Karachi: Net assets for the Meezan Pakistan Exchange Traded Fund (MP-ETF) stood at Rs. 0.27 billion as of April 30, 2025, reflecting a decrease of 4.38% from the previous month, according to the fund's latest performance review. The fund's net asset value (NAV) per unit also saw a decline of 11.54% during April, signaling challenges in the broader market environment.
Launched on October 5, 2020, the Meezan Pakistan ETF is a Shariah-compliant exchange-traded fund designed to track the performance of the Meezan Pakistan Index, which comprises select Shariah-compliant equity securities. These securities are chosen based on their market capitalization and traded value, ensuring alignment with Islamic investment principles. The fund is classified as an open-end fund with a high-risk profile, and it is listed on the Pakistan Stock Exchange (PSX).
The fund's performance is benchmarked against the Meezan Pakistan Index (MZNPI), with its index comprising selected liquid stocks as per the KMI-30 index. The trustee for the fund is the Central Depository Company of Pakistan Limited, and it is audited by A.F. Ferguson & Company. The fund manager, Ali Hassan Khan, CFA, FRM, leads an investment committee consisting of several financial experts.
According to information available from the Pakistan Stock Exchange (PSX), the MP-ETF's peer group average return for April was -7.33%, while the five-year peer group average return stood at 2.21%. The fund's cumulative returns over various periods also saw fluctuations, with a 1-month return of -11.54% and a fiscal year-to-date performance of 19.82%.
The top ten equity holdings of the MP-ETF include The Hub Power Company Limited, Meezan Bank Limited, and Engro Fertilizers Limited, among others. The ETF's portfolio is characterized by a lower fee structure and provides investors with access to a diversified portfolio of securities. The expense ratio for the fund in April was 1.22% month-to-date and 1.77% year-to-date, inclusive of government levies and SECP fees.
Despite the recent decline in assets and NAV, the ETF continues to offer transparency of holdings and trades like a stock, allowing purchases and sales on the exchange during market hours. The management fee is capped at 0.5% per annum, with the actual rate being applied.
As of April, the MP-ETF's asset allocation was heavily weighted towards equity at 95.09%, with cash and other receivables making up the remainder. The fund aims to continuously monitor its performance against the benchmark index to achieve its investment objectives.