CHUNDRIGAR ROAD SAVINGS FUND CHUNDRIGAR ROAD …bmafunds.com/FINR/Chundrigar-fund-2.pdf · 1.73 million, respectively. In addition, the fund booked an element of net loss from the

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CHUNDRIGAR ROAD SAVINGS FUND CHUNDRIGAR ROAD SAVINGS FUND

Management CompanyBMA Asset Management Company Limited801 Unitower. 1.1. Chundrigar Road,Karachi-74000Board of Directors of the Management CompanyMr. Muhammad Iqbal ChairmanMr. Zouhair Abdul Khaliq DirectorMr. Salim Khan DirectorMr. Muddassar Malik DirectorMr. Khaldoon Bin Latif Chief Executive OfficerAudit Committee of the Management CompanyMr. Zouhair Abdul Khaliq ChairmanMr. Muhammad Iqbal MemberMr. Muddassar Malik MemberHuman Resource and Remuneration CommitteeMr. Salim Khan ChairmanMr. Muhammad Iqbal MemberMr. Muddassar Malik MemberManagement Team of the Management CompanyMr. Farrukh Hussain Chief Investment OfficerMr. Faisal Ali Khan CFO & Company SecretaryTrusteeMCB Financial Services LimitedTrustee Office 4th Floor, Pardasi House, M.T Khan Road, KarachiBankersSummit Bank LimitedBank Islami Pakistan LimitedJS Bank LimitedBank AI-Habib LimitedFaysal Bank LimitedMCB Bank LimitedBank Alfalah LimitedSilk Bank LimitedHabib Bank LimitedAskari Bank LimitedZarai Taraqiati Bank LimitedDistributorsBMA Capital Management LimitedPyramid Financial Consultants (Pvt) LimitedTopline Securities LimitedAuditorsA.F. Ferguson & Co., Chartered AccountantsState Life Building No. 1-C, 1.1. Chundrigar Road KarachiLegal AdviserKMS Law Associates207, Beaumont Plaza behind PIDC House, KarachiRegistrarTechnology Trade (Pvt.) LimitedDagia House, 241 C, Block 2, PECHS KarachiFund Stability RatingA+(f)Management Quality RatingAM3

FUND’S INFORMATION

CONTENTS

FUND'S INFORMATION 1

MISSION STATEMENT 2

REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY 3

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES 11

CONDENSED INTERIM INCOME STATEMENT 12

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME 13

CONDENSED INTERIM DISTRIBUTION STATEMENT 14

CONDENSED INTERIM CASH FLOW STATEMENT 15

CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDER'S FUND 16

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS 17

Meezan Bank LimitedFinca Micro Finance Bank LimitedU Micro Finance Bank LimitedTameer Micro Finance Bank LimitedDubai Islamic Bank Pakistan Limited

Icon Securities (Pvt) Ltd.Rabia Fida

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REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY

The Board of Directors of BMA Asset Management Company Limited, the Management Company of BMAChundrigar Road Savings Fund (BCSF), is pleased to present its report and financial statements of the Fundfor the period ended September 30, 2016.

PROFILEThe launch announcement of the BMA Chundrigar Road Savings Fund ("BCSF") was made on 14 August, 2007,Pakistan's 60th year of independence and BCSF was formally launched on 23rd August of the same year. TheBCSF seeks to provide its investors with an attractive rate of return by investing in all fixed income and moneymarket instruments of low risk and medium term duration. The fund's aim is to maintain a rupee-weighted averagematurity for the investment portfolio of not more than 5 years. The benchmark of BCSF is average of one yearKIBOR rate prevailing within the particular time period.

FUND'S FINANCIAL PERFORMANCEDuring the first quarter of FY16, the Fund earned Rs. 8.33 million from income on investments and bank balances.The fund also realized a gain of Rs. 0.13 million on investments and had an unrealized loss of Rs. 0.19 million.Thus the total income earned came to Rs. 8.27 million.

Total expenses for the period came to Rs. 2.55 million. This included remunerations to the trustee of the fund,fee to the SECP, and remuneration to the management company of Rs. 0.22 million, Rs. 0.09 million and Rs.1.73 million, respectively. In addition, the fund booked an element of net loss from the issue and redemption ofunits which totaled Rs. 0.48 million.

