Shariah Compliant Capital Protected Fund

NAFA Islamic Principal Preservation Fund

Term Sheet - NAFA Islamic Principal Preservation Fund

1. Brief information on the Fund

NAFA Islamic Principal Preservation Fund is a Shariah-compliant Principal Preservation Fund launched by NBP Fullerton Asset Management Limited, which aims to grow the value of the Unit holders’ investments over the long term in approved Shariah compliant equity related, and Shariah compliant income/ money market Collective Investment Schemes, while providing principal preservation of initial investment value at Initial Maturity date.

The product is suitable for those investors who want to seek capital appreciation that adheres to Shariah principles along with principal preservation.

2. Key benefits

  • No lock-in period while, capital preservation is at the end of initial maturity (2 years) and beyond;

  • Exposure to Shariah Compliant Equities with Capital Preservation;

  • Profit lock-in feature available

  • Tax credit as per the Income Tax Ordinance, 2001.

  • Professional Fund Management;

3. Key features of the Fund

Fund Category / Type Open Ended Shariah Compliant Fund of Funds
Investment Objective The objective of NAFA Islamic Principal Preservation Fund is to earn a potentially high return through dynamic asset allocation between Shariah compliant equity related, and Shariah compliant income/ money market Collective Investment Schemes, while providing principal preservation.
Benchmark The Benchmark for the Fund shall be weighted average daily return of KMI-30 Index and saving rates of Islamic banks or Islamic windows of scheduled Islamic banks based on the Fund’s actual proportion in the Equity & Money Market Components.
Investment Strategy The Fund is dynamically allocated between the Equity Component and Money Market Component by using the Constant Proportion Portfolio Insurance (CPPI) Methodology. Allocation to Equity Component is generally increased in case where the equity markets are rising, while allocation to the Money Market Component is generally increased if the equity markets.
Authorized Investments Authorized Investments Allocation (Min % - Max %)
Equity Component:
Shariah compliant Equity, Asset Allocation Scheme, Balanced or any other equity related Shariah compliant schemes

0% - 100%
Money Market Component:
I. Shariah compliant Income / Money Market Scheme(s) offered by the Management Company.
II. Shariah compliant bank deposits (excluding TDRs) in Islamic Banks / Islamic Windows of banks where bank rating is AA- or above.



0% - 100%
Maturity The initial Maturity of the Fund is two (2) years from the commencement of the Life of the Fund. However, the duration of the Fund is perpetual.
Principal Preservation At the Initial Maturity Date (2 years) and thereafter.
Profit Lock-in The Management Company may lock-in certain percentage of the profits (if any) from the equity portion by increasing allocation to the money market investment avenues. This will help in securing certain percentage of unrealized gains.
Minimum investment amount PKR 10,000/-

 

4. Fees and charges

* Management fee No Management Fee will be charged if the Fund invests in CIS managed by the Management Company. Where cash in bank accounts is maintained, the management fee of 1.25% will be charged on average annual net assets.
* Structuring fee - upfront 3% - One time in the perpetual life of the Fund
Early exit fee

1% in year 1, 0.5% in year 2 and no load beyond 2 years

 

5. Service Providers

Regulator Securities and Exchange Commission of Pakistan (SECP)
Shariah Technical Services Support Provider: Meezan Bank
Shariah Supervisory Board: Dr.Imran Ashraf Usmani
Mufti Ehsan Waquar
Mufti Muhammad Naveed Alam
Application for Listing Pakistan Stock Exchange (G) Ltd.
Auditor A.F Fergusons & Co. - Chartered Accountants
Trustee and Custodian Central Depository Company of Pakistan Ltd. (CDC)

* Taxes apply

Disclaimer: All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results.. Please read the offering document to understand the investment policies and the risk involved. Principal Preservation only applies to unit holders who hold their investment until initial maturity of two years.

NAFA Islamic Principal Protected Fund - I

Term Sheet - NAFA Islamic Principal Protected Fund - I

1. Brief information on the Fund

NAFA Islamic Principal Protected Fund - I is a Shariah-compliant principal protected Fund launched by NBP Fullerton Asset Management Limited that aims to grow the value of the Unit holders’ investments over the long-term in approved Shariah compliant equities and money market instruments while protecting initial investment value at Initial Maturity date.

The product is suitable for those who want to seek capital appreciation that adheres to Shariah principle along with principal protection.

