September 17, 2019 (MLN): The Shariah Compliant Equity Funds posted a negative return in line with KSE Meezan Index (KMI-30) fall in the month of August 2019.
During the month, KMI – 30 Index lost 4,343 points, marking a decline of 9% which led each individual shariah compliant towards the negative territory. Among all 17 shariah compliant funds, 8 such funds went a few steps beyond the index’s decline and recorded over 9.14% decline in their respective Net Asset Value (NAV).
Based on data aligned by Mettis Global Private Limited, the funds that suffered a brunt of damage due to poor performance of KMI-30 index include, Meezan Energy Funds (14.66% decline in NAV), NBP Islamic Energy Fund (13.24% decline in NAV) and HBL Islamic Stock Fund (9.8% decline in NAV) respectively.
Among those funds whose decline in returns was fewer than the decline in KMI-30 index, AKD Islamic Stock Fund (AKD-ISF) has emerged as the best performer in the month of August, having recorded 4.71% falloff in its Net Asset Value (NAV).
AKD-ISF which holds high risk profile mostly played in Cement Sector and Commercial Banks, as it held most of its investments in JVDC (20.74%), BIPL (16.23%) and ASC (12.48%) as of August 2019.
AfterAKD-ISF, the AWT Islamic Stock Fund (AWT-ISF) realized a 5.4% decline in their NAV, followed by JS Islamic fund (JS-ISF) (7.54%).
AWT-ISF comprises moderate to high risk profile, held most of its shares in Fertilizer and Textile Composite with the maximum investment in EPCL (13.89%) followed by NML (13.35%) during the month under review.
While, JS-ISF carries high risk profile, played mostly in Oil and GAS Exploration Companies and Commercial Banks. During the month, the fund held over 8% of its shareholdings in MEBL, HUBCO and MARI.
In terms of Payout, only JS Islamic Fund gave out dividend of Rs 20 per share in August.
At last, a corresponding look at the trend followed by KMI – 30 index which tracks the 30 most liquid Shariah compliant companies listed at PSX, provides a clearer picture that justifies the decline in these funds’ performance during the month.
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