ABSTRACT

An assessment of Al
Meezan Investment
management Ltd and its
investment plans. This
report analyzes the
performance of the
company’s offered
project.

A project by M.
Sameer (63720),
Rimsha Shakeel
(64110), Saniya
AL MEEZAN INVESTMENT Khurram (62449) and
Wajeeha Siddiqui
(62799)
MANAGEMENT LTD.
Submitted to Sir Sikander Iqbal
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Table of Contents
ABOUT THE COMPANY....................................................................................................................3
UNDERSTANDING MUTUAL FUNDS AND NAV................................................................................3
Mutual funds................................................................................................................................3
Benefits of Mutual Funds.............................................................................................................4
Net Assets Value - NAV................................................................................................................6
PROJECTS OF AL MEEZAN INVESTMENT MANAGEMENT................................................................6
SAVINGS PLAN.................................................................................................................................7
RETIREMENT PLANS.........................................................................................................................8
INVESTMENT PLAN..........................................................................................................................9
MONTHLY INCOME PLANS.............................................................................................................10
CAPITAL PERSERVATION SOLUTIONS............................................................................................10
SEPARATELY MANAGED ACCOUNTS..............................................................................................11
Mutual Funds.................................................................................................................................12
1. Equity funds........................................................................................................................12
Meezan Islamic Fund..............................................................................................................12
Al Meezan Mutual Funds........................................................................................................14
Al Meezan Dedicated Equity Fund.........................................................................................15
2. Meezan Sector funds..........................................................................................................16
Meezan Energy Fund..............................................................................................................16
3. Index Tracking Fund............................................................................................................17
KSE Meezan Index Fund.........................................................................................................17
4. Balanced Funds...................................................................................................................20
Meezan Balanced Fund..........................................................................................................20
5. Assets Allocation Fund........................................................................................................22
Meezan Asset Allocation Fund...............................................................................................22
6. Fund of funds:.....................................................................................................................25
Meezan Financial Planning Fund – Savings plan....................................................................25
Aggressive Allocation Plan......................................................................................................26
Moderate Allocation Plan.......................................................................................................26
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Conservative Allocation Plan..................................................................................................27

Meezan Asset Allocation Plan - I............................................................................................28
Meezan Strategic Allocation Fund Class I...............................................................................28
Meezan Strategic Allocation Plan – Class II............................................................................28
Meezan Strategic Allocation Plan – Class III...........................................................................29
7. Commodity funds...............................................................................................................29
Meezan Gold Fund.................................................................................................................29
8. Fixed Income Funds............................................................................................................31
Meezan Islamic Income Fund.................................................................................................31
Meezan Sovereign Fund.........................................................................................................32
Meezan Cash Fund.................................................................................................................33
Rozana Amdani Fund..............................................................................................................34
9. Exchange Traded.................................................................................................................35
PAKISTAN STOCK EXCHANGE.................................................................................................35
10. Pension Fund Scheme.....................................................................................................35
Meezan Tahaffuz Pension Fund.............................................................................................35
INVESTING IN AL MEEZAN INVESTMENT MANAGEMENT LTD......................................................37
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ABOUT THE COMPANY

The vision of Al Meezan investment is to make Shariah Compliant Investing a first choice for
investors.  They have a different custom base of over 130,000 investors, reaching from
institutions and businesses to individuals and High Net Worth clients. The company offers
investment solutions, mutual funds and investment suggested services which are providing to
specific needs of each of their customers.
As it is the largest private sector of Asset Management and Investment Advisory Firm working
in Pakistan they are offering an inclusive range of Shariah obedient investment solutions.
With a remarkable track record of over 25 years, they value the status of being the only
company in Pakistan with the only command which they provide to Shariah complaint
investment solutions.
Their aim is to be innovate and dependably perform, thereby helping investors in achieving
their financial objectives in a Shariah compliant manner. Their philosophy is based on 5 Core
Values which is enables for them, and their performance in agreement with their mission to
establish Al Meezan as a chief and trusted brand for savings and investments for them.

With their assets, they are under management of over 162 Billion, as of December 2020, Al
Meezan offers their customers a diverse range of Shariah compliant investment solutions
ranging from equity, balanced, asset allocation, fixed income, money market, capital
preservation, fund of fund, commodity and voluntary pension schemes which is conditional
on each investor’s need, they provide expert guidance to them to attain their financial
objects.

Their Separately Managed Accounts, popularly known as SMAs, offer Clients a comparatively
customized option to structure a Portfolio and Stock Management. Under this Investment
Suggested service, they also help us in esteemed clients with a cost effective solution to
current their own portfolio ideas and supplies, all the while, providing expert direction and
offers on how to achieve their investment objective.

UNDERSTANDING MUTUAL FUNDS AND NAV

Mutual funds

A mutual fund is where a company on behalf of its several investors, an investment company
could be a single portfolio of investments wherever investors place their cash to be managed by
associates. This permits every capitalist to knowledgeable managed group of funds.

The financial gain earned through these investments and therefore the capital appreciation
realized is shared by its unit holders in proportion to the amount of units owned by them.
 Page |4

The Fund Manager invests the fund’s capital in profitable avenues and arranges to earn an
income for the fund’s investors. The investment plan of the investor is decided upon according
to his risk appetite and return required.

Benefits of Mutual Funds

Mutual fund investment offers energetic blessings particularly for people preferring to not be
concerned directly within the stressed and time is extremely good method of learning
corporations and so inserting execution orders with brokers irregular value moment of stock.

• Professional Management

Mutual Funds keep a team of experts and practiced professionals for the investment higher
reasoning process. Team consists of dedicated fund management and investment analysis team
that analyze the performance and prospects of corporations and selects appropriate
investments to attain the objectives of the fund. The Fund Manager has the expertise and
resources necessary to follow the markets, choose investments, and track their performance.

• Diversification

Diversification is one among the foremost energetic edges of investment company investment
because it reduces investment risk of concentration. In straightforward terms it are often
explained.

Mutual Funds invest in corporations across a broad crosswise of industries and sectors. This
diversification reduces the danger as a result of rarely do all stocks decline at identical time and
within the same proportion. Attributable to various vary, the ups and downs of any security
have less result on the fund’s overall performance. However, although change will enable scale
back the danger and improve the security of investment, it doesn't guarantee loss intervention.

• Liquidity

Liquidity just means that having the ability to access your cash once you would like it. With
mutual funds you'll be able to obtain and sell units simply, move cash among totally different
funds, and exchange.

• Affordability

As a little capitalist, you'll realize that it's unreasonable to shop for shares of corporations with
high share worth. Such corporations have low share base and high profits as a result investors
allot them higher worth. Mutual funds access to pool funds document to shop for securities in
 Page |5

market in each worth class. Through mutual funds investors will fancy a distributed portfolio by
investment as low as Rs 5,000.

• Tax controls

To induce saving habits generally public, Government of Pakistan has given motivation to
capitalist in style of tax refund. Associate capitalist will claim tax rebate by investment in mutual
funds and reducing his liabilities to government. Also, investments control by investors for
amount of 48 months or additional qualify for exception from Capital Gains Tax

• Convenience

Investors stay occupied with their daily task and realize it in trouble some of follow market on
daily. Mutual funds on different hand acts on your behalf and monitor your investment on
minute to minute basis. Being professional in their space, they're conjointly higher equipped to
form call on timely basis.

