Meezan Tahaffuz Pension Fund Reports Robust Performance in FY24

Karachi: The Meezan Tahaffuz Pension Fund (MTPF), designed to offer Shariah-compliant pension solutions, has demonstrated a strong performance across its sub-funds for the fiscal year ended June 30, 2024. The fund caters to varying levels of risk tolerance, providing investment options in equities, debt, money market, and gold, which have all posted positive returns, according to information available from the Pakistan Stock Exchange (PSX).

The equity sub-fund of MTPF yielded a remarkable return of 77.07% during FY24, marking a significant increase from the previous year’s total income. This fund generated Rs. 2,488 million in realized and unrealized gains on investments, driven by robust equities market performance. The debt sub-fund also saw an increase, posting a gross income of Rs. 1,171 million due to profitable Sukuk investments. Similarly, the money market sub-fund’s income rose to Rs. 2,089 million, predominantly from placements with banks and Sukuk investments.

In the sector-specific allocation within the equity sub-fund, the largest allocation at the end of FY24 was towards the oil and gas exploration sector, followed by cement and power generation, reflecting a strategic diversification aimed at maximizing returns. The gold sub-fund, while the smallest in terms of asset allocation, still managed to pull in a gross income of Rs. 35 million, primarily from rises in gold prices.

The fund’s conservative approach in asset allocation within the debt and money market sub-funds has focused on corporate and Ijarah Sukuks, contributing to stable income streams and guarding against market volatility. This strategy ensured steady returns despite varying market conditions throughout the year.

Moreover, the MTPF has continued its commitment to ethical investing, with the equity sub-fund setting aside Rs. 9.25 million for charitable purposes, in line with its policy to support community welfare initiatives.

Investors in MTPF benefit not only from competitive returns but also from the peace of mind that comes with knowing their retirement savings are managed in accordance with Shariah principles, making it an attractive option for those seeking secure and ethical investment avenues for their post-retirement income.