Offering Document NIT PENSION FUND (NIT-PF)

Transcription

1 PARTICIPANTS AND PROSPECTIVE PARTICIPANTS ARE ADVISED IN THEIR OWN INTEREST TO CAREFULLY READ THE CONTENTS OF THIS OFFERING DOCUMENT IN PARTICULAR THE RISK FACTORS MENTIONED IN CLAUSE 8.6 AND WARNINGS IN CLAUSE 15 BEFORE MAKING ANY INVESTMENT DECISION Offering Document NIT PENSION FUND (NIT-PF) A Voluntary Pension Fund Managed By: National Investment Trust Limited (The Pension Fund Manager) Registered under the Voluntary Pension System Rules, P a g e

2 Table of Content 1. INTRODUCTION TO NIT PENSION FUND (NIT PF) Salient Features of the Pension Fund REGULATORY APPROVALS AND CONSENT Registration of the Pension Fund Manager Authorization of the Pension Fund Appointment of the Trustee Registration of the Trust Deed Approval of the Offering Document FILING OF THE OFFERING DOCUMENT CONSTITUTION OF THE PENSION FUND Constitution of NIT Pension Fund (NIT PF) The Trust Deed MODIFICATION OF THE CONSTITUTIVE DOCUMENTS Seed Capital provided by the Core Participant Type / Feature of Units of the Sub-Funds OPERATORS AND PRINCIPALS The Pension Fund Manager Rating of the Pension Fund Manager Assets Under Management Board of Directors and Key Management of the Pension Fund Manager Board of Directors Role of the Fund Manager of NIT Pension Fund Responsibilities, Obligations and Restrictions of the Pension Fund Manager Responsibilities and Obligations of the Trustee Registrar of the Units of the Pension Fund Distributor/Investment Facilitator Auditor Legal advisor P a g e

3 5.12 Bankers CHARACTERISTICS OF THE PENSION FUND ELIGIBILITY STRUCTURE OF PENSION FUND APPLICATION PROCEDURES ALLOCATION/ ISSUE OF UNITS CONTRIBUTION PROCEDURES AND MINIMUM CONTRIBUTIONS Minimum Investment Amounts Options and Procedures in case of Cessation, Temporary or Permanent, of Contributions by the Participants Sub-Funds of NIT Pension Fund Allocation Scheme Allocation among the Sub-Funds Allocation Policy Individual Pension Account Frequency of Valuations and Dealings THE MODE OF ANNOUNCEMENT OF NET ASSET VALUE UNIT PRICING AND THE CIRCUMSTANCES UNDER WHICH IT CAN CHANGE Payment of Proceeds on Withdrawals and Transfers Withholding Tax DEALING, SUSPENSION, AND DEFERRAL OF DEALING TEMPORARY CHANGE IN THE METHOD OF DEALING OR SUSPENSION OF DEALING SUSPENSION OF FRESH ISSUE OF UNITS REFUSAL TO ACCEPT THE CONTRIBUTIONS SUSPENSION OF REDEMPTION OF UNITS / WITHDRAWAL OF FUNDS Queue system De-authorization and winding up of the Pension Fund P a g e

4 6.20 Features of Group Insurance in the Pension Fund Nomination of the Heir/ Survivor Withdrawal of Funds before Retirement Benefits on Disability before Retirement Benefits on Death before Retirement INSTRUCTIONS FROM PARTICIPANTS THE METHOD OF DETERMINING NET ASSETS OF PENSION FUND Retirement Age Benefits on Retirement FEES, CHARGES AND EXPENSES FRONT END FEE OUT OF THE CONTRIBUTIONS REMUNERATION OF THE PENSION FUND MANAGER REMUNERATION OF THE TRUSTEE OTHER FEES AND CHARGES PAYABLE OUT OF THE PROPERTY OF THE FUND Fees, Charges, Costs, etc. To be Charged to the Sub-Funds INVESTMENT POLICY, RESTRICTIONS, RISK DISCLOSURE AND DISCLAIMER Objective Investment Policy Investment Restrictions BORROWING RESTRICTIONS Participants Rights in terms of Investment Choice Risk Disclosure Disclaimer CHANGE OF THE PENSION FUND MANAGER / PENSION FUND SAFEGUARD OF MONEY DISTRIBUTION RESTRICTION POLICY TAXATION Tax Credit for Contributions to the Pension Fund Tax Exemptions P a g e

5 12.3 Withholding Tax Zakat REPORTS AND ACCOUNTS FUND ACCOUNTS ANNUAL ACCOUNTING PERIOD PERIODIC REPORTS TO BE SENT TO PARTICIPANTS PERIODIC REPORTS TO BE SENT TO COMMISSION SERVICE TO PARTICIPANTS Availability of Forms Register of Participants Statement of Accounts FINANCIAL INFORMATION Auditors certificate on Investment of Seed Capital WARNINGS COMPLAINTS Procedure for lodging a complaint with the Insurance Ombudsman Contact Details of Office of Insurance Ombudsman TRANSACTIONS WITH CONNECTED PERSONS ARBITRATION IN CASE OF DISPUTES BETWEEN THE PENSION FUND MANAGER AND THE TRUSTEE DISPUTES BETWEEN THE PARTICIPANTS AND THE PENSION FUND MANAGER GENERAL INFORMATION The Constitutive Documents of NIT Pension Fund are: Date of publication of this Offering Document Statement of Responsibility TERMINATION OF THE PENSION FUND TERMINATION AND LIQUIDATION OF THE TRUST GENERAL DEFINITIONS Registrar Functions means the functions with regard to: INTERPRETATION HEADINGS Annexure A Annexure B P a g e

