According to our sources the asset management firm UBL Fund Managers is is all set to introduce its fourth Islamic principal preservation fund which goes by the name of Al-Ameen Islamic Principal Preservation Fund IV (AIPPF-IV).
AIPPF-IV is a Shariah-compliant mutual fund falling into the category of the ‘fund of funds’ that provides Islamic returns while giving principal’s preservation along with an exposure to equities.
Capital preservation schemes aim to have optimal returns while guaranteeing that the principal invested remains intact even in the worst-case scenario. Provided a holding period of two years, any investment in the fund entails a tax rebate.
It should be noted that UBL Funds has launched three AIPPFs in the past. 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 witnessed 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 acquaintance 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.
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, according to data compiled by the Mutual Fund Association of Pakistan (MUFAP).
Due to the uncertainty in Pakistan’s equity market, the returns posted by the AIPPFs in recent months have been dismal.