• Return Potential

Due to their experience in investment higher cognitive process and accessibility of dedicated
resources, Mutual Funds have the potential to supply the next income in medium to long run.
Mutual funds even have advantage of diversification that reflects in higher returns in long run.

• Transparency

Mutual funds are watched by regulators, center (stock exchange), agent, auditors and in our
case of any law auditor conjointly. Multiple levels manage and audit builds trust of capitalist
because it makes investment method terribly clear. In addition to the present, the Fund
conjointly prepares and discloses periodic monetary statements, which give associate in-depth
review of all the most important activities undertaken by the fund over the amount.

• Flexibility

Mutual Funds offer numerous worth supplementary services that makes it terribly simple for
investors to manage and track their investments. They will even invest or redeem in Investment
Company by simply sitting reception through on-line transactions. Mutual funds have goal
based mostly plans like Systematic Investment Plans and Savings Plans that are convenient for
investors to take a position and reach their long run objectives like kids’ education or wedding.
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Net Assets Value - NAV

Net asset value is the value of an organization in which their assets minus the value of its
liabilities, often in relation to mutual funds, and the number of shares of such funds registered
with that organization. The NAV represents the per share/unit price of a fund at a specific time.
Net asset value," or "NAV," of any investment company is the company's total assets minus its
total liabilities.

FORMULA OF Nav

NAV=TASSETS –T LIABILITIES

For example, if any XYZ investment company has securities and other assets value is Rs.200
million and has liabilities of Rs.10 million, the investment company's NAV will be Rs.190 million.
Because an investment company's assets and liabilities have been changed daily, NAV will also
change daily so NAV might be Rs.190 million in a one day.

Mutual funds and Unit Investment Trusts (UITs) generally must calculate their NAV at least once
every business day, typically after the major exchanges close. A closed-end fund, whose shares
generally are not exchangeable that is not even compulsory to be repurchased by their fund is
not focus to this condition.

The formula for a mutual fund's NAV calculation is straightforward:

NAV = (Assets - Liabilities) / Total number of outstanding shares.

The correct qualifying items should be included for the assets and liabilities of a fund. 

PROJECTS OF AL MEEZAN INVESTMENT MANAGEMENT

Al Meezan offers a wide range of investment opportunities such as:

 Meezan Savings plans

 Meezan Pakistan Stock Exchange fund
 Retirement plans
 Monthly Income Plans
 Capital Preservation Solutions
 Separately Managed Accounts
 Mutual Funds
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SAVINGS PLAN
Al Meezan offers great opportunities for saving and then investing according to the needs of
the investor. It currently offers its customers plans such as educational savings, marriage
savings, hajj savings and home builder plan.

Policies of savings plans:

1. The plan would be accessible only till the investor is under 60 years of age.
2. The initial amount to invest for any purpose will be starting from Rs. 5,000
3. There are no penalties or any kind of redemptions.
4. The plan will be valid for 3 years minimum to maximum 18 years
5. Investor can contribute monthly, quarterly, semi-annually or annually.
6. The family gets takkaful coverage.

EDUCATION PLAN:
Al Meezan offers this plan to customers so they may invest for their children’s education.
Investors have ease of contributing and allocating at the right time with acceptable risk.

MARRIAGE:
As the investor is investing the money for the appropriate time when investor needs the
money. It helps them to utilize the amount on their children wedding purpose.

HOME BUILDER PLAN:

Customers can save for their dream home and access the amount when needed.

HAJJ:

As Hajj is the wish of all the Muslims to perform, but because of the high expense some can’t
afford it. AL Meezan gives a very amazing scheme of savings. The investor can save the money
and the appropriate time of Hajj comes so the investor withdraw the money to perform Hajj.

SHARIAH COMPLIANT EQUITY

SHARIAH COMPLIANT MSF(meezan
SAVING PLANS FUNDS OR MIF(meezan investment
saving funds)
funds)

Aggressive Allocation Plan 65% 25%

Moderate Allocation Plan 45% 45%

Conservative Allocation Plan 20% 70%

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RETIREMENT PLANS
Al Meezan offers a hassle-free retirement plan for its customers. Some funds which are
included:

 Equity funds
 Debt funds
 Money market funds
 Commodity funds
UTILIZING PESNION FUNDS:
Voluntary pension system is a long-term planning to secure the future of the investor. By using
this scheme, the investor can get regular income after his retirement. The investment growth is
high, and has a low tax therefore; the amount will be less deducted from the amount of
pension.

ALLOCATION SCHEME
ALLOCATION
SERIAL NO. EQUITY DEBT MONEY MARKET
SCHEME

1. High Volatility 80% 20% 0%

2. Medium Volatility 50% 40% 10%

3. Low Volatility 25% 60% 15%

4. Lower volatility 0% 50% 50%

5. Life Cycle Scheme

18 - 30 80% 20% 0%

31 - 40 70% 30% 0%

41 - 50 50% 40% 10%

51 - 60 25% 45% 30%

61 - 75 15% 40% 45%

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Retirement planning:
MONEY
SERIAL NO. PLAN EQUITY DEBT
MARKET

1 Low Volatility 25% 60% 15%

2 Lower Volatility 0% 50% 50%

INVESTMENT PLAN
1) Flexible Planning: The investors can make plans as per there convince, like how much
they can invest and if they want to change or add something then they can change it with ease.
2) Value of money: To accomplish their long-term goals, hence there is no kind of side
effect of inflation on investment money.
3) Life takaful: It’s very useful for those who are disable, Al meezan provides wheelchair or
need of investor so that can have all necessities or someone’s have an accidental death,
therefore, life takaful will ensure all the basic necessities of his family.
4) Easy redemption: Investment plan redemption can be online and easier for the investor
for doing the payments.
SYSTEMATIC INVESTMENT PLAN:
Systematic investment plan is a complete system base for the investment. The method is firstly
plan about how much to invest in mutual funds through an installment or pay full amount, it’s
depend on investor. Therefore low investment will reduce the risk of the investor.

AL MEEZAN TODAYS LOW

WORK LOAD, STRESS, INVESTMENT PLANS INVESTMENT,
LOW INCOME REDUCES ALL FUTURE
PRESSURE RELAXATION
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MONTHLY INCOME PLANS

The objective of monthly income plan is to facilitate the investor, there is a monthly additional
income will help them in their expenses for instance their monthly budget, groceries,
expenditures etc.
PURPOSE AND BENEFITS OF MONTHLY INCOME:
Meezan Mahana Kharch Account (MMKA) from this plan an additional amount will be monthly
given to investors which is so helpful and amazing for the investor as they gets additional
monthly income. Meezan Mahana Kharch Account (MMKA) is totally Islamic Income funds. The
basic purpose is to facilitate the investor for more benefits and relaxation. The plan consists of
payments on monthly basis, quarterly basis and semiannually basis as per investor’s needs and
wants.

