nipf (september 2018)€¦ · strategy & business planning committee mr. humayun bashir...

To rank in the top quartile

in performance of

NBP FUNDS

relative to the competition,

and to consistently offer

Superior risk-adjusted returns to investors.

MISSIONSTATEMENT

NAFA ISLAMIC PENSION FUND

Page 01Quarterly Report



Co

nten

ts

Co

nten

tsFUND'S INFORMATION

DIRECTORS' REPORT

CONDENSED INTERIM STATEMENT OF ASSETS ANDLIABILITIES

CONDENSED INTERIM INCOME STATEMENT

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

CONDENSED INTERIM STATEMENT OF MOVEMENT IN PARTICIPANTS' SUB FUNDS

CONDENSED INTERIM CASH FLOW STATEMENT

NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION

03

05

09

10

11

12

13

14



Habib Bank Limited (Islamic)United Bank Limited (Ameen)Bank Al Habib Limited (Islamic)Meezan Bank LimitedBank Islami (Pakistan) LimitedSindh Bank Limited (Sa’adat)MCB Bank Limited (Islamic)Dubai Islamic Bank LimitedBank Alfalah Limited (Islamic)Soneri Bank Limited (Mustaqeem)HabibMetro Bank Limited (Islamic)Allied Bank Limited (Islamic)

Dr. Foo Chiah Shiung (Kelvin Foo)Mr. Humayun BashirMr. Wajahat Rasul Khan

Mr. Tariq JamaliMr. Abdul Hadi Palekar

Mr. Mudassir Husain Khan

Mr. Tariq JamaliDr. Foo Chiah Shiung (Kelvin Foo)Mr. Humayun Bashir

Human Resource and Remuneration Committee

Mr. Kamal Amir Chinoy ChairmanMr. Abdul Hadi Palekar MemberMr. Humayun Bashir Member

Strategy & Business Planning Committee

Mr. Humayun Bashir ChairmanMr. Tariq Jamali MemberMr. Shehryar Faruque MemberDr. Foo Chiah Shiung (Kelvin Foo) Member

NBP Fund Management Limited - Management Company

Chief Financial Of�cer

Mr. Khalid Mehmood



Auditors

Deloitte Yousuf AdilChartered AccountantsCavish Court,A-35, Block 7 & 8,KCHSU, Sharae FaisalKarachi-75350 Pakistan

Legal Advisor

M/s Jooma Law Associates 205, E.I. Lines, Dr. Daudpota Road,Karachi.

7th Floor Clifton Diamond Building, Block No. 4,Scheme No. 5, Clifton Karachi.UAN: 021 (111-111-632),(Toll Free): 0800-20002,Fax: (021) 35825329Website: www.nbpfunds.com

Lahore Of�ce:

7-Noon Avenue, Canal Bank,Muslim Town, Lahore.UAN: 042-111-111-632Fax: 92-42-35861095

Islamabad Of�ce:

Plot No. 395, 396Industrial Area, I-9/3 Islamabad.UAN: 051-111-111-632Phone: 051-2514987Fax: 051-4859031

Peshawar Of�ce:

Opposite Gul Haji Plaza, 2nd FloorNational Bank BuildingUniversity Road Peshawar, UAN: 091-111 111 632Fax: 091-5703202

Multan Of�ce:



DIRECTORS’ REPORT

The Board of Directors of NBP Fund Management Limited is pleased to present the condensed unaudited �nancial statements of NAFA Islamic Pension Fund (NIPF) for the quarter ended September 30, 2018.Fund’s Performance

This is the �rst quarterly report of NAFA Islamic Pension Fund (NIPF) for the �nancial year 2018-19.

Amid ampli�ed volatility, the stock market struggled during 1QFY2019 as the benchmark KSE-100 Index witnessed a decline of 2.2%. Lackluster performance of the stock market is primarily attributable to continued concerns on the twin de�cits issue (Current Account De�cit & Fiscal De�cit) facing the economy. The market started the quarter under review on a negative note on the expectation of hung parliament in the general elections and associated policy dysfunction in the wake of dif�cult economic backdrop. Initially, the market celebrated the outcome of elections with a decent recovery of 5.4% in the three trading sessions as Imran Khan’s Pakistan Teheek-e-Insaf emerged as the largest party at the center with majority in Punjab and KPK provinces, and signi�cant gains in Sindh and Baluchistan provinces that put to rest the uncertainty in the domestic politics. However, the rally at the local bourse proved short lived as the entire focus of investors shifted to the multifaceted challenges confronting the economy. Corporate announcements with mixed showing also failed to provide a catalyst to the market. Moreover, driven by upside risks to in�ation and to rein in demand pressures to address ballooning current account de�cit coupled with the dwindling FX reserves, the SBP hiked the discount rate by 200 bps to 9%. Foreigners remained net sellers on the local bourse during the quarter with net out�ow of USD 189 million which was absorbed mainly by Insurance companies and Individuals. Sell-offs were witnessed in the Emerging Markets such as Turkey and Argentina with high foreign debt and large current account de�cits in the wake of rising US interest rates and strengthening US dollar.

Average CPI in�ation increased to 5.6% in Jul-Sep FY19 compared to 3.4% during the same period last year owing to increased international oil prices & its pass-through impact, higher regulatory duty on imports, depreciating Pak rupee, and excessive reliance of the government on the banking system for �scal �nancing amid shrinking Net Foreign Assets (NFA). Given potential upside risks to in�ation and interest rates, investors’ preference remained tilted towards short-term government securities as indicated by heavy participation in 3-month T-bills. The sovereign securities responded to the hike in the policy rates, as the yield curve witnessed an upward shift with yield on short-term T-Bills increasing by 136-142 basis points, whereas 3-year, 5-year, and 10-year PIBs yields moved up by 98 basis points, 77 basis points, and 102 basis points, respectively.

During the period, trading activity in corporate TFCs/Sukuks increased albeit from a low level with a cumulative trade value of around Rs. 3.8 billion as compared to Rs. 2.4 billion in the same period last year with Corporate Sukuk sector making up the lion’s share.

The asset allocation of the Funds as on September 30, 2018 is as follows:

Fund Size

(Rs. in mln)

NAV Per Unit (Rs.) July 02, 2013

NAV Per Unit (Rs.)

