NBP Islamic Punjab Pension Fund

NBP Islamic Punjab Pension Fund

Investment Objective of the Plan:

The Investment objective of NBP Islamic Punjab Pension Fund is to provide a secure source of savings and regular income after retirement to the Employee(s).

The NBP Islamic Punjab Pension Fund will consist of four (4) Sub-Funds as below and their investment objectives are as follows:

  1. NBP Islamic Punjab Pension Fund – Equity Active Sub Fund (the Equity Sub Fund): To earn returns from investments in Pakistani Capital Markets.
  2. NBP Islamic Punjab Pension Fund – Debt Sub Fund (the Debt Sub Fund): To earn returns from investments in debt markets of Pakistan, thus incurring a relatively lower risk than equity investments.
  3. NBP Islamic Punjab Pension Fund – Money Market Sub Fund (the Money Market Sub Fund): To earn returns from investments in Money Markets of Pakistan, thus incurring a relatively lower risk than debt investments.
  4. NBP Islamic Punjab Pension Fund – Equity Index Sub Fund (the Equity Index Sub Fund): To provide investors an opportunity to track closely the performance of the KMI 30 by investing in companies of the Index in proportion to their weightages.

KEY BENEFITS

  • Earn competitive halal returns as compared to other investment avenues
  • Under the supervision of Shariah Supervisory Board
  • Free Takaful Coverage of up to Rs. 20 Lacs in case of accidental death before attaining retirement age. (Terms & Conditions Apply)
Management Fee Maximum Total Expense Ratio excluding Takaful charges and government taxes and levies
(as % of average daily net assets)
Total Asset Under Management (AUM) with a single Pension Fund Manager
Relating to GoPb employees
Money Market
Sub Fund
Debt
Sub Fund
Equity Index
Sub Fund
Equity Active
Sub Fund
Up to PKR 10 billion 0.75% 0.75% 1.00% 1.75%
Greater than PKR 10 billion up to PKR 20 billion 0.70% 0.70% 0.95% 1.70%
Greater than PKR 20 billion up to PKR 30 billion 0.60% 0.60% 0.85% 1.60%
Greater than PKR 30 billion 0.50% 0.50% 0.75% 1.50%
Takaful charges (as % of average daily net assets) To be charged on actual basis to the Participants accounts as per the limits and pricing mutually decided by the Punjab Govt. and PFM
Risk Profile of the fund as per their allocation
Allocation Plan Risk Profile (Product & Investor) Risk of Principal Erosion
Customized Plan with 100% in Money Market Sub Fund Very Low Risk Principal at very Low Risk
Lifecycle Plan (for age 60 years & above) Low Risk Principal at Low Risk
Lifecycle Plan (for age between 50-59 years)
Customized Plan with 0% – 20% Equity Active Sub Fund aggregate exposure
Moderate Principal at Moderate Risk
Medium Volatility Plan
Lifecycle Plan (for age between 51-60 years)
Customized Plan with 26% – 50% Equity & Commodity Sub Fund aggregate exposure
Medium Risk Principal at Medium Risk
High Volatility & Life Cycle Plans (up to the age of 50 years)
Customized Plan with more than 50% Equity & Commodity Sub Fund aggregate exposure
High Risk Principal at High Risk

Life Cycle Allocation Scheme
Age Equity Index Sub Fund Equity Active Sub Fund Combined Exposure to Equity Debt / Money Market Sub Fund
For the period of 3 years from date of account opening 0% 0% 0% 100% (Money Market Sub Fund only)
Up to 30 Years Max 50% Max 25% Max 50% Min 50%
Up to 40 Years Max 40% Max 20% Max 40% Min 60%
Up to 50 Years Max 30% Max 15% Max 30% Min 70%
Up to 60 Years Max 20% Max 10% Max 20% Min 80%
Default Asset Allocation Scheme
Age Equity Index Sub Fund Equity Active Sub Fund Debt Sub Fund Money Market Sub Fund
For the period of 3 years from date of account opening 0% 0% 0% 100%
Up to 30 Years 30% 10% 30% 30%
Up to 40 Years 20% 10% 30% 40%
Up to 50 Years 15% 5% 20% 60%
Up to 60 Years 10% 0% 10% 80%

CHOOSE THIS PLAN IF YOU WANT TO

  • Have attractive returns compared to other saving avenues

 

FUND FACTS

Fund Category Open End Shariah Compliant Voluntary Pension Scheme
Fund Inception November 28, 2025
Minimum Contribution Amount No Limit
Allocation Policy
  1. Equity Active Sub-fund: Assets of an equity Active sub-fund shall be invested in shariah compliant equity securities which are listed on a Stock Exchange or for the listing of which an application has been approved by a Stock Exchange and Equity Active sub-fund shall be eligible to invest in units of shariah compliant Real Estate Investment Trusts / Exchange Traded Fund provided that entity/sector/group exposures limits as prescribed are complied with.

  1. Debt Sub-fund: The Debt Sub-fund shall consist of shariah compliant government securities, cash in Islamic banks /Islamic windows of Conventional Bank’s , Islamic money market placements, Shariah compliant deposits, Shariah compliant certificate of deposits (COD), certificate of musharakas (COM), Islamic TDRs, Islamic commercial paper, Sukuk or any other Islamic mode of placement, Bai Muajjal , deposits/placements with shariah compliant Microfinance Banks and any other approved Shariah compliant debt/ money market security issued from time to time

  1. Money Market Sub-fund: The Money Market Sub-fund shall consist of shariah compliant government securities, cash and near cash instruments which include cash in Islamic banks/Islamic window of conventional banks accounts (excluding TDRs), , Islamic money market placements, Shariah compliant deposits, Shariah compliant certificate of deposits (COD), certificate of musharakas (COM) or any other Islamic mode of placement, Islamic

 

  1. TDRs, Islamic commercial papers, Bai Muajjal Equity Index Sub-fund: The Investment Objective of the Equity Index Sub-Fund is to provide investors an opportunity to track closely the performance of the KMI -30 by investing in companies of the Index in proportion to their weightages.

