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UBL Fund Managers

For Your Investment Needs


UBL Fund Managers
Key Facts
Founded in 2001, Ranked No. 1 in ‘Top
100% owned by United of Mind’ recall survey First AMC in Pakistan
Bank Limited by AC Nielsen to be GIPS compliant

AM2++ Rating ‘High Management Quality’ (by JCR- First AMC in Pakistan to
VIS) offer CPPI-based product

Lipper Fund Award in the First AMC in First AMC in Pakistan to get the
category of Best Performing Pakistan to receive Corporate Excellence Award
Islamic Equity & Islamic two Awards at the Twice from Management
Income Funds Globally P@SHA ICT Awards Association of Pakistan

Most customer - centric Highest level of


asset manager in operational & strategic
Pakistan excellence in IT
references for accolades: http://mappk.org, http://lipperfundawards.com, www.jcrvis.com.pk, http://pashaictawards.com, www.the-european.eu, CIO.com

37.5k+ Active institutional & individual investor accounts


@ 31 Oct 2017

65+ Billion Rupees in AUM


UBL Funds
Our Board of Directors

Name of Director Position

Azhar Hamid Chairman

M. Yasir Qadri Chief Executive / Director

Naz Khan Director

Sharjeel Shahid Director

Syed Zia Ijaz Director

Syed Farrukh Zaeem Director

Sadeed H. Barlas Director

©2017 UBL Fund Managers. All rights reserved. 3


UBL Funds
Expert Team of Investment Professionals
Years of
Key Person Designation Education and Professional Qualifications Professional
Experience

 BBA, University of Central Oklahoma, USA


Yasir Qadri Chief Executive Officer 16+ years
 MBA, University of Central Oklahoma, USA

 CFA Charter Holder


Syed Suleman Akhtar Chief Investment Officer 16+ years
 MBA, Institute of Business Administration, Karachi

 CFA Charter Holder


Head of Investment Strategies &
Asim Wahab Khan  MBA, Institute of Business Administration 11+ Years
Equities
 BBA, Institute of Business Administration

 CFA Charter Holder


Muhammad Salman  MBA, Institute of Business Administration, Karachi
Fund Manager – SMA 10+ Years
Siddiqui  BCS, National University of Sciences & Technology (NUST),
Rawalpindi

 MBA
Usama Bin Razi Fund Manager – Fixed Income  Passed CFA Level 2 10+ Years
 BE Computer Systems

 Passed all levels of CFA


Syed Shabbir Sardar Fund Manager – Islamic Funds  MAS, Economics from Applied Economics Research Center 7+ Years
 FRM, Part II candidate

©2017 UBL Fund Managers. All rights reserved. 4


Mutual Funds
For A Diversified Portfolio!!

Mutual Funds Investment Pension SMA


Plans Funds

©2017 UBL Fund Managers. All rights reserved.


UBL Funds
Performance of Equity & Asset Allocation Funds

1 Year Return 3 Years Return

Fund Name
Peer Group Benchmark Peer Group
UBL Funds Benchmark UBL Funds
Average Average

UBL Stock Advantage


5.84% ‐0.69% -1.00% 43.25% 25.28% 36.34%
Fund
Al‐Ameen Shariah Stock
6.48% 0.98% 0.09% 48.15% 38.19% 39.61%
Fund
UBL Retirement Savings
3.67% N/A 1.77% 59.86% N/A 47.34%
Funds – Equity Sub Fund
Al-Ameen Islamic
Retirement Savings Fund – 3.42% N/A 0.70% 65.12% N/A 47.75%
Equity Sub Fund

UBL Asset Allocation Fund 5.76% 8.35% -1.14% 37.23% 31.12% 23.13%
Al‐Ameen Islamic Asset
6.21% 8.35% -0.67% 33.32% 31.84% 24.01%
Allocation Fund
*Returns of Funds with equity exposure are absolute returns
* Returns are till October 31 2017

©2017 UBL Fund Managers. All rights reserved. 6


UBL Funds
Performance of Income Funds

1 Year Return 3 Years Return

Fund Name
Peer Group Benchmark Peer Group
UBL Funds Benchmark UBL Funds
Average Average

UBL Government
4.77% 5.98% 5.80% 8.66% 6.21% 8.07%
Securities Fund
Al-Ameen Islamic
3.70% 4.62% 3.16% 5.01% 5.49% 4.87%
Sovereign Fund
UBL Income Opportunity
3.98% 6.02% 5.97% 6.84% 6.72% 7.82%
Fund

United Growth & Income


5.24% 6.19% 4.41% 9.61% 7.05% 8.00%
Fund

Al-Ameen Islamic
3.99% 5.26% 5.19% 6.15% 6.08% 6.78%
Aggressive Income Fund
*Returns of Funds for more than a year are on morning star methodology
* Returns are till 31 October 2017