September 30, 2018

Performance Since Launch July 02, 2013

NIPF-Equity Sub-fund 1,135.8 100.7248 295.1117 22.8% NIPF-Debt Sub-fund 383.5 100.9502 128.6902 4.7% NIPF-Money Market Sub-fund 453.1 100.9426 130.3099 5.0%

Annualized Return [Net of management fee & all other expenses]



Acknowledgement

The Board takes this opportunity to thank its valued unit-holders for their con�dence and trust in the Management Company, and providing the opportunity to serve them. It also offers its sincere gratitude to the Securities & Exchange Commission of Pakistan and State Bank of Pakistan for their patronage and guidance. The Board also wishes to place on record its appreciation for the hard work, dedication and commitment shown by the staff and the Trustee.

On behalf of the Board ofNBP Fund Management Limited

Chief Executive Director

Date: October 30, 2018Place: Karachi.

Asset Allocation (% of Net Assets) Equity Sub-fund Equity 93.10% Cash Equivalents - Net 6.90%

Total 100.00% Debt Sub-fund Cash Equivalents - Net 44.46% Commercial Papers (Islamic) Sukuks Placements with Banks & DFIs

4.56% 31.42% 19.56%

Total 100.00% Money Market Sub-fund Cash Equivalents 80.36% Placements with Banks & DFIs 19.64%

Total 100.00%



1,135.8100.7248 295.1117 22.8%

383.5 100.9502 128.6902 4.7%

453.1 100.9426 130.3099 5.0%



93.10%6.90%

100.00%

44.46%

4.56%

13.42%

19.56%

80.39%

19.64%

100.00%

100.00%



CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES AS AT SEPTEMBER 30, 2018

Chief Financial Of�cer Chief Executive Of�cer Director

For NBP Fund Management Limited(Pension Fund Manager)

ASSETSBank balances 75,534,095 243,280,417 449,608,542 3,412,490 771,835,544 114,754,050 257,948,255 418,202,813 3,394,877 794,299,995

Investments 4 1,057,350,480 138,007,638 - - 1,195,358,118 1,015,418,934 113,774,500 - - 1,129,193,434

Dividend receivable 12,222,007 - - - 12,222,007 1,850,288 - - - 1,850,288

Mark-up receivables 5 1,071,174 4,713,539 5,535,889 - 11,320,602 674,614 3,659,974 2,543,237 - 6,877,825

Advances, deposits and other recievables 3,026,931 100,000 100,000 - 3,226,931 5,584,431 100,000 100,000 - 5,784,431

Total assets 1,149,204,687 386,101,594 455,244,431 3,412,490 1,993,963,202 1,138,282,317 375,482,729 420,846,050 3,394,877 1,938,005,973

LIABILITIES

Payable to the Pension Fund Manager 1,662,443 612,603 703,773 1,423,614 4,402,433 1,540,350 606,128 603,758 1,110,545 3,860,781

Payable to the Central Depository Company of PakistanLimited - Trustee 152,009 53,064 62,334 - 267,407 124,403 44,391 44,068 - 212,862

Payable to the Securities and Exchange Commission of Pakistan 94,373 31,607 37,148 - 163,128 307,133 120,562 97,077 - 524,772

Payable against purchase of investments 1,609,919 - - - 1,609,919 16,417,313 - - - 16,417,313

Accrued expenses and other liabilities 6 9,925,186 1,902,838 1,326,870 1,988,876 15,143,770 9,695,884 1,812,230 1,212,695 2,284,332 15,005,141

Total liabilities 13,443,930 2,600,112 2,130,125 3,412,490 21,586,657 28,085,083 2,583,311 1,957,598 3,394,877 36,020,869

NET ASSETS 1,135,760,757 383,501,482 453,114,306 - 1,972,376,545 1,110,197,234 372,899,418 418,888,452 - 1,901,985,104

PARTICIPANTS' SUB-FUNDS (as per statement attached) 1,135,760,757 383,501,482 453,114,306 - 1,972,376,545 1,110,197,234 372,899,418 418,888,452 - 1,901,985,104

Number of units in issue 3,848,579 2,980,037 3,477,206 3,760,000 2,917,702 3,255,032

Net asset value per unit 295.1117 128.6902 130.3099 295.2652 127.8059 128.6895

Contingencies and commitments 9

The annexed notes 1 to 13 form an integral part of these condensed interim �nancial statements.

Note Others Total

EquitySub Fund

EquitySub Fund

DebtSub Fund

Money Market

Sub Fund Debt

Sub Fund

Money Market

Sub Fund Total ----------------------------Rupees---------------------------

June 30, 2018 (Audited)September 30, 2018 (Un-audited)

--------------------------Rupees-----------------------------

Others



CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED)FOR THE QUARTER ENDED SEPTEMBER 30, 2018



INCOMEPro�t on bank deposits 1,527,772 4,550,503 7,835,354 13,913,629 993,599 2,477,265 3,131,128 6,601,992 Income from Sukuk Certi�cate - 1,797,144 - 1,797,144 - 2,248,144 208,357 2,456,501 Income from Term Deposit - 79,623 94,486 174,109 - Income from Commercial Paper - 244,309 - 244,309 Dividend income 12,323,734 - - 12,323,734 4,757,975 - - 4,757,975 Net gain /(loss) on sale of investments at fair value through income statement 7,204,996 - - 7,204,996 (15,220,873) - - (15,220,873) Net unrealised (diminution) / appreciation on re-measurement of investments

classi�ed as '�nancial assets at fair value through pro�t or loss' (15,595,451) (2,081,615) - (17,677,066) (91,441,108) (1,652,000) (187,500) (93,280,608)

Total income / (loss) 5,461,051 4,589,964 7,929,840 17,980,855 (100,910,407) 3,073,409 3,151,985 (94,685,013)

