The pension fund market of Pakistan comprised of 10 pension fund managers, which are managing 19 pension funds, having cumulative assets under management (AUM) of Rs27.037 billion as on January 2019.
According to the data released by the Securities and Exchange Commission of Pakistan (SECP) here on Tuesday, the pension funds were first launched in 2007 under the Voluntary Pension System Rules, 2005, providing an avenue for long-term savings for retirement to the unitholders. In January 2019, the pension fund market comprised of 10 pension fund managers, managing 19 pension funds with cumulative assets under management (AUM) of Rs27.037 billion.
Shariah-compliant pension funds have AUM of Rs17.96 billion or 65% against that of conventional pension funds, which stands at 9.62 billion or 34.87% of the total AUM of the industry.
The pension funds are operational in trust structure wherein a trust company is the custodian of assets of the fund and fund managers are delegated with the power of making investment decisions. Funds pooled under the pension fund are invested in equity, debt, money market and commodities to diversify inherent risks of the underlying investment while yielding optimum returns.
The fund managers, depending on the asset class, charge management fee up to 1.5% per annum from the pension funds. Further the fund managers can charge sales load up to 3% of the contribution on direct sales and up to 1.5% of the contribution if an investor carries out transaction online or through a website but not on subsequent contributions made by a participant.
All Pakistani nationals with valid CNIC are eligible to invest in the pension funds as long-term investment and savings vehicle while determining their retirement age between 60 years or 70 years. The unitholders of the pension funds are eligible to withdraw up to 50% of their accumulated balance in a lump sum and the remaining 50% in installments as pension, or 100% in installments.
Unitholders of the pension funds are eligible to avail tax credit by contributing up to 20% of the taxable income in pension fund and further, investors who are over and above 40 years of age can even avail themselves of higher tax benefits by contributing in pension fund under provisions of the Income Tax Ordinance, 2001.
Periodic performance of the pension funds relating to the last five financial years and July 2018 to December 2018, released by the SECP is tabulated as follows:
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Conventional schemes
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Names of sub- fund Date of launch Returns Management Sales
fee load
FY-2015 FY-2016 FY-2017 FY-2018 FY 2018-19 /front end
(July-Dec) load (up to)
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Equity sub-funds
ABL Pension Fund-Equity 20-Aug-14 28.79% 10.56% 31.31% -16.26% -13.40% 1.50% 3%
JS Pension Savings Fund-Equity 26-Jun-07 22.91% 3.35% 41.25% -15.88% -13.80% 0.50% 3%
Atlas Pension Fund-Equity 28-Jun-07 21.13% 4.50% 28.72% -2.97% -11.86% 1.50% 3%
MCBAH Pakistan Pension Fund-Equity 29-Jun-07 37.95% 10.77% 35.72% -9.43% -10.68% 1.50% 3%
NAFA Pension Fund-Equity 2-Jul-13 49.6% 14.8% 37.3% -7.40% -12.30% 1.50% 3%
UBL Retirement Savings Fund-Equity 19-May-10 47.71% 20.33% 30.10% -12.39% -8.78% 1.50% 3%
NIT Pension Fund-Equity 19-Jun-15 0.19% 1.22% 19.04% -16.11% -14.66% 0.75% 3%
HBL Pension Fund- Equity 16-Dec-11 31.58% 8.96% 27.33% -10.24% -9.78% 1.50% 3%
Alfalah GHP Pension Fund-Equity 2-Jan-17 N/A N/A -6.16% -12.30% -11.51% 1.50% 3%
Debt sub-funds
ABL Pension Fund-Debt 20-Aug-14 20.92% 12.14% 4.42% 3.72% 5.61% 1.50% 3%
JS Pension Savings Fund-Debt 26-Jun-07 10.75% 5.29% 4.63% 4.38% 7.84% 0.50% 3%
Atlas Pension Fund-Debt 28-Jun-07 13.03% 7.88% 5.24% 4.96% 6.60% 0.75% 3%
MCBAH Pakistan Pension Fund-Debt 29-Jun-07 16.85% 7.35% 4.31% 4.31% 6.47% 1.50% 3%
NAFA Pension Fund-Debt 2-Jul-13 17.3% 5.5% 4.4% 4.30% 5.80% 1.50% 3%
