Meezan Pakistan ETF Outshines with 85.78% Returns, Overhauling Asset Allocation for FY24

Karachi: Meezan Pakistan Exchange Traded Fund (MZNP-ETF), operating as an open end Shariah Compliant Exchange Traded Scheme, has recorded an impressive annual growth, with its Net Asset Value surging by 73.48% from 7.81 to 13.52 points as of June 30, 2024.

The fund, aimed at mirroring the Meezan Pakistan Index, has achieved a robust annual return of 85.78%, closely tracking the Meezan Pakistan Index, which itself escalated by 93.94% to settle at 16,793 points. According to information available from the Pakistan Stock Exchange (PSX), this performance underscores the fund’s successful investment strategy and asset allocation adjustments between the fiscal years 2023 and 2024.

The strategic investment in Shariah compliant securities facilitated MZNP-ETF’s substantial gains, with the fund’s total income soaring to Rs. 48.00 million in FY24, a monumental increase from the Rs. 1.00 million reported the previous year. This income was primarily derived from realized and unrealized gains on investments, totaling Rs. 13.00 million and Rs. 29.00 million respectively, alongside dividends of Rs. 6.00 million.

MZNP-ETF’s asset allocation saw considerable revisions over the reviewed period, adjusting from an equal distribution across various asset classes in FY23 to a more focused approach in FY24. The charity contributions dictated by Shariah compliance were reported at Rs. 0.24 million, designated for welfare organizations.

The fund’s performance was bolstered by a strategic distribution of payouts, totaling 7.2 million during the fiscal year, reflecting a continued commitment to rewarding investors amidst a positive market trajectory. As of the end of June 2024, the fund’s net assets stood at Rs. 97.00 million, marking a 40% increase from the previous year.

No proxy votes were cast during the year, aligning with the Management Company’s clear policy directives available online. The detailed composition of investors showcased a broad spectrum of unit holders, from small-scale investors to larger institutional participants, underscoring the fund’s appeal across diverse investor classes.

MZNP-ETF’s robust annual performance, coupled with its strategic operational shifts and compliance with Shariah mandates, positions it as a noteworthy player in the competitive landscape of Shariah compliant funds in Pakistan.