 

2. Key benefits

  • No lock-in period while, principal protection is at the end of Initial Maturity (2 years) and beyond;

  • Exposure to Shariah compliant equities with Principal Protection;

  • Tax credit available as per section 62 of the Income Tax Ordinance, 2001

  • Profit lock-in feature available

  • Professional Fund Management;

  • No charge/ penalty at the time of encashment before Initial Maturity period of 2-year;

 

3. Key features of the Fund

Fund Category / Type Open ended Shariah Compliant Capital Protected Fund
Investment Objective The Objective of NAFA Islamic Principal Protected Fund-I is to earn a potentially high return through dynamic asset allocation between Shariah compliant Equities and Money Market investment avenues, while providing principal protection.
Benchmark Weighted Average Daily Return of KMI-30 Index and saving rates of Islamic Banks or windows of scheduled Islamic Banks based on the Fund’s actual proportion in the Equity & Money Market Components.
Investment Strategy The Fund will be dynamically allocated between the Equity Component and Money Market Component by using the Constant Proportion Portfolio Insurance (CPPI) Methodology. Allocation to Equity Component will be generally increased incase where equity markets are rising, while allocation to the Money Market Component will be generally increased if the equity markets decline.
Authorized Investments Authorized Investments Allocation (Min % - Max %)
Equity Component:
Listed Shariah Compliant Equities

0% - 50%
Money Market Component:
GoP Ijarah Sukuk, deposits, TDR/COI and instruments with scheduled Islamic Bank(s) having long term credit rating of AA- and/or Scheduled Islamic windows of conventional banks. AA rated Shariah Compliant commercial paper or its equivalent.
50% - 100%
Maturity The initial Maturity of the Fund is two (2) years from the commencement of the Life of the Fund. However, the duration of the Fund is perpetual.
Principal Protection At the Initial Maturity Date and thereafter.
Profit Lock-in The Management Company may lock-in certain percentage of the profits (if any) from the equity portion by increasing allocation to the money market investment avenues. This will help in securing certain percentage of unrealized gains.
Minimum investment amount PKR 10,000/-

 

4. Fees and charges

** Management fee 2% per annum of net assets calculated on daily basis.
** Structuring fee - upfront 3% - One time in the perpetual life of the Fund
Early exit fee Nil

 

5. Service Providers

Regulator Securities and Exchange Commission of Pakistan (SECP)
Shariah Technical Services Support Provider: Meezan Bank
Shariah Supervisory Board: Dr.Imran Ashraf Usmani
Mufti Ehsan Waquar
Mufti Muhammad Naveed Alam
Application for Listing Pakistan Stock Exchange (G) Ltd.
Auditor A.F Fergusons & Co. - Chartered Accountants
Trustee and Custodian Central Depository Company of Pakistan Ltd. (CDC)
  • Capital Gains Tax (CGT) rate for individual is 10% for up to four years holding period. For holding period of more than 4 years CGT is exempt.
  • Tax rate on dividends for individuals is 10%.
** Taxes apply

Disclaimer: All investments in mutual funds are subject to market risks. Please read the offering documents to understand the investment policies ant the risk involved. Capital Protection only applies to unit holder who holds their investment until initial maturity of two years.

NAFA Islamic Principal Protected Fund - II

Term Sheet - NAFA Islamic Principal Protected Fund - II

1. Brief information on the Fund

NAFA Islamic Principal Protected Fund - II is a Shariah-compliant Principal Protected Fund launched by NBP Fullerton Asset Management Limited, which aims to grow the value of the Unit holders’ investments over the long term in approved Shariah equity and money market instruments while protecting initial investment value at Initial Maturity date.

The product is suitable for those investors who want to seek capital appreciation that adheres to Shariah principles along with principal protection.

2. Key benefits

  • No lock-in period while, capital protection is at the end of initial maturity (2 years) and beyond;

  • Exposure to Shariah Compliant Equities with Capital Preservation;

  • Tax credit available as per section 62 of the Income Tax Ordinance, 2001

  • Professional Fund Management;

  • No charge/ penalty at the time of encashment before initial maturity period of 2-years and thereafter;

3. Key features of the Fund

Fund Category / Type Open Ended Shariah Compliant Capital Protected Fund
Investment Objective The objective of NAFA Islamic Principal Protection Fund-II is to earn a potentially high return through dynamic asset allocation between shariah compliant Equities and Money Market investment avenues, while providing principal protection.
Benchmark Weighted Average Daily Return of KMI-30 Index and saving rates of Islamic Banks or windows of Scheduled Islamic Banks based on the Fund’s actual Proportion in the Equity & Money Market Components.
Investment Strategy The Fund will be dynamically allocated between the Equity Component and Money Market Component by using the Constant Proportion Portfolio Insurance (CPPI) Methodology. Allocation to Equity Component will generally increase in the case where equity markets are rising, while allocation to the Money Market Component will generally increase if the equity markets decline.
Authorized Investments Authorized Investments Allocation (Min % - Max %)
Equity Component:
Listed Shariah Compliant Equities

