Karachi: The Meezan Pakistan Exchange Traded Fund (MP-ETF) revealed a substantial decrease in its Net Asset Value (NAV) for July 2026, as reported in its Fund Manager Report dated August 17, 2026. The NAV decreased by 3.36%, marking a very large or significant move for the fund during the month. This decline stands out starkly against the fund's performance metrics, raising questions on investor strategies in the current financial climate.
According to details from the report, the net assets of MP-ETF grew to Rs. 2.30 billion by the end of July 2026, a notable increase from Rs. 1,440 million in June 2026. This represents a growth of 59.89% in net assets, suggesting a significant influx of capital despite the decline in NAV.
The Meezan Pakistan Exchange Traded Fund, launched on October 5, 2020, is a Shariah-compliant fund aiming to track the performance of the Meezan Pakistan Index. The fund's portfolio is carefully constituted with high market capitalization equity securities selected on the basis of Shariah compliance.
The fund's equity holdings are diversified across several sectors, with the highest allocations in Oil & Gas Exploration Companies (22.46%), Cement (16.57%), and Fertilizer (14.81%). Key companies in the portfolio include Fauji Fertilizer Company Limited at 14.81% and Engro Holdings Limited at 12.84%.
According to information available from the Pakistan Stock Exchange (PSX), the MP-ETF is listed with various authorized participants such as JS Global, Adam Securities, and MRA Securities. The fund management is led by Muhammad Zohaib Jawaid, CFA, with a diverse investment committee overseeing its performance.
Risk measures indicate a standard deviation of 6.32% for the MP-ETF, with a beta of 0.87, suggesting lower volatility compared to the KSE-100 and KMI-30 indices. Meanwhile, the fund's Sharpe ratio was recorded at -0.40, reflecting the challenges faced in achieving returns adjusted for risk.
Despite the recent setbacks, the MP-ETF has demonstrated strong cumulative returns over the years, with a five-year growth of 157.90% and a compound annual growth rate (CAGR) of 19.96%. This positions the fund strategically for long-term investors who prioritize Shariah-compliant investment opportunities.
The fund is categorized under the Shariah Compliant Exchange Traded Fund with an AM1 rating from PACRA and VIS, reflecting its robust structural integrity and adherence to compliance standards. The fund's management fee ranges from 0% to 0.75%, with an actual rate of 0.50%, ensuring a competitive fee structure for investors.
In conclusion, while the Meezan Pakistan Exchange Traded Fund faced a significant NAV decline in July 2026, its overall growth trajectory and diversified portfolio continue to offer promising prospects for investors seeking Shariah-compliant investment solutions.