CAPITAL PERSERVATION SOLUTIONS

Investing in capital preservation to secure the invested amount and get profits in a pure way.
It’s basically for those who are not sure about investments programs like they have doubt in
investing their money, has fear of fraud or money loss. So preservation should be secure the
amount of the capital (investor) therefore, they can invest without any kind of a fear, and have
profits.
NEEDS AND REQUIREMENT FOR CHOOSING THIS PLAN:
Implementation of Meezan Strategic Allocation Fund these funds will be based on Meezan
Capital preservation plan. According to this allocation of funds there is a performance which is
evaluating and computed by NAV. Rate of return of investment is consist of market risk which
is not a fixed amount, if the market rate goes up and down, the return will be according to
that risk.
Inventors think about the risk, if their money will be saved or loss by any fraud by investing in it.
Investor has a tough that if they invest, and if they need some money for any reason so how
will they accumulate it. For upcoming years like COVID has effected a lot, so the investor is
thinking about ups and down in their organization position.
SOLUTIONS TO ALL PROBLEMS BY AL MEEZAN
AL- Meezan secures the entire amount invested by the investors.
Totally halal by Shariah Complaint with profits.
If there is any need in case of any emergency so, the investor can withdraw their amount
immediately without any time consuming.
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SEPARATELY MANAGED ACCOUNTS

Separately Managed accounts consist of an individual person, based on the regular income, and
capital preservation or return on investments, may have direct ownership of securities and
taxes over mutual fund. While the investor, invest the amount according to their needs, or by
the advisory of the portfolio which is based on risk tolerance and rate of return.
USE OF SEPARETLEY MANAGED ACCOUNTS
Portfolio Management and Advisory service has efficient plans like Retirement Funds, and high
net worth individuals (HNWIs) issued by the Securities and Exchange Commission of Pakistan.
Some of the Investment Advisory services are mentioned below:
Discretionary Portfolio Management
Discretionary Portfolio Management based on a complete portfolio of the investor that it’s
amount of investment, the risk, and also included Investment Advisory service.
Investment decisions are on mutual agreements of the investors. There is an authorization of
the investment by buying the shares, or selling it. Sometimes trade securities (short-term profit)
can be done as per investor’s requirement. Portfolio management is total based on investor’s
choice from start till end, asset allocation and Investment Policy the whole process and Al
Meezan Investments also look at the risk rate so that the amount should be given be given to
their investors must be beneficial for them
Non- Discretionary Portfolio Management
Basically, it has the risk, sometimes due to any economy’s ups and downs, so the choice of the
investor will remains the same as before like if they want to withdraw they can. This may take
the reviews by the investors like, asset allocation, risk analysis and investment criteria, and
conditions of the Investment Policy. Otherwise, this Non- Discretionary Portfolio Management
is similar to Discretionary Portfolio Management
Investment Advisory
Investors implement of investment in buying and following the strategies or adding in it. The
advisor is making the performance report, and gives to the investor. The amounts can vary from
fixed rates to performance based as per convenient to the investor. The investors all records
must be confidential.
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Mutual Funds
Al Meezan offers a wide variety of mutual funds to customers on the basis of their needs.

1. Equity funds

Meezan Islamic Fund

Meezan Islamic Fund (MIF) is an open-end Shariah Compliant equity scheme. They invest
their funds only in those listed companies which have been agreed by their Shariah Advisor as
Shariah compliant. This project focuses to find long-term capital increase in a Shariah
compliant manner. Meezan importance is on contribution towards growth, both through
appreciation and dividend income. The investment strategy is to identify and invest in
businesses of the scheme which have predictable growth prospects.
MIF is the largest Open-end Equity Fund in the Private Sector of Pakistan and has PKR 30.97
billion assets under management as on December 31, 2020. This mainly because of the
dedication of the investment team as it even overlooks the change in management of these
businesses and key strategic decisions of management which could positively or negatively
affect their growth in the near future. This is why if you invested Rs. 100,000 in MIF at the
time of launch in August 2003, the value of your investment has increased by 1136.83% to
reach Rs. 1,236,830 as on December 31, 2020.
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Financial performance
NAV per Unit

83.28

63.04
57.63 59.15
55.48

FY16 FY17 FY18 FY19 FY20

Figure 1 Net Asset Value of MIF

The net assets of Meezan Islamic Fund (MIF) by 29% from Rs. 30,968 million at December 31,
2020 compared to Rs. 24,072 million at the end of June 2020. The net asset value (NAV) per
unit as at December 31, 2020 was Rs. 59.1492 in comparison to Rs. 46.7710 per unit as on June
30, 2020 translating into a return of 26.47% during the period. The NAV over the last five years
has been shown in Figure 1.

MIF DIVIDEND
6.00

5.00

4.00

3.00

2.00

1.00

0.00
FY15 FY16 FY17 FY18 FY19 FY20

Figure 2 Al Meezan Islamic income fund dividend over the last five years

The Figure above represents the fluctuation in the dividend of the MIF during the last five years.
Figure 3 shows the actual performance of MIF compared with the benchmark values over the
last five years. The graph indicates how well the fund has been managed to perform up to the
benchmark in the last two years.
 P a g e | 14

30.0%

20.0%

10.0%

0.0%
FY15 FY16 FY17 FY18 FY19 FY20

-10.0%

-20.0%

-30.0%
MIF Return KMI - 30 Index Return

Figure 3 Annual returns of MIF compared to KMI benchmark

Al Meezan Mutual Funds

The objective of the Al Meezan Mutual Fund (AMMF) is to optimize the total investment
returns both capital gains and dividend income through prudent investment management.

Financial Performance
60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
-10.00%

-20.00%

-30.00%

AMMF Benchmark

The AMMF had an increase in its returns from -24.4% in 2019 to a positive 3.09% return in
2020. The improve in returns is shown in the above figure. The Net Asset Value per unit of the
Mutual Fund had a slight increase since the last year. Over all, the net assets of Al Meezan
Mutual Fund (AMMF) as at December 31, 2020 were Rs. 4,777 million compared to Rs. 3,913
million at the end of June 2020, an increase of 22%. The net asset value (NAV) per unit as at
December 31, 2020 was Rs. 16.5864 compared to Rs. 13.3176 per unit on June 30, 2020
translating into return of 24.54% during the period compared to the benchmark return of KSE
Meezan Index (KMI 30) of 29.41%.
 P a g e | 15

NAV per Unit

22.55

17.5
16.12 16.59
15.42

FY16 FY17 FY18 FY19 FY20

Al Meezan Dedicated Equity Fund

The Al Meezan Dedicated Equity Fund (MDEF) serves the sole purpose of providing fund of
funds scheme a dedicated equity platform for seeking long term capital appreciation.

Financial Performance
0.1

0.05

0
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

-0.05

-0.1

-0.15

-0.2

-0.25

-0.3

MDEF Benchmark

The above figure shows the annual returns of the MDEF over the last seven years. There was a
sharp decline in its performance during 2019. However, the funds returns improved in 2020 and
the Net Asset Value improved. The net assets of Meezan Dedicated Equity Fund (MDEF) as at
December 31, 2020 were Rs. 948 million compared to Rs. 619 million at June 30, 2020, an
increase of 53%. The net asset value per unit (NAV) at December 31, 2020 was Rs. 43.7932 as
compared to Rs. 34.6044 per unit on June 30, 2020 translating into a return of 26.55% during
the period compared to the benchmark return of KSE Meezan Index (KMI 30) of 29.41%.
 P a g e | 16

2. Meezan Sector funds

Sector Funds are mutual funds that capitalize in a detailed sector of the economy, such as
energy or utilities.

