Mezzan Sovereign Fund Reports Solid Performance and Stability for FY24

Karachi: The Mezzan Sovereign Fund (MSF), a notable player in the income funds sector, reported a commendable performance for the fiscal year ended June 30, 2024, with a return of 21.89% against a benchmark return of 18.95%. This performance highlights the fund’s effective management and strategic allocation of assets primarily in Shariah Compliant Sovereign Securities.

According to information available from the Pakistan Stock Exchange (PSX), the fund has maintained a stable investment portfolio predominantly in Ijarah Sukuks, with 80% allocation in June 2023 and 70% in June 2024, supplemented by cash and other incoming receivables. This strategic allocation supports the fund’s objective to provide investors with a low-risk and stable rate of return.

In the fiscal year 2024, the MSF generated a gross income of Rs. 9,742 million, primarily through profits on Sukuk certificates worth Rs. 7,975 million. The operational efficiencies and prudent investment strategies have been pivotal in navigating the volatile market conditions while ensuring substantial gains for the investors.

The fund has also declared a cash dividend of Rs. 11.14 per unit, disbursing a total of Rs. 1,907 million in dividends, reinforcing its commitment to delivering consistent shareholder value. The fund’s performance, coupled with a stable outlook from JCR-VIS Credit Rating Company, ensures its position as a reliable investment avenue in the current economic landscape.

MSF serves a diverse investor base, as highlighted by the distribution breakdown as of June 2024, ranging from small-scale investors to high-net-worth individuals, totaling 23,014 investors. This broad investor base underscores the fund’s appeal and trustworthiness in the financial market.