Q. What is Alfalah GHP Investment Management Ltd.?

Alfalah GHP Investment Management (AGIM) is a Non-banking Finance Company licensed by the Securities & Exchange Commission of Pakistan (SECP) to undertake asset management and investment advisory services in Pakistan. Alfalah GHP is a joint venture company established by Bank Alfalah Ltd. and GHP Financial Services Limited, a Switzerland based Fund Manager.

Q. What is a Mutual Fund?

A mutual fund is a trust or a company that pools resources from various investors by selling them units and then invests those funds into various investment instruments and securities on behalf of the unit holders with a view to increase the underlying value of the investment portfolio.

A mutual fund is a separate entity from the asset management company that manages that mutual fund.

Q. How is Alfalah GHP linked with Bank Alfalah?

Alfalah GHP is an asset management company established under NBFC Rules and is classified as a Non Banking Finance Company. Alfalah GHP is a separate business entity having a separate board of directors. Alfalah GHP is a subsidiary of Bank Alfalah Limited.

Bank Alfalah Limited (BAL) is engaged in commercial banking and related services as defined in the Banking Companies Ordinance, 1962. BAL cannot undertake asset management activities.

Bank Alfalah Limited is acting as a distribution facilitator by supporting Alfalah GHP in marketing it’s product to the public.

Q. What is a Trust Deed?

A Trust Deed is the constitutive document on which the fund is based. The Trust Deed is executed between the asset management company and the trustee which in the case of Alfalah GHP Value Fund is the Central Depository Company of Pakistan Ltd. The Trust Deed sets out all the relevant operational and managerial procedures by which the fund will be managed. The Trust Deed is a public document and can be viewed by any prospective investor.

Q. What is a Trustee?

The Trustee is an independent custodian of all fund assets and property and acts to protect the interest of the unit holders and ensures that Fund assets are properly invested in line with the Offering Document, Trust Deed and the NBFC Rules 2003.

Q. What is a “Prospectus” or “Offering Document”?

A “Prospectus” or an “Offering Document” is a legal document, approved by the Securities & Exchange Commission of Pakistan which highlights details about the mutual fund for the benefit and knowledge of potential investors.

It provides information about a mutual fund covering its establishment, investment strategy, borrowing restrictions, trustee’s profile, auditors’ profile, risk profile, expense profile, management company profile, procedures relating to purchase / redemption / conversion of units, fees / charges payable by investors, fees payable by the mutual fund, mode of unit price announcement etc. in order to facilitate informed decision making by potential investors.

Q. Why should a saver / investor invest in a mutual fund?

Savers / investors should invest in a mutual fund because a mutual fund provides them the appropriate investment vehicle through which they can benefit from the rewards of capital market investing. Investors who do not have the time and expertise to monitor their investments and want to take exposure in the capital markets and its positive returns can benefit from professional management and market knowledge offered by a mutual fund.

An investor has the following advantages when he invests in Alfalah GHP Value Fund in particular:

• Professional Management
• Diversification
• Market Knowledge
• Risk Management
• Liquidity
• Reasonable Returns

Q. What is Alfalah GHP Value Fund?

‘Alfalah GHP Value Fund’ is an open-ended mutual fund managed by Alfalah GHP Investment Management Ltd. The units of Alfalah GHP Value Fund are sold perpetually and can be purchased from various selected branches of Bank Alfalah Limited. Fund units can be purchased on each business day at the announced Offer Price. Detailed information on Alfalah GHP Value Fund can be obtained from its Trust Deed, Offering Document available from this website.

Q. Where will Alfalah GHP Value Fund Invest?

Alfalah GHP will be actively investing in equity market, money market / debt securities, Islamic investments, continuous financing system (CFS), deposits etc. to generate consistent and sustainable returns with managed risk for the benefit of the unit holders of Alfalah GHP Value Fund.

Q. What is the Investment Philosophy of Alfalah GHP Value Fund?

The basic theme governing the investment philosophy of Alfalah GHP Value Fund is the generation of returns sustainable over the long term while actively managing risks.

Q. What Investment Philosophy should an investor follow while investing in Alfalah GHP Value Fund?

Investors should adopt the following investment philosophy when they invest in Alfalah GHP Value Fund:

• Invest 20 – 25% of their saving in Alfalah GHP Value Fund.

• Invest for a long term.

• Do not worry about short term fluctuations.

• Invest in Alfalah GHP Value Fund to meet long term needs such as marriage / education / retirement.

Q. What is the difference between an Open-ended Fund and a Closed-end Fund?

An Open-ended Fund constantly offers its units for sale to investors and purchases / buys back all units offered for redemption by investors. Sale and purchase takes place at declared offer / redemption prices. There is no limit on the number of units outstanding or the size of the fund. There is no liquidity issue.