EXPENSESRemuneration of Pension Fund Manager 4,289,655 1,436,783 1,688,554 7,414,992 3,406,472 1,322,024 959,311 5,687,807 Sindh sales tax on remuneration of the Pension Fund Manager 557,655 186,782 219,512 963,949 442,841 171,863 124,711 739,415 Remuneration to the Central Depository Company of Pakistan Limited - Trustee 376,499 128,280 150,837 655,616 340,647 132,202 95,931 568,780 Sindh sales tax on remuneration of Trustee 48,946 16,676 19,609 85,231 44,284 17,186 12,471 73,941 Annual fee - Securities and Exchange Commission of Pakistan 94,372 31,609 37,148 163,129 74,942 29,085 21,105 125,132 Auditors' remuneration 38,364 38,364 38,364 115,092 38,381 38,381 38,381 115,143 Securities' transaction costs 338,779 4,375 - 343,154 278,402 - - 278,402 Others 3,772 11,316 11,316 26,404 103,318 11,316 11,316 125,950 Settlement and Bank charges 86,304 48,036 50,996 185,336 46,184 30,636 30,636 107,456 Total Expenses 5,834,346 1,902,221 2,216,336 9,952,903 4,775,471 1,752,693 1,293,862 7,822,026

Net (loss) / income /from operating activities (373,295) 2,687,743 5,713,504 8,027,952 (105,685,878) 1,320,716 1,858,123 (102,507,039)

Provision for Sindh Workers' Welfare Fund 7 - (53,755) (114,270) (168,025) - (26,415) (37,162) (63,577)

Net (loss) / income for the period before taxation (373,295) 2,633,988 5,599,234 7,859,927 (105,685,878) 1,294,301 1,820,961 (102,570,616)

Taxation 8 - - - - - - - -

Net (loss) / income for the period after taxation (373,295) 2,633,988 5,599,234 7,859,927 (105,685,878) 1,294,301 1,820,961 (102,570,616)


-----------------------------------Rupees--------------------------------------

For the Quarter ended September 30, 2017

EquitySub Fund

DebtSub Fund

Money Market

Sub Fund Total


EquitySub Fund

DebtSub Fund

Money Market

Sub Fund -----------------------------------Rupees--------------------------------------

Total



CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)FOR THE QUARTER ENDED SEPTEMBER 30, 2018



Net (loss) / income for the period after taxation (373,295) 2,633,988 5,599,234 7,859,927 (105,685,878) 1,294,301 1,820,961 (102,570,616)

Other comprehensive (loss) / income for the period - - - - - - - -

Total comprehensive (loss) / income for the period (373,295) 2,633,988 5,599,234 7,859,927 (105,685,878) 1,294,301 1,820,961 (102,570,616)


EquitySub Fund


EquitySub Fund

DebtSub Fund

Money Market

Sub Fund Total -----------------------------------Rupees-----------------------------------


Money Market

Sub Fund Total -----------------------------------Rupees-----------------------------------

DebtSub Fund



CONDENSED INTERIM STATEMENT OF MOVEMENT IN PARTICIPANTS' SUB FUNDS (UN-AUDITED)FOR THE QUARTER ENDED SEPTEMBER 30, 2018



Note

Net assets at the beginning of the period 1,110,197,234 372,899,418 418,888,452 1,901,985,104 964,029,792 365,707,979 253,201,235 1,582,939,006

Amount received on issuance of units 10 54,290,220 23,671,834 49,483,713 127,445,767 71,155,317 34,948,900 44,590,126 150,694,343

Amount paid on redemption of units (20,502,226) (18,004,078) (26,407,949) (64,914,253) (35,175,691) (50,571,272) (58,850,570) (144,597,533)

Effect of reallocation (7,851,176) 2,300,320 5,550,856 - (20,403,662) 4,027,364 16,376,298 -

Total comprehensive (loss)/ income for the period (373,295) 2,633,988 5,599,234 7,859,927 (105,685,878) 1,294,301 1,820,961 (102,570,616)

Net assets at the end of the period 1,135,760,757 383,501,482 453,114,306 1,972,376,545 873,919,878 355,407,272 257,138,050 1,486,465,200


----------------------------------------Rupees-----------------------------------------

F o r the Quarter ended September 30, 2017

EquitySub Fund

DebtSub Fund

Money Market

Sub Fund Total

F o r the Quarter ended September 30, 2018

EquitySub Fund

DebtSub Fund Total

Money Market

Sub Fund ----------------------------------------Rupees-----------------------------------------



CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)FOR THE QUARTER ENDED SEPTEMBER 30, 2018



CASH FLOWS FROM OPERATING ACTIVITIES

Net (loss) / income for the period before taxation (373,295) 2,633,988 5,599,234 - 7,859,927 (105,685,878) 1,294,301 1,820,961 - (102,570,616)

AdjustmentsNet unrealised appreciation / Diminution on re-measurement

of investments classi�ed as '�nancial assets at fair value through pro�t or loss' 15,595,451 2,081,615 - - 17,677,066 91,441,108 1,652,000 187,500 - 93,280,608

(Gain) / loss on sale of investment-net (7,204,996) - - - (7,204,996) 15,220,873 - - - 15,220,8738,017,160 4,715,603 5,599,234 - 18,331,997 976,103 2,946,301 2,008,461 - 5,930,865

Decrease / (increase) in assetsInvestments Net (50,322,001) (26,314,753) - - (76,636,754) (19,498,739) - - - (19,498,739)Dividend receivable (10,371,719) - - - (10,371,719) (1,333,484) - - - (1,333,484)Pro�t receivable (396,560) (1,053,565) (2,992,652) - (4,442,777) (373,282) (1,979,913) (329,511) - (2,682,706)Receivable against sale of investments - - - - - (5,355,550) (5,355,550)Advances,deposit and other receivables 2,557,500 - - - 2,557,500 (108,423) (135,037) 6,812,470 - 6,569,010

(58,532,780) (27,368,318) (2,992,652) - (88,893,750) (26,669,478) (2,114,950) 6,482,959 - (22,301,469)(Decrease) / increase in LiablitiesPayable against purchase of investments (14,807,394) - - - (14,807,394) - - - - - Payable to the Pension Fund Manager 122,093 6,475 100,015 17,613 246,196 (143,475) 17,948 42,487 1,410,718 1,327,678Payable to the Central Depository Company of Pakistan Limited 27,606 8,673 18,266 - 54,545 (14,346) 1,021 4,419 - (8,906)Payable to the Securities and Exchange Commission of Pakistan (212,760) (88,955) (59,929) - (361,644) (164,054) (70,804) (38,842) - (273,700)Accrued expenses and other liabilities 229,302 90,608 114,175 - 434,085 (6,541,641) 311,794 400,001 - (5,829,847)

