FUND DETAILS
Fund Name
MCB Cash Management Optimizer (MCB CMOP)
Asset Management Company
MCB Asset Management Company Limited
Asset Manager Rating
Rated AM2- (AM TWO MINUS) by PACRA
Fund Type
An Open-End Money Market Scheme
Investment Objectives
To provide unit-holders competitive returns from a low risk portfolio of short duration assets while maintaining high liquidity.
Investment Strategy
MCB CMOP is purely a money market fund which shall make investments in fixed income instruments with a maximum maturity of 180 days and weighted average maturity up to 90 days. Based on market conditions the management company will invest a major portion in highly liquid and low risk instruments. The remaining fund will be invested in short term deposits and assets to generate better returns. The main areas of investment would be Treasury Bills, Cash and Near-Cash Instruments, Money market placements, Certificate of Deposits (COD's), Certificate of Musharika (COM's), Term Deposits (TDR's), Commercial Papers etc.
OPERATIONAL DETAILS
Minimum Investment
The minimum amount of investment to open and maintain an account is Rs.5,000/- for Growth and Cash Dividend Units and Rs.100,000/- for Income Units.
Types of Units
Growth Units: The Unit value grows in line with the growth in the NAV and the Unit Holders are entitled for cash dividend and/or bonus units at the time of distribution.
Income Units: The Unit Holders, based on their own consent and instructions and with prior intimation to the Management Company, exercise the option of redeeming a certain number of Units less or equivalent to the amount earned on their invested amount for fulfilling their requirement of a certain cash amount at Regular Intervals (i.e. monthly, quarterly, semiannually and annually). Such instructions shall be given in writing at the beginning of each regular interval or at the time of purchase of Units.
Cash Dividend Units: All distribution in this type of units will be in the form of Cash Dividend only.
Listing
LSE (Lahore Stock Exchange)
Announcement of NAV (Net Asset Value)
On every Business Day
Allotment of Units
Upon receipt of cleared funds in MCB CMOP Bank Account.
Management Fee
A fee at the rate of 10% of the gross earnings is charged, calculated on a daily basis not exceeding the maximum rate of remuneration permitted under the Rules & Regulations.
The fee is subject to a minimum of 0.25% of the average daily net assets of the scheme subject to the guidelines as may be issued by the Commission from time to time.
SERVICE PROVIDERS
Trustee And Custodian
Central Depository Company of Pakistan Limited (CDC)
Auditors
A.F. Ferguson & Co. Chartered Accountants.
Legal Advisor to the Fund
Bawaney& Partners
BENEFIT TO INVESTORS
Dividend and Bonus
| Fund |
Announecement Date |
Cash |
Bonus |
| MCB-CMOP |
21-Jan-10 |
0.000 |
3.342 |
| MCB-CMOP |
21-Apr-10 |
0.000 |
2.609 |
| MCB-CMOP |
30-Jun-10 |
0.000 |
1.890 |
No Front-end Load/ Back-End Load
No entry and exit charges at the time of investment or withdrawal.
Weighted Average Maturity
The weighted average time to maturity of MCB CMOP's net assets will not exceed 90 days.
Redemption Period
Encashment/redemption can be made within a period of 6 business days.
Financing Facility
Avail up to 90% financing facility from MCB Bank Limited against your investment in the units of MCB CMOP.
Taxation on Capital Gain
In accordance with the requirements of Income Tax Ordinance, 2001, units of mutual funds are subject to capital gains tax at the following rates for the current tax year.
|
Duration of Investment
|
Rate of Capital Gains Tax
|
|
Less than 6 months
|
10.0%
|
|
Between 6 months to 12 months
|
7.5%
|
|
Over 12 months
|
0%
|
* Capital gain is the excess of consideration received by the unit holder on sale/redemption of units over the price at which those units were purchased by the unit holder.
Taxation on Cash Dividend
10% WHT will be applicable on Cash Dividend as per prevailing Income Tax Ordinance, 2001.
Tax Credit for Individuals
According to the current provisions of Income Tax Ordinance, 2001, the salaried investor can avail the tax credit up to PKR 60,000 on an investment of PKR 300,000 held for a minimum period of one year subject to annual taxable income exceeding PKR 4.550 million. The non-salaried/self employed investor can also avail the tax credit up to PKR 75,000 on an investment of PKR 300,000 held for a minimum period of one year subject to annual taxable income equal to and exceeding PKR 3.000 million. Investors are advised to consult their tax advisor prior to making an investment decision.
Zakat
Exemption from Zakat deduction on submission of relevant Affidavit. (CZ-50)
Risk Disclaimer: All investments in mutual funds are subject to market risks and the price of units may go up or down based on market conditions. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. The information in this literature constitutes a summary presentation of the fund and has been prepared by MCB Asset Management Company Limited and no responsibility is taken for errors of fact or any opinion expressed herein. This literature is issued for indicative and information purposes only and investors should make their own appraisal of the investment opportunity and consult their own financial, legal, taxation and other professional advisors prior to any subscriptions. Investors should read the Trust Deed and Offering Document of this fund carefully to understand the investment policy of the fund and the risks involved. MCB Bank Limited is acting as a distributor of MCB Dynamic Stock Fund on behalf of MCB Asset Management Company Limited and shall not be held responsible in any manner whatsoever to any person, including but not limited to, the customer(s), beneficiary or any third party with respect to the performance of the fund.
The MCB CMOP may hold certain non-compliant investments. Before making any investment decision, investors should review the latest monthly Fund Manager Report and financial statements of the Scheme particularly the details of non-compliant investments and Risk Factors.