Karachi: The Meezan Strategic Allocation Fund (MSAF), managed by Al Meezan Investment Management Limited, showcased a varied performance across its different strategic plans during the fiscal year ended June 30, 2024. The fund, which is a perpetual Shariah Compliant Fund of Funds scheme, is designed to generate returns through investments in Shariah-compliant fixed income and equity mutual funds, catering to varying investor risk tolerances.

Each of the five allocation plans within the MSAF is tailored to specific investor profiles, ranging from conservative to more growth-oriented strategies, allowing for dynamic shifts in asset allocation based on market performance predictions. The fund’s performance in FY24 reflects this diversity, with returns varying across the different plans but generally outperforming their respective benchmarks.

According to information available from the Pakistan Stock Exchange (PSX), the Meezan Strategic Allocation Plan I achieved a return of 48.52% against its benchmark of 44.10%, while Plan II saw returns of 49.26% compared to a benchmark of 43.70%. Plans III, IV, and V reported returns of 48.55%, 48.28%, and 46.72% respectively, each also surpassing their benchmarks.

Total income for these plans also showed significant variation. For example, Plan I posted a total income of PKR 31.00 million, up from PKR 4.00 million in the previous year, while Plan V's total income increased from PKR 1.00 million to PKR 6.00 million. This income includes both realized and unrealized gains on investments, as well as dividend income.

However, the fund's net assets saw declines in most plans except for Plan V, which increased by 24%. Plan I’s assets decreased by 50%, Plan II by 74%, and Plan III by 23%, with Plan IV experiencing a moderate decline of 13%.

The distribution payouts reflected the overall strategy of each plan, with final payouts ranging from 10.00 per unit (20.00%) in Plan I to 8.50 per unit (17.00%) in Plan V for the fiscal year.

MSAF’s strategy underscores the flexibility of its asset allocation approach, allowing for adjustments based on macroeconomic views and market performance expectations. This approach is vital for navigating the complex landscape of Shariah-compliant investments, ensuring compliance with Islamic financial principles under the guidance of Dr. Muhammad Imran Ashraf Usmani, the fund’s Shariah advisor.