Faysal Active Principal Preservation Plan
(Under Faysal Financial Planning Fund)
Preserve and Grow
Plan Objective
The “Faysal Active Principal Preservation Plan” is an Allocation Plan under “Faysal Financial Planning Fund” with an objective to earn a potentially competitive return through dynamic asset allocation between Sovereign income/Money market, equity Collective Investment Scheme and Banks deposit by using CPPI methodology, while aiming to providing Principal Preservation of the Initial Investment Value at maturity of the plan based on the Fund Manager’s outlook on the assets classes.
Brief Terms of FAPPP are presented below
| Fund Type | Open Ended |
| Pricing Mechanism | Forward |
| Risk Profile | Medium |
| Category | Fund of Funds Scheme |
| Initial Maturity | Two years |
| Management Fee | 1% on AUM or if investment made in CIS Underlying Fund fee will be applicable |
| Minimum Investment | PKR 1,000/- |
| Front end load | Upto 3% |
| Contingent load | For First Year 2% For Second Year 1% |
| Risk Profile | Low to Moderate |
| Benchmark | 70% three (3) months PKRV rates + 30% Three (3 months average deposit rates of three (3) AA rated Banks as selected by MUFAP”), “Six (6) months PKRV rates” and “KSE-100 Index or KMI-30 Index” on the basis of actual proportion held by the plan in money market, sovereign income and equity schemes/ money market component. |
| Trustee | Central Depository Company of Pakistan Limited |
| Auditor | A.F.Ferguson & Co. |
| Back Office Accounting Services | IT Minds Limited |
Key Benefits
Aiming to provide 100% capital preservation upon maturity of the plan
Hassle-free portfolio diversification
Proactive management of risk and return, by a professional team of experts
Tax benefit as per Section 62 of ITO 2001
Capital growth opportunity
Upto 50% exposure in equity based on the market outlook while preserving capital
Frequently Asked Questions
What is Faysal Active Principal Preservation Plan?
The “Faysal Active Principal Preservation Plan” is an Allocation Plan under “Faysal Financial Planning Fund” with an objective to earn a potentially competitive return through dynamic asset allocation between Sovereign income/Money market, equity Collective Investment Scheme and Banks deposit by using CPPI methodology, while aiming to providing Principal Preservation of the Initial Investment Value at maturity of the plan based on the Fund Manager’s outlook on the assets classes.
Who can Invest?
This Product Is Suitable For Investors Who Are Seeking:
• Attractive returns through equity participation along with Principal Preservation
• Proactive management and focused strategy to minimize risk through CPPI Methodology.
What if I want to take out my amount within 2 years duration?
Yes you may redeem your amount anytime however Contingent Load will be charged 2% for first year and 1% for second year.
What is plan strategy?
The strategy of the plan is to provide capital preservation while giving an opportunity to investors to take equity exposure. The strategy employed by the management would be to essentially generate steep returns from the equity market without exposing the investors to primary risk of equity market. Investors with minimum 2 years view is expected to benefit from this investment strategy.
FAPPP Performance
| Year | Fund's Annual Yield | Benchmark's Annual Yield |
|---|---|---|
| FY 2019-20 | 6.65% | 2.83% |
| FY 2020-21 | 19.83% | 20.61% |
Investment Committee
| Mr. Khaldoon Bin Latif | Chief Executive Officer |
| Mr. Ayub Khuhro | Chief Investment Officer |
| Mr. Faisal Ali Khan | Chief Financial Officer |
| Syed Shahid Iqbal | Head of Fixed Income |
| Mr. Khurram M. Arif, CFA | Head of Equity |
| Mr. Umer Pervez | Director Research |
| Mr. Khurram Salman | Head of Compliance and Internal Audit |
| Mr. Imad Ansari | Head of Risk |
