AGIML 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 is a joint venture company established by Bank Alfalah Ltd. and GHP Arbitrium (Formerly GHP Financial Services Limited),a Switzerland based Fund Manager.
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.
AGIML is an asset management company established under NBFC Rules and is classified as a Non Banking Finance Company. AGIML is a separate business entity having a separate board of directors.
It is a subsidiary of Bank Alfalah Limited.
Bank Alfalah Limited (BAFL) 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 distributor for AGIML in marketing it’s products to the public.
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. 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.
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. As an added safeguard for investors, the title to all assets owned by the fund is held by the Trustee.
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.
An investor has the following advantages when he/she invests in AGIML managed funds in particular:
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.
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.
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.
Following are a few costs (transaction specific) which an investor has to bear when he invests with a mutual fund, namely:
The above mentioned costs are subject to change from time to time after meeting the necessary regulatory approvals and formalities as required.
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).
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.
There is no encashment or redemption fee.
Making an investment in one or more funds managed by AGIML is a simple process. The first step is to open an account with AGIML by filling out Section 1 – Section 5 of the Account Opening & Unit Transaction Form (AGIML-01) available for downloading on the company’s website.
An investor must also provide Investment Details (Section – 6) in the above form accompanied by the payment for the investment, a Know your Customer form, and a Source of Income form, along with other Required Documentation.
The above documents should be delivered at any of the Authorized Branches of the Distribution Company, or to the Investment Facilitator, or may be submitted directly to the Management Company.
Redeeming your investment, partially or entirely, simply requires you to submit the Account Opening and Unit Transaction Form (AGIML-01) with Redemption Details (Section 7) filled in.
In order to convert your investment from one fund to another, you need to submit the Account Opening and Unit Transaction Form (AGIML-01) with Fund Swap Details (Section 9) duly filled in, indicating the fund from which investment is being converted, along with amount, and the fund into which investment is being converted, along with amount.
The duly completed form with the Fund Swap Details should be delivered at any of the Authorized Branches of the Distribution Company, or to the Investment Facilitator, or may be submitted directly to the Management Company.
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).
You may contact us by email at firstname.lastname@example.org, or by phone at (021) 111-090-090
and convey your requirement to our investor services representative and the requested account statement will be dispatched to you via mail/fax/email, as per your preference.
The cut-off time for investment in AGIML funds is 9:00 am to 4:00 pm on any business day.
Your proceeds can be transferred to your designated account as per instructions given by you in the Investor Account Opening form (AGIML – 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.
No. You do not need an account with Bank Alfalah Limited to invest in AGIML managed funds. However, you need to open up an account with AGIML by filling the Investor Account Opening Form. (AGIML – 01)
No. The investments and returns of AGIML funds are not guaranteed, with the exception of the AGIML Capital Preservation Fund, in which principal investment is 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. AGIML, 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.
FMR is a Fund Manager Report that is prepared on a monthly basis and placed on the company’s website. The FMR contains a synopsis of each fund’s performance in the previous month, and other relevant details regarding the funds.
The per unit Net Asset Value of each fund is prepared on a daily basis and is updated in the website of the company every evening.
Yes, in order to qualify for their tax exempt status, mutual funds are mandated to pay out 90% of their income, less unrealized capital gains, as cash dividends.