Meezan Asset Allocation Fund Posts Notable Growth in FY24

Karachi: Meezan Asset Allocation Fund (MAAF) has shown a significant growth in its asset value during the fiscal year ending on June 30, 2024, achieving a notable return of 60.44% despite slight underperformance against its benchmarks. The fund’s net asset value increased from 39.86 to 60.70, marking a substantial gain and underlining its strategic investment in Shariah-compliant equities and fixed income securities.

In FY24, MAAF’s equity exposure was prominently high at 86.04%, with the remaining assets distributed among Islamic money market and fixed income investments, and bank deposits. The fund’s strategy to actively manage the portfolio between equity and fixed income instruments aligns with its objective to yield higher than average returns, adjusted according to market dynamics. According to information available from the Pakistan Stock Exchange (PSX), the fund’s total income reached 190.00 million, a leap from last year’s 29.00 million, driven by a mix of realized and unrealized gains and dividend income.

The fund’s performance was bolstered by top holdings in major companies such as The Hub Power Company Limited, Mari Petroleum Company Limited, and Meezan Bank Limited, contributing to its robust portfolio growth. MAAF also declared a distribution of Rs. 3.25 per unit, totaling 15.00 million for the fiscal year, aligning with its policy to provide consistent returns to its investors.

Additionally, the fund maintained a clear proxy voting policy with all resolutions proposed during the fiscal year receiving 100% approval, reflecting strong governance and investor confidence. MAAF continues to focus on compliance with regulatory limits set by the Securities and Exchange Commission of Pakistan (SECP), ensuring maximum exposure of up to 90% in equities or fixed income as per assigned regulations.

MAAF’s commitment to ethical investing is further exemplified by its charity contributions, allocating Rs. 0.68 million towards charitable activities during the year, as part of its income distribution policy approved by its Shariah Advisor. This approach underlines MAAF’s dedication to balancing financial performance with social responsibilities.