The investment objective of Meezan Fixed Term Fund (MFTF) is to earn potentially high returns through investment as per respective Allocation Plans by investing in Shariah Compliant Fixed Income instruments.
The allocation plans under this Fund shall primarily invest in Islamic government securities, cash in bank accounts, money market placements, deposits, certificate of deposits (COD), certificate of Musharakas (COM) and TDRs, as per their respective authorized investible avenues, and as approved by SECP & Shariah Advisor. The allocation plans under this Fund shall be subject to such exposure limits as are specified in the Rules, the Regulations and directives issued by SECP from time to time. The Scheme shall make investments in such a manner that the original amount of investment is protected at maturity/ Initial Maturity while having the potential to yield fixed rate/return.
|Plan Name||Meezan Paaidaar Munafa Plan-IV|
|Plan Category||Open end Shariah Compliant Collective Investment Scheme as per SECP’s Circular No.3 of 2022 dated
February 10, 2022
|Date of Inception||19th April, 2023|
|Fund Size – October 31st, 2023||Rs. 4.76 Billion|
|Duration of the Plan||The duration of the Fund will be perpetual; however, the initial maturity of the Plan shall be 12 months (from the close of subscription)|
|Benchmark||Twelve (12) months average deposit rates of three (3) AA rated scheduled Islamic Banks or Islamic Banking Windows as Selected by MUFAP at the time of plan launch.|
|Minimum Investment||Rs. 500,000 & its multiples|
|Minimum Redemption Amount||Rs. 500,000 & its multiples|
|Contingent Load||In case of redemption before maturity date, contingent load shall be deducted from redemption amount subject to applicable expenses.|
|Expense Ratio||Up to 2%, as specified by SECP|
|Management Fee||Up to 5% of the gross earnings of the Scheme, calculated on a daily basis, subject to a minimum of 0.10% of the average daily net assets of the Scheme.|
Individuals, HNWI’s, Corporates, Banks, DFI’s, Insurance Companies, Employee Retirement and Endowment funds, Charitable Institutions and Trusts & NGO’s.
Primarily that clientele which seeks better returns than available by TDRs of corresponding tenure, while not seeking liquidity prior to initial maturity of the plans.
|Authorized Investments||Entity / Instruments Rating||Maximum Exposure||Minimum Exposure|
|A. Shariah Compliant GOP Issued/guaranteed Securities.||N/A||100%||0%|
|B. Cash at Bank (excluding TDRs) with licensed Islamic Banks or Islamic Branches/Windows of Conventional Banks, Shariah Compliant Government Securities including GoP Ijarah Sukuk not exceeding 90 days maturity.||AA||100%||0%|
|C. Shariah compliant placements with maturity not exceeding twelve (12) months, including but not limited to Bank deposits with licensed Islamic banks and/or Islamic branches/windows of Conventional banks & DFI’s.||AA||100%||0%|
|D. Shariah compliant placements with maturity not exceeding twelve (12) months, including but not limited to placement of funds with Islamic Microfinance Banks, NBFC’s and Modarabas.||AA||25%||0%|
Al Meezan Investment would be accepting commitment from investors for the above plan till April 12, 2023. Further, participation in plan is subject to successful participation in GoP Ijarah auction which is due to be held on April 13, 2023. In case where required amount is not fully allocated in auction then Al Meezan Investment would accept your participation on pro-rata basis in the plan, while returning the remaining amount back to investor. Further, in case where the entire auction participation does not materialize, then Management Company shall return the entire amount to the participants.
Considering the risk profile of the Fund, weighted average time to maturity of 90% of net assets shall not exceed 4 years and this condition shall not apply to securities issued by the Federal Government.
Investments shall be made as per the authorized investment limits given above and may be made according to the following mode of Shariah Transaction such as; principles of Bai’-Mu’ajjal, Bai’-Mussawwama, Bai’-Salam, Istisna’a, Mudaraba, Murabaha and Musharakah or any other structure as approved by the Shariah Advisor from time to time.
The Fund, in light of its investment objective and investment policy, shall exclusively invest in Shariah Compliant investments transacted, traded or listed in Pakistan. Any investment made outside Pakistan shall be subject to prior approval of the State Bank of Pakistan and SECP.
*The return mentioned above will be upon initial maturity. **Contingent load shall commensurate with net loss incurred due to early redemption as determined by the management company.
Risk Disclaimer: All Investments in mutual Fund are subject to market risks. The NAV of Units may go down or up based on the market conditions. The investors are advised in their own interest to carefully read the contents of the Offering Document, in particular the Investment Policies mentioned in clause 2, Risk Factors mentioned in clause 2.9, Taxation Policies mentioned in Clause 7 and Warnings in Clause 9 before making any investment decision.