIF was stated to have earned total distributable income of Rs284 million (Rs4.55 per unit). Out of that, the Fund would distribute Rs281 million, which would amount to Rs4.50 per unit.

The Fund had grown from Rs1,501 million last year to Rs3,400 million by June 30, 2004. The Net Asset Value had increased by 7.47 per cent (Rs3.80 per unit) to Rs54.53 from Rs50.73, a year ago. "An investor holding 100 units as of June 30, 2004 would get 8.99 additional units at the ex-bonus repurchase price of Rs50.03 per unit," the company said.

Arif Habib Investments recounted that the year 2003-04 had been a good year for fund mangers in Pakistan. Riding on a robust stock market, equity and balanced funds had provided their investors incomparable returns.

"However, it was not the market alone; credit should be given to fund managers as equity funds have been able to outperform the market," the company stated, adding that in the new interest rate scenario, fixed income funds had also provided an attractive alternative to investors who were more concerned with protection of their capital.