Meezan Energy Fund

Meezan Energy Fund (MEF) is a Shariah Compliant Energy Sector (Equity) Scheme. They take
contact to Shariah compliant energy sector stock which is available at Pakistan Stock
Exchange (PSX) and they actively managed to offer the fund in a simple way. The objective of
MEF is to search for long term capital increase through investments in Shariah compliant
equity stocks, primarily from the energy sector.

Objective

Meezan Energy Fund is an open-opportunity to Shariah Compliant Energy (equity) scheme

which is experience in Shariah Compliant Energy sector stocks of Pakistan Stock Exchange (PSX)
it is Up to 100% equity. Sector contribution make possibility, based on fund manager’s view on
Sector. Meezan gives an opportunity to participate in a mature sector that is planned to benefit
from the Prize.

Significance
China Pakistan Economic Corridor (CPEC) projects and also give the Benefit from the expected
rise in global oil prices. (MEF) Actively managed by experienced Fund Managers. No lock-in
period and back-end load. Meezan helps in Long term capital increase in Investors looking to
give funds to Energy Sector. They have high potential in Risk and Return.

20.0%

10.0%

0.0%
FY17 FY18 FY19 FY20

-10.0%

-20.0%

-30.0%

-40.0%

MEF Return Benchmark Return

Figure 4 MEF annual returns and benchmark comparison

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Figure 4 shows the different annual returns of the Meezan Energy Fund over the last three
years. The fund has been performing extremely low at a -10.04% which is below the expected
benchmark of 1.62% returns in December 2020. The figure below represents the Net Asset
Value of the fund over a period of five years.

mef - nav per unit

54.03

47.33

39.29 39.54

32.73

FY16 FY17 FY18 FY19 FY20

Figure 5 MEF annual changes in NAV

The net assets of Meezan Energy Fund (MEF) as at December 31, 2020 were Rs. 417 million
compared to Rs. 542 million in June 2020, a decline of 23%. The net asset value (NAV) per unit
as at December 31, 2020 was Rs. 32.7304 as compared to Rs. 30.0200 per unit on June 30,
2020, translating into a return of 9.03% during the period.

3. Index Tracking Fund

Index-tracking funds, commonly known as index funds, are funds that are set up to track the
performance of an index. The investment objective of an index tacking fund is to provide
investors with returns that are in line which show the performance of the benchmark index like
KSE Meezan Index 30 (KMI-30).

KSE Meezan Index Fund

KSE Meezan Index Fund (KMIF) is an exposed-conclusion Shariah Compliant index- tracker
scheme. The fund allows to investors to seek experience to the KMI-30 index stocks in the
same proportion as in the index.
 P a g e | 18

Objective
KMIF aims to follower the performance of the KMI 30 index with the objective they using
inactive investment strategies to provide investors to returns that are closely allied with the
returns of the tracked or benchmarked index. Meezan is included in the KMI 30 Index which
they invest the fund and only invests in stocks of companies.
It is a cost-efficient way to invest in KMI 30 Index, A passive investment philosophy and do not
want to be dependent on security selection and sector allocation by Fund Manager. They have
High in risk and return potential.

Financial performance

It is the only fund that aims to track the most required after Islamic Index available in Pakistan.
A one-stop solution for putting your money into every single company that constitutes the KMI
30 Index. They have Low cost in relation to lower Management Fee charged by the fund and
these Fund has generated a total return of 143.34% since start (May 23, 2012 till December 31,
2020).And their Average Annualized return since start (May 23, 2012 till December 31, 2020) is
10.88% in PKR terms. Meezan Managed by the only Shariah compliant Asset Management
Company in Pakistan with a solid track record of over 25 years, and under the supervision of
the Shariah Supervisory Board of Meezan Bank headed by Justice retired Mufti Muhammad
Taqi Usmani.

Figure 6 Annual returns of KMIF compared with benchmarks

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
-10.0%

-20.0%

-30.0%

KMIF Return KMI - 30 Index Return

The KMIF has an overall average performance as its’ annual returns are slightly lower than the
expected benchmark. In the fiscal year 2020, the annual return was 0.88% compared to the
benchmark of 1.62%. Overall, there has been a significant downturn in its performance which is
probably why the fund did not give out dividends for the last three years (refer to Figure 7).
 P a g e | 19

Figure 7 Annual dividends of the funds

KMIF Dividend
18.00

16.00

14.00

12.00

10.00

8.00

6.00

4.00

2.00

0.00
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

The net assets of KSE Meezan Index Fund (KMIF) increased by 37%. as at December 31, 2020
they were Rs. 2,537 million compared to Rs. 1,857 million at June 30, 2020. The net asset value
(NAV) per unit at December 31, 2020 was Rs. 68.1338 as compared to Rs. 53.4129 per unit on
June 30, 2020 translating into a return of 27.56% during the period compared to the benchmark
return of KSE Meezan Index (KMI 30) of 29.41%.
Figure 8 KMIF Annual Net Asset Values

NAV per Unit

96.52

68.72 68.13
64.38
60.3

FY16 FY17 FY18 FY19 FY20

The figure above shows the trend in the annual Net Asset Values of KMIF over the last four
years. It is visible how the value of the fund declined since 2016.
 P a g e | 20

4. Balanced Funds

Balanced Schemes provide the center path by combining each growth and financial gain. As
such, these schemes invest each in equities and in fixed income securities. These area unit
applicable for investors. Al-Meezan Investment don't want to require extreme risk and at
constant time also are seeking capital appreciation.

Meezan Balanced Fund

Meezan Balanced Fund could be an Islamic law compliant undeveloped conclusion balanced
theme. It is a scheme that invests in fixed income securities and equity. The earnings square
measure generated by potential capital appreciation and regular financial gain. Meezan
Balanced Fund (a closed finish balanced theme) was born-again into an open-end balanced
fund with result from State Day, 2013.

Objective
The Fund seeks to come up with long run capital obligation furthermore as current financial
gain by making a balanced portfolio that's invested in both high quality shariah compliant
equity and financial gain Instruments.

MBF is positioned as a comparatively lesser risky different to a pure equity fund, whereas
holding the potential top side from equities portion at the side of stable financial gain from
jurisprudence compliant mounted financial gain instruments. Then they creating it less risky
and fewer volatile than pure equity funds which is more helps in MBF deliver fixed returns
across many market cycles.

Balanced investment strategy is in both in equities and debt markets while it is escaping the
unpredictability of equity investments and the Portfolio change through just one fund without
having to invest in many funds so they balance strategy to meet their financial goals within
short till medium term with reasonable risk.

