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Al Meezan Investment Management

Limited
December, 2016

In the Name of Allah, the Most


Beneficent, the Most Merciful
2

Al Meezan Investments

Disclaimer

The Information presented in this presentation has been obtained or derived from
sources believed by Al Meezan to be reliable. However, any projections contained
herein are estimates only and may not be realized in the future. 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.

Al Meezan Investments

Contents
I.

About Al Meezan Investment Management Limited

II.

Voluntary Pension Schemes

II.

Meezan Tahaffuz Pension Fund

III.

MTPF vs. Provident and Gratuity Funds

Our Vision
I. About Al Meezan Investment Management Limited
Our Mission

Al Meezan Investments

Our Vision & Mission


Our Vision

Our Vision

"To make Shariah


Our investing a first
Compliant
Our
choice
Visionfor investors."
Vision

Our Mission
OurMission
Mission
Our

Our Mission
"To establish Al Meezan as a
leading and trusted brand for
savings and investments by
offering innovative Shariah
compliant investment solutions
through ethical conduct, value
added services and optimal
returns, while protecting the
interest of all stakeholders.

Al Meezan Investments

Our Shariah Advisor


We aim at providing Halal and Riba-Free investment opportunities to our investors.
For all our operations and investments, we draw Shariah Advisory from the Shariah
Supervisory Board of Meezan Bank Limited, comprising the following eminent and
learned Islamic scholars:

4
Justice (Retd.) Mufti Muhammad Taqi Usmani (Chairman)

Dr. 2
Imran Ashraf Usmani (Resident Board Member and
Shariah Advisor)

11
Sheikh Essam M. Ishaq (Board Member)

Al Meezan Investments

Our Group

Meezan Bank Limited


(MBL)- Pakistans
Premier & Largest
Islamic Commercial
Bank

5%

30%

Pak Kuwait Investment


Company (PKIC)Leading financial house ,
a joint venture between
Government of Pakistan
and Kuwait

65%

MBL
Al Meezan's Employees

PKIC

Al Meezan Investments

About Al Meezan Investments


The only full-fledged Shariah Compliant Asset Management Company of Pakistan.
Largest private sector AMC with longest track record of over 20 years of experience
in Asset Management and Investment Advisory
Manages the largest Open end Equity fund & Voluntary Pension Fund (VPS) in the
private sector
Highest rating of AM2++ awarded by JCR-VIS, the highest ever awarded to
AMCs in the Industry.
Consistently high performing funds providing competitive returns
Longest track record of managing discretionary funds under management along with
advisory services in the industry
Managing the discretionary portfolios of reputable clients such as Engro, Ufone and Eli Lilly.

Al Meezan Investments

Why Al Meezan
The Only Full
Fledged Shariah
compliant AMC with
one of the largest
investor base of over
49,000 investors

The Largest
Private Sector
Asset Management
Company with
AUMs of
PKR 96.99 Billion

An Impressive
track record of
21 years with
AM2++
Management
Quality Rating

(as on Nov 30, 16)

Managing the
Largest Private
sector Open End
Equity FundMeezan Islamic Fund
with AUMs of PKR
36.6 Billion
39.9
(as on Nov
Oct 31,
30, 16)

Managing the
Largest Private
sector VPS- Meezan
Tahaffuz Pension
Fund with AUMs of
PKR 7.5 Billion
(as on Nov 30, 16)

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Al Meezan Investments

Assets Under Management

11

Al Meezan Investments

Product Portfolio
Equity
Funds

Balanced
Fund

Al Meezan Mutual
Fund
Meezan Islamic
Fund
KSE Meezan
Index Fund
Meezan Energy
Fund

Meezan
Balanced Fund

Meezan
Islamic
Income Fund
Meezan
Sovereign
Fund

Money
Market
Fund

Asset
Allocation
Fund

Meezan Cash
Fund

Meezan Asset
Allocation Fund

Voluntary Pension
Scheme

Fund of Funds

Meezan Tahaffuz Pension


Fund

Income
Funds

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Savings Plans

Meezan Financial
Meezan Savings Plan
Planning Fund
Meezan Indus
Meezan Strategic
Hospital Support Plan
Allocation Fund
Meezan Capital
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Preservation Fund-II dolor sit
Meezan Capital
Preservation Plan-I &II
Meezan Asset Allocation
Plan-I , II , III & IV

Commodity
Fund
Meezan Gold Fund

12

Al Meezan Investments

Our Clients
Financial Institutions

Oil and Energy

Auto & Engineering

Telecom

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Al Meezan Investments

Board of Directors
Mr. Ariful Islam
Chairman Al Meezan &
Deputy CEO Meezan
Bank Ltd.

