National Fullerton Asset Management Limited (NAFA) is a joint venture between National Bank of Pakistan, NIB Bank Limited and Fullerton Fund Management Company (FFMC), Singapore. NIB & FFMC are both majority owned by Temasek Holdings of Singapore – a US$ 75 billion company, rated AAA by Moody’s and Standard and Poor’s.
Meezan Bank, being the largest Islamic Bank, stands today at a noteworthy point along the evolution of Islamic Banking in Pakistan with the branch network of 64 online branches nationwide. The Banks main shareholders are leading local and international financial institutions, including "Pak Kuwait Investment Company", the only AAA rated financial entity in the country, the ‘Islamic Development Bank of Jeddah’, and the renown ‘Shamil Bank of Bahrain’. The established position, reputation, strength and stability, of these institutions add significant value to the Bank through Board representation and applied synergies.
NAFA & Meezan Bank Limited (MBL) have entered into an agreement by which MBL will provide Advisory Services related to Product Development, research & training, conceptualization, structuring, documentation and financial structuring to NAFA for the development & structuring of Shariah Compliant Mutual Funds to be launched by NAFA in the near future.
NAFA plans to launch two Islamic Mutual Funds shortly, namely NAFA Islamic Multi-Asset Fund (NIMF) and NAFA Islamic Income Fund (NIIF). Both of these funds will follow the Meezan Islamic Index Criteria for investments.
Meezan Bank Limited has a full-fledged Advisory Division headed by Dr. Muhammad Imran Usmani. This division’s areas of expertise include Product Development & research, training & development, publications and advisory services in the field of Islamic Finance.
Mr. Irfan Siddiqui, President & CEO of Meezan Bank Limited, said that Meezan Islamic Index Criteria, developed by Meezan Bank Limited under the guidance & supervision of its Shariah Supervisory Board, which is a benchmark screening criteria of stocks used in the local market, will be used by these upcoming funds. The investment decision-making for these Shariah Compliant funds will, however, be made by NAFA’s fund management team.
This agreement shows the immense growth and potential in the Islamic mutual fund industry and a very good trend of knowledge sharing by the experience players with the new entrants. With this amalgamation of NAFA’s fund management experience with MBL’s Islamic Finance knowledge and expertise, the upcoming Shariah Compliant funds of NAFA will surely provide a very good investment opportunity to investors for earning good halal returns on their investments.