Karachi: The Meezan Energy Fund (MEF), managed by Al Meezan Investment Management Limited, has reported an exceptional performance for the fiscal year ended June 30, 2024, delivering an impressive 86.79% return to its investors. This significant achievement underscores the fund’s strategic focus on the energy sector, which has seen robust growth over the year.

The fund, a sector-specific open-end equity fund primarily investing in Shariah-compliant equity stocks within the energy sector, increased its net asset value (NAV) from PKR 30.85 to PKR 34.10 over the year. According to information available from the Pakistan Stock Exchange (PSX), the Meezan Energy Fund's asset allocation effectively capitalized on favorable market trends, significantly outperforming its benchmark, the KSE Meezan Index (KMI 30), which rose by 78.70%.

The fund's total income surged to PKR 496.00 million in FY24 from PKR 10.00 million the previous year. This income comprised PKR 283.00 million in realized gains, PKR 138.00 million in unrealized gains, and PKR 69.00 million from dividends. Additionally, the fund earned PKR 6.00 million in profit from savings accounts with banks.

MEF's strategic asset allocation, expertly managed by Al Meezan Investment Management, balances growth stocks with high dividend stocks to optimize risk-adjusted returns. The fund adjusts its equity exposure based on market valuations, reducing it during overvalued periods and increasing it during market troughs, which has been crucial in achieving such high returns.

Further bolstering its financial achievements, the fund distributed PKR 23.65 per unit in interim cash dividends, totaling PKR 182.00 million for the year, reflecting a commitment to delivering shareholder value. The fund’s net assets as of June 30, 2024, stood at PKR 1.14 billion, marking a significant increase of 151% from the previous year.