0% - 100%
Money Market Component:
GoP Ijarah Sukuk, Savings deposits, TDR/COII, placements, and instruments with scheduled Islamic Bank(s) and/or Scheduled Islamic windows of conventional banks having long term credit rating of AA-. AA rated Shariah Compliant commercial paper or its equivalent.
0% - 100%
Maturity The initial Maturity of the Fund is two (2) years from the commencement of the Life of the Fund. However, the duration of the Fund is perpetual.
Principal Protection At the Initial Maturity Date and thereafter.
Profit Lock-in The Management Company may lock-in certain percentage of the profits (if any) from the equity portion by increasing allocation to the money market investment avenues. This will help in securing certain percentage of unrealized gains.
Minimum investment amount PKR 10,000/-

 

4. Fees and charges

** Management fee 2% per annum
** Structuring fee - upfront 3% - One time in the perpetual life of the Fund
Early exit fee Nil

 

5. Service Providers

Regulator Securities and Exchange Commission of Pakistan
Shariah Technical Services Support Provider: Meezan Bank
Shariah Supervisory Board: Dr.Imran Ashraf Usmani
Mufti Ehsan Waquar
Mufti Muhammad Naveed Alam
Listing Pakistan Stock Exchange (G) Ltd.
Auditor A.F Fergusons & Co. - Chartered Accountants
Trustee and Custodian Central Depository Company of Pakistan Ltd. (CDC)

 

6. Performance of NAFA Capital Protected Accounts***

Annualized Average Return 15.4%
Average Equity Exposure 24%
  • Capital Gains Tax (CGT) rate for individual is 10% for up to four years holding period. For holding period of more than 4 years CGT is exempt.
  • Tax rate on dividends for individuals is 10%.

** Taxes applied
***These accounts have performance history of at least two years as of April 30, 2014.

Disclaimer: All investments in mutual funds are subject to market risks. Please read the offering documents to understand the investment policies ant the risk involved. Capital Protection only applies to unit holder who holds their investment until initial maturity of two years.

 
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News

NBP Fullerton Asset Management Ltd (NAFA), Revised Transaction Timings.

Please note that revised transaction timings for equity related funds w.e.f 15/4/17 are as follows; Mon-Thu: 9am to 4:30pm Fri: 9am to 5pm

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NBP Fullerton Asset Management Ltd (NAFA), Announces bonus distribution for NIPPF-I, NIPPF-II & NIPPF.

NBP Fullerton Asset Management Ltd (NAFA) is pleased to announce bonus distribution for NIPPF-I, NIPPF-II & NIPPF (Financial Year 2016-2017).

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Notice of change of Name & Category of Fund - NAFA Islamic Aggressive Income Fund

We would like to inform you that the Management of NBP Fullerton Asset Management Limited (NAFA), with the approval of Securities and Exchange Commission of Pakistan (SECP), has changed the category of NAFA Islamic Aggressive Income Fund from Shariah Compliant Aggressive Income Fund to Shariah Compliant Income Fund. Accordingly the name of NAFA Islamic Aggressive Income Fund will be NAFA Islamic Income Fund w.e.f. March 14, 2017. For further information, please call our toll free helpline # 0800-20002 Kindly also note that all cheques for investment in NAFA Islamic Aggressive Income Fund from March 14, 2017 onwards shall be made in the name of CDC Trustee NAFA Islamic Income Fund.

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NBP Fullerton Asset Management Ltd (NAFA), announces cash dividend (As of June 29, 2016)

NBP Fullerton Asset Management Ltd (NAFA), is pleased to announce final cash dividend on funds under its management for the Financial Year 2015-2016.

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NBP Fullerton Asset Management Ltd (NAFA), announces cash dividend (As of June 30, 2016)

NBP Fullerton Asset Management Ltd (NAFA), is pleased to announce cash dividend on funds under its management for the Financial Year 2015-2016.

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Notice of Interim Distribution (2015-2016)

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NBP Fullerton Asset Management Ltd (NAFA), Announces Interim bonus distribution for NAFA Islamic Principal Protected Fund-II - (NIPPF-II)

We are pleased to announce that the Board of Directors of NBP Fullerton Asset Management Ltd (NAFA) in their meeting held on April 29, 2016 announced a per unit bonus distribution of Rs.7.7158 for unit holders of NAFA Islamic Principal Protected Fund - II (NIPPF-II). An investor holding 100 units at the close of business as on April 28, 2016 will get 6.9159 units on ex-dividend NAV of Rs. 111.5658 per unit, the proportionate will apply to actual holdings.

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Notice for changes in Front-End Load structure

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NBP Fullerton Asset Management Ltd (NAFA), announces cash dividend (As of June 29, 2016)

NBP Fullerton Asset Management Ltd (NAFA), is pleased to announce cash dividend on funds under its management for the Financial Year 2015-2016.

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