AIPPF III

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Scare of investing in Stock Market??
What if Preservation of Principal amount will be given??
Introducing, "Al-Ameen Islamic Principal Preservation fund III" after tremendous achievement & absolute return of 63% in CPPI series.
Danial Anwar
Investment Advisor
0345-2237551
Feel free to message or call..!

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AIPPF III

  1. 1. SUBJECT: Investment in Al-Ameen Islamic Principal Preservation Fund III - (AIPPF-III) Dear Sir/Madam, With reference to the captioned subject, UBL Fund Managers is pleased to announce the launch of its third Islamic CPPI-based Fund—Al-Ameen Islamic Principal Preservation Fund (AIPPF-III). Similar to previous tranches, investing in this product has enabled investors to benefit from the high returns earned in the stock market while it is on the rise and benefit from fixed income/money market when the stock market is declining, and all this while ensuring preservation of your principal. To date, with the enthusiasm and support of investors like you, we are managing over PKR 200 Crore in our Principal Preservation Series! Our track record in these is as follows: TRACK RECORD IN PRINCIPAL PRESERVATION FUNDS AND PLANS Investment Solution Launch Date Duration Absolute Return* Profit Locked in** Al-Ameen Islamic Principal Preservation Fund – I (Formerly UBL Islamic Principal Preservation Fund –I) Apr-13 11 Months 30.59% 14% Al-Ameen Islamic Principal Preservation Fund – II (Formerly UBL Islamic Principal Preservation Fund –II) Oct-13 5 Months 13.62% 3% *All returns are quoted till April 8, 2014 **The profit lock-in is the % of unrealized gain (if any) from the equity portion in case of any subsequent fall in the stock market. We would like to invite you to participate in the Pre-IPO of this new fund; tentative pre-IPO date is April 20, 2014. A term sheet is attached with more details and features of AIPPF-III for your convenience. We look forward to meeting you to further discuss the Al-Ameen Islamic Principal Preservation Fund–III. Regards, Danial Anwar Sameer Anjum Investment Associate Regional Manager – Islamic Investments 0345-2237551 0333-2397886 danwar@alameenifs.com sanjum@ublfunds.com
  2. 2. Al-Ameen Islamic Principal Preservation Fund - III (AIPPF-III) - Term Sheet Up to 100% Equity Participation Principal Preservation of Initial Investment Value Driven by the CPPI Methodology Profit Lock-in Feature Tax Free Returns Investment Objective What is the CPPI methodology? To earn potentially high returns through dynamic asset allocation between Shariah Compliant Equity and Shariah Compliant Income/Money Market-based Mutual Funds while providing capital preservation of the Initial Investment Value at completion of the duration of Fund. The Investment Objective of the Fund shall be achieved through the Constant Proportion Portfolio Insurance (CPPI) Methodology. CPPI is an internationally acclaimed, dynamic asset allocation methodology which maximizes exposure to equities while maintaining principal preservation Based on the methodology, the allocation to equities will generally increase in case of rise in stock market, while exposure to fixed income will generally increase in case of fall in the stock market Introduction to the Fund The Management Company, may lock-in/realize certain percentage of the profits (if any) from the equity portion by increasing allocation to the money market portion of the portfolio This feature will help in securing certain percentage of unrealized gains (if any) from the equity portion, in case of any subsequent fall in the stock market 1 The Fund may also invest in other Shariah Compliant Equity and Income/Money Market based Mutual Funds managed by the UBL Funds and/or Other Asset Management Companies (AMCs). The Fund will be dynamically allocated between Shariah-compliant Equity and Shariah- compliant Income/Money Market based Mutual Funds, by using the CPPI Methodology The Fund will be primarily investing in Al-Ameen Shariah Stock Fund (ASSF) to take exposure in Equities, while Al-Ameen Islamic Sovereign Fund (AISF) or Al-Ameen Islamic Cash Fund (AICF) will be used to take exposure in Fixed Income/Money Market Instruments1 The dynamic asset allocation is aimed at providing