Al Meezan Investments

Capital Preservation Solutions

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-II

Meezan Capital Preservation Fund-II 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.

Investment Objective & Philosophy

The objective of MCPF-II 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.

Key Benefits

  • Meezan Capital Preservation Fund-II is Shariah Compliant open-end Fund of Fund scheme
  • Principal preservation of initial investment amount
  • Upto 100% in Exposure in Shariah Compliant Equities
  • Cumulative return since inception (June 28, 2014 till March 31, 2016) is 13.9% in PKR terms
  • Managed by the only Shariah compliant Asset Management Company in Pakistan with a solid track record of over 20 years, and under the supervision of the Shariah Supervisory Board of Meezan Bank headed by Justice (Retd.) Mufti Muhammad Taqi Usmani

This product is suitable for investors who are seeking*:

  • Attractive returns through equity participation along with principal preservation
  • An effective strategy to reduce risk through CPPI with upto 100% equity exposure
  • Low to Moderate risk and return potential (Blue)

*Investors are encouraged to consult their financial advisers prior to investing in the product.

Note: Risk is represented as:
LowMediumHigh

Key Features

Scheme Name Meezan Capital Preservation Fund-II
Scheme Type Open-end Islamic Fund of Funds Scheme
Date of Inception June 28, 2014
Fund Size – Mar 31, 2016 Rs. 2,250 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.5,000 (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
Tax Benefits Tax credit (as per prevailing Tax Rules)* on maximum 20% of your taxable income or Rs. 1,500,000, whichever is lower.
*Under Section 62 of the Income Tax Ordinance 2001
Duration 2 years (Initial Maturity June 27, 2016)

Fund performance Highlights

HFY 15
MCPF-II Returns 10.3%
Benchmark Returns 8.5%
MCPF-II Dividend (Rupees per unit)

Note: For details on Tax Credit, please Click Here

MCPrF-II will have its initial maturity on June 27, 2016 and continue its existence till December 31, 2016, which shall be the date of the next subsequent initial maturity. We would encourage you to remain invested for its subsequent tenure, for the chance 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 MCPrF –II 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 MCPRF-II Click Here

Investment Note MCPRF II Click Here

Meezan Capital Preservation Plan – I

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.

Investment Objective & Philosophy

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.

Key Benefits

  • Meezan Capital Preservation Plan –I (MCPP-I) is Pakistan’s first Shariah Compliant capital preservation plan
  • Principal preservation of initial investment amount
  • Upto 100% exposure in Shariah Compliant Equities
  • Strategy reflective of investor’s risk appetite as market conditions change
  • Managed by the only Shariah compliant Asset Management Company in Pakistan with a solid track record of over 20 years, and under the supervision of the Shariah Supervisory Board of Meezan Bank headed by Justice (Retd.) Mufti Muhammad Taqi Usmani.

This product is suitable for investors who are seeking*:

  • Attractive returns through equity participation along with principal preservation
  • An effective strategy to reduce risk through CPPI with upto 100% equity exposure
  • Risk and return potential Low- Medium

*Investors are encouraged to consult their Investment advisors prior to investing in the product.

Fund performance Highlights

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

Meezan Capital Preservation Plan – II

Meezan Capital Preservation Plan –II (MCPP-II), is another plan based on the existing Meezan Financial Planning Fund of Fund (MFPF). Based on CPPI investment strategy, MCPP-II will enable investors to benefit from potentially high returns of a rising stock market while preserving your capital in a sliding market by investing in fixed income/money market based funds.

This is second in series of Islamic capital preservation plans in Pakistan adding a new dimension to address investor’s need for capital preservation with potential 100% exposure to stock market.

Investment Objective & Philosophy

The objective of Meezan Capital Preservation Plan-II (MCPP-II) 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.

Key Benefits

  • Meezan Capital Preservation Plan –I (MCPP-I) is second in series of Shariah Compliant capital preservation plans in Pakistan.
  • Principal preservation of initial investment amount
  • Upto 100% in Exposure in Shariah Compliant Equities
  • Strategy reflective of investor’s risk appetite as market conditions change
  • Managed by the only Shariah compliant Asset Management Company in Pakistan with a solid track record of over 20 years, and under the supervision of the Shariah Supervisory Board of Meezan Bank headed by Justice (Retd.) Mufti Muhammad Taqi Usmani.

This product is suitable for investors who are seeking*:

  • Attractive returns through equity participation along with principal preservation
  • An effective strategy to reduce risk through CPPI with upto 100% equity exposure

Risk and return potential Low – Medium

*Investors are encouraged to consult their Investment advisors prior to investing in the product.

Fund performance Highlights

FY 15 FY 16
MCPP-II Returns 0.40% 6.50%
Benchmark Returns 2.00% 5.60%
MCPP-II Dividend ( Rupees per unit) 0.05
(For the period from Dec 15, 2014 to Jun 30, 2015)
2.70
(For the period from Jul 1, 2015 to Jun 23, 2016)

We would like to inform that MCPP-II(plan based on existing MFPF) is maturing on March 25, 2017, after completing its 2 years of operations. We would encourage you to re-invest your current investment of MCPP-II in newly launched Meezan Strategic Allocation Plan-III (MSAP-III) to generate further attractive returns from investments in the stock market.

Please find the Consent Letter to provide us with the instruction to either re-invest in MSAP –III 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-II Click Here

Stock Market Review and Outlook Click Here

Meezan Capital Preservation Fund-III

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.

Investment Objective & Philosophy

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.

Key Benefits

  • Meezan Capital Preservation Fund is Shariah Compliant open-end Fund of Fund scheme
  • Principal preservation of initial investment amount
  • Upto 100% in Exposure in Shariah Compliant Equities
  • Cumulative return since inception (January 31, 2014 till September 30, 2015) is 15.60% in PKR terms
  • Managed by the only Shariah compliant Asset Management Company in Pakistan with a solid track record of over 20 years, and under the supervision of the Shariah Supervisory Board of Meezan Bank headed by Justice (Retd.) Mufti Muhammad Taqi Usmani

This product is suitable for investors who are seeking*:

  • Attractive returns through equity participation along with principal preservation
  • An effective strategy to reduce risk through CPPI with upto 100% equity exposure
  • Low to Moderate risk and return potential (Blue)

*Investors are encouraged to consult their financial advisers prior to investing in the product.

Note: Risk is represented as:
LowMediumHigh

Key Features

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
Tax Benefits Tax credit (as per prevailing Tax Rules)* on maximum 20% of your taxable income or Rs. 1,500,000, whichever is lower.
*Under Section 62 of the Income Tax Ordinance 2001
Duration 2 years

Fund performance Highlights

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
Note: For details on Tax Credit, please Click Here

Manage Investment at your fingertips!

  • Get account balance: SMS BAL (Portfolio ID) to ‘6655’
  • Daily NAV prices : SMS NAV to ‘6655’
  • Investment Advisor help : SMS ‘INVEST’ to ‘6655’

*The return on investment is not fixed and is subject to market risks. If you want to evaluate fund performance, you may refer to the Latest Fund Manager Report. Click here