Income/Money Market Funds - Al Meezan Investment Management Limited
Al Meezan Investments

Income/Money Market Funds

Income funds aim at providing regular and steady income to investors. These schemes generally invest in fixed income securities such as bonds, government securities, bank placements, Islamic income instruments etc. Income funds are less volatile compared to equity schemes and are best suited for investors who wish to avoid stock market volatility.

Meezan Islamic Income Fund is Pakistan’s first Shariah compliant income fund scheme. The purpose of Meezan Islamic Income Fund is to provide investors with a safe and stable stream of Halal income on their investments and to generate superior long term risk adjusted returns.

Investment Objective & Philosophy

The Fund’s primary objective is to provide investors with a competitive and stable rate of current income in a Shariah compliant way. It also aims to take advantage of opportunities to realize capital appreciation.

The Fund aims to provide the investors with a total return consistent with a broadly diversified portfolio of long, medium and short term, high quality Islamic income Instruments such as Sukuks (Islamic bonds), Certificates of Investment, commercial papers, government securities and bank placements.

 Key Benefits

  • Meezan Islamic Income Fund is Pakistan’s first Shariah Compliant open-end Income Fund.
  • It may provide diversification opportunity when added to a hybrid investment portfolio thus resulting in lower risk and healthy return on your investment
  • Average Annualized return since inception (January 15, 2007 till June 30, 2021) is 16.23%
  • Strong long-term performance track record both in absolute terms and relative to its benchmark
  • Managed by the only Shariah compliant Asset Management Company in Pakistan with a solid track record of over 26 years, and under the supervision of the Shariah Supervisory Board of Meezan Bank headed by Justice (Retd.) Mufti Muhammad Taqi Usmani

This product is suitable for investors who are seeking* :

  • Protection of investments from stock market volatility, while providing diversification to the overall investment portfolio
  • Long term regular income solution

*Investors are encouraged to consult their Investment advisors prior to investing in the product.

Medium

Note: Medium Risk means Risk of Principal Erosion is Medium

Key Features

Scheme Name Meezan Islamic Income Fund
Scheme Type Open-end Islamic Income Fund
Date of Inception January 15, 2007
Fund Size – June 30, 2021 Rs.27.25 Billion
Objective of the scheme The Fund’s primary objective is to provide investors with a high and stable rate of current income consistent with long term preservation of capital in a Shariah compliant way. A secondary objective is to take advantage of opportunities to realize capital appreciation.
Benchmark 6 months average deposit rates of 3 A- rated islamic Banks
Minimum Investment Amount Rs.5,000 (and Rs. 1,000 thereafter)
Management Fee Up to 6.5% of Gross Earnings (min. 0.25% of avg. annual net assets max. 1.5% of avg. annual net assets)
Lock-in Period None
Entry Load 1.0%
Exit Load Contingent Load for Type C unit investors
Selling and Marketing Expense 0.4%
Tax Benefits Tax credit (as per prevailing Tax Rules)* on maximum 20% of your taxable income or Rs. 20 Lac, whichever is lower.
*Under Section 62 of the Income Tax Ordinance 2001
Systematic Investment Plan Facility Yes
Fund performance Highlights FY21 FY20 FY19 FY18 FY17 FY16 FY15 FY14 FY13 FY12 FY11 FY10
MIIF Returns 6.6% 11.6% 7.92% 4.26% 5.09% 5.76% 8.15% 11.90% 14.45% 7.79% 11.77% 7.31%
Benchmark Returns 3.6% 6.3% 3.69% 2.44% 2.78% 3.49% 5.04% 5.38% 5.54% 6.02% 5.88% 5.80%
MIIF Dividend ( Rupees per unit) 3.41 5.8863 4.0472 2.1954 2.50* 2.50* 3.40 5.78 6.75 3.97 6.25 3.135

*Interim Dividend for the period (July 1, 2016 – June 20, 2017)