Financial Performance

Meezan Balanced Fund is Pakistan’s first Shariah Compliant undeveloped conclusion balanced
scheme. Its’ Cumulative return since start (December 20, 2004 till December 31, 2020) is
544.66% in PKR terms. Their Average Annualized return since start (December 20, 2004 till
December 31, 2020) is 12.32% in PKR terms. They have Strong long-term performance track
record both in absolute terms and relative to its benchmark and they managed by the only
Shariah compliant Asset Management Company in Pakistan with a solid track record of over 25
years, and under the supervision of the Shariah Supervisory Board of Meezan Bank controlled
by Justice retired Mufti Muhammad Taqi Usmani.
 P a g e | 21

Figure 9 Annual returns of MBF

40.0%

30.0%

20.0%

10.0%

0.0%
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

-10.0%

-20.0%

MBF Return Benchmark Returns

The Balanced fund had negative returns in the fiscal years 2018 and 2019 (refer to Figure 9).
The fund did not pay dividends to investors during these years of decline. But the fund
recovered in 2020 with 8.14% of returns which was higher than its expected benchmark value
of 5.80% as per December 31, 2020. This is why the fund paid out dividends in 2020 again, as
shown in Figure 10.

MBF Dividend
2.50

2.00

1.50

1.00

0.50

0.00
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Figure 10 Annual dividends of MBF

The net assets of Meezan Balanced Fund (MBF) as at December 31, 2020 were Rs. 4,418 million
compared to Rs. 3,916 million at June 30, 2020, an increase of 13%. The net asset value (NAV)
 P a g e | 22

per unit as at December 31, 2020 was Rs. 15.5932 as compared to Rs. 13.7136 per unit on June
30, 2020 translating into a return of 13.71% during the period compared to the benchmark
return of 14.38%. Figure 11 shows the increase in Net Asset Value of Meezan Balanced Funds in
the last three years, from 14.40 per unit in 2018 to 15.59 per unit in 2020.

NAV per Unit

18.25

15.21 15.41 15.59

14.4

FY16 FY17 FY18 FY19 FY20

Figure 11 Annual Net Asset Value per unit of MBF

5. Assets Allocation Fund

Asset Allocation Funds invests in various asset classes based on the outlook of such asset
classes and may provide diversification benefit through a single investment.

Meezan Asset Allocation Fund

Asset Allocation Fund (MAAF) may be a shariah law Compliant plus Allocation theme. It is
designed to assist investors build wealth by long-run capital appreciation, diversification across
plus categories and also the flexibility to alter investment portfolio exposure as per the outlook.

Objective
The objective of MAAF is to earn a probably high come back through asset allocation between
shariah law Compliant Equity, fixed income and money market Instruments supported by the
fund manager’s read on political economy outlook of such asset categories.
Meezan Asset Allocation Fund is Shariah Compliant open-end Asset Allocation scheme and their
Strategy which is reflective of investor’s risk desire as market conditions change which is up to
90% equity participation is possible. Based on fund manager’s view on the market while also
taking experience to fixed income instruments, they also provide investors an opportunity for
long-term capital appreciation through broad mix of asset classes.
 P a g e | 23

It offers Allocation of funds in both risky and non-risky assets, with an assurance that the Fund
manager shall actively allocate assets between the two classes as per outlook and capital
appreciation over the long term which is diversification by combining various asset classes in
their overall investment portfolio

Financial Performance
Effective portfolio diversification through a single investment scheme may provide long-term
investors with lower overall portfolio volatility and better risk-adjusted returns. And having
ability to maintain the asset distribution by continuous rebalancing. They have no lock-in period
and back end load which actively managed by experienced Fund Manager and Tax Benefits as
per current tax laws. Meezan investments Managed by the only Shariah compliant Asset
Management Company in Pakistan with a solid track record of over 25 years, and under the
supervision of the Shariah Controlling Board of Meezan Bank headed by Justice Retired Mufti
Muhammad Taqi Usmani.
Figure 12 Annual dividends of MAAF

MAAF Dividend
10

0
FY16 FY17 FY18 FY19 FY20

The Meezan Asset Allocation Fund had the highest payout in the year 2017. Since then, the
fund had negative returns in 2018 and 2019, as shown in Figure 13, which is why the fund did
not pay any dividends during these two years. However, in 2020 the fund’s returns increased to
6.61% from -20.4% in 2019. This is also the reason why the fund paid dividends again in the
year 2020 as shown in Figure 12.
 P a g e | 24

Figure 13 Annual returns of MAAF

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%
FY16 FY17 FY18 FY19 FY20
-5.0%

-10.0%

-15.0%

-20.0%

-25.0%

MAAF Return Benchmark Returns

The net assets of Meezan Asset Allocation Fund (MAAF) as of December 31, 2020 were Rs.
1,574 million compared to Rs. 1,339 million at June 30, 2020. This proves a significant increase
of 18%. The net asset value (NAV) per unit as at December 31, 2020 was Rs. 45.4385 as
compared to Rs. 36.5940 per unit on June 30, 2020 translating into a return of 24.17% during
the period compared to the benchmark return of 24.88%. Figure 14 shows the annual increase
in the NAV of the Asset Allocation Fund over the last two years.
Figure 14 Annual Net Asset Values of MAAF

NAV per Unit

61.41

45.44
43.82 42.48
39.41

FY16 FY17 FY18 FY19 FY20

 P a g e | 25

6. Fund of funds:

Fund of Funds are schemes that invest in other mutual fund schemes. The portfolio of these
schemes comprises only of units of other mutual fund schemes. These funds offer
diversification benefits and hence reduce volatility of funds.

Meezan Financial Planning Fund – Savings plan

The Fund seeks to come up with returns on Investment as per various allocation plans by
finance in sharia Compliant fastened financial gain and Equity Mutual Funds in line with the
danger tolerance of the capitalist. MFPF is meant to produce investors with a complete answer,
from selection of varied allocation plans, disciplined finance method to automatic portfolio
rebalancing (as per organic documents of the fund).

Meezan monetary designing Fund is Pakistan’s initial sharia Compliant fund of fund theme in
which they access to prime playing funds of Al Meezan, all having completely different
investment ways, through one investment vehicle. Meezan monetary designing Fund (MFPF).
Numbers of lot of worries concerning that fund to shop for and sell, once to shop for and sell,
MFPF will all this for you mechanically, and in a very tax economical manner and Periodic
rebalancing to take care of pre-defined allocation ensures targeted investment strategy
eliminating social involvement. Managed by the sole sharia compliant quality Management.
A targeted investment plan for investment in order to achieve desired financial goals in life.
They investment in a disciplined manner through SIP, especially in risky funds and also having
the comfort of not being punished should they miss any monthly payment and Different
allocation strategies that suit changing risk profiles.

Financial Performance

NAV
100.00
90.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
FY16 FY17 FY18 FY19 FY20

NAV per Unit (Aggressive) NAV per Unit (Moderate) NAV per Unit (Conservative)

Figure 15 The Annual NAV per unit of Aggressive, Moderate and Conservative Plan
 P a g e | 26

The Meezan Financial Planning Fund is part of the Savings Plan and is divided into three parts
according to the risk appetite of the investors. The Aggressive Allocation plan allocates 65% of
the investment in equities (high risk) and 25% in fixed income securities. The Moderate
Allocation plan has 45% Equity and 45% fixed income securities. While the Conservative
Allocation Plan plays it safe with only 25% equity investment and 65% fixed income securities.
The performance overview of each of the three allocation plans is given below.