6 Annexure C Annexure D Annexure E Annexure F Annexure G Annexure H Annexure I Annexure J Annexure K P a g e

7 1. INTRODUCTION TO NIT PENSION FUND (NIT PF) NIT Pension Fund is established in Pakistan as a Voluntary Pension Fund through a Trust Deed, dated May 14, 2015, entered in between National Investment Trust Limited in its capacity as the Pension Fund Manager and Central Depository Company of Pakistan Limited in its capacity as the Trustee and authorized under the Voluntary Pension System (VPS) Rules, The Pension Fund shall initially consist of four (4) Sub-Funds to be called i. NIT-PF Equity Sub-Fund (the Equity Sub-Fund ) ii. NIT-PF Debt Sub-Fund (the Debt Sub-Fund ) ii. NIT-PF Money Market Sub-Fund (the Money Market Sub-Fund ) and iii. NIT-PF Commodities Sub-Fund (the Commodities Sub-Fund ) After successfully managing the above mentioned Sub-Funds, the Pension Fund Manager may, with the approval of the Commission, launch other Sub-Funds through a Supplementary Trust Deed and a Supplementary Offering Document for investments in other asset classes, including securitized investment in real estate or in assets outside Pakistan (for avoidance of doubt, additional Sub-Funds may include combinations of new and existing classes of assets). Thereafter, any reference to the Sub-Funds in the Trust Deed or the Offering Document shall be construed to include any such new Sub- Fund. 1.1 Salient Features of the Pension Fund Term Sheet Fund Name Fund Structure Fund Objective Eligibility Minimum Contribution Contribution Frequency Contribution Mechanism Investment Mechanism NIT Pension Fund (NIT-PF) Unit Trust Scheme consisting of Sub-Funds under the VPS Rules To provide a secure source of savings and regular income after retirement to the Participants Every Pakistani national over the age of 18 years holding a valid National Tax Number or a CNIC or NICOP The minimum amount of Contribution to open an account is Rs. 1,000/- and the minimum amount of contribution to an existing account is Rs.500/- per transaction. There is no maximum limit of contribution. However, Tax Credit will be available to the extent specified in the Income Tax Ordinance, Annual, semi-annual, quarterly or monthly or as desired by the participant. Cheque, bank draft, pay order (crossed account payee only), titled CDC Trustee NIT Pension Fund payable to the Trustee on any Dealing Day. Any other electronic form of Transfer as may be acceptable to the Pension Fund Manager and the Trustee. Contribution in the form of Cash or any bearer instruments shall not be made and accepted. *The Pens ion Fund Manager may make arrangements with Banks for online transfers from time to time. Such Arrangements (if any) will be communicated to Participants through the company s website. Insurance premium (for optional insurance coverage) shall be 7 P a g e

8 Allocation of Contributions & Allocation Schemes deducted unless waived from Contributions made by the Participant, followed by deduction of applicable Front-end Fee. The remaining Contribution amount is then credited to the Participant s Individual Pension Account and is invested in the underlying Sub-Funds of the NIT Pension Fund as per the Allocation Scheme selected by the Participant. Contributions shall be allocated among the Units of Sub-Funds at Net Asset Value, as per the selected Allocation Scheme, from amongst the following Five (5) Schemes being offered by the Pension Fund Manager. Allocation Scheme High Volatility Medium Volatility Low Volatility Lower Volatility Customized Allocation Scheme Equity Sub- Fund Min 40% Min 20% Min 05% Nil 0-100% Debt Sub- Fund Min 20% Min 40% Min 60% Min 40% 0-100% Money Market Sub- Fund Nil Min 10% Min 15% Min 40% Commodities Sub-Fund Max 25% Max 15% Max 05% Nil 0-100% 0-25% Investment Strategy Reallocation Policy Front-end Fee Management Fee Taxation Benefits / Withdrawal on Retirement The Pension Fund Manager shall design investment strategy to optimize returns on investments within the parameters of Investment Policy specified by the Commission. The Pension Fund Manager shall also offer different Allocation Schemes to Participants to choose from, allowing them to adopt an investment strategy, according to their risk / return requirements Units held in the Individual Pension Account shall be reallocated by the Pension Fund Manager between the Sub- Funds at least once a year to ensure that the allocation of Units of all Participants is in line with the Allocation Scheme selected by them. Maximum of 3 % on all Contributions, unless exempt under this Offering Document 1.5 % p.a. on average Net Assets of each Sub-Fund. Tax Credit will be available to Participants on contributions during any Tax Year subject to the limits prescribed under the Income Tax Ordinance, 2001 (XLIX OF 2001) All Units of each Sub-Fund held by a Participant in his Individual Pension Account shall be redeemed at the Net Asset Value notified at close of the day of retirement or, if that day is not a Business Day, the following Business Day. The Participant will then have the following options, namely: (a) to en-cash up to fifty percent (50%) or any percent as admissible under the Income Tax Ordinance, 2001, of the amount in his Individual Pension Account, without any Tax deductions. Tax will be deducted at a rate of the average tax percentage of the Participant for the previous 3 years, if the 8 P a g e

9 Early Withdrawal / Withdrawal before Retirement Transfers to and from Other Pension Funds Transparency Distribution Restriction Participant withdraws any amount over the limit admissible under the Income Tax Ordinance, 2001; and (b) either to use the remaining amount to purchase an annuity from a Life Insurance Company of his/her choice; or (c) enter into an agreement with the Pension Fund Manager to transfer his balance to an Approved Income Payment Plan offered by the Pension Fund Manager or another Pension Fund Manager and withdraw from it monthly installments for up to 15 years following the date of retirement, according to the Approved Income Payment Plan. Participants at any time before retirement are entitled to redeem the whole or any part of the Units held to their credit in their Individual Pension Account. Tax may be applicable in accordance with the requirements of the Income Tax Ordinance, 2001 and, if applicable, will be deducted by the Pension Fund Manager from the amount withdrawn. Participants shall be entitled to transfer part or whole of their Individual Pension Accounts from this Pension Fund to another once a Financial year with 21 days notice. There shall be no Tax or charges on such transfers. Similarly Participants are allowed to transfer-in their funds from other Pension Funds and approved Occupational Savings Schemes or approved superannuation funds to this Pension Fund without having to pay any Front End Fee to the Pension Fund Manager. Daily calculation and announcement of NAV of each Sub fund Any income earned shall be retained and accumulated in the respective sub-funds and no distribution / Dividend shall be made from the Pension Fund. 2. REGULATORY APPROVALS AND CONSENT 2.1 Registration of the Pension Fund Manager National Investment Trust Limited, the Pension Fund Manager of NIT Pension Fund, having its registered office 6 th Floor, National Bank of Pakistan Building, I.I. Chundrigar Road, Karachi, Pakistan, is a Non-banking Finance Company and has been licensed by the Securities and Exchange Commission of Pakistan under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 to, inter-alia, carryout Asset Management Services under License No. NBFC-15/AMC/01/2003 dated May 14, 2003 as renewed on May 16, 2013 vide License No. AMCW/12/NITL/AMC/04/2013 and has been registered as a pension fund manager under sub-rule (2) of Rule 5 of the Voluntary Pension System Rules, 2005 by the Securities and Exchange Commission of Pakistan through its Certificate of Registration as Pension Fund Manager No. 09/SEC/PRDD/VPS/NITL dated January 30, 2015 appended hereto as Annexure A & A Authorization of the Pension Fund The Pension Fund Manager has been authorized by the Commission through its letter No. SCD/PRDD/VPS/NITL/52/2015 dated June 10, 2015 appended hereto as Annexure B, to constitute the Pension Fund under the name and title of NIT Pension Fund (hereinafter referred to as the NIT Pension Fund, Pension Fund or NIT PF, or Trust ) and 9 P a g e