©2017 UBL Fund Managers. All rights reserved. 7


UBL Funds
Performance of Retirement Funds

1 Year Return 3 Years Return


Fund Name
Peer Group Peer Group
UBL Funds UBL Funds
Average Average
UBL Retirement Savings Fund
Equity 3.67% 1.77% 59.86% 47.34%
Debt 4.98% 4.67% 34.67% 25.29%
Money Market 4.34% 4.45% 15.92% 15.82%

Al-Ameen Islamic Retirement Savings Fund

Equity 3.42% 0.70% 65.12% 47.75%

Debt 3.13% 3.25% 12.73% 13.82%

Money Market 3.42% 3.37% 12.81% 12.90%

*Returns of Funds with equity exposure are absolute returns


* Returns of Fixed Income funds are annualized returns.
* Returns are till 31 October 2017

©2017 UBL Fund Managers. All rights reserved. 8


Common Misconceptions
About Investing
Why Equities
Equities win the race

Average Annual Returns (Jan 2001 – Sep 2017) (CAGR)

USDPKR 3.7%

Inflation 8.0%

1 Yr T-Bills 8.7%

NSS 10.5%

Gold 13.7%

KSE-100 22.0%
0% 5% 10% 15% 20% 25%
Source: KSE, SBP, NCEL & UBL Research

©2017 UBL Fund Managers. All rights reserved. 10


Common Investor Oversights
Nominal vs Real Returns

Pakistan Nominal and Real Returns (Jan ‘01 – Sep ‘17)


NSS
Equities Long Term Gov Sec Medium Term Gov Sec Short Term Gov Sec (Special Savings
KSE-100 10 yrs PIB 5 yrs PIB 1 Yr T-bills Gold Certificates) USDPKR

24%

22.03%
19%

14.01%
14%
13.70%

9% 10.34% 10.45%
9.65%
8.66% 5.68%

4% 2.43%
2.32%
1.63% 3.67%
0.64%
-1%

-4.35%
-6%
Nominal Rates of Return (p.a.) Real Rates of Return (p.a.)
Source: SBP, KSE, Reuters, Savings.gov.pk

©2017 UBL Fund Managers. All rights reserved. 11


Common Investor Oversights
Save Early, Grow Wealthy

Monthly Rate of
10 years 15 years 20 years 25 years 30 years
Investments Returns (p.a.)

Total
120,000 180,000 240,000 300,000 360,000
Contribution

10% 204,845 414,470 759,369 1,326,833 2,260,488


Rs. 1,000
12% 230,039 499,580 989,255 1,878,847 3,494,964

15% 275,217 668,507 1,497,239 3,243,530 6,923,280

Total
180,000 270,000 360,000 450,000 540,000
Contribution

10% 307,267 621,706 1,139,053 1,990,250 3,390,732


Rs. 1,500
12% 345,058 749,370 1,483,883 2,818,270 5,242,446

15% 412,826 1,002,760 2,245,859 4,865,294 10,384,919

Note: This calculation is for informational purposes only and should not be construed as an offer or solicitation to buy or sell investment products.
The information presented is in summary form and does not substitute for professional advice. The information does not take into account your
personal needs and financial circumstances and you should consider whether it is appropriate for you. Growth rates are assumed to be consistent
throughout the time periods for simplicity and illustration purposes, while this may not be the case in reality where returns are market-driven. The
examples do not purport to represent the performance of any security or investments.

Disclaimer: All investments in mutual funds & pension funds are subject to market risks. Past performance is not necessarily indicative of future12
results. Please read the Offering Document(s) to understand investment policies and risks involved.
Section 2
Investment Avenues in Pakistan
Investment Avenues in Pakistan
Example : National Savings Schemes & Banks

 NSS Products:
 Defense Saving Scheme : 1- 10 Yrs Fixed Term
 Special Saving Scheme : 6-months - 3 Yrs Fixed Term
 Regular Income Scheme : 4 – 5 Yrs Fixed Term
 Behbood Saving Scheme : 4 - 10 Yrs Fixed Term

 Bank Products:

 Current Account (Highly Liquid)


 Savings Account (Liquid)
 Term-Deposit Receipts (Illiquid)

©2017 UBL Fund Managers. All rights reserved. 14


Options for Investors and their main issues
By Asset Class

EQUITY BONDS BANKS GOLD


Large # of Stocks Lock in Period Lock in Period No Local Control

When to buy? Liquidity Management Low Rate of Return Undocumented

When to sell? No Guaranteed Buyer Large Investment Size Theft/Security

Multiple Views No Guaranteed Seller Service Related Issues


PROPERTY
High Volatility Buy/Sell May be Liquid
Undocumented
Time Consuming Lot Size Interest Rates
Highly Volatile
Issues in Self Management Risk and Rating Risk and Rating
Large Ticket Game

©2017 UBL Fund Managers. All rights reserved. 15


Introduction To
Mutual Funds
Mutual Funds
For A Diversified Portfolio!!
Investment programs should be developed with a view to enhancing yields. We believe that
this requirement can be filled by initiating an investment program which can be managed in
one of the ways outlined below.

