Trustee & Custodial Services

Trustee & Custodial Services

Introduction

In the early 2000s, the Mutual Fund industry started flourishing in the Pakistan Capital Market and provided a new concept and investment arena to retail and individual investors who possess inadequate knowledge of the capital market but are interested in utilizing its benefits. CDC recognizing the potential of this industry sector, launched Trustee & Custodial Services in 2002, initially with two open-ended mutual funds with net assets value of Rs. 500 million.

Currently, we are acting as a Trustee with 88% market share in terms of number of Funds and 96% market share in terms of the Net Assets in various categories of Mutual Fund in Pakistan. The Company, through its proactive approach and high standards of service, has become the market leader of the Mutual Fund Industry.

Categories of Funds

As a Trustee & Custodian, CDC takes into its custody all the assets of the Collective Investment Scheme/Pension funds and holds them in trust on behalf of the Unit holders/Participants and carries out instructions of Asset Management Companies (AMCs)/Pension Fund Managers (PFMs) in respect of the investment portfolio while ensuring Regulatory Compliances, protecting Unit Holder interests and maintaining confidentiality & integrity in all manner.

In addition to this, CDC is providing its Trustee & Custodian services for specialized nature of CIS, which include REIT Schemes, Exchange Traded Funds and Private Equity Funds. The REIT Scheme, i.e. Dolmen City REIT, is not the only Listed REIT in Pakistan but the first ever Rental REIT Scheme in South Asia.

Discretionary and Non-Discretionary Portfolio

Keeping a keen view of the financial market and having understanding of the underlying demand for swift financial services, CDC has developed its custody operations for employees benefit funds, high net worth individuals and Separately Managed Corporate Portfolios.

Scope of Services

The services provided by CDC as the Trustee/Custodian mainly includes:

  • Settlement of Investments including Equity, Debt, Money, and Commodity Markets
  • Facilitation to Unit holders with regards to the issuance and redemption of units
  • Taking Nominal Ownership of the Assets of the mutual funds
  • Compliance with Regulatory Requirements
  • Issuance of Trustee Report