higher returns through participation in Equity Mutual Funds, while aiming to protect downside risk of the capital through participation in Income & Money Market Mutual Funds Investment Structure Investment Strategy continued on next page.. Key Benefits Advantages Profit Lock-in Feature General Information Fund Manager Fund Structure & Duration Fund Category Minimum Investment Amount UBL Fund Managers Open- End - limited subscription period Duration of Fund to be 2 years (from commencement of the Life of the Fund) Fund of Funds Scheme Rs. 10,000 Call 0800-00026 | SMS ‘AMEEN’ to 8258 www.AlAmeenFunds.com | info@AlAmeenFunds.com Disclaimer: All investments in Mutual Funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependent on forces and factors affecting financial markets. Prices may go up and down based on market conditions. Past Performance is not necessarily an indicator of future results. Please read the Offering Document(s) of fund(s) and Supplementary Offering Document(s) of the plan(s) to understand investment policies and risks involved Managed by
  3. 3. Fund Listing Trustee & Custodian Auditor Regulator Services Providers Islamabad Stock Exchange MCB Financial Services Limited BDO Ebrahim & Company Securities and Exchange Commission of Pakistan (SECP) Fee Structure Management Fee & Load Management Fee: Nil** Structuring Fee: 3% of NAV (FED & SST rate applicable on the load) Early Exit Fee: 5% of NAV (Applicable in case of redemption before the Fund’s maturity. Further, partial redemptions are not allowed in the Fund) Authorized Investments The initial asset allocation of the Fund, is expected to be between (50%) Fifty Percent to (100%) Hundred Percent in the Equity Component and between (0%) Zero Percent to (50%) Fifty Percent in the Income/Money Market Component Following the initial allocation, the dynamic allocation mechanism will then rebalance the portfolio of the fund on each pre-defined interval in such a manner that if on a given day Equity Allocation of the Fund is X% (ranging between 0%-100%) then Income/Money Market allocation of the Fund will be (100% - X) Note: Shariah Compliant Income Funds that invests at least 70% of their net assets in Shariah-compliant debt and money market instruments issued by Government of Pakistan and remaining assets with a bank that complies with the minimum rating requirement specified for Capital Protected Schemes by the Commission shall be used in the investment segment of the fund. Weighted Average Daily Return of KMI-30 Index and Three (3) Month Deposit Rates of AA - and above rated Islamic Commercial Banks (or Islamic windows of commercial banks) based on the Fund's actual participation in the Equity & Income/Money Market Component. Benchmark In case of the Bond Event1 , the entire portfolio of the fund will be invested in the Principal Preservation Segment* 1 Bond Event occurs when the Portfolio Value hits or is about to hit the Bond Floor * Bond Floor is the present value of the capital protection amount on a given day. It is the minimum amount of net assets that are needed today to protect the capital at maturity **1% Management Fee p.a. applicable on investments made in Collective Investment Schemes managed by other Asset Management Co. Authorized Investments Allocation (Min - Max %) Investment Segment: Equity based mutual funds Income/Money market based mutual funds Cash and/or Near Cash Instruments which include cash in Islamic bank and Ijarah Sukuks Capital Preservation Segment: Income/Money market based mutual funds Cash and/or Near Cash Instruments which include cash in Islamic bank accounts and Ijarah Sukuks 0%-100% 0%-100% Call 0800-00026 | SMS ‘AMEEN’ to 8258 www.AlAmeenFunds.com | info@AlAmeenFunds.com Disclaimer: All investments in Mutual Funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependent on forces and factors affecting financial markets. Prices may go up and down based on market conditions. Past Performance is not necessarily an indicator of future results. Please read the Offering Document(s) of fund(s) and Supplementary Offering Document(s) of the plan(s) to understand investment policies and risks involved Managed by Al-Ameen Islamic Principal Preservation Fund - III (AIPPF-III) - Term Sheet

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