Managing your own portfolio is like driving yourself.


It is flexible, and self-directed, but it takes time, knowledge,
and resources to find the right route and make sure you’ve
Drive Yourself remained on it.

Investing in a mutual fund is like taking the bus.


A professional driver stewards the bus, and you share the
exact ride with everyone else. The Fund Manager has control
Take a Bus and attention and profits are equally divided.

©2017 UBL Fund Managers. All rights reserved. 17


Mutual Funds
What They Are?

 Pool of investments

 Collected from various people

 Invested in different investment venues such as stocks, bonds,


short-term money-market instruments etc.
 Profits earned are distributed to investors in proportion to their
holdings in mutual funds

©2017 UBL Fund Managers. All rights reserved. 18


Mutual Funds
How They Work?
Investors

Passed back to Pool their Wealth with

Fund
Returns
Managers

Generate
Invests in

Securities

©2017 UBL Fund Managers. All rights reserved. 19


Mutual Funds
Advantages

 Professionally Managed - High Service Quality

 Diversification

 Economies of Scale

 Liquidity

 Fast Withdrawals

 Choices of schemes

 The Open Ended Advantage

 Tax Advantages
©2017 UBL Fund Managers. All rights reserved. 20
Mutual Funds
Managed By Asset Management Company

 A company that takes investments of numerous individuals, corporations,


financial institutions and collectively invests on their behalf.

 An AMC operates multiple mutual funds / collective investment schemes

 Asset Management Companies are regulated by SECP

 Asset Management Companies provide end-to-end investment solutions


(solicitation, research, investments, customer service, operations and redemption)

©2017 UBL Fund Managers. All rights reserved. 21


Investment & Redemption Procedure
Open End Fund

Investment

Redemption

©2017 UBL Fund Managers. All rights reserved. 22


Section 4
Categorization of Mutual Funds
Mutual Fund Categories
Money Market/ Cash

 Extremely Safe / Capital Preservation

 Funds are invested in Treasuries, Commercial Papers, Term Deposits


and Daily Bank Deposits.

 High Credit Quality of Net Assets

 Banks must be AA Rated .

 Maturity of any single asset cannot exceed 180 days

 Consistent Return / Low Interest Rate Risk

©2017 UBL Fund Managers. All rights reserved. 24


Mutual Fund Categories
Income Funds

 Returns relatively higher than Money Market / Cash Funds

 Funds are invested in Treasuries, Commercial Papers, Term Deposits,


Daily Bank Deposits, PIBs, TFCs, Ijara Sukuks and Leveraged
Financing (MTS)

 All investments should be made in investment grade securities

 Interest Rate Play is crucial to make returns

©2017 UBL Fund Managers. All rights reserved. 25


Mutual Fund Categories
Balanced Funds

 Moderate to High Risk

 Potential to generate Higher return than all fixed-income funds.

 Returns can vary widely on monthly basis

 Funds are invested in Treasuries, Commercial Papers, Term Deposits,


Daily Bank Deposits, PIBs, TFCs, Ijara Sukuks,

 Leveraged Financing (MTS) and Equities

©2017 UBL Fund Managers. All rights reserved. 26


Mutual Fund Categories
Equity Funds

 Primarily invested in Equities and then in fixed Income investments

 High Risk – High Return Strategy

 Potential to generate Very High returns. Contrarily, returns can plunge


into Negative

 Returns can vary widely on monthly basis

©2017 UBL Fund Managers. All rights reserved. 27


Mutual Funds
Asset Classes & Objectives

EQUITY DEBT / Balanced


MONEY CAPITAL FIXEDDEBT /
INCOME EQUITY
MARKET
High probability to PROTECTED* FIXED INCOME Diversified portfolio
beat inflation Reasonable Returns High probability to
Capital preservation Capital Guarantee Reasonable Returns High probability to beat beat inflation
To generate high Returns Higher than inflation
returns
Stable returns May beat inflation Returnsmarket
money Higher than To generate high
money market Achieve near-equity returns
Long term capital
Returns higher than Amount that is idle for Likelihood of beating level returns
appreciation
banks approx. 2 /3 years Likelihood
inflationof beating Long term capital
inflation appreciation
*Through an SMA