(14,641,153) 16,801 172,527 17,613 (14,434,212) (6,863,516) 259,959 408,065 1,410,718 (4,784,774)

Net cash (used in) / generated from operating activities (65,156,773) (22,635,914) 2,779,109 17,613 (84,995,965) (32,556,891) 1,091,310 8,899,485 1,410,718 (21,155,378)

CASH FLOWS FROM FINANCING ACTIVITIES

Amount received on issue of units 54,290,220 23,671,834 49,483,713 - 127,445,767 71,155,317 34,948,900 44,590,126 - 150,694,343Amount paid on redemption of units (20,502,226) (18,004,078) (26,407,949) - (64,914,253) (35,175,691) (50,571,272) (58,850,570) - (144,597,533)Effect of reallocation (7,851,176) 2,300,320 5,550,856 - - (20,403,662) 4,027,364 16,376,298 - -

Net cash generated from / (used in) �nancing activities 25,936,818 7,968,076 28,626,620 - 62,531,514 15,575,964 (11,595,008) 2,115,854 - 6,096,810

Net (decrease) / increase in cash and cash equivalents (39,219,955) (14,667,838) 31,405,729 17,613 (22,464,451) (16,980,927) (10,503,698) 11,015,339 1,410,718 (15,058,568)

Cash and cash equivalents at the beginning of the period 114,754,050 257,948,255 418,202,813 3,394,877 794,299,995 97,597,766 198,562,188 231,069,973 4,932,588 532,162,515

Cash and cash equivalents at the end of the period 75,534,095 243,280,417 449,608,542 3,412,490 771,835,544 80,616,839 188,058,490 242,085,312 6,343,306 517,103,947


---------------------------------------------Rupees----------------------------------------------

Money MarketSub Fund


Money MarketSub Fund

---------------------------------------------Rupees----------------------------------------------

EquitySub Fund

DebtSub Fund

EquitySub Fund Total Others


Total Debt

Sub Fund Others



NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)FOR THE QUARTER ENDED SEPTEMBER 30, 2018

LEGAL STATUS AND NATURE OF BUSINESS NAFA Islamic Pension Fund (“the Fund”) was established under a Trust Deed, dated October 12, 2012, between NBP Fullerton Asset Management Limited as the Pension Fund Manager and Central Depository Company of Pakistan Limited (CDC) as the trustee. The Fund was authorised by the Securities and Exchange Commission of Pakistan (SECP) as a pension Fund on November 16, 2012. The Pension Fund Manager has been licensed to act as a Pension Fund Manager under the Voluntary Pension System Rules, 2005 (VPS Rules) through a certi�cate of registration issued by SECP. The registered of�ce of the Pension Fund Manager is situated at 7th �oor, Clifton Diamond Building, Block No. 4, Scheme No. 5, Clifton, Karachi. The Fund is an unlisted open end pension scheme and offers units for public subscription on a continuous basis. The units are non-transferable except in the circumstances mentioned in VPS Rules and can be redeemed by surrendering to the Fund. Further, as per the offering document, no distribution of income or dividend is allowed from any of the sub-funds.

The objective of the Fund is to provide individuals with a portable, individualised, funded (based on de�ned contribution), �exible pension scheme, assisting and facilitating them to plan and provide for their retirement.

The Fund has been formed to enable the participants to contribute in a diversi ed portfolio of securities, which are Shariah compliant. Under the Trust Deed, all the conducts and acts of the Fund are based on Shariah. The Pension Fund Manager has appointed Mufti Bilal Ahmed Qazi as Shariah Advisor to the Pension Fund to ensure that the activities of the Fund are in compliance with the principles of Shariah.

The Fund consists of three sub-funds namely, NAFA Islamic Pension Fund Equity Sub-Fund (Equity Sub-Fund), NAFA Islamic Pension Fund Debt Sub-Fund (Debt Sub-Fund) and NAFA Islamic Pension Fund Money Market Sub- Fund (Money Market Sub-Fund) (collectively the Sub-Funds). The investment policy for each of the Sub-Funds are as follows:

1



The Equity sub-fund consists of a minimum 90% of net assets invested in listed equity securities, investment in a single company is restricted to lower of 10% of Net Asset Value (NAV) of equity sub-fund or paid-up capital of the investee company. Investment in a single stock exchange sector is restricted to the higher of 30% of NAV of equity sub-fund or index weight, subject to a maximum of 35% of NAV of equity sub-fund. Remaining assets of the equity sub-fund may be invested in government treasury bills or government securities having less than one year time to maturity, or be deposited with scheduled commercial banks having at least A rating. The Debt sub-fund consists of Shariah compliant tradable debt securities with weighted average time to maturity of the investment portfolio of the sub-fund not exceeding ve years. At least twenty ve percent (25%) of the net assets of Debt sub-fund shall be invested in debt securities issued by the Federal Government. Upto twenty ve percent (25%) may be deposited with scheduled Islamic banks having not less than ""A+"" rating or Islamic windows of commercial banks having not less than 'AA' rating. Investment in securities issued by companies of a single sector shall not exceed 20% except for banking sector for which the exposure limit shall be up to 30% of net assets of Debt sub-fund. Composition of the remain-ing portion of the investments shall be as de�ned in the offering document. The Money Market sub-fund consists of Shariah compliant short term money market securities with weighted average time to maturity not exceed-ing one year. There is no restriction on the amount of investment in securities issued by the Federal Government and Islamic windows of commer-cial banks having 'A+' rating provided that deposit with any one bank shall not exceed 20% of net assets Money Market Sub-Fund. Investment in securities issued by provincial government, city government, government corporation with 'A' or higher rating or a corporate entity with 'A+' or higher rating shall be in proportion as de�ned in offering document. The Fund offers �ve types of allocation schemes, as prescribed by the SECP under VPS Rules, to the contributors of the Fund namely High Volatili-ty, Medium Volatility, Low Volatility, Lower Volatility & Life Cycle Allocation. The participants of the Fund voluntarily determine the contribution amount, subject to the minimum limit �xed by the Pension Fund Manager. The Participant has the option to select any one from the Allocation Schemes or products being offered by the Pension Fund Manager at the date of opening his / her Individual Pension Account. The Participant may change the Allocation Scheme not more than twice a year thereafter. The contribution amount may be paid by the contributor on a periodic basis such as annual, semi annual, quarterly or monthly basis or with any other frequency. Pakistan Credit Rating Agency (PACRA) has assigned management quality rating of ‘AM1’ to the Pension Fund Manager while the Fund is currently not rated.



