Atlas Pension Fund
Atlas Pension Fund (APF) was established by a Trust Deed dated June 8, 2007 between Atlas Asset Management Limited (AAML), as Pension Fund Manager and Central Depository Company of Pakistan Limited, (CDC) as Trustee.
The objective of introducing Atlas Pension Fund is to provide the individuals with a portable, individualized, funded (based on defined contribution), flexible pension scheme assisting and facilitating them to plan and provide for their retirement. Atlas Pension Fund is a one-window facility investment in diversified portfolio of equity securities offering consistent returns and capital growth and fixed income instruments offering consistent returns and lower risk. Consistent with this policy, the Contributions received from the Participants shall be allocated Units in APF – Equity Sub-Fund, APF – Debt Sub-Fund and APF – Money Market Sub-Fund in accordance with the Allocation Scheme selected by the Participant giving them not only the power over how much to invest in their pensions, and how to invest it, but also to continue investing in their pension accounts even if they change jobs.
| Fund Launch Date | : |
June 28, 2007 |
| Front-End Sales Load | : |
Nil |
| Management Fee | : |
Equity Sub-Fund: Upto 3.50% , Debt Sub-Fund: Upto 1.50% , Money Market Sub-Fund: Upto 1.25% Actual Rate of Management Fee will be disclosed in Monthly FMR |
| Registrar | : |
ITMinds Limited: 99-B, Block “B”, S.M.C.H.S., Shahrah-e-Faisal, Karachi |
| Trustee | : |
Central Depository Company of Pakistan Limited |
| Auditor | : |
A. F. Ferguson & Co. |
| Minimum Contribution | : |
Rs. 5,000/- or 10% of monthly income (whichever is lower) |
| Allocation Schemes |
Equity Sub-Fund
|
Debt Sub-Fund
|
Money Market Sub-Fund
|
| (i) High Volatility |
Min 65%
|
Min 20%
|
Nil
|
| (ii) Medium Volatility |
Min 35%
|
Min 40%
|
Min 10%
|
| (iii) Low Volatility |
Min 10%
|
Min 60%
|
Min 15%
|
| (iv) Lower Volatility |
Nil
|
Min 40%
|
Min 40%
|
| (v) Customized* |
0-100%
|
0-100%
|
0-100%
|
* Note: Customized allocation scheme should only be selected by participants who have an awareness of the various risks associated with investing in a particular assets class and are capable of making an informed investment decision after reviewing their risk/return requirements.
(vi) Lifecycle
Allocation (Sub-Funds) |
High Tolerance for Risk |
Moderate Tolerance for Risk |
Low Tolerance for Risk
|
||||||||||||
Equity |
80%
|
70%
|
50%
|
25%
|
15%
|
70%
|
60%
|
40%
|
20%
|
5%
|
60%
|
50%
|
30%
|
10%
|
NIL
|
Debt |
20%
|
30%
|
40%
|
45%
|
40%
|
30%
|
40%
|
50%
|
50%
|
45%
|
40%
|
50%
|
60%
|
55%
|
40%
|
Money Market |
NIL
|
NIL
|
10%
|
30%
|
45%
|
NIL
|
NIL
|
10%
|
30%
|
50%
|
NIL
|
NIL
|
10%
|
35%
|
60%
|
Ages (years) |
18-30
|
31-40
|
41-50
|
51-60
|
61 &
above |
18-30
|
31-40
|
41-50
|
51-60
|
61 &
above |
18-30
|
31-40
|
41-50
|
51-60
|
61 &
above |
- Pakistani national or over the age of eighteen years who hold a valid National Tax Number (NTN) or Computerized National Identity Card (CNIC).
- Employer on behalf of their employees.
- Non-resident Pakistani holding a National Tax Number (NTN) or National Identity Card for Overseas Pakistanis (NICOP).
- Accumulated balances from recognized provident fund can be transferred to APF.
Contributions made in Atlas Pension Fund during any one tax year (i.e. between July 1 to June 30) shall be entitled to a tax credit under Section 63 of the Income Tax Ordinance 2001. The amount of tax credit allowed in any one tax year shall be calculated according to the following formula: (A / B) x C where;
A. Is the amount of tax assessed to the person for the tax year, before allowance of any tax credit under this part;
B. Is the person’s taxable income for the tax year;
C. Is the lesser of:
- the total contribution to VPS in this year; or
- 20% of the eligible person’s taxable income for the relevant tax year.
The Pension Fund Manager provides worldwide accidental death and disability coverage up to the age of 60 years, through Jubilee Life Insurance Company Limited. The sum insured shall be the lower of 100 times of monthly contribution amount or Rs. 4,000,000/- (The premium cost is to be borne by the participant who opts for insurance coverage and it will be deducted from the contribution amount).
You select your retirement age which can be anytime between the ages of 60 and 70 or 25 years of maintaining a VPS account whichever is earlier.
Benefits at Retirement:
At retirement, you can choose to do any of the following without incurring any tax liabilities:
- Withdraw up to fifty per cent (50%) of the accumulated amount in your Individual Pension Account as cash (any amount beyond this limit will be taxed at a rate equal to your average rate of tax of the last three consecutive years, as specified in the Income Tax Ordinance, 2001); and
- Use the remaining amount to purchase an Approved Annuity Plan from a Life Insurance Company of your choice; or
- Enter into an agreement with the Pension Fund Manager to transfer the remaining balance to an Approved Income Payment Plan offered by the Pension Fund Manager or another pension fund manager and withdraw from it, monthly installments for up to fifteen years following the date of retirement; after which the remaining amount can be used to purchase an annuity from a Life Insurance Company of your choice.
Note: Any withdrawals from pension funds will be subject to withholding tax as per Income Tax Ordinance, 2001
Disclaimer: All investments in pension funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependent on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies, the risks involved and tax implications. Withdrawals before the retirement age are subject to tax under provisions of the Income Tax Ordinance 2001.
