Dubbed Pakistan’s most amazing money manager, Maheen remains bullish on future
Alfalah GHP CEO recently featured on Fortune’s list of ‘40 Under 40’s women to watch’
PHOTO: BLOOMBERG
KARACHI:
It wasn’t long ago when the financial industry was reeling from the aftershocks of the global meltdown in 2008.
It was a time when the Karachi Stock Exchange (KSE) suffered temporary closure and thousands of small investors lost billions. It led MSCI to remove Pakistan from the Emerging Markets and classify it as a “standalone country index” before it was made a part of the Frontier Markets Index in May 2009. It has remained as such since then.
Pakistan ranks third in Islamic finance awards
However, the market seems to have come a long way since 2008, with Pakistan expecting to re-join the ranks of the MSCI Emerging Markets Index soon enough.
The integration of the country’s three stock exchanges into one entity, coupled with increased confidence in the economy than before have led many to place faith in Pakistan.
This confidence is shared by Alfalah GHP Investment Management CEO Maheen Rahman, who said conditions are contrastingly different from what they were back then.
Citi CEO expects Pakistan to have ‘great economic growth’
Backed by the Extended Fund Facility (EFF) of the IMF, Pakistan seems to have consolidated. With a fair amount of checks and balances in place, which are reviewed by the IMF, the economy is growing.
“Economy-wise, we are doing well – inflation is low, interest rate is low and investment levels are on the rise,” said Rahman, who featured in Fortune’s list of “40 Under 40’s women to watch: 10 female execs on the rise” last month.
Her claim to fame has been the performance of Alfalah GHP that has a market share of 5.6% in terms of private sector assets under management (open end funds).
World Bank paints mixed picture of economy
“Last year, total client assets amounted to Rs10 billion – this year it’s Rs22 billion.
“A lot of people think the stock market is the real money-maker, but any asset management firm would know that careful selection of bond fund should be the main focus.”
An asset management company typically allocates funds to high-, moderate- and low-risk investment avenues based on individuals’ risk tolerance and return expectations.
Explaining her company’s growth in the last year, Rahman credited successful utilisation of the fixed income market. “Additionally, key areas that helped boost client assets were products that yielded high returns and effective distribution ways, especially various bank channels.”
Moody’s changes Pakistan’s banking system outlook to ‘stable’
Rahman asserted that globally, the stock market is undergoing a transition period and commodity prices are adjusting hence, its effects will be felt in the local level as well.
“In such times, stock selection is critical and it is safer to stick to retail and construction shares rather than oil.”
Young aspirants
Pakistan’s corporate world though may not be as intense as the Wall Street, but it still requires certain panache from young entrants who wish to make it big in the industry.
Rahman said the key ingredient for success is in-depth technical knowledge of your field.
Consumer sector’s profit grows 58%: report
“Financial industry may not be too restrictive, but it does require a certain skill-set that becomes an automatic advantage for young applicants.”
Additionally, according to Rahman, one of the main determinants of success lies in one’s choice of role. “One should always aim for front-line positions and aim to be in the revenue generation area, it is impossible to succeed unless you are at the heart of the business.”
Rahman admitted the market is tough, employers look for candidates that offer the best potential and competition is fierce. “But the key is to sell yourself as a person, convince the employers that they need you.
“Good human resource is limited in this country, if an employer values your skill set they will retain you.”
Pakistan slips in WEF competitiveness rankings
Women’s role
But there is one additional reason Rahman has come under the spotlight.
Women in the financial sector are a rare occurrence – women in leadership positions are rarer still.
Rahman says it is probably because few tend to stick to their careers as other commitments take over.
Rahman, a mother of three, says employers do not shy away from hiring women as long as they can prove their worth.
“It’s what you give in. If young mothers can work around the barriers and find a place they are comfortable in, they should definitely do it.”
However, Rahman refuted that there are hurdles for women in the workplace, stating that it was the individual capacity that made the difference.
“At the end of the day, your performance counts. It’s about what kind of a leader you are and how your company and employees are performing.”
