Karachi: In a year marked by robust growth, Meezan Islamic Fund (MIF), managed by Al Meezan Investment Management Limited, has delivered a remarkable return of 73.00% to its investors for the fiscal year ending June 30, 2024. The fund's strategic investment in Shariah-compliant equities, focusing on capital gains and dividends, has significantly benefited its shareholders.
The Meezan Islamic Fund, designed to maximize total returns for investors through compliance with Shariah principles, has seen its Net Asset Value (NAV) surge from Rs. 54.80 to Rs. 81.67 per unit. This 73% increase contrasts sharply with the 78.70% rise in its benchmark, the KSE Meezan Index (KMI 30), which closed at 126,424 points. According to information available from the Pakistan Stock Exchange (PSX), this performance underscores the fund's adept handling of market dynamics and investment opportunities.
Over the year, MIF's asset allocation has been finely tuned. The fund reduced its exposure to the Oil and Gas Exploration sector due to non-compliance issues with OGDC and declines in international oil prices. Conversely, it increased stakes in the Cement sector, benefiting from the anticipated economic recovery and interest rate adjustments favorable to cyclical industries.
The fund's income for FY24 stood at Rs. 11,405 million, up from Rs. 357 million the previous year, demonstrating significant growth in both realized and unrealized gains. Specifically, dividend income reached Rs. 1,247 million, with additional earnings from bank savings contributing to the fund's strong financial performance. After expenses totaling Rs. 766 million, the net income was reported at Rs. 10,639 million.
Meezan Islamic Fund's commitment to ethical investing is further evidenced by the Rs. 42 million set aside for charity, aligning with its Shariah-compliant investment strategy. Furthermore, the fund distributed Rs. 13.13 per unit in dividends, translating to a total payout of Rs. 2,862 million during the year.
MIF's governance structures, including the board and various committees, have maintained rigorous oversight and adherence to compliance standards. The resignation of Mr. Tariq Mairaj from the board on September 10, 2024, and the appointment of Syed Imran Ali Shah on September 18, 2024, highlight ongoing adjustments to its governance framework to better serve its investment goals and stakeholder interests.