December 19, 2019 (MLN): To provide long-term capital growth through investing in Shariah Compliant listed equities, most of the Islamic equity funds delivered impressive returns in November 2019. The performance was in line with the improvement of the KSE Meezan Index (KMI-30) during the month.
To recall, in the previous month, Shariah Compliant Equity Mutual Funds failed to excite investors with their returns despite 9.172% growth in KMI-30 Index.
In the month of November 2019, KMI-30 Index which is the benchmark for Shariah Complaint Equity Funds gained around 6,871 points or up by 12% as compared to last month. This was the third consecutive month of growth.
According to the data compiled by Mettis Global Private Limited, out of 17 Islamic Equity Funds, 11 funds managed to cross the yardstick of 12%.
Of these funds, AKD Islamic Stock Fund (AKDISF) staged the highest return of 19.02%, as its Net Asset Value (NAV) went up from Rs 32.87 to Rs 39.12 per share. This highly risky fund mostly invested in Cement, Commercial Banks and Food & Personal Care Products as it held most of its investment in JVDC (18.4%), BIPL (13.69%) and ASC (13.64%) during the month under review.
Following AKDISF in the list of top-performing Islamic equity funds is Meezan Energy Fund (MEEZANEF) with a 17.09% increase in returns as its NAV rose from Rs 32.35 to Rs 37.88 per share. The main objective of this fund is to generate long term capital appreciation through investing in the energy sector, as defined in the constitutive document. During the month, the fund held most its investment MARI (16%), POL (12%), OGDC (11%), PSO (11%), HUBC and PPL (10%).
Positioned next with 15.49% returns is NIT Islamic Equity Fund (NITEF) whose NAV lifted from Rs.7.23 to Rs 8.35 per share. This moderate to high-risk profile fund played mostly in Oil & Gas Exploration Companies, Fertilizer and Cement sector in November 2019.
The other funds that succeeded in beating benchmark include Al Ameen Shariah Stock Fund (14.16%), Atlas Islamic Stock Fund (14.09%), NBP Islamic Stock Fund (13.90%), AWT Islamic Stock Fund (13.16%), Alhamra Islamic Stock Fund (13.09%), Al Meezan Mutual Fund (12.83%), Meezan Islamic Fund (12.65%) and HBL Islamic Stock Fund (12.48%).
On the other hand, the funds that failed to meet the benchmark rate include HBL Islamic Equity Fund, Alfalah GHP Islamic Stock Fund, JS Islamic Fund, NBP Islamic Energy Fund, ABL Islamic Stock Fund and First Habib Islamic Stock Fund.
Lastly, no Islamic Equity Fund gave out a dividend per share during the month under review.
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