KARACHI MEEZAN

30-INDEX

KARACHI MEEZAN 30-INDEX

 GROUP MEMBERS

• Muhammad Hameed
• M. Abubakar Siddique
• Mirza Ali Raza
• Sheikh Hamid Mukhtar
• Shakeela Saleem
• Muhammad Abubakar

KARACHI MEEZAN 30-INDEX

PRESENTATION OUTLINES
• Introduction

• Objective of Launch

• KMI – 30 Composition

• Eligibility Criteria

• Adjustments in the Islamic

Index against corporate action

KARACHI MEEZAN 30-INDEX

INTRODUCTION

KARACHI MEEZAN 30-INDEX

INTRODUCTION…..
 KSE and Al-Meezan Investment Management
Limited launched its first co-branded Islamic
Index (KMI-30)

 Al Meezan Investments provide its Shariah

expertise, guidelines, skills and stocks
screening towards the activities with regard to
launching and continuation process of the
Index. On the contrary, KSE provides
maintenance and dissemination support for
the index.

KARACHI MEEZAN 30-INDEX

 FREE FLOAT METHODOLOGY….
Free float calculation

Total Outstanding Shares xxx

Less:
Shares held by directors/sponsors xxx
Govt. holdings as promoter/ acquirer/controller xxx
Shares held by associated companies xxx
Shares held with public in physical form xxx
____
xxx
____

KARACHI MEEZAN 30-INDEX

OBJECTIVE OF LAUNCH

KARACHI MEEZAN 30-INDEX

OBJECTIVE OF LAUNCH…

 To provide investors suitable benchmark for

returns on Shariah Compliant equity
investments.

 To help shariah conscious people choose the

profitable stocks which are Shariah
Compliant.

 To provide a relevant benchmark to Islamic

equity funds for comparing their
performance.

KARACHI MEEZAN 30-INDEX

KMI – 30 COMPOSITION

KARACHI MEEZAN 30-INDEX

 KMI 30-INDEX
COMPOSITION...
KMI – 30 Index comprises of 30 Shariah Compliant
Companies.

 Shariah compliance is ensured

through Stock Screening process
conducted by Al-Meezan Investment
Management Limited and counter
checked by Capital Advisory division
of PDSC Department.

KARACHI MEEZAN 30-INDEX

KMI-30, Effective
from 2011

KARACHI MEEZAN 30-INDEX

 Product Development &
Shariah Compliance

S-NO. NAME OF COMPANY S-NO. NAME OF COMPANY

       

1 ATTOCK CEMENT 16 NISHAT MILLS LTD

2 ATTOCK REFINERY 17 OIL & GAS DEVE.
3 D.G.K.CEMENT 18 P.S.O.
4 FAUJI FERT BIN QASIM 19 P.T.C.L.A
5 FAUJI FERTILIZER CO. 20 PACKAGES LIMITEDXD
6 GLAXOSMITHKLINEXDXB 21 PAK OILFIELDS LTD.
7 HUB POWER CO. 22 PAK PETROLEUM
8 ICI PAKISTANSPOT 23 PAK REFINERY
9 INDUS MOTOR CO 24 PAK SUZUKI MOTORXD
10 KOT ADDU POWER CO. 25 SHELL PAKISTAN XD
11 LOTTE PAKPTAXD 26 SUI NORTH GAS
12 LUCKY CEMENT LTD. 27 SUI SOUTH GAS
13 MARI GAS CO. 28 THAL LTD
14 MILLAT TRACTORS 29 TRI-PACK FILMS

15 NATIONAL REFINERY 30 UNILEVER PAKXD

ELIGIBILITY CRITERIA

KARACHI MEEZAN 30-INDEX

 ELIGIBLE FOR KMI 30 INDEX…

Securities are available in central

depository system
Formal listing of two month on KSE
Not defaulter
Company have free _float shares of 5% of
total outstanding
Securities are traded 75% of the total
trading days
KARACHI MEEZAN 30-INDEX
 NOT ELIGIBLE FOR KMI 30 INDEX

Interest related
Gambling or alcohol
Arms Manufacturing
Insurance both life and general
Non Halal food
Defaulter Company
Mutual funds both open-ended and close
ended
KARACHI MEEZAN 30-INDEX
CRITERIA ACCORDING TO
FINANCIAL
RATIOS

KARACHI MEEZAN 30-INDEX

 LEVERAGE COMPLIANCE
Interest Bearing Debt < 40% of Total
Assets

Interest Bearing Debt includes Bonds, TFCs,

Conventional Bank Loans, Finance Lease,
Preference Shares etc.

Total Interest bearing Debt must be less than

40% of the Total assets of the investee
company

KARACHI MEEZAN 30-INDEX

INVESTMENT COMPLIANCE
Non-Shariah Compliant Investments <
33% of Total Assets
 Non-Shariah Compliant Investments include
investments in conventional mutual funds,
conventional money market instruments,
Bonds, T-Bills, all Interest based placements
and interest based loans and advances etc.

 Non-Shariah Compliant investments must

be less than 33% of Total Assets of the
investee company.

KARACHI MEEZAN 30-INDEX

 Income Compliance…
Non-Compliant Income < 5% of
Total Revenue
 Non Compliant Income includes Bank Interest,
Income from gambling, nightclubs, prostitution,
casino, tobacco, alcohol, dividend income from
above mentioned businesses, dividend income
from Shariah non-Compliant Companies etc.

 Capital Gain need not be purified.

 Non-Shariah Compliant income must be less

than 5% of Total Revenue of the investee
company.
KARACHI MEEZAN 30-INDEX
Total Revenue includes Gross Sales +
Other Operating Income.

Dividend Purification is done by

disbursing amount in Charity
calculated as per the Charity rate
determined and approved by PDSC.
 ILLIQUID ASSETS
COMPLIANCE…

Compliance is measured as Illiquid

assets / total assets>20%

KARACHI MEEZAN 30-INDEX

 BASE PERIOD….
The index committee has used 15,000 as the
base value

June - 30- 2008 base the base year

Islamic index = Free float market capitalization

Index divisor
Index divisor = Free float market capitalization
slamic index
 Review period and Re-
compositions

The index will always be re-composed on

semiannual basis
Basis Revision
December 31 May 15

June 30 November 15

KARACHI MEEZAN 30-INDEX

Adjustments in the Islamic
Index against corporate
actions..
Adjustment for cash dividend

Adjustment for Bonus Shares

Adjustment for Right Shares

KARACHI MEEZAN 30-INDEX

KARACHI MEEZAN 30-INDEX