Jahangir Siddiqui & Company Limited.
Jahangir Siddiqui & Co. Ltd. is the largest publicly quoted securities firm and corporate finance house in Pakistan with Rs.918.2 million in equity capital and assets of Rs.1,587.1 million as at June 30, 2002.
The presence of JSCL has been widely felt in corporate circles due to its role in Pakistan's financial markets by encouraging domestic and international investor's participation and new product innovation. JSCL was not only the first corporate securities firm in Pakistan but also the first company in Pakistan to boast a Wall Street pedigree by virtue of its former joint venture partner Bear Stearns, a leading international investment banking and securities firm. JSCL has achieved many significant milestones including being the sole domestic financial advisor to the Hub Power Co. Ltd.'s equity offering (acclaimed by "Asiamoney" as the 1994 Deal of the Year) and assisting its former joint venture partner, Bear Stearns, in the Government of Pakistan's first sovereign Eurobond offer of US$150 million.
JSCL is the highest rated securities firm with a long-term credit rating of AA (Double A) and a short term rating of A1+ (A one plus) by Pakistan Credit Rating Agency (Pvt.) Ltd. JSCL has four major business groups that are equity sales and investment advisory, fixed income and foreign exchange trading, research, and corporate finance. JSCL is the recipient of the "Euromoney Award for Excellence 2000" for the "Best Domestic Securities House" in Pakistan. JSCL has also received the KSE Top 25 Companies Award in 1998. JSCL has also achieved the Best Annual Report Award for the years 2000 and 2001 presented by the Institute of Chartered Accountants of Pakistan and the Institute of Cost and Management Accountants of Pakistan for the Service sector.
Business Description of the Company
JSCL is engaged in the securities industry of Pakistan and has four major business segments including:
(i) equities, (ii) money and bond markets; (iii) corporate finance, (iv) research and fund management.
Equities: JSCL's Equity Sales skills are recognized as being amongst the finest in Pakistan, providing our clients with unmatched service in all aspects of broking. This ranges from the timely analysis and processing of information through our Research Department, speedy execution of client orders and finally prompt and punctual settlement of all trades, no matter what the size. Even though JSCL has been associated with various international companies in the past, it has retained its unique ability of being able to understand and provide information from a perspective that can be understood by both domestic and foreign clients alike.
Money and Bond Markets: JSCL's Money and Bond Markets team is categorized into three groups, the first group, which services commercial banks, the second, which services non-banking financial institutions, and a third which services our expanding client base of insurance companies, employee funds, mutual funds, corporate clients and high net worth individuals. The team's primary role is to structure transactions catering to the client's specific requirements as well as providing portfolio management advisory. On the USD side we are amongst the top three foreign exchange brokerage houses of the inter-bank market, in terms of volume. Total volume for FY 2000-2001 was in excess of USD 1,095.65 billion.
Corporate Finance: The Company's Corporate Finance team assists public and private sector entities, financial institutions, multinational corporations, and domestic and international institutional investors in underwriting, private placements, and advisory assignments. Advisory assignments include raising finances through the domestic capital markets either in the form of equity or debt, mergers and acquisitions, delisting and privatization advisory.
The members of this department have varied experience in transactions both domestically and internationally, and have been involved on transactions ranging from privatization to financial advisory. JSCL has brought to the market many listed transactions, the most significant being Hub Power Co. Ltd. where JSCL acted as exclusive domestic financial advisor. JSCL is the leader in market making of corporate fixed income securities i.e. Term Finance Certificates.
Research and Fund Management: JSCL can be credited for successfully introducing and popularizing the use of equity research in the Pakistani market and has set the trend of using macroeconomic and technical analyses aimed at providing multiple insights on short-term and long term market-moving events for the benefit of our institutional and retail clients. We believe that the JSCL's research database system, developed in-house, is already one of the best in the industry. The Research Department is the Pakistan Correspondent for the Standard & Poor's Emerging Markets Database We regard research as the knowledge base of the firm that provides proactive analysis on the underlying market and sectoral earning drivers that are subsequently quantified and translated into stock-specific money-generating investment ideas for our customers.
The JSCL Group
Jahangir Siddiqui & Co. Limited holds majority shareholding in the following subsidiary companies.
Jahangir Siddiqui Investment Bank Limited ("JSIBL")
JSCL acquired 60% of Citicorp Investment Bank (Pakistan) Limited in September 1999 and renamed the firm Jahangir Siddiqui Investment Bank Limited ("JSIBL" or "the Bank"). The Bank was previously a subsidiary of Citibank Overseas Investment Corporation who held 60% equity in the Bank. As at June 30, 2002, the shareholders' equity of JSIBL stood at Rs.359.91 million and total assets at Rs.964.33 million. The Bank mobilizes funds through issue of Certificates of Investments ("COIs) to individual investors, corporate clients and financial institutions. The funds mobilized are utilized in providing short-term financing to corporate clients. The Bank is also active in both equity and money market by entering into repo and reverse repo transactions. JSIBL has been assigned a long term rating of "A" ("single A") and short term rating of "A1" ("A one") by Pakistan Credit Rating Agency (Pvt.) Limited ("PACRA").
ABAMCO Limited (ABAMCO) is the largest asset management company in Pakistan's private sector. It was incorporated on February 22 1995 and was registered as an investment advisor and an asset management company with the Securities and Exchange Commission of Pakistan (SECP) on February 27, 1995 and August 29, 1995 respectively. ABAMCO manages assets in excess of Rs.4.5 billion (December 2002) on behalf of provident, pension and gratuity funds, welfare organizations, insurance companies, banks, non-banking financial institutions and thousands of individual investors. The joint venture partners of ABAMCO Limited are Jahangir Siddiqui & Co. Limited (54.98%), AMVESCAP Plc. (16.48%), International Finance Corporation (10.99%), Muslim Commercial Bank Limited (6.98%), Saudi Pak Commercial Bank Limited (5.50%) and individuals (5.07%).
ABAMCO is presently managing 16 mutual funds. Thirteen of these are closed-end and 3 are open-ended. The closed end funds are the BSJS Balanced Fund Limited (BBF) and 12 funds of Investment Corporation of Pakistan (ICP), whose management rights were acquired by ABAMCO Limited in October 2002 as ICP Lot "A" under Privatization Commission's letter Ref.: 2(9)Bkg/ PC/97 dated October 5, 2002. The open-ended mutual funds comprise of Unit Trust of Pakistan (UTP), ABAMCO's flag ship fund, UTP--Income Fund (UTP-IF), ABAMCO's second open-ended mutual fund and UTP-Islamic Fund, Pakistan's first Shariah compliant fund.