10 authorized the formation of a scheme, under the name, NIT Pension Fund, under rule (9) of the Voluntary Pension System Rules, Appointment of the Trustee The Central Depository Company of Pakistan Limited, having its registered office at CDC House, 99-B, Block B, S.M.C.H.S., Main Shahrah-e-Faisal, Karachi, Pakistan, has been approved by the Commission to act as the trustee of NIT Pension Fund through its letter No. SCD/PRDD/VPS/NITL/36/2015 dated April 24, 2015 appended hereto as Annexure C. 2.4 Registration of the Trust Deed The Pension Fund Manager has been authorized by the Commission to execute and to register the Trust Deed. 2.5 Approval of the Offering Document This Offering Document sets out the arrangements covering the basic structure of NIT Pension Fund. The provisions of the Trust Deed and the Voluntary Pension System Rules, 2005 hereafter govern this Offering Document and Incase of any ambiguity in the constitutive documents of NIT Pension Fund, the VPS Rules 2005 shall prevail. It sets forth information about the Fund that a prospective Participant should know before contributing to the Pension Fund. Participants should read this Offering Document carefully prior to contributing to / participating in the Pension Fund, and retain the Offering Document for future reference. The Commission has, through its letter No. dated approved this Offering Document as per the guidelines for Authorization of Pension Fund under sub Rule (1) of Rule (9) of the Rules. However, it must be distinctly understood that such an approval or authorization by the Commission neither implies official recommendation by the Commission to participate in /contribute to the Pension Fund nor does the Commission take any responsibility for the financial soundness of the Pension Fund and its Sub-Funds or for the correctness of any statements made or opinions expressed in this Offering Document. If you have any doubt about the contents of this Offering Document, you should seek independent professional advice, from your legal, financial or tax advisor. This Offering Document contains necessary information for the public to make an informed decision to participate in the Pension Fund described herein. The Participants are advised, in their own interest, to carefully read the contents of the Offering Document, in particular, the risks mentioned in Clause 8.5 and Warnings in Clause 15, before making any participation/contribution decision. Participants may note that this Offering Document remains effective until a material change occurs and they should retain this Offering Document for future reference. Material changes shall be filed with the Commission and circulated to all Participants or may be notified by advertisements in the newspapers, or on the Pension Fund Manager s website, subject to the applicable provisions of the Trust Deed and the Rules. 10 P a g e

11 Participants must recognize that all investments involve varying levels of risk. The portfolios of the Sub- Funds of the Pension Fund consist of market-based investments and are subject to market fluctuations and risks inherent in all such investments. It should be noted that the value of Units of the Sub-Funds can fall as well as rise, in response to market conditions. It should also be noted that under certain circumstances the realization of Units may be restricted. 3. FILING OF THE OFFERING DOCUMENT The Pension Fund Manager has filed a copy of this Offering Document with the Commission, along with copies of the documents mentioned below: i. Trust Deed, dated May 14, 2015, executed between Pension Fund Manager and the Trustee constituting the Pension Fund; ii. Letter no. KA-ZQ-1061 dated June 15, 2015 from the Auditors confirming the subscription for the Units of Pension Fund by the core investors. iii. Consents of the auditors and trustee to their respective appointments and being named and described as such in this Offering Document. iv. Letter No. 09/SEC/PRDD/VPS/NITL dated January 30, 2015 from the Commission, registering the Pension Fund Manager as a pension fund manager under the Rules, v. Letter No. SCD/PRDD/VPS/NITL/36/2015 dated April 24, 2015 from the Commission to the Pension Fund Manager, approving the Trustee to act as the trustee of the Pension Fund. vi. Letter No. SCD/PRDD/VPS/NITL/52/2015 dated June 10, 2015 from the Commission, authorizing the Pension Fund. vii. Letter No. dated from the Commission, approving this Offering Document. 4. CONSTITUTION OF THE PENSION FUND 4.1 Constitution of NIT Pension Fund (NIT PF) The Pension Fund has been established as a trust under the Trusts Act, 1882 (II of 1882) through a trust deed dated March 19, 2014 executed between National Investment Trust Limited (the Pension Fund Manager), as party of the one part, and The Central Depository Company Of Pakistan (the Trustee), as party of the other part. 4.2 The Trust Deed The Trust Deed shall be subject to and governed by the Voluntary Pension System Rules, 2005 (Rules) and all other applicable laws and regulations and shall be deemed for all purposes, whatsoever, to incorporate the provisions required to be contained in a 11 P a g e