Title to the assets of the Fund are held in the name of CDC as the trustee of the Fund. BASIS OF PREPARATION Statement of compliance These �nancial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. The account-ing and reporting standards applicable in Pakistan comprise of: International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as noti�ed under the Companies Act, 2017; Provisions of and directives issued under the Companies Act, 2017 along with part VIIIA of the repealed Companies Ordinance, 1984; and Non-Banking Finance Companies (Establishment and Regulations) Rules, 2003 (the NBFC Rules), Non-Banking Finance Companies and Noti�ed Entities Regulations, 2008 (the NBFC Regulations) and requirements of the Trust Deed. Where provisions of and directives issued under the Companies Act, 2017, part VIIIA of the repealed Companies Ordinance, 1984, the NBFC Rules, the NBFC Regulations and requirements of the Trust Deed differ from the IFRS, the provisions of and directives issued under the Companies Act, 2017, part VIIIA of the repealed Companies Ordinance, 1984, the NBFC Rules, the NBFC Regulations and requirements of the Trust Deed have been followed. The disclosures made in these condensed interim �nancial statements have, however, been limited based on the require-ments of the International Accounting Standard 34, Interim Financial Reporting. The directors of the Pension Fund Manager declare that condensed interim �nancial statements give a true and fair view of the fund." SUMMARY OF ACCOUNTING POLICIES Except as described below, the accounting policies applied in these unaudited condensed interim �nancial statements are the same as those applied in the Fund’s annual audited �nancial statements for the year ended June 30, 2018. IFRS 9: Financial Instruments (“IFRS 9”): Effective July 1, 2018, the Fund adopted IFRS 9, which sets out requirements for recognition and measurement, impairment, derecognition, and general hedge accounting. This standard simpli�es the classi�cation of a �nancial asset as either at amortized cost or at fair value as opposed to the multiple classi�cations which were permitted under IAS 39. This standard also requires the use of a single impairment method as opposed to the multiple methods in IAS 39. The approach in IFRS 9 is based on how an entity manages its �nancial instruments in the context of its business model and the contractual cash �ow characteristics of the �nancial assets. Impairment of �nancial assets is based on an expected credit loss (“ECL”) model under IFRS 9, rather than the incurred loss model under IAS 39. However, SECP vide its letter to MUFAP dated November 21, 2017 relaxed the applicability of IFRS 9 impairment requirements for debt securities on mutual funds and deferred it till further instructions. The standard also adds guidance on the classi�cation and measurement of �nancial liabilities.

There was no material impact of transition to IFRS 9 on the Fund’s statement of �nancial position at July 1, 2018.

2

2.1

3

-

-

-



4 INVESTMENTS - NET

At fair value through pro�t or loss

Equity securities - listed 4.1 1,057,350,480 - - 1,057,350,480 1,015,418,934 - - 1,015,418,934

Government of Pakistan Ijara Sukuk 4.2 & 4.3 - 120,512,885 - 120,512,885 - 113,774,500 - 113,774,500

Commercial PaperAt amortized Cost

- 17,494,753 - 17,494,753 - - - -

1,057,350,480 138,007,638 - 1,195,358,118 1,015,418,934 113,774,500 - 1,129,193,434

4.1 Listed equity securities - at fair value through pro�t or loss - Equity Sub-Fund

All shares have a nominal face value of Rs. 10 each unless stated otherwise.

--- Rupees--- ------------%-------------

Commercial BanksMeezan Bank Limited 474,710 297,000 73,871 - 845,581 75,408,914 6.64 0.08

CementAttock Cement Pakistan Limited 58,100 - - 58,100 - - - - D.G.Khan Cement 257,400 65,000 - 49,500 272,900 27,947,689 2.46 0.08 Fauji Cement Company Limited 267,500 - - 231,000 36,500 816,140 0.07 0.01 Fecto Cement Limited 19,600 - - - 19,600 823,200 0.07 0.00 Kohat Cement Limited 61,800 39,400 - - 101,200 12,664,168 1.12 0.09

--------------------------------------------Number of shares------------------------------------------

Market value as a % of net assets of the

Sub-Fund

Name of the investee company As at July 1,

2018

Purchases during

the period

Sales during

the period

Note

Market value As at September30, 2018

----------------------------------------------------Rupees----------------------------------------------------

September 30, 2018 (Un-audited) June 30, 2018 (Audited)

Debt Sub Fund

Bonus / Right during

the period

As at September 30,

2018 as a % of paid-up

capital of the investee company

TotalEquity

Sub Fund Total----------------------------------------------------Rupees----------------------------------------------------

Equity Sub Fund

Money Market

Sub FundDebt

Sub FundMoney Market

Sub Fund



--- Rupees--- ------------%-------------

Lucky Cement Limited 48,150 19,300 - - 67,450 34,597,803 3.05 0.13 Maple Leaf Cement Factory Limited 213,375 304,000 - 393,375 124,000 5,840,400 0.51 0.01 Pioneer Cement Limited 143,300 374,000 - - 517,300 22,481,858 1.98 0.33

Power Generation & DistributionHub Power Company Limited 557,300 97,000 - - 654,300 57,231,621 5.04 0.12 Kot Addu Power Company Limited 168,000 - - 168,000 - - - - Nishat Power Limited - 189,000 - - 189,000 4,951,800 0.44

Oil & Gas Exploration CompaniesMari Petroleum Company Limited 34,000 14,040 - - 48,040 74,862,173 6.59 0.04 Oil & Gas Development Company 494,900 70,900 - - 565,800 86,561,742 7.62 0.01 Pakistan Oil�elds Limited 97,500 17,600 23,020 - 138,120 75,852,742 6.68 0.06 Pakistan Petroleum Limited 423,832 23,000 - - 446,832 95,353,949 8.40 0.50