As a result the net income for the period was Rs. 5.24 million. September 30,

Financial Highlights 2016 Rupees

Mark up/interest income 8,332,158Gain on investments (NET) 135,506Unrealized Loss on investments (193,722)Total Income 8,273,942Expenses 2,547,257Element of Loss (482,696)Net Income 5,243,988Net Asset Value per unit (Rupees) 8.34

INVESTMENT STRATEGYDuring the quarter, the fund aimed to maintain major exposure in shorter to medium tenor bank deposits to parkfunds at attractive rates and to avoid possible reversal in secondary market yields. By virtue of the foregoingstrategy the fund has generated a superior rate of return while retaining both liquidity and its ability to respondquickly in an uncertain macroeconomic environment. In addition to this, the fund also maintained a nominalexposure in medium term Sovereign Bonds to capitalize any

downward shift in policy rate. As at 30th September, the portfolio duration of the fund was 452 days. This wasin order to optimize benefit from the prevailing adjustments in yield curve.

As at September 30th, 2016, the net assets of the fund were Rs. 418.84 million, 42.30% of these assets wereheld in cash, 28.65% in TDRs, 20.36% in PIBs, 1.17% in Tbills, 1.35% in Sukuk, 5.43% in Spread Transactionand 0.73% recorded as accruals. In line with this asset allocation, the credit quality of the fund remained highwith 32.27% allocated to AAA, 23.50% to A+, 1.35% to A, 35.60 % to A- and 7.28% in unrated instruments.

MISSION STATEMENT

The BMA Chundrigar Road Savings Fund seeks to provide its investors attractive riskadjusted income through investments in fixed income instruments having moderate levelof risk profile. The benchmark of the Fund is an average of one year KIBOR rateprevailing within the particular time period. The Fund will seek to maintain a rupee-weighted average maturity of investment portfolio of not more than 5 years.

VISION STATEMENT

BMA Asset Management seeks to establish itself as a leader within the asset managementindustry of Pakistan by following the principles of prudent investment practice andkeeping our fiduciary responsibility towards our investors as the core belief to ourinvestment philosophy.

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Asset Allocation as on September 30, 2016 Credit Quality: September 30, 2016

RETURN DURING THE PERIOD FOR INVESTORSDuring 1QFY17, the Fund generated an annualized return of 5.03%. For the period under review the fund hasunder perform its bench maric by 1.30%

RECENT DEVELOPMENTSDue to possible reversal in yield curve we have rebalanced BCSF portfolio to avoid interest rate risk and availopportunity of higher deposit rates from leading financial institution, as a result the fund managed to providehandsome return in 1QFY17 and maintain its position in the top quartile among aggressive fixed income fundcategory. We believe that monetary easing cycle is almost over now and no immediate reversal in discount rateexpected till 2H FY17. We have reduced exposure in PIB and gradually increasing exposure in floating rateinstruments. Because of this, the fund's ability to meet redemptions and remain flexible in an uncertainmacroeconomic environment remained intact.

MACROECONOMIC OUTLOOKCPI for Sept'16 clocked in at 3.9%YoY as compared to the corresponding figure of 3.6%YoY (Sept'15 - 1.32%YoY).This translated into an average inflation for 1QFY17 of 3.86% as against the CPI of 1.66% for the same periodlast year. Therefore, the real interest rate for the quarter under review stood at 1.89%. The primary contributorto the quarterly inflation figure was the 4.03%YoY increase in food inflation. Core inflation measured by non-food non-energy CPI during the quarter under review witnessed an upsurge of 4.63%YoY as compared to thesame period last year.

Going forward, we expect the growth in domestic aggregate demand to influence the inflation path in CY17. Thegrowth in aggregate demand is premised on the implementation of CPEC related infrastructural projects whichwill boost the construction and power generation activity in the economy. Furthermore, the relatively low andstable prices of global commodities of which Pakistan is a net importer will also have a positive impact on theexternal sector of the economy. Therefore, keeping in line with the expectations of the State Bank of Pakistan,we envisage a CPI of 4%-4.5% for FY17.

The State Bank of Pakistan maintained the discount rate at 5.75% in 1QFY17; citing possible uptick in domesticaggregate demand based on increased construction and manufacturing sector activity to increase inflation outlookalong with relatively low levels of realized imports and uncertain global economic outlook as reasons behindmaintaining the status quo in the latest monetary policy announcement. Going forward, we expect the State Bankof Pakistan to maintain its cautious stance on monetary easing by factoring in the developments on macroeconomicfront along with the projected path of inflation for the remainder of FY17. The country's foreign exchange ratemaintained its strength during the quarter under review as it traded within the narrow band.

