KARACHI, Feb 11: Arif Habib Investments announced on Friday interim cash dividends amounting to a huge Rs759 million for certificate-holders in Pakistan series of its mutual funds.

The distribution of dividends was such that in one of its funds - Pakistan Stock Market Fund (PSM), which the company calls its flagship open-end equity fund -- the pay out had totalled to make an investment of Rs100,000 made just two years ago in March 2002 in the fund, to shoot up to over Rs400,000.

The company stated that the market had delivered a total return of 260.3 per cent during the period from March 2002 to January 2005, whereas PSM had delivered a total return of 306.4 per cent for the same period.

"All of which demonstrates that investing through mutual funds can be very rewarding," stated the company in a press release issued here on Friday. The company claimed that it had closed financial year 2003-04 with both its equity as well as income funds as the best performing funds in the market.

The company currently holds Rs13 billion under its management in six different funds. "It has been assigned the highest rating thus far for Pakistan's asset management companies, and has shared the fruits of remarkable market performance with its investors."

PSM was said to be the best performing equity fund of the last financial year. It delivered interim cash dividends amounting to Rs170.70 million (estimated) at the rate of Rs10 per unit to unit-holders on the register as of March 31, 2005.

PSM was launched at an issue price of Rs50 per unit. Within four months of its launch in March 2002, the fund had announced bonus distribution at the rate of Rs4.47 per unit for the period ended June 30, 2002. Thereafter, it distributed bonus of Rs20 and Rs.30 per unit for full years ended June 2003 and June 2004, respectively.

"The distribution of sizeable interim dividends reflects company's continuing commitment towards serving its investors best," stated the company, adding that PSM had the distinction of having outperformed the market very substantially since the time it was launched.0

Segregating the amounts paid for each of other Pakistan series mutual funds under its management, the company said that an interim dividend of Rs101.25 million for Pakistan Premier Fund (PPF) had already been announced at the rate of 15pc equivalent to Rs1.50 per share. PPF delivered an IRR of 47pc on a NAV growth basis for the six months to December 31, 2004.

Interim dividends on other funds now announced were Rs300 million at the rate of 10pc equivalent to Re1 per certificate for Pakistan Strategic Allocation Fund (PSAF). The fund was launched in July 2004 and had been operational for a short period of around five months. PSAF's NAV had grown from Rs10 per share to Rs11.95 (as of February 4, 2005).

Pakistan Capital Market Fund (PCMF) was launched about a year ago and it paid out a dividend of 8.25pc within a short period of five months up to June 30, 2004. It has now announced an interim dividend of Rs187.32 million for the current year at the rate of 12.50pc equivalent to Rs1.25 per certificate.

PCMF's NAV growth had delivered an annualized IRR of 76.2pc for the six months ended December 31, 2004, and was currently Rs13.64. The company stated that investors who would be the registered owners of certificates/units of PSAF, PCMF and PSM as on March 31, 2005 would be eligible for the respective interim dividends.