SECP releases performance report of private pension funds

Observer Report

Islamabad—Private pension funds were introduced in 2007 under the Voluntary Pension System Rules, 2005. At present, there are 17 pension funds, out of which nine are Sharia-compliant. These funds are managed by nine pension fund managers who have extensive experience in managing pooled investments. The pension funds provide participants with options to invest in equity, debt, money market and commodities. Participants can also choose allocation policy depending on their risk appetite and return preferences.
All persons holding CNIC are eligible to become members of pension funds so as to accumulate savings and earnings for their retired life. Tax credit of up to 20% of taxable income is available on investment in pension funds. Moreover, persons above 40 years of age can avail even higher tax benefits under provisions of the Income Tax Ordinance, 2001. Participants have the flexibility to choose their retirement age between 60 to 70 years. At retirement, they can withdraw up to 50% of the accumulated balance in lump sum and the remaining 50% in installments, as a pension.The government has provided a conducive and tax-efficient system to encourage savings for social and economic wellbeing of the public. With growing awareness about VPS, interest in private pension funds is on the rise.
The assets of private pension funds have shown a noticeable growth since these funds were set up. The total net assets of the pension fund industry are currently over Rs18 billion, contributed by more than 10,000 participants as against an estimated Rs13 billion in 2015 contributed by around 7,000 participants. The fund managers, depending on the asset class, charge fee ranging from 0.5% to 1.5% per annum from the pension funds. Periodic performance of the pension funds relating to the last five financial years released by the SECP is given below:

Sharia-compliant pension funds
Equity sub-funds Yearly returns
2012 2013 2014 2015 2016
Meezan Tahaffuz Pension Fund 16.80% 54.90% 32.40% 26.60% 18.10%
Atlas Pension Islamic Fund 30.05% 49.02% 24.88% 24.32% 4.99%
Pakistan Islamic Pension Fund 24.70% 41.80% 42.10% 39.53% 14.84%
JS Islamic Pension Savings Fund 18.29% 55.71% 49.02% 32.03% 4.13%
Al-Ameen Islamic Retirement Savings Fund 14.17% 55.55% 41.13% 45.54% 19.05%
HBL Islamic Pension Fund 19.93% 50.30% 44.41% 25.92% 5.56%
NAFA Islamic Pension Fund N/A N/A 36.30% 51.50% 16.90%
ABL Islamic Pension Fund N/A N/A N/A 30.84% 11.31%
NIT Islamic Pension Fund N/A N/A N/A 0.04% 6.67%
Debt sub-funds Yearly returns
2012 2013 2014 2015 2016
Meezan Tahaffuz Pension Fund 9.50% 8.30% 7.70% 6.40% 4.50%
Atlas Pension Islamic Fund 6.98% 7.79% 8.04% 5.53% 4.23%
Pakistan Islamic Pension Fund 8.40% 6.80% 8.22% 4.76% 4.04%
JS Islamic Pension Savings Fund 10.01% 7.86% 6.76% 3.90% 3.91%
Al-Ameen Islamic Retirement Savings Fund 9.79% 8.13% 7.48% 5.49% 3.39%
HBL Islamic Pension Fund 6.95% 8.67% 7.04% 4.97% 3.23%
NAFA Islamic Pension Fund N/A N/A 8.20% 5.60% 3.80%
ABL Islamic Pension Fund N/A N/A N/A 6.56% 3.52%
NIT Islamic Pension Fund N/A N/A N/A 3.55% 3.06%
Money market sub-funds Yearly returns
2012 2013 2014 2015 2016
Meezan Tahaffuz Pension Fund 10.90% 7.80% 6.90% 6.90% 4.00%
Atlas Pension Islamic Fund 9.61% 7.12% 7.67% 5.97% 4.21%
Pakistan Islamic Pension Fund 8.30% 7.70% 6.86% 4.80% 2.36%
JS Islamic Pension Savings Fund 9.66% 6.56% 6.64% 5.32% 2.41%
Al-Ameen Islamic Retirement Savings Fund 8.87% 7.79% 6.56% 5.69% 3.13%
HBL Islamic Pension Fund 7.91% 7.70% 6.08% 5.28% 2.82%
NAFA Islamic Pension Fund N/A N/A 7.50% 6.20% 3.90%
ABL Islamic Pension Fund N/A N/A N/A 6.31% 2.24%
NIT Islamic Pension Fund N/A N/A N/A 3.58% 2.79%
Conventional pension funds
Equity sub-funds Yearly returns
2012 2013 2014 2015 2016
JS Pension Savings Fund 17.09% 78.21% 61.51% 22.91% 3.35%
Atlas Pension Fund 16.72% 52.48% 35.30% 21.13% 4.50%
Pakistan Pension Fund 15.10% 55.70% 49.60% 37.95% 10.77%
UBL Retirement Savings Fund 11.53% 66.42% 39.90% 47.71% 20.33%
HBL Pension Fund 22.44% 45.43% 25.56% 31.58% 8.96%
NAFA Pension Fund N/A N/A 39.00% 49.60% 14.80%
ABL Pension Fund N/A N/A N/A 28.79% 10.56%
NIT Pension Fund N/A N/A N/A 0.19% 1.22%
Debt sub-funds Yearly returns
2012 2013 2014 2015 2016
JS Pension Savings Fund 11.12% 11.42% 4.36% 10.75% 5.29%
Atlas Pension Fund 10.16% 8.47% 7.83% 13.03% 7.88%
Pakistan Pension Fund 10.90% 10.10% 7.16% 16.85% 7.35%
UBL Retirement Savings Fund 10.84% 9.90% 7.80% 19.42% 12.29%
HBL Pension Fund 8.05% 8.91% 7.44% 11.01% 8.04%
NAFA Pension Fund N/A N/A 8.20% 17.30% 5.50%
ABL Pension Fund N/A N/A N/A 20.92% 12.14%
NIT Pension Fund N/A N/A N/A 6.64% 3.90%
Money market sub funds Yearly returns
2012 2013 2014 2015 2016
JS Pension Savings Fund 10.69% 11.34% 6.91% 6.69% 4.10%
Atlas Pension Fund 10.35% 8.15% 7.59% 7.93% 5.74%
Pakistan Pension Fund 10.30% 8.20% 7.15% 7.17% 4.40%
UBL Retirement Savings Fund 10.32% 8.52% 7.19% 7.27% 4.60%
HBL Pension Fund 8.36% 7.92% 7.13% 6.88% 4.15%
NAFA Pension Fund N/A N/A 7.60% 7.80% 4.90%
ABL Pension Fund N/A N/A N/A 6.14% 4.15%
NIT Pension Fund N/A N/A N/A 6.64% 3.87%
Commodity sub-funds Yearly returns
2012 2013 2014 2015 2016
Atlas Pension Fund N/A N/A 6.18% 4.60% 12.92%
UBL Retirement Savings Fund N/A N/A 3.33% 2.83% 13.77%
NIT Pension Fund N/A N/A N/A 0.20% 10.05%

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