Meezan Islamic Fund earns Rs 114.7 million

The Meezan Islamic Fund (MIF) earned a total income of Rs 114.7 million in the period from August to December 2003.
The major contributing factor was the earnings made through capital gains worth Rs 30 million, dividend income of Rs 24 million, and surplus on revelation of held for trading investments amounting Rs 59 million.
The financial results of the Meezan Islamic Fund for the period August 8 to December 31, 2003 approved by the board of the directors of the management company of Al-Meezan Management Ltd.
After accounting for expenses of Rs 10.8 million, the net income for the period stands at Rs 103.9 million, which translates into earnings per unit of Rs 5.87.
Since the Management Company intends to distribute 90 percent of the income of the fund as reduced by capital gains, as dividend, no provision has been made for taxation.
During the period under review, units worth Rs 1,014 million were issued, and units worth Rs 129.5 million were redeemed. The average net assets of the Fund for the period under review were Rs 720 million, whereas net assets as on December 31, 2003 stand at Rs 988.65 million. The Fund was invested up to 85.4 percent of its net assets as on December 31, 2003.
The net asset value per share of MIF increased from Rs 50 to Rs 55.87 during this period, providing an appreciation of 11.7 percent in the value of the units.
This translates into an appreciation of 28 percent on an annualised basis.
In comparison during the same period, the KSE-100 index increased from 4204.40 to 4471.6, depicting an absolute appreciation of 6.4 percent and an annualised appreciation of 15.3 percent.
Hence the unit holders of MIF were better off by a margin of 5.4 percent for the period under review or 13 percent on an annualised basis, as compared to an average investor in the KSE-100 index.
The net asset value of MIF increased from Rs 55.87 on December 31, 2003 to Rs 59.22 at the end of January 2004.
The current offer and redemption prices applicable for February 12, 2004 were Rs 60.56 and Rs 59.35 respectively.