Securities and Exchange Commission of Pakistan releases comparative performance of private pension funds

Islamabad, August 04, 2017 (PPI-OT):The private pension fund industry grew by over 32% during FY 2016-2017, and the total assets of the industry crossed Rs25 billion. The growth in the pension industry has primarily resulted from an increase in participation by general investors and better performance of the stock market. Private pension funds have more than 18,000 participants, and nearly 60% of their assets are invested in the equity market. Investors preferred sharia-compliant pension products over conventional products. Out of Rs25 billion assets of pension funds, over Rs16 rupees comprise of sharia-compliant securities.

Private pension funds were introduced in 2007, under the 2005 Voluntary Pension System Rules. At present, there are 19 pension funds operating in the market, out of which 10 are Sharia compliant and 9 are conventional. These funds are managed by 10 fund managers, who have vast experience in managing pooled investments. The pension funds provide participants with options to invest in securities and commodities.

Participants can choose allocation policies suiting their risk and return preferences. The fund managers, depending on an asset class, charge fee ranging from 0.5% to 1.5% per annum. Fund managers can also charge sales load up to 3% of the contribution. However, the SECP has issued a directive restraining pension fund managers to charge sales load if investors themselves approach the fund manager for investment.

All persons holding CNIC can join pension funds and get tax credit of up to 20% of taxable income. People above 40 years of age can get even higher tax benefits. Participants can choose retirement age between 60 to 70 years. On retirement, they can withdraw up to 50% of the accumulated balance in lump sum and the remaining 50% in instalments, as pension.

The periodic performance of the pension funds relating to the last five financial years is as follows:

Islamic pension funds
Category of fund                  Date of                               Return%
Equity sub-funds                  launch            FY-2013   FY-2014   FY-2015   FY-2016   FY-2017
Meezan Tahaffuz Pension Fund      28-Jun-07         54.90%    32.40%    26.60%    18.10%    20.40%
JS Islamic Pension Savings Fund   16-Jun-08         55.71%    49.02%    32.03%     4.13%    38.01%
Al-Ameen Islamic Retirement       19-May-10         55.55%    41.13%    45.54%    19.05%    30.45%
Savings Fund
Atlas Pension Islamic Fund         6-Nov-07         49.02%    24.88%    24.32%     4.99%    28.29%
Pakistan Islamic Pension Fund     15-Nov-07         41.80%    42.10%    39.53%    14.84%    33.21%
HBL Islamic Pension Fund          16-Dec-11         50.30%    44.41%    25.92%     5.56%    27.56%
NAFA Islamic Pension Fund          2-Jul-13           N/A     36.30%    51.50%    16.90%    35.80%
ABL Islamic Pension Fund          20-Aug-14           N/A      N/A      30.84%    11.31%    28.01%
NIT Islamic Pension Fund          19-Jun-15           N/A      N/A       0.04%     6.67%    24.07%
Alfalah GHP Islamic Pension       02-Jan-17           N/A      N/A        N/A      N/A      -2.75%
Fund
Debt sub-funds
Meezan Tahaffuz Pension Fund      28-Jun-07          8.30%     7.70%     6.40%     4.50%     4.90%
JS Islamic Pension Savings Fund   16-Jun-08          7.86%     6.76%     3.90%     3.91%     5.17%
Al-Ameen Islamic Retirement       19-May-10          8.13%     7.48%     5.49%     3.39%     4.54%
Atlas Pension Islamic Fund         6-Nov-07          7.79%     8.04%     5.53%     4.23%     5.39%
Pakistan Islamic Pension Fund     15-Nov-07          6.80%     8.22%     4.76%     4.04%     4.46%
HBL Islamic Pension Fund          16-Dec-11          8.67%     7.04%     4.97%     3.23%     5.06%
NAFA Islamic Pension Fund          2-Jul-13           N/A      8.20%     5.60%     3.80%     3.90%
ABL Islamic Pension Fund          20-Aug-14           N/A      N/A       6.56%     3.52%     4.52%
NIT Islamic Pension Fund          19-Jun-15           N/A      N/A       3.55%     3.06%     4.59%
Alfalah GHP Islamic Pension Fund  02-Jan-17           N/A      N/A        N/A      N/A       3.56%
Money market sub-funds
Meezan Tahaffuz Pension Fund      28-Jun-07          7.80%     6.90%     6.90%     4.00%     4.40%
JS Islamic Pension Savings Fund   16-Jun-08          6.56%     6.64%     5.32%     2.41%     3.85%
Al-Ameen Islamic Retirement       19-May-10          7.79%     6.56%     5.69%     3.13%     4.03%
Savings Fund
Atlas Pension Islamic Fund         6-Nov-07          7.12%     7.67%     5.97%     4.21%     4.88%
Pakistan Islamic Pension Fund     15-Nov-07          7.70%     6.86%     4.80%     2.36%     3.78%
HBL Islamic Pension Fund          16-Dec-11          7.70%     6.08%     5.28%     2.83%     4.15%
NAFA Islamic Pension Fund          2-Jul-13           N/A      7.50%     6.20%     3.90%     3.80%
ABL Islamic Pension Fund          20-Aug-14           N/A       N/A      6.31%     2.24%     3.22%
NIT Islamic Pension Fund          19-Jun-15           N/A       N/A      3.58%     2.79%     3.52%
Alfalah GHP Islamic Pension Fund  02-Jan-17           N/A       N/A       N/A       N/A      2.89%
Commodity sub-fund
Meezan Tahaffuz Pension Fund    4-Aug-16         N/A      N/A      N/A      N/A     -9.40%
Conventional pension funds
Equity sub-funds
JS Pension Savings Fund         26-Jun-07      78.21%    61.51%   22.91%   3.35%    41.25%
UBL Retirement Savings Fund     19-May-10      66.42%    39.90%   47.71%   20.33%   30.10%
Atlas Pension Fund              28-Jun-07      52.48%    35.30%   21.13%   4.50%    28.72%
MCBAH Pakistan Pension Fund     29-Jun-07      55.70%    49.60%   37.95%   10.77%   35.72%
HBL Pension Fund                16-Dec-11      45.41%    25.57%   31.58%   8.96%    27.33%
NAFA Pension Fund                2-Jul-13        N/A     39.00%   49.60%   14.80%   37.30%
ABL Pension Fund                20-Aug-14        N/A      N/A     28.79%   10.56%   31.31%
NIT Pension Fund                19-Jun-15        N/A      N/A     0.19%    1.22%    19.04%
Alfalah GHP Pension Fund        02-Jan-17        N/A      N/A      N/A      N/A     -6.16%
Debt sub-funds
JS Pension Savings Fund         26-Jun-07      11.42%    4.36%    10.75%   5.29%    4.63%
UBL Retirement Savings Fund     19-May-10       9.90%    7.80%    19.42%   12.29%   4.36%
Atlas Pension Fund              28-Jun-07       8.47%    7.83%    13.03%   7.88%    5.24%
MCBAH Pakistan Pension Fund     29-Jun-07      10.10%    7.16%    16.85%   7.35%    4.31%
HBL Pension Fund                16-Dec-11       8.91%    7.44%    11.01%   8.06%    4.37%
NAFA Pension Fund              2-Jul-13    N/A     8.20%   17.30%   5.50%    4.40%
ABL Pension Fund              20-Aug-14    N/A     N/A     20.92%   12.14%   4.42%
NIT Pension Fund              19-Jun-15    N/A     N/A     6.64%    3.90%    4.48%
Alfalah GHP Pension Fund      02-Jan-17    N/A     N/A      N/A      N/A     3.74%
Money market sub-funds
JS Pension Savings Fund       26-Jun-07   11.34%   6.91%   6.69%    4.10%    4.42%
UBL Retirement Savings Fund   19-May-10   8.52%    7.19%   7.27%    4.60%    4.55%
Atlas Pension Fund            28-Jun-07   8.15%    7.59%   7.93%    5.74%    5.53%
MCBAH Pakistan Pension Fund   29-Jun-07   8.20%    7.15%   7.17%    4.40%    4.30%
HBL Pension Fund              16-Dec-11   7.92%    7.13%   6.88%    4.16%    4.50%
NAFA Pension Fund              2-Jul-13    N/A     7.60%   7.80%    4.90%    4.40%
ABL Pension Fund              20-Aug-14    N/A     N/A     6.14%    4.15%    3.89%
NIT Pension Fund              19-Jun-15    N/A     N/A     6.64%    3.87%    4.17%
Alfalah GHP Pension Fund      02-Jan-17    N/A     N/A      N/A      N/A     3.85%
Commodity sub-funds
Atlas Pension Fund            16-Jun-13    N/A     5.98%   -4.60%   12.92%   -2.78%
UBL Retirement Savings Fund   1-Apr-14     N/A     3.33%   -2.83%   13.77%   -1.05%
NIT Pension Fund              19-Jun-15    N/A     N/A     0.20%    10.05%   -1.70%

For more information, contact:
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +92-51-9214005 or +92-51-9214009 (Ext. 378)
Fax: +92-51-9206459
Cell: +92-302-8552254
E-mail: shakil.chaudhary@secp.gov.pk
Website: www.secp.gov.pk

   

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