12 trust deed by the Rules as a part and parcel hereof, and in the event of any conflict between the Trust Deed and the Rules, the latter shall supersede and prevail over the provisions contained in the Deed unless specific exemption has been granted by the Commission. In the event of any conflict between the Trust Deed and the Offering Document, the Trust Deed shall supersede and prevail over the provisions contained in this Offering Document. The terms and conditions in the Trust Deed and any supplemental deed shall be binding on each Participant as if he has been a party to it MODIFICATION OF THE CONSTITUTIVE DOCUMENTS a) The Trustee and the Pension Fund Manager acting together shall be entitled by a Supplementary Trust Deed to modify, alter or add to the provisions of the Offering Document in such manner and to such extent as they may consider expedient for any purpose, subject to 30 days prior notice to the Participants and the subsequent approval of the Commission, if so required. Provided that, the Trustee and the Pension Fund Manager shall certify in writing that, in their opinion such modification, alteration or addition is required pursuant to any amendment in the Rules or to ensure compliance with any fiscal or statutory requirement or to enable the provisions of the Offering Document to be more efficiently, conveniently or economically managed or otherwise for the benefit of the Participant(s) and that it does not prejudice the interests of the Participant(s) or any of them or operate to release the Trustee or the Pension Fund Manager from any responsibility to the Participant(s). b) Where the Offering Document has been altered or supplemented, the Pension Fund Manager shall again notify the Participants and the participating employers immediately by a notice published in a newspaper having wide circulation and by placing the same on its website. c) The Pension Fund Manager may, from time to time, with the consent of the Trustee frame such operational procedures for conducting the business of the Trust or in respect of any other matter incidental thereto; provided such operational procedures are not inconsistent with the provisions of the Rules, the Deed or the Offering Document. d) If the Commission grants any relaxations or exemptions of Rules for the Pension Fund, these shall be deemed to be part of this Deed without the need of altering it. However, in cases of significant changes, the Commission may require issuance of a Supplementary Trust Deed from time to time. e) Where a change or amendment in the Rules or the Income Tax Ordinance, 2001, or any other applicable law or regulation, renders any of the clauses contained in this Offering Document ineffective or in need of amendment, such clause will automatically stand replaced by the new change or amendment and no modification in this Offering Document or any Supplemental Offering Document shall be required. However, if the Pension Fund Manager is amending the Offering Document or any Supplementary Offering Document for any reason, the Pension Fund Manager may also amend such clauses that have been automatically overwritten and amended due to a change / amendment in the Rules and / or the Income Tax Ordinance, P a g e

13 f) If at any time, any clause of Offering Document is and / or becomes in whole or in part illegal, invalid or unenforceable under the laws of any applicable jurisdiction, neither the legality, validity and enforceability of the remaining clauses of this Offering Document hereof, nor the legality, validity or enforceability of such clause under the law of any other jurisdiction shall in any way be affected or impaired thereby. 4.3 Seed Capital provided by the Core Participant The seed capital of the Pension Fund shall be provided by invested or arranged by the Pension Fund Manager. Seed Capital Units have been issued to the Seed Investor as under: Name of Sub-Fund No of Units (Seed Capital Initial Par Value of each Unit (PKR) Amount (PKR Millions) NIT PF Equity Sub-Fund 7,500, NIT PF Debt Sub-Fund 7,500, NIT PF Money Market Sub-Fund NIT PF Commodities Sub-Fund 7,500, ,500, The Seed Capital Units subscribed by the Seed Investor have been issued at a par value of Pakistan Rupees ten per Unit (Rs. 10/ Unit) and shall not be redeemable for a period of three (3) years from the date of issue or as maybe determined by the Commission. A mention of such restriction and its termination date shall be entered into the Register and shall be noted on any Accounts Statement in respect of such units. 4.4 Type / Feature of Units of the Sub-Funds The Pension Fund shall initially consist of four Sub-Funds to be called: a. NIT PF Equity Sub-Fund (the Equity sub-fund ) b. NIT PF Debt Sub-Fund (the Debt sub-fund ) c. NIT PF Money Market Sub-Fund (the Money Market sub-fund ) d. NIT PF Commodities Sub-Fund (the Commodities sub-fund ) a. All Units and fractions thereof represent an undivided share in the respective Sub-Fund and rank pari passu as to their rights in the Net Assets and earnings of that Sub-Fund. Each Participant has a beneficial interest in the Pension Fund proportionate to the Units held by such Participant in the respective Sub-Fund in his Individual Pension Account. The liability of the Participant shall be limited to the amount paid against the number of Units or in certain circumstances cash, as may be allowed by the Rules, held by each Participant in his Individual Pension Account. b. All Units shall be issued in a non-certificated form, except the Seed Capital Units that may 13 P a g e

14 be issued in a certificated form, if required by the Seed Investor. c. The Units in the Sub-Funds issued to the Participants would be non-transferable to another Participant/person. They shall only be redeemable in case of retirement (including retirement in the instance of disability), premature encashment/redemption, death of the Participant, and change of pension fund manager, change of Allocation Schemes and/or rebalancing of the portfolio/ Allocation Schemes. d. The initial Par value of the Units of each of the Sub-Funds is Pakistan Rupees ten (Rs. 10), which is applicable to the first offering. The amount received from the Seed Investors has been allocated to each Sub-Fund. From the Launch Date, the Pension Fund Manager shall open participation in the NIT Pension Fund to the eligible Participants on a continuous basis, through offer of Units of Sub-Funds issued at NAV calculated in the manner prescribed under the Rules or as may be specified by the Commission from time to time, after deduction of Front-end Fee from the Contribution amounts received. e. Units of the relevant Sub-Fund shall be issued to each Participant as per the selected Allocation Scheme, identified in clause 6.8, for the contributions among the Sub-Funds. 5. OPERATORS AND PRINCIPALS 5.1 The Pension Fund Manager National Investment Trust Limited is the Pension Fund Manager of NIT Pension Fund (NIT-PF), having its registered office as mentioned below: Registered Office: 6 th Floor, National Bank of Pakistan Building, I.I. Chundrigar Road, Karachi Any change in the registered office address of the Pension Fund Manager shall be notified by the Pension Fund Manager to the Commission and the Trustee from time to time. NITL s main area of business is Investment Management; more specifically floating and managing mutual funds. NITL s vision is to be recognized as the beacon of positive change in the Capital Markets. Leading by example, with an aim to provide the necessary opportunity to all the stakeholders and to contribute towards healthy growth of the industry. 5.2 Rating of the Pension Fund Manager PACRA has assigned the asset manager rating 'AM2' to National Investment Trust Limited 14 P a g e