UBL Retirement Savings Fund-Debt 19-May-10 19.42% 12.29% 4.36% 4.63% 5.59% 1.50% 3%
NIT Pension Fund-Debt 19-Jun-15 6.64% 3.90% 4.48% 4.96% 8.35% 0.50% 3%
HBL Pension Fund- Debt 16-Dec-11 11.01% 8.06% 4.37% 3.99% 5.22% 1.50% 3%
Alfalah GHP Pension Fund-Debt 2-Jan-17 N/A N/A 3.74% 3.60% 5.37% 1.50% 3%
Money market sub-funds
ABL Pension Fund-MM 20-Aug-14 6.14% 4.15% 3.89% 3.85% 6.01% 1.50% 3%
JS Pension Savings Fund-MM 26-Jun-07 6.69% 4.10% 4.42% 4.09% 7.04% 0.50% 3%
Atlas Pension Fund-MM 28-Jun-07 7.93% 5.74% 5.53% 5.36% 7.24% 0.50% 3%
MCBAH Pakistan Pension Fund-MM 29-Jun-07 7.17% 4.40% 4.30% 4.39% 6.44% 1.50% 3%
NAFA Pension Fund-MM 2-Jul-13 7.8% 4.9% 4.4% 4.40% 6.30% 1.50% 3%
UBL Retirement Savings Fund-MM 19-May-10 7.27% 4.60% 4.55% 4.38% 6.22% 1.50% 3%
NIT Pension Fund-MM 19-Jun-15 6.64% 3.87% 4.17% 4.94% 6.96% 0.50% 3%
HBL Pension Fund- MM 16-Dec-11 6.88% 4.16% 4.50% 4.38% 6.22% 1.50% 3%
Alfalah GHP Pension Fund-MM 2-Jan-17 N/A N/A 3.85% 3.65% 5.27% 1.50% 3%
Commodity sub-funds
UBL Retirement Savings Fund-Commodity 1-Apr-14 -2.83% 13.77% -1.05% 1.17% 1.08% 1.50% 3%
NIT Pension Fund-Commodity 19-Jun-15 0.20% 10.05% -1.70% 4.88% 1.98% 0.50% 3%
Shariah-compliant schemes
Equity sub-funds
ABL Islamic Pension Fund-Equity 20-Aug-14 30.84% 11.31% 28.01% -11.98% -10.40% 1.50% 3%
Meezan Tahaffuz Pension Fund-Equity 28-Jun-07 26.60% 18.10% 20.40% -16.50% -12.64% 1.50% 3%
JS Islamic Pension Savings Fund-Equit 16-Jun-08 32.03% 4.13% 38.01% -20.95% -11.60% 0.50% 3%
Atlas Pension Islamic Fund-Equity 6-Nov-07 24.32% 4.99% 28.29% -9.54% -9.34% 1.50% 3%
Alhamra Islamic Pension Fund-Equity 15-Nov-07 39.53% 14.84% 33.21% -12.16% -9.92% 1.50% 3%
NAFA Islamic Pension Fund-Equity 2-Jul-13 51.5% 16.9% 35.8% -10.50% -9.80% 1.50% 3%
Al-Ameen Islamic Retirement
Savings Fund-Equity 19-May-10 45.54% 19.05% 30.45% -14.07% -8.52% 1.50% 3%
NIT Islamic Pension Fund-Equity 19-Jun-15 0.04% 6.67% 24.07% -19.51% -15.70% 0.75% 3%
HBL Islamic Pension Fund- Equity 16-Dec-11 25.92% 5.56% 27.56% -12.02% -8.00% 1.50% 3%
Alfalah GHP Islamic Pension Fund-Equi 2-Jan-17 N/A N/A -2.75% -13.44% -10.58% 1.50% 3%
Debt sub-funds
ABL Islamic Pension Fund-Debt 20-Aug-14 6.56% 3.52% 4.52% 1.26% 3.71% 1.50% 3%
Meezan Tahaffuz Pension Fund-Debt 28-Jun-07 6.40% 4.50% 4.90% 2.80% 5.40% 1.50% 3%
JS Islamic Pension Savings Fund-Debt 16-Jun-08 3.90% 3.91% 5.17% 2.27% 6.25% 0.50% 3%
Atlas Pension Islamic Fund-Debt 6-Nov-07 5.53% 4.23% 5.39% 3.58% 5.58% 0.75% 3%
Alhamra Islamic Pension Fund-Debt 15-Nov-07 4.76% 4.04% 4.46% 2.99% 5.24% 1.50% 3%
NAFA Islamic Pension Fund-Debt 2-Jul-13 5.6% 3.8% 3.9% 2.80% 5.50% 1.50% 3%
Al-Ameen Islamic Retiremen
t Savings Fund-Debt 19-May-10 5.49% 3.39% 4.54% 2.78% 5.22% 1.50% 3%
NIT Islamic Pension Fund-Debt 19-Jun-15 3.55% 3.06% 4.59% 3.24% 5.31% 0.50% 3%
HBL Islamic Pension Fund- Debt 16-Dec-11 4.97% 3.23% 5.06% 2.89% 4.97% 1.50% 3%
Alfalah GHP Islamic Pension Fund-Debt 2-Jan-17 N/A N/A 3.56% 1.50% 4.08% 1.50% 3%
Money market sub-funds
ABL Islamic Pension Fund-MM 20-Aug-14 6.31% 2.24% 3.22% 1.68% 3.79% 1.50% 3%
Meezan Tahaffuz Pension Fund-MM 28-Jun-07 6.90% 4.00% 4.40% 2.90% 5.50% 1.50% 3%
JS Islamic Pension Savings Fund-MM 16-Jun-08 5.32% 2.41% 3.85% 2.75% 6.48% 0.50% 3%
Atlas Pension Islamic Fund-MM 6-Nov-07 5.97% 4.21% 4.88% 4.02% 6.08% 0.50% 3%
Alhamra Islamic Pension Fund-MM 15-Nov-07 4.80% 2.36% 3.78% 3.34% 5.44% 1.50% 3%
NAFA Islamic Pension Fund-MM 2-Jul-13 6.2% 3.9% 3.8% 3.60% 5.90% 1.50% 3%
Al-Ameen Islamic Retirement
Savings Fund-MM 19-May-10 5.69% 3.13% 4.03% 3.32% 5.36% 1.50% 3%
NIT Islamic Pension Fund-MM 19-Jun-15 3.58% 2.79% 3.52% 3.72% 5.42% 0.50% 3%
HBL Islamic Pension Fund- MM 16-Dec-11 5.28% 2.83% 4.15% 3.41% 5.58% 1.50% 3%
Alfalah GHP Islamic Pension Fund-MM 2-Jan-17 N/A N/A 2.89% 2.52% 3.53% 1.50% 3%
Commodity sub-funds
Meezan Tahaffuz Pension Fund-Commodit 4-Aug-16 N/A N/A -9.20% 12.10% 11.80% 1.50% 3%
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