Karachi: The Meezan Pakistan Exchange Traded Fund (MP-ETF) has reported a substantial growth in its net assets for the month of May 2025. According to the latest figures, the fund's net assets rose to Rs. 0.33 billion, marking a 22.02% increase from the previous month. This growth coincides with the fund's Net Asset Value (NAV) per unit increasing by 9.14%, a very large or significant move.
The Meezan Pakistan ETF, a Shariah-compliant fund, is designed to allow investors to track the performance of the Meezan Pakistan Index, which comprises Shariah-compliant equity securities selected based on market capitalization and traded value. The fund, which was launched on October 5, 2020, is listed on the Pakistan Stock Exchange (PSX) and falls under the Shariah Compliant Exchange Traded Fund category.
According to information available from the Pakistan Stock Exchange (PSX), the fund's equity allocation slightly increased from 95.09% in April to 95.46% in May. Cash allocations also saw a minimal rise from 4.29% to 4.46%, while other receivables decreased from 0.62% to 0.08%.
The fund's expense ratio for the month was recorded at 1.24%, while the year-to-date expense ratio stood at 1.70%, inclusive of government levies and SECP fees. The fund is managed by Ali Hassan Khan, CFA, FRM, with an investment committee comprising experienced professionals such as Imtiaz Gadar, CFA, and others.
The MP-ETF has demonstrated strong cumulative returns, with a monthly return of 9.14% and a fiscal year-to-date return of 11.83%. Over a three-year period, the fund has achieved a return of 31.70%, while the benchmark Meezan Pakistan Index recorded a slightly higher return of 32.91%.
The fund's top ten equity holdings include major companies such as The Hub Power Company Limited, which accounts for 13.36% of total assets, and Meezan Bank Limited, with a 13.32% stake. Other notable holdings include Engro Fertilizers Limited, Mad Energies Limited, and Pakistan State Oil Company Limited.
The MP-ETF offers investors benefits such as a lower fee structure and access to a diversified portfolio of securities. The fund's investment policy is aligned with the KMI-30 index, ensuring that the selected stocks are liquid and meet the security selection criteria to achieve the fund's investment objective.
With its latest performance, the Meezan Pakistan ETF continues to provide investors with opportunities to engage in Shariah-compliant investments while enjoying the transparency and tradability associated with exchange-traded funds.