Fund Name Applicable Date Management Fee
Meezan Islamic Income Fund Type B Units 2021-09-20 0.50
Meezan Islamic Income Fund Type B Units 2021-09-17 0.50
Meezan Islamic Income Fund Type B Units 2021-09-16 0.50
Meezan Islamic Income Fund Type B Units 2021-09-15 0.50
Meezan Islamic Income Fund Type B Units 2021-09-14 0.50
Meezan Islamic Income Fund Type B Units 2021-09-13 0.50
Meezan Islamic Income Fund Type B Units 2021-09-10 0.50
Meezan Islamic Income Fund Type B Units 2021-09-09 0.50
Meezan Islamic Income Fund Type B Units 2021-09-08 0.50
Meezan Islamic Income Fund Type B Units 2021-09-07 0.50

Note: For details on Tax Credit, please Click Here

Meezan Sovereign Fund is Pakistan’s first Shariah compliant government securities fund. The purpose of Meezan Sovereign Fund is to safeguard the principal investment amount of an investor along with providing stable and healthy returns.

Investment Objective & Philosophy

The Fund’s primary objective is to provide maximum possible preservation of capital and a reasonable rate of return by investing primarily in Shariah compliant Government Securities.

MSF primarily invests in government securities, which enjoy the highest possible rating of “AAA”. The fund has been awarded stability rating of ‘AA(f)’ by VIS & PACRA, which denotes  high degree of stability in net asset value of the fund.

Key Benefits

  • The first Shariah compliant open-end government securities fund in Pakistan
  • Provides maximum preservation of principal amount along with stable and consistent returns on the investment
  • Average Annualized return since inception (February 10, 2010 till June 30, 2021) is 12.20%
  • Managed by the only Shariah compliant Asset Management Company in Pakistan with a solid track record of over 26 years, and under the supervision of the Shariah Supervisory Board of Meezan Bank headed by Justice (Retd.) Mufti Muhammad Taqi Usmani

This product is suitable for investors who are seeking* :

  • Stable returns and want to avoid volatility of other fixed income instruments and stock market
  • To minimize the risks while maximizing liquidity.

*Investors are encouraged to consult their Investment advisors prior to investing in the product.

Low

Note: Moderate Risk means Risk of Principal Erosion is moderate

Key Features

Scheme Name Meezan Sovereign Fund
Scheme Type Open-end Islamic Government Securities Fund
Date of Inception February 10, 2010
Fund Size – June 30, 2021 Rs.9.94 Billion
Objective of the scheme The Fund’s primary objective is to seek maximum possible preservation of capital and a reasonable rate of return by investing primarily in Shariah compliant government securities.
Benchmark 6 Months PKISRV Rate
Minimum Investment Amount Rs.5,000 (and Rs. 1,000 thereafter)
Lock-in Period None
Management Fee Up to 0.6% p.a.(min 0.25)
Entry Load 1.0%
Exit Load Nil
Selling and Marketing Expense 0.4%
Tax Benefits Tax credit (as per prevailing Tax Rules)* on maximum 20% of your taxable income or Rs. 20 Lac, whichever is lower.
*Under Section 62 of the Income Tax Ordinance 2001
Systematic Investment Plan Facility Yes
Fund performance Highlights FY21 FY20 FY19 FY18 FY17 FY16 FY15 FY14 FY13 FY12 FY11 FY10
MSF Returns 7.7% 11.2% 7.02% 2.57% 6.57% 6.81% 6.81% 8.50% 9.11% 11.19% 11.45% 9.76%*
Benchmark Returns 3.7% 7.9% 7.15% 4.96% 4.65% 6.24% 6.24% 6.55% 6.91% 8.13% 8.24% 7.50%
MSF Dividend (Rupees per unit) 3.90 5.6990 3.5911% 2.75* 2.25* 3.45 3.69 4.40 5.36 5.52 1.80*

*Interim Dividend for the period (July 1, 2016 – June 22, 2017)

Note: For details on Tax Credit, please Click Here

Meezan Cash Fund is Pakistan’s first Shariah compliant money market fund. MCF aims to bring you stable and Halal returns through avoiding volatility of both long-term fixed income securities and stock markets.

