UBL Fund Managers, the Pakistan's leading asset management company has announced the launch of its new and most innovative investment plan, the UBL Principal Protected Plan - I (UPPP-I) for high net worth clients and institutional investors.
Based on the internationally recognised dynamic portfolio allocation strategy called the Constant Proportion Portfolio Insurance (CPPI), UPPP-I is the first of its kind capital protected plan to be launched in Pakistan.
The CPPI Methodology was developed in 1962 by Goldman Sachs and has since been used by renowned financial institutions across the globe as part of their product investment strategy. It is now being introduced for the first time in Pakistan by UBL Fund Managers. The plan will be open for subscription till July 7, 2008.
Atif Bokhari, President UBL and Chairman UBL Funds, spoke at the occasion saying that "there is a growing appetite from investors for unique investment opportunities in the market. UBL Funds is at the cutting-edge when it comes to launching new and innovative products and we plan to bring many more innovations to the market in the near future."
The UPP Series is designed to provide investors with maximum benefit from the upside of the stock market, while ensuring 100 per cent principal protection at maturity regardless of the performance of the equity markets. Capital growth will be derived from exposure of up to 100 percent in the equity component, whereas the fixed income component of the plan will allow for mitigation of risk and volatility.
The UBL Principal Protected Plan - I have fixed-term tenure of three years, but is flexible to allow early redemption. Speaking about the investment strategy of UPPP-I, Mir Muhammad Ali, CFA - CEO at UBL Funds, added that "the tried and tested CPPI methodology will allow investors to take maximum exposure to equity markets while ensuring protection of their initial investment.
No other capital protected scheme in the market is currently offering features that match those of UPPP. The degree of accuracy in terms of risk and return, flexibility, transparency and level of performance that UPPP-I offers is simply unmatchable by conventional structures."-PR