15 5.3 Assets Under Management Details and note on the performance of the Collective Investment Schemes under the management of the Asset Management Company: As of May 19, 2015 National Investment Trust Limited was managing following six funds with total funds under management of Rs billion. 1. National Investment (Unit)Trust NI(U)T 2. NIT State Enterprise Fund (NIT SEF) 3. NIT Equity Market Opportunity Fund (NIT EMOF) 4. NIT Government Bond Fund (NIT GBF) 5. NIT Income Fund (NIT IF) 6. NIT Islamic Equity Fund (NIT IEF) NITL has been assigned a rating of AM2 by PACRA. The rating reflects the company's high investment management industry standards and benchmarks with noted strengths in several of the rating factors. National Investment (Unit) Trust - NI(U)T National Investment (Unit) Trust is the oldest & the largest Mutual Fund of the country with Rs billion assets under management as on June 30, National Investment (Unit) Trust was established under a Trust Deed executed between National Investment Trust Limited (NITL) as the Management Company and National Bank of Pakistan (NBP) as the Trustee. The Trust Deed was executed on 12 th November 1962, and was amended vide Supplemental Trust Deed dated 26 th June 1968, 7 th June 1981, 27 th November 1998, 12 th November 2002, 31 st December 2003, 18 th January 2007, 1 st April, 2014 and 3 rd September, The functions of the Fund are governed by the Trust Deed and National Investment (Unit) Trust Ordinance, Presently CDC is representing as Trustee of NIUT Fund. Pakistan Credit Rating Agency Limited (PACRA) has assigned a "4-star" rating (short term) and 3 star (long term) to the Fund based on the performance during thirty six months period ended June 30, Fund Information NI(U)T: Launch date 12th November 1962 Nature Category Fund Size as on May 19, 2015 Open End Equity Scheme Rs Billion NAV/unit as on May 19, 2015 Rs Par Value Rs. 10 Benchmark KSE 100 Index 5 Year Performance of Fund FY 10 FY 11 FY 12 FY 13 FY 14 NI(U)T Return (%) 17.92% 24.00% 7.57% 58.42% 56.98% 15 P a g e

16 KSE 100 Index Return (%) Dividend Per Unit (Rs.) Net Assets at year end (Rs. in billion) 35.74% 28.54% 10.45% 52.20% 41.16% NAV at year End NIT STATE ENTERPRISE FUND NIT-State Enterprise Fund was established under a Trust Deed executed between National Investment Trust Limited (NITL) as the Management Company and Central Depository Company of Pakistan Ltd. (CDC) as Trustee. The Trust Deed was executed on 24 th October In order to ward off the systemic risk created in the equity market by forced sales and margin calls, the Government of Pakistan decided to launch the State Enterprises Fund under the management of NIT for the specific purpose of buying stocks of eight companies in which the GOP has a sizeable shareholding and thereby providing necessary liquidity in the market. NIT State Enterprise Fund launched its operations on 13 th January Fund Information NIT-State Enterprise Fund: Launch date Nature Category Fund Size as on May 19, 2015 NAV/unit as on May 19, 2015 Par Value Benchmark 13 th January 2009 Open End Equity Scheme Rs Billion Rs Rs. 50 KSE 100 Index 5 Year Performance of the Fund FY 10* FY 11 FY 12 FY 13 FY 14 NI-SEF Return (%) 43.40% 14.75% 6.07% 40.90% 27.17% KSE 100 Return (%) 35.74% 28.54% 10.45% 52.20% 41.16% Bonus 38.24% 23.00% 9.30% 12.92% 240% Net Assets at year end (Rs. in billion) P a g e

17 NAV at year End *Since January 13, 2009 FY14 Return since inception NIT-SEF (%) since Jan. 13, % KSE 100 (%) since Jan. 13, % Dividend Per Unit (Rs.) Bonus NIT EQUITY MARKET OPPORTUNITY FUND (NIT EMOF) NIT started making investments from this Fund on 25th July NIT EMOF was constituted under the Trust Deed executed between National Investment Trust Limited (NITL) being the management company and Central Depository Company (CDC) of Pakistan being Trustee.. Fund Information (NIT EMOF): Launch date Nature Category Fund Size as on May 19, 2015 NAV/unit as on May 19, 2015 Par Value Benchmark 25th July 2008 Open End Equity Scheme Rs Billion Rs Rs. 100 KSE 100 Index 5 Year Performance of Fund FY 10* FY 11 FY 12 FY 13 FY 14 NIT-EMOF (%) 1.33% 23.69% 18.04% 41.85% 32.09% KSE 100 (%) 7.38% 28.54% 10.45% 52.20% 41.16% Bonus (Rs/unit) Net Assets at year end (Rs. in billions) P a g e

18 NAV at year End *From 14 th Sept to 30 Th June 2010 FY14 Return since inception NIT-EMOF (%) since July 25, % KSE 100 (%) since July 25, % Dividend Per Unit (Rs.) Bonus NIT GOVERNMENT BOND FUND NITL, in its efforts to provide a wide range of services to cater the needs of different classes of investors, has launched NIT Government Bond Fund. It is an open end Income Fund investing primarily in the short term as well as long term Government Securities with maximum weighted average time to maturity not exceeding 7.5 years. NIT GBF is a low risk income fund with major investment (70% or above) in Government Securities while at least 25% shall be invested in cash and near cash instruments which includes cash in bank account (excluding TDRs) and treasury bills not exceeding 90 days maturity. As on August 29, 2014, NIT GBF had funds under management of around Rs billion and had approximately 1,204 unit holders. Fund Information (NIT GBF): Launch date 18 November 2009 Nature Category Fund Size as on May 19, 2015 Open End Income Fund Rs Billion NAV/ unit as on May 19, 2015 Rs Par Value Rs. 10 The performance of the scheme will be compared against a benchmark based on 70% average of weighted average yield of 6 months T-Bills auctions held Benchmark during the period and 30% average most recently published 1 month deposit rates of A and above rated schedule banks. 5 Year Performance of NIT Government Bond Fund *FY 10 FY 11 FY 12 FY 13 FY P a g e

