The board of directors of Al-Meezan Investment Management (AMIM) approved the financial results for the year ended 30th June 2007 and announced stock dividend of Rs 15.60 per unit (ie, 26.61 percent of opening net assets value (NAV) of Rs 58.62 for FY07) for Meezan Islamic Fund (MIF) and Rs 2.20 per unit (ie, 4.40 percent of opening NAV of Rs 50 for FY07).
For Meezan Islamic Income Fund (MIIF), the two largest Shariah compliant mutual funds in Pakistan in their respective asset classes. Meezan Islamic Fund (MIF) is Pakistan's largest open-end equity fund in the private sector and has been rated 5-Star (the highest rating for mutual funds) by both Pacra and JCR-VIS for its superior performance relative to its peers.
During the financial year ended June 30, 2007, MIF earned net income of Rs 880.2 million after income purification. Major sources of revenue included realised capital gains of Rs 340.3 million and dividend income of Rs 198.8 million.
Out of total earnings, Rs 760.3 million is being distributed by way of stock dividend. The net assets of MIF as on June 30, 2007 were Rs 3,679 million as compared to Rs 3,200 million as on June 30, 2006, reflecting an increase of l5 percent.
The net asset value of MIF as on June 30, 2007 was Rs 75.49 per unit as compared to ex-dividend NAV of Rs 58.62 as on June 30, 2006, reflecting appreciation of 29 percent for the year. In comparison, Dow Jones Pakistan Islamic Index depicted a return of 17 percent during the same period. Hence MIF outperformed the index by 12 percent or 1,200 basis points, which is reflective of the superior performance of AMIM active portfolio management strategy.
An investor who invested in MIF at the time of its launch on August 8, 2003 has earned Rs 189,230 on his investment of Rs 100,000, depicting compounded average return of 31.3 percent per annum on his investment.
Meezan Islamic Income Fund (MIIF) is the first and the only Shariah compliant open-end income fund in Pakistan. It was offered for public subscription in January 2007 with the objective of providing a stable stream of income without compromising the safety of the principal invested.
During the five and a half months of its operations, MIIF earned a net income of Rs 134.8 million, which translates into earnings per unit of Rs 2.23. This reflects an appreciation of 4.46 percent during this period, providing annualised tax-free return of 9.93 percent to the unit holders. At the close of the financial year total net assets of MIIF stood at Rs 3,162 million.
An investor holding 100 units of MIF as of June 30, 2007 will get 26.05 additional units at the ex-dividend NAV of Rs 59.89. While an investor holding 100 units of MIIF as of June 30, 2007, will get 4.4 additional units at the ex-dividend NAV of Rs 50.03. The proportionate stock dividends will apply to actual holding of the unit holders as on June 30, 2007.
Al Meezan Investments is the only asset management company in Pakistan that exclusively offers Shariah compliant investment solutions. In line with its philosophy of developing Shariah compliant products to meet the needs of its investors. Al Meezan Investments has launched Pakistan's first Shariah compliant pension fund scheme - Meezan Tahaffuz Pension Fund (MTPF). MTPF is a saving mechanism that provides an opportunity to individuals to save from their current income in order to retain financial security and comfort after retirement. Investor in MTPF get dual tax benefit tax rebate on contribution amount and tax exemption on return on contributions. Thus, investors will have more money to reinvest for getting much greater capital appreciation over a longer period of time.
The net assets under management of AMIM have crossed Rs 10 billion mark, which is reflective of the confidence and trust of both individual and institutional investors in its funds.-PR