Oil & Gas Marketing CompaniesAttock Petroleum Limited 10,400 - 2,080 - 12,480 5,539,248 0.49 0.02 Hascol Petroleum Limited 33,788 7,500 - - 41,288 11,246,438 0.99 0.18 Pakistan State Oil Company Limited 144,864 5,000 - 36,900 112,964 36,017,442 3.17 0.04 Shell Pakistan Limited 11,000 - - 11,000 - - - - Sui Northern Gas Pipelines Limited 253,000 66,000 - - 319,000 28,429,280 2.50 0.05

Re�neryAttock Re�nery Limited 5,900 - 1,475 - 7,375 1,116,354 0.10 0.01

Textile CompositeKohinoor Textile Mills Limited 214,992 - - - 214,992 11,661,166 1.03 0.06 Nishat Mills Limited 369,400 23,000 - - 392,400 55,167,516 4.86 2.18

ChemicalAkzo Nobel Pakistan Limited 53,000 - - - 53,000 8,607,730 0.76 0.02 Dynea Pakistan Limited 16,500 - - - 16,500 1,775,730 0.16 0.17 Engro Polymer and Chemicals Limited 976,778 - - 252,000 724,778 21,047,553 1.85 Ittehad Chemical Limited 272,000 - - - 272,000 9,471,040 0.83

--------------------------------------------Number of shares------------------------------------------


Sub-Fund


2018

Purchases during

the period

Sales during

the period


the period

As at September 30,






--- Rupees--- ------------%-------------FertilizerDawood Hercules Corporation Limited 58,900 - - 43,000 15,900 1,694,145 0.15 0.00 Engro Corporation Limited 260,000 15,800 - 24,400 251,400 78,343,782 6.90 0.10 Engro Fertilizers Limited 926,000 241,000 - 386,500 780,500 58,919,945 5.19 0.06

Automobile and PartsAgriautos Industries Limited 22,000 7,000 - 2,200 26,800 6,311,132 0.56 0.01 Baluchistan Wheels Limited 82,800 - - - 82,800 7,490,916 0.66 0.00 Thal Limited 10,400 - - 10,400 - - - -

Automobile AssemblerMillat Tractors Limited 8,060 - - - 8,060 8,174,049 0.72 0.01 Pak Suzuki Motor Company Limited 800 - - - 800 247,856 0.02 0.00

Paper & BoardPackages Limited 7,100 - - - 7,100 3,175,262 0.28 0.01

Food ProducerFaran Sugar Mills Limited 43,000 - - - 43,000 3,225,000 0.28 0.03

EngineeringAmreli Steels Limited 67,000 81,500 - 67,000 81,500 5,293,425 0.47 0.03 Crescent Steel & Allied Products Limited 15,700 - - 15,700 - - - - Mughal Iron and Steel Industries Limited 66,750 - - 36,000 30,750 1,504,598 0.13 0.01

Industrial TransportationPakistan National Shipping Corporation Limited 27,000 - - 27,000 - - - -

TECHNOLOGY & COMMUNICATIONSystems Limited 253,000 - - 16,000 237,000 28,532,430 2.51 0.21 Avanceon Limited (note 6.1.2) 90,125 - - 29,000 61,125 5,070,930 0.45 NetSol Technologies Limited 152,500 - - 79,500 73,000 9,719,220 0.86

--------------------------------------------Number of shares------------------------------------------


Sub-Fund


2018

Purchases during

the period

Sales during

the period


the period

As at September 30,






--- Rupees--- ------------%-------------

Cable & Electrical GoodsPak Elektron Limited 113,125 232,000 - 113,125 232,000 7,131,680 0.63 0.26

MiscellaneousSynthetic Products Enterprises Limited 170,700 2,500 - - 173,200 6,581,600 0.58 0.20

Food and Personal Care Al-Shaheer Corporation Limited 401,535 - - - 401,535 11,042,213 0.97 0.28 At-Tahur Limited - 347,997 - 161,000 186,997 4,712,324 0.41

Glass & CeramicsGhani Glass Limited 61,180 - - - 61,180 3,686,095 0.32 0.01 Shabbir Tiles & Ceramics Limited 179,000 155,500 - 73,000 261,500 4,929,275 0.43 0.16 Tariq Glass Industries Limited 136,500 - - - 136,500 12,936,105 1.14 0.19

PharmaceuticalsAbbot Laboatories (Pakistan) Limited 13,750 - - 4,100 9,650 5,954,533 0.52 0.01 Ferozsons Laboratories Limited 17,800 - - 17,800 - - - - GlaxoSmithKline (Pakistan) Limited 17,080 - - - 17,080 2,524,766 0.22 0.01 AGP Limited 49,500 - - - 49,500 4,270,860 0.38 GlaxoSmithKline Consumer Healthcare (Pakistan) Limited 3,444 - - - 3,444 1,196,859 0.11 0.00 The Searle Company Limited 29,145 - - - 29,145 9,207,786 0.81 0.02

8,964,983 2,695,037 100,446 2,305,600 9,454,866 1,057,350,480 93.10 5.85

1,072,945,931

--------------------------------------------Number of shares------------------------------------------


Sub-Fund

Carrying Value as at September 30, 2018


2018

Purchases during

the period

Sales during

the period


the period

As at September 30,






4.2 Government securities - Ijarah Sukuk

4.2.1 Held by Debt Sub-Fund

3 Years 18-Dec-15 35,000,000 - - 35,000,000 34,888,000 9.10 3 Years 15-Feb-16 5,000,000 - - 5,000,000 4,972,000 1.30 3 Years 30-Jun-17 75,000,000 - - 75,000,000 71,850,000 18.74

115,000,000 - - 115,000,000 111,710,000 29.13

113,774,500

4.3 Sukuks

4.3.1 Debt Sub-Fund

ENGRO Fertilizer Limited9-Jul-14 - 8,750,000 - 8,750,000 8,802,885 2.30

- 8,750,000 - 8,750,000 8,802,885 2.30

8,820,000

Issue date September 30, 2018


As at July 1, 2018

Purchases during

the period

Issue date

--------------------------------------------Face value (Rupees)---------------------------------------- --------------------Rupees-------------------

