Risk Control in Investment Process

Investment process requires disciplined risk management. AGAF will incorporate adequate safeguards for controlling risks in the portfolio construction process. The risk control process involves reducing risks through optimal portfolio diversification. AGAF believes that this diversification would help achieve the desired level of consistency in returns.

Types of Units

Currently Alfalah GHP Alpha Fund offers following types of units

• Growth Units (entitled to Bonus Units in case of any distribution by the Fund)
• Income Units (entitled to Cash Dividend in case of any distribution by the Fund)

An investor at the time of initial investment or re-investment shall select the type(s) of Unit(s) in which investor wishes to invest in , namely Growth Unit and/ or Income Units.

Growth Units:

Growth Units are meant for those Unit Holders who want to receive Bonus Units only at the time of any interim and annual distribution announcements made by the Management Company from time to time. However, the Unit Holder(s) will have the option at the time of investment or subsequently through Service Request Form (AGIML – 02) to en-cash bonus units at Ex-NAV for the relevant distribution period

Income Units:

Income Units are meant for those Unit Holders who want to receive Cash Dividend only at the time of any interim and annual distribution announcements made by the Management Company from time to time. However, the unit holders may instruct in writing at the time of investment or subsequently or through Service Request Form (AGIML – 02) to reinvest their cash dividend on the basis of the ex- NAV at the Distribution Date.  Such reinvestment shall be made, net of any taxes, charge and duties that the Management Company or the Trustee is obliged to recover from the Unit Holder(s). For details please refer clause 5.4.4 of the Offering Document

Characteristics of Units

The Management Company may from time to time amend the minimum amount of initial investment that is required to open an Investment Account (Account) with the Registrar. Presently, the minimum amount of investment to open an Account for purchasing the Units of the Fund is Rs. 5,000/- and the minimum amount for adding to an existing Account is Rs. 1,000/- per transaction. The Management Company reserves the right to alter the minimum amounts stated hereinabove after giving 30 days prior notice to the unit holders In the event the investment in any investor's Account falls below the minimum level as a result of revised limits, changes in valuation, redemption, conversion, transfer or transmission, the Management Company may instruct the Registrar to close such Account by redeeming the Units in such accounts at the close of any accounting period at the price applicable to redemptions on such date by giving 15 days prior notice to the Unit Holder(s).

Payment for Purchase of Units

Payment for the Fund Units can be made in the form of:

.i. Cheque (marked “ Account Payee Only ” in favor of “CDC-Trustee Alfalah GHP Alpha Fund” );

.ii. Demand draft or Pay-order in favor of “CDC-Trustee Alfalah GHP Alpha Fund” ;

.iii. Online transfer money with proper intimation to the Management Company/Registrar applicable for Bank Alfalah Limited Account Holder(s) only.

Payment for Redemption of Units

Units will be redeemed on the basis of daily Net Asset Value (NAV) announced as of the close of the Business Day on which a correctly filled Units Transaction Form (AGIML – 01) is submitted within business hours on the Business Day as announced by the Management Company from time to time.

Payment of the redemption proceeds will be made by a cross cheque, in favor of Unit Holder's registered name or first named Joint Holder in the event of Joint Holders, and will be sent to registered address of the Unit Holder or first named Joint Holder within six (6) Business Days of the receipt of a properly documented request for redemption of Units.

Distribution Policy

The net amount available for distribution at the end of the financial year (or such interim period as may be decided by the Management Company), shall comprise of the revenues earned by the Fund including the net impact of the revenue collected and paid out in the NAV calculation through Purchase (Offer) and Redemption (Repurchase) of Units, less all expenses incurred or accrued attributable to the Fund.

Tax Credit

Unit Holders other than a company shall be entitled to a tax credit under Section 62 of the Income Tax Ordinance, 2001, on purchase of new Units. The amount on which tax credit will be allowed shall be lower of (a) amount invested in purchase of new Units, (b) 10% of the taxable income of the Unit Holder, and (c) Rs. 300,000 (Rupees Three hundred  thousand), and will be calculated by applying the average rate of tax of the unit holder for the tax year. If the Units so acquired are disposed within 12 months, the amount of tax payable for the tax year in which the Units are disposed shall be increased by the amount of tax credit.

Zakat

Units held by resident Pakistani shareholders (individuals only) shall be subject to Zakat at 2.5% of the Par value of the Units under Zakat and Ushr Ordinance, 1980, (XVII of 1980), except those exempted under the said Ordinance. Zakat will be deducted at source from the dividend amount or from the redemption proceeds.

Disclaimer

The tax and Zakat information given above is based on the Management Company's tax adviser's interpretation of the law, which to the best of the Management Company's understanding is correct but Investors are expected to seek independent advice so as to determine the taxability arising from their investment in the Units of the Fund. Furthermore, tax and Zakat laws, including rates of taxation and of withholding tax are subject to amendments from time to time. Any such amendments in future shall be deemed to have been incorporated herein.