Brief Introductory Presentation on Alfalah ETF

1. ALFALAH CONSUMER INDEX EXCHANGE TRADED FUND (ACIETF)
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2. Table of Contents
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Exchange Traded Fund
 Definition & Concept
 Main Features of ETFs
 Advantages of ETFs
 Types of ETFs
 Parties of ETFs
 Comparison (Mutual Funds vs. ETFs)
Alfalah Consumer Index Exchange Traded Fund (ACIETF)
Annexure
 Overview of ETFs available in Pakistan

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An exchange traded fund (ETF) is a basket of securities
that trade on an exchange, just like a stock.
ETF share prices fluctuate all day as the ETF is bought and
sold; this is different from mutual funds that
only trade once a day after the market closes.
Exchange Traded Fund
Concept & Definition

4. 4
Exchange Traded Fund
Main Features
Basket of Securities:
An ETF, Exchange Traded Fund, is a type of fund that holds a basket of securities (e.g.
stocks) that generally tracks an underlying Index. Because there are multiple scrips
within an ETF, they can be a popular choice for investors seeking diversification.
Retail Investors’ Demand:
Internationally, the demand for ETFs from retail investors has been increasing owing to
the convenience and lack of financial acumen (or time) on part of the investors to
make lucrative stock picks.
Can be Tens of Stocks or Particular Industry
An ETF can have tens of stocks across various industries or it could be isolated to one
particular industry. For example, a banking-focused ETF would contain various stocks
from the banking industry. An ETF can also track an existing index like the KSE – 30
index etc.
Bought & Sold like Stocks
An ETF is a tradable security, that is it can be bought and sold on a stock exchange
just like stocks. The price of ETF shares will change throughout the trading day as the
shares are bought and sold on the market

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Exchange Traded Fund
Advantages
Flexibility
ETFs can be
bought & sold on
an Exchange at
any time during
market hours
Lower Cost
Generally ETFs are
less expensive
than investing in
MFs
Diversification
Provides instant
access to a
diversified portfolio
in a single trade day
Transparency
Reports a
published on a
daily basis to keep
track of investors’
holdings

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Exchange Traded Fund
Types
Actively-Managed ETFs
There are also actively-managed ETFs, where portfolio
managers are more involved in buying and selling
shares of companies and changing the holdings within
the fund. Typically, a more actively managed fund will
have a higher expense ratio than passively-managed
ETFs

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Exchange Traded Fund
Parties / Stake Holders
Following parties are directly associated with the Creation Redemption and
trading of ETF securities and are defined in this document;
 Assets Management Company of the scheme
 Trustee of the scheme
 Authorized Participants of the scheme
 Market Maker of the scheme
 Stock Exchange

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Exchange Traded Fund
Authorized Participant
An authorized participant is an organization that has the right to create and redeem
shares of an exchange traded fund (ETF).
They provide a large portion of the liquidity in the ETF market by obtaining the
underlying assets required to create the shares of an ETF. When there is a shortage of
ETF shares in the market, authorized participants create more.
Authorized participants will reduce ETF shares in circulation when the price of the ETF
is lower than the price of the underlying shares. That can be done with the creation and
redemption mechanism that keeps the price of an ETF aligned with its underlying net
asset value (NAV).

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Exchange Traded Fund
Authorized Participant
Exchange Traded Funds Mutual Funds
Market Exposure
 Primarily index based, some are actively managed.
Trading / Pricing
 ETFs can be bought or sold at current market price
throughout the day
 It can be traded on the Exchange through a brokerage
account
 NAV is updated in real time throughout the market
hours
Transparency
 Underlying holdings are published every trading day
Fees
 Generally have low management fees
 Brokerage firm charges a commission
 Actively managed or index based
 Mutual funds can be purchased & redeemed at the end
of the day NAV
 It is not traded on the Exchange
 NAV is updated at the end of the day
 Holdings are generally disclosed monthly by AMCs
 Usually have high management fees
 Mutual funds may include sales fees

10. Alfalah Consumer
Index Exchange
Traded Fund
(ACIETF)
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11. 11
Alfalah Consumer Index Exchange Traded Fund
(ACIETF)
Fund Name Alfalah Consumer Index Exchange Traded Fund (ACIETF)
Fund Category Open End – Exchange Traded Fund
Fund Manager Alfalah GHP Investment Management Limited
Risk Profile
(As per Circular 2 of 2020)
High
Risk of Principal Erosion Principal at very high risk
Duration Perpetual
Investment Objective Alfalah Consumer Index Exchange Traded Fund (ACIETF) is an open-ended scheme that is traded on
Pakistan Stock Exchange and shall aim to track the performance of the Benchmark index. The index
shall be periodically re-balanced & reconstituted in order to provide long-term capital appreciation
and dividends yield to the investors.
Investment Policy The Index strategy would be consumer focused and would comprise of a maximum of 20 stocks. The
ETFs focuses on sectors which are direct beneficiaries of growing consumer demand in the country
which is anticipated to strengthen further in wake of economic recovery, low interest rate
environment & various packages announced by the Government. The Fund invests in a particular
basket of the securities and to track the performance of a representative securities index,
which is constituted by the Management Company and managed by PSX

