Meezan Pakistan Exchange Traded Fund Sees Positive Performance in May 2024

Karachi: The Meezan Pakistan Exchange Traded Fund (MP-ETF) experienced a positive month in May 2024, according to financial data. On May 31, 2024, the net assets of the MP-ETF stood at Rs. 100.00 million, demonstrating a month-over-month increase of 18.13% from April 2024. The fund’s Net Asset Value (NAV) per unit also rose by 5.10%, reaching Rs. 14.42.

The Meezan Pakistan Exchange Traded Fund is a Shariah-compliant investment vehicle listed on the Pakistan Stock Exchange (PSX), operating under the management of Al Meezan Investment Management Ltd. According to information available from the Pakistan Stock Exchange (PSX), the fund tracks the Meezan Pakistan Index, which includes a diverse portfolio of Shariah-compliant equity securities.

Investment in the fund provides access to a diversified portfolio of securities with transparency of holdings, allowing the ETF to be bought or sold on the exchange during market hours, similar to stocks. The fund aims to offer investors an opportunity to track the performance of selected equities based on market capitalization and traded value.

As of the last update, the fund’s top equity holdings include significant shares in The Hub Power Company Limited at 15.07%, Meezan Bank Limited at 12.08%, and Engro Fertilizers Limited at 10.64%. Other major holdings include Engro Corporation Limited and Oil & Gas Development Company Limited. The management fee for the fund is capped at 0.50% per annum.

Comparatively, the Meezan Pakistan Index, which serves as the fund’s benchmark, saw its NAV increase by 5.46% in May 2024. Despite the fund’s positive performance, it slightly underperformed against its benchmark over the same period.

In terms of long-term performance, MP-ETF has shown a cumulative return of 61.15% since its inception in October 2020. This reflects the fund’s aim to provide steady returns to investors by adhering to Shariah principles in selecting equities.

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