Meezan Gold Fund Reports Notable Growth Amid Rising Gold Prices

Karachi: The Meezan Gold Fund (MGF), which aims to provide investors with Shariah-compliant returns through investments in physical gold, has shown notable performance in its fiscal year ending June 2024, according to details revealed in its latest report.

The fund, which prioritizes investments in deliverable gold-based contracts and adheres to Islamic banking principles, posted a total income of Rs. 125 million during the fiscal year 2024, a significant improvement from its previous fiscal year’s total income of Rs. 86.11 million. The notable increase in net income, which reached Rs. 76.16 million this fiscal year, can be attributed to unrealized gains on investments and adjustments in gold prices, despite the depreciation of the Pakistani Rupee. According to information available from the Pakistan Stock Exchange (PSX), these figures reflect an income growth of 289%, with the fund’s net asset value per share increasing by 6.50 points to 163.92.

MGF’s asset allocation strategy remains conservative yet effective, with 87.78% of its assets invested in gold as of June 30, 2024, compared to 78.0% in the previous year. This increase signifies a stronger focus on gold investments, with the remaining 12.22% of assets held in cash and other receivables.

During the fiscal year 2024, the Meezan Gold Fund distributed Rs. 20 million to its investors, marking a payout of Rs. 2.00 per unit, which equates to a 4.00% interim payout based on the fund’s June 30, 2024 valuation. The fund’s performance slightly trailed its benchmark, which had a return of 6.13% compared to the fund’s 5.38%.

Furthermore, the investor base of MGF remains robust, with a total of 2,274 investors as of June 2024. This diverse portfolio ranges from individual investors holding between 1 to 9,999 units to larger investors possessing over 500,000 units, illustrating a wide trust in the fund’s management and strategy.

MGF’s commitment to Shariah compliance and its focus on gold as a significant part of its investment strategy continues to attract investors looking for safe and compliant investment opportunities in volatile markets.