Marketvalue As atSeptember30, 2018

As at September 30,

2018

Market value as a % of net assets of

the Sub-Fund

Matured/Sold during the

period

Purchases during

the period

Matured/Sold during

the period Issue

As at July 1, 2018


the Sub-Fund

--------------------------------------------Face value (Rupees)----------------------------------------

Tenure

--------------------Rupees-------------------


Marketvalue As atSeptember30, 2018



4.4 Commercial Paper

4.4.1 Debt Sub-Fund

K-Electric Limited 29-Aug-18 - 9,000,000 - 9,000,000 8,681,152 2.26 Hascol Petroleum Limited 4-Jul-18 - 9,000,000 - 9,000,000 8,813,601 2.30

- 18,000,000 - 18,000,000 17,494,753 4.56

17,494,753

5 PROFIT RECEIVABLE

4.4.1.14.4.1.2

These represents commercial paper having original maturity period of six months. These carry mark-up rate of 8.25% per annumThese represents commercial paper having original maturity period of six months. These carry mark-up rate of 8.21% per annum

Equity Debt Money Total Equity Debt Money Total

Sub-Fund Sub-Fund Market Sub-Fund Sub-Fund Market

Sub-Fund Sub-Fund

Mark-up on GoP Ijara sukuks - 1,678,189 - 1,678,189 - 2,162,979 - 2,162,979 Mark-up on sukuks - 177,407 - 177,407 Mark-up on Term Deposit - 79,623 94,486 174,109 Mark-up on bank deposits 1,071,174

1,071,174 2,778,320 5,441,403 9,290,897 674,614 1,496,995 2,543,237 4,714,846 4,713,539 5,535,889 11,320,602 674,614 3,659,974 2,543,237 6,877,825

2018 2017

- Purchases

during the period

Issue date


Issue Matured/Sold

during the period

As at September 30,

2018


the Sub-Fund

--------------------------------------------Face value (Rupees)---------------------------------------- --------------------Rupees-------------------

6 ACCRUED EXPENSES AND OTHER LIABILITIES

Provision for Workers' Welfare Fund 6,827,479 773,516 654,916 - 8,255,911 6,827,479 719,761 540,646 - 8,087,886 Federal Excise Duty on management remuneration 1,103,628 725,198 420,894 - 2,249,720 1,103,629 725,198 420,894 - 2,249,721 Federal Excise Duty on Sales load - - - 1,988,876 1,988,876 - - - 1,988,876 1,988,876 Payable to the auditors 141,645 141,646 141,648 - 424,939 103,281 103,282 103,284 - 309,847 Bank charges Payable 132,330 111,393 10,516 - 254,239 173,657 169,260 60,765 - 403,682 Printing charges 32,858 32,864 32,858 - 98,580 29,086 29,092 29,086 - 87,264 Legal and professional 162,496 49,206 49,207 - 260,909 162,496 41,662 41,663 - 245,821 Brokerage payable 105,235 - - - 105,235 153,315 - - - 153,315 Witholding tax 156,253 55,513 2,960 - 214,726 10,037 5,214 3,827 295,456 314,534 Charity payable 1,257,880 - - - 1,257,880 1,119,607 - - - 1,119,607 Other charges payable 5,382 13,502 13,871 - 32,755 13,297 18,761 12,530 - 44,588

9,925,186 1,902,838 1,326,870 1,988,876 15,143,770 9,695,884 1,812,230 1,212,695 2,284,332 15,005,141

Debt Sub-Fund

MoneyMarket

Sub-Fund

September 30, 2018 (Un-audited)

Total

---------------------------------------------------------- Rupees ----------------------------------------------------------

Equity Sub-Fund

Others TotalMoneyMarket

Sub-Fund

Equity Sub-Fund

---------------------------------------------------------- Rupees ----------------------------------------------------------

June 30, 2018 (Audited)

Debt Sub-Fund

Others




7 PROVISION FOR SINDH WORKERS' WELFARE FUND

8 TAXATION

9 CONTINGENCIES AND COMMITMENTS

Had the same not been made the net asset value per unit / return of the equity, debt and money market sub funds would have been higher by Rs. 1.7740, Re.0.2596, and Re. 0.1883 (2017: Re.2.2983, Re.0.1901, and Re. 0.1772) per unit respectively.

As a consequence of the 18th amendment to the Constitution of Pakistan, in May 2015 the Sindh Workers’ Welfare Fund Act, 2014 (SWWF Act) had been passed by the Government of Sindh as a result of which every industrial establishment located in theProvince of Sindh, the total income of which in any accounting year is not less than Rs 0.50 million, was required to pay Sindh Workers’ Welfare Fund (SWWF) in respect of that year a sum equal to two percent of such income. The matter was taken up by theMUFAP with the Sindh Revenue Board (SRB) collectively on behalf of various asset management companies and their CISs whereby it was contested that mutual funds should be excluded from the ambit of the SWWF Act as these were not industrialestablishments but were pass through investment vehicles and did not employ workers. The SRB held that mutual funds were included in the de�nition of �nancial institutions as per the Financial Institution (Recovery of Finances) Ordinance, 2001 and were,hence, required to register and pay SWWF under the SWWF Act. Thereafter, MUFAP had taken up the matter with the Sindh Finance Ministry to have CISs / mutual funds excluded from the applicability of SWWF. In view of the above developments regardingthe applicability of SWWF on CISs/mutual funds, the MUFAP recommended that as a matter of abundant caution provision in respect of SWWF should be made on a prudent basis with effect from the date of enactment of the SWWF Act, 2014 (i.e. starting fromMay 21, 2015).

No provision for taxation for the period ended September 30, 2018 has been made in view of the exemption available under clause 57 (3) (viii) of Part I of the Second Schedule to the Income Tax Ordinance, 2001.

There were no contingencies and commitments outstanding as at September 30, 2018 and June 30, 2018.

