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 Plan –I (MCPP-I), is a plan based on the existing Meezan Financial Planning Fund of Fund (MFPF). Based on CPPI investment strategy, MCPP-I will enable investors to benefit from potentially high returns of a rising stock market while preserving your capital in a bearish market by investing in fixed income/money market based funds.
This is the first ever Islamic capital preservation plan in Pakistan adding a new dimension to address investor’s need for capital preservation with potential 100% exposure to stock market.
The objective of Meezan Capital Preservation Plan-I (MCPP-I) is to earn a potentially high return through dynamic asset allocation between Shariah Compliant Equities and Shariah Compliant Income/Money Market based Collective Investment Schemes (CIS), while providing capital preservation upon maturity of the allocation plan.
*Investors are encouraged to consult their Investment advisors prior to investing in the product.
| FY 15 | FY 16 | |
|---|---|---|
| MCPP-I Returns | 7.8%* | 10.5% |
| Benchmark Returns | 8.5% | 8.7% |
| MCPP-I Dividend ( Rupees per unit) | 0.02 (For the period from Sep 1, 2014 to Jun 30, 2015) |
3.90 (For the period from Jul 1, 2015 to Jun 23, 2016) |
We would like to inform that MCPP-I (plan based on existing MFPF) is maturing on October 27, 2016, after completing its 2 years of operations. We would encourage you to re-invest your current investment of MCPP-I into our upcoming Meezan Strategic Allocation Plan-I (MSAP-I) to generate further attractive returns from investments in the stock market.
Please find the Consent Letter to provide us with the instruction to either remain invested in MCPP –I or convert your investment in any of our other funds. Please also find enclosed the Pakistan Stock Market Review and Outlook to facilitate you in decision making.
Consent letter MCPP-I Click Here
Note on Pakistan Stock Exchange Click Here
