New IPO for KSE as UBL Funds launches UPPF-2

The UBL Funds has launched another fund under the principal protected series by the name of UBL Principal Protected Fund 2 (UPPF-2).
The new product came after the successful introduction of UBL Principal Protected Fund 1 (UPPF-1) and the UBL Islamic Principal Preservation Fund 1 (UIPPF-1).The IPO for investing in UPPF-2 begins from July 15 to 17, said a statement issued by the Fund.
With UPPF-2, the 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 10 years, from 1st July 2003 to 30th June 2013,” said the statement.
With a term period of two years, investment in this fund can be initiated with just Rs 10,000. UPPF-2 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.
“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,” Mir Muhammad Ali, CEO UBL Funds, told the launch ceremony.
He said 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).