Karachi: The Al Meezan Mutual Fund (AMMF), managed by Al Meezan Investment Management Limited, has recorded an impressive annual performance for the fiscal year ending June 30, 2024, delivering a 74.84% return to its shareholders. This marks a significant achievement given the volatile market conditions throughout the year.
The Fund's Net Asset Value (NAV) surged from Rs. 15.68 per unit at the start of the year to Rs. 24.40 per unit by year-end, reflecting a robust growth in investment value and efficiency in fund management. According to information available from the Pakistan Stock Exchange (PSX), this performance closely followed the KSE Meezan Index (KMI 30) which also saw a substantial rise, increasing by 78.70% to close at 126,424 points.
AMMF's strategic asset allocation enabled it to capitalize on favorable market conditions. The Fund maintained a high equity exposure throughout the year, averaging around 98.08%, with significant investments in sectors like Cement and Power Generation which benefited from declining interest rates and inflation. Particularly noteworthy was the increased stake in Hub Power Company Ltd., which expanded into the electric vehicle market in collaboration with China's BYD.
This year also saw Al Meezan Mutual Fund distribute a considerable dividend of Rs. 3.00 per unit, totaling Rs. 487 million in cash dividends. This interim dividend represents a payout of 30.00%, aligning with the Fund’s objective to maximize shareholder returns while adhering to Shariah-compliant investment avenues.
The Fund's total income for FY 2024 stood at Rs. 2,431 million, a significant increase from the previous year's Rs. 124 million, with contributions from both realized and unrealized gains. Expenses were well managed at Rs. 170 million, leading to a net income of Rs. 2,261 million for the year. As of June 30, 2024, the net assets of AMMF increased by 55% year-over-year to Rs. 4,874 million.
These financial achievements highlight Al Meezan’s commitment to high-performance standards and strategic investment practices that significantly benefit their investors.