Investment Objective & Philosophy
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.
The Fund shall initially offer two allocation plans namely “Meezan Paidar Munafa Plan – I (MPMP – I)” and “Meezan Paidar Munafa Plan – II (MPMP-II) with different Initial maturities” (Different Launch Dates).
- Competitive Halal Returns (Investment in Shariah Compliant Islamic Instruments).
- No Front-End Load.
- Very Low Risk Product; suitable for investors looking for short to medium term investment horizon.
- Easy Access through Mobile Application and Meezan Funds Online.
- Easy Online Investment and Redemption Facility available.
- Over 27 years track record of managing your investments.
Note: Very Low Risk means Risk of Principal Erosion is Very Low
|Plan Name||Meezan Paaidaar Munafa Plan-I|
|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||30th May, 2022|
|Duration of the Plan||
The duration of the Fund will be perpetual, however the initial maturity of the Plan shall be as follows:
|Benchmark||Three (3) 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 and Subsequent Investment||Rs. 500,000 & its multiples|
|Minimum Redemption Amount||Rs. 500,000 & its multiples|
|Contingent Load||Contingent load shall be charged on redemption prior to initial maturity as per below:
|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.|
|Target Towards||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.
Meezan Paaidaar Munafa Plan-I (MPMP-I)
|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 three (3) 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 three (3) months, including but not limited to placement of funds with Islamic Microfinance Banks, NBFC’s and Modarabas.||AA||25%||0%|
Note: 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.
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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.