Fixed Term Funds
The Meezan Paaidaar Munafa Plan-X (MPMP-X) is an allocation plan under “Meezan Fixed Term Fund” with an objective to provide investors with a competitive rate of return, for fixed tenure by investing primarily in Shariah Compliant TDRs and money market placements / Instruments for a specific duration.
| Plan Name | Meezan Paaidaar Munafa Plan-X |
|---|---|
| Plan Category | Open end Shariah Compliant Collective Investment Scheme as per SECP’s Circular No.3 of 2022 |
| Date of Inception | 25th April, 2024 |
| Duration of the Plan | 12 Months |
| Fund Size – September 30th, 2024 | Rs. 3.00 Billion |
| Benchmark | Average deposit rates (for comparable period of the plan) of three (3) AA rated scheduled Islamic Banks or Islamic windows of conventional bank as selected by MUFAP at the time of plan launch. |
| Minimum and Subsequent Investment | Rs. 500,000 & its multiples |
| Minimum Redemption Amount | Rs. 500,000 & its multiples |
| Contingent Load | Contingent load shall be charged on redemption prior to initial maturity and shall commensurate with net loss incurred due to Early Redemption, as determined by the Management Company. |
| Expense Ratio | Up to 2%, as specified by SECP |
| Management Fee | Up to 5% of the gross earnings of the Scheme, calculated on a daily basis, subject to a minimum of 0.10% of the average daily net assets of the Scheme. |
| Target Towards | Individuals, HNWI’s, Corporates, Banks, DFI’s, Insurance Companies, Employee Retirement and Endowment funds, Charitable Institutions and Trusts & NGO’s. Primarily that clientele which seeks better returns than available by TDRs of corresponding tenure, while not seeking liquidity prior to initial maturity of the plans. |
| Authorized Investments | Entity / Instruments Rating | Maximum Exposure | Minimum Exposure | Maturity |
|---|---|---|---|---|
| A. Shariah Compliant GOP Issued/guaranteed Securities | N/A | 100% | 0% | N/A |
| B. Cash at Bank (excluding TDRs) with licensed Islamic Banks or Islamic Branches/Windows of Conventional Banks, Shariah Compliant Government Securities including GoP Ijarah Sukuk not exceeding 90 days maturity. | AA | 100% | 0% | N/A |
| C. Shariah compliant placements with maturity not exceeding three (12) months | AA | 100% | 0% | Equal to the Actual Maturity of the Plan |
Note: The subscription of the Plan will be subject to availability of the underlying security. In case where required amount is not invested or fully invested through secondary market purchase at a desired level then Al Meezan Investment would accept participation on pro-rata basis in the plan, while returning the
remaining amount to the investors. Further, in case where the entire auction participation does not materialize, then Management Company shall return the entire amount to the participants.
Considering the risk profile of the Fund, weighted average time to maturity of 90% of net assets shall not exceed 4 years and this condition shall not apply to securities issued by the Federal Government.
Investments shall be made as per the authorized investment limits given above and may be made according to the following mode of Shariah Transaction such as; principles of Bai’-Mu’ajjal, Bai’-Mussawwama, Bai’-Salam, Istisna’a, Mudaraba, Murabaha and Musharakah or any other structure as approved by the Shariah Advisor from time to time.
The Fund, in light of its investment objective and investment policy, shall exclusively invest in Shariah Compliant investments transacted, traded or listed in Pakistan. Any investment made outside Pakistan shall be subject to prior approval of the State Bank of Pakistan and SECP.