Aggressive Allocation Plan

The net assets of the plan were Rs. 323 million as at December 31, 2020 compared to Rs. 283
million at June 30, 2020. The plan provided a return of 20% during the period compared to the
benchmark return of 23%. Figure 16 shows how the returns increased from -17.2% in 2019 to
6.86% in 2020.
25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
-5.00%

-10.00%

-15.00%

-20.00%

MFPF - Aggressive Allocation Plan Returns Aggressive Benchmark Returns

Figure 16 Annual returns of MFPF Aggressive Allocation Plan

Moderate Allocation Plan

Figure 17 shows the returns for the Moderate Allocation Plan over the last seven years. Th
returns increased from -9.2% in 2019 to 10.11% in 2020. The net assets of the plan were Rs. 137
million as at December 31, 2020 compared to Rs. 119 million at June 30, 2020. The plan
provided a return of 14.81% during the period compared to the benchmark return of 16.21%.
 P a g e | 27

20.00%

15.00%

10.00%

5.00%

0.00%
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

-5.00%

-10.00%

-15.00%

MFPF - Moderate Allocation Plan Returns Moderate Benchmark Returns

Figure 17 Annual returns of MFPF Moderate Allocation Plan

Conservative Allocation Plan

The Net Asset Value of the conservative plan showed a slight increase (refer to Figure 16). The
performance of this plan was relatively good as the returns increased from -1.0% in 2019 to
10.96% in 2020, which is even higher than the expected benchmark 7.60% in 2020. The net
assets of the plan as at December 31, 2020 were Rs. 159 million compared to Rs. 144 million at
June 30, 2020. The plan provided a return of 8.89% during the period compared to the
benchmark return of 8.84%
14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
-2.00%

-4.00%

-6.00%

MFPF - Conservative Allocation Plan Returns Conservative Benchmark Returns

Figure 18 Annual returns of MFPF Conservative Allocation Plan

 P a g e | 28

Meezan Asset Allocation Plan - I

The Meezan Asset Allocation Plan (MAAP-1) is part of the Al Meezan savings plan.
Fund Performance Highlights FY16 FY17 FY18 FY19 FY20

MAAP-1 11.70% 18.80% -6.10% -18.50% 5.62%

The net assets of the plan as at December 31, 2020 were Rs. 207 million compared to Rs. 318
million at June 30, 2020. The plan provided a return of 20.13% during the period compared to
the benchmark return of 22.70%.

Meezan Strategic Allocation Fund Class I

The Meezan Strategic Allocation Fund is designed for investors with a medium to high risk
tolerance. It actively allocates its portfolio between equity schemes and fixed income/money
market schemes based on the macroeconomic view of the fund manager on such asset classes.
The fund has six different categories. The Net Asset Values of these plans are shown in the table
below.

  FY16 FY17 FY18 FY19 FY20

NAV per Unit (MSAP I) 55.42 43.56 40.23 39.36 44.08
NAV per Unit (MSAP II) 50.32 42.59 39.48 41.76 43.84
NAV per Unit (MSAP III) 41.64 38.54 40.62 42.66
NAV per Unit (MSAP IV) 42.28 39.18 41.31 43.48
NAV per Unit (MSAP V) 48.43 44.74 47.11 50.77
NAV per Unit (MCPP III) 50.3 50.34 55.04 52.98

Meezan Strategic Allocation Plan – Class II

These plans are a part of the Capital Preservation Plans of Al Meezan. This plan has a medium
risk of principal erosion. It focuses on earning potentially high return on investments through
the allocated Shariah Compliant Fixed income/money market collective investment schemes
and equity based collective investment schemes. It has several different categories which are
listed below.

  FY16 FY17 FY18 FY19 FY20

NAV per Unit (MCPP IV) 50.19 54.76 53.22
NAV per Unit (MCPP V) 50.27 54.94 52.42
NAV per Unit (MCPP VI) 50.42 54.67 52.22
NAV per Unit (MCPP VII) 50.37 55.19 51.25
NAV per Unit (MCPP VIII) 50.06 53.94 51.1
 P a g e | 29

Meezan Strategic Allocation Plan – Class III

This class offers a single separate Capital preservation plan, MCPP – IX. The plan aims to earn a
potentially high return through dynamic asset allocation between Shariah Compliant Equities
and Shariah Compliant sovereign income or money market based collective investment
schemes (CIS), while providing capital preservation upon initial maturity of the allocation plan.
The investment objective of the plan shall be achieved through the Constant Proportion
Portfolio Insurance (CPPI) methodology.
The Plan was launched two years ago, in 2019. The NAV of the plan was negative in the first
year, 53.61 in 2019 with negative annual return of -3.6%. But the annual returns significantly
improved in 2020 at 5.45% which is higher than its expected benchmark of -1.17%. The NAV in
2020 increased to 54.78.
The net assets of the plan as at December 31, 2020 were Rs. 97 million compared to Rs. 89
million at June 30, 2020. The plan provided a return of 12.72% during the period compared to
the benchmark return which declined by 12.95%.

7. Commodity funds
Commodity Funds invest in commodities, for example gold, silver, crude oil, natural gas, etc and
may deliver outstanding variation and rise safety to the average investor’s portfolio.

Meezan Gold Fund

Meezan Gold Fund (MGF) is a Shariah Compliant Commodity Scheme and the idea of
“Meezan Gold Fund” is to invest in gold apparatuses in the most efficient manner, as allowed
by the SECP and the Shariah Advisor.
The objective of MGF is to provide maximum exposure to prices of Gold in a Shariah
Compliant (Islamic) manner, by investing significant portion of the Fund’s net assets in
deliverable gold-based contracts available on Pakistan Mercantile Exchange (PMEX).

Meezan Gold Fund is Pakistan’s first Shariah Compliant open-end commodity scheme which is
Affordable investment in the form of divisible units with low initial minimum investment
amount requirement. Security without hassle of buying, storing and transporting physical gold.
An effective hedge against rising gold prices for long term purchases of gold jewelry and High
purity of gold purchased which is convenient means of diversification for investment portfolios.
 P a g e | 30

Financial Performance
MGF Return Benchmark Returns
35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
FY1 6 FY1 7 FY1 8 FY1 9 FY2 0

-5.00%

-10.00%

Figure 19 Annual returns on Meezan Gold Fund

Figure 19 shows that the Meezan Gold Fund was performing well in 2018 and 2019. However,
the returns declined in 2020 by a significant proportion. MGF had returns of 30.4% in 2019
which reduced to 23.76% of annual return in 2020. But despite this decrease, Figure 20 shows
that the NAV was higher as compared to last year.

