FUND DETAILS
Fund Name
MCB Dynamic Allocation Fund (MCB DAF)
Asset Management Company
MCB Asset Management Company Limited
Asset Manager Rating
Rated AM2- (AM TWO MINUS) by PACRA
Fund Type
An Open-End Asset Allocation Scheme.
Investment Objectives
To provide a high absolute return by investing in equity and debt markets.
Investment Strategy
MCB DAF shifts exposures in to debt or equity as per market conditions and discretion of the Management Company. The fund may invest upto 100% in equity securities or upto 100% in debt securities according to market conditions.
OPERATIONAL DETAILS
Minimum Investment
Minimum investment amount is as low as PKR 5,000/- for Growth Units
and PKR 5,000/- for Cash Dividend Units. Further re-investments can be made with as low as PKR 1,000/- only.
Types of Units
Growth Units: Are suitable for investors who seek capital appreciation with no immediate liquidity needs.
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 DAF Bank Account.
Management Fee
The Management Company may charge a maximum fee of 3.0% p.a. of the average daily Net Assets of the Fund. However, currently it is charging 1.5% p.a. of the average daily Net Assets of the Fund.
Front-End Load
3 % (at the time of investment)
SERVICE PROVIDERS
Trustee And Custodian
Central Depository Company of Pakistan Limited (CDC)
Auditors
A.F. Ferguson & Co Chartered Accountants.
BENEFITS TO INVESTORS
Dividend and Bonus
| Fund |
Announcement Date |
Cash |
Bonus |
| MCB-DAF |
30-Jun-10 |
0.000 |
10.089 |
No Back- End Load
No exit charges are applied at the time of withdrawal.
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.
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.
Holding Period
There is no minimum holding period required. However, it is recommended to invest in the fund for long term.
Redemption Period
Encashment/Redemption can be made within a period of 6 business days.
Diversified Investment Portfolio
A well diversified investment portfolio with any size of investment
Easy to Monitor Investment
Ease of choosing and monitoring one fund instead of multiple investments.
Proper Re-balancing of Investments
Regular re-balancing to maintain the correct risk/return characteristics over time.
Zakat
Exemption from Zakat deduction on submission of required 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 DAF 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.