Published On: Thu, Oct 31st, 2013

One Day IPO for UBL Islamic Principal Preservation Fund-II

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 UBL Fund Managers has announced 31st October 2013 as a one day Initial Public Offering period for its second Islamic fund from the capital protected series. Investments can start with just Rs, 10,000/- while providing an excellent opportunity for investors seeking Shariah Compliant returns along with principal preservation.

UBL Funds has been a pioneer in bringing new investment management methodologies to Pakistan; one of which is the Constant Proportion Portfolio Insurance (CPPI) methodology serves as an umbrella for its capital protected series.

UBL Islamic Principal Preservation Fund (UIPPF-II ) has three successful predecessors, one Islamic and two conventional in nature; namely, UBL Islamic Principal Preservation Fund I and UBL Principal Protected Fund I & II, all of which have a total duration of 2 years.

Due to the high numbers of Pre-IPO applications received for this fund in the past few weeks, the management has decided to keep a minimal duration for the Public Offering during which applications from potential investors will be accepted.

The unique profit lock-in feature in this fund allows profits to be realized at various intervals during the life of the fund. Along with preservation of the principal investment, the Constant Proportion Portfolio Insurance (CPPI) methodology also aims to provide up to 100% exposure to the equity market as it gets dynamically allocated between Shariah Compliant Equity and Islamic Income / Money Market Mutual Funds.

The Fund will primarily invest in UBL Shariah Stock Fund (USSF) to take exposure in Equities and capitalize on Karachi Stock Exchange’s growth; while UBL Islamic Sovereign Fund and UBL Islamic Cash Fund will be used to take exposure in Income or Money Market Instruments.

The Karachi Stock Exchange index (KSE100 index) has given an average annual return of 19.48% in the last ten years (June 2003 – June 2013); outperforming other publically available investment avenues.

Established in 2001 and regulated by the Securities and Exchange Commission of Pakistan, UBL Fund Managers has been one of the leading asset management companies of Pakistan for over a decade, and now has presence in the Middle East as well. UBL Fund Managers enjoys the prestigious High Management Quality Rating of AM2 by JCR-VIS Credit Rating Company.

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