Mr. Mohammad Shoaib


CFA - Chief Executive Al
Meezan

Mr. P. Ahmed
Executive Director, Indus
Hospital Karachi
(Independent Director)

Mr. Atif AzimCEO- VentureDive Pvt.


Ltd
(Independent Director)

Mr. Moin M. Fudda


Country Representative
SCOR- A Global 1 Tier
Reinsurer
(Independent Director)

Syed Amir Ali


Group Head Corporate &
Investment BankingMeezan Bank Ltd.

Mr. Tasnimul Haq


Farooqui
Head of Legal &
Company SecretaryMeezan Bank Ltd.

Mr. Abdullah Ahmed


Muhammad
Group Head of Treasury
& Financial InstitutionsMeezan Bank Ltd

Mr. Mazhar Sharif


SEVP Internal Audit- Pak
Kuwait Investment
Company

Syed Amir Ali Zaidi


SVP Capital Markets- Pak
Kuwait Investment
Company
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Al Meezan Investments

Management Team
Muhammad Asad
Senior Executive Vice
President, Chief
Investment Officer

Syed Owais Wasti


Executive Vice President,
CFO & Company
Secretary

Syed Hussain Naqvi


Executive Vice
President , Chief Strategy
and Operation Officer

Talha Anwar
Executive Vice President,
Head of Sales &
Marketing

Muhammad Faisal
Hafeez
Senior Vice President,
Head of Business
Development &
Operations

Syed Khurram Ali


Naqvi
Senior Vice President,
Head of IT

Abdul Rub Khan


Senior Vice President,
Head of Human
Resources

Anas Rehan
Senior Vice President,
Head of Customer
Services, Service Quality
& Training

Mohammad Shoaib,
CFA
Chief Executive

Muhammad Rashid
Zafer
Senior Vice President,
Head of Internal Audit &
Compliance

Imad Ansari
Assistant Vice President,
Head of Risk
Management
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Al Meezan Investments

Members of Research, Product Development and Fund


Management Team
Name
Mohammad Shoaib, CFA

Muhammad Asad

Designation
CEO

Experience
(Years)

Academic Background

25

CFA | MBA
MBA | CFA Level 3
Candidate | Fellow of
Life Management, USA

SEVP & CIO

20

VP & Fund Manager

CFA| MBA

VP-Product Development & Head of


SMA

CFA | MBA | FRM

Zain Malik

VP & Fund Manager

BBA | CFA Level 3 Passed

Asmar Hamoodi Shams, CFA

AVP & Fund Manager

CFA, ACCA, BBA

Sr. Manager & Fund Manager

CFA | MBA

BBA | CFA Level 3


Candidate

Ahmed Hassan, CFA


Ali Hassan Khan, CFA, FRM

Asif Imtiaz, CFA


Ali Asghar Khurshid
Samreen Khan

Acting Head of Research


Manager Investments

BBA | CFA Level 3


Candidate
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Al Meezan Investments

Timeline of Awards

4
3

2
2

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Our Vision
II. Voluntary Pension Schemes
Our Mission

18

Al Meezan Investments

What are Voluntary Pension Schemes (VPS)?


