Q. What is Alfalah
GHP Investment Management Ltd.?
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
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
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
Bank Alfalah Limited (BAL) is engaged in commercial banking and related services
as defined in the Banking Companies Ordinance, 1962. BAL cannot undertake asset
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
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
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
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?
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
- Professional Management
- Market Knowledge
- Risk Management
- Reasonable Returns
Q. What is Alfalah GHP Value
‘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?
should adopt the following investment philosophy when they invest in Alfalah GHP
Invest 20 –
25% of their saving in Alfalah GHP Value Fund.
a long term.
worry about short term fluctuations.
Alfalah GHP Value Fund to meet long term needs such as marriage / education
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.
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
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
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:
this charge is applicable to investors when they
purchase units. For Alfalah GHP Value Fund, the sales load is currently
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
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
average net annual assets.
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
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
There is no encashment or
Q. Will I receive confirmation
of my investment?
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?
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
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,
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.
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
Feedback can be submitted in one of
the following ways:
By calling AGIM Help line at (021) 111-090-090