Shariah Compliant Equity Funds: Alfalah GHP Islamic Stock outperforms the rest

August 8, 2019 (MLN): The shariah Compliant Equity funds market in which investments are in accordance with the Islamic principles, suffered largely due to depressing performance of KMI-30 index in the month of July.

During the month, KMI – 30 index lost 3,549 points, marking a decline of 6.56% which led each individual shariah compliant towards the negative territory.

According to the data aligned by Mettis Global Private Limited, among 17 shariah compliant funds, 8 of such funds went a few steps beyond the index’s decline and recorded over 5% decline in their respective Net Asset Values (NAV).

Among those funds whose decline in returns was fewer than the decline in KMI-30 index, Alfalah GHP Islamic Stock Fund (AGHP-ISF) has emerged as the best performer in the month of July, having recorded 5.27% falloff in its Net Asset Value (NAV).

AGHP-ISF which holds high risk profile mostly played in Oil & Gas Exploration Companies, as it held most of its investments in OGDCL (10.3%), PPL (9.87%), ECL (9.64%), HUBCO (7.94%) and EFL (6.39%) as of June 2019.

After Alfalah GHP Islamic Stock Fund, the ABL Islamic Stock Fund realized a 5.44% decline in their NAV, followed by Alhamra Islamic Stock Fund (5.7%).

Both of these funds funds also held the larger portion of their investments with Oil & Gas exploration Companies i.e. 14.4% and 27.3% respectively while the rest went in the Oil & Gas Exploration Companies, Fertilizers, Power Generation & Distribution Companies and others. The funds have over 11% of its shareholdings in OGDC, PPL, ENGRO and HUBCO.

In terms of Payout, only NIT Islamic Equity Fund gave out dividend of Rs 1.02 per share in July.

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