UBL Funds launches the UBL Principal Protected Fund 2
After the successful introduction of UBL Principal Protected Fund 1(UPPF-1) and the UBL Islamic Principal Preservation Fund 1 (UIPPF-1), UBL Funds has launched another fund under the principal protected series by the name of UBL Principal Protected Fund 2 (UPPF 2). The IPO for investing in this fund begins from 15 July till 17th July 2013.
With UPPF 2, Investors can benefit from up to 100% exposure to equity market while ensuring that their principal amount remains protected. Historically we have seen that the equity market has been among the best performing investment avenues with an absolute return of 517% over the last ten years (from 1st July 2003 to 30th June 2013).
With a term period of 2 years, investment in this fund can be initiated with just Rs. 10,000. UPPF2 employs Constant Proportion Protection Insurance (CPPI) methodology, which was introduced for the first time in Pakistan by UBL Funds, for onward investments.
The CPPI method maximizes exposure to equities in a bullish market to benefit from the gain, while in a bearish market it allocates a larger portion of the funds in money market instruments thus protecting the principal investment.
This fund maximizes investor benefit through its unique Profit Lock-in feature. This feature will help in securing certain percentage of unrealized gains from the equity portion, in case of any subsequent fall in the stock market.
Mir Muhammad Ali, CEO UBL Funds during the launch ceremony said, “We at UBL Funds constantly strive to introduce products of international standards for the Pakistani market and its success is evident from the unique products with innovative features we have offered in our 10 years plus history of our operations”
The first two funds in this series, UPPF-1 and UIPPF-1 attracted investments worth over Rs. 562 Million and Rs. 760 Million respectively during their IPO periods. These funds have managed to provide an absolute return net of expenses of 48 % for UPPF-1 (from inception 03-Feb-2012 till 27-June-2013) and 7 % for UIPPF -1 -(from inception 29-Apr-2013 till 27-June-2013).
UBL Fund Managers offers mutual funds and investment plans to suit diverse individual savings and investment needs. The well-crafted plans offer investors the opportunity to fulfill need based life goals such as saving for children’s education, planning for Hajj or just build a diverse portfolio on a systematic basis. UBL Funds also houses the basic underlying funds that range from money market instruments to equities.
Established in 2001 and regulated by the Securities and Exchange Commission of Pakistan UBL Fund Managers has for more than a decade has the privilege of being one of the leading asset management companies of Pakistan with presence in the Middle East as well. It has also been given the prestigious High Management Quality Rating of AM2 by JCR-VIS Credit Rating Company.