FUND DETAILS
Fund Name
MCB Dynamic Cash Fund (MCB DCF)
Asset Management Company
MCB Asset Management Company Limited
Asset Manager Rating
Rated AM2- (AM TWO MINUS) by PACRA
Fund Type
An Open End Income Scheme
Investment Objectives
To provide attractive return to short term investors or investors with a very low appetite for risk while taking into account capital security and liquidity considerations.
Investment Strategy
MCB DCF through active management will aim to provide optimum returns for its unit holders by investing primarily in money market and short term instruments. The fund may also invest a small portion of the fund in medium to long term assets in order to provide higher returns to unit holders.
OPERATIONAL DETAILS
Minimum Investments
Minimum investment amount is as low as PKR 5,000/- for Growth Units, PKR 100,000/- for Income Units and PRK 5,000/- for Cash Dividend Units. Further re-investments can be made with as little as PKR 1,000/- only.
Types of Units
Growth Units: Are suitable for investors who seek capital appreciation with no immediate liquidity needs.
Income Units: Are suitable for investors who desire regular income while also preserving capital. Individuals have an option to redeem profit earned on a monthly, quarterly, half yearly or yearly basis. Income is distributed based on the performance (NAV Growth) of MCB DCF. If there is no increase in NAV, nothing shall be distributed.
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 DCF Bank Account.
Management Fee
The Management Company will charge a maximum fee of 1.5% p.a. of the average daily Net Assets of the Fund.
Front-End Load
1.5% (at the time of investment)
SERVICE PROVIDERS
Trustee And Custodian
Central Depository Company of Pakistan Limited (CDC)
Auditors
A.F. Ferguson & Co. Chartered Accountants.
BENEFIT TO INVESTORS
Dividend Bonus
| Fund |
Announcement Date |
Cash |
Bonus |
| MCB-DCF |
30-Jun-07 |
0.000 |
3.380 |
| MCB-DCF |
26-Apr-08 |
0.000 |
3.300 |
| MCB-DCF |
30-Jun-08 |
0.000 |
6.456 |
| MCB-DCF |
25-Oct-08 |
3.000 |
0.000 |
| MCB-DCF |
26-May-09 |
0.000 |
3.000 |
| MCB-DCF |
30-Jun-09 |
0.000 |
3.173 |
| MCB-DCF |
8-Oct-09 |
0.000 |
2.000 |
| MCB-DCF |
21-Jan-10 |
0.000 |
2.500 |
| MCB-DCF |
21-Apr-10 |
0.000 |
2.800 |
| MCB-DCF |
30-Jun-10 |
0.000 |
2.419 |
Back-End Load
No exit charges are applied at the time of withdrawal.
Financing Facility
Avail up to 90% financing facility from MCB Bank Limited against your investment in (growth units) of MCB DCF.
CDS Eligible Security
The units of DCF are eligible for Central Depository System (CDS) maintained by CDC. The investors can hold DCF Units in dematerialized form in their own CDS Account in a more transparent and efficient manner.
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.
Redemption Period
Encashment/Redemption can be made within a period of 6 business days
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.
Holding Period
Ideal holding period for investing in MCB DCF is a minimum period of 90 days, but you can invest in or redeem from MCB DCF on any given business day without any term-commitments. However, prices of MCB DCF may occasionally be volatile. Therefore investors investing for less than 90 days should consider and understand all risks carefully before they invest. Needless to say that even long term investors need to understand all risks associated with the fund carefully, however, their chances of losing capital are marginal.
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 Cash 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 DCF 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.