Escolar Documentos
Profissional Documentos
Cultura Documentos
M. Fahad Mehmood
Question No 1: Pick up any mutual fund in Pakistan and provide summary based on
information memorandum or prospectus etc.
1. Definition:
A Mutual Fund is a pool of money that gives investors access to a well-diversified portfolio of
stocks, bonds, and other securities. The fund's net asset value (NAV) is determined each day and
is posted on the respective Asset Management Company's website on a daily basis.
2. Regulator:
Mutual Funds Association of Pakistan (MUFAP) is the trade body for Pakistan's multi billion
rupees asset management industry. The money MUFAP members manage is in a wide variety of
investment vehicles including stocks, bonds, money market instruments, government securities
and bank deposits. MUFAP role is to ensure transparency, high ethical conduct and growth of the
mutual fund industry.
Recently, Central Depository Company of Pakistan Limited (CDCPL) has been appointed as the
new Trustee of NIUT Fund with the approval of Regulatory Authority.
4.2 Duration
The duration of the Fund is perpetual. However, SECP or the Management Company may wind it
up or revocate on the occurrence of certain events as specified in the Regulations or the Trust
Deed.
NIUT Fund shall be authorized to invest in the following investment instruments and in the manner
mentioned below in Authorized Investments. :
Authorized Investment Min Exposure Limit Max Exposure Limit
Investments Instrument
No.
1 Listed equity 70%* 100%
securities. during the year based on during the year based on
quarterly average investment quarterly average investment
calculated on a daily basis calculated on a daily basis
2 Treasury bills not 0% 30%
exceeding 90 days during the year based on during the year based on
maturity and cash or quarterly average investment quarterly average investment
near term cash calculated on a daily basis calculated on a daily basis
instruments
including cash in
Bank accounts
(excluding TDRs).
The rating of banks
shall be BBB+ or
above
3 Equity security not 0% 15%
listed on the Stock
Exchange, where
application for
listing has been
accepted by the
Stock Exchange.
FY 10 FY 11 FY 11 FY 13 FY 14
NI(U)T Return (%) 17.92% 24.00% 7.57% 58.42% 56.98%
KSE 100 Index Return 35.74% 28.54% 10.45% 52.20% 41.16%
(%)
Dividend Per Unit (Rs.) 2.25 4.00 3.50 3.75 4.10
Net Assets at year end 30.16 40.46 41.48 47.29 59.90
(Rs. in billion)
NAV at year End 28.17 32.14 30.27 42.41 60.69
4.7 Auditors
The auditors of NIUT are KPMG TASEER HADI & CO.
Front-end Load
Front end Load is a part of Sales Load which may be included in the offer price of the Units. The
remuneration of Distributors shall be paid from such Load and if the Front-end Load is insufficient
to pay the remuneration of the Distributors, the Management Company shall pay the amount
necessary to pay in full such remuneration and no charges shall be made against the Fund Property
or the Distribution Account in this respect. Such payments may be made to the Distributors by the
Management Company upon the receipt from the Trustee.
Back-end Load
Back end Load deducted from the Net Asset Value in determining the Redemption Price; provided
however that different levels of Back-end Load may be applied to different classes of Units, but
Unit Holders within a class shall be charged same level of back end load. Management Company
may change the current level of Back-end Load after giving 90 days prior notice to the Unit Holder
through newspaper (either Urdu or English Newspaper) and via post and the unit holders shall be
given an option to exit at the applicable NAV without charge of back end load as specified in the
Regulation.