The current account balance position deteriorated significantly for 1QFY17 as it stood in deficit by USD 1.37bn; depicting a decline of 136%YoY. In terms of GDP; the current account deficit widened to -1.7% of GDP for1QFY17 as compared to -0.8% for the same period last year. The widening current account balance was primarilydue to the worsening trade balance as it widened to USD 6.08bn as compared to the deficit of USD 5.11bn inthe corresponding period last year. Workers' remittances which play an integral part in stabilizing the country'sexternal sector have also witnessed a marginal decline of 5.4%YoY to USD 4.69bn in 1QFY17.

One of the positives to emerge for the country's macroeconomic scenario was the foreign exchange reservesas they surged to an all-time high of USD 23.62bn in the quarter ending Sept 30th, 2016. With the successfulconclusion of the 3-year IMF program; it was expected that this might coincide with a fall in the overall reservesof the country but the govt. allayed any concerns regarding the foreign exchanges reserves by successfullyfloating the International Sukuk bond which earned the government more than USD 1 billion and helped inamplifying the reserves to record high levels.

CPI AND INTEREST RATE TREND

STRATEGYIn light of the above macroeconomic scenario, BCSF's strategy is likely to focus on the following;

• Build exposure in high quality, shorter to medium term instruments, keeping in mind an appropriaterisk/reward ratio.

• To transform portfolio allocation largely towards floating rate instruments to avoid interest rate risk.• Decrease duration with the intention of trading in fixed and floating rate instruments to take advantage

of rebound in policy rate.

AcknowledgementThe Board is thankful to its valued investors, the Securities and Exchange Commission of Pakistan, the Trusteesof the Fund, MCB Financial Services Limited and the Registrar, Technology Trade (Pvt) Limited. The Directorsof the Management Company also acknowledge the efforts put in by the team of the Management Companyfor the meticulous management of the Fund.

For and on behalf of the Board

Karachi Khaldoon Bin LatifOctober 26, 2016 Chief Executive Officer

SpreadTransacti

ons, 5.43%Tbills1.17%

TDR, 28.65%

PIB, 20.36%

Cash, 42.30%

Sukuk,1.35%Others,0.74%

A+, 23.50%

AAA, 32.27%

Unrated,7.28%

A, 1.35%A-,35.6%

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SpreadTransacti

ons, 5.43%Tbills1.17%

TDR, 28.65%

PIB, 20.36%

Cash, 42.30%

Sukuk,1.35%Others,0.74%

A+, 23.50%

AAA, 32.27%

Unrated,7.28%

A, 1.35%A-,35.6%

CHUNDRIGAR ROAD SAVINGS FUND

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CHUNDRIGAR ROAD SAVINGS FUNDCONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIESAS AT SEPTEMBER 30, 2016

For BMA Asset Management Company Limited(Management Company)

Khaldoon Bin LatifChief Executive Officer

Salim KhanDirector


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CHUNDRIGAR ROAD SAVINGS FUNDCONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)FOR THE QUARTER ENDED SEPTEMBER 30, 2016



Salim KhanDirector


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CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED)FOR THE QUARTER ENDED SEPTEMBER 30, 2016



Salim KhanDirector

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CONDENSED INTERIM DISTRIBUTION STATEMENT (UN-AUDITED)FOR THE QUARTER ENDED SEPTEMBER 30, 2016



Salim KhanDirector


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CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)FOR THE QUARTER ENDED SEPTEMBER 30, 2016



Salim KhanDirector

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CHUNDRIGAR ROAD SAVINGS FUNDNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSFOR THE QUARTER ENDED SEPTEMBER 30, 2016

1 LEGAL STATUS AND NATURE OF BUSINESS

BMA Chundrigar Road Savings Fund (the Fund) was established in Pakistan under a Trust Deed executedbetween BMA Asset Management Company Limited, as the Management Company and MCB FinancialServices Limited, as the Trustee. The Trust deed was executed and approved by the Securities andExchange Commission of Pakistan (SECP) in accordance with the Non-Banking Finance Companies(Establishment and Regulation) Rules, 2003 (NBFC Rules) on May 18, 2007.

