Meezan Islamic Income Fund Reports Robust Returns for FY23

Karachi: The Meezan Islamic Income Fund (MIIF) has recorded a significant annual return of 20.94% for the fiscal year ended June 30, 2024, primarily driven by profits on Sukuk and Islamic bank deposits. According to the fund’s latest report, the MIIF, which operates under the income fund category, has maintained a stable and competitive return for its investors by capitalizing on a diverse range of Shariah-compliant opportunities.

The fund’s strategic focus on Sukuk (Islamic bonds), Musharaka, and Murabaha instruments, along with Islamic bank deposits and term deposits, has contributed to a robust financial performance despite market challenges. The asset allocation for FY24 shows a significant placement in Bunuka at 33%, a decrease from 68% in the previous year, and a marked increase in investments in corporate Sukuks and Ijarah Sukuks.

According to information available from the Pakistan Stock Exchange (PSX), MIIF’s management emphasized maintaining a balance between high yield investments and risk management, which resulted in keeping most of the high-risk, high-return placements, such as Musharaka and Murabaha, to a conservative level during the fiscal year.

The fund has experienced challenges with specific investments, notably with leasing companies such as Searle Textile Mills Limited and Hascol Petroleum Limited. Negotiations regarding potential restructuring have not resulted in favorable outcomes, with ongoing legal proceedings affecting their stock values. Despite these setbacks, the fund has managed a net asset value of Rs. 51.5209 per unit as of June 30, 2024, up from Rs. 51.6491 per unit the previous year.

The MIIF’s total distribution to shareholders amounted to Rs. 1.336 million for the year, signifying a continued commitment to delivering shareholder value amidst fluctuating market conditions.