19 NIT GBF Return (%) Bench Mark Return (%) Distribution Per Unit (Rs.) Net Assets (Rs. in Millions) ,740 3,056 3,145 4,796 4,198 NAV at year End * Since November 18, 2009 NIT INCOME FUND (NIT IF) NITL, in its efforts to provide a wide range of services to cater to the needs of different classes of investors, had launched the "NIT Income Fund" in the Fixed Income Category. It is also an open end Income Fund. As on August 29, 2014, NIT IF had funds under management of around Rs billion and had approximately 1,410 unit holders. Fund Information (NIT IF): Launch date 19 February 2010 Nature Category Fund Size as on May 19, 2015 Open End Income Fund Rs Billion NAV/unit as on May 19, 2015 Rs Par Value Rs. 10 Benchmark 6 Month Ask KIBOR 5 Year Performance of NIT Income Fund *FY 10 FY 11 FY 12 FY 13 FY 14 NIT IF Return (%) Bench Mark Return (%) Distribution Per Unit (Rs.) Net Assets (Rs. in Millions) ,296 2,014 2,622 3,680 3,316 NAV at year End P a g e

20 * Since February 19, 2010 NIT ISLAMIC EQUITY FUND - (NIT IEF) NIT-IEF IS a Shariah compliant open-ended equity fund which will cater to the needs of investors who prefer Shariah compliant investment avenues. The fund aims to achieve this under the guidance of a Shariah Advisor which has already been appointed in order to guide the entire process to ensure compliance with Shariah at every stage starting with formation. KMI-30 Index would be the benchmark. Fund Information (NIT IEF): Launch date 18 May 2015 Nature Category Fund Size as on May 19, 2015 Open End Shariah Compliant Equity Scheme Rs Billion NAV/unit as on May 19, 2015 Rs Par Value Rs. 10 Benchmark KMI-30 Index 5.4 Board of Directors and Key Management of the Pension Fund Manager Board of Directors The Board of Directors of National Investment Trust Limited Consists of: Name, Occupation & Address Position Other Directorships Mr. Shahid Ghaffar Banker National Investment Trust Limited 6 th Floor, NBP Building, I.I. Chundrigar Road, Karachi. Syed Iqbal Ashraf Banker National Bank of Pakistan 2 nd Floor, NBP Building, I.I. Chundrigar Road, Karachi. Chairman & Managing Director-NITL Nominee Director of NBP 1. Mari Petroleum Co. Ltd. 2. Bank Al-Habib Limited 3. Fauji Fertilizer Co. Ltd. 4. Central Depository Company of Pakistan 1. The Hub Power Company Limited 2. Fauji Oil Terminal Distribution Co. limited 3. Pakistan Banks Association 4. Institute of Bankers 20 P a g e

21 Pakistan 5. Friends of IBA Trust 6. Karachi Council on Foreign Relations Mr. Shahzad Farooq Lodhi Corporate Professional Nominee Director of PRIC Pakistan Reinsurance Company Ltd. PRC Tower, 14 th Floor, 32 A, Lalazar, M.T Khan Road, Karachi Mr. Jamal Nasim Banker Industrial Development Bank Ltd. Head Office, State Life Building No. 2, Off: I. I. Chundrigar Road, Karachi. Mr. Muhtashim Ahmad Ashai Banker MCB Bank Limited MCB Tower, 23 rd Floor, I.I. Chundrigar Road, Karachi. Rana Assad Amin Bureaucrat Room No. 205, Block No. Q, Pak Secretariat, Ministry of Finance, Government of Pakistan, Islamabad. Mian Nusrat-ud-Din Businessman Nominee Director of IDBP Nominee Director of MCB Nominee Director of Ministry of Finance, Government of Pakistan Nominee Director of Tajammal 1. Ellcot Spinning Mills Limited 2. Fazal Cloth Mills Limited 3. Mitchell s Fruit Farms Limited 4. Security Papers Limited 5. National Bank Modaraba Management Co. Limited 6. KSB Pumps Company Limited 7. Pioneer Cement 1. MCB Financial Services Limited 2. First Woman Bank Limited 1. Pakistan National Shipping Company Limited 2. National Bank of Pakistan 1. Chenab Textile Mills Limited 2. Polyfine Export 21 P a g e

22 Tajammal Foundation 23-E/2, Gulberg-III, Lahore. Mr. Yameen Kerai Banker 7 th Floor, PNSC Building, M.T Khan Road, Karachi. Mr. Aman Aziz Siddiqui Banker Habib Bank Plaza, 21 st Floor, I.I Chundrigar Road, Karachi Mr. Iqbal Adamjee Businessman 3 rd Floor, Adamjee House, I.I Chundrigar Road, Karachi Mr. Muhammad Hanif Akhai Banker United Bank Limited, Head Office, 8 th Floor, I.I Chundrigar Road, Karachi. Foundation Nominee Director of NIB Bank Nominee Director of HBL Nominee Director of Adamjee Foundation Nominee Director of UBL Corporation 3. Rabbana Chemicals 4. Member Lahore Chamber of Commerce 5. Member BoGTajammal Foundation 1. Financial and Management Services (Pvt.) Limited 2. PICIC Insurance Limited 1. Mainetti Pakistan (Pvt.) Limited 2. Trustee Adamjee Foundation 3. Trustee Child Life Foundation 1. UBL Insurance Limited 2. UBL UK Brief Profiles of the Directors are as follows: Mr. Shahid Ghaffar, Chairman & Managing Director NITL Mr. Shahid Ghaffar has assumed the charge as Managing Director, National Investment Trust Limited (NITL) with effect from May He possesses vast experience of working at top positions in the financial sector. Prior to joining NIT, he was working as Head of Investor Relations and Corporate Representation as well as member of Management Forum at Habib Bank Limited (HBL). Prior to that he had also served as Chief Executive Officer of HBL Asset Management Limited for over six years ( ) and was instrumental in the establishment and growth of the Company. 22 P a g e