A very flexible savings cum investment plan
Facilitates individuals to save systematically for their retirement
Savings topped with investment returns

Desired investment exposure to high


3 yielding assets

Special tax benefits

2
After reaching retirement
age, get monthly income from your accumulated investments
or withdraw a lump sum amount
2

11
19

Al Meezan Investments

VPS Industry in Pakistan

Number of Pension Fund Managers

Number of Fund Managers offering Shariah Compliant VPS4

Number of VPS

Total Fund Size of VPS (Rs. Mn as on

17
Nov 30, 2016)

Total Fund Size of Shariah Compliant VPS (Rs. Mn as on Nov 30, 2016)

Rs. 20,796
Rs. 13,041

11
20

Al Meezan Investments

Al Meezans Market Share


Total Voluntary Pension Schemes (November 30, 2016)

4
3

2
2

11
21

Al Meezan Investments

Al Meezans Market Share


Islamic Voluntary Pension Schemes (November 30, 2016)

4
3

2
2

11
22

Our Vision
III. Meezan Tahaffuz Pension Fund
Our Mission

23

Al Meezan Investments

Meezan Tahaffuz Pension Fund


Benefits

Fund Type: Open End Islamic Pension Fund


Fund Size as of October 31, 2016 : PKR 7,528 Mn.

Launch Date: June 2007


MTPF is Pakistans largest Voluntary Pension
Scheme in the private sector
Al Meezan

A long term saving mechanism with flexibility of


varying exposure to different asset classes

2
2

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As per Section 63 of the Income Tax


ordinance 2001, Tax saving available on
contributions up to 20% of the taxable
income

For an investor aged 41 or above, the


contribution limit will progressively
increase by 2% every year, up to 30% of
Investments
taxable income

Tax exempted returns on investment

Portability

Additional feature: Free of cost Takaful


protection for Natural Death, Accidental
Death, Permanent Total Disability and
Accidental Medical Expenses upto Rs. 5
Million

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Al Meezan Investments

Key Features of MTPF

The Largest VPS in the market with the size of more than Rs. 7,528 bn
Shariah compliant as per the guidelines of Shariah Supervisory Board
Flexibility of choosing asset allocation scheme of choice, which can be changed twice a
year.
4
Periodic rebalancing by Al Meezan Investments will ensure that your asset allocation
remains within your desired limit
Participants of MTPF on attaining
3 the age of retirement shall have the following
3
options:
Withdraw up to 50% of amount(tax free) in their pension account;
The remaining amount shall be used to either purchase an annuity from a life
2
insurance/takaful company or invest the amount in any approved Income Payment Plan
to receive a monthly amount till the age of 75 years or 15 years after retirement.
Can choose
2 retirement age between 60-70 or 25 years since the age of first contribution
which ever 1
is lower.
1
As per Rule 15 (4)Investors can change the Pension Fund Manager without any cost
once in a financial year by giving a notice of at least 21 days before the transaction.
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Al Meezan Investments

E E T Structure
MTPF is based on E E T Structure

E: Exempt : Tax Rebate on annual contributions

E: Exempt : Tax Exemption on Profits earned in


MTPF. All earnings of the Scheme are Tax Free

2
2

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T: Taxable : Upon retirement, you can withdraw


50% of accumulated amount tax free .

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Al Meezan Investments

Meezan Tahaffuz Pension Fund


Al Meezan
Investments
Meezan Tahaffuz
Pension Fund
Sales Load
upto 3%

Equity Sub Fund

Allocation Policy

Contribution

3
2
2

11

Tax free
redemption

50
%

3
Debt Sub Fund

M.M Sub Fund

At
Retirement
(60-70 or 25 years)

Before
Retirement
Disability
Before
Retirement
Death Before
Retirement
Survivors as per
nomination deed

50
%

Income Payment
Plan till age 75
OR
Annuity from
Life Takaful Co
All withdrawals taxed
At last 3 yrs tax rate
Deemed retirement
Cash withdrawal 50%
tax free (deemed retirement)
Transfer amount to
survivors VPS account
Purchase deferred
annuity starting at 55
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After
75 or
15
years

Al Meezan Investments

Diversified Investment in Sub-Funds

Equity Sub Fund

ReturnsHighest
Inflation RiskLowest
VolatilityHighest

Debt Sub Fund

ReturnsModerate
Inflation
3
Risk3
High
VolatilityModerate

Money Market
Sub Fund

Returns- Lowest
Inflation RiskHighest
VolatilityLowest

Gold Sub Fund

Returns- High
Inflation RiskLow
Volatility- High

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Al Meezan Investments

Allocation Schemes- (Without Gold)


