Capital preservation funds are schemes which aim to preserve your principal while offering potentially high returns, through dynamic allocation. The dynamic asset allocation is aimed at providing higher returns through participation in Equities, while aiming to protect downside risk of capital through participation in Income/Money Market instruments.
Meezan Capital Preservation Fund-III is a Shariah Compliant open-end fund of fund scheme. It is a tool to maximize return through equity market upside potential while simultaneously protecting the principal investment through income/money market participation.
The objective of MCPF-III is to earn potentially high rate of return utilizing internationally renowned capital protection methodology; Constant Proportion Portfolio insurance (CPPI) while preserving the initial investment amount.
CPPI Strategy is an internationally practiced dynamic asset allocation trading strategy which allocates assets between equity based and income/money market based asset classes. The strategy provides investors to enhance exposure to equities in an upward trending market (up to 100%) while preserve the initial investment amount from downside risk in a downturn market.
*Investors are encouraged to consult their financial advisers prior to investing in the product.
Note: Risk is represented as: Low
| Scheme Name | Meezan Capital Preservation Fund III |
|---|---|
| Scheme Type | Open-end Islamic Fund of Funds Scheme |
| Date of Inception | January 31, 2014 |
| Fund Size – Sep 30, 2015 | Rs. 3,270 million |
| Objective of the scheme | The Fund seeks to earn a potentially high return through dynamic asset allocation between Shariah Compliant Equities and Shariah Compliant Income/Money Market based Collective Investment Schemes, while providing capital Preservation of the principal investment at completion of the duration of Fund. |
| Benchmark | Combination of KMI-30 Index and Average return on 6-month Islamic bank deposit |
| Minimum Investment Amount | Rs.5000 (and Rs. 1,000 thereafter) |
| Lock-in Period | None |
| Management Fee | 1% (No Management Fees from investment in Al Meezan Funds as per law) |
| Entry Load | 3% |
| Exit Load | 5% upon redemption prior to maturity |
| Duration | 2 years |
| FY15 | FY14 | |
|---|---|---|
| MCPF-III Returns | 12.10% | 5.6%* |
| Benchmark Returns | 12.0% | 5.0% |
| MCPF-III Dividend (Rupees per unit) | – | Rs. 0.53* |
*Performance start date of Jan 31, 2014