23 Mr. Ghaffar has held key positions in the areas of asset management, capital market regulation and governance. At Securities and Exchange Commission of Pakistan (SECP) he served as Executive Director/Commissioner from 2000 to 2005 and played a vital role towards implementation of wide ranging reforms in the Capital Market and capacity building of Securities Market Division in Securities and Exchange Commission of Pakistan (SECP). While working as Managing Director/CEO Karachi Stock Exchange during his two years tenure ( ) he introduced effective risk management measures and was also instrumental in the automation of trading, enhancing capacity building and professionalism at the Stock Exchange. During the period , Mr. Shahid Ghaffar had served National Investment Trust Limited (NITL) (one of the biggest open- ended funds in the country) in different capacities in the Asset Management Division and at various stages was responsible for managing equity market portfolio, debt/fixed income portfolio and trading desk. He was also involved in the appraisal and monitoring of projects. In 1996, Mr. Ghaffar was entrusted responsibility of Asset Management Division. He actively participated in the reconstruction of NIT during the crisis period i.e Mr. Ghaffar holds Master Degree in Business Administration from Gomal University D.I.Khan, Khyber Pakhtunkhwa, Pakistan. He has attended several courses on Securities Regulations and Securities Markets Development and portfolio management including the prestigious course conducted by Securities and Exchange Commission, in Washington, DC. (United States). Syed Ahmed Iqbal Ashraf, Nominee Director National Bank of Pakistan Syed Ahmed Iqbal Ashraf has rich experience of over 34 years in domestic and international banking. Mr. Ashraf is a Fellow of Association of Chartered Certified Accountants (FACCA) from UK; from where he not only acquired his education but also started his career. His work experience spans three continents and he worked in the UK, USA and UAE for 19 years before he decided to return to Pakistan. Prior to becoming the President of NBP, he was MD/CEO of PAIR Investment Company Limited. Mr. Ashraf has also enjoyed commanding positions in NBP; he was in-charge of International Operations and managed and revamped Corporate & Investment Banking Group. He played a pivotal role in the establishment of a network of branches in the UK and USA. Another high point in his career is the establishment of Investment Banking Group from scratch for Habib Bank Limited. He successfully established the largest DFI, a JV with China s largest Policy Bank in Pakistan. During his tenure as the Deputy Managing Director & COO Pak China Investment Company Ltd. he successfully appraised multiple projects. He restructured, reformed and repositioned The Bank of Khyber as the Managing Director/CEO. He has also served as Country Head Investment Banking & Head of Financial Institutions for Societe Generale (SG) The French International Bank from 1996 to Amongst his achievements at SG was the appointment as the Financial Advisor to Privatization Commission of Pakistan for the successful privatization of United Bank Limited. During his tenor with SG, he also successfully arranged numerous syndicated facilities as the Sole Arranger. He also helped the SG consortium to be appointed as Financial Advisor for privatization of PESCO, by the Privatization Commission. Mr. Jamal Nasim. Nominee Director Industrial Development Bank Limited Mr. Jamal Nasim, Managing Director, Industrial Development Bank of Pakistan, has more than 33 years of professional experience with NDFC and IDBP, which includes Commercial Banking, Project Management, Operations, Treasury, Risk Management, 23 P a g e

24 Internal Audit and Compliance etc. He also has a substantial experience of serving on the Boards of Directors of different companies in Textile, Sugar and Food sectors. He has also held the position of Executive Director, Equity Participation Fund. He holds a Masters degree, in Business Administration, from Asian Institute of Management, Manila Philippines. Mr. Muhtashim Ahmad Ashai, Nominee Director MCB Bank Limited Mr. Muhtashim Ashai has fifteen years of professional experience in banking sector. At present he holds the position of Senior Executive Vice President and Group Head of Wholesale Banking Group at MCB Limited. He graduated with a BS degree from UET and completed his MBA from LUMS, followed by the International Management Program at MC Gill University in Montreal. For the last ten years, he has been working with ABN AMRO Bank in various roles in Pakistan, Singapore, Japan and China. Rana Assad Amin, Nominee Director Ministry of Finance, Government of Pakistan Rana Assad Amin is a civil servant working with the Ministry of Finance, Pakistan. He has 35 years of experience in financial management, auditing and accounting at his credit. He has served as Special Secretary Finance and now appointed as Adviser to the Ministry of Finance, Pakistan. He has obtained an MBA from Bradford University UK and a Masters in International Project Management in Sweden. He has substantially contributed to the restructuring of some of the Public Sector Enterprises (PSEs) before their privatization. At the policy level he has actively pursued reform process including Medium-Term Budgetary Framework, Corporate Governance of financial and non-financial institutions, Expenditure management, Anti-money laundering regime etc. He has been Director on the Boards of a number of PSEs, DFI and Banks. He has been actively involved in preparing three consecutive Pakistan National Budgets.. Mr. Muhammad Hanif Akhai Nominee Director United Bank Limited Mr. Hanif Akhai brings with him 36 years of enriching experience in the field of banking and finance with core emphasis on Treasury & Balance Sheet Management. He has worked with Societe Generale Bank in Pakistan in a regional role overlooking the treasury functions in Sri Lanka and Bangladesh along with Pakistan. He has also served in the capacity of a Regulator at State Bank of Pakistan where he was instrumental in managing the financial market along with introducing reforms for market stability and development. He has held the position of Global Treasurer at Habib Bank and Chief Executive at Akhai Capital Management prior to joining United Bank Limited as Global Treasurer. Mr. Iqbal Adamjee, Nominee Director Adamjee Foundation Mr. Iqbal Adamjee is representing Adamjee Foundation on the Board of NIT. Mr. Adamjee has acquired graduation degree from Stanford University, USA. He has been associated with various business concerns of the Adamjee Family which includes Adamjee Insurance, Adamjee Jute Mills and Automative Batteries. Mr. Adamjee is at present Director Mainetti (Pvt) Limited and serving as Trustee of Adamjee Foundation & Trustee of Child Life Foundation. From the aforementioned platforms he has immensely contributed towards betterment of education and health sectors Mr. Aman Aziz Siddiqui, Nominee Director Habib Bank Limited Mr. Aman Aziz Siddiqui is Head of Strategy, Investments, HR and Learning Development, Marketing and Brand Management of Habib Bank Limited. He has over 30 years of Banking experience in leadership Positions with Bank of America, United 24 P a g e