Lowest Low Medium High

©2017 UBL Fund Managers. All rights reserved. 28


Section 5
Investor Protection
Investor Protection
The Regulator

Securities & Exchange Commission of Pakistan (SECP):

 Other than mutual funds SECP, regulates securities market,


insurance companies, NBFCs, REITs, Pension Schemes

 NBFC Rules - SECP has formulated the legal structure for Mutual
Funds in Pakistan, which has inherent checks and balances to

protect the investors

 All New Products (Mutual Funds) are approved by SECP

before actually coming in the market (including any

advertisements and/or product related communication through

public media)
©2017 UBL Fund Managers. All rights reserved. 30
Investor Protection
The Trustee

Central Depository Company:

 Keeps custody of all the assets of a mutual fund

 Holds them on behalf of the investors who have invested in that


particular mutual fund (represent Investors)

 Keeps a check on mutual fund/fund managers activity in


accordance with their investment objective / policies

CDC has been the most active Trustee service provider for Asset
Management companies in Pakistan (over 90% of the funds are have CDC
as their Trustee)

©2017 UBL Fund Managers. All rights reserved. 31


Invest To Avail
Add on benefits
Add on Benefits
Save Taxes

Section 62 of Income Tax Ordinance, 2001


Any mutual funds investor may claim Income Tax savings up to 20%
provided one holds investments for 2 years

Section 63 of Income Tax Ordinance 2001


Apply your tax rate to the lower of:

 Total Contribution paid by a Pension Fund investor over the year

 20% of investor’s taxable Income (for relevant year) plus 2% p.a.


for each year exceeding 40 years; total contribution for tax credit
not to exceed 30% of the total taxable income of preceding year

©2017 UBL Fund Managers. All rights reserved. 33


Add on Benefits
Save Taxes- Illustration
Preceding Annual Annual Investments
Income Effective Tax Credit (PKR)
Year’s Income Income (PKR)
Classes Tax Rate
Income (PKR) Tax (PKR) 40 yrs 45 yrs 40 yrs 45 yrs
Salaried 2,000 0.40% 400 600
500,000 500,000 100,000 150,000
Self-Employed 7,000 1.40% 1,400 2,100

Salaried 92,000 6.13% 18,400 27,585


1,500,000 1,500,000 300,000 450,000
Self-Employed 144,500 9.63% 28,900 43,335

Salaried 137,000 7.61% 27,400 41,094


1,800,000 1,800,000 360,000 540,000
Self-Employed 204,500 11.36% 40,900 61,344

Salaried 259,500 10.38% 51,900 77,850


2,500,000 2,500,000 500,000 750,000
Self-Employed 344,500 13.78% 68,900 103,350

Salaried 597,000 14.92% 119,400 179,040


4,000,000 4,000,000 800,000 1,200,000
Self-Employed 719,500 17.99% 143,900 215,880

Salaried 1,422,000 20.31% 284,000 426,510


7,000,000 7,000,000 1,400,000 2,100,000
Self-Employed 1,669,500 23.85% 333,900 500,850
Above calculation is for salaried class only
For additional tax rebate in VPS , total contribution not to exceed 30% of preceding year’s total taxable income. 34
Add on Benefits
Free Takaful Coverage

 Available on all investment plans

 Equal to 100% of your total investment value up to Rs. 5 million

 Includes accidental and natural death (of any cause)

 Minimum investment for eligibility is just Rs. 50,000

 All investors between 18-64 years are eligible

 Life Takaful provider is Pak Qatar Family Takaful Limited

©2017 UBL Fund Managers. All rights reserved. 35


Add on Benefits
Customer Services!!

VALUE ADDED SERVICES


Online/ Investment Tele/Mobile SMS
SMS Email Tele SRF Web Chat Mobile App ATM
Internet Convenience Transact calculators

Investment UBL Phone Contact Web query Investment Prompt


Pull Service Alerts Redemption Redemption
Details Banking Details resolution Details Calculations

UBL Net Contact


Push Service Statements Redemption Conversion Redemption
Banking Instructions

Transaction Conversion E-Account Conversion

E-profile E-Profile
update Update

©2017 UBL Fund Managers. All rights reserved. 36


For Investment Contact
M ARBAB KHADIM –
CMFD
03006895809
THANK YOU!
Disclaimer: All investments in Mutual Funds & Pension Schemes are subject to market risks. Please read the Offering
Document(s) of fund(s) and Supplementary Offering Document(s) of the plan(s) to understand investment policies and risks
involved. It is recommended that investors/potential investors seek professional tax advice from an independent tax
consultant regarding their own personal circumstances. The views expressed above are solely based on our own
interpretation of the tax law.

www.UBLFunds.com
©2017 UBL Fund Managers. All rights reserved.