A memorandum of understanding has been signed for the establishment of a new joint asset management and financial services company called Emerging Investment Company. The venture is the first of its kind to be set up by the private sector.

The shareholders are the local National Investment Trust (NIT), the Hong Kong-based Regent Pacific Group and Al-Faysal Investment Bank, part of Saudi Arabia's Dar Al-Maal Al-Islami Trust (DMI). NIT is taking a 50 per cent stake in the new company, which will have an authorised capital of Rs 200 million ($6.5 million). The other partners will each have a 25 per cent holding.

Emerging Investment Company plans to launch an Rs 500 million ($16.3 million) closed-end fund in early 1995; it will also float open-end investment vehicles in the future. The government-owned NIT has been the only open- ended mutual fund to operate locally until now. 'Backed by a strong equity culture and high corporate earnings, Pakistan represents a unique opportunity for investment,' says Regent Pacific director Jayne Sutcliffe.