NAV per Unit

88.61

72.19
64.15

52.25
49.02

FY16 FY17 FY18 FY19 FY20

Figure 20 Annual Net Asset Value per unit of Meezan Gold Fund

The net assets of the fund as at December 31, 2020 were 468 million compared to Rs. 548
million at June 30, 2020, a decline of 15%. The net asset value (NAV) per unit at December 31,
 P a g e | 31

2020 was Rs. 88.6055 as compared to Rs. 84.1829 per unit on June 30, 2020 translating into a
return of 5.25% during the period compared to the benchmark return of 6.61%. Fresh issuance
of units of Meezan Gold Fund (MGF) were suspended from May 19, 2020 and remained
suspended till December 31, 2020, as Pakistan Mercantile Exchange (PMEX) and the market
maker it employed could not assure supply of physical gold through its physical gold contracts
listed and traded at PMEX.

8. Fixed Income Funds

Al Meezan offers four categories of Monthly income funds which include Meezan Islamic
Income Fund, Meezan Sovereign Fund, Cash Fund and Rozana Amdani Fund. The funds have
very low to Medium risk of principal erosion.

Meezan Islamic Income Fund

Meezan Islamic Income Fund (MIIF) is Pakistan’s first Shariah obedient income fund scheme.
The purpose of Meezan Islamic Income Fund is to provide investors with a safe and stable
stream of Halal income on their investments and to generate higher long-term risk adjusted
returns. It also attempts to avail opportunities that realize capital appreciation.

Financial Performance
The fund seems to have progressed in terms of returns (as shown in Figure 21). The returns in
2020 were at 11.57% which is significantly higher than the return of 7.92% in 2019. The fund
performance surpassed the expected benchmark of 6.33% in 2020.
Figure 21 Annual returns of MIIF

16.00%

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

MIIF Return Benchmark Returns

Because the returns increased over the last two years, MIIF gave out a dividend of PKR 5.88 in
2020 (refer to Figure 22).
 P a g e | 32

Figure 22 Annual Dividends of MIIF

MIIF Dividend
8.00

7.00

6.00

5.00

4.00

3.00

2.00

1.00

0.00
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Over all, the net assets of Meezan Islamic Income Fund (MIIF) as at December 31, 2020 were Rs.
35,141 million compared to Rs. 27,776 million at June 30, 2020, which represents an increase of
27%. The net asset value (NAV) per unit as at December 31, 2020 was Rs. 53.2871 compared to
Rs. 51.4656 per unit on June 30, 2020 translating into an annualized return of 7.02% compared to
the benchmark annualized return of 3.93%. At period end, the fund was 12% invested in Islamic
Corporate Sukuks, 4% in Commercial Papers, 26% in GoP Ijarah / Govt. Guaranteed Sukuks, 5% in
Certificate of Musharaka, 7% placed in Term Deposit Receipt and 41% of the net assets were
placed with Islamic Banks or windows of Islamic banks.

Meezan Sovereign Fund

The Meezan Sovereign Fund (MSF) seeks to serve investors who need a guaranteed or fixed
return with low to none risk of principal erosion. This fund aims to preserve the maximum value
of capital and at the same time, earn a reasonable return.

Financial Performance
According to the trend shown in Figure 23, the MSF recovered the slump in its returns over the
period of last two years. In 2020, the return (11.17%) was not only higher than the return in
2019 (7.02%) but also higher than its expected return (7.93%) in 2020.
12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

MSF Return Benchmark Returns

Figure 23 Annual returns of MIIF

 P a g e | 33

The Figure 24 shows the dividend payments of MSF over the last seven years. The annual
dividend payments of MSF improved during the last two years to reach PKR 5.69 per share in
2020.

MSF Dividend
6.00

5.00 Figure 24 Annual dividends

of MSF
4.00

3.00
Overall, the net assets
of Meezan Sovereign
2.00
Fund (MSF) as at
1.00 December 31, 2020
0.00
were Rs. 8,841 million
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
compared to Rs. 9,736
million at June 30,
2020, a decline of 9%. The net asset value (NAV) per unit at December 31, 2020 was Rs. 53.8092
as compared to Rs. 51.5476 per unit on June 30, 2020 translating into an annualized return of
8.7% compared to the benchmark annualized return of 4.23%. At period end, the fund was 82%
invested in GoP Ijarah/Govt. Guaranteed Sukuks, and 19% of the net assets were placed with
Islamic Banks or windows of Islamic banks.

Meezan Cash Fund

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

MCF Return Benchmark Returns

Figure 25 Annual returns of MCF

The Meezan Cash Fund (MCF) is part of the Monthly income fixed income securities. It has a
low risk of principal erosion. This fund focuses on preserving the capital investment and earning
reasonable return by investing in liquid shariah compliant money market and debt securities.
The Fund had a significantly good performance over the past four years. In 2020, the fund gave
 P a g e | 34

a return of 10.95% which was higher than its benchmark of 5.37% (refer to Figure 25). Figure 26
shows the dividends paid by MCF over the past seven years.

MCF Dividend
6.00

5.00

4.00

3.00

2.00

1.00

0.00
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Figure 26 Annual dividends of MCF

The net assets of Meezan Cash Fund (MCF) declined by 2%, at December 31, 2020 they stood at
Rs. 13,800 million compared to Rs. 14,026 million at June 30, 2020. The net asset value (NAV)
per unit at December 31, 2020 was Rs. 51.9523 as compared to Rs. 50.4952 on June 30, 2020
translating into an annualized return of 5.72% as compared to the benchmark annualized
return of 3.71%. At period end 10% of the fund was placed in Term Deposit Receipts, 12% of
the fund was placed in Commercial Papers, 8% in Islamic Corporate Sukuks and 68% of the net
assets were placed with Islamic Banks or windows of Islamic banks.

Rozana Amdani Fund

The Rozana Amdani Fund (MRAF) was launched at the end of the December 2018. The fund is a
part of the Monthly income funds. It focuses on meeting the liquidity needs of the investors by
providing them with a daily payout. This fund mainly invests in shariah compliant money
market instruments. It provides better returns than shariah compliant savings fund.
The fund has been giving positive returns higher than its expected benchmark since its
initiation. In 2019 the fund gave a 9.97% return which increased to a return of 11.76% in 2020.
Compared to the benchmark of 5.37% in 2020, the fund has been performing quite well.
On the other hand, the net assets of Meezan Rozana Amdani Fund (MRAF) at December 31,
2020 were Rs. 46,983 million compared to Rs. 53,351 million at June 30, 2020, a decline of 12%.
The net asset value (NAV) per unit at December 31, 2020 was Rs. 50.0000. During the period
fund provides an annualized return of 6.34% as compared to the benchmark annualized return
of 3.87%. At period end 19% of the fund was placed in Term Deposit Receipts, 6% in
Commercial Papers, 3% in Islamic Corporate Sukuks and 60% of the net assets were placed with
Islamic Banks or windows of Islamic banks.
 P a g e | 35

9. Exchange Traded

PAKISTAN STOCK EXCHANGE

The Meezan Pakistan Stock Exchange (MP-ETF) was launched in October 2020. The Karachi
Stock Exchange (KSE) and Al Meezan Investment Management Limited (Al Meezan investments)
contracted to a Memorandum of Understanding (MoU) to launch the Pakistan's First Co-
branded Islamic Index KSE Meezan Index (KMI) to its family of guides.

