AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: The Meezan Energy Fund (MEF), an open-end equity fund focused on Shariah-compliant investments in the energy sector, reported a substantial positive return of 86.79% to its investors for the fiscal year ending June 30, 2024. According to information available from the Pakistan Stock Exchange (PSX), this performance significantly outstripped its benchmark, the KSE Meezan Index (KMI-30), which rose by 78.70% in the same period.
The fund, managed by Al Meezan Investment Management Limited, linked its fortune closely with the broader energy sector’s performance in the equity market. It ended the fiscal year with a net asset value (NAV) per unit of Rs. 34.1048, a marked increase from Rs. 30.8497 at the beginning of the fiscal year. This rise reflects a robust total income of Rs. 496 million for FY24, compared to Rs. 10 million in the previous fiscal year, bolstered by a diversified gain on investments totaling Rs. 283 million and a dividend income of Rs. 69 million.
MEF’s strategy of managing risk while maximizing returns during market highs and safeguarding investments through cautious exposure during lows appears to have paid dividends. The fund’s portfolio allocation evolved over the year, with significant positions in major energy companies such as Oil and Gas Development Company Limited and Mari Petroleum Company Limited, which represented top holdings at 17.41% and 16.71%, respectively.
Furthermore, the fund’s commitment to ethical investing was emphasized through its charity contributions, directing Rs. 25.63 million in distributable income to various welfare organizations, a practice determined in consultation with their Shariah Advisor. The fund also maintained a strong governance stance, with all resolutions proposed during the fiscal year unanimously approved by its investors.
As MEF continues to adapt its investment strategy to the shifting market landscape, its performance in FY24 sets a promising precedent for investors looking for Shariah-compliant opportunities in Pakistan’s volatile energy sector.