KARACHI – UBL Fund Managers Limited, after the successful launch of AIPPF-I – AIPPF-IV, introduced Al-Ameen Islamic Principal Preservation Fund V (AIPPF-V), the fifth fund in the principal preservation series recently.
Capital preservation funds are based on constant proportion portfolio insurance (CPPI) methodology which is a world recognized capital/preservation methodology based on dynamic asset allocation between equity and fixed income assets. CPPI methodology offers up to 100% exposure into equities along with preservation of the principal investment amount. UBL Fund Managers Limited was the first Asset Management Company to launch CPPI based funds in Pakistan. The first fund in this category, UBL Principal Protected Fund I (UPPF I) was launched in 2012 and gave an annualized return of 27.87% per annum to investors over a two year period,against a benchmark return of 36.25% per annum.
UBL Fund Managers Limited, after the closure of AIPPF IV IPO in October 2014, is now the largest fund manager of CPPI Funds in Pakistan, managing an AUM of PKR 8bn*, which include both Conventional and Islamic CPPI based funds.
“We are grateful to our investors for their continued trust in our products and services,” said Mr. Mir Muhammad Ali, CEO UBL Fund Managers Limited, “The successful closure of AIPPF IV, amidst political instability and unstable law and order situations in the country, strengthens our belief of the confidence our investors have in us. This reinforced the demand of CPPI based funds, which led us to introduce the fifth fund in the series.”
He further added, “UBL Fund Managers Limited has been consistently delivering on its promise of innovative products, competitive returns and excellence in services, earning us the reputation as one of the leading Asset Management Companies in Pakistan.”
Al-Ameen Islamic Principal Preservation Funds (formerly UBL Islamic Principal Preservation Funds) I, II, III and IV will mature in April 2015, November 2015, June 2016 and October 2016 respectively. Managed under the supervision of Shariah Advisors; Mufti Mohammad HassaanKaleem and Mufti Muhammad Najeeb Khan, this fund will be investing in the Al-AmeenShariah Stock Fund to take exposure in Equities, while Al-Ameen Islamic Sovereign Fund and Al-Ameen Islamic Cash Fund will be used to take exposure in Fixed Income or Money Market Instruments.