NIT Islamic Money Market Fund (NIT IMMF) - Offering Document

Transcription

1. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document Risk Disclaimer: All Investments in mutual Fund are subject to market risks. The NAV of Units may go up or down based on the market conditions. The investors are advised in their own interest to carefully read the contents of the Offering Document, in particular the Investment Policies mentioned in clause 3.2, Risk Factors mentioned in clause 3.13, Taxation Policies mentioned in Clause 8 and Warnings in Clause 10 before making any investment decision. OFFERING DOCUMENT OF NIT Islamic Money Market Fund (NIT IMMF) (An Open End Shari’ah Compliant Money Market Scheme) (Wakalatul Istithmar based fund) Duly vetted by Shari’ah Advisor namely Mufti Zeeshan Abdul Aziz (SECP/IFD/SA/033) Fund Category Risk Profile Risk of Principal Erosion Islamic Money Market Low Principal at low risk Tax credit benefit to unitholders (other than the Corporate) of this scheme may not be available until the Fund is listed at Pakistan Stock Exchange (PSX) MANAGED BY National Investment Trust Limited (NITL) Published Date 13-Sep-2021
2. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document CLAUSE TABLE OF CONTENTS PAGE NO. 1. REGULATORY APPROVAL AND CONSENT 5 2. CONSTITUTION OF THE SCHEME 7 2.1 2.2 2.3 2.4 2.5 2.6 2.7 Constitution Governing Law Modification of Trust Deed Trust property Offering Document Modification of Offering Document Responsibility of the Management Company for information given in this Document Duration Initial Offer and Initial Period Transaction in Units after Initial Offering Period Introduction to the Scheme 7 7 7 8 8 8 2.8 2.9 2.10 2.11 8 8 8 9 9 3. INVESTMENT OBJECTIVES, INVESTMENT POLICY, RESTRICTIONS, RISK DISCLOSURE AND DISCLAIMER 9 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 Investment Objective Investment Policy Authorized Investments Benchmark Shariah Investment Guidelines Risk Control in the Investment Process Management Company Can Alter Investment Mix Changes in Investment Policy Investment Restrictions Exemption to Investment Restrictions Shari’ah compliant Financing Arrangements Restriction of Transactions with Connected Persons Risk Disclosure Disclosure Disclaimer 9 9 9 11 11 11 11 12 12 14 14 15 15 17 17 4. OPERATORS AND PRINCIPALS 17 4.1 Management Company 17 4.2 Board of Directors and Management of the Management Company 18 4.3 Funds Under the Management of National Investment Trust Limited 24 4.4 Role and Responsibilities of the Management Company 31 4.5 Maintenance of Unit Holders Register 34 A Register of Unit Holders may be maintained by the Management Company itself or such other company, as the Management Company may appoint after giving prior notice to the Unit Holders. 34 4.6 Disclaimer 34 4.7 Role of the Trustee 34 4.8 Shariah Advisor 36 4.9 Transfer Agent 37 4.10 Custodian 38 4.11 Distributors/Facilitators 38 Published Date 13-Sep-2021
3. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document 4.12 4.13 4.14 4.15 4.16 4.17 Auditors Legal Advisors Bankers Disposal of Haram Income Rating of the Scheme Minimum Fund Size 38 39 39 40 41 41 5. CHARACTERISTICS OF UNITS 41 5.1 5.2 5.3 5.4 5.5 5.6 5.7 Units 41 Classes of Units – 41 Purchase and Redemption of Units 41 Procedure for Purchase of Units 42 Procedure for Redemption of Units 48 Redemption of Units in Book Entry form in CDS 50 Purchase (Public Offer) and Redemption (Repurchase) of Units outside Pakistan 50 Determination of Redemption (Repurchase) Price 51 Procedure for Requesting Change in Unit Holder Particulars 51 Procedure for Pledge / Lien / Charge of Units 54 Temporary Change in Method of Dealing, Suspension of Dealing and Queue System 55 5.8 5.9 5.10 5.11 6. DISTRIBUTION POLICY 56 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 Declaration of Dividend Determination of Distributable Income Payment of Dividend Dispatch of Dividend Warrants/Advice Reinvestment of Dividend Bonus Units Encashment of Bonus Units Closure of Register 56 57 57 58 58 58 58 58 7. FEE AND CHARGES 58 7.1 7.2 Fees and Charges Payable by an Investor Fees and Charges Payable by the Fund 58 60 8. TAXATION 61 8.1 8.2 8.3 8.4 Taxation on the Income of the Fund Withholding tax Zakat on Fund Taxation and Zakat on Unit Holders 61 62 62 62 9. REPORTS TO UNIT HOLDERS 63 9.1 9.2 9.3 9.4 9.5 Account Statement Financial Reporting Trustee Report Shariah Review Report Fund Manager Report 63 64 64 64 64 10. WARNING AND DISCLAIMER 64 10.1 10.2 Warning DISCLAIMER 64 65 Published Date 13-Sep-2021
4. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document 11. GENERAL INFORMATION 65 11.1 11.2 11.3 11.4 11.5 11.6 Accounting Period / Financial Year of the Fund Inspection of Constitutive Documents Transfer of Management Rights of the Fund Extinguishment/Revocation of the Fund Procedure and manner of Revocation of the Fund Distribution of proceeds on Revocation 65 65 65 66 67 67 12. GLOSSARY 67 Published Date 13-Sep-2021
5. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document OFFERING DOCUMENT OF NIT Islamic Money Market Fund (NIT IMMF) (An Open End Shari’ah Compliant Islamic Money Market Scheme) (Wakalatul Istithmar based fund) Managed By National Investment Trust Limited [An Asset Management Company Registered under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003] Date of Publication of Offering Document Dated September 13, 2021 Initial Offering Period from (20 September 2021) to (22 September 2021) (both days inclusive) The NIT Islamic Money Market Fund (the Fund/the Scheme/the Trust/the Unit Trust) has been established through a Trust Deed (the Deed) dated 16th August 2021, under the Sindh Trust Act, 2020 entered into and between National Investment Trust Limited, the Management Company, and Central Depository Company of Pakistan Limited, the Trustee, and is authorized under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the “Rules”) and Non-Banking Finance Companies and Notified Entities Regulation, 2008 (“Regulations”). 1. REGULATORY APPROVAL AND CONSENT Approval of the Securities and Exchange Commission of Pakistan The Securities and Exchange Commission of Pakistan (SECP) has authorized the offer of Units under NIT Islamic Money Market Fund (NIT IMMF) and registered as a notified entity under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 and Non-Banking Finance Companies and Notified Entities Regulations 2008 (“Regulations”) vide letter no. SCD/AMCW/NITL/64/2021 dated September 03, 2021, SECP has approved this Offering Document, under Regulation 54 of the NBFC & NE Regulations 2008 vide letter no. no. SCD/AMCW/NITL/NITIMMF/72/2021dated September 13, 2021. It must be clearly understood that in giving this approval, SECP does not take any responsibility for the financial soundness of the Fund nor for the accuracy of any statement made or any opinion expressed in this Offering Document. Offering Document This Offering Document sets out the arrangements covering the basic structure of the NIT Islamic Money Market Fund (the “Fund”, the “Scheme”). It sets forth information about the Fund that a prospective investor should know before investing in any class of Unit of the Published Date 13-Sep-2021
6. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document Fund. The provisions of the Trust Deed, Shariah Guidelines, the Rules, Regulations, circulars, directives etc. issued by the SECP as specified hereafter govern this Offering Document. Confirmation of vetting by Shariah Advisor This document has been reviewed and vetted by Shariah Advisor Mufti Zeeshan Abdul Aziz. All Investments of the Fund shall be in adherence to the Shariah principles. It is possible that adherence to the principles of Shariah will cause the Fund to perform differently from Funds with similar objectives, but that are not subject to the requirements of Shariah. Prospective investors in their own interest are advised to carefully read this Offering Document to understand the Investment Policy, Risk Factors, Warning and Disclaimer. If prospective investor has any doubt about the contents of this Offering Document, he/she should consult one or more from amongst their investment advisers, legal advisers, bank managers, stockbrokers, or financial advisers to seek independent professional advice. Investors must recognize that the investments involve varying levels of risk. The portfolio of the Fund consists of investments, listed as well as unlisted, that are subject to market fluctuations and risks inherent in all such investments. Neither the value of the Units in the Fund nor the dividend declared by the Fund is, or can be, assured. Investors are requested to read the Risk Disclosure and Warnings statement contained in Clause 3.13 and Clause 10 respectively in this Offering Document. Filing of the Offering Document The Management Company has filed a copy of the Offering Document signed by the Chief Executive along with the Trust Deed with SECP. Copies of the following documents can be inspected at the registered office of the Management Company or the place of business of the Trustee: (1) License No. AMCW/04/NITL/AMS/01/2019 dated April 22, 2019 granted by SECP to National Investment Trust Limited (NITL) to carry out Asset Management Services and Investment Advisor; (2) SECP’s Letter No. SCD/AMCW/NITL/64/2021 dated September 03, 2021 registering the Fund in terms of Regulation 44 of the NBFC and Notified Entities Regulations 2008; (3) Central Depository Company of Pakistan Limited (CDC) with the consent appointed as the Trustee of the Fund; (4) Letter No. CDC/T&C-U1/DH/0277/2021 dated September 03, 2021 from Trustee Central Depository Company of Pakistan Limited (CDC) consenting the contents of the Offering Document. (5) Trust Deed (the Deed) of NIT Islamic Money Market Fund dated 16th August, 2021 between National Investment Trust Limited (NITL) as the establisher and the Management Company and Central Depository Company of Pakistan Limited (CDC), as a Trustee registered under Sindh Trust Act 2020; Published Date 13-Sep-2021
7. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document (6) Letter dated September 07, 2021 from Mufti Zeeshan Abdul Aziz, Shariah Advisor of the Fund, consenting on the contents of the offering document. (7) SECP’s through letter No. SCD/AMCW/NITL/NITIMMF/72/2021dated September 13, 2021 has approved this Offering Document. 2. 2.1 CONSTITUTION OF THE SCHEME Constitution The Fund is an open-end Fund and has been constituted by a Trust Deed entered into at Karachi on 16th August, 2021 between: National Investment Trust Limited, a Non-Banking Finance Company incorporated under the Companies Ordinance 1984 and licensed by SECP to undertake asset management services, with its principal place of business at 6th Floor. NBP Building, I. I. Chundrigar Road, Karachi - Pakistan, as the Management Company; and Central Depository Company of Pakistan Limited incorporated in Pakistan under the Companies Ordinance, 1984, and licensed by SECP to act as a Trustee of the Collective Investment Scheme, having its registered office at CDC House, 99-B, S.M.C.H.S., Main Shahrah-e-Faisal, Karachi, Pakistan, as the Trustee. 2.2 Governing Law This Offering Document and the Trust Deed (the Deed) are subject to and governed by the Non-Banking Finance Companies (Establishment and the Regulations) Rules, 2003 and Non-Banking Finance Companies and Notified Entities Regulations, 2008, Securities Act 2015, Securities and Exchange Ordinance 1969, Companies Act 2017 and all other applicable laws and regulations including Shariah Advisors Regulations, 2017 and Shariah Governance Regulations, 2018. The terms and conditions in the Deed and any supplemental Deed (s) shall be binding on each Unit Holder (s). In the event of any conflict between the Offering Document and the Deed, the latter shall supersede and prevail over the provisions contained in this Offering Document. In the event of any conflict between the Deed and the Rules or Regulations and Circulars issued by SECP, the latter shall supersede and prevail over the provisions contained in the Deed. Furthermore, all Investments of the Fund Property shall be in accordance with the principles of Shari’ah as advised by the Shariah Advisor. The Fund shall also be subject to the rules and the regulations framed by the State Bank of Pakistan with regard to the foreign investments made by the Fund and investments made in the Fund from outside Pakistan in foreign currency. 2.3 Modification of Trust Deed The Trustee and the Management Company, acting together and with the approval of SECP and Shariah Advisor, shall be entitled by supplemental deed(s) to modify, alter or add to the provisions of the Deed to such extent as may be required Published Date 13-Sep-2021
8. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document to ensure compliance with any Shariah guidelines, applicable laws, Rules and Regulations. Where the Deed has been altered or supplemented, the Management Company shall duly notify to the Unit Holders and post on their official website. 2.4 Trust property The aggregate proceeds of all Units issued from time to time after deducting Duties and Charges, Transactions Costs and any applicable Sales Load, shall constitute part of the Trust Property and includes the Investment and all income, profit and other benefits arising there from and all cash, bank balances and other assets and property of every description for the time being held or deemed to be held upon trust by the Trustee for the benefit of the Unit Holder(s) pursuant to the Deed but does not include any amount payable to the Unit Holders as distribution. However, any profit earned on the amount payable to the Unit Holders as distribution shall become part of the Trust Property. 2.5 Offering Document The provisions of the Trust Deed, the Rules, the Regulations, Circulars, Shariah Advisors Regulations, 2017 and Shariah Governance Regulations, 2018 and the Directive issued by the Commission govern this Offering Document. It sets forth information about the Fund that a prospective investor should know before investing in any Unit. Prospective investors in their own interest are advised to carefully read this Offering Document to understand the Investment Policy, Risk Factors, Warning and Disclaimer and should also consult their legal, financial and/or other professional adviser before investing. 2.6 Modification of Offering Document This Offering Document will be updated to take account of any relevant material changes relating to the Fund. Such changes shall be subject to prior consent of the Trustee, Shariah Advisor and approval from the Securities and Exchange Commission of Pakistan (SECP) and shall be circulated to all Unit Holders and/ or publicly notified by advertisements in the newspapers subject to the provisions of the Rules and the Regulations and Shariah guidelines and duly posted on official website of the Management Company. 2.7 Responsibility of the Management Company for information given in this Document Management Company accepts the responsibility for the information contained in this Offering Document as being accurate at the date of its publication. 2.8 Duration The duration of the Fund is perpetual. However, SECP or the Management Company may wind it up or revoke, on the occurrence of certain events as specified in the Regulations or clause no. 11.4 of this document. 2.9 Initial Offer and Initial Period Initial Offer is made during the Initial Period which will be 03 Business Day and begins at the start of the banking hours on 20 September 2021 and shall end at the close Published Date 13-Sep-2021
9. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document of banking hours on 22 September 2021. During the initial period, Units will be issued at Initial Price of Rs. 100 per unit and subsequently at the price calculated and announced by the Management Company for every Dealing Day. Units shall not be redeemable during the Initial Period of Offer. 2.10 Transaction in Units after Initial Offering Period Subsequently the Public Offering will be made at the Offer Price and redeemed at the Redemption Price. The Management Company will fix the Offer (Purchase) and Redemption (Repurchase) Prices for every Dealing Day on the basis of the Net Asset Value (NAV). The NAV based price shall be fixed after adjusting for the Sales Load as the case may be and any Transaction Costs that may be applicable. Except for circumstances elaborated in Clause 5.12.2 & 5.12.3 of this Offering Document, such prices shall be applicable to Purchase and Redemption requests, complete in all respects, received during the Business Hours on the Dealing Day. 2.11 Introduction to the Scheme “NIT Islamic Money Market Fund (NITIMMF)” is an open ended Shariah Compliant Money Market Scheme. The Fund has following features mentioned below: 1. NAV of the fund will be announced on every business day 2. Dividend on periodic basis (i.e. Daily, Weekly, Fortnightly, Monthly, Quarterly and Yearly) or any time during the year will be distributed to the unit holder(s) at the discretion of the Management Company. 3. Dividend would be distributed to unit holders appearing in the unit holder register within applicable cut-off time and date. 4. Dividend received by the unit holder shall be reinvested and no cash dividend will be distributed in case of daily, weekly and fortnightly payouts. 5. The Fund will work on Backward pricing method. 3. 3.1 INVESTMENT OBJECTIVES, INVESTMENT POLICY, RESTRICTIONS, RISK DISCLOSURE AND DISCLAIMER Investment Objective The objective of NIT Islamic Money Market Fund (NIT IMMF) is to provide competitive return by primarily investing in low risk and highly liquid Shariah Compliant Money Market & Debt Instruments. 3.2 Investment Policy NIT Islamic Money Market Fund (NIT IMMF) is an Open-ended Shariah Compliant Money Market Scheme which primarily invests in Shariah Compliant Authorized Investments. The Fund shall be subject to such exposure limits as are specified in the Rules, the Regulations and directives issued by SECP from time to time. 3.3 Authorized Investments The maximum and minimum weightage of the Fund at any time in the Authorized Investments shall be as follows: Published Date 13-Sep-2021
10. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document Description Secured, unsecured, Listed, Unlisted and privately placed Shariah Compliant money market securities including sukuks issued by Federal Govt., Provincial Govt., Local Govt., Govt. Agencies, Autonomous Bodies, public sector entities, and private sector entities. Shariah compliant Money market instruments such as Islamic TDR, Certificate of Islamic Investments (COII), Certificates of Musharaka (CoM), Islamic Certificates of Deposit (CoD), etc. with Islamic Commercial Banks and Islamic DFIs or Islamic windows of Commercial banks and DFIs. Cash and Cash equivalents: Shariah compliant Government Securities with maximum maturity of 90 days and cash with Islamic banks/Windows of Islamic Banks Shariah Compliant Placements of funds (including TDR, PLS Saving deposit, COD, COM, COI, Money Market Placements and other clean placements of the funds) with all microfinance banks, non-banking finance companies and Modarabas. Shariah compliant Islamic Commercial Paper Shariah Compliant Government Securities. Any other Shariah compliant investment which may be authorized by the Fund’s Shariah Advisors and SECP. Entity / Instruments Rating Maximum Exposure AA or above 90% 0% 6 Months AA 90% 0% 6 Months AA or above (Bank Deposits) 100% 10% N/A AAA 25% 0% 6 Months AA 20% 0% 6 Months Not rated 90% 0% 6 Months As Specified by SECP in the Approval 0% 6 Months AA Minimum Maximum Exposure Maturity Note: I. Investments shall be made as per the authorized investment limits given above and may include 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. II. Time to maturity of any asset shall not exceed 6 months and weighted average time to maturity of the Scheme shall not exceed 90 days. Published Date 13-Sep-2021
11. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document III. The Management Company shall at all times maintain at least 10% of net assets of the Funds in cash and GOP Ijara Sukuk not exceeding 90 days remaining time to maturity that can be readily converted into cash. IV. Rates of any NBFC and Modaraba with which funds are placed shall not be lower than AAA (Triple A); V. Rates of any Bank and DFI with which funds are placed shall not be lower than AA (Double AA); and VI. Rating of any security in the portfolio shall not be lower than AA. 3.4 Benchmark The three (3) months average deposit rates of three (3) AA rated Scheduled Islamic Banks or Islamic Banking windows of Conventional Banks as selected by MUFAP. 3.5 Shariah Investment Guidelines 3.6 • The Fund must at all times and all stages of its operation comply with Shari’ah principles. • The Fund must be raised, operated, and finally redeemed by the investor on the basis of the contracts which are acceptable in Shari’ah. The banking facilities and short-term money market instruments used for the Fund has to be those which comply with Shari’ah principles. Risk Control in the Investment Process The Management Company shall ensure that effective risk control measures are in place for protection of the investors. The objective of the risk control process is to monitor and measure the risks of Portfolio construction, diversification and holdings, risk concentrations and their contribution to the overall risk profile of the fund, with clear definitions of process and procedures. National Investment Trust’s investment team aims to identify securities following thorough analysis of securities proposed to be invested in. In addition to in-house equity research, inherent regulatory position /sector limits optimal diversification methods and liquidity screens will be employed to achieve the desired level of risk and return. 3.7 Management Company Can Alter Investment Mix The Management Company can, from time to time, alter the weightings, subject to the specified limits as per Clause 3.3 above, between the various types of investments, if it is of the view that market conditions so warrant. The Funds which are not invested in the above mentioned avenues shall be placed as deposit with scheduled Islamic banks/Islamic Windows of conventional banks. Published Date 13-Sep-2021
12. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document 3.8 Changes in Investment Policy The investment policy of Fund will be governed by the Shariah Advisor, Rules, Regulations and/or SECP directives. Any Fundamental change in the Investment Policy will be implemented only after obtaining prior approval from SECP and giving 30 days prior notice to the Unit Holders as specified in the Regulations. 3.9 Investment Restrictions (a) The Trust Property shall be subject to such exposure limits or other prohibitions as are provided in the Regulations, Trust Deed, this Offering Document of the Fund, circulars, Shariah Advisors Regulations, 2017 and Shariah Governance Regulations, 2018 and directives and shall also be subject to any exemptions that may be specifically given to the Fund by SECP and are explicitly mentioned under the heading Exceptions to Investment Restriction in this offering document or subsequently in writing. If and so long as the value of holding in a particular company or sector exceeds the limit imposed by the Regulations, the Management Company shall not purchase any further Investments in such company or sector. In the event Exposure limits are exceeded due to corporate actions including taking up rights or bonus issue and/or owing to appreciation or depreciation in value of any Investment, disposal of any Investment or Redemption of Units, the excess exposure shall be regularized in such manner and within such time as specified in the Regulations, circular or notification issued by SECP from time to time. (b) The Management Company, on behalf of the Fund, shall not enter into transactions with any broker that exceeds the limit provided in the Regulations and or circulars and notifications issued by the Commission from time to time. Transactions relating to money market instruments and debt securities do not fall under this clause. (c) The Management Company on behalf of the Scheme shall not: i. Make Investments in Shariah non-compliant instruments and against the guidelines of Shariah Advisor of the Fund. ii. Purchase or sell a. Bearer securities; b. Securities on margin; c. Real estate, commodities or commodity contracts; d. Securities which result in assumption of unlimited liability (actual or contingent); e. Anything other than Authorized Investments as defined herein; iii. Participate in a joint account with others in any transaction; iv. Affect a short sale in a security whether listed or unlisted; v. Purchase any security in a forward contract and future contract; vi. Purchase any security on margin; vii. Securities which result in assumption of unlimited liability (actual or contingent); Published Date 13-Sep-2021
13. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document viii. Issue a senior security which is either stock or represents indebtedness, without the prior written approval of the Commission. ix. Sell or issue Units for consideration other than cash unless permitted by the Commission on the basis of structure and investment policy of the Scheme. x. Merge with, acquire or take over any scheme, unless it has obtained the prior approval of the SECP in writing to the scheme of such merger, acquisition or take over. xi. Enter on behalf of the Scheme, into underwriting or sub-underwriting contracts. xii. Subscribe to an issue underwritten, co-underwritten or sub-underwritten by group companies of the Management Company. xiii. Pledge any of the securities held or beneficially owned by the Scheme except as allowed under the Regulations. xiv. Accept deposit. xv. Make a loan or advance money to any person from the assets of the Scheme xvi. Lend, assume, guarantee, endorse or otherwise become directly or contingently liable for or in connection with any obligation or indebtedness of any person as specified in regulations; xvii. Make any investment which will vest with the Management Company or its group the management or control of the affairs of the investee company; xviii. Apply for de-listing from the stock exchange unless it has obtained prior approval of the Commission in writing to the scheme of de-listing; xix. Invest in securities of the Management Company; xx. Rating of any Islamic Bank or Islamic window of scheduled commercial banks, & DFI with which Funds are placed shall not be lower than AA. xxi. Take exposure of more than 35% in a single Group and more than 10% of its net assets in listed group companies of Management companies and such exposure shall be taken through secondary market. xxii. The investment in single issue of Shariah compliant debt securities of a company shall not at any time, exceed an amount equal to 15% of total Net Assets of Scheme or 15% of that single issue, whichever is lower xxiii. Take exposure of more than 15% of net assets of Scheme to a single entity in case of placements with Banks, DFIs and NBFCs xxiv. Invest in MTS xxv. Take exposure in equities and other CIS Published Date 13-Sep-2021
14. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document xxvi. Securities which result in assumption of unlimited liability (actual or contingent); xxvii. Invest the subscription money until the closure of initial offering period (d) In case of redemptions requests are pending due to constraint of liquidity in the Fund, for more than the period as stipulated in the Regulations, the Management Company shall not make any fresh investment or rollover of any investment. (e) The Management Company on behalf of the Fund shall maintain minimum cash and near cash instruments subject to applicable Regulations, Circulars or Directives issued by the Commission. The present limit of the Fund is provided in clause 3.3 above 3.10 Exemption to Investment Restrictions In order to protect the right of the Unit Holders, the Management Company may take an Exposure in any Shari’ah compliant unauthorized investment due to recovery of any default proceeding of any counter party of any authorized investment with the approval of the Commission and Shariah advisor. 3.11 Shari’ah compliant Financing Arrangements (a) Subject to any statutory requirements for the time being in force and to the terms and conditions herein contained, the Management Company may arrange Islamic financing for account of the Scheme, with the approval of the Trustee, from Islamic Banks, Islamic Financial Institutions, or such other companies as specified by the Commission from time to time and approved by the Shariah Advisor. The financing, however, shall not be resorted to, except for meeting the redemption requests and shall be repayable within a period of ninety days and such financing shall not exceed fifteen (15) percent of the net Assets or such other limit and such other time frame as specified by the Commission of the scheme at the time of financing. (b) If subsequent to such financing, the Net Assets are reduced as a result of depreciation in the market value of the Trust Property or redemption of Units, the Management Company shall not be under any obligation to reduce such financing. (c) Neither the Trustee, nor the Management Company shall be required to issue any guarantee or provide security over their own assets for securing such financings from banks, financial institutions and non-banking finance companies. The Trustee or the Management Company shall not in any manner be liable in their personal capacities for repayment of such financings. (d) For the purposes of securing any such financing, the Trustee may on the instruction of the Management Company mortgage, charge or pledge in any manner all or any part of the Trust Property provided that the aggregate amount secured by such mortgage, charge or pledge shall not exceed the limits provided under the Regulations and/or any law for the time being in force. Published Date 13-Sep-2021
15. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document (e) Neither the Trustee nor the Management Company shall incur any liability by reason of any loss to the Trust or any loss that a Unit Holder(s) may suffer by reason of any depletion in the Net Asset Value that may result from any financing arrangement made hereunder in good faith. (f) Any liability or loss incurred due to negligence of AMC or the Trustee shall be borne by them. 3.12 Restriction of Transactions with Connected Persons (a) The Management Company in relation to the Scheme shall not invest in any security of a company if any director or officer of the Management Company owns more than five per cent of the total amount of securities issued, or, the directors and officers of the Management Company own more than ten per cent of those securities collectively subject to exemption provided in the Regulations. (b) The Management Company on behalf of the Scheme shall not without the approval of its Board of Directors in writing and consent of the Trustee, purchase or sell any security from or to any Connected Person or employee of the Management Company. (c) Provided that above shall not be applicable on sale or redemptions of Units. (d) For the purpose of sub-paragraphs (a) and (b) above the term director, officer and employee shall include spouse, lineal ascendants and descendants, brothers and sisters. (e) All transactions carried out by or on behalf of the Scheme with connected person(s) shall be made as provided in the Constitutive Documents, and shall be disclosed in the Scheme’s annual reports. 3.13 Risk Disclosure Investors must realize that all investments in mutual Funds and securities are subject to market risks. Our target return / dividend range cannot be guaranteed and it should be clearly understood that the portfolio of the Fund is subject to market price fluctuations and other risks inherent in all such investments. The risks emanate from various factors that include, but are not limited to: (1) Interest Rate Risk - A rise or decline in interest rates during the investment term may result in a change in return provided to the investors. (2) Government Regulation Risk - Government policies or regulations are more prevalent in some securities and financial instruments than in others. Funds that invest in such securities may be affected due to change in these regulations or policies, which directly or indirectly affect the structure of the security and/or in extreme cases a governmental or court order could restrain payment of capital, principal or income. Published Date 13-Sep-2021
16. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document (3) Credit Risk - Credit Risk comprises Default Risk and Credit Spread Risk. Each can have negative impact on the value of the income and money market instruments including Sukuks etc: • Default Risk - The risk that the issuer of the security will not be able to pay the obligation, either on time or at all; • Credit Spread Risk - The risk that there may be an increase in the difference between the return/markup rate of any issuer's security and the return/markup rate of a risk-free security. The difference between this return/mark up rates is called a "credit spread". Credit spreads are based on macroeconomic events in the domestic or global financial markets. An increase in credit spread will decrease the value of income and including money market instruments; (4) Price Risk - The price risk is defined as when the value of the Fund, due to its holdings in such securities rises and falls as a result of change in interest rates. (5) Liquidity Risk – Liquidity risk is the possibility of deterioration in the price of a security in the Fund when it is offered for sale in the secondary market. (6) Settlement Risk – At times, the Fund may encounter settlement risk in purchasing / investing and maturing / selling its investments which may affect the Fund’s performance etc. (7) Reinvestment Rate Risk: In a declining interest/ markup rate economic environment, there is a risk that maturing securities or coupon payments will be reinvested at lower rates, which shall reduce the return of the Fund compared to return earned in the preceding quarters. (8) Shariah non-compliance Risk– The risk associated with employing funds in investments that are not consistent with the guidelines of Shariah. (9) Events Risk - There may be adjustments to the performance of the Fund due to events including but not limited to, natural calamities, market disruptions, mergers, nationalization, insolvency and changes in tax law. (10) Redemption Risk - There may be special circumstances in which the redemption of Units may be suspended or the redemption payment may not occur within six working days of receiving a request for redemption from the investor. (11) Sovereign Risk - Payment of bonds/ notes may be effected by the economic and political events in the country of the relevant issuer. The occurrence of a sovereign risk event could result in the loss of all or a portion of the principal invested, as a result of any economic or political circumstance. (12) Distribution Risk - Dividend distribution may also be liable to tax because the distributions are made out of the profits earned by fund and not out of the profits earned by each unitholder. Unitholders who invest in a fund before distribution of dividends may be liable to pay tax even though they may not have earned any gain on their investment as return of capital to investors upon distribution is also taxable. Published Date 13-Sep-2021
17. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document 3.14 Disclosure There may be times when a portion of the investment portfolio of the Scheme is not compliant either with the investment policy or the minimum/maximum investment criteria of the assigned ‘category’. This non-compliance may be due to various reasons including, adverse market conditions, liquidity constraints or investment – specific issues. Investors are advised to study the latest Fund Manager Report specially portfolio composition and Financial Statements of the Scheme to determine what percentage of the assets of the Scheme, if any, is not in compliance with the minimum/maximum investment criteria of the assigned category. The latest monthly Fund Manager Report as per the format prescribed by Mutual Funds Association of Pakistan (MUFAP) and financial statements of the Scheme are available on the website of the Management Company and can be obtained by calling / writing to the Management Company. 3.15 Disclaimer The Units of the Trust are not bank deposits and are neither issued by, insured by, obligations of, nor otherwise supported by SECP, any Government agency, the Trustee (except to the extent specifically stated in this document and the Deed) or any of the shareholders of the Management Company or any other bank or financial institution. The portfolio of the Fund is subject to market risks and risks inherent in all such investments. Fund target return/ dividend range cannot be guaranteed. Fund’s unit price is neither guaranteed nor administered/ managed. It is based on the NAV that may go up or down depending upon the factors and forces affecting the capital markets and profit rates. 4. OPERATORS AND PRINCIPALS 4.1 Management Company 3.1.1 Organization National Investment Trust Limited (NITL) is a Non-Banking Finance Company licensed to undertake Asset Management Services as per the NBFC Rules. NITL has been awarded a Management Quality Rating of “AM1” from Pakistan Credit Rating Agency Limited (PACRA). NITL is currently managing Nine (09) mutual funds, two (2) Voluntary Pension Schemes and one (1) Exchange Traded Fund. Published Date 13-Sep-2021
18. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document Principle Shareholders Name of Shareholders Government of Pakistan Trustees of NIT Employees Empowerment Trust Industrial Development Bank of Pakistan Limited National Bank of Pakistan Adamjee Foundation MCB Bank Limited United Bank Limited Pakistan Reinsurance Company Limited Tajammal Foundation Habib Bank Limited Dawood Family 4.2 % Shareholding 7.67% 0.66% 16.66% 8.33% 8.33% 16.66% 8.33% 8.33% 8.33% 8.33% 8.33% Board of Directors and Management of the Management Company Name of Directors Mr. Adnan Afridi Mian Nusratud-Din Position Chairman & Managing Director National Investment Trust Ltd. Nominee Director of Tajammal Foundation Mr. Jamal Nasim Nominee Director of Industrial Development Bank Ltd. Mr. Iqbal Adamjee Nominee Director of Other Directorship 1. Bank Al-Habib Limited 2. Dynea Pakistan Ltd. 3. International Industries Limited 4. Habib Sugur Mills Limited 5. Lotte Chemicals Pakistan Limited 6. Mari Petroleum Company Limited 7. Bulk Transport Company (Pvt) Limited (Director) 8. The Kidney Centre Institute (Chairman Board of Governors) 9. SECP Policy Board Member 1. Chenab Textile Mills Limited 2. Polyfine Export Corporation 3. Rabbana Chemicals 4. Member Lahore Chamber of Commerce. 5. Member BoG Tajammal Foundation 1. Ellcot Spinning Mills Limited. 2. Saritow Spinning Mills Limited 3. Security Papers Limited 4. KSB Pumps Company Limited 5. Pioneer Cement Limited 1. Mainetti Pakistan (Pvt) Limited Address House No. 38, Street No. 20, Off: Khayaban-eMujahid, Defence Housing Authority, Phase-5, Karachi. House No. B. 17 Justice Sardar Iqbal Road Gulberg -V, Lahore. House #. D-230 Naval Housing Scheme, Phase -1, Site Karsaz, Karachi House No. 57/2, Street 15, off Khayaban-e- Published Date 13-Sep-2021
19. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document Adamjee Foundation Mr. Ahmad Aqeel Nominee Director of MCB Bank Limited Mr. Aftab Ahmad Khan Nominee Director of MCB Bank Limited Mr. Amir Mohyuddin Mr. Naeem Bashir Ahmad Mr. Farooq Ahmed Khan Ms. Asma Shaikh Nominee Director of Ministry of Finance, Government of Pakistan Nominee Director of Habib Bank Limited Nominee Director of United Bank Limited Nominee Director of National Bank of Pakistan 2. Trustee Adamjee Foundation 3. Trustee Child Life Foundation 1. Nishat Power Limited 2. Sui Northern Gas Pipelines Limited 3. A.A. Enterprise 4. Sheikh Fuels 5. Sheikh CNG 6. Adamjee Life Insurance 1. Nishat Papers Product Co. Limited 2. Nishat (Chunian) Limited 3. Nishat Chunian Power Limited 4. Nishat Hotels & Properties Limited (Un-Listed) 5. Nishat (Raiwind) Hotels & Properties Limited (UnListed) 6. Nishat (Aziz Avenue) Hotels and Properties Limited (Un-listed) 7. Nishat Energy Limited 8. LalpirSolar Power (Pvt) Limited 9. Nishat Hospitality (Pvt) Limited. 10. Security General Insurance Co. Limited 1. Chairman / Director SAARC Development Fund (SDF) Thimphu, Bhutan 2. Alternate Director at ECO Trade and Development Bank, Istanbul Turkey NIL NIL NIL Badban, Phase 6, DHA - Karachi 4-B, Nawazish Lane, Shabbir Road, Cantt. Lahore. House No. 11, Sector A I, Government Employees Cooperative Housing Society, PECO Road, Township, Lahore Flat No. 5, Block-8, Street. 4, SectorG10/3, Islamabad. 73/II, Khayaban-eRahat, Phase VI, DHA, Karachi Apartment No 203, Shireen Court, Clifton, Block -5, Karachi House No. 87/2, 14th lane, DHA, Phase 7, Karachi Published Date 13-Sep-2021
20. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document 4.2.1 Profile of Directors Mr. Adnan Afridi Mr. Adnan Afridi has been appointed by the Government of Pakistan as the Managing Director of NITL as of February 11, 2019. Mr. Afridi has 24 years’ international experience in Change Management, business transformation, innovation and profitability enhancement in blue chip companies, public sector and start-up situations. He has led a distinguished career in financial services and capital markets including serving as Managing Director of the Karachi Stock Exchange, CEO, Overseas Chamber of Commerce and Industry (OICCI), Chairman of National Clearing Corporation of Pakistan (NCCPL) and Board of Directors of Central Depository Company (CDC). Mr. Afridi has also served on multiple listed company boards including Silk Bank Limited and Gul Ahmed Textile Mills Limited. Currently, Mr. Afridi is a Member of the SECP Policy Board. Mr. Afridi has a degree in Economics (A.B, Magna Cum Laude, 1992) from Harvard University and a degree in Corporate Law (JD, Magna Cum Laude in 1995) from Harvard Law School. Mr. Afridi is an active supporter of charitable organizations. He has served as the President of the Old Grammarians Society & Trust and is currently Chairman of the Board of Governors of the Kidney Center. He is also a Member of YPO Pakistan since 2008. Mr. Iqbal Adamjee 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 Automotive 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. Jamal Nasim 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, 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. Amir Mohyuddin Mr. Amir Mohyuddin is a carrier Civil Servant of Government of Pakistan presently posted as Joint Secretary (External Finance Policy) in Finance Division looking after Pakistan’s External Financing needs and is also a focal person of the ministry in collaboration with the World Bank, IFC as well as financial relations with the different countries at bilateral levels. He has also served as Commercial Counselor at Pakistan High commission Kenya looking after Pakistan’s Commercial Interests in the East African Region. He has also served as Deputy Secretary to the Prime Minister of Pakistan during his carrier. Mr. Amir Mohyuddin is a Graduate of London School of Economics in the field of Environment and Development. He has attended various International Trainings/Courses Published Date 13-Sep-2021
21. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document which includes training in “Development Policies” at International Development Center of Japan Tokyo and Foreign direct Investment promotion from Singapore. He has represented Pakistan at various International Forums including United Nations Environment General Assembly I and II in Nairobi, UNISDR General Assembly in Geneva and Pakistan Russia Inter-Governmental Commission in Moscow. Mr. Amir is also currently Chairman of SAARC Development Fund (SDF) Thimphu, Bhutan and Alternate Director at ECO Trade and Development Bank, Istanbul, Turkey. Mian Nusrat-ud-Din Mian Nusrat-ud-Din is representing Tajammal Foundation on the Board of NITL. He is the Chairman, Chenab Group, which is engaged 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. Ahmad Aqeel Mr. Ahmad Aqeel is a business professional and a qualified lawyer with over 15 years of diverse experience in Oil & Gas, Petroleum, Power and Financial Sectors, with a longstanding record of serving as a Director on the Boards of Public Listed/Unlisted Companies. Currently serving as a Director on the Board of Sui Northern Gas Pipelines Limited (SNGPL), a Director on the Board of National Investment Trust Limited (NITL), an Independent Director on the Board of Nishat Power Limited (NPL) and a Director on the Board of Adamjee Life Assurance Company Ltd (AL). Credited with setting up & successfully managing retail business in collaboration with Total Parco Pakistan Limited for more than fifteen years. As Managing Partner founded & setup the private business venture with Total Parco the second largest Oil Marketing Company (OMC) in Pakistan. A Certified Director from Pakistan Institute of Corporate Governance (PICG) and enrolled at the database of the SECP as a Certified Independent Director. Attended various local and international workshops, skills training programs and seminars. A member of Lahore Chamber of Commerce & Industry and Lahore Gymkhana Club. Mr. Aftab Ahmad Khan He is a fellow member of the Institute of Chartered Accountants of Pakistan. His experience spans over half a century. He is expert in financial management, tax, audit, accounts and management affairs. He served three Public Sector Organizations including Punjab Ghee Board, Punjab Industrial Development Board, Rice Milling Corporation of Pakistan as General Manager Finance where he played the vital role of securing funds for new projects and imports, managing investments and overall supervision. After leaving the public sector and before joining Nishat Group, he held top management positions in two different groups of industries where he was responsible for overall supervision of the finance and accounting function. He joined Nishat Group in 1993 and has remained a part of it ever since. His vast experience, dedication to work and leadership has been important for the group. Currently, he is the CEO of Lalpir Solar Power (Private) Limited and Nishat Energy Limited. He also serves on the board of Nishat Paper Product Company Limited, Nishat (Chunian) Limited, Nishat Chunian Power Limited, Nishat Hotels and Properties Limited, Nishat (Aziz Avenue) Hotels & Properties Limited, Nishat (Gulberg) Hotels & Properties Limited, Nishat (Raiwind) Hotels & Properties Limited, MCB Islamic and MCB Financial Services Limited. He also remained Chairman of Lahore Stock Exchange and served on Board of MCB Bank Limited. Published Date 13-Sep-2021
22. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document Mr. Naeem Bashir Ahmad Mr. Naeem Bashir Ahmad is representing Habib Bank Limited on the Board of NITL. Mr. Naeem Bashir Ahmad is at present Head of Business Transformation at Habib Bank Limited and responsible for improving services by enhancing the way HBL is do business across multiple domains, including Governance, People, Processes, Technology and Data / MIS. Mr. Naeem Bashir Ahmad posses 30+ years of broad-based experience in commercial, consumer, transaction banking, consulting and manufacturing, He previously worked at United Bank Ltd and was responsible for all its business interests outside Pakistan. Prior to UBL, Mr. Naeem Bashir Ahmad worked at Alvarez and Marsal and headed up the firm’s Financial Services practice in Europe and the Middle East. Mr. Naeem Bashir Ahmad held various leadership positions across Asia and Europe and have worked on a large number of financial deals, including the merger and acquisition of a commercial bank. Including due diligence, carve-out and divestment of ABN AMRO’s retail banking chain in the Phillippines and participated in the acquisition of ABN AMRO by RBS. Mr. Farooq Ahmed Khan Farooq A. Khan holds an MBA from the John M. Olin School of Business, Washington University in St. Louis, USA. He presently heads the Corporate & Investment Banking Group at United Bank Limited, and over a 25 year career has worked with a number of banks including Faysal Bank, MCB Bank, KASB Bank and ECO Trade & Development Bank before returning to United Bank Ltd. where he had worked previously in the early 2000s. His area of expertise and strengths include developing and building corporate banking franchises, investment banking, trade finance and credit. Ms. Asma Shaikh Asma is a seasoned HR professional with almost 28 years of multi industry & multi-cultural experience in fast paced dynamic industries including Banking, Pharma, Petroleum, ECom and Logistics. At present she is Chief Human Recourse Officer of National Bank of Pakistan. She has more than 18 years of experience, as Head of Human Recourse, for organizations like Deutsche Bank, HSBC, Dubai Islamic Bank, Barclays Bank, NIB Bank and TCS. She has been an active partner in driving business transformation through building Talent Capability, Competence based Career Development Programs, fostering CBAManagement relations, building a Performance Driven Culture and developing Women Empowerment Initiatives at workplaces. Asma was an essential founder member of Dubai Islamic Bank by building the Bank’s people infrastructure from scratch. She was also an instrumental player in the performance turnaround at Barclays Bank Dubai and Africa through robust Performance Management and launch of Career Path Programs. Asma is a certified Executive Coach by International Coaching Federation (ICF) and also a certified Director from PICG. On a personal level, Asma aims to alleviate gender equality in the Pakistani workforce while providing tools and tips to young girls who want to build their careers. Published Date 13-Sep-2021
23. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document 4.2.2 Profile of the Management Mr. Adnan Afridi Mr. Adnan Afridi has been appointed by the Government of Pakistan as the Managing Director of NITL as of February 11, 2019. Mr. Afridi has 24 years’ international experience in Change Management, business transformation, innovation and profitability enhancement in blue chip companies, public sector and start-up situations. He has led a distinguished career in financial services and capital markets including serving as Managing Director of the Karachi Stock Exchange, CEO, Overseas Chamber of Commerce and Industry (OICCI), Chairman of National Clearing Corporation of Pakistan (NCCPL) and Board of Directors of Central Depository Company (CDC). Mr. Afridi has also served on multiple listed company boards including Silk Bank Limited and Gul Ahmed Textile Mills Limited. Currently, Mr. Afridi is a Member of the SECP Policy Board. Mr. Afridi has a degree in Economics (A.B, Magna Cum Laude, 1992) from Harvard University and a degree in Corporate Law (JD, Magna Cum Laude in 1995) from Harvard Law School. Mr. Afridi is an active supporter of charitable organizations. He has served as the President of the Old Grammarians Society & Trust and is currently Chairman of the Board of Governors of the Kidney Center. He is also a Member of YPO Pakistan since 2008. Mr. Manzoor Ahmed Mr. Manzoor Ahmed is Chief Operating Officer (COO) of National Investment Trust Limited (NIT). As COO, since 8 years, he has been successfully managing the operations and investment portfolio worth Rs.90bn approx. He has experience of over 29 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 also attended various training courses organized by locally and internationally reputed institutions like London Business School (LBS) UK, Institute of Directors, London and Financial Markets World, New York (USA). 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. Mr. Aamir Amin Aamir joined NIT in July 2006 as Controller Accounts and elevated to the position of Head of Finance in January 2008. Mr. Amin is a Chartered Accountant by profession from Institute of Chartered Accountants of Pakistan (ICAP) with training from Ernst & Young - Pakistan and also a Certified Information Systems Auditor (CISA). He has work experience of over 16 years, substantially in financial services industry. He also represents NIT as Nominee Director on various Boards. Published Date 13-Sep-2021
24. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document Mr. Asim Rafiq Asim Rafiq is NIT’s Head of Internal Audit and is responsible for the internal audit of all central functions as well as the twenty three branches of the company spread all over Pakistan. Mr. Rafiq also represents NIT as Nominee Director on the Boards of various listed companies. Prior to joining NIT in 2009 as Head of Internal Audit, Mr. Rafiq worked for Arif Habib Investments Management Limited as Senior Vice President- Head of Funds Accounting & Operations. Mr. Rafiq qualified as Chartered Accountant from the Institute of Chartered Accountants of Pakistan in 2004 with training from A.F. Ferguson & Co. (a member firm of PWC network). Mr. Abdul Rashid Mr. Abdul Rashid is Company Secretary and Head of Legal Affairs Department of NITL. He has over 30 years of experience with Corporate Affairs, Corporate Governance, Marketing and Legal Affairs Departments. He holds a Bachelor’s Degree in Law and a Master’s Degree in Economics from the University of Karachi. He is also a qualified DAIBP from the Institute of Bankers Pakistan. 4.3 Funds Under the Management of National Investment Trust Limited Existing Schemes under Management and their performance a) National Investment (Unit) Trust (NI(U)T) National Investment (Unit) Trust is the oldest & the largest Mutual Fund in Pakistan with assets under management of Rs. 61.12 billion as on 31st March, 2021. 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 12th November 1962, and was amended vide Supplemental Trust Deeds dated 26th June 1968, 7th June 1981, 27th November 1998, 12th November 2002, 31st December 2003, 18th January 2007, 1st April 2014 and 3rd September 2014. The functions of the Fund are governed by the Trust Deed and National Investment (Unit) Trust Ordinance, 1965. Presently CDC is the Trustee of NI(U)T Fund. NI(U)T remains the oldest and the largest fund in Pakistan, which also maintains an impeccable dividend payout track record. It has consistently paid a dividend since its inception. NI(U)T Fund Characteristics Launch Date 12th November 1962 Nature Open End Category Equity Scheme Fund Size (31/03/21) Rs. 61.12 Billion NAV (per unit) Rs. 70.87 Par Value Rs. 10 Benchmark KSE-100 Published Date 13-Sep-2021
25. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document NI(U)T Performance FY13 NI(U)T Return (%) 58.42% KSE 100 Index Return (%) 52.20% Dividend Per Unit (Rs.) 3.75 Net Assets at YE (Rs. in 70.777 billion) NAV at YE (Rs.) 73.85 FY14 56.98% 41.16% 4.1 FY15 20.25% 16.01% 4.25 FY16 9.59% 9.84% 4.5 FY17 35.44% 23.24% 4.5 FY18 -11.81% -10.00% 2.33 59.9 70.855 66.8 81.7 70.77 60.69 63.75 65.15 83.74 73.85 FY19 -23.94% -19.11% 1.55 51.9 FY20 6.38% 1.53% 1.29 50.3 54.40 56.22 b) NIT State Enterprise Fund (NIT-SEF) 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 24th October 2008. The fund was established in 2008 to provide support to the equity markets at the time of a systemic crisis. 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 Enterprise Fund under the management of NITL for the specific purpose of buying stocks of eight companies in which the GoP has a sizeable shareholding. The fund through strategic buying was also able to provide necessary liquidity to the market. NIT State Enterprise Fund launched its operations on 13th January 2009. NIT-SEF Characteristics Launch Date 13th January 2009 Nature Category Equity Scheme Fund Size (31/03/21) Rs. 1.49 Billion NAV (per unit) Rs.9.93 Par Value Rs. 50 Benchmark KSE-100 NIT-SEF Performance FY13 FY14 FY15 FY16 FY17 NIT-SEF Return (%) 40.90% 27.17% -10.61% -14.88% 56.04% FY18 -4.68% FY19 -22.20% -17.39% KSE 100 Index Return (%) 52.20% 41.16% 16.01% 9.84% 23.24% -10.00% -19.11% Bonus (%) / Rs. per unit 1.0 2.75 1.0 0.46 12.92% 240.0% 4.0 Net Assets at YE (Rs. in 17.69 billion) 6.508 2.569 2.034 2.76 2.63 1.93 NAV at YE (Rs.) 143.5 17.08 13.53 18.39 17.53 12.86 119.2 FY20 1.53% 0.16 1.54 10.26 c) NIT Equity Market Opportunity Fund (NIT-EMOF) 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. NIT-EMOF was established to support the equity market at a time of a market crisis, which also provided an opportunity to invest in fundamentally sound investments at a bargain. The primary objective of NIT-EMOF is to accrue incremental returns by tapping any mispricing opportunities that may emerge out of systemic risks. Published Date 13-Sep-2021
26. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document NIT-EMOF Characteristics Launch Date 25thJuly 2008 Nature Open End Category Equity Scheme Fund Size (31/03/21) Rs. 8.0 Billion NAV (per unit) Rs. 205.18 Par Value Rs. 100 Benchmark KSE-100 FY14 FY15 FY16 FY17 FY18 FY19 FY20 NIT-EMOF Performance FY13 NIT-EMOF Return (%) 41.85% 32.09% 13.12% 8.44% 27.16% -15.21% -25.27% 4.64% KSE 100 Index Return (%) 52.20% 41.16% 16.01% 9.84% 23.24% -10.00% -19.11% 1.53% Bonus (Rs/unit) 20.0 20.0 7.5 12.5 12.5 10.0 4.96 Net Assets at YE (Rs. in 7.555 billion) 7.885 8.225 8.414 10.2 8.65 6.17 NAV at YE (Rs.) 212.24 209.94 214.77 260.6 220.96 180.68 4.21 6.25 157.65 159.74 d) NIT Government Bond Fund (NIT-GBF) NITL, in its efforts to provide a wide range of services to cater to the needs of different classes of investors, launched the NIT Government Bond Fund to enable its investors to take exposure in fixed income instruments issued by the sovereign. NIT-GBF is an open end Income Fund investing primarily in short term as well as long term Government Securities, while ensuring that the maximum weighted average time to maturity does not exceed 7.5 years. NIT GBF is a medium risk sovereign income fund primarily invest in Government Securities (70% or above) while the remaining is in the form of between cash and near cash instruments etc. NIT-GBF Fund Characteristics 18thNovember 2009 Open End Launch Date Nature Category Fund (31/03/21) Income Fund Size Rs. 3.4 Billion NAV (per unit) Rs. 10.1148 Par Value Rs. 10 Benchmark Average of 6M PKRV Published Date 13-Sep-2021
27. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document NIT-GBF Performance FY13 FY14 FY15 NIT-GBF Return (%) 9.93% 7.64% Benchmark 8.80% Dividend Per Unit (Rs.) 0.8803 Net Assets at YE (Rs. in 4.8 billion) NAV at YE (Rs.) FY16 FY17 FY18 FY19 13.86% 5.78% 5.28% 5.06% 8.01% 16.04% 8.80% 8.17% 5.78% 5.80% 6.20% 10.0% 12.07% 0.75 1.38 0.75 0.52 0.5348 0.8845 1.6180 4.2 4.86 4.09 3.76 4.04 3.54 FY20 4.35 10.9636 10.8539 10.1222 9.9569 9.9623 10.4665 10.727711.4259 e) NIT Income Fund (NIT-IF) NIT Income Fund was established to expand NITL‟s product portfolio, and to facilitate investors seeking fixed income investment avenues. The fund invests across all major fixed income instruments, including Government Bonds, Treasury Bills, TFCs, Commercial Paper, etc. NIT-IF is exposed to interest rate risk as well as credit risk, given its exposure to corporate debt. NIT-IF Fund Characteristics Launch Date Nature 19th February, 2010 Open End Category Income Fund Fund Size (31/03/21) Rs. 3.60 Billion NAV (per unit) Rs. 10.5316 Par Value Benchmark Rs. 10 6-mth KIBOR NIT-IF Performance FY13 FY14 FY15 NIT-IF Return (%) 9.56% 7.06% Benchmark 9.92% Dividend Per Unit (Rs.) 1.059 Net Assets at YE (Rs. in 3.8 billion) NAV at YE (Rs.) FY16 FY17 FY18 FY19 14.09% 5.87% 5.37% 5.22% 7.25% 12.58% 9.82% 9.01% 6.53% 6.10% 6.35% 10.21% 12.22% 0.72 1.21 0.76 0.55 0.5746 0.9025 1.2963 3.3 3.67 4.13 3.9 5.57 4.13 FY20 3.76 11.2743 10.937 10.4448 10.2973 10.2998 10.8371 11.0065 11.3788 f) NIT Islamic Equity Fund (NIT-IEF) NIT-IEF IS a Shariah compliant open-ended equity fund which caters to the needs of investors who prefer Shariah compliant investment avenues. The fund aims to achieve this under the guidance of a Shariah Advisor. The fund was launched in May-15, and was able to raise Rs. 3.9 billion during the IPO period. Published Date 13-Sep-2021
28. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document NIT-IEF Characteristics Launch Date 18th May, 2015 Nature Open End Category Shariah Compliant Equity Fund Size (31/03/21) Rs. 3.2 Billion NAV (per unit) Rs. 9.22 Par Value Rs. 10 Benchmark KMI-30 Index FY17 FY18 FY19 FY20 NIT-IEF Performance FY13 FY14 FY15 FY16 NIT-IEF Return (%) - - 2.70% 5.78% KMI-30 Index Return (%) - - 6.56% Dividend Per Unit (Rs.) Net Assets at YE (Rs. in billion) NAV at YE (Rs.) - - - 18.38% -16.37% -25.43% 2.78% 15.53% 18.80% -9.59% -23.84 1.62% 0.14 0.42 0.5 0.19 - 4.364 4.78 4.65 4.13 3.04 - 10.27 10.43 11.85 9.91 7.39 2.9 7.40 g) NIT Islamic Income Fund (NIT-IIF) NIT Islamic Income Fund (NIT-IIF) is an open-end Islamic Income Fund which invests in Shariah Compliant instruments. Ideally to cater the requirement of those investors, who wish to earn Riba free Halal returns. NIT-IIF Characteristics Launch Date Nature Category Fund Size (31/03/21) NAV (per unit) Par Value 04th July 2016 Open End Shariah Compliant Income Rs. 1.11 Billion Rs. 9.9842 Rs. 10 Six (6) months average deposit rates of three (3) A rated scheduled Islamic Banks or Islamic windows of Conventional Banks as selected by MUFAP Benchmark NIT- IIF Performance FY13 FY14 FY15 FY16 FY17 FY18 FY19 NIT-IIF Return (%) - - - - 4.61% 4.41% 8.17% 10.44% Benchmark - - - - 3.11% 2.44% 3.69% Dividend Per Unit (Rs.) - - - - 0.43 0.5810 0.9122 1.2481 Net Assets at YE (Rs. in billion) - - - 0.44 0.54 NAV at YE (Rs.) - - - 10.0259 10.4679 10.6947 10.8069 - 0.65 FY20 6.33% 0.99 Published Date 13-Sep-2021
29. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document h) NIT Money Market Fund (NIT-MMF) It is an open end Money Market Fund, investing primarily in short-term Government securities, Bank Placements and any other Money Market Instrument with maximum weighted average time to maturity not exceeding 90 days. NIT-MMF (formerly NIT-GTF) is a low risk money market fund. NIT-MMF Characteristics Launch Date 22nd January 2016 Nature Open End Category Money Market Fund Size Rs. 11.18 Billion (31/03/21) NAV (per unit) Rs. 9.7466 Par Value Rs. 10 Benchmark 70% three (3) months PKRV rates + 30% three (3) months average deposit rate of three (3) AA rated scheduled Banks as selected by MUFAP NIT- MMF Performance FY13 NIT-MMF Return (%) Benchmark Dividend Per Unit (Rs.) Net Assets at YE (Rs. in billion) NAV at YE (Rs.) - FY14 FY15 FY16 FY17 FY18 FY19 FY20 - - 5.03% 5.56% 0.2 4.95% 5.27% 0.47 5.18% 5.36% 0.669 - - 0.87 0.98 1.32 - - 10.0216 10.0469 10.5675 10.7758 9.6920 8.87% 12.51% 8.73% 11.64% 0.9974 1.2474 3.48 4.82 i) 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, 2005. The Pension Fund 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”) iii. NIT-PF Money Market Sub-Fund (the “Money Market Sub-Fund”) and iv. NIT-PF Commodities Sub-Fund (the “Commodities Sub-Fund”) NIT- PF Performance FY13 Equity Sub Fund Return (%) Debt Sub Fund Return (%) Money Market Sub Fund Return (%) Commodity Sub Fund Return (%) Net Assets at YE (Rs. in billion) - FY14 - FY15 - FY16 1.22% 3.90% FY17 FY18 19.04% -16.11% 4.48% 4.96% - - 3.87% 4.17% - - 10.05% -1.70% 0.32 0.35 FY19 -18.99% 8.58% 4.94% 8.59% 4.88% 0.36 12.56% 0.38 FY20 -0.36% 23.26% 12.30% 26.19% 0.44 Published Date 13-Sep-2021
30. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document NIT Islamic Pension Fund (NIT-IPF) NIT Islamic Pension Fund is established in Pakistan as a Voluntary Pension Fund through a Trust Deed, dated May 14, 2015 on the basis of Wakalah tul Istismar (Investment Agency Agreement), 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, 2005. j) The Pension Fund consist of three (3) Sub-Funds to be called i. NIT-IPF Equity Sub-Fund (the “Equity Sub-Fund”) ii. NIT-IPF Debt Sub-Fund (the “Debt Sub-Fund”) iii. NIT-IPF Money Market Sub-Fund (the “Money Market Sub-Fund”) FY19 FY20 19.51% -22.91% 5.20% 4.59% 3.24% 7.14% 7.66% 2.79% 3.52% 3.72% 7.26% 9.09% 0.30 0.36 0.35 0.33 0.36 NIT- IPF Performance FY13 FY14 FY15 FY16 FY17 FY18 Equity Sub Fund Return (%) - - - 6.67% 24.07% Debt Sub Fund Return (%) - - - 3.06% Money Market Sub Fund Return (%)- - - Net Assets at YE (Rs. in billion) - - - NIT Asset Allocation Fund (NIT-AAF) NIT-AAF IS an open-ended equity fund which provide risk adjusted competitive returns to its investors by investing in multiple assets classes based on market outlook. The fund was launched on April 09-2020. k) NIT-AAF Characteristics Launch Date Nature Category Fund Size (31/03/21) NAV (per unit) Par Value Benchmark 09th April, 2020 Open End Asset Allocation Rs. 0.65 Billion Rs. 11.5776 Rs. 10 Weighted average daily return of KSE 100 index and six (6) month KIBOR and 70% three (3) months PKRV rates + 30% three (3) months average deposit rate of three (3) AA rated scheduled banks as selected by MUFAP, based on the fund’s actual allocation in equity, income and money market categories NIT-AAF Performance FY20 NIT-AAF Return (%) 2.12% Benchmark Return (%) 3.09% Dividend Per Unit (Rs.) 0.2005 Net Assets at YE (Rs. in billion) NAV at YE (Rs.) 0.52 10.2119 Published Date 13-Sep-2021
31. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document l) NIT Pakistan Gateway Exchange Traded Fund (NIT-PGETF) NIT Pakistan Gateway ETF was established under a Trust Deed signed between National Investment Trust Limited as the Management Company and Central Depository Company of Pakistan Limited as Trustee. NIT Pakistan Gateway ETF is an Exchange Traded Fund which aims to track the NIT Pakistan Gateway Index. NIT Pakistan Gateway ETF includes the largest stocks forming part of the KSE-100 index so as to cover at least 50% of the total market capitalization of the KSE-100 index at all times. NIT-PGETF Characteristics Launch Date 24th March, 2020 Nature Open End Category Exchange Traded Fund Fund Size (31/03/21) Rs. 0.051 Billion NAV (per unit) Rs. 11.9112 Par Value Rs. 10 Benchmark NIT Pakistan Gateway Index NIT-PGETF Performance FY20 NIT-PGETF Return (%) 7.21% Benchmark Return (%) 8.76% Dividend Per Unit (Rs.) - Net Assets at YE (Rs. in billion) NAV at YE (Rs.) 4.4 0.050 10.3339 Role and Responsibilities of the Management Company The Management Company shall manage, operate and administer the Scheme in accordance with the Rules, Regulations directives, circulars and guidelines issued by SECP, Shariah Advisor and this Deed and the Offering Document. The Fund is based on the Shariah principals of “Wakala” tul Istismar” (Investment Agency), in which the Management Company shall manage, operate and administer the Scheme and Fund Property in the interest of the Principal (Unit Holders) in good faith, and to the best of its ability. 4.4.1 Administration of the Scheme The Management Company shall administer the Scheme in accordance with the Rules, the Regulations, the Deed and this Offering Document, directives of the Shariah Advisor and the conditions (if any), which may be imposed by the Commission from time to time. 4.4.2 Management of Fund Property The Management Company shall manage the Fund Property in a manner that ensures Shariah compliance and good faith in the interest of the Unit Holders, to the best of its ability and without gaining any undue advantage for itself or any of its Connected Persons and group companies or its officers, and subject to the restrictions and limitations as provided in the Deed and the Rules and Regulations. Any purchase or sale of investments made under any of the provisions of the Deed shall be made by the Trustee according to the instructions of the Management Published Date 13-Sep-2021
32. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document Company in this respect, unless such instructions are in conflict with the provisions of the Deed or the Rules and Regulations. The Management Company shall not be liable for any loss caused to the Trust or to the value of the Fund Property due to elements or circumstances beyond its reasonable control. The Management Company shall comply with the provisions of the Regulations, the Deed and this Offering Document of the Scheme for any act or matter to be done by it in the performance of its duties and such acts or matters may also be performed on behalf of the Management Company by any officer(s) or responsible official(s) of the Management Company or by any nominee or agent appointed by the Management Company and any act or matter so performed shall be deemed for all the purposes of the Deed to be the act of the Management Company. The Management Company shall be responsible for the acts and omissions of all persons to whom it may delegate any of its functions, as if these were its own acts and omissions and shall account to the Trustee for any loss in value of the Trust Property where such loss has been caused by willful act and / or omission of its officers, officials or agents. 4.4.3 Appointment of Distributors The Management Company, may from time to time under intimation to the Trustee appoint, remove or replace one or more suitable persons, entities or parties as Distributor(s) for carrying on Distribution Function(s) at one or more location(s) locally or internationally. The Management Company may also itself act as a Distributor for carrying on Distribution Functions and updated list of distributors would be available on official website of the Management Company. The Management Company shall ensure, where it delegates the Distribution Function, that: a) Distributors to whom it delegates, have acquired license from SECP as a securities adviser under Securities and Futures Advisers (Licensing and Operations) Regulations, 2017; and b) the written contract with the Distributors clearly states the terms and conditions for avoidance of frauds and sales based upon misleading information. c) The Management Company and Distributor shall not: i. involve either directly or indirectly in the mis-selling of Collective Investment Scheme; ii. sell units of Collective Investment Scheme directly or indirectly by making a false and mis-leading statement, concealing or omitting material facts of the Scheme and concealing the risk factors associated with the Scheme; d) The Management Company or distributor shall take reasonable care to ensure suitability of the scheme to the investor. e) The Management Company or distributor shall ensure that; i. any performance reporting/ presentation is accompanied by all explanations, qualifications, limitations and other statements that are Published Date 13-Sep-2021
33. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document ii. iii. 4.4.4 necessary to prevent such information from misleading investors; promotional materials do not contain untrue statements or omit to state facts that are necessary in order to prevent the statements from being misleading, false or deceptive; performance is measured and presented after taking into account the risk tolerance, investment objectives, level of understanding and knowledge of the recipient. Appointment of Investment Facilitator The Management Company may, at its own responsibility & cost, from time to time appoint Investment Facilitators to assist it in promoting sales of Units. An update list of investment facilitators appointed by the Management Company shall be made available at all times on the websites of the Management Company. The Management Company shall ensure, where it appoints the investment facilitator, that: a. the investment facilitator has acquired registration with the Mutual Funds Association of Pakistan (MUFAP) as registered service providers and are abiding by the code of conduct prescribed by the Association; and b. the written contract with the Investment facilitator clearly states the terms and conditions for avoidance of frauds and sales based upon misleading information 4.4.5 Maintenance of Accounts and Records The Management Company shall maintain at its principal office, complete and proper accounts and records to enable a complete and accurate view to be formed of the assets & liabilities and the income & expenditure of the Scheme, all transactions for the account of the Scheme, amounts received by the Scheme in respect of issue of Units, payments made from the Scheme on redemption of the Units and by way of distributions and payments made at the termination of the Scheme. The Management Company shall maintain the books of accounts and other records of the Scheme for a period of not less than ten years. The Management Company shall ensure that no entry and exit from the Scheme (including redemption and re-issuance of Units to the same Unit Holders on different NAVs) shall be allowed other than the following manners, unless permitted otherwise by the Commission under the Regulations: (a) cash settled transaction based on the formal issuance and redemption requests (b) net off issuance and redemption transaction at same net asset value when redemption request is ready to disburse and rank at the top in the list of pending redemption requests (if any). The Management Company shall clearly specify Cut-Off Timings (for acceptance of application forms of issuance, redemption, and conversion of Units of the Scheme) in this Offering Document, on its web site and at designated points. Such Cut-Off Timing shall uniformly apply on all Unit Holders. Published Date 13-Sep-2021
34. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document 4.5 Maintenance of Unit Holders Register A Register of Unit Holders may be maintained by the Management Company itself or such other company, as the Management Company may appoint after giving prior notice to the Unit Holders. 4.5.1 The office of the Transfer Agent is located at: National Investment Trust Limited, 6th Floor, National Bank of Pakistan Building, I.I. Chundrigar Road, Karachi where Register of Unit Holder will be maintained. 4.5.2 Every Unit Holder will have a separate Registration Number. The Management Company shall use such Registration Number for recording Units held by the Unit Holder. Unit Holder’s account identified by the registration number will reflect all the transactions in that account held by such Unit Holder. 4.6 Disclaimer The Management Company shall not be under any liability except such liability as may be expressly assumed by it under the Rules, Regulations and the Constitutive Documents, nor shall the Management Company (save as herein otherwise provided) be liable for any act or omission of the Trustee nor for anything except for its own gross negligence or willful breach of duty and the acts and omissions of all persons to whom it may delegate any of its functions as manager as if they were its own acts and omissions. If for any reason it becomes impossible or impracticable to carry out the provisions of the Constitutive Documents, the Management Company shall not be under any liability therefore or thereby and it shall not incur any liability by reason of any error of law or any matter or thing done or suffered or omitted to be done in good faith hereunder. 4.7 Role of the Trustee The trustee shall perform its role as specified in the Rules, Regulation and directives issued there under, this Deed and the Offering Document. • • The Trustee shall exercise all due diligence and vigilance in carrying out its duties and in protecting the interests of the Unit Holder(s). The Trustee shall not be under any liability on account of anything done or suffered by the Trust, if the Trustee had acted in good faith in performance of its duties under this Trust Deed or in accordance with or pursuant to any request of the Management Company provided it is not in conflict with the provisions of this Trust Deed or the Rules and Regulations. Whenever pursuant to any provision of this Trust Deed, any instruction, certificate, notice, direction or other communication is required to be given by the Management Company, the Trustee may accept as sufficient evidence thereof: o a document signed or purporting to be signed on behalf of the Management Company by any authorized representative(s) whose signature the Trustee is for the time being authorized in writing by the Management Committee to accept; and Published Date 13-Sep-2021
35. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document o any Instructions received online through the software solution adopted by the Management Company/Trustee in consultation with each other shall be deemed to be instructions from the authorized representative(s) • The Trustee shall not be liable for any loss caused to the Fund or to the value of the Trust Property due to any elements or circumstances of Force Majeure • In the event of any loss caused due to any gross negligence or willful act and/or omission, the Trustee shall have an obligation to replace the lost investment forthwith with similar investment of the same class and issue together with all rights and privileges pertaining thereto or compensate the Trust to the extent of such loss. However the trustee shall not be under any liability thereof or thereby and it shall not incur any liability by reason of any error of law or any matter or thing done or suffered or omitted to be done in good faith hereunder. 4.7.1 Obligations under Regulations and Constitutive Document The Trustee shall perform all the obligations entrusted to it under the Regulations, circulars, directives, the Deed and this Offering Document and discharge all its duties in accordance with the Rules, Regulations, the Trust Deed and this Offering Document. Such duties may also be performed on behalf of the Trustee by any officer or responsible official of the Trustee or by any nominee or agent appointed by the Trustee under intimation to the Management Company. Provided that the Trustee shall be responsible for the willful acts and omissions of all persons to whom it may delegate any of its duties, as if these were its own acts and omissions and shall account to the Trust for any loss in value of the Fund Property where such loss has been caused by negligence or any reckless willful act or omission of the Trustee or any of its attorney(ies), or agents. 4.7.2 Custody of Assets The Trustee has the responsibility for being the nominal owner and for the safe custody of the assets of the Fund on behalf of the beneficial owners (the Unit Holders), within the framework of the Regulations, the Trust Deed and Offering Document issued for the Fund. 4.7.3 Investment of Fund Property at direction of Management Company The Trustee shall invest the Fund Property from time to time at the direction of the Management Company strictly in terms of the provisions contained and the conditions stipulated in the Deed, this Offering Document(s), the Regulations, circulars, directives and the conditions (if any) which may be imposed by the Commission from time to time. 4.7.4 Carrying out instructions of the Management Company The Trustee shall carry out the instructions of the Management Company in all matters including investment and disposition of the Fund Property unless such instructions are in conflict with the provisions of the Deed, this Offering Document(s), the Regulations, the Circulars and Directives of SECP or any other applicable law. 4.7.5 Liabilities of the Trustee The Trustee shall not be under any liability except such liability as may be expressly assumed by it under the Rules, the Regulations and/or the Deed, nor shall the Trustee (save as herein otherwise provided) be liable for any act or omission of the Published Date 13-Sep-2021
36. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document Management Company or for anything except for loss caused due to its willful acts or omissions or that of its agents in relation to any custody of assets of investments forming part of the Fund Property. If for any reason it becomes impossible or impracticable to carry out the provisions of the Deed the Trustee shall not be under any liability therefore or thereby and it shall not incur any liability by reason of any error of law or any matter or thing done or suffered or omitted, to be done in good faith hereunder. The Trustee shall not be liable for any loss caused to the Trust or to the value of the Fund Property due to any elements or circumstances beyond its reasonable control. 4.7.6 Disclaimer The Trustee shall not be under any liability except such liability as may be expressly assumed by it under the Rules and Regulations and the Deed nor shall the Trustee be liable for any act or omission of the Management Company nor for anything except for loss caused due to its willful acts or omissions or that of its agents in relation to any custody of assets of investments forming part of the Trust Property. If for any reason it becomes impossible or impracticable to carry out the provisions of the Deed the Trustee shall not be under any liability therefore or thereby and it shall not incur any liability by reason of any error of law or any matter or thing done or suffered or omitted to be done in good faith hereunder. 4.8 Shariah Advisor Management Company, has appointed Mufti Zeeshan Abdul Aziz as the Shari’ah Advisor for the Fund. Mufti Zeeshan Abdul Aziz is a recognized Shariah Scholar and researcher having strong comprehension of all aspects of Islamic Law and a specialization in Islamic Jurisprudence and Islamic Finance. He has graduated from Jamia Dar Ul Uloom Karachi, Pakistan, having done Takhassus Fil Ifta (Specialization in Islamic Jurisprudence), and majoring in Islamic Banking & Finance and Halal Foods. He is serving as the Shariah Advisor of NIT‟s Islamic Funds since commencement and looks after their policies, Trust Deeds, Offering Documents, manuals, investments, Shariah screening, reviewing & approval of Investments of Islamic funds, and all other Shariah related aspects. Mufti Zeeshan is also involved in delivering detailed trainings to the management and work force of NIT on Islamic Mutual Funds, its Shariah and technical aspects. He has been associated with several Islamic financial institutions and Halal Certification bodies within Pakistan and abroad. Mufti Zeeshan is also a Member of the Shariah Board of Sindh Bank-Islamic Banking Division, Shariah Advisor of Jubilee General & Family Takaful and Shariah Review Bureau, Bahrain and has been frequently debating and speaking on Shariah & technical aspects related to Islamic Finance, nationally and internationally as well. Mufti Zeeshan has been associated with various Halal Certification bodies of several countries and has performed Halal Certification audits of different foods, beverages, cosmetics and pharmaceutical industries in different parts of the world. Published Date 13-Sep-2021
37. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document 4.8.1 Duties and Responsibilities of Shariah Advisor The Shariah Advisor shall advise the Management Company on matters relating to Shariah compliance and recommend general investment guidelines consistent with Shariah and regulations issued by the Commission. Any verdict issued by the Shariah Advisor in respect of any Shariah related matter would be final and acceptable to the Trustee, the Management Company, the Unit Holders and other parties. In case of any dispute between the Shariah Advisor and the management, the matter shall be referred to the Commission”, which may refer it to any relevant forum including the Shariah Committee of the Commission in accordance with regulation 17 of Shariah Advisors Regulations 2017. The Shariah Advisor shall do the research as appropriate on the criteria followed by Islamic Unit Trusts all over the world for the purpose of screening of investments. The Shariah Advisor will then decide as to which screening criteria are relevant to be used in the context of Pakistan’s capital markets and the instruments available therein, and which need to be modified/added/deleted. The Shariah Advisor shall provide technical guidance and support on various aspects of Shariah, so as to enable the Management Company to ensure the Fund is Shari’ah Compliant. The Shariah Advisor has certified that Investment Policy of the Trust is compliant with the requirements of Shari’ah. However, in case there is a requirement for any amendment, based on future research for purposes of increasing the Shariah acceptability of the Investment Policy, permission for necessary amendments of the Deed may be sought from the Commission. The Shari’ah Advisor shall determine an appropriate percentage of income and cash flows included in the income and cash flow of the companies in which the Unit Trust has invested from activities not in accordance with the principles of the Shari’ah, and will recommend to the Management Company the criteria for selecting the charities to whom such sums shall be donated, subject to the condition that such approved charitable organization is not related to the Shari’ah Adviser, Management Company or any of their employees. At the end of each Annual Accounting Period or such other interval as the Commission may require, the Shari’ah Advisor shall issue a Shari’ah compliance certificate, to the effect that all the business activities, investments and operations of the preceding year’s or past operations of the Fund are in conformity with principles of Shariah. This report shall be included in the Annual reports or such other required reports of the Fund. 4.9 Transfer Agent The Management Company will perform duties as the Transfer Agent of the Fund until any further notice and intimation to the Trustee. The Management Company will be responsible for maintaining the Unit Holder’s Register, preparing and issuing account statements, Unit Certificates and dividend warrants/advice and providing related services to the Unit Holders. Published Date 13-Sep-2021
38. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document 4.10 Custodian Central Depository Company of Pakistan Limited, having its office at “CDC House, 99-B, S.M.C.H.S., Main Shahrah-e-Faisal, Karachi”, will also be performing the functions of the custodian of the Trust Property. The salient features of the custodial function are: (a) Segregating all property of the Fund from Custodian’s own property and that of its other clients. (b) Assuring the smooth inflow/outflow of dematerialized securities and such other instruments as required. (c) Ensuring that the benefits due on investments are received and credited to the Fund’s account. The Trustee may, in consultation with the Management Company, from time to time, appoint, remove or replace one or more Custodian(s) for performing the Custodian Function at one or more locations, on terms and conditions to be agreed between the Custodian and the Trustee and agreed by the Management Company for the safe keeping of any portion of the Trust Property. 4.11 Distributors/Facilitators 4.11.1 Parties detailed in Annexure C of this Offering Document have each been appointed as Distributors to perform the Distribution Functions at their Authorized Branches. The addresses of these branches are given in Annexure C of this Offering Document. These branches may be increased or decreased by the Management Company from time to time. The Management Company may, from time to time, appoint additional Distributors (if they fulfill the requirement of regulations) or terminate the arrangement with any Distributor and intimate the Trustee and the Commission accordingly. The Management Company may itself perform the functions of a Distributor either directly or through sub-distributors. 4.11.2 The Distributors will be responsible for receiving applications for Purchase, Redemption, Conversion or Transfer of Units etc. They will be interfacing with and providing services to Unit Holders, including receiving applications for change of address or other particulars or applications for issuance of duplicate certificates, requests for income tax exemption or Zakat exemption, etc. for immediate transmission to the Management Company or Transfer Agent as appropriate for further action. The Management Company shall remunerate the Distributors out of its resources and/or from Sales Load. The Management Company may, at its sole discretion, from time to time, appoint Investment Facilitators (Facilitators). The Facilitators’ function is to identify, solicit and assist investors in investing in the Fund. The Management Company shall remunerate the Facilitators out of its resources and/or from Front-end Load. 4.12 Auditors EY Ford Rhodes. Chartered Accountants Published Date 13-Sep-2021
39. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document EY Ford Rhodes Chartered Accountants Progressive Plaza, Beaumont Road P.O Box 15541 Karachi 75530 Pakistan 4.12.1 They will hold office until the transmission of the reports and accounts, which will cover the period from commencement of the Trust up to the end of the Accounting Period and will, afterwards, be eligible for reappointment by the Management Company with the concurrence of the Trustee. However, an auditor may be reappointed for such terms as stipulated by the Regulations and/or the Ordinance, as amended from time to time. The appointment of Auditor and contents of the Auditor’s report shall be in accordance with the provisions of the Rules and Regulations. 4.12.2 The Auditors shall have access to the books, papers, accounts and vouchers of the Trust, whether kept at the office of the Management Company, Trustee, Custodian, Transfer Agent or elsewhere and shall be entitled to require from the Management Company, Trustee and their Directors, Officers and Agents such information and explanations as considered necessary for the performance of audit. 4.12.3 The Trustee shall be entitled to require the Auditors to provide such further reports as may be agreed between the Trustee and the Management Company as may be considered necessary to facilitate the Trustee in issuing the certification required under the Regulations. 4.12.4 The Auditors shall prepare a written report to the Unit Holders on the accounts and books of accounts of the Trust and the balance sheet, profit and loss account, cash flow statement and statement of movement in Unit Holders’ Funds and on every other document forming part of the balance sheet and profit and loss account, including notes, statements or schedules appended thereto. 4.12.5 The contents of the Auditors report shall be as mentioned in the Regulations. 4.13 Legal Advisors The legal advisors of the Fund are: Muhammad Masood Khan & Associates C-25, Second Floor, Sunset Boulevard, Phase-II, DHA Karachi, Pakistan 4.14 • • • Bankers Bankers to the Scheme are Bank Al Habib Ltd Dubai Islami Bank Ltd and any other Islamic bank appointed by the Management Company. The Trustee shall maintain and operate the Bank Accounts of the Scheme at the said Bank(s). 4.14.1 Bank Accounts a) The Trustee, at the request of the Management Company, shall open Bank Account(s) titled “CDC Trustee NIT Islamic Money Market Fund” for the Unit Trust at Published Date 13-Sep-2021
40. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document designated Islamic Banks or Islamic window of Conventional Banks inside or outside Pakistan, subject to the relevant laws, Trust Deed, Rules and Regulations, for collection, investment, redemption or any other use of the Trust’s Funds. b) The Management Company may also require the Trustee to open Bank Account(s) as Distribution Account(s) for dividend distribution out of the Unit Trust. Notwithstanding anything in the Deed, the beneficial ownership of the balances in the Accounts shall vest in the Unit Holders c) All bank charges for opening and maintaining Bank Accounts for the Trust shall be charged to the Fund. All income, profit etc. earned in the Distribution Account(s), including those accruing on unclaimed dividends, shall form part of the Trust Property for the benefit of the Unit Holders and shall be transferred periodically from the Distribution Account(s) to the main Bank Account of the Trust. d) The amounts received from the Investors before the Initial Period shall be deposited in a Bank Account of the Fund and any income, profit etc earned and/or accrued on the investments of that amount up to and including the day before the opening of Initial Period shall not form part of the Trust Property and shall be paid by the Management Company or the Trustee to those Investors participated before the Offering Period, either in cash or in additional Units as selected by those Investors, in proportion of their investments. e) The Trustee shall, if requested by the Management Company at its discretion also open a separate Account designated by the Management Company at designated Islamic Banks or Islamic window of Conventional Banks or at Conventional Banks. These account(s) may be used for the purpose of collection of sale proceeds, where collections received on account of subscription of Units by investors of various unit trusts and the administrative plans that are managed by the Management Company shall be held prior to their being allocated and transferred to pertinent unit trust(s). Such account(s) may also be used for temporary parking for the purpose of redemption. Provided however, in relation to the other unit trusts managed by the Management Company mentioned above, there are similar provisions in the trust deeds of such Funds. Such accounts shall be in the title of “CDC Trustee NITL Funds”. Bank Accounts shall only be opened in Scheduled Islamic Banks, Islamic banking windows of scheduled commercial banks. In case an account needs to be opened with a conventional bank, it shall only be a current account and it shall be opened after specific approval from the Shariah Advisor 4.15 Disposal of Haram Income Any haram income earned in the investment process shall be purified by means of charity. The calculation methodology of haram income shall be performed by the Shariah advisor according to the Shariah guidelines and the charity amount shall be verified and approved by the Shari’ah advisor and will be disbursed to the approved charitable institutions. Published Date 13-Sep-2021
41. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document 4.16 Rating of the Scheme The Management Company will be obliged to obtain a rating of the Scheme, once the Scheme becomes eligible for rating as per the criteria of the rating agency, and such rating shall be updated at least once every Financial Year and also published in the annual and quarterly reports of the Scheme as well as on the Management Company’s website. 4.17 5. Minimum Fund Size The minimum size of NIT Islamic Money Market Fund shall be one hundred million rupees at all times during the life of the scheme. In case after the Initial Public Offering, or subsequently at any time if the size of the open ended scheme falls below the minimum size of one hundred million rupees, the asset management company shall ensure compliance with the minimum fund size within three (3) months of its breach and if the fund size remains below the minimum fund size limit for consecutive ninety (90) days, the asset management company shall immediately intimate the grounds to the Commission upon which it believes that the scheme is still commercially viable and its objective can still be achieved. CHARACTERISTICS OF UNITS 5.1 Units All Units and fractions thereof represent an undivided share in the Fund and rank pari passu as to their rights in the net assets, earnings, and the receipt of the dividends and distributions. Each Unit Holder has a beneficial interest in the Fund proportionate to the Units held by such Unit Holder. For the convenience of investors, the Management Company may issue Units with different options for different arrangements as chosen by the investor from time to time, after seeking prior approval of the Shariah Advisor, Commission and amending the Offering document. 5.2 Class of Units – The Management Company may issue any of the following class of Units (a) Class “A” Units shall be offered and issued during and after the Initial Period of Offer (IPO) with or without Sales Load (Front-end Load) or any combination of foregoing from time to time as mentioned in Annexure B. Bonus Units will also be issued under the same class. (b) All Units of the Fund issued from time to time shall rank pari passu inter se and shall have such rights as are set out in the Trust Deed and this Offering Document unless stated otherwise. 5.3 Types of Units An investor shall, at the time of opening an account, select the types(s) of Unit(s) in which the investor wishes to invest, i.e. Growth Unit and/or Income Unit. Published Date 13-Sep-2021
42. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document 5.3.1 Growth Units. The Unit value grows in line with the growth in NAV, and the Unit Holders shall receive additional units at prevailing price, after adjusting for taxes against Cash Dividend (if any) at the time of distribution. The Management Company may also decide to distribute income in the form of bonus units which shall be growth units of the Fund. 5.3.2 Income Units. The Unit value grows in line with the growth in NAV, and the Unit Holders shall receive distribution income in the form of cash, if any distribution announced by the Fund. The Management Company may also decide to distribute income in the form of bonus units which shall be income units of the Fund. In case the Management Company decides to declare/ give payouts on a daily/weekly/fortnightly basis then only additional units of the respective type shall be issued in lieu of cash dividends (cash payouts) at prevailing prices after adjustment of all applicable taxes/ duties. 5.3.3 Unit Holders can switch from one type of Units to another at any time by filling out the required application form available at all distribution points. 5.3.4 The Management may introduce additional type of Units from time to time, subject to SECP’s prior approval. 5.4 Purchase and Redemption of Units (a) Units are purchased at the Offer Price and redeemed at the Redemption Price at any of the Authorized Distribution Offices during Business Hours on any Dealing Day in accordance with the procedure set out in of this Offering Document. (b) Unit will be allocated and issued on the basis of purchase (offer) price applicable on the date of realization of the funds in the bank accounts of the Fund along with receipt of duly completed purchase application. (c) During the period the register is closed, the sale, redemption and conversion of Units will be suspended. (d) The Management Company may decline an applicant for issue of units if it is of the opinion that it will not be possible to invest the substantial inflow of Funds or to meet any regulatory requirement. 5.5 Procedure for Purchase of Units 5.5.1 Who Can Apply? Any investor or any related group of investors qualified or authorized to purchase the Units may make applications for the Purchase of Units in the Fund. Application may be made pursuant to the procedures described in paragraph 5.5.2 below by any qualified or authorized investor(s) including, but not limited to, the following: (a) Citizens of Pakistan resident in Pakistan. In respect of minors below 18 years of age, applications may only be made by their guardians. Published Date 13-Sep-2021
43. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document (b) Companies, corporate bodies, financial institutions, banks, partners of a firm and societies incorporated in Pakistan provided such investment is permitted under their respective memorandum and articles of association and/or bye-laws. (c) Pakistanis resident abroad, foreign nationals and companies incorporated outside Pakistan can apply for Units subject to the regulations of the State Bank of Pakistan and the Government of Pakistan and any such regulations and laws that may apply to their place of residence, domicile and citizenship. The payment of dividends and redemption proceeds to such investors shall be subject to the relevant taxation and exchange regulations/laws. Any person making an application for the Purchase of Units in the Fund shall warrant that he/she is duly authorized to purchase such Units. (d) Provident Funds constituted by companies registered under the Companies Act,2017, subject to conditions and investment limits as laid down in Employees Provident Fund (Investment in Listed Securities) Rules, 1996, as amended from time to time, including by SROs. (e) Provident, Pension and Gratuity Funds constituted by organizations other than companies under Section 20 (h) of the Trusts Act 1882, (11 of 1882). (f) Insurance companies under the Insurance Ordinance, 2000. (g) Non Profit Organization under Rule 213 (i) of the Income Tax Rules, 2002. (h) Fund of Funds Schemes 5.5.2 How can Units be purchased? Account Opening Procedure The procedure given below is designed for paper-based transactions. The Management Company at a later date after seeking approval of the Commission may introduce electronic/Internet based options for the transactions. (a) Before purchasing Units of the Fund an investor must open an account with Management Company. (b) In case of individuals, a photocopy of the Computerized National Identity Card (CNIC), NICOP or Passport etc. of the applicant or any other form of identification acceptable to the Management Company needs to be furnished. (c) In case of a body corporate or a registered society or a trust the following documents would be required, (i) Duly certified copy of the memorandum and articles of association/ Charter/ Byelaws or rules and regulations; (ii) Duly certified copy of power of attorney and/or relevant resolution of the board of directors delegating any of its officers to invest the Funds and/ or to realize the Investment and; (iii) Duly certified copy of the Computerized National Identity Card (CNIC) of the officer to whom the authority has been delegated. Published Date 13-Sep-2021
44. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document (d) In case of existing Unit Holders, if any of the documents (in a-c above) have previously been submitted with the Management Company and/or Transfer Agent, fresh submission of documents will not be required provided that submitted documents are acceptable to Management Company. However, the account number must be provided to facilitate linking. Any change of name or address of any unit holder as entered in the Register shall forthwith be notified in writing by relevant unit holder to the distributor company or transfer agent. (e) The Distribution Company and/or Management Company will be entitled to verify the particulars given in the Account Opening Form. In case of any incorrect information, the application may be rejected if the applicant fails to rectify the discrepancy. (f) If subsequent to receipt of the application by the Distributor, but prior to issue of the Units, the application is found by the Registrar or the Distributor to be incomplete or incorrect in any material manner, the Registrar or the Distributor will advise the applicant in writing to remove the discrepancy, in the meanwhile the application will be held in abeyance for fifteen days and in the event the discrepancy is not removed in the said fifteen days, the amount will be refunded without any interest or mark-up. However, in the event Units have been issued and a material discrepancy is discovered subsequent to that, the Registrar or the Distributor will advise the applicant in writing to remove the discrepancy within fifteen days and if the investor, in the opinion of the Registrar, fails to remove the discrepancy without good cause, the Units shall be redeemed at the Redemption Price fixed on the date the Units are so redeemed. The Unit Holder shall not be entitled to any payment beyond the redemption value so determined. (g) The Investor Account Opening Form can be lodged with any Distributor or any other person(s) authorized by the management company or directly lodged with the Management Company. (h) The Management Company will make arrangements, from time to time, for receiving Account Opening Forms from outside Pakistan and will disclose these arrangements through its website and its Distributors and agents outside Pakistan. (i) In case of submission of electronic online investment requests the Investor’s user ID and password will authenticate his/her identity. 5.5.3 (a) Joint Application Joint application can be made by up to four applicants. Such persons shall be deemed to hold Units on first holder basis. However, each person must sign the Account Opening Form and submit a copy of Computerized National Identity Card, NICOP, Passport and other identification document. (b) The first named Holder shall receive all notices and correspondence with respect to the account, as well as proceeds of any redemption, or dividend payments. Such person’s receipt or payment into the person’s designated bank account shall be Published Date 13-Sep-2021
45. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document considered as a valid discharge of obligation by the Trustee and the Management Company. (c) In the event of death of the first Holder, the person first in the order of survivor(s) as stated in the Account Opening Form shall be the only person recognized by the Trustee and the Management Company to receive all notices and correspondences with regard to the accounts, as well as proceeds of any redemption requests or dividend. Such person’s acknowledgement of receipt of proceeds shall be considered as the valid discharge of obligation by the Trustee and the Management Company. Provided however the Trustee and/or the Management Company may at their discretion request the production of a Succession Certificate from an appropriate Court before releasing of redemption requests or dividends in cases of doubts or disputes among the Joint Unit Holders and/or the legal heirs or legal representatives of the deceased. 5.5.4 Purchase of Units (a) After opening an account an account holder may purchase Units of the Fund using the Investment Application Form. Payment for the Units must accompany the form. (b) Application for Purchase of Units shall be made by completing the prescribed Investment Application Form and submitting it to the authorized branches of the Distributor or to the Management Company together with the payment by cheque, bank draft, pay order or online transfer as the case may be in favor of Trustee Bank Account and crossed “Account Payee only” as specified below; • • • Demand draft or Pay order in favor of CDC Trustee NIT Islamic Money Market Fund Online transfer to Bank Account(s) of CDC Trustee NIT Islamic Money Market Fund or CDC Trustee NITL Funds. Cheque (account payee only) marked in favor of CDC Trustee NIT Islamic Money Market Fund (c) The Management Company may also notify, from time to time, arrangements or other forms of payment within such limits and restrictions considered fit by it with the prior approval of Commission. (d) Applicants must indicate their account number in the Investment Application Form except in cases where the Investor Account Opening Form is sent with the Investment Application Form. (e) The applicant must obtain a copy of the application signed and stamped by an authorized officer of the Distributor acknowledging the receipt of the application, copies of other documents prescribed herein and the demand-draft, pay-order, cheque or deposit slip as the case may be. Acknowledgement for applications and payment instruments can only be validly issued by Distributors or the Management Company. Published Date 13-Sep-2021
46. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document (f) The Distribution Company and/or Management Company will be entitled to verify the detail given in the Investment Form. In case of any incorrect information, the application may be rejected if the applicant fails to rectify the discrepancy (except for discrepancy in payment instrument, in which case application will be rejected immediately). (g) The Management Company will make arrangements, from time to time, for receiving Investment Request Forms and payments from outside Pakistan and will disclose these arrangements through its website and its Distributors and agents outside Pakistan. 5.5.5 Minimum Amount of Investment Initially Units shall be issued at Par Value of Rs 100/- with a minimum investment size of Rs.1,000/- (Rupees One Thousand only) and thereafter the minimum amount for investment would be of Rs. 500/- (Rupees Five Hundred only) per transaction, at applicable NAV or purchase price, other than reinvestment of Dividend and Bonus Units. The Management Company reserves the right to alter the minimum amounts stated hereinabove after giving thirty days prior notice to the Unit Holders. However, enhancement in current minimum monetary investments shall not take effect retrospectively. 5.5.6 (a) Determination of Purchase (Public Offer) Price Units offered during the Initial period will be as specified in clause 2.9. (b) After the Initial Period, the Purchase (Offer) Price for the Unit offered through Public Offering, shall be determined from time to time pursuant to the Sub clause (c) hereafter and shall be announced by the Fund for Dealing Days during the period when the Fund is open for subscription. (c) The Purchase (Offer) Price shall be equal to the sum of: (i) The Net Asset Value as of the close of the previous day (known pricing/backward pricing) (ii) Any Front-end Load as disclosed in this Offering Document. (iii) Such amount as the Management Company may consider an appropriate provision for Duties and Charges; and (iv) Such amount as the Management Company may consider an appropriate provision for Transaction Costs. (v) Such sum shall be rounded to the nearest paisa up to four decimal places. If such price exceeds or falls short of the current value of the underlying assets by more than five percent based on information available, the Management Company shall defer dealing and calculate a new price and this new price would be applicable for dealing of Units. (d) The Purchase (Offer) Price so determined for shall apply to purchase requests, received by the Distributor or the Management Company during the Business Hours Published Date 13-Sep-2021
47. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document on the Dealing Day on which the completely and correctly filled purchase of units application form is received and the purchase amount has been realized. (e) The Purchase (Offer) Price determined by the Management Company shall be made available to the public at the office and branches of the Distributors and will also be published daily on the Management Company’s and MUFAP’s website. 5.5.7 (a) Allocation/ Issue of Units The Purchase Price determined for the business day on which subscription money is realized into the bank account of the Scheme shall apply to all Investment Request Forms, complete in all respects, received by the Management Company at its registered address or by the Distributor at its Authorized Branch(s) during Business Hours on each Dealing Day. Any Investment Request Forms received after Business Hours will be transferred to the next Dealing Day (b) Units will be allotted and issued at the Purchase Price as determined in clause 5.5.6. above after realization of funds in the bank account of the Fund. (c) The Transfer Agent shall send an account statement or report to the Unit Holder each time there is an activity in the account. Such statements or report shall be sent by electronic means or ordinary mail to the Unit Holder’s address recorded in the Register of Unit Holders. (d) In case the Management Company announces a suspension of further issue of Units of Fund, it may allow existing Unit Holder to continue acquiring Units out of any dividend declared on the Units held. 5.5.8 Issuance of Physical Certificates (a) Unit Certificates will be issued only if requested by the Unit Holder. (b) Unit Holder can apply for the issue of Certificate by completing the prescribed application form and submitting it to the relevant Distribution Company together with a fee at the rate of Rs.50/- per Certificate or any other amount as determined by the Management Company from time to time (In accordance with relevant laws) (c) The Certificate will be posted at the applicant's risk within 21 Business Days after the request for the Certificate has been made to the address of the Unit Holder. (d) The Certificate will be available in such denomination as Management Company and the Trustee decide from time to time. Unless, the Unit Holder has instructed to the contrary, the minimum number of Certificates will be issued. (e) A Unit or any fraction thereof shall not be represented by more than one Certificate at any one time. 5.5.9 (a) Replacement of Certificates The Transfer Agent or Management Company may replace Certificates, which are defaced, mutilated, lost or destroyed on application received by them from the Unit Holder on the prescribed form on the payment of all costs and on such terms as to evidence, indemnity and security as may be required. Any defaced or mutilated Certificate must be surrendered before a new Certificate is issued. Published Date 13-Sep-2021
48. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document (b) The Unit Holder shall on application on prescribed form be entitled to consolidate the entire holding in the Fund into one (01) Certificate upon surrender of existing Certificates. (c) Each new issue of Certificate will require payment of Rs.50/- per Certificate, subject to revisions of fee from time to time by the Management Company. (In accordance with relevant laws) 5.5.10 Issuance of Units in Book Entry form in CDS Unit Holder may obtain Units in Book Entry form in CDS. The Issuance of Units in CDS shall be made in accordance with the procedure laid down in CDCPL Regulations. 5.6 Procedure for Redemption of Units 5.6.1 Who Can Apply? All Unit Holders shall be eligible for redemption after the closure of the Initial Period. 5.6.2 Redemption Application Procedure 5.6.2.1 Request for Redemption of Units shall be made by completing the prescribed redemption form and the same is received at the Authorized Branch or office of the Distributor on a Dealing Day during the Business Hours as may be announced by the Management Company from time to time. The Distributor may retain a copy of the Redemption Form and a copy may also be supplied to the Registrar, if so required by the Management Company. 5.6.2.2 The Management Company may redeem only part of the Units comprised in a Certificate and reissue a new Certificate for the remaining Units, however, in the case where Certificate is not issued any number of Units may be redeemed by the Unite Holder thereof. The relevant Certificate shall accompany the application for Redemption of Units, if issued. At the discretion of the Management Company certificate charges may apply for the reissued Certificate. 5.6.2.3 The Registrar with the consent of the Trustee may dispense with the production of any Certificate that shall have become lost, stolen or destroyed upon compliance by the Unit Holder(s) with the like requirements to those arising in the case of an application by him for the replacement thereof. 5.6.2.4 In case of application for redemption by joint Unit Holders, unless otherwise specified by the joint holders, such application should be signed by all the joint Holders as per their specimen signatures provided at the time of opening of the account within the Unit Holder Register, through the Investor Account Opening Form. 5.6.2.5 The Distribution Company or the Registrar shall verify the particulars given in the application for Redemption of Units. The signature of any Unit Holder on any document required to be signed by him under or in connection with the application for redemption of Units may be verified by Management Company or the Registrar or otherwise authenticated to their reasonable satisfaction. In case Published Date 13-Sep-2021
49. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document of submission of electronic on-line redemptions the Unit Holder’s user ID and password will authenticate his identity. 5.6.2.6 The Unit Holder will receive a note confirming the receipt of the application for redemption from the relevant Distribution Office. 5.6.2.7 If subsequent to receipt of the redemption application by the Distributor, but prior to the redemption of the Units, the application is found by the Management Company or the Registrar or the Distributor to be incomplete or incorrect in any material manner, the Management Company or Registrar or the Distributor will advise the applicant to remove the discrepancy. In the meanwhile, the application will be held in abeyance for fifteen days. In the event the discrepancy is not removed in the said fifteen days, the application for redemption will be cancelled treating the same as null and void. The Unit Holder will then have to submit a fresh application for Redemption of Units. 5.6.2.8 The Management Company shall ensure all valid redemption request are paid based on ranking of the request in a queue. 5.6.2.9 The amount payable on redemption shall be paid to the Unit Holder or first named joint Unit Holder by dispatching a cheque/ bank draft/ pay order for the amount to the registered address of the Unit Holder or may be paid to the Unit Holder through Electronic Bank transfer to the Unit Holder's designated bank account as mentioned in the Investor Account Opening Form or Redemption form within six Business Days from the date of presentation of the duly completed Redemption form, electronic or otherwise, at the Authorized Branch or office of the Distributor or the Management Company. The amount can also be paid to the third party upon instruction of the Unit Holder through Electronic Bank transfer to the Unit Holder's designated bank account as mentioned in the Investor Account Opening Form or Redemption form. 5.6.2.10 No Money shall be paid to any intermediary except the Unit Holder or his authorized representative. 5.6.2.11 The Management Company may request the Trustee to make arrangements to accept redemption requests electronically (that is, web based), or by any other means. The Management Company may also request the Trustee to open bank accounts at different branches of banks to facilitate the redemption of Units through the ATM facility. Any such arrangements shall be notified to the Unit Holders as and when introduced by the Management Company. In case of submission of electronic online redemption requests the Investor’s user ID and password will authenticate his/her identity. 5.6.2.12 The receipt of the Unit Holders for any amount payable in respect of the Units shall be a good discharge to the Trustee and the Management Company. In case of joint Unit Holders any one of them may give effectual receipt for any such moneys. 5.6.2.13 Application for Redemption of Units will be received at the authorized offices or branches of the Distributor on all Dealing Days. Where redemption requests on any one Dealing Day exceed ten (10) percent of either the total number of Units Published Date 13-Sep-2021
50. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document outstanding, such redemption requests in excess of ten (10) percent may be deferred in accordance with the `procedure elaborated in the Clause 5.12.4. 5.6.2.14 On the occurrence of any circumstance specified in the Regulation or the Deed that may require the Fund should be suspended, the Management Company shall suspend the Sale and Redemption of Units and the intimation of suspension shall be made to the Unit Holders, the Trustee and the Commission according to the procedure laid down in the Regulation. 5.6.2.15 The Management Company shall ensure that no entry and exit from the Scheme (including redemption and re-issuance of Units to the same Unit Holders on different NAVs) shall be allowed other than the following manners, unless permitted otherwise by the Commission under the Regulations: (a) cash settled transaction based on the formal issuance and redemption requests (b) net off issuance and redemption transaction at same net asset value when redemption request is ready to disburse and rank at the top in the list of pending redemption requests (if any). The Management Company shall clearly specify Cut-Off Timings (for acceptance of application forms of issuance, redemption, and conversion of Units of the Scheme) mentioned in this Offering Document, on its web site and at designated points. Such Cut-Off Timing shall uniformly apply on all Unit Holders. The Management Company shall ensure all valid redemption request are paid based on ranking of the request in a queue. 5.7 Redemption of Units in Book Entry form in CDS Unit Holder may redeem their Units held in Book Entry form in CDS. The Redemption of Units in CDS shall be made in accordance with the procedure laid down in CDCPL Regulations. 5.8 Purchase (Public Offer) and Redemption (Repurchase) of Units outside Pakistan 5.8.1 Subject to exchange control, SECP prior approval and other applicable laws, Rules and Regulations, in the event of arrangements being made by the Management Company for the Purchase (Public Offer) of Units to persons not residing in Pakistan or for delivery in any country outside Pakistan, the price at which such Units may be issued may include in addition to the Purchase (Public Offer) Price as hereinbefore provided a further amount sufficient to cover any exchange risk insurance, any additional stamp duty or taxation whether national, local or otherwise leviable in that country in respect of such issue or of the delivery or issue of Certificates, or any additional costs relating to the delivery of certificates or the remittance of money to Pakistan or any other cost in general incurred in providing this facility. 5.8.2 In the event that the Redemption Price for Units shall be paid in any country outside Pakistan, the price at which such Units may be redeemed may include as a deduction to the Redemption Price as hereinbefore provided a further amount sufficient to cover any exchange risk insurance and any additional stamp duty or taxation whether national, local or otherwise leviable in that country in respect of Published Date 13-Sep-2021
51. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document such payment or redemption or any bank or other charges incurred in arranging the payment or any other cost in general incurred in providing this facility. Provided however, neither the Management Company, nor the Trustee give any assurance or make any representation that remittance would be allowed by the State Bank of Pakistan at the relevant time. 5.8.3 The currency of transaction of the Trust is the Pakistan Rupee and the Management Company, Trustee or any Distributor are not obliged to transact the purchase or redemption of the Units in any other currency and shall not be held liable, save as may be specifically undertaken by the Management Company, for receipt or payment in any other currency or for any obligations arising therefrom. 5.9 Determination of Redemption (Repurchase) Price 5.9.1 The Redemption (Repurchase) Price shall be equal to the Net Asset Value as of the close of the previous day (known pricing/backward pricing) less: (a) Any Back-end Load as per the details in this Offering Document Annexure B; and; (b) Such amount as the Management Company may consider an appropriate provision for Duties and Charges and other levies etc. (c) Such amount as the Management Company may consider an appropriate provision for Transaction Costs; and (d) Such sum shall be rounded to the nearest paisa up to four decimal places Level of all back end loads shall be disclosed in the Offering Document. An increase in Back End load will require 30 days prior notice to the Unit Holder or any other period as specified in the Regulations. 5.9.2 The Repurchase (Redemption) Price so determined shall apply to redemption requests, complete in all respects, received by the Distributor or the Management Company during the Business Hours on the Dealing Day on which a correctly and properly filled redemption application is received. 5.9.3 The Redemption Price determined by the Management Company shall be made available for every Dealing day to the public at the office and branches of the Distributors and management company and at the discretion of the Management Company may also be published in any daily newspaper widely circulated in Pakistan and will be published at Management Company’s and MUFAP’s website. 5.10 Procedure for Requesting Change in Unit Holder Particulars 5.10.1 Who Can Request Change? All Unit Holders are eligible to change their Unit Holder details if they so desire. For such change in particulars, a request shall be made via the Special Instructions Form. These Forms may be obtained from Distributors or Investment Facilitators or from the Management Company or through its website. However, if Units are held in CDS account then request should be made through CDS Participant or the Published Date 13-Sep-2021
52. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document Investor Account Service (IAS) with which the account is maintained, according to the procedure laid down in CDC Regulations. 5.10.2 Application Procedure for Change in Particulars (a) Some of the key information which the Unit Holder can change is as follows: i. Change in address ii. Nominee detail iii. Change in Bank Account details iv. Account Operating instructions v. Systemic Conversion Option Change will not be allowed in Title of account. (b) Fully completed Special Instructions Form has to be submitted by unit holder. This Form should be delivered to any of the Authorized Branches of the Distribution Companies or may be directly submitted to the Management Company or through an Investment Facilitator within Business Hours on a Dealing Day. (c) The applicant must obtain a copy of the Special Instructions Form signed and duly verified by an Authorized Officer of the Distributor or Management Company. (d) The Distribution Company and /or Management Company will be entitled to verify the particulars given in the Special Instructions Form. In case of any incorrect information the application may be rejected if the applicant does not rectify the discrepancy. (e) The Unit Holder will be liable for any taxes, charges or duties that may be levied on any of the above changes. These taxes, charges or duties may either be recovered by redemption of Unit Holder’s equivalent Units at the time of the service request or the Management Company may require separate payment for such services. (f) Unless the Joint Unit Holder(s) of Units have specified otherwise, all the Joint Unit Holder(s) shall sign the Special Instructions Form for such Units. 5.10.3 Transfer, Nomination, Transmission and Systemic Conversion Procedure 5.10.4 Unit Holder may, subject to the law, transfer any Units held by them to any other person. The transfer shall be carried out after the Management Company/Transfer Agent has been satisfied that all the requisite formalities including the payment of any charges, taxes and duties have been complied with. 5.10.5 Both the transferor and the transferee must sign every instrument of transfer and the transferor shall be deemed to remain the Holder of the Units transferred until the name of the transferee is entered in the register. Every instrument of transfer must be duly completed in all respects including affixation of transfer stamps of the requisite value. 5.10.6 Where Certificates have been issued, the Management Company / Transfer Agent with the consent of the Trustee may dispense with the production of any Certificate that shall have become lost, stolen or destroyed upon compliance by the Unit Holder(s) with the like requirements to those arising in the case of an application by him for the replacement thereof as provided in this Offering Published Date 13-Sep-2021
53. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document Document. The Management Company or the Transfer Agent shall retain all instruments of transfer. 5.10.7 The Transfer Agent shall, with the prior approval of the Management Company or the Management Company itself be entitled to destroy all instruments of transfer or the copies thereof, as the case may be, which have been registered at any time after the expiration of ten years from the date of registration thereof and all the Certificates which have been cancelled at any time after the expiration of ten years from the date of cancellation thereof and all registers, statements and other records and documents relating to the Trust at any time after the expiration of ten years from transmission to the Trust. The Trustee or the Management Company or the Transfer Agent shall be under no liability, whatsoever, in consequence thereof and it shall conclusively be presumed in favor of the Trustee or the Management Company or the Transfer Agent that every Unit of Transfer so destroyed was a valid and effective instrument duly and properly registered by the Trustee or the Management Company or the Transfer Agent and that every Certificate so destroyed was a valid Certificate duly and properly cancelled, provided that (i) this provision shall apply only to the destruction of a document in good faith and without notice of any claim (regardless of the parties thereto) to which the document may be relevant; (ii) nothing in this sub-clause shall impose upon the Trustee or the Management Company or the Transfer Agent any liability in respect of the destruction of any document earlier than as aforesaid or in any case where the conditions of provision (i) above are not fulfilled. Reference herein to the destruction of any document includes reference to the disposal thereof in any manner. Complete list of unclaimed dividends will be maintained by the Management Company and shall not be destroyed. Unit Holder may nominate any successor/ nominee for transmission, subject to all legal requirements, in case of the decease of Unit Holder. 5.10.8 Transmission of Units to successors in case of inheritance or distribution of the estate of a deceased Unit Holder shall be processed by the Transfer Agent or the Management Company itself as Registrar after satisfying as to all legal requirements such as intimation of death of deceased Unit Holder along-with certified copy of death certificate, indemnity from nominee along-with copy of CNIC of nominee and deceased Unit Holder, original unit certificate (in case of physical certificate) etc. The legal costs and taxes, if any, shall be borne and paid by the transferees. However, the processing fee shall not be payable by successors or the beneficiaries of the estate in the case of transmission. The Management Company shall pay the relevant processing fee to the Transfer Agent. 5.10.9 A Unit Holder may convert the Units in a Unit Trust Scheme managed by the Management Company into Units of another Unit Trust Scheme managed by the Management Company by redeeming the Units of first Scheme and issuance of Units of later Scheme(s) at the relevant prices applicable for the day. The Transfer Agent or Management Company itself shall carry out the conversion after satisfying that all the requisite formalities have been fulfilled and payment of the applicable taxes, fees and/or load, if any, has been received. Published Date 13-Sep-2021
54. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document Management Company may impose a time limit before which conversion may not be allowed. 5.10.10 A Unit Holder may merge the Units which he/she has invested with two folio/registration numbers into one folio/ registration number. The Transfer Agent shall carry out the merger after satisfying that all the requisite formalities have been completed and payment of applicable taxes and fee, if any, has been received. 5.10.11 Partial Transfer Partial transfer of Units covered by a single Certificate is permitted provided that in case of physical certificates issued, the Unit Holder must apply for splitting of the Unit certificate representing the partial amount and then the new certificate shall be applied for transfer. 5.11 5.11.1 Procedure for Pledge / Lien / Charge of Units Who Can Apply? (a) All Unit Holders are eligible to apply for pledge / lien / charge of Units if they so desire. Such Pledge / Lien / Charge can be made via the Pledge of Units Form. These forms may be obtained from Distributors or Investment Facilitators or from the Management Company or through its website. However, if Units are held in CDS account then request should be made to the CDS Participant or the Investor Account Service (IAS) with which the account is maintained, according to the procedure laid down in CDC Regulations. (b) Any Unit Holder (where required) may request the Management Company or Transfer Agent to record a pledge / lien of all or any of his / her/ their Units in favor of any third party legally entitled to invest in such Units in its own right. The Management Company or Transfer Agent (with the consent of the Management Company) shall register a lien on any Unit in favor of any third party. However, the lien shall be valid only if evidenced by an account statement or letter issued by the Management Company or Transfer Agent with the Units marked in favor of the Pledgee. The onus for due process having been followed in registering a lien shall lie with the party claiming the lien. (c) The lien once registered shall be removed by the authority of the party in whose favor the lien has been registered or through an order of a competent court. Neither the Trustee, nor the Management Company, nor the Transfer Agent, shall be liable for ensuring the validity of any such pledge / charge / lien. The disbursement of any loan or undertaking of any obligation against the constitution of such pledge/charge/lien by any party shall be at the entire discretion of such party and neither the Trustee nor the Management Company and the Transfer Agent shall take any responsibility in this matter. (d) Payments of cash dividends or the issue of bonus Units and redemption proceeds of the Units or any benefits arising from the said Units that are kept under lien / charge / pledge shall be paid to the order of the lien / charge / pledge holder’s bank account or posted to the registered address of Pledgee mentioned in the Pledge Form. In case Units are pledged through Central Depository System, payments of cash dividends or the issuance of bonus Units goes to the Pledger as per Central Depositories Act. Published Date 13-Sep-2021
55. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document (e) The Distribution Company and / or Management Company will be entitled to verify the particulars given in the Pledge Form. In case of any incorrect information the application may be rejected if the applicant does not rectify the discrepancy. (f) Fully completed Pledge of Units Form has to be submitted by Unit Holders. This Form should be delivered to any of the Authorized Branches of the Distribution Companies or may be submitted to the Management Company directly or through an Investment Facilitator within Business Hours on a Dealing Day. (g) All risks and rewards, including the right to redeem such Units and operate such account, shall vest with the pledge / lien / charge holder. This will remain the case until such time as the pledge / lien / charge holder in writing to the Management Company instructs otherwise. 5.12 Temporary Change in Method of Dealing, Suspension of Dealing and Queue System 5.12.1 Temporary Change in the Method of Dealing Under the circumstances mentioned in Clause 5.12.2 & 5.12.3, Subject to compliance with Regulation (having regard to the interests of Unit Holders), the Management Company may request the Trustee to approve a temporary change in the method of dealing in Units. A permanent change in the method of dealing shall be made after expiry of at least one month’s notice to Unit Holders and with the approval of Trustee. 5.12.2 Suspension of Fresh Issue of Units The Management Company may, under the following circumstances, suspend issue of fresh Units. • • • The situation of Force Majeure as defined in this Offering Document; A situation in which it is not possible to invest the amount received against issuance of fresh Units or Any other situation in which issuance of fresh Units is, in Management Company’s opinion, against the interests of the existing/remaining Unit Holders. Such suspension may however not affect existing Unit Holders for the issue of bonus Units as a result of profit distribution The Management Company shall announce the details of circumstances at the time a suspension of fresh issue is announced. The Management Company shall immediately notify SECP and Trustee if issuance of Units is suspended and shall also have the fact published, immediately following such decision, in the newspapers in which the Fund’s prices are normally published. In case of suspension of redemption of Units due to extraordinary circumstances the issuance of Units shall also be kept suspended until and unless redemption of Units is resumed. Investment application form received on the day of suspension will not be processed and the amount received shall be returned to the investor. Published Date 13-Sep-2021
56. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document 5.12.3 Suspension of Redemption of Units The Redemption of Units may be suspended during extraordinary circumstances/ Force Majeure. Redemption requests received on the day of the suspension shall be rejected. 5.12.4 Queue System In the event redemption requests on any day exceed ten percent (10%) of the Units in issue, the Management Company may invoke a Queue System whereby requests for redemption shall be processed on a first come first served basis for up to ten percent (10%) of the Units in issue. The Management Company shall proceed to sell adequate assets of the Fund and / or arrange financing as it deems fit in the best interest of all Unit Holders and shall determine the redemption price to be applied to the redemption requests based on such action. Where it is not practical to determine the chronological ranking of any requests in comparison to others received on the same Dealing Day, such requests shall be processed on basis proportionate to the size of the requests. The Management Company shall provide all redemption requests duly timed and date stamped to the Trustee within 24 hours of receipt of any such request following the queue system. The requests in excess of ten percent (10%) shall be treated as redemption requests qualifying for being processed on the next Dealing Day at the price to be determined for such redemption requests. However, if the carried over requests and the fresh requests received on the next Dealing Day still exceed ten percent (10%) of the Units in issue, these shall once again be treated on first come first served basis and the process for generating liquidity and determining the redemption price shall be repeated and such procedure shall continue till such time the outstanding redemption requests come down to a level below ten percent (10%) of the Units then in issue. 5.12.4.1 Winding up in view of Major Redemptions In the event the Management Company is of the view that the quantum of redemption requests that have built up are likely to result in the Fund being run down to an unsustainable level or it is of the view that the selloff of assets is likely to result in a significant loss in value for the Unit Holders who are not redeeming, it may announce winding up of the Fund. In such an event, the Queue System, if already invoked, shall cease to apply and all Unit Holders shall be paid after selling the assets and determining the final Redemption Price. However, interim distributions of the proceeds may be made if the Management Company finds it feasible. In case of shortfall, neither the Trustee nor the Management Company shall be liable to pay the same. 6. 6.1 DISTRIBUTION POLICY Declaration of Dividend a) In case of payout other than interim payouts, the Management Company shall decide as soon as possible but not later than forty-five days after the Accounting Date / interim period whether to distribute among Unit Holders, profits, either in form of bonus Units or cash dividend, if any, available for the distribution at the end of the Accounting Period and shall advise the Trustee of the amount of such Published Date 13-Sep-2021
57. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document distribution per Unit. The Fund will comply with regulatory and taxation requirements and the distribution policy may be amended accordingly. b) The Management Company on behalf of the Scheme shall, for every accounting year, distribute by way of dividend to the Unit Holders, not less than ninety per cent of the accounting income of the Collective Investment Scheme received or derived from sources other than capital gains as reduced by such expenses as are chargeable to a Collective Investment Scheme under the Regulations. c) For the purpose of this Clause the expression “accounting income” means income calculated in accordance with the requirements of International Accounting Standards (IAS) as are notified under the Companies Act 2017, the Regulations and the directives issued by SECP. Wherever the requirement of Regulations or the directives issued by SECP differs with the requirement of IAS, the Regulations and the said directives shall prevail. d) The management company may decide to distribute all net profit (after deducting all expenses of the Fund) of NIT IMMF on a periodic basis as dividend. By distributing dividend on a periodic basis, the Management Company shall ensure that total distribution in an Accounting period accumulates to an amount that is required under the tax laws and other regulations in force to be distributed and that may be beneficial for its Unit Holders. e) Units holders will be entitled to Dividend from the Day these units are allotted/ issued after realization of money. In case redemption is lodged, the redemption proceeds shall not include the dividend amount of that particular business day on which the redemption has been filed. 6.2 Determination of Distributable Income The amount available for distribution in respect of any Accounting Period shall be determined in accordance with the regulatory and taxation requirement as may be applicable from time to time. All the receipts deemed by the Management Company to be in the nature of capital accruing from Investments may not be regarded as available for distribution and may be retained as part of the Fund Property, provided that such amounts out of the sale proceeds of the Investments and all other receipts as deemed by the Management Company to be in the nature of the net realized appreciation may be distributable to the Unit Holders by the Trustee upon instructions of the Management Company and shall thereafter cease to form part of the Fund Property. 6.3 Payment of Dividend All unit holders appearing in the register of Unit Holders will be entitled for dividend and the amount of dividend shall be reinvested after deduction of all applicable taxes and Charges, if any, in case of daily, weekly and fortnightly payout for Income Units as well. Published Date 13-Sep-2021
58. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document 6.4 Dispatch of Dividend Warrants/Advice Dividend warrants/advices/payment instruments and/or Account Statements shall be dispatched to the Unit Holders or the charge-holders at their registered addresses (Mailing or Email as opted), other than daily, weekly or fortnightly payouts 6.5 Reinvestment of Dividend Any cash dividend entitled to the unit holder shall be reinvested after deduction of all applicable taxes and charges, if any. 6.6 Bonus Units The Management Company may decide to distribute, wholly or in part, the distributable income in the form of stock dividend (which would comprise of the Bonus Units of the Trust) if it is in the interest of Unit Holders. After the fixing of the rate of bonus distribution per Unit, in case of distribution in the form of Bonus Units, the Management Company shall, under intimation to the Trustee, issue additional Units issued in the name of the Unit Holders as per the bonus ratio. The Bonus Units would rank pari passu as to their rights in the Net Assets, earnings and receipt of dividend and distribution with the existing Units from the date of issue of these Bonus Units. The account statement or Unit Certificate shall be dispatched to the Unit Holder within fifteen days of the issue of Bonus Units. 6.7 Encashment of Bonus Units The Management Company shall give the Unit Holder(s) the option at the time of opening of Unit Holder Account (via the Investor Account Opening Form) within the Unit Holder Register to encash bonus Units. In such case the bonus Units issued to the credit of such Unit Holder(s) shall be redeemed at the ex-dividend NAV as calculated on the Business Day immediately preceding the first day of the book closure announced for such purpose and proceeds shall be credited in accordance with the normal procedure already detailed above for Redemption of Units. 6.8 Closure of Register The Management Company may close the Register by giving at least seven (7) days’ notice to Unit Holder provided that the time period for closure of register shall not exceed six (6) working days at a time and whole forty five days in a Financial Year. During the closure period, the sale, redemption, conversion of Units or transfer of Units will be suspended. Notice for closure of register should be published in two newspapers (Urdu and English language) having circulated all over Pakistan. 7. FEE AND CHARGES 7.1 Fees and Charges Payable by an Investor The following fees and charges shall be borne by the Investor and will be charged as part of the Wakalah Fees: 7.1.1 Front-end Load Front end Load is a part of Sales Load which may be included in the offer price of the Units. The remuneration of Distributors shall be paid from such Load and if the Front-end Load is insufficient to pay the remuneration of the Distributors, the Management Company shall pay the amount necessary to pay in full such remuneration and no charges shall be made against the Fund Property or the Published Date 13-Sep-2021
59. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document Distribution Account in this respect. Such payments may be made to the Distributors by the Management Company upon the receipt from the Trustee. The Management Company may at its discretion charge different levels of Load as per Annexure B Any change in Front-end Load shall be done through an addendum to the Offering Document after seeking prior approval of the Commission. A Distributor located outside Pakistan may if so authorized by the Management Company and the Trustee retain such portion of the Front-end Load as is authorized by the Management Company and transfer the net amount to the Trustee, subject to the law for the time being in force. The issue price applicable to Bonus Units issued by way of dividend distribution or issue of Units in lieu of cash distribution shall not include any sales or processing charge. 7.1.2 Back-end Load Back end Load deducted from the Net Asset Value in determining the Redemption Price; provided however that different levels of Back-end Load may be applied to different classes of Units, but Unit Holders within a class shall be charged same level of back end load. Management Company may change the current level of Backend Load after giving 30 days prior notice to the Unit Holder through newspaper (either Urdu or English Newspaper) and via post and the unit holders shall be given an option to exit at the applicable NAV without charge of back end load as specified in the Regulation. The current level of Back-end Load is indicated in Annexure B. 7.1.3 Other Charges Transfer of Units from one owner to another shall be subject to a Processing charge at the date the request is lodged, which shall be recovered from the transferee. However, the processing charge shall not be payable by successors in the case of inheritance or distribution of the estate of a deceased Unit Holder. Units issued to an Account holder through conversion from another scheme run by the Management Company shall be issued at a price based on the Net Asset Value on that date. 7.1.4 Expenses borne by the Management Company and the Trustee The Management Company and Trustee shall bear all expenditures in respect of their respective secretarial and office space and professional management services provided in accordance with the provisions of the Deed. Neither the Management Company nor the Trustee shall make any charge against the Unit Holders nor against the Trust Property nor against the Distribution Account for their services nor for expenses, except such expenses or fees as are expressly authorized under the provisions of the Regulations and the Deed to be payable out of Trust Property. Published Date 13-Sep-2021
60. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document 7.1.5 Remuneration of Distribution Company / Investment Agent / Investment Facilitator The Distribution Company employed by the Management Company will be entitled to a remuneration payable by the Management Company out of its own resources and/or from Front End Load on terms to be agreed between the Management Company and the Distribution Company. The Investment Facilitator/Investment Adviser/Sales Agent employed by the Management Company will be entitled to a remuneration payable by the Management Company out of its own resources. Distributors/Investment Facilitators located outside Pakistan may, if so authorized by Trustee and the Management Company, be entitled to remuneration (from Management Company’s own resources) on terms to be agreed between them and the Management Company, subject to the law for the time being in force. 7.2 Fees and Charges Payable by the Fund The following expenses shall be borne by the Fund: 7.2.1 Remuneration of the Management Company The remuneration shall begin to accrue from the close of the Initial Offering Period. In respect of any period other than an Annual Accounting Period, such remuneration shall be prorated on the basis of the actual number of days for which such remuneration has accrued in proportion to the total number of days in the Annual Accounting Period concerned. Current level Management Fee is disclosed in Annexure “B”. Any increase in the current level of Management Fee, provided it is with in the maximum limit prescribed in the Regulations shall be subject to giving a thirty (30) days prior notice to the unit holders and the unit holders shall be given an option to exit at the applicable NAV without charge of any exit load. 7.2.2 Remuneration of the Trustee The Trustee shall be entitled to a monthly remuneration out of the Trust Property determined in accordance with Annexure “A”. The remuneration shall begin to accrue following the expiry of the Initial Period. For any period, other than an Annual Accounting Period such remuneration will be prorated on the basis of the actual number of days for which such remuneration has accrued in proportion to the total number of days in an Annual Accounting Period concerned. Any upward change in the remuneration of trustee from the existing level shall require prior approval of the Commission. 7.2.3 Formation Costs All preliminary and floatation expenses of the Fund including expenses incurred in connection with the establishment and authorization of the Fund, including execution and registration of the Constitutive Documents, issue, legal costs, printing, circulation and publication of the Offering Document, and all expenses incurred during and up to the Initial Offering Period subject to a maximum of 1.5 per cent of net assets at the close of initial public offering (IPO) of an open end scheme or Rs. 10 Million whichever is lower, shall be borne by the Fund subject to the audit of expenses and amortized over a period of not less than five years or within the maturity of the Fund whichever is lower. This cost shall be reimbursable by a collective investment scheme to an AMC subject to the audit of expenses. The Published Date 13-Sep-2021
61. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document Formation Cost shall be reported by the Management Company to the Commission and the Trustee giving their break-up under separate heads, as soon as the distribution of the securities is completed 7.2.4 7.2.5 Other costs and expenses The following charges shall also be payable out of the Fund Property i. Custody, Brokerage, Transaction Costs of investing and disinvesting of the Fund Property. ii. All expenses incurred by the Trustee in effecting the registration of all registerable property in the Trustee’s name. iii. Legal and related costs incurred in protecting or enhancing the interests of the Unit Holders. iv. Bank charges, financing and financial costs; v. Auditors' Fees and out of pocket expenses. vi. Shariah Advisory Fee vii. Any printing costs and related expenses for issuing Fund’s quarterly, half yearly and annual reports viii. Fund rating fee payable to approved rating agency. ix. Listing Fee including renewals payable to the Stock Exchange(s) on which Units may be listed x. Fee pertaining to the Fund payable to the Commission xi. Taxes, fees, duties if any, applicable to the Fund and on its income, turnover and/or its properties including the Sales Tax levied on Services offered by Asset Management Company (for management of Fund). xii. Charges and levies of stock exchanges, national clearing and settlement company, CDC charges. xiii. Any amount which the Shariah Advisor may declare to be Haram and to be paid to Charity. xiv. Any other expenses as permissible under the Rules and Regulations from time to time and / or permitted by the Commission. Expenses Ratio The expense ratio shall be in line with the limits assigned to the Money Market category in the Non-Banking Finance Companies Regulations, and as defined by the Commission from time to time. (Total Expense ratio shall be capped up to 2% of the Net Assets of the Fund) 8. TAXATION 8.1 Taxation on the Income of the Fund 8.1.1 Liability for Income Tax The following is a brief description of the Income Tax Ordinance, 2001, applicable in respect of the Fund. This section is for advice only and potential investors should consult their tax experts for their liability with respect to taxation on income from investment in the Fund. This part does not cover tax liability of non-Pakistani resident investors with respect to taxes in their own jurisdiction. Published Date 13-Sep-2021
62. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document Under the Tax Law in Pakistan, the definition of a public company includes a trust formed under any law for the time being in force. The Fund will be regarded as a public company liable to a tax rate applicable to a public company. The income of the Fund will accordingly be taxed at the following rates: (i) Dividend income at the applicable rate according to the relevant law; (ii) Capital Gains Tax as applicable according to the relevant law (iii) Return from all other sources / instruments are taxable at the rate applicable to a public company. 8.1.2 Liability for Income Tax if Ninety Percent of Income is distributed Notwithstanding the tax rates given above, the income from the Scheme will be exempted from tax if 90% or more of the income as defined in Clause 99 of Part I of the Second Schedule of Income Tax Ordinance, 2001, is distributed amongst the Unit Holders as dividend. The Fund will distribute not less than 90% of its income received or derived from sources other than realized and unrealized capital gains as reduced by such expenses as are chargeable to the Fund. 8.2 Withholding tax Under the provision of Clouse 47(B) of part (IV) of second schedule of the income Tax Ordinance 2001, the Fund’s income from dividend from (Shariah compliant) term finance certificates, Sukuks, return on (Riba free) deposits with banks/financial institutions, return from contracts, securities or instruments of companies, organizations and establishments will not be subject to any withholding tax. 8.3 Zakat on Fund The Fund is Saheb-e-Nisab under the Zakat and Ushr Ordinance, 1980. The balance in the credit of Shariah Compliant Banks and licensed Islamic Banking windows of conventional Banks, or similar account with a bank standing on the first day of Ramzan-ul-Mubarak will be subjected to Zakat deduction @ 2.5%. 8.4 Taxation and Zakat on Unit Holders 8.4.1 Taxation on Income from the Fund of the Unit Holder a. The following is a brief description of the Income Tax Ordinance, 2001, applicable in respect of Unit Holder of the Fund. This section is for advice only and potential investors should consult their tax experts for their liability with respect to taxation on income from investment in the Fund. This part does not cover tax liability of non-Pakistani resident investors with respect to taxes in their own jurisdiction. b. Unit Holders of the Fund will be subject to Income Tax on dividend income distributed by the Fund (exemption on distribution out of capital gains is limited to those Funds which are debt or money market Funds and they do not invest in shares). c. The tax deducted on dividend at the rates specified above will be the final tax (except for companies) and the payer will be required to withhold the Published Date 13-Sep-2021
63. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document amount of tax at source from payment of dividend except payment to the banking companies. d. Capital gain arising from sale/redemption of Units of the Fund will be subject to tax at the applicable tax rate as mentioned in Income Tax Ordinance 2001. e. Unit Holders who are exempt from income tax may obtain exemption certificate from the Commissioner of Income Tax and provide the same to the Management Company and/or Transfer Agent and on the basis of Exemption Certificate income tax will not be withheld. Unitholders may be liable to pay tax even though they may not have earned any gain on their investment as return of capital through distribution to investors is taxable as per Income Tax Ordinance, 2001. 8.4.2 Tax Credit to Unit Holders Unit Holders of mutual funds other than company are entitled to a tax credit under Section 62 of the Income Tax Ordinance, 2001, on purchase of new Units. 8.4.3 Zakat Units held by resident Pakistani Unit Holders shall be subject to Zakat at 2.5% of the value of the Units under Zakat and Ushr Ordinance, 1980, (XVII of 1980), except those exempted under the said Ordinance. Zakat will be deducted at source from the redemption proceeds. Above deduction will not be made if Unit Holder provides declaration in due course of time to the Management Company. 8.4.4 Disclaimer The tax and Zakat information given above is based on the Management Company’s tax and Shari’ah Advisor’s interpretation of the law which, to the best of the Management Company’s understanding, is correct. Investors are expected to seek independent advice so as to determine the tax consequences arising from their investment in the Units of the Fund. Furthermore, tax and Zakat laws, including rates of taxation and of withholding tax, are subject to amendments from time to time. Any such amendments in future shall be deemed to have been incorporated herein. 9. REPORTS TO UNIT HOLDERS 9.1 Account Statement The Management Company/Transfer Agent may send directly to each Unit Holder an account statement through electronic means each time there is a transaction in the account. The Management Company/Transfer Agent may provide account balance and/or account activities through electronic mode to Unit Holder, who opted for such service. The Management Company/ Transfer Agent shall send an investment account statement to each unit/certificate holder on the registered mailing address provided by the unit holder at least once in a year. The Unit Holder will be entitled Published Date 13-Sep-2021
64. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document to ask for copies of his account statement on any Dealing Day within Business Hours by applying to the Management Company/ Transfer Agent An Asset Management Company shall provide the account statement to the investors within 7 working days from the receipt of such request. 9.2 Financial Reporting (a) The Management Company shall prepare and transmit the annual report physically in such form and manner as set out in Regulations as amended or substituted from time to time. (b) The Management Company shall prepare and transmit quarterly reports physically (or through electronic means or on the web subject to SECP approval) in such form and manner as set out in Regulations as amended or substituted from time to time. 9.3 Trustee Report The Trustee shall report to the Unit Holder, to be included in the annual and second quarter Financial Reports issued by the Management Company to the Unit Holders, as to whether in its opinion the Management Company has in all material respects managed the Fund in accordance with the provisions of the Regulations, the Constitutive Documents and if the Management Company has not done so, the respect in which it has not done so and the steps the Trustee has taken in respect thereof. 9.4 Shariah Review Report At the end of each Annual Accounting Period or such other interval as the Commission may require, the Shari’ah Advisor shall issue a Shari’ah compliance certificate, to the effect that all the business activities, investments and operations of the preceding year’s or past operations of the Fund are in conformity with principles of Shariah. This report shall be included in the Annual reports or such other required reports of the Fund. 9.5 Fund Manager Report The Management Company shall prepare Fund Manager Report each month as per guideline issued by MUFAP and transmit the same to the Unit Holders and also made available at their web site. 10. WARNING AND DISCLAIMER 10.1 Warning a. If you have doubt or apprehension about the contents of this Offering Document, you should consult your bank manager, Shari’ah/Legal/ or other financial advisor is advised. The price of the Units of this Fund and the income of this Fund (from which distributions to Unit Holders is made) may increase or decrease. b. Investment in this Fund is suitable for investors who have the ability to take the risks associated with financial market investments. Capital invested in the financial markets could in extreme circumstances lose its entire value. The historical performance of this Fund, other Funds managed by the Management Company, Published Date 13-Sep-2021
65. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document the financial markets, or that of any one security or transaction included in the Fund’s portfolio will not necessarily indicate future performance. 10.2 DISCLAIMER 10.2.1 The Units of the Fund are not bank deposits and are neither issued by, insured by, obligation of, nor otherwise supported by SECP, any Government Agency, Trustee (except to the extent specifically stated in this document and the Trust Deed) or any of the shareholders of the Management Company or any of the Pre-IPO Investors or any other bank or financial institution. The portfolio of the Fund is subject to market risks and risks inherent in all such investments. 10.2.2 Fund’s target return/ dividend range cannot be guaranteed. Fund’s Unit price is neither guaranteed nor administered/managed; it is based on the NAV that may go up or down depending upon the factors and forces affecting the capital markets and interest rates. 11. GENERAL INFORMATION 11.1 Accounting Period / Financial Year of the Fund Accounting Period means a period ending on and including an accounting date and commencing (in case of the first such period) on the date on which the Trust Property is first paid or transferred to the Trustee and (in any other case) from the next day of the preceding accounting period. Annual Accounting Period means the period commence on 1st July and shall end on 30th June of the succeeding calendar year. 11.2 Inspection of Constitutive Documents The copies of constitutive documents, such as the Deed and the Offering Document, can be inspected free of charge at the addresses given below, however such documents shall also be available on the web site of the Management Company: http://www.nit.com.pk National Investment Trust Limited 6th Floor, NBP Building, I. I. Chundrigar Road, Karachi, Pakistan. Central Depository Company of Pakistan Limited CDC House, 99-B, Block B, S.M.C.H.S, Main Shahra-e-Faisal, Karachi. 11.3 Transfer of Management Rights of the Fund The management rights of the Fund may be transferred to another Management Company upon the occurrence of any of the following events in accordance with the procedure laid down in the Regulation, the Deed and the Directive issued by the Commission;- Published Date 13-Sep-2021
66. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document (i) the Management Company goes into liquidation, becomes bankrupt or has a liquidator appointed over its assets, or its license has been cancelled or does not hold valid license; (ii) where the Management Company is unable to remove the suspension of redemption of Units of the Fund within the fifteen business days of suspension and the Unit Holders representing at least three fourth in value of total outstanding Units of the concerned scheme pass a resolution or have given consent in writing that the scheme be transferred to another Management Company; (iii) If in the opinion of the Commission further management of the Fund by the existing Management Company is detrimental to the interest of the Unit Holders, the Commission may direct the Trustee to transfer the Fund to another Management Company. (iv) If the Management Company may retire voluntarily with the prior written consent of the Commission. 11.4 Extinguishment/Revocation of the Fund The Fund may be extinguished by the occurrence of any of the following events in accordance with the procedure laid down in the Regulation, the Deed and the Directive issued by the Commission; (i) where the Management Company is unable to remove the suspension of redemption of Units of the Fund within the fifteen business days of suspension and the Unit Holders representing at least three fourth in value of total outstanding Units of the concerned scheme pass a resolution or have given consent in writing that the scheme be revoked; (ii) where the Management Company goes into liquidation, becomes bankrupt or has a liquidator appointed over its assets, or its license has been cancelled or does not hold valid license; (iii) in the opinion of the Management Company the scheme is not commercially viable or purpose of the scheme cannot be accomplished subject to the consent of Trustee; (iv) The Management Company subject to regulatory approval, may announce winding up of the Trust in the event redemption requests build up to a level where the Management Company is of the view that the disposal of the Trust Property to meet such redemptions would jeopardize the interests of the remaining Unit Holder(s) and that it would be in the best interest of all the Unit Holder(s) that the Trust be wound up. (v) on occurrence of any event or circumstances which, in the opinion of the Trustee, requires the Fund to be revoked; and (vi) where the Commission deems it necessary to revoke the Fund so directs either Trustee or the Management Company in the interest of Unit Holders; Published Date 13-Sep-2021
67. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document 11.5 Procedure and manner of Revocation of the Fund Revocation of the Fund shall be done in accordance with the procedures and in the manner as mentioned in the Regulations or through circulars / guidelines issued by the SECP from time to time. 11.6 Distribution of proceeds on Revocation In case of Revocation of the Fund the Trustee shall according to the procedure laid down in Regulations refund the net proceeds to the Unit Holders in proportion to the number of units held by them. 12. GLOSSARY Unless the context requires otherwise the following words or expressions shall have the meaning respectively assigned to them: “Accounting Date” means the thirtieth day of June in each year and any interim date on which the financial statements of the Trust are drawn up. Provided that the Management Company may, with the written consent of the Trustee and after obtaining approval from the Commission and the Commissioner of Income Tax may change such date to any other date and such change shall be intimated to the Commission. “Account Opening / Investment Account Opening Form” means standardized form prescribed by the Management Company to be duly filled by the investors at the time of opening an account with the Fund. “Accounting Period” means a period ending on and including an accounting date and commencing (in case of the first such period) on the date on which the Trust Property is first paid or transferred to the Trustee and (in any other case) from the next day of the preceding accounting period. “Act” means the Companies Act, 2017. “Administrative Plans” means investment plans offered by the Management Company and approved by the Commission, where such plans allow investors a specific investment strategy in any one or a combination of Schemes managed by the Management Company in accordance with the conditions specified by SECP. “Annual Accounting Period” or “Financial Year” means the period commence on 1st July and shall end on 30th June of the succeeding calendar year. “Asset Management Company” means an asset Management Company as defined in the Rules and Regulations. “Auditor” means the Auditor of the Trust appointed by the Management Company, with the consent of the Trustee, as per the Regulations. “Authorized Branches” means those Branches of Distributors or Distribution Companies which are allowed by the Management Company to deal in Units of the Funds managed by the Management Company. Published Date 13-Sep-2021
68. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document “Authorized Broker” means those Brokers which are authorized to deal in Government Securities. “Authorized Investments” means Authorized Investments as defined in the clause 3.3 of this Offering Document “Back-end Load” means the charge deducted from the Net Asset Value in determining the Redemption Price; provided however that different levels of Backend Load may be applied to different classes of Units, as specified in this document. “Bank” means institution(s) providing banking services under the Banking Companies Ordinance, 1962, or any other regulation in force for the time being in Pakistan, or if operating outside Pakistan, under the banking laws of the jurisdiction of its operation outside Pakistan. “Bank Accounts” means those account(s) opened and maintained for the Trust by the Trustee at Shari’ah compliant Banks, the beneficial ownerships in which shall vest in the Unit Holder(s). “Broker” means any person engaged in the business of effecting transactions in securities for the account of others. “Business Day” means any day (business hours thereof as specified in the Offering Document) on which banks are open for normal business. “Certificate” means the definitive certificate acknowledging the number of Units registered in the name of the Unit Holder issued at the request of the Unit Holder pursuant to the provisions of the Trust Deed. “CIS”/ “Collective Investment Scheme(s)” means Open-ended Scheme(s) managed by the Management Company and / or by other Asset Management Companies (both local and international). “Connected Person” shall have the same meaning as assigned in the Rules and Regulations. “Constitutive Documents” means the Trust Deed or such other documents as defined in the Regulations. “Custodian” means a Bank, a Depository or an Investment Finance Company licensed under the Regulations, which may be appointed by the Trustee in consultation with the Management Company to hold and protect the Trust Property or any part thereof as custodian on behalf of the Trustee, and shall also include the Trustee itself if it provides custodial services for the Fund. “Cut-Off Time” / “Business Hours” means the day time for dealing in Units of the Fund. The current Cut-Off Timing/Business Hours are mentioned in Annexure “B” of this Offering Document. “Dealing Day” means every Business Day from Monday to Friday of every week. Units will be available for dealing (purchase, redemption, transfer, switching etc) on Dealing Days during Cut-off Time. Provided that the Management Company may Published Date 13-Sep-2021
69. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document with the prior written consent of the Trustee and upon giving not less than seven days’ notice in two widely circulated English or Urdu newspapers in Pakistan declare any particular Business Day(s) not to be a Dealing Day(s). “DFI” means Development Financial Institution and includes the Pakistan Industrial Credit and Investment Corporation (PICIC), the Saudi Pak Industrial and Agricultural Investment Company Limited, the Pak Kuwait Investment Company Limited, the Pak Libya Holding Company Limited, the Pak Oman Investment Company (Pvt.) Limited, Investment Corporation of Pakistan, House Building Finance Corporation, Pak Brunei Investment Company Limited, Pak-Iran Joint Investment Company Limited, PakChina Investment Company Limited, and any other financial institution notified under Section 3-A of the Banking Companies Ordinance, 1962. “Distribution Account” means the Bank Account (which may be a current, saving or deposit account) maintained by the Trustee with a Bank as directed by the Management Company in which the amount required for distribution of income to the Unit Holder(s) may be transferred. Income or profit, if any, including those accruing on unclaimed dividends, in this account shall be transferred to the main account of the Fund from time to time, as part of the Trust Property for the benefit of the Unit Holder(s). “Distributor / Distribution Company” means Company(ies), Firm(s), Sole Proprietorship concern(s), individual(s), Banks or any other Financial Institution appointed by the Management Company under intimation to the Trustee for performing any or all of the Distribution Functions and who has obtained license as securities adviser from SECP under Securities and Futures Advisers (Licensing and Operations) Regulations, 2017. The Management Company may itself also performs the Distribution Function. “Distribution Function” means the functions with regard to: • • • • • receiving applications for issue of Units together with the aggregate Offer Price for Units applied for by the applicants; issuing receipts in respect of (a) above; interfacing with and providing services to the Holders including receiving redemption/transfer applications, conversion notices and applications for change of address or issue of duplicate Certificates for immediate transmission to the Management Company or the Transfer Agent as appropriate; accounting to the Management Company for all: (i) payment instruments received from the applicants for issuance of Units; (ii) payments instruments to the Holders on redemption of Units; and (iii) expenses incurred in relation to the Distribution Function. the above functions may be performed electronically, if appropriate systems are in place. “Duties and Charges” means in relation to any particular transaction or dealing all stamp and other duties, taxes, Government charges, bank charges, transfer fees, registration fees and other duties and charges in connection with the increase or decrease of the Trust Property or the creation, issue, sale, transfer, redemption or purchase of Units or the sale or purchase of Investment or in respect of the issue, transfer, cancellation or replacement of a Certificate or otherwise which may have become or may be payable in respect of or prior to or upon the occasion of the transaction or dealing in respect of which such duties and charges are payable, but Published Date 13-Sep-2021
70. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document do not include the remuneration payable to the Distribution Company or any Commission payable to agents on sales and redemption of Units or any Commission charges or costs which may have been taken into account in ascertaining the Net Asset Value. “Exposure” shall have same meanings as provided in the Regulations. “Federal Government” means the Federal Government of Islamic Republic of Pakistan. “Financial Institution” means a Bank, Development Finance Institution, Non-Banking Finance Company, Modaraba or an institution registered under relevant laws to provide financial services within or outside Pakistan. “Financial Sector” shall comprise of the savings and term deposits / certificates/ securities/ instruments issued by the entities of Banking Sector, Financial Services Sector, Life Insurance Sector and Non- Life Insurance Sector as classified by Pakistan Stock Exchange and DFIs. “Force Majeure” means any occurrence or circumstance or element which delays or prevents performance of any of the terms and conditions of this Deed or any obligations of the Management Company or the Trustee and shall include but not limited to any circumstance or element that cannot be reasonably controlled, predicted, avoided or overcome by any party hereto and which occurs after the execution of this Deed and makes the performance of the Deed in whole or in part impossible or impracticable or delays the performance, including but not limited to any situation where performance is impossible without unreasonable expenditure. Such circumstances include but are not limited to floods, fires, droughts, typhoons, earthquakes and other acts of God and other unavoidable or unpredictable elements beyond reasonable control, such as war (declared or undeclared), insurrection, civil war, acts of terrorism, accidents, strikes, riots, turmoil, civil commotion, any act or omission of a governmental authority, failure of communication system, hacking of computer system and transmissions by unscrupulous persons, closure of stock exchanges, banks or financial institutions, freezing of economic activities and other macro-economic factors, etc. “Formation Cost” means preliminary expenses relating to regulatory and registration fees of the Scheme, flotation expenses of the Scheme, expenses relating to authorization of the Scheme, execution and registration of the Constitutive Documents, legal costs, printing, circulation and publication of this Offering Document, announcements describing the Scheme and all other expenses incurred until the end of the Initial Period. “Front-end Load” means the Sales load which may be included in the offering price of the Units; provided however that different levels of Front-end Load may be applied to different investors, as determined by the Management Company. However aggregate of Front-end Load and Back-end Load should not exceed 3% of Net Asset Value. “Government Securities” includes monetary obligations of the Government or a Provincial Government or a corporation wholly owned or controlled, directly or indirectly, by the Federal Government or a Provincial Government and guaranteed Published Date 13-Sep-2021
71. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document by the Federal Government and any other security as the Federal Government may, by notification in the official Gazette, declare, to the extent determined from time to time, to be a Government Security. “Holder or Unit Holder” means the investor for the time being entered in the Register as owner of a Unit including investors jointly so registered pursuant to the provisions of the Trust Deed. “Initial Period” or “Initial Offering Period”. Means a period determined by the Management Company during which Units will be offered as mentioned in clause 2.9 of this Offering Document. “Initial Price” or “Initial Offer” means the price per Unit on the first day of the Initial Period determined by the Management Company. “Investment” means any Authorized Investment forming part of the Trust Property. “Investment Facilitators/Advisors” means an individual, firm, corporate or other entity appointed by the Management Company to identify, solicit and assist investors in investing in the Scheme. The investment facilitator/advisor is not authorized to perform the Distribution Functions. The Management Company shall compensate the Investment Facilitators. “Investment Form” means a standardized form prescribed by the Management Company to be duly filled by the investor to purchase Units and will be stated in this Offering Document. “Local Governments” mean all the local / city governments in Pakistan. “Management Company” is defined in the preamble hereto; “Net Assets of the Scheme” means the excess of assets over liabilities of the Scheme as specified under Regulations. “Net Asset Value” or "NAV” means Unit value of the Trust arrived at by dividing the Net Assets by the number of Units outstanding. “Offer Price or Purchase (Public Offer) Price” means the sum to be paid by the investor for purchase of one Unit, such price to be determined pursuant to this document. “Offering Document” means the prospectus or other document (issued by the Management Company with written consent of the Trustee and approved by the Commission) which contains the investments and distribution policy, unit structure(s) and all other information in respect of the Unit Trust, as required by the Rules and Regulations and is circulated to invite offers by the public to invest in the Scheme. “Online” means transactions through electronic data-interchange whether real time transactions or otherwise, which may be through the internet, intranet networks, fiber links and the like. “Ordinance” means the Companies Ordinance, 1984. Published Date 13-Sep-2021
72. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document “Par Value” means the face value of Rs.100/- for a Unit of the Fund. “Personal Law” means the law of inheritance and succession as applicable to the individual Unit Holder. “Pledge Form” means a standardized form prescribed by the Management Company to be duly filled by the investor to Pledge his/her Units and will be stated in this Offering Document. “Profit Distribution Date” means the date on which the Management Company decides to distribute the profits (if any). “Provincial Governments” mean the Provincial Governments of all four provinces of Pakistan. “Redemption Form” means a standardized form prescribed by the Management Company to be duly filled by the investor to redeem Units and will be stated in this Offering Document. “Redemption Price or Repurchase Price” means the amount to be paid to the relevant Holder upon redemption of that Unit, such amount to be determined pursuant to this document. “Register Function” means the functions with regard to: • • • • • • • • • • Maintaining the Register, including keeping a record of change of addresses/other particulars of the Holders; Issuing account statements to the Holders; Issuing Certificate, including Certificates in lieu of undistributed income to Holders; Cancelling old Certificates on redemption or replacement thereof; Processing of applications for issue, redemption, transfer and transmission of Units, recording of pledges, liens and changes in the data with regard to the Holders; Issuing and dispatching of Certificates; Dispatching bank transfer intimation and distributing bonus Units or partly both and allocating Units to Holders on re-investment of cash dividends; Receiving applications for redemption and transfer/transmission of Units directly from Holder or legal representatives or through Distributor; Maintaining record of lien/pledge/charge; and Keeping record of change of addresses/other particulars of the Holders. “Regular Interval” means monthly, quarterly, half yearly or annual periods. “Rules” mean Non-Banking Finance Companies (Establishment and Regulation) Rules 2003 as amended from time to time. “Regulations” mean Non-Banking Finance Companies and Notified Entities Regulations, 2008 and the Schedules and Forms attached to it as amended/replaced from time to time. Published Date 13-Sep-2021
73. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document “Sales Load” means Front end load and Back end load and any processing charges or Commission (excluding Duties and Charges) not exceeding three percent of NAV of Fund or as may be allowed under the Regulations, which may be included in the offer price of all or certain class of Units or deducted from the NAV of Fund in order to determine the Redemption Price of certain classes of Units. “SECP” or “Commission” means Securities and Exchange Commission of Pakistan established under Securities and Exchange Commission of Pakistan Act, 1997 and shall include its successor. “Shari’ah” means divine guidance as given by the Holy Qur'an and the Sunnah of Holy Prophet Muhammad (PBUH) and embodies all aspects of the Islamic faith, including beliefs, practices, rules and principles as per the interpretation of the Shari’ah Advisor of the fund. “Special Instruction Form” means a standardized form prescribed by the Management Company to be duly filled by the investor to change his/her particulars and will be stated in this Offering Document. “Stock Exchange” means Stock Exchanges registered under the Securities and Exchange Ordinance, 1969. “Sukuk” means a Sukuk as defined in Sukuk (Privately Placed) Regulations 2017. “Transaction Costs” means the costs incurred or estimated by the Management Company to cover the costs (such as, but not restricted to, Trustee charges, taxes or levies on transactions, etc.) related to the investing or disinvesting activity of the Trust’s portfolio, inter alia, necessitated by creation or cancellation of Units, which costs may be added to the NAV for determining the Offer Price of Units or to be deducted from the NAV in determining the Redemption Price. “Transfer Agent/Registrar Services” means a company including a Bank that the Management Company shall appoint for performing the Registrar Functions. The Management Company may itself perform the Registrar Function. “Transfer Form” means a standardized form prescribed by the Management Company to be duly filed by the investor to transfer Units and will be stated in this Offering Document. “Trust Deed” or “Deed” means the Trust Deed of the Fund executed between the Management Company and the Trustee along with all the exhibits appended hereto. “Trust” or “Unit Trust” or “Fund” or “Scheme” means the Unit Trust constituted by the Trust Deed for continuous offers for sale of Units. Words and expressions used but not defined herein shall have the meanings assigned to them in the Act and Rules and Regulations, words importing persons include corporations, words importing the masculine gender include the feminine gender, words importing singular include plural and words “written” or “in writing” include printing, engraving lithography, or other means of visible reproduction. The headings Published Date 13-Sep-2021
74. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document and table of contents are for convenience only and shall not affect the construction of the Trust Deed. Published Date 13-Sep-2021
75. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document ANNEXURE ‘A’ REMUNERATION OF TRUSTEE AND ITS AGENT The Trustee remuneration shall consist of reimbursement of actual custodial expenses/ charges plus the following tariff: NET ASSETS TARIFF 0.065% p.a. of Net Assets Trustee Fee subject to review by either party. However, any upward revision shall require prior approval of SECP. Published Date 13-Sep-2021
76. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document ANNEXURE ‘B’ Current Fee Structure and Load Details: Management Fee: Management Company shall be entitled to an accrued remuneration equal to upto 2% of gross earnings (minimum 0.05% and maximum 0.75% of net assets), within allowable expense ratio limit. AMC shall disclose actual rate of management fee charged as percentage of net asset of CIS in the monthly fund manager report. Front-end Load* Upto 1.0% of NAV Back-end Load NIL *Management Company may waive the Front-end Load fully or partially at its own discretion to any investor. Cut-Off Timings: Current Cut-Off Timing & Business Hours for dealing in Units: Every Dealing Day – 9:00 am to 3:30 pm Note: 1. Any upward change in the load and fee structure shall be notified through Supplemental Offering Document and/or management fee shall be notified after prior approval of the Commission through an addendum to this annexure and by publication in a widely circulated newspaper and/or as and how the SECP may direct. 2. Any change in the Cut-off Timing including for the month of Ramadan shall be notified to Investors/ Unit holders via Company’s Website. Published Date 13-Sep-2021
77. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document ANNEXURE "C" Designated Distribution Outlets Management Company of the Fund is National Investment Trust Limited. Forms and other information of the Fund can be collected from the address of the Management Company available on www.nit.com.pk or from the branches of the Distribution Company. National Investment Trust Limited 6th Floor, NBP Building, I. I. Chundrigar Road, Karachi as the Management Company Karachi, Pakistan UAN: +92 21 (111-648-648) (111-NIT-NIT) URL: www.nit.com.pk NITL BRANCH NETWORK NIT INVESTORS’ FACILITATION CENTRE QUETTA 08, Lakson Square, Building No. 1, Sarwar Shaheed Road, Opp. Karachi Press Club, Saddar, Karachi Tel: 021-35644561-63 Fax: 021-35644566 E-mail: ifc@nit.com.pk 2-13/7, M.A. Jinnah Road Tel: 081-2865583 Fax: 081-2832857 UAN: 081-111-648-648 E-mail: quetta@nit.com.pk KARACHI LAHORE SADDAR 270, Nacon House, Din Muhammad Wafai Road Tel: 021-99332973-4 Fax: 021-99332918 E-mail: nacon@nit.com.pk CIVIC CENTRE KDA Building, Sir Shah Suleman Road Tel: 021-99230524 Fax: 021-99230139 E-mail: civic@nit.com.pk TARIQ ROAD Suite No. G-4, Madina Arcade (Ground Floor), Sir Syed Ahmad Khan Road, PECHS, Block-2 Tel: 021-34540165 Fax: 021-34549236 E-mail: tariqrd@nit.com.pk CLIFTON Shop No.6, Yousuf Grand Square, Near Three Swords, Block-8 Tel: 021-35867962 Fax: 021-35375096 E-mail: clifton@nit.com.pk NAZIMABAD Suite No. 5 & 7, Hanif Centre, (Ground Floor), Near Hanif Hospital, Block ‘B’, North Nazimabad Tel: 021-36720220 Fax: 021-36720221 E-mail: nazimabad@nit.com.pk DHA Shop No. 2, Plot No. 40-C, Lane-3, Main Khayaban-e-Rahat (Commercial), Opposite DHACSS Degree College, Phase VI AL-FALAH Room No.211-212, Al-Falah Building, 15 Sharah-e-Quaid-e-Azam Tel: 042-36285210-11 Fax: 042-36285212 UAN: 042-111-648-648 E-mail: alfalahlhr@nit.com.pk GULBERG 1A, Raja Centre, (1st Floor), Main Boulevard, Gulberg II Tel: 042-35754440 Fax: 042-35710973 E-mail: gulberglhr@nit.com.pk DHA 307-Y (Commercial Area), Phase-III Tel: 042-35743584 Fax: 042-35743585 E-mail: dhalhr@nit.com.pk TOWNSHIP Glamour One Shopping Centre, (Ground Floor), PECO Road, Near Akbar Chowk Tel: 042-35213017 Fax: 042-35213018 E-mail: townshiplhr@nit.com.pk FAISALABAD ALLAMA IQBAL ROAD Platinum Centre, (2nd Floor), Allama Iqbal Road Tel: 041-2412495 Fax: 041-2412496 UAN: 041-111-648-648 E-mail: faisalabad@nit.com.pk Published Date 13-Sep-2021
78. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document Tel: 021-35844085 Fax: 021-35844086 E-mail: dhakhi@nit.com.pk HYDERABAD Civic Centre, Thandi Sarak, HDA Tel: 022-2728899 Fax: 022-2728734 UAN: 022-111-648-648 E-mail: hyderabad@nit.com.pk SUKKUR C 431/1A/1/2/1/3, Queens Paradise Building, Queens Road Tel: 071-5627084 Fax: 071-5627085 UAN: 071-111-648-648 E-mail: sukkur@nit.com.pk KOHINOOR Shop No. 15, (Lower Ground), Medicom Plaza Kohinoor, Jaranwala Road Tel: 041-8732495 Email: fsdbc@nit.com.pk MULTAN 3-Gold Crest Plaza, Azmat Wasti Road, Chowk Dera Adda Tel: 061-4542914 Fax: 061-4784043 UAN: 061-111-648-648 E-mail: multan@nit.com.pk GUJRAT PESHAWAR Shop No. 04, Gul Plaza, Gulzar-e-Madina Chowk, Opposite Qand Fishan Marriage Hall, G.T. Road Tel: 053-3729763 Fax: 053-3515530 E-mail: gujrat@nit.com.pk FC Trust Building, (Ground Floor), Soneri Masjid Road Tel: 091-5274848 Fax: 091-5286987 UAN: 091-111-648-648 E-mail: peshawar@nit.com.pk GUJRANWALA WAH CANTT. 42 A/B, Trust Plaza, (Ground Floor), G.T. Road Tel: 055-3255570 Fax: 055-3255571 UAN: 055-111-648-648 E-mail: gujranwala@nit.com.pk Office No. 3, First Floor, Mall View Plaza (CB-1), Sector-A (Shah Wali Colony), The Mall Tel: 051-4533453 E-mail: wahcantt@nit.com.pk SARGODHA ABBOTTABAD 16-A, Trust Plaza, (1st Floor), Fatima Jinnah Road Tel: 048-3728200 Fax: 048-3728201 UAN: 048-111-648-648 E-mail: sargodha@nit.com.pk Office No.1 (Ground Floor), Bilal Plaza, Behind Silk Plaza, Supply Mansehra Road Tel: 0992-343006 Fax: 0992-343005 UAN: 0992-111-648-648 E-mail: abottabad@nit.com.pk ISLAMABAD Kashmir Plaza, (Ground Floor), Jinnah Avenue, Blue Area Tel: 051-2828711 Fax: 051-2825181 UAN: 051-111-648-648 E-mail: islamabad@nit.com.pk RAWALPINDI 13/4 Al-Amin Plaza, The Mall, (Opp. Cantonment Board Building) Tel: 051-5701277 Fax: 051-9270962 E-mail: rawalpindi@nit.com.pk SIALKOT KUTCHERY ROAD 9-Kashmir Centre, Kutchery Road Tel: 052-4266648 Fax: 052-4266649 UAN: 052-111-648-648 E-mail: sialkot@nit.com.pk UGGOKI MORE Opp. UBL, Uggoki Morre, Wazirabad Road, Published Date 13-Sep-2021
79. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document Tel: 052-3570448 Email: uggoki@nit.com.pk MIRPUR (AZAD KASHMIR) Rehman Plaza, Opp. Ghazi Ellahi Baksh Degree College for Women, Sector B/4, Allama Iqbal Road Tel: 05827-442237 Fax: 05827-445237 E-mail: mirpur@nit.com.pk Published Date 13-Sep-2021
80. NIT Islamic Money Market Fund (NIT IMMF) - Offering Document ANNEXURE "D" FORMS All Forms are available on Management Company Website at www.nit.com.pk Published Date 13-Sep-2021