PAKISTAN PENSION FUND & PAKISTAN ISMALIC PENSION FUND (under Voluntary Pension Rules 2005 (VPS)

Salient Features of the schemes of the Self-contributory pensions saving cum investment schemes, Employers can contribute too Individualized asset allocation (High Volatility, Medium Volatility, Low Volatility, Lower Volatility and 2 lifecycle allocation plans. Islamic mode also available unlike Provident Fund/Pension Plans offered by Insurance Cos. Tax rebate allowed on amount invested in VPS upto a maximum of 20% of individuals annualized taxable income OR actual investment, whichever is lower. Catch-up rebates allowed on contributions for persons joining at age of 41 or above Creation of personal pension accounts on individuals name Portability of individual pension accounts from one employer to another and from one Pension Fund Manager to another Minimum investment amount of Rs.1,000/-, No maximum contribution limit

What makes VPS attractive Wealth Creation (Individual can decide his own asset allocation plan) Asset valuation on fair value principle for all participants Upto 50% tax free withdrawal at the time of exit from scheme (between the age 60 & 70) Post retirement options: Annuity plan OR Income Drawdown Plan Portable scheme in case of job mobility Administration Outsourced if Company opts as retirement benefit plan Transparency & Confidence of investors, as sub funds unit prices are announced daily and a monthly performance report issued 10 different investment choices available each in Conventional & Islamic Pension Fund Flexibility, individual can change investment plans twice an year and can also change Pension Fund Manager once an year Accidental death & disability insurance cover (free/complementary) upto 100 times of average monthly contribution and extremely low cost optional insurance covers for untimely death, emergency hospitalization.

Arif Habib Pension Funds: Pakistan Pension Fund (Conventional ) Pakistan Islamic Pension Fund (Sharia compliant)

Each Pension Funds comprises of three sub-funds: Equity Sub-Fund Debt Sub-Fund Money Market Sub-Fund Additional funds like Real Estate and International investments may be added in future

Asset Allocation Plans: Sr. No. 1 2 3 4 5 6 Equity SubDebt SubMoney Fund Fund Market High Volatility Min 65% Min 20% Nil Medium Volatility Min 35% Min 40% Min 10% Low Volatility Min 10% Min 60% Min 15% Lower Volatility Nil Min 40% Min 40% Aggressive Lifecycle 80% allocation in equity till age 50 and then gradual reduction Progressive Lifecycle 80% allocation for age 20 and gradual reduction each year until age 60 *Volatility here means the downward or upwards change in Principal amount invested owing to change in price of the securities in the portfolio of a sub-fund. Plans

Ideal Scheme - Progressive Lifecycle Plan

Invest largely in high yielding inflation protected Equity at younger ages and move progressively to stable Debt and Money Market funds as age increases.

Tax Credit for Individuals (Section 63 of I.T. Ordinance) Salaried individuals can get an annual tax credit (depending upon their respective tax slabs) Self employed individuals can get an annual tax credit (depending upon their respective tax slabs) Tax rebate can be calculated as per investors own tax slab on the basis of lower of the following there a) Actual amount invested in Pension Fund OR b) 20% of individuals annual taxable income Lower of above two is multiplied by income tax slab to arrive at tax rebate amount. Company can adjust tax credit/rebate (as per FBR Circular 1 of 2007) Persons joining the scheme at age 41 & above get catch up rebates as Income tax law allows 2% investment allowance for each year above 40 years of age (till the year 2016) subject to the maximum cap of 50% of their taxable income of the preceding year. Investment Risks and Tax Implication All investments in Pension Fund are subject to market risks. The value of such investments may depreciate as well as appreciate, subject to market fluctuations and risks inherent in all such investments. Investors should read the Offering Document carefully to understand thinvestment policies, risks and tax implication and should consult their legal, financial or tax adviser before making any investment decisions. Withdrawls from the Pension Fund before the retirement age are subject to tax under the provisions of the Income Tax Ordinance, 2001.