Karachi: The Meezan Pakistan Exchange Traded Fund (MP-ETF), a Shariah-compliant financial instrument, reported a slight decrease in its total net assets in June 2024, while achieving a modest growth in Net Asset Value (NAV) per unit. According to the latest fund manager's report, the total assets slightly declined by 0.69% to Rs. 97 million in June from Rs. 98 million in May. However, the NAV per unit of the fund rose to Rs. 13.52, marking an increase of 0.71% during the same period.
This fund, managed by Al Meezan Investment Management Ltd., is listed on the Pakistan Stock Exchange (PSX) and seeks to mirror the performance of the Meezan Pakistan Index, which includes Shariah-compliant equities. According to information available from the Pakistan Stock Exchange (PSX), the MP-ETF's investment approach focuses on equities with high market capitalization and trading values, reflecting a strategy geared towards robust capitalization levels.
The top ten equity holdings of the fund include significant investments in The Hub Power Company Limited, which now constitutes 16.21% of the total assets, followed by Meezan Bank Limited and Engro Fertilizers Limited, with asset allocations of 11.11% and 10.43%, respectively. Other major holdings include Engro Corporation Limited and Oil & Gas Development Company Limited.
The MP-ETF offers a transparent investment avenue with a low management fee of 0.50% per annum, providing access to a diversified portfolio of securities. The fund is structured to allow investors to buy or sell units during market hours, offering the flexibility akin to trading stocks.
In terms of performance metrics, the MP-ETF has posted a 1-month return of 0.71%, with 3-month and 6-month returns standing at 12.70% and 22.24%, respectively. These figures are slightly under the performance of its benchmark, which recorded a 1-month return of 0.82% and a 6-month return of 24.00%.
Despite a challenging economic backdrop, the fund's strategy of adhering to Shariah principles and focusing on high-value equities appears to sustain investor interest and fund stability in the volatile market.