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Alfalah GHP Pension Fund

This Term Sheet is developed to reflect basic features of the Fund and is not intended to be used as a substitute to Fund’s Offering Document. For details on the product (including risk factors and disclaimers), kindly refer to the Constitutive Documents of the Fund, once available.

Investment Objective

Alfalah GHP Pension Fund is a pension fund that aims to provide a secure source of savings and regular income after retirement to the Participants.

Fund Structure

Unit Trust Scheme consisting of Sub-Funds under the VPS Rules 2005.

Sub Funds

Alfalah GHP Pension Fund will initially consist of three Sub-Funds, to be called “AGPF Equity Sub-Fund” (the “Equity Sub-Fund”), “AGPF Debt Sub-Fund” (the “Debt Sub-Fund”) and “AGPF Money Market Sub-Fund” (the “Money Market Sub-Fund”)

Investment Strategy

The Pension Fund Manager shall design investment strategy to optimize returns on investments within the parameters of Investment Policy specified by the Commission. The Pension Fund Manager shall also offer different Allocation Schemes to Participants to choose from, allowing them to adopt an investment strategy, according to their risk / return requirements

Minimum Contribution

The minimum amount of Contribution to open an account is Rs. 1,000/- and the minimum amount of contribution to an existing account is Rs.500/- per transaction. There is no maximum limit of contribution. However, Tax Credit will be available to the extent specified in the Income Tax Ordinance, 2001.

Contribution Frequency

Annual, semi-Annual, quarterly or monthly or as desired by the participant.

Contribution Mechanism

Cheque, bank draft, pay order (crossed account payee only), titled “CDC – Trustee Alfalah GHP Pension Fund” payable to the Trustee on any Dealing Day. Any other electronic form of Transfer as may be acceptable to the Pension Fund Manager and the Trustee. Contribution in the form of Cash or any bearer instruments shall not be made and accepted.

Investment Mechanism

Insurance premium (for optional Insurance covers) shall be deducted from Contributions made by the Participant, followed by deduction unless waived of applicable Front-end Fee. The remaining Contribution amount is then credited to the Participant’s Individual Pension Account and is invested in the underlying Sub-Funds of the Alfalah GHP Pension Fund (AGPF) as per the Allocation Scheme selected by the Participant. Front-end Fee and Insurance premium will be transmitted in the name of Pension Fund Manager and specified Insurance Company respectively.

Allocation Schemes

Allocation Scheme Equity Sub-Fund Debt Sub-Fund Money Market Sub-Fund
High Volatility Min 65% Min 20% Nil
Medium Volatility Min 35% Min 40% Min 10%
Low Volatility Min 10% Min 60% Min 15%
Lower Volatility Nil Min 40% Min 40%
Customized 0-100% 0-100% 0-100%

Reallocation Policy

Units held in the Individual Pension Account shall be reallocated by the Pension Fund Manager between the SubFunds at least once a year to ensure that the allocation of Units of all Participants is in line with the Allocation Scheme selected by them.

Management Fee

1.5 % p.a. on average Net Assets of each Sub-Fund.

Front End Fee

Maximum of 3 % on all Contributions, unless exempt under this Offering Document.

Taxation

Tax Credit will be available to Participants on contributions during any Tax Year subject to the limits prescribed under Income Tax Ordinance 2001 (XLIX of 2001).

Early Withdrawal

Participants at any time before retirement are entitled to redeem the whole or any part of the Units held to their credit in their Individual Pension Account. Tax may be applicable in accordance with the requirements of the Income Tax Ordinance, 2001 and, if applicable, will be deducted by the Pension Fund Manager from the amount withdrawn.

Transparency

Daily calculation and announcement of NAV of each Sub-fund.

Distribution Restriction

Any income earned shall be retained and accumulated in the respective sub-funds and no distribution / Dividend shall be made from the Pension Fund.

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