The KMI comprises of 30 companies which will qualify the KMI Shariah Screening Criteria and
are weighted by float adjusted market capitalization subject to a 12% cap on weights of
individual securities. They will measure the performance of these companies traded on the
Karachi Stock Exchange with periodic balancing and adjustments to confirm utmost Shariah
obedience and Benchmark stability. Therefore, the KSE Meezan Index will provide investors a
proper benchmark for comparing the returns on their Shariah compliant equity investments.

Financial Performance

The net assets of Meezan Pakistan Exchange Traded Fund (MPETF) clocked in at Rs. 31 million
as at December 31, 2020. The net asset value (NAV) per unit as at December 31, 2020 was Rs.
10.7405 translating into a return of 7.41% during the period.

10. Pension Fund Scheme

Meezan Tahaffuz Pension Fund

Meezan Tahaffuz funds was introduced in the year 2007, it was the 1st sharia compliant pension
fund. SECP rules were applied on the voluntary pension system of Al meezan, therefore, the
entire amount which investor has invested in the AL Meezan Tahaffuz funds would be secured
and safe, and there are trustee funds as well.
The aim is to provide a stable income to retired personnel so they may not need any external
support from others. This fund works to earn in the most halal way possible for the customer. It
offers higher yields on investments specially because of its additional tax benefit. Investors may
do regular or lump sum payments. The amount is invested in shariah compliant schemes to give
maximum return during the working life of the customer so he may be at ease after retirement.
MTPF comprises of four sub-funds, namely Equity sub-fund, Debt sub-fund, Money Market sub-
fund and Gold sub-fund. For the period ended December 31, 2020, the equity sub-fund
provided a return of 26.44% and gold sub-fund provided a return of 6.12%, while the debt and
money market sub-funds provided annualized returns of 8.84% and 4.81% respectively. Figure
27 gives a performance review of the annual Net Asset Value per unit of each sub fund.
 P a g e | 36

NAV per Unit (equity) NAV per Unit (debt) NAV per Unit (MMkt) NAV per Unit (Gold)
700

600

500

400

300

200

100

0
FY1 6 F Y1 7 F Y1 8 FY1 9 FY2 0

Figure 27 Annual Net Asset Values of MTPF

 EQUITY SUB FUND

The net assets of this sub fund valued at Rs. 5,145 million at December 31, 2020
compared to Rs. 4,131 million at June 30, 2020, which records an increase of 25%. The
net asset value (NAV) per unit of the plan was Rs. 505.9604 at the end of December 31,
2020 as compare to Rs. 400.1482 as at June 30, 2020.
 DEBT SUB FUND
Value of the Net Assets of the debt sub fund increased by 14% from Rs. 3,632 million at
December 31, 2020 compared to Rs. 3,178 million at June 30, 2020. Compare to Rs.
261.9128 as at June 30, 2020 the Net Asset Value of the fund at 31 st December 2020 was
273.5862.
 MONEY MARKET SUB FUND
The net assets of this sub fund stood at Rs. 3,168 million at December 31, 2020
compared to Rs. 3,092 million at June 30, 2020, an increase of 2.45%. The net asset
value (NAV) per unit of the plan was Rs. 263.5905 at the end of December 31, 2020 as
compare to Rs. 257.3454 as at June 30, 2020.

 GOLD SUB FUND

The net assets of this sub fund stood at Rs. 137 million at December 31, 2020 compared
to Rs. 119 million at June 30, 2020, an increase of 15%. The net asset value (NAV) per
unit of the plan was Rs. 168.0820 at the end of December 31, 2020 as compare to Rs.
158.3880 as at June 30, 2020.
 P a g e | 37

Comparing the sub funds of the Pension fund, the Equity sub fund seems to have a higher rate
of return and a higher Net Asset Value per unit.

INVESTING IN AL MEEZAN INVESTMENT MANAGEMENT LTD.

Let assume that an individual had PKR 20,000,000 to invest in Al Meezan. The individual would
choose the plan that is most suitable for his purpose, his risk appetite and his required return
over a period of time.
The Table 1 shows that if an individual invested PKR 20,000,000 on 1 st of January 2021, then
based on the NAV or the return on the fund, by how much will the value of his investment will
increase/decrease in two months’ time. This valued differs with the choice of scheme.
For example, if the individual chooses to invest in the Meezan Islamic Fund (MIF), his
investment will be worth PKR 20,861,073.8. This can be calculated by the simple growth
formula, where 20,000,000 x (1 + 2.13%)2 = 20,861,073.8. On the basis of these calculations, the
best fund to invest in would be Al Meezan Mutual Fund (AMMF) as it yields the highest value
after two months, PKR 20,922,397.
 P a g e | 38

TABLE 1 Net Assets Value (per unit) Cumulative return Value of investment
Jan 21 Feb 21 1 Month 1/01/2021 1/03/2021
MIF 61.96 63.28 2.13% 20,000,000 20861074
AMMF 17.37 17.76 2.28% 20,000,000 20922396.8
MIIF 53.55 53.81 0.49% 20,000,000 20196480
MCF 52.18 52.4 0.42% 20,000,000 20168353
MSF 54.04 54.29 0.47% 20,000,000 20188442
MRAF 50.00 50 0.47% 20,000,000 20188442

MTPE-EQUITY 531.83 542.89 2.08% 20,000,000 20840653

MTPE- DEBT 274.69 275.91 0.44% 20,000,000 20176387
MTPF- MMKT 264.70 265.83 0.43% 20,000,000 20172370
MTPF- GOLD 164.78 157.27 -4.56% 20,000,000 18217587

KMIF 70.92 72.76 2.60% 20,000,000 21053520

MBF 15.98 16.18 1.25% 20,000,000 20503125
Aggressive 76.83 78.14 1.71% 20,000,000 20689848
Moderate 69.70 70.6 1.29% 20,000,000 20519328
Conservative 66.98 67.57 0.88% 20,000,000 20353549
MAAP-I 62.45 63.55 1.75% 20,000,000 20706125
MGF 86.89 82.47 -5.08% 20,000,000 18019613
MAAF 47.56 48.23 1.40% 20,000,000 20563920
MEF 34.61 35.02 1.16% 20,000,000 20466691
MDEF 45.94 46.83 1.93% 20,000,000 20779450
MSAP-I 45.76 46.57 1.77% 20,000,000 20714266
MSAP-II 45.49 46.33 1.86% 20,000,000 20750919
MSAP-III 44.30 45.06 1.74% 20,000,000 20702055
MSAP-IV 45.17 45.97 1.77% 20,000,000 20714266
MSAP-V 52.73 53.63 1.71% 20,000,000 20689848
MCPP-III 53.20 53.43 0.42% 20,000,000 20168353
MCPP-IV 54.23 54.75 0.96% 20,000,000 20385843
MCPP-V 52.91 53.24 0.63% 20,000,000 20252794
MCPP-VI 52.43 52.66 0.44% 20,000,000 20176387
MCPP-VII 51.46 51.68 0.44% 20,000,000 20176387
MCPP-VIII 51.32 51.54 0.43% 20,000,000 20172370
MCPP-IX 56.12 56.75 1.11% 20,000,000 20446464