Pension Funds

Regulatory Framework

The SECP regulates the VPS. The pension fund managers, pension funds and trustees are subject to monitoring by the SECP.
The VPS is governed by the following laws:

>    Part VIII of the Companies Ordinance, 1984;
>    Voluntary Pension System Rules, 2005;
>    Circulars

Other applicable laws
>    Income Tax Ordinance, 2001; and
>    Trust Act, 1882.

Net Asset Value of a Sub-Fund

The net asset value per unit of a sub-fund represents the value at which the units of the respective sub-funds can be issued or redeemed each working day. This value represents the share of each unit of sub-fund in the net assets of the pension fund. It is calculated for each sub-fund by dividing the net assets of that sub-fund by the number of units outstanding in respect of that sub-fund.

               NAV=     Net Assets of the Sub Funds – Expenses – Liabilities
                                         Total Number of Units Outstanding