25 Bank Limited and Habib Bank Limited in Pakistan, GCC, UK and Italy. He holds extensive experience in Debt Capital Raising, Syndication, Structured Trade Finance, Privatization, and other Advisory, Mergers & Acquisitions and Securitization. Mr. Siddiqui by qualification is Masters in Business Administration from Rutgers Graduate School of Management, USA. Mr. Mian Nusrat-ud-Din, Nominee Director Tajammal Foundation Mian Nusrat-ud-Din is representing Tajammal Foundation on the Board of NITL. He is the Chairman, Chenab Group, which is involved in integrated manufacturing and export of Textile goods as well as in Agricultural products. Mian Nusrat-ud- Din is a graduate in Chemical Engineering and also holds a Master s degree in Chemical Technology. He has over 40 years management experience of Textile Spinning Mill and Chemical Plants. Also, he has vast experience as a member executive committee of Lahore Chamber of Commerce & Industry and various Trusts. Mr. Yameen Kerai, Nominee Director NIB Bank Limited Mr. Yameen Kerai has over 32 years experience in public accounting and finance related roles in the insurance and banking industry. After graduating from London School of Economics, he qualified as a Chartered Accountant with Robson Rhodes, London. After pursuing public accounting in Jeddah with Touche Ross, one of the global big eight firms, he joined a leading Canadian insurer, Canada Life, in Toronto, where he performed internal audit, finance and tax roles. He then joined ABN AMRO, a large multinational Dutch bank as CFO of their Pakistan operations in Karachi, while also looking after IT, admin and real estate matters. He was then given a regional role in ABN AMRO, Singapore as CFO, Asia Pacific, overseeing finance functions of 13 countries. In June 2005 he joined NIB Bank as CFO. Mr. Shahzad Farooq Lodhi, Nominee Director Pakistan Reinsurance Company Limited Mr. Shahzad Farooq Lodhi is Company Secretary and Executive Director-HR, Pakistan Reinsurance Company Limited having 30 years of diversified experience in Sales, Marketing Human Resource & Administration and Corporate Affairs. He has served at various important positions within Pakistan Reinsurance Company Limited. Mr. Lodhi by qualification is a Law Graduate and is also Masters in Business Administration in HR and Marketing. He also holds Fellowship of the Institute of Marketing Management and Taxation Management. Profile of the Management: Mr. Shahid Ghaffar, Chairman & Managing Director Mr. Manzoor Ahmed, Chief Operating Officer Syed Zubair Ahmad, Company Secretary, Controller of Branches & Head of Corporate Governance, Mr. Shahid Anwar, Head of Personnel & MD Secretariat Mr. Aamir Amin, Head of Finance Mr. Asim Rafiq, Head of Internal Audit Mr. S. Iqbal Ahmed, Head of Administration Mr. Abdul Rashid, Acting Head of Legal Mr. Imran Rafiq, Head of Research Mr. Raza Abbas Jaffery, Head of Trading Mr. Shoaib A. Khan, SVP/Fund Manager Income Funds Mr. Wasim Akram, Fund Manager 25 P a g e

26 Mr. Shahid Ghaffar Mr. Shahid Ghaffar has assumed the charge as Managing Director, National Investment Trust Limited (NITL) with effect from May 23, He possesses vast experience of working at top positions in the financial sector. Prior to joining NIT, he was working as Head of Investor Relations and Corporate Representation as well as member of Management Forum at Habib Bank Limited (HBL). Prior to that he had also served as Chief Executive Officer of HBL Asset Management Limited for over six years ( ) and was instrumental in the establishment and growth of the Company. Mr. Ghaffar has held key positions in the areas of asset management, capital market regulation and governance. At Securities And Exchange Commission of Pakistan (SECP) he served as Executive Director/Commissioner from 2000 to 2005 and played a vital role towards implementation of wide ranging reforms in the Capital Market and capacity building of Securities Market Division in Securities And Exchange Commission of Pakistan (SECP). While working as Managing Director/CEO Karachi Stock Exchange during his two years tenure ( ) he introduced effective risk management measures and was also instrumental in the automation of trading, enhancing capacity building and professionalism at the Stock Exchange. During the period , Mr. Shahid Ghaffar had served National Investment Trust Limited (NITL) (one of the biggest open- ended funds in the country) in different capacities in the Asset Management Division and at various stages was responsible for managing equity market portfolio, debt/fixed income portfolio and trading desk. He was also involved in the appraisal and monitoring of projects. In 1996, Mr. Ghaffar was entrusted responsibility of Asset Management Division. He actively participated in the reconstruction of NIT during the crisis period i.e Mr. Ghaffar holds Master Degree in Business Administration from Gomal University D.I. Khan, Khyber Pakhtunkhwa, Pakistan. He has attended several courses on Securities Regulations, Securities Markets Development and portfolio management including the prestigious course conducted by Securities and Exchange Commission, in Washington, DC. (United States). Mr. Manzoor Ahmed Mr. Manzoor Ahmed is Chief Operating Officer (COO) of National Investment Trust Limited (NIT) which is the largest Asset Management Company of Pakistan. He has been successfully managing the operations and investment portfolio worth over Rs. 90 bn. He has experience of over 25 years of the Mutual Fund industry and has been placed at many key positions within NIT that includes capital market operations, investments, research and liaising with the regulatory authorities. He is M.B.A. and also holds D.A.I.B.P. At present, he is a candidate for CFA Level III. Mr. Ahmed has attended various training courses organized locally and internationally. He represents NIT as Nominee Director on the Board of Directors of many leading national and multinational companies of Pakistan. Mr. Ahmed is also a Certified Director from Pakistan Institute of Corporate Governance. Syed Zubair Ahmad Mr. S. Zubair Ahmad is an MBA from IBA Karachi and MPhil in economics from Glasgow University UK. He did post graduate diploma in General management of State Enterprises with distinction from Research Institute for Development sciences The Netherlands. In addition he has attended and qualified various short international 26 P a g e