Karachi: The Meezan Pakistan Exchange Traded Fund (MP-ETF), managed by Al Meezan Investment Management Limited, posted a positive return of 85.78% for the fiscal year ended June 30, 2024, compared to a negative return of 1.32% in the previous year. According to information available from the Pakistan Stock Exchange (PSX), the Meezan Pakistan Index (MZNPI), which serves as the benchmark index for the fund, increased by 93.94% during the same period, closing at 16,793 points.
The MP-ETF’s net asset value (NAV) as of June 30, 2024, stood at Rs. 13.52 per unit, up from Rs. 7.81 per unit on June 30, 2023. This marked an increase of 73.17% in the NAV over the fiscal year. The total net assets of the fund grew by 40.10% to reach Rs. 97.00 million, compared to Rs. 69.00 million at the end of the previous fiscal year.
The fund’s total income for the fiscal year was reported at Rs. 48.00 million, up significantly from Rs. 1.00 million in the previous year. This income comprised realized gains and unrealized gains on investments amounting to Rs. 13.00 million and Rs. 29.00 million, respectively. Additionally, dividend income contributed Rs. 6.00 million, while profit from savings accounts with banks stood at Rs. 0.20 million.
During the year, the fund distributed a total of Rs. 7.20 million in dividends, which resulted in an interim payout of Rs. 1.00 per unit. The distribution was made on June 28, 2024.
The Meezan Pakistan Index, which is maintained by Al Meezan Investment Management Limited, is composed of Shariah-compliant equity securities that are selected based on market capitalization and trading value. The fund seeks to provide investors with an opportunity to track the performance of these securities through its Shariah-compliant investment strategy.
Dr. Muhammad Imran Usmani, the Shariah Advisor for MP-ETF, confirmed that all operations of the fund for the fiscal year ended June 30, 2024, were in compliance with Shariah principles. He further noted that earnings realized through prohibited sources were transferred to charity as part of the fund’s purification process.
In terms of asset allocation, the fund invested primarily in the Fertilizer and Oil and Gas Exploration sectors, which represented 24.00% and 17.00% of the total allocation, respectively. Other significant allocations included Power Generation and Distribution (16.00%) and Cement (12.00%).
The financial statements of the Meezan Pakistan Exchange Traded Fund for the year ended June 30, 2024, were audited by A. F. Ferguson and Co., Chartered Accountants. In its audit report, the firm expressed an unmodified opinion, confirming that the financial statements give a true and fair view of the financial position of the fund as of June 30, 2024.