UBL Fund Managers set for another launch

Will establish fourth Islamic principal preservation fund.

KARACHI:

Asset management firm UBL Fund Managers is launching its fourth Islamic principal preservation fund under the name of Al-Ameen Islamic Principal Preservation Fund IV (AIPPF-IV), a statement said on Tuesday.

AIPPF-IV is a Shariah-compliant mutual fund, which falls into the category of the ‘fund of funds’ that provides Islamic returns while promising principal’s preservation along with an exposure to equities.

Capital preservation schemes aim to have optimal returns while ensuring that the principal invested remains intact even in the worst-case scenario. Any investment in the fund also entails a tax rebate provided the holding period is of two years.

Earlier, UBL Funds has launched three AIPPFs. Subscription for the fourth fund will remain open for a limited time and the fund will mature in two years.

According to UBL Fund Managers CEO Mir Mohammad Ali, each tranche of AIPPF has seen an increase in the invested volume. The first, second and third tranches of AIPPF attracted Rs733 million, Rs983 million and Rs2.2 billion, respectively. The first three AIPPFs will mature on April 2015, November 2015 and June 2016.

AIPPF-IV will invest in the Al-Ameen Shariah Stock Fund to take exposure to equities while investments in Al-Ameen Islamic Sovereign Fund and Al-Ameen Islamic Cash Fund will provide AIPPF-IV with exposure to fixed income and money market instruments.

According to data compiled by the Mutual Fund Association of Pakistan (MUFAP), the assets under management of the first three AIPPFs at the end of August amounted to Rs897.2 million, Rs1 billion and Rs2.1 billion.

However, the returns posted by the AIPPFs in recent months have been dismal mainly because of the uncertainty in Pakistan’s equity market.

Published in The Express Tribune, September 10^th, 2014.

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