Karachi: The Al Meezan Investment Management Limited has reported a significant increase in its assets under management, aligning with Islamic financial principles, according to the latest data from the Pakistan Stock Exchange (PSX).
In the fiscal year ending June 30, 2024, Al Meezan's total assets saw a robust growth of 19.37%, reaching a net asset value of Rs. 114.61 billion, up from Rs. 96.01 billion the previous year. This growth underscores the firm's successful strategy in the Shariah-compliant financial sector, offering daily payouts to investors through the Meezan Rozana Amdani Fund (MRAF).
According to information available from the Pakistan Stock Exchange (PSX), the MRAF has been a top performer, delivering a net return of 21.50% to its investors over the past year, outperforming its benchmark of six-month deposits at Islamic banks, which had a return of 10.28%. This outperformance of 11.22% highlights the fund’s effective investment strategy in Shariah-compliant money market instruments.
The fund's strategy includes investing in high-quality, short-term Islamic bonds (Sukuks) and other money market instruments, with a maximum maturity of six months. This approach has been crucial in managing the impacts of interest rate volatility and maintaining liquidity for its investors.
In terms of financial performance, the fund's gross income for the year was reported at Rs. 21.35 billion, primarily from profits on bank deposits and Sukuk placements. After accounting for operating expenses of Rs. 1.17 billion, the net income stood at Rs. 20.18 billion. The fund distributed Rs. 20.18 billion in dividends, translating to Rs. 9.76 per unit, reflecting a distribution rate of 19.52%.
The fund’s stability and high credit quality have been recognized with a Stability Rating of AA+ from the VIS Credit Rating Company, affirming its strong position in the market.
Al Meezan Investment Management continues to be a significant player in Pakistan's Islamic finance sector, adhering to stringent Shariah guidelines while achieving commendable financial returns for its investors.