The writer is a staff correspondent
Published in The Express Tribune, November 23rd, 2015.
It wasn’t long ago when the financial industry was reeling from the aftershocks of the global meltdown in 2008.
It was a time when the Karachi Stock Exchange (KSE) suffered temporary closure and thousands of small investors lost billions. It led MSCI to remove Pakistan from the Emerging Markets and classify it as a “standalone country index” before it was made a part of the Frontier Markets Index in May 2009. It has remained as such since then.
Pakistan ranks third in Islamic finance awards
However, the market seems to have come a long way since 2008, with Pakistan expecting to re-join the ranks of the MSCI Emerging Markets Index soon enough.
The integration of the country’s three stock exchanges into one entity, coupled with increased confidence in the economy than before have led many to place faith in Pakistan.
This confidence is shared by Alfalah GHP Investment Management CEO Maheen Rahman, who said conditions are contrastingly different from what they were back then.
Citi CEO expects Pakistan to have ‘great economic growth’
Backed by the Extended Fund Facility (EFF) of the IMF, Pakistan seems to have consolidated. With a fair amount of checks and balances in place, which are reviewed by the IMF, the economy is growing.
“Economy-wise, we are doing well – inflation is low, interest rate is low and investment levels are on the rise,” said Rahman, who featured in Fortune’s list of “40 Under 40’s women to watch: 10 female execs on the rise” last month.
Her claim to fame has been the performance of Alfalah GHP that has a market share of 5.6% in terms of private sector assets under management (open end funds).
World Bank paints mixed picture of economy
“Last year, total client assets amounted to Rs10 billion – this year it’s Rs22 billion.
“A lot of people think the stock market is the real money-maker, but any asset management firm would know that careful selection of bond fund should be the main focus.”
An asset management company typically allocates funds to high-, moderate- and low-risk investment avenues based on individuals’ risk tolerance and return expectations.
Explaining her company’s growth in the last year, Rahman credited successful utilisation of the fixed income market. “Additionally, key areas that helped boost client assets were products that yielded high returns and effective distribution ways, especially various bank channels.”
Moody’s changes Pakistan’s banking system outlook to ‘stable’
Rahman asserted that globally, the stock market is undergoing a transition period and commodity prices are adjusting hence, its effects will be felt in the local level as well.
“In such times, stock selection is critical and it is safer to stick to retail and construction shares rather than oil.”
Young aspirants
Pakistan’s corporate world though may not be as intense as the Wall Street, but it still requires certain panache from young entrants who wish to make it big in the industry.
Rahman said the key ingredient for success is in-depth technical knowledge of your field.
Consumer sector’s profit grows 58%: report
“Financial industry may not be too restrictive, but it does require a certain skill-set that becomes an automatic advantage for young applicants.”
Additionally, according to Rahman, one of the main determinants of success lies in one’s choice of role. “One should always aim for front-line positions and aim to be in the revenue generation area, it is impossible to succeed unless you are at the heart of the business.”
Rahman admitted the market is tough, employers look for candidates that offer the best potential and competition is fierce. “But the key is to sell yourself as a person, convince the employers that they need you.
“Good human resource is limited in this country, if an employer values your skill set they will retain you.”
Pakistan slips in WEF competitiveness rankings
Women’s role
But there is one additional reason Rahman has come under the spotlight.
Women in the financial sector are a rare occurrence – women in leadership positions are rarer still.
Rahman says it is probably because few tend to stick to their careers as other commitments take over.
Rahman, a mother of three, says employers do not shy away from hiring women as long as they can prove their worth.
“It’s what you give in. If young mothers can work around the barriers and find a place they are comfortable in, they should definitely do it.”
However, Rahman refuted that there are hurdles for women in the workplace, stating that it was the individual capacity that made the difference.
“At the end of the day, your performance counts. It’s about what kind of a leader you are and how your company and employees are performing.”
The writer is a staff correspondent
Published in The Express Tribune, November 23rd, 2015.