Al Meezan Investments offers following allocation schemes:
Equity Sub Fund

Debt Sub Fund

High Volatility

80%

20%

Medium Volatility

50%

40%

Low Volatility

25%

60%

15%

Nil

50%

50%

Lower Volatility

Money Market Sub


Fund

Nil
10%

Life Cycle plan

Automatically adjusts your allocation from High Risk assets towards Lower Risk based on your age profile

Customized Allocation

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Customized Allocation

0-100%

0 100%

0-100%

Participant can change Allocation Scheme twice in a year


29

Al Meezan Investments

Allocation Schemes- (With Gold)


Al Meezan Investments offers following allocation schemes:
Equity Sub Fund

Debt Sub Fund

Money Market
Sub Fund

Gold Sub Fund

High Volatility

Min 40%

Min 20%

Nil

Max 25%

Medium Volatility

Min 20%

Min 40%

Min 10%

Max 15%

Low Volatility

Min 05%

Min 60%

Min 15%

Max 05%

Life Cycle plan

Automatically adjusts your allocation from High Risk assets towards Lower Risk based on your age profile

Customized
Allocation

0-100%

11

Customized Allocation
0 100%

0-100%

0-100%

Participant can change Allocation Scheme twice in a year


30

Al Meezan Investments

Meezan Life Cycle Plan

The allocation in this scheme is on the basis of the age of the Participant as per the
following allocation table:
Equity Sub Fund

Money Market
Sub Fund

18-30 Years

80.00%

20.00%

31-40 Years

65.00%

25.00%

10.00%

50.00%

30.00%

20.00%

40.00%

30.00%

30.00%

10.00%

40.00%

50.00%

41-50 Years
51-60 Years

2
61 Years and above

Debt Sub Fund

Nil

11the participant the higher the allocation towards equity market due to his
The younger
high risk taking ability with reference to long term horizon.
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Al Meezan Investments

Meezan Tahaffuz Pension Fund


Returns on Allocation Schemes since Inception till Nov 30, 2016

Annual Return

FY17

3
High Volatility
Medium Volatility
Low Volatility

11
Lower Volatility
MTPF- Gold*

Cumulative Since Annualized Return


Inception
Since Inception Cumulative Cumulative

Al Meezan Investments

3 Year

5 Year

10%

381%

17%

87%

249%

7%

279%

15%

61%

171%

5%

195%

12%

40%

106%

3%

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sit
109%

8%

19%

40%

-10%

-10%

* Performance start date of August 04, 2016


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Al Meezan Investments

Tax benefits

As per Section 63 of the Income Tax ordinance 2001, Tax saving available on
contributions up to 20% of the taxable income

For an investor aged 41 or above, the contribution limit will progressively increase by
2% every year, up to 30% of preceding year taxable income

Contribution to MTPF effectively increases return on investment by the % of tax rate.

Latest amendments in tax laws have


clarified provision of direct adjustment of these
3
3
credits at the time of disbursement of salary

Under clause 23 (c) of Part I of Second Schedule of Income Tax Ordinance, any
2
withdrawal of accumulated
balance from an approved pension fund that represents the
transfer of such balance from an approved provident fund is exempted from tax 1st
July 2012

Under clause123
(c) of Part I of Second Schedule of Income Tax Ordinance , effective
1
1st July 2012, monthly income installments in an income payment plan are tax-free if
the Income Payment Plan spread is over 10 years.
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Al Meezan Investments

Tax Benefit Illustration

Sr.
No.

Annual
Taxable
Income
(ATI)

700,000

15,000

1,550,000

102,500

2,450,000

4
5

Annual Tax Effective Tax Basic Salary


Liability
Rate
(60% of ATI)

Actual PF Investment

Increase in Take Home


Income by Tax Credit

Pension Fund (20% of


ATI)*

through
Pension Fund
(as per sec 63)

420,000

84,000

1,800

6.61%

930,000

186,000

12,300

253,750

1,470,000

294,000

30,450

6,500,000

10.36%

1,287,500

19.81%

3,900,000

780,000

154,500

15,000,000

3,825,000

25.50%

9,000,000

1,800,000

459,000

32.14% 3

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Al Meezan Investments

Takaful Protection

Takaful protection up to Rs. 5mn from Pak Qatar Takaful being offered to all participants
with participation contribution of PKR 100,000

