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First capital guaranteed mutual fund launched

KARACHI: BMA Funds, (the marketing name of BMA Asset Management Co. Ltd.), has announced the launching of the first capital guaranteed mutual fund in Pakistan’s history, the BMA Principal Guaranteed Fund (BPGF).

BPGF is structured to return at least 100 percent of investors’ initial investment, if the investment is held till maturity, a duration of two years.

The brand new BMA Principal Guaranteed Fund promises investors a principal amount’s security even if the stock market begins to fall.

The requirement of a capital guaranteed fund had been felt for some time due to the extreme volatility seen recently in Pakistan’s equity markets. The visionary policies of the government of Pakistan and regulators have encouraged BMA Funds to launch a capital guaranteed fund, designed to protect the interests of Pakistani investors.

The BPGF is BMA Funds’ first mutual fund, a closed end Fund with a 2-year maturity period. The investment objective of the BPGF is “to guarantee the principal investment and to simultaneously ensure a high level of total return to the investors”.

This is done by investing up to a maximum of 30 percent of the fund’s portfolio in listed equities, while simultaneously securing the entire principal amount invested if held from inception till maturity.

The BPGF will be listed and traded on the Karachi Stock Exchange for its lifespan of 2 years. During this time investors will be able to sell their respective certificates on the KSE, thus providing liquidity and ease of entry and exit. “We are proud to have been the first in Pakistan to offer investors the peace of mind and investment security that the BPGF affords,” said Mr Muddassar M. Malik, CEO of BMA Funds, at the launch of the BPGF. “BMA plans to continue the tradition of innovation with the launch of more mutual funds in the coming year,” he added. staff report

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