ISLAMABAD, May 7: Securities & Exchange Commission of Pakistan (SEC) here Tuesday announced the grant of licence to M/s Dawood Money Market Fund (DMMF) as the 9th open-ended fund.

Managed by Pakistan Venture Capital Company Ltd and sponsored jointly by Asian Development Bank and Dawood Group, DMMF is the 7th fund to be offered to the public for subscription in the past one year.

Bank Al-Habib and Dawood Group have provided core capital for DMMF. In order to ensure long-term support and stability for it, the core capital would remain invested in the Fund for a period of two years, the SEC stated.

The Commission has, so far, granted licences to eight asset management companies out of which five were licensed during the past one year. Asset Management Companies are primarily engaged in managing open-ended mutual funds.

To date, five such companies have been allowed to float the funds, while applications by two more companies are at different stages of approval.

The registration of DMMF is yet another step taken by the SEC to provide alternate competitive investment avenues to the public, it was pointed out.

The Commission has, however, advised the prospective investors to read the Offering Document carefully in order to acquaint themselves with the risks and rewards of investment through mutual funds.