The Management Company of the Fund is licensed to carry out Asset Management Services as a NonBanking Finance Company under the NBFC Rules through a certificate of registration issued by the SECPon December 07, 2007. The registered office of the Management company is situated at 801 Unitower,I.I. Chundrigar Road, Karachi. The Management Company is a member of the Mutual Funds Associationof Pakistan (MUFAP).

The Fund is an open-ended money market mutual fund listed on the Pakistan Stock Exchange. Units ofthe Fund are offered for public subscription on a continuous basis. The units are transferable and can beredeemed by surrendering these to the Fund. The Fund is categorized as an 'Aggressive Fixed IncomeScheme' as per the criteria laid down by SECP for categorization of Collective Investment Scheme (CISs).

The Fund seeks to provide its investors attractive income with concern for preservation of capital byinvesting in all fixed income and money market instruments of low risk and short duration to generateattractive rates of returns.

Pakistan Credit Rating Agency Limited has assigned a rating of A+(f) and AM3 to the Fund and ManagementCompany respectively.

Title to the assets of the Fund is held in the name of MCB Financial Services Limited as Trustee of theFund.

2 STATEMENT OF COMPLIANCE

2.1 Statement of Compliance

These financial statements have been prepared in accordance with the approved accounting standardsas applicable in Pakistan. Approved accounting standards comprise of such International Financial ReportingStandards (IFRSs) issued by the International Accounting Standards Board as are notified under theCompanies Ordinance, 1984, the requirements of the Trust Deed, the Non-Banking Finance Companies(Establishment and Regulation) Rules, 2003 (the NBFC Rules), the Non-Banking Finance Companies andNotified Entities Regulations, 2008 (the NBFC Regulations) and directives issued by the SECP. Whereverthe requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations or directives issued by theSECP differ with the requirements of IFRSs, the requirements of the Trust Deed, the NBFC Rules, theNBFC Regulations or the directives issued by the SECP prevail.

The disclosures made in this condensed interim financial Statements have, however, been limited basedon the requirements of the International Accounting Standard 34: ‘Interim Financial Reporting’. Thiscondensed interim financial information does not include all the information and disclosures required in afull set of financial statements and should be read in conjunction with the annual published financialstatement of the Fund for the year ended June 30, 2016.

In compliance with schedule V of the NBFC Regulations, the directors of the Management Company herebydeclare that this condensed interim financial statements gives a true and fair view of the state of the Fund’saffairs as at September 30, 2016.


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CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND (UN-AUDITED)FOR THE QUARTER ENDED SEPTEMBER 30, 2016



Salim KhanDirector

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CHUNDRIGAR ROAD SAVINGS FUNDCHUNDRIGAR ROAD SAVINGS FUND

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2.2 Standards, interpretations and amendments to published approved accounting standards, that are effectivein the current period:

The following standard is mandatory for the financial year beginning on or after July 01, 2015 and is relevantto the Fund:

IFRS 13 'Fair Value Measurement' establishes a single framework for measuring fair value and makingdisclosures about fair value measurements when such measurements are required or permitted by otherIFRS. It unifies the definition of fair value as the price that would be received to sell an asset or paid totransfer a liability in an orderly transaction between market participants at the measurement date. It replacesand expands the disclosure requirements about fair value measurements in other IFRSs, including IFRS7 'Financial Instruments: Disclosures'. Notwithstanding the above, the change had no significant impactson the measurements of the Fund's assets and liabilities.

There are other amendments to the standards and new interpretations that are mandatory for accountingperiods beginning on or after July 1, 2015 but are considered not to be relevant or do not have any significanteffect on the Fund's financial statements and are, therefore, not detailed in these financial statements.

2.3 Standards, interpretations and amendments to published approved accounting standards that are not yeteffective:

There are certain amendments to the existing published approved accounting standards, new interpretationsand certain new standards that are mandatory for accounting periods beginning on or after July 01, 2016but are considered not to be relevant or will not have any significant effect on the Fund's financial statementsand are, therefore, not disclosed in these financial statements.

3 SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied in the preparation of this condensed interim financial statements are thesame as those applied in the preparation of the annual published financial statements of the Fund for theyear ended June 30, 2016.