Investment Objective & Philosophy

The Fund’s primary objective is to seek maximum possible preservation of capital and a reasonable rate of return via investing primarily in liquid and short term Shariah compliant money market and debt securities.

The Fund invests in high quality instruments with issue or entity rating of minimum ‘AA’, thus seeking to provide maximum capital preservation for your investment. It is an ideal parking avenue for short-term cash parking with great liquidity.

 Key Benefits

  • The first Islamic money market Fund in Pakistan.
  • Maximum preservation of principal investment resulting in lower risk
  • Average Annualized return since inception (January 15, 2007 till June 30, 2021) is 12.35%
  • High liquidity (redemption within one-two working days)
  • Managed by the only Shariah compliant Asset Management Company in Pakistan with a solid track record of over 26 years, and under the supervision of the Shariah Supervisory Board of Meezan Bank headed by Justice (Retd.) Mufti Muhammad Taqi Usmani

This product is suitable for investors who are seeking* :

  • Parking avenue for short-term funds
  • Stable and Halal returns avoiding volatility of both long-term fixed income securities and stock markets

*Investors are encouraged to consult their Investment advisors prior to investing in the product.

Low

Note: Low Risk means Risk of Principal Erosion is low

Key Features

Scheme Name Meezan Cash Fund
Scheme Type Open-end Islamic Money Market Fund
Date of Inception June 15, 2009
Fund Size – June 30, 2021 Rs.13.56 Billion
Objective of the scheme To seek maximum possible preservation of capital and a reasonable rate of return via investing primarily in liquid Shariah compliant money market and debt securities.
Benchmark 3 Months average deposit rates of 3 AA rated Islamic Banks
Minimum Investment Amount Rs.5,000 (and Rs. 1,000 thereafter)
Lock-in Period None
Management Fee Up to 0.6% p.a.(min 0.10)
Entry Load Nil
Exit Load 0.1% (if redeemed within 3 days)
Selling and Marketing Expense 0.4%
Tax Benefits Tax credit (as per prevailing Tax Rules)* on maximum 20% of your taxable income or Rs. 20 Lac, whichever is lower.
*Under Section 62 of the Income Tax Ordinance 2001
Systematic Investment Plan Facility Yes
Fund performance Highlights FY21 FY20 FY19 FY18 FY17 FY16 FY15 FY14 FY13 FY12 FY11 FY10
MCF Returns 5.81% 10.95% 7.84% 4.27% 6.07% 4.59% 7.46% 7.08% 8.78% 10.71% 11.02% 10.09%
Benchmark Returns 3.41% 5.37% 3.37% 2.58% 2.90% 4.49% 6.24% 6.55% 6.91% 8.13% 8.24% 7.50%
MCF Dividend ( Rupees per unit) 2.89 5.4787 3.9218% 2.75* 2.25** 3.70* 3.42 4.24 5.07 5.26 4.94

*Interim Dividend for the period (July 1, 2016 – June 22, 2017)

Note: For details on Tax Credit, please Click Here

Meezan Rozana Amdani Fund is an Open Ended Shariah Compliant Money Market Scheme.

Investment Objective & Philosophy

The objective of the Fund is to meet liquidity needs of investors by providing investors a daily payout through investment in Shariah Compliant money market instruments.

The Fund shall be subject to such exposure limits as are specified in the Rules, the Regulations and directives issued by SECP from time to time. The Fund will make daily payout to the unit holders, which will be reinvested.

 Key Benefits

  • Competitive Halal Returns
  • Provides higher returns then bank saving account
  • Good  Avenue for short term investments
  • Daily Dividend Units Distributed into investor’s account
  • Easy Online Investment & redemption Facility Available
  • Easy access through Mobile Application & Member Service Area

Low

Note: Low Risk means Risk of Principal Erosion is low

Key Features

Scheme Name Meezan Rozana Amdani Fund
Categorization of the Fund Shariah compliant Money Market Scheme
Date of Inception December 