Karachi: The Meezan Pakistan Exchange Traded Fund (MP-ETF), managed by MCB Investment Management Limited and designed to adhere to Shariah principles, has reported a net asset value (NAV) decline of 2.43% for July 2024.

According to information available from the Pakistan Stock Exchange (PSX), the fund’s NAV stood at Rs. 0.12 billion as of July 31, 2024, reflecting a monthly decrease. The fund aims to track the performance of the Meezan Pakistan Index, which consists of Shariah-compliant equity securities prioritized by market capitalization and traded value.

Launched on October 5, 2020, MP-ETF is characterized by its high-risk profile and is listed under the Shariah Compliant Exchange Traded Fund category on the PSX. The Central Depository Company Pakistan Limited serves as its trustee, with auditing provided by A.F. Ferguson & Company. It maintains an AMC rating of AM1 by PACRA as of June 21, 2024, and VIS as of December 29, 2023.

The fund experienced asset growth from Rs. 97 million in June 2024 to Rs. 125 million in July 2024, marking a 28.07% increase month-over-month. Despite this asset growth, the NAV per unit fell from Rs. 13.52 to Rs. 13.19 in the same period. The fund’s asset allocation shows a significant increase in equity holdings from 92.07% in June to 96.99% in July, with a decrease in cash and other receivables.

Performance metrics for MP-ETF show a one-month return of -2.43%, a three-month gain of 3.27%, and a significant half-year increase of 19.23%. The fund has generated a one-year return of 52.44% and a three-year return of 41.58%, with cumulative returns since inception standing at 58.36%. In comparison, the benchmark index posted slightly higher figures across these periods.

The top ten equity holdings of the fund include significant positions in Meezan Bank Limited, The Hub Power Company Limited, and Engro Fertilizers Limited, among others, highlighting a diversified portfolio that trades like a stock and can be bought or sold on the exchange during market hours.