The preparation of this condensed interim financial statements in conformity with approved accountingstandards requires management to make estimates, assumptions and use judgments that affect theapplication of policies and reported amounts of assets and liabilities and income and expenses. Estimates,assumptions and judgments are continually evaluated and are based on historical experience and otherfactors, including reasonable expectations of future events. Revisions to accounting estimates are recognisedprospectively commencing from the period of revision.

The significant judgments made by management in applying the accounting policies and the key sourcesof estimation uncertainty were the same as those that were applied to the financial statements as at andfor the year ended June 30, 2016.

The financial risk management objectives and policies are consistent with those disclosed in the annualfinancial statements of the Fund for the year ended June 30, 2016.

3.1 NET ASSETS VALUE PER UNIT

The net asset value per unit as disclosed in the Statement of Assets and Liabilities is calculated by dividingthe net assets of the Fund by the number of units in circulation at the year end.

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8.1 The Management company is entitled to remuneration for services rendered to the Fund under Regulation61 of the Non-Banking Finance Companies and Notified Entities Regulations, 2008, of an amount notexceeding 3 percent of the average daily net assets of the Fund during the first five years of the Fund'sexistence and thereafter of an amount equal to 2 percent of such assets of the Fund. The rate used bythe Management company (and the Fund) is 1.5 % (2015: 1.5%) per annum of the average daily net assetsof the Fund as disclosed in the offering document.

8.2 Sindh sales tax at the rate of 13% September 30, 2016 (14%:June 30, 2016) is payable on the remuneration of the Management Company.

8.3 As per the requirements of the Finance Act 2013, Federal Excise Duty (FED) at the rate of 16% on theremuneration of the Management Company had been applied effective June 13, 2013. The ManagementCompany was of the view that since the remuneration is already subject to the provincial sales tax, furtherlevy of FED results in double taxation, which does not appear to be the spirit of the law. The matter wascollectively taken up by the Management Company jointly with other Asset Management Companiestogether with their respective Collective Investment Schemes through their trustees, through a ConstitutionalPetition filed in the Honourable Sindh High Court (SHC) during September 2013 challenging the levy ofFED. In this respect, the SHC issued a stay order against the recovery of FED. However, the Fund, as amatter of abundant caution, had made full provision in respect of FED.

Subsequent to the year ended June 30, 2016, the SHC in July 2016 has passed an order whereby allnotices, proceedings taken or pending, orders made, duty recovered or actions taken under the FederalExcise Act, 2005 in respect of the rendering or providing of services (to the extent as challenged in anyrelevant petition) have been set aside.

Further, with effect from July 1, 2016, FED on services provided or rendered by non-banking financialinstitutions dealing in services which are subject to provincial sales tax has been withdrawn by the FinanceAct, 2016.

In view of the above, the Fund has discontinued making further provision in respect of FED on managementfee from July 01, 2016. However, the provision made till June 30, 2016, aggregating to Rs. 2.403 million

has not been reversed as the Federal Government has filed an appeal against the said order in the SupremeCourt which is pending adjudication. Had the provision not been made, the Net Asset Value per unit of theFund as at September 30, 2016 would have been higher by Re 0.048 per unit.


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11.1 Provision for Workers' Welfare Fund

11.1.1 The Finance Act, 2008 had introduced an amendment to the Workers' Welfare Fund Ordinance, 1971(WWF Ordinance). As a result of this amendment it was construed that all Collective Investment Schemes/ mutual funds (CISs) whose income exceeded Rs 0.5 million in a tax year, had been brought within thescope of the WWF Ordinance, thus rendering them liable to pay contribution to WWF at the rate of twopercent of their accounting or taxable income, whichever is higher. In this connection, a constitutionalpetition was filed by certain CISs through their trustees in the Honorable High Court of Sindh (the Court),challenging the applicability of WWF to the CISs, which is pending adjudication.

During the year ended June 30, 2011, a clarification was issued by the Ministry of Labour and Manpower(the Ministry) which stated that mutual funds are not liable to contribute to WWF on the basis of theirincome. However, on December 14, 2010, the Ministry filed its response against the constitutional petitionrequesting the Court to dismiss the petition. According to the legal counsel who is handling the casethere is a contradiction between the aforementioned clarification issued by the Ministry and the responsefiled by the Ministry in the Court.

