Karachi: The net assets of the Meezan Pakistan Exchange Traded Fund (MP-ETF), a Shariah-compliant investment vehicle, were reported at Rs. 1.26 billion as of March 31, 2026, marking a notable increase from Rs. 1.17 billion in the previous month. However, the fund’s Net Asset Value (NAV) per unit saw a significant decrease of 8.99% during March.
Launched on October 5, 2020, the MP-ETF is an open-end fund that operates under high-risk conditions, with the Meezan Pakistan Index (MZNPI) serving as its benchmark. The fund is listed on the Pakistan Stock Exchange (PSX), with the Central Depository Company of Pakistan Limited acting as its trustee. A.F. Ferguson & Company serves as the auditor, while the fund’s management company holds an AM1 rating from PACRA and VIS. The fund employs a growth unit type and is represented by the ticker MZNP-ETF.
According to information available from the Pakistan Stock Exchange (PSX), the fund is managed by Zohaib Jawaid, with a comprehensive investment committee comprising financial experts like Imtiaz Gadar, CFA, and Muhammad Asad. The committee also includes Ahmed Hassan, CFA, and Amreen Soorani, FCCA, among others. The fund has authorized participation from JS Global, Adam Sec, and MRA Sec, and follows a backward pricing mechanism for valuation and subscription/redemption days in line with market hours. The management fee stands at an actual rate of 0.50%, with a cap of up to 0.75%.
The fund’s asset allocation at the end of March comprised 98.36% in equity and 1.62% in cash, with a minor allocation of 0.02% in other receivables. Despite the decrease in NAV, the fund’s net assets increased by 8.04% month-on-month, reflecting a moderate move. The risk measures for MP-ETF indicate a standard deviation of 6.33%, a Sharpe Ratio of -0.53, and an Information Ratio of 0.71, with a beta of 0.86 against the benchmark indices.
The cumulative returns for the MP-ETF show a 1-month decline of 8.99%, underperforming the benchmark by a small margin. The fund’s fiscal year-to-date return is 17.51%, while the 1-year return is 14.30%. Over a longer period, the fund has achieved a 5-year cumulative return of 130.49% and a compound annual growth rate (CAGR) of 18.28%. Comparing annual returns, the fund experienced a return of 31.76% in FY25, showing a tracking difference of -1.62% compared to its benchmark.
The MP-ETF’s performance reflects the complex dynamics of the market and highlights its positioning within the designated market category of Shariah-compliant exchange-traded funds.