Meezan Paaidaar Munafa Plan Reports Robust Annual Growth with 20.89% Returns

Karachi: The Meezan Paaidaar Munafa Plan (MPMP-V), managed under the Meezan Fixed Term Fund, showcased a significant annual performance, providing a 20.89% return to its investors for the fiscal year ending June 30, 2024. This return notably outstrips its benchmark rate of 9.18%, highlighting a robust outperformance of 11.71%.

According to information available from the Pakistan Stock Exchange (PSX), the Shariah Compliant Fixed Rate/Return Plan, re-launched on January 30, 2024, focuses on investments in Shariah Compliant Term Deposit Receipts (TDRs) and money market instruments. The fund’s asset allocation for FY24 was heavily skewed towards placements with banks, constituting 89% of its investments, with the remaining 11% in cash and other receivables.

During this period, the Meezan Paaidaar Munafa Plan generated a gross income of Rs. 942 million, primarily from profits on placements and Sukuk investments totaling Rs. 900 million. After accounting for expenses of Rs. 24 million, the net income reached Rs. 918 million. The fund’s net assets stood at Rs. 8.65 billion as of June 30, 2024, maintaining a stable net asset value per unit of Rs. 50 (Ex-dividend).

The fund also declared an interim payout of Rs. 4.34 per unit, corresponding to an 8.68% distribution rate, totaling Rs. 909 million for the half-year. Despite the fund’s high returns and payouts, the number of investors remains concentrated, with only two investors holding units—both in significant quantities above 100,000 units.

This performance reflects the fund’s strategic allocation and adherence to Shariah Compliant financial instruments, under the governance framework and exposure limits set by the Securities and Exchange Commission of Pakistan (SECP) and the directives of the Meezan Fixed Term Fund Offering Document.