4 Total Disability (PTD) and


Coverage for Natural Death, Accidental Death, Permanent
Accidental Medical Expenses
3

50% of the average of last 2 months total invested balance of each individual subject to max of Rs.
5,000,000/100% of the average of last 2 months total invested balance of each individual subject to max of
Accidental Death
Rs. 5,000,000/-

Natural Death

Permanent Total 50% of the average of last 2 months total invested balance of each individual subject to max of Rs.
Disability
5,000,000/Medical coverage 10% of the average of last 2 months total invested balance of each individual subject to max of
(Accident)
Rs. 1,000,000/-

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No hidden charges, all costs for Takaful protection borne by Al Meezan
Manager)
35

(Pension Fund

Al Meezan Investments

Meezan Income Payment Plan


Choice of Allocation Scheme: The participant will have the option to place the amount in
one of the following allocation schemes of MTPF for systematic redemption of units in
order to get a periodic payment.

4
3

Monthly income 2
installments in an income payment plan are tax-free if the Income
Payment Plan spread is over 10 years.

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36

Our Vision
III. MTPF vs PF
Our Mission

37

Al Meezan Investments

MTPF vs Provident Funds


MTPF

Provident Funds

1 Employee can avail a tax credit up to 20% of taxable Tax credit is not available on employees
income. The tax credit is directly adjusted in
monthly salary thereby increasing monthly cash
flows.
2 In MTPF, there is free world wide accidental death
and disability insurance coverage.

3
3
Each employee has an independent pension account
which has an asset allocation as per his/her risk
profile and investment horizon.

4 MTPF is portable and an employee can continue his


Individual pension account while switching from
one job to another.

11
Option to receive NAVs of Investment portfolios

contribution to PF. Furthermore, employer


contribution over Rs.100,000 is taxable every year.

There is no insurance in PF; the employee just


depends on the group insurance scheme of the
company.
There is no separate asset allocation for an employee
in PF.
The PF account of an employee finishes off at the
time of switching his/her job and he/she has to make
a fresh start in terms of savings.
No authentic data is available in PF

through day end SMS alerts. 24/7 access to online


balance statement.
38

Al Meezan Investments

MTPF vs Provident Funds (cont)


MTPF

Provident Funds

6 An employee can choose between the pension


fund managers if he/she is not satisfied with
the performance of the fund manager. There is
no additional cost associated with such a
transfer.

If the employee feels that the firms provident


fund is not growing in line with his/her
expectations, he/she has no choice but to hope
for the best.

7 MTPF is managed by professional fund


managers on the basis of strong research

No research based investment

8 An income payment is also available to provide Offers no disciplined plan to receive income
regular income to participants after retirement. after retirement.

11
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Our Vision
IV. Value Added Services
Our Mission

40

Al Meezan Investments

Value Added Services


Al Meezan offers a host of value added services for your convenience and enhanced
services.
Al Meezan Connect- Mobile Application
Online Transactions-Internet Banking Services

Online Transactions- Member Services Area

ATM Facility

Al Meezan Investments

Meezan Easy Cash

Email Services

SMS Alerts

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E-Statements

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Al Meezan Investments
For Further Details Please Contact:
Toll-free Helpline 0800-HALAL (42525)
SMS INVEST to 6655

Karachi FTC Branch:

(92-21) 111-633-926

Sales Hub Karachi:

(92-21) 34536602-05

North Nazimabad Branch, Karachi:

(92-21) 36641491-4

Bahadurabad Branch, Karachi:

(92-21) 34923112-6

DHA Branch, Karachi:

(92-21) 35802411-4

Gulshan Iqbal Branch, Karachi


Gulberg Branch, Lahore:

Al Meezan
Investments
(92-21) 34990491-4

(92-42) 35783608-12

DHA Branch, Lahore:

(92-42) 35747060-3

Faisalabad Branch:

(92-41) 2412371-4

Islamabad Branch:

11
Multan Branch:

Peshawar Branch:

(92-51) 2801471-73
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(92-91) 5271911-14
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(92- 61) 6305911-5

Abbottabad Branch:

(92-992) 408182

Rawalpindi Branch:

(92-51) 5766364-6
42

Thank You

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