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Alfalah Consumer Index Exchange Traded Fund
(ACIETF)
Benchmark The benchmark of the fund shall be to track the performance of index based on weighted average
cumulative performance of all securities included in the index.
Alfalah Consumer Index Exchange Traded Fund Benchmark Index
Security Selection
Determination of Weight Maximum weight of a single stock in the index will be 10%.
Sector Selection
Security Selection
Free Float Market Cap
T
op c om p a nies am o ng p re-d efined sec tors tha t ha ve
the hig hest free floa t b a sed m arket c a p in the sec tor on
ind ex reb ala nc ing a nd / or Ad d ition/ d eletion d a tes i.e.
30th June a nd 31st Dec em b er of ea c h yea r.
One (1) year daily
average trading volume
S
toc ks with a 1 yea r d a ily a vera g e tra d ing volum e of
100,000 sha res or a b ove
Sector No of Companies
CEMENT 4
ENGINEERING 4
T
EXT
ILE COMPOS
IT
E 4
AUT
OMOBILE AS
S
EMBLER 2
FOOD & PERS
ONAL CARE
PRODUCT
S 2
OIL & GASMARKET
ING
COMPANIES 2
PHARMACEUT
ICALS 2
T
otal 20

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Alfalah Consumer Index Exchange Traded Fund
(ACIETF)
0
200
400
600
800
1,000
Jun-12
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
Dec-15
Jun-16
Dec-16
Jun-17
Dec-17
Jun-18
Dec-18
Jun-19
Dec-19
Jun-20
Dec-20
Jun-21
Dec-21
Alfalah Consumer Index ETF
KSE-100 Index
*Absolute Return% Simulated performance for 10 years
* Net of Industry Average Expense Ratio of 2%
293%
466%

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Alfalah Consumer Index Exchange Traded Fund
(ACIETF)
Number of Companies: Sector Wise
Cement 4
Textile Composite 4
Engineering 4
Oil & Gas Marketing Companies 2
Pharmaceuticals 2
Food & Personal Care Products 2
Automobile Assembler 2
ACIETF Index Constituents
Sr No Symbol Company Sector
1 HCAR Honda Atlas Cars (Pakistan) Limited Automobile Assembler
2 PSMC Pak Suzuki Motor Company Limited Automobile Assembler
3 LUCK Lucky Cement Limited Cement
4 DGKC D.G. Khan Cement Company Limited Cement
5 MLCF Maple Leaf Cement Factory Limited Cement
6 CHCC Cherat Cement Company Limited Cement
7 INIL International Industries Limited Engineering
8 ISL International Steels Limited Engineering
9 Mughal Mughal Iron & Steel Industries Limited Engineering
10 ASL Aisha Steel Mills Limited Engineering
11 UNITY Unity Foods Limited Food & Personal Care Products
12 FCEPL Frieslandcampina Engro Pakistan Limited Food & Personal Care Products
13 PSO Pakistan State Oil Company Limited Oil & Gas Marketing Companies
14 SNGP Sui Northern Gas Pipelines Limited Oil & Gas Marketing Companies
15 SEARL The Searle Company Limited Pharmaceuticals
16 AGP AGP Limited Pharmaceuticals
17 NML Nishat Mills Limited Textile Composite
18 ILP Interloop Limited Textile Composite
19 GATM Gul Ahmed Textile Mills Limited Textile Composite
20 NCL Nishat Chunian Limited Textile Composite

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Thanks!

16. Annexure - Overview
of ETFs Operating in
Pakistan
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17. Overview of ETFs Operating in Pakistan
UBL Pakistan Enterprise Exchange Traded Fund
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18. Overview of ETFs Operating in Pakistan
NIT Pakistan Gateway Exchange Traded Fund
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19. Overview of ETFs Operating in Pakistan
NBP Pakistan Growth Exchange Traded Fund
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20. Overview of ETFs Operating in Pakistan
Meezan Pakistan Exchange Traded Fund
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21. Risk Disclaimer: Participants and prospective participants are
advised in their own interest to carefully read the contents of
this offering document in particular the risk factors and
warnings before making any investment decision.
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