DIVIDEND ANNOUNCEMENT FOR THE FISCAL YEAR 2020-21 - Al Meezan Investment Management Limited
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DIVIDEND ANNOUNCEMENT FOR THE FISCAL YEAR 2020-21

June 28, 2021

Dear Investors,

We are pleased to inform that the Chief Executive Officer of Al Meezan Investment Management Limited under the authority delegated by the Board has approved the following interim payouts

S. No Fund Payout per unit – Rs. Payout as % of par value of Rs. 50 each
1. Meezan Cash Fund 2.89 5.78
2. Meezan Sovereign Fund 3.90 7.80

Unit holders whose names appeared in the register of afore
mentioned Funds as at close of the business on Friday June 25, 2021 were entitled to the above payouts.

In the interest of our valued investors, no payout has been made in the funds where there was no mandatory requirement*. Unit holders who desire to have cash in these funds can do so by redeeming part of their investments. The Capital Gains realized on redemption will be subject to CGT at 12.5%** of the Gains, contrary to dividend amount, which would have been taxed at 15%**. Moreover, Capital Gains on investments held for over four years are also exempt from any Capital Gain Tax.

To illustrate, please consider, if you had invested Rs. 1,000,000/- on July 1, 2020 in Meezan Islamic Fund***, your current investment value as on June 25, 2021 would have been approximately Rs. 1,366,100/- denoting 36.61% return since July 1, 2020.

If we had distributed this entire profit as dividend, you would have been taxed at 15%** (Rs. 54,915/- on Rs. 366,100/-) irrespective of whether you needed cash flow equivalent to the entire profit for the year or wanted to remain fully invested in the fund.

Hence the optimum situation is that you can yourself decide how much cash you need to redeem at this stage out of this profit. Not only that, the redeemed amount will attract a lower tax rate at 12.5% when it is received in the form of capital gains.

Rest assured that Al Meezan and its Management are always striving in your best interest. We thank you for your understanding and continued patronage and look forward to a long-term business relation.

* Except for those Funds/Plans for which the payout, if any, will be announced on June 30, 2021

**The mentioned tax rates are for persons appearing in Active Tax Payers’ List (Filer) only. For person not appearing in Active Tax Payers’ List (non-filers) the tax rates will be higher.

Disclaimer: All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of the future results. Please read the Offering Document to understand the investment policies, tax implications and risks involved. The performance data has been computed NAV to NAV with dividend reinvested and does not include cost incurred by investor in the form of sales-load etc. ***MIF 1 Year Return 37.71% & Benchmark return 42.74%, 3 year return 4.15% & Benchmark Return 7.90%, 5 Year Return 13.69% & Benchmark return 24.48%, Since Inception CAGR 15.70%, Since Inception Benchmark CAGR 14.13%. Risk Profile: High Risk of Principle Erosion. Fund Category: Islamic Equity. Data as on 31st May 2021.