Mezan Balanced Fund Reports Strong Fiscal Performance Amid Market Challenges

Karachi: Mezan Balanced Fund (MBF), managed by Al Meezan Investment Management Ltd., showcased a robust financial performance for the fiscal year ending June 30, 2024, delivering a total income of 76.00 million with a net income of 6.83 million. According to information available from the Pakistan Stock Exchange (PSX), the fund’s notable returns are attributed to strategic asset allocations and effective market navigation, despite broader economic fluctuations marked by increased commodity prices and currency devaluation.

During FY24, MBF achieved a 4.33% increase in its net asset value, rising from 15.60 million in June 2023 to 18.36 million. This growth aligns with the fund’s objective to generate long-term capital appreciation through investments in Shariah-compliant equity and fixed income products. Noteworthy was the fund’s exposure to the cement sector, which despite experiencing a sharp PKR devaluation, contributed positively to the overall fund performance due to strategic investment redeployments.

The fund’s investment strategy, focusing on a balanced mix of equity (50%), Islamic Sukuk (27%), corporate Sukuk (18%), and other cash assets, has been pivotal in navigating the turbulent market conditions. The MBF also reported significant exposure to the oil and gas exploration sector, which rebounded strongly in FY22 but faced operational challenges in FY24.

Moreover, MBF’s distribution strategy marked a payout of 4.00 Rs per unit, distributing a total cash dividend of 32.22 million for the fiscal year, which underscores the fund’s commitment to delivering shareholder value amidst a challenging economic backdrop.

Performance benchmarks indicated that MBF significantly outperformed its peers with a KM 30 return of 78.70%, compared to the benchmark return of 38.19%. This illustrates the fund’s effective investment strategy and management’s adeptness at capitalizing on market opportunities to maximize investor returns.

In conclusion, Mezan Balanced Fund’s performance during a challenging fiscal year highlights its strategic resilience and adaptability, positioning it as a notable player in the investment management landscape.