FUND DETAILS
Fund Name
MCB Sarmaya Mehfooz Fund 1 – “MCB SMF 1”
Asset Management Company
MCB Asset Management Company Limited
Asset Manager Rating
Rated AM2- (AM TWO MINUS) by PACRA
Fund Type
Open End – Capital Protected Scheme
Investment Objectives
The primary objective of MCB SMF 1 is to protect the Initial Investment Value of investors at maturity with secondary objective of providing growth over the period.
Investment Strategy
MCB SMF 1 seeks to achieve its objective by investing a minimum 89.8571 % of the total Initial Fund Size in deposits with commercial bank(s) having a long term credit rating of at least ‘AA’ (Double A) at the time of placement during the financial year to protect the capital till the end of the Minimum Period. This portion of the Fund is called “Capital Protected Segment”. The remaining portion of the Fund other than Capital Protected Segment is called “Investment Segment”. To enhance the Fund’s overall return, Investment Segment will be invested in the equity markets or any other permissible investment instrument that the Management Company feels would be appropriate to maximize returns.
The Fund shall place a separate deposit of at least 2.6750 % of the total Initial Fund Size with scheduled Bank(s) having long term credit rating of at least ‘AA’ (Double A) at the time of placement to ensure that all fees and charges are covered without affecting the Capital Protection structure in case the Investment Segment portion is wiped out completely due to risk factors stated in clause 4.8.
All investments shall be made within the limits prescribed in the Regulations or in case of foreign investments as may be specified by the Commission and by State Bank of Pakistan (SBP).
OPERATIONAL DETAILS
Minimum Investment
Minimum investment amount is as low as PKR 5,000/-. Further re-investments can be made with as little as PKR 1,000/- only
Listing
To be determined after close of Initial Fund Offering Period.
Announcement of NAV (Net Asset Value)
Daily, on every Business Day
Allotment of Units
Upon receipt of cleared funds in MCB SMF 1 Bank Account.
Management Fee
The Management Company will charge a maximum fee of 2.25% p.a. of the average daily Net Assets of the Fund
Back-end Load
5.00% of NAV for early encashment only. Please see example below:
|
% charge of NAV
|
Amount Invested
|
Unit Price
|
Units Purchased
|
Price at the time of the redemption
|
Charge Amount
|
Net Proceeds
|
|
5%
|
100,000
|
100
|
1,000
|
110
|
5,500
|
104,500
|
The amount recovered as the redemption charge will be part of the Fund property.
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
|
Announcement Date
|
Cash
|
Bonus
|
|
MCB-SMF1
|
30-Jun-10
|
0.000
|
0.265
|
Principal Protection
100% Capital Protection is achieved through the investment structure of the fund, for all investments held as per the minimum holding period requirement as specified in the Offering Document of MCB SMF 1.
Redemption Period
Encashment/Redemption can be made within a period of 6 business days
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
As per prevailing Income Tax Ordinance (2001), 10% WHT tax is applicable on Cash Dividend payments from mutual funds.
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 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.