Karachi: The Meezan Pakistan Exchange Traded Fund (MP-ETF), an open-end Shariah-compliant fund, reported a notable increase in its net asset value (NAV) for October 2024, according to data released by Al Meezan Investment Management Ltd. The fund's NAV rose by 8.12% in October, bringing the total net assets to Rs. 128 million, up from Rs. 125 million in the previous month, reflecting a month-on-month growth of 2.67%.

Launched to track the Meezan Pakistan Index, the MP-ETF is listed on the Pakistan Stock Exchange (PSX) and is maintained by Al Meezan. The fund's performance is benchmarked against the Meezan Pakistan Index, with the aim of providing investors access to a diversified portfolio of Shariah-compliant securities, focusing on market capitalization and traded value.

According to information available from the Pakistan Stock Exchange (PSX), the MP-ETF's top equity holdings include Engro Fertilizers Limited, which constitutes 13.56% of total assets, and Meezan Bank Limited at 12.33%. Other significant holdings are Pakistan Petroleum Limited and Systems Limited, comprising 10.69% and 10.35%, respectively.

The fund has a high-risk profile, with equity allocations slightly decreasing from 96.15% in September to 95.41% in October. Cash holdings increased from 2.52% to 3.38% over the same period. The management fee is capped at 0.5% per annum, with the actual rate currently at the maximum allowable percentage.

In terms of performance, the MP-ETF has shown an annual return of 85.78% for the fiscal year 2024, although this is slightly lower than its benchmark's return of 93.94%. The fund's cumulative returns for the year to date stand at 70.16%, with a compound annual growth rate (CAGR) of 13.94% since its inception on October 5, 2020.

The MP-ETF is managed by Ali Hassan Khan, CFA, FRM, with the fund's trustee being the Central Depository Company Pakistan Limited (CDC), and A.F. Ferguson and Company serving as the auditor. The ETF's risk of principal erosion is categorized as high, and it is traded on the PSX like any other stock, allowing investors to buy or sell during market hours.