During the year ended June 30, 2012, the Honourable Lahore High Court (LHC) in a ConstitutionalPetition relating to the amendments brought in the WWF Ordinance, 1971 through the Finance Act, 2006and the Finance Act, 2008, had declared the said amendments as unlawful and unconstitutional. InMarch 2013, a larger bench of the Honourable Sindh High Court (SHC) passed an order declaring thatthe amendments introduced in the WWF Ordinance, 1971 through the Finance Act, 2006 and the FinanceAct, 2008 do not suffer from any constitutional or legal infirmity. However, the Honourable High Courtof Sindh has not addressed the other amendments made in the WWF Ordinance, 1971 about theapplicability of WWF to the CISs which is still pending before the Court.

In a judgment of May 2014, the Honourable Peshawar High Court (PHC) has also held these amendmentsto be ultra vires as they lacked the essential mandate to be introduced and passed through the MoneyBill under the Constitution.

The Finance Act, 2015 has excluded Mutual Funds and Collective Investment Schemes from the definitionof 'Industrial establishment' subject to WWF under WWF Ordinance, 1971. Accordingly, no furtherprovision for WWF has been made from July 01, 2015. The provision made till June 30, 2015 amountingto Rs. 0.143 million has not been reversed as the above law suit is still pending in the SHC. Had thesame not been made the Net Asset Value per unit of the Fund as at September 30, 2016 would havebeen higher by Rs 0.003 (2015: Rs 0.006) per unit.

12 CONTINGENCIES AND COMMITMENTS

There were no other contingencies and commitments outstanding as at September 30, 2016 and June30, 2016.

13 TAXATION

The Fund's income is exempt from Income Tax as per clause (99) of part I of the Second Schedule tothe Income Tax Ordinance, 2001 subject to the condition that not less than 90% of the accounting incomefor the year as reduced by capital gains whether realised or unrealised is distributed to the unit holders.The Fund is also exempt from the provisions of section 113 (minimum tax) under clause 11A of Part IVof the Second Schedule to the Income Tax Ordinance, 2001. The management has distributed at least90% of the net accounting income earned by the Fund to the unit holders. Accordingly, no provision forcurrent and deferred tax has been made in these financial statements.


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9.1 The Trustee is entitled to a monthly remuneration for services rendered to the Fund under the provisionsof the Trust Deed as per the tariff specified therein, based on the daily net assets of the Fund.

10.1 Under the provisions of the Non-Banking Finance Companies and Notified Entities Regulations, 2008,acollective investment scheme categorised as 'Aggressive Fixed Income Scheme' is required to pay asannual fee to the SECP, an amount equal to 0.075 percent of the average annual net assets of the scheme.The Fund has been classified as an Aggressive Fixed Income Scheme by the Management Company.

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17 DATE OF AUTHORISATION FOR ISSUE

These condensed financial statements were authorised for issue by the Board of Directors of the ManagementCompany on October 26, 2016 .

18 GENERAL

Figures have been rounded off to the nearest rupee.



Salim KhanDirector


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14 EARNING PER UNIT

Earnings per unit (EPU) for the year ended June 30, 2016 has not been disclosed as in the opinion ofthe management, determination of weighted average units for calculating EPU is not practicable.

15 TOTAL EXPENSE RATIO

In accordance with regulation 60 (5) of the ammended NBFC Regulations 2008 the Total Expense Ratio(excluding government levies) of a money market fund is to be capped at 2% of the daily average netassets of the fund during the period. The Total Expense Ratio of BMA Chundrigar Road Savings Fundfor the quarter ended September 30,2016 is 2.19% which includes 0.29% representing governmentlevies and SECP fees.

16 TRANSACTIONS WITH CONNECTED PERSONS

16.1 Related parties / Connected persons include BMA Asset Management Company Limited (the ManagementCompany), BMA Asset Management Company Limited Staff Provident Fund, BMA Empress Cash Fund,BMA Capital Management Limited (the holding company of the Management Company), BMA FinancialServices Limited and the Trustee, MCB Financial Services Limited. Transactions with connected personscan be summarised as follows:

16.2 Remuneration to the Management Company and the Trustee is determined in accordance with theprovisions of the NBFC Regulations and the Trust Deed.

16.3 Details of the transactions with connected persons are as follows:

Documents

CHUNDRIGAR ROAD SAVINGS FUND CHUNDRIGAR ROAD …bmafunds.com/FINR/Chundrigar-fund-2.pdf · 1.73 million, respectively. In addition, the fund booked an element of net loss from the