Performance Benchmark Money Market Sub Fund 90% three (3) months PKISRV rates+ 10% three (3) months average of the highest rates on savings account of three (3) AA rated scheduled Islamic Banks or Islamic windows of Conventional Banks as selected by MUFAP.
Debt Sub Fund 75% Twelve (12) months PKISRV + 25% six (6) months average of the highest rates on saving account of three (3) AA rated schedule Islamic banks or Islamic windows of conventional banks as selected by MUFAP.
Equity Active Sub Fund KMI – 30 Index (Total return index)
Equity index Sub Fund Return of the shariah compliant index being tracked by the PFM (Total return based).
Dealing Days Monday to Thursday: 9:00 am – 3:00 pm

Friday: 9:00 am – 4:00 pm.

In case there is Bank Holiday, then it will be a non-dealing business day for of NBP Islamic Punjab Pension Fund and all sub-Funds

Front End Load NIL
Back End Load NIL
Total Expense Ratio Participants are advised to consult the Fund Manager Report (FMR) of the respective Pension

Fund for the latest information pertaining to the updated TER.

Applicable Taxes

Disclaimer – Tax Credit U/s 63 of Income Tax Ordinance, 2001 on sources of income from “salary” and “business income” on investment up to 20% of taxable income can be availed on contributions made in any tax year. Currently there is no Capital Gains tax and WHT on dividends, also there is no requirement for distribution dividends from Pension sub-funds). Income from Annuity & Income Payment Plans is subject to income tax as per Income Tax Ordinance, 2001.

Whom is this product suitable for?

The product is suitable for Punjab Govt.’s Civil Servants who want to avail tax benefits as well as individualized allocation for their retirement savings and earn income after retirement from the Scheme. Tax credit U/s 63 of Income Tax Ordinance, 2001 is available against contributions made in a tax year for salary income. Accumulation/gains are currently tax free and participant can withdraw

up to 25% of accumulated amount at the time of retirement from Scheme, making it a tax efficient retirement/pension scheme.

Return Objectives

Accumulation of pre-retirement savings through various asset allocation plans invested if one or many Sub-Funds of different asset classes, ideally for medium to long-term investment horizon and earn market based or annuity based post-retirement income.

Minimum Retirement Age

Retirement age of an Employee shall be such date as given below.

i. the date after Participant / Employee has completed twenty years of service qualifying for pension or other retirement benefits as the competent authority may, in public interest, direct; or

ii. where no direction is given under clause (i) on the completion of the sixtieth year of his age.

iii. or any date as defined in Punjab Civil Servant Act 1974

Options available to participants upon retirement

a. to withdraw up to 25% percent of amount from his Individual Pension account; and

b. to use the remaining amount to purchase an annuity from Takaful Company or Pension Fund Manager, of his choice; or

c. to enter into an agreement with the Pension Fund Manager to withdraw from the remaining amount in monthly installments following the date of retirement according to an income payment plan approved by the Commission with a minimum tenure of at least 20 years or till his death, whichever is earlier.

Early Withdrawal Conditions & implications

Participants cannot withdraw any amount from his pension account before attaining the retirement age. Participants upon leaving service before attaining the retirement age may, by informing the Punjab Pension Fund in writing, to opt to no longer be subject to Punjab Defined Contribution Pension Scheme Rules, 2025 and transfer his pension account from the employer pension fund to another employer pension fund or withdraw accumulated balance in his pension account subject to VPS Rules, 2005 and other applicable laws.

Asset Manager Rating AM1 by PARCA (Very High Quality)
Trustee Central Depository Company of Pakistan (CDC)
Fund Investment Risk

Disclaimer: All investments in the Pension Funds are subject to market risks. The value of such investments may depreciate as well as appreciate, subject to market fluctuations and risks inherent in all such investments. Investors should read this Offering Document carefully to understand the investment policies, risks and tax implication and should consult legal, financial or tax advisors before making any investment decision.

For Detail referrer clause 7.10 & 7.11 of the Offering Document of NBP Islamic Punjab Pension Fund

Disclaimer: All our operations have been approved by our Shari’ah Advisor Mufti Ehsan Waquar Ahmad whose registration reference number is SECP/IFD/SA/004. Fund Category Open -end – Shariah Compliant Voluntary Pension Scheme; tax exemption are Subject to condition as per section 63 of the income tax ordinance, 2001; Terms and condition apply; Disclaimer: All investment in pension funds are subject to market risk. Past performances is not necessarily indicative of future results. Please read the offering documents to understand the investment policies and the risk involved. NBP Fund Management Limited will play a facilitating role by assisting the insured or the nominee in the claim processing. NBP Fund Management Limited or any of its sales representative cannot guarantee preservation / protection of capital and / or expected returns / profit on investments. In case of initiation of any legal proceeding or any case is filed against the pension fund impacting any sub-fund(s), may also affect the unit holders of other sub-fund(s) under the same pension fund. The use of the name and logo of National Bank of Pakistan does not mean that it is responsible for the liabilities / obligations of the Company (NBP Fund Management Limited) or any investment scheme managed by it.