In case of Alfalah GHP Value Fund units can be purchased or sold through selected branches of Bank Alfalah Limited. This will be done at daily declared offer or redemption price which is based on NAV that is calculated in a transparent and professional manner.

A Closed-end Fund on the other hand offers limited number of certificates for sale and is not open for further investors once the targeted investment amount is met. Trading of certificates is done at the stock exchange through stock brokers. At times it may be difficult to dispose of large blocks of certificates on the stock market.
An Open-ended Fund like Alfalah GHP Value Fund does not have any such issue.

Q. What is NAV & NAV per unit?

NAV stands for Net Asset Value of the fund. NAV is calculated by adding up all the Funds assets minus the liabilities or any other claims on the fund. NAV per unit is calculated by dividing the NAV with the units outstanding. A fund's NAV goes up or down daily as per the underlying value of the holdings in the fund’s portfolio.

Q. What are the costs incurred by investors in buying Mutual Fund Units?

Following are a few costs (transaction specific) which an investor has to bear when he invests with a mutual fund, namely:

• “Sales Load” this charge is applicable to investors when they purchase units. For Alfalah GHP Value Fund, the sales load is currently 2.5%.

• “Redemption Fee” this charge is applicable to unit holders when they exit the mutual fund. In case of Alfalah GHP Value Fund, there is currently no redemption
  fee.

• “Management Fee” this charge is an Annual Fee payable by the mutual fund to the management company for managing the mutual fund. As per NBFC Rules an
  asset management company can charge upto 3% of the average net annual assets of the fund for the first five years of its operations and then upto 2% of such
  average net annual assets.

The above mentioned costs are subject to change from time to time after meeting the necessary regulatory approvals and formalities as required.

Q. What is Offer Price and Redemption Price?

Offer Price is the price that an investor pays when he purchases a unit. It is equivalent to the NAV per unit plus the applicable sales load. Redemption Price is the price that an investor gets when he sells his units to the fund. It is equivalent to the NAV minus back-end / redemption charges (if any). In case of Alfalah GHP Value Fund, there is currently no back-end load.

Q. What is sales load?

Sales load is a charge that an investor pays when he purchases units of a mutual fund. The sales load is used to pay sales and marketing expenses incurred for selling the units. For Alfalah GHP Value Fund, the sales load is currently 2.5% and it is subject to change from time to time.

Q. Is there any redemption or encashment fee?

There is no encashment or redemption fee.

Q. Will I receive confirmation of my investment?

At your discretion, you can either receive an account statement showing Fund units held in your name and / or you can get physical certificates for your holding of Fund’s units (at a nominal charge).

Q. How will you pay the proceeds back to us?

Your proceeds can be transferred to your designated account as per instructions given by you in the Investor Account Opening form (AGIM – 01) which you have already submitted along with your initial investment or you can ask for a crossed cheque in favour of the principal account holder.

Q. Do I need to have an account with Bank Alfalah Limited to make investment in Alfalah GHP Value Fund?

No. You do not need an account with Bank Alfalah Limited to invest in Alfalah GHP Value Fund. However, you need to open up an account with Alfalah GHP Investment Management by filling the Investor Account Opening Form. (AGIM – 01)

Q. Is my investment in and return from Alfalah GHP Value Fund guaranteed?

No. The investments and returns of Alfalah GHP Value Fund are not guaranteed.

All investments in Mutual Funds and securities are subject to market risk. The NAV based prices of units and any dividends and returns thereon are dependent on forces and factors affecting capital markets and as such these may go up or down based on market conditions. Past performance is not necessarily indicative of future results. Alfalah GHP Investment Management Limited, its sponsors, partners, directors, affiliates or any group company does not guarantee any results nor any performance of the fund. Investors are advised to read the relevant sections of the Offering Document for further understanding of the investment policies and risks involved.

Q. Who manages the Alfalah GHP Value Fund?

It is managed by Alfalah GHP Investment Management Limited ('the Management Company'). Alfalah GHP Investment Management Limited is a subsidiary of Bank Alfalah Limited. Also another key shareholder is GHP Financial Services Limited, Switzerland.

Bank Alfalah Limited is one of the leading commercial banks in Pakistan with more than 131 branches all over the country. The bank is engaged in commercial, corporate, consumer, treasury and investment banking.

GHP Financial Services is a well reputed Switzerland based fund manager. The objective of GHP Financial Services Limited is to provide sound financial advice and counselling to investors in order to achieve their long terms goals and objectives.

Q. Who to contact for further queries and fund information?

Feedback can be submitted in one of the following ways:

By calling AGIM Help line at (021) 111-090-090

Email: info@alfalahghp.com