Unit Trust of Pakistan (UTP) is the first open-end mutual fund in Pakistan's private sector. UTP follows a balanced investment strategy which means that it switches its investments from fixed-income to equity & vice versa depending upon the investment outlook. When the stock market appears volatile, the funds normally switch portfolios to fixed-income & debt based instruments and reverts back to equity when the situation becomes stable.

Investment Strategy
UTP focuses on preserving the initial capital while providing maximum diversification, along with liquidity, growth & consistent returns. In order to achieve these, the fund invests in three types of high quality assets. These include:

• Shares of companies which are either consistently dividend paying having growth prospects actively traded
• Debt instruments with good credit rating
• Short-term money market instruments

UTP- Capital Protected Fund (UTP-CPF) was the first open-end capital protected fund in Pakistan, established under a Trust Deed dated November 27, 2006 between JS Investments Limited as the management company and Standard Chartered Bank (Pakistan) Limited as the exclusive distributor. Following the tremendous success of this unique fund, 3 more Capital Protected Funds were launched jointly by JS Investments and SCBPL.

A Capital Protected Fund aims at protecting investor capital through the investment structure by placing a significant percentage of the Fund as bank deposit(s) or in other return-based fixed income instruments, and uses the remaining funds to gain exposure into equity markets or any other investment instruments permissible by SECP that the Management Company feels would be appropriate to maximize return. The fund has a fixed tenor (e.g. 1 year or 3 years) which is the minimum period of holding for capital protection to be in force.

The table below summarizes the features of the four Capital Protected Funds launched to date:

UTP-CPF II is the second tranche of the UTP-Capital Protected Fund after the success of the original UTP-CPF. UTP-CPF II is a capital protected fund and was established under a Trust Deed signed April 04, 2007 between JS ABAMCO Limited (formerly ABAMCO Limited) as the Management Company and Central Depository Company of Pakistan Limited (CDC) as the Trustee.

Investment Strategy
UTP-CPF II places a mimimum of 75% of the total initial fund size (before deducting any charges such as front end load or others, if any) with a scheduled commercial bank with a minimum long term credit rating of AA at the time of placement. The bank then ensures that these funds grow to become at least 100.00% of the total initial investment value, net of all expenses and taxes, at the time of maturity.

The fund places a separate portion of the total initial fund size before deducting any charges such as front end load or others, if any, with a AA rated bank at the time of placement to ensure that all fees and charges are covered without affecting the capital protection structure in case the remaining equity portion is wiped out completely in market fluctuations. The remaining funds are invested primarily in equity markets or any other SECP permissible investment instruments that the management feels would be appropriate to maximize return.