Karachi: The Meezan Strategic Allocation Fund-III (MSAF-III) achieved significant growth during the fiscal year ending June 30, 2024, reporting a total return of 34.49%. The fund’s performance exceeded its benchmark of 30.56%, driven by gains in Shariah-compliant equity and fixed-income mutual funds. According to information available from the Pakistan Stock Exchange (PSX), the fund posted a net income of PKR 74 million, backed by a realized gain of PKR 29 million and an unrealized gain of PKR 28 million.
The fund, which aims to generate returns in line with its respective allocation plans, benefited from a balanced exposure to both Shariah-compliant equity and fixed income mutual funds, allowing flexibility in adapting to market conditions. Its strategic allocation approach contributed to a notable increase in its net asset value per unit, which stood at PKR 72.87 as of June 30, 2024, up from PKR 58.27 the previous year.
Additionally, MSAF-III made interim distributions of PKR 5.50 per unit, totaling PKR 16.70 million for the fiscal year. Despite the distributions, the fund's net assets remained robust at PKR 234 million. The highest redemption price per unit during the fiscal year was PKR 78.34, reflecting the positive impact of the fund's strategic management and allocation policy.
The Meezan Capital Preservation Plan-IX, a segment of MSAF-III, also reported positive returns. The plan recorded a total gain of PKR 75 million, inclusive of a realized gain on investments of PKR 29 million and an unrealized gain of PKR 28 million. Dividend income and profit on bank savings accounted for PKR 18 million and PKR 0.19 million, respectively.
The MSAF-III, managed by Al Meezan Investment Management Limited, has positioned itself as a preferred option for investors looking to achieve a balance of stability and growth in a Shariah-compliant manner. Its allocation flexibility between equity and fixed income mutual funds has allowed it to perform well despite volatile market conditions.
The fund’s success is a testament to the expertise and strategic foresight of Al Meezan’s management team, which has maintained the fund’s compliance with Shariah principles throughout its operations. As of June 30, 2024, the fund remains compliant with Shariah guidelines, as confirmed by the Shariah Advisor of the Fund, Dr. Muhammad Imran Ashraf Usmani.