In the repealed Companies Ordinance, 1984 and the now applicable Companies Act, 2017, mutual funds have not been included in the de�nition of "�nancial institutions". The MUFAP has held the view that SWWF is applicable on asset management companies

and not on mutual funds.

10 CONTRIBUTION TABLE

Units Rupees Units Rupees Units Rupees Units Rupees

Individuals 185,123 54,290,220 296,825 23,671,834 489,347 49,483,713 971,295 127,445,767

185,123 54,290,220 296,825 23,671,834 489,347 49,483,713 971,295 127,445,767

Units Rupees Units Rupees Units Rupees Units Rupees

Individuals 244,935 71,155,317 349,436 34,948,900 495,372 44,590,126 1,089,743 150,694,343

244,935 71,155,317 349,436 34,948,900 495,372 44,590,126 1,089,743 150,694,343

Debt Sub Fund Money Market Sub Fund

For the quarter ended 30 September 2018

Debt Sub Fund Money Market Sub Fund

For the quarter ended 30 September 2017

Total

Total

Equity Sub Fund

Equity Sub Fund



11 TRANSACTIONS WITH CONNETED PERSONS

11.1

11.2

11.3

11.4 Details of the transactions with connected persons are as follows:

------------------------------Rupees----------------------------------

NBP Fund Management Limited - Pension Fund Manager

Management fee 4,289,655 1,436,783 1,688,554 7,414,992 3,406,472 1,322,024 959,311 5,687,807

Sales tax on remuneration of Pension Fund Manager 557,655 186,782 219,512 963,949 442,841 171,863 124,711 739,415

ALEXANDRA FUND MANAGEMENT LTD - SPONSOR

Amount of units redeemed - - - - 20,210,411 21,472,785 21,444,723 63,127,920

Number of units redeemed - - - - 63,651 172,800 172,490 408,941

Central Depository Company of Pakistan Limited - Trustee

Remuneration 376,499 128,280 150,837 655,616 340,647 132,202 95,931 568,780

Sales tax on remuneration of Trustee 48,946 16,676 19,609 85,231 44,284 17,186 12,471 73,941

Employees of the Company

Amount of units issued 767,519 233,440 195,902 1,196,861 487,746 746,320 3,475 1,237,541

Number of units issued 2,557 1,825 1,514 5,896 1,631 5,980 28 7,639

Amount of units redeemed - - - - 1,390,756 - - 1,390,756

Number of units redeemed - - - - 4,231 - - 4,231

Taurus Securities Limited

Brokerage Paid 15,764 - - 15,764 19,748 - - 19,748

Remuneration payable to the Pension Fund manager and Trustee is determined in accordance with the provisions of the VPS Rules and the Trust Deed.

Equity Sub Fund

Equity Sub Fund Total

Money Market

Sub Fund Total

Connected persons include NBP Fund Management Limited, being the Pension Fund manager, Central Depository Company of Pakistan Limited (being the Trustee), National Bank of Pakistan (NBP) and

Alexandra Fund Management Pte. Limited, being the sponsors of the Fund / Pension Fund Manager and other collective investment schemes managed by the NBP Fund Management Limited , directors and

of�cers of the NBP Fund Management Limited and employee bene�t funds of the NBP Fund Management Limited.

The transactions with connected persons are in the normal course of business, at contracted rates and terms determined in accordance with market rates.

Money Market

Sub FundDebt

Sub Fund

For the quarter ended 30 September 2017For the quarter ended 30 September 2018

Debt Sub Fund

------------------------------Rupees----------------------------------





11.5 Amounts outstanding as at period end

------------------------------Rupees----------------------------------

NBP Fund Management Limited - Pension Fund ManagerManagement fee payable 1,404,904 475,459 556,441 - 2,436,804 1,296,858 469,730 467,932 - 2,234,520

Sindh Sales tax payable on management fee 182,539 62,144 72,332 - 317,015 168,492 61,398 60,826 - 290,716

Preliminary expenses and �oatation cost payable 75,000 75,000 75,000 - 225,000 75,000 75,000 75,000 - 225,000

Number of units held 113,471 - 29,284 - 142,755 113,471 - 29,284 - 142,755

Amount of units held 33,486,710 - 3,815,969 - 37,302,679 33,504,128 - 3,768,518 - 37,272,646

Sales load inclusive of Sales Tax and Federal

Excise Duty - - - 1,423,614 1,423,614 - - - 1,110,545 1,110,545

DR. AMJAD WAHEED - CHEIF EXECUTIVE - CEO

Number of units held 18,693 - - - 18,693 18,693 - - - 18,693

Amount of units held 5,516,520 - - - 5,516,520 5,519,389 - - - 5,519,389

Employees of the CompanyNumber of units held 100,594 9,098 123,331 - 233,022 98,037 7,272 121,817 227,126

Amount of units held 29,686,430 1,170,769 16,071,228 - 46,928,427 28,946,966 929,442 15,676,608 45,553,016

Central Depository Company of Pakistan Limited - Trustee

Trustee Fee payable 134,765 47,107 55,244 - 237,116 110,091 39,284 38,998 - 188,373

Sindh Sales Tax payable 17,244 5,957 7,090 - 30,291 14,312 5,107 5,070 - 24,489

BankIslami Pakistan Limited (Common directorship with the Management Company)

Mark-up on bank balances 399,073 296,402 341,294 - 1,036,769 314,703 367,922 395,287 1,077,912

12 DATE OF AUTHORISATION FOR ISSUE

13 GENERAL

13.1

13.2

Figures have been rounded off to the nearest thousand rupees, unless otherwise speci�ed.

Corresponding �gures have been rearranged or reclassi�ed, where necessary, for the purposes of better presentation. Except mentioned in Note 3, no signi�cant rearrangement or reclassi�cation was made in thesecondensed interim �nancial statements during the current period.

------------------------------Rupees----------------------------------

Equity Sub Fund

Debt Sub FundOthers Total

Money Market

Sub FundTotal

These �nancial statements were authorized for issue on October 30, 2018 by the Board of Directors of the Management Company.

For the quarter ended 30 September 2018 For the year ended 30 June 2018

Equity Sub Fund

Debt Sub Fund

Money Market

Sub Fund Others

nipf (september 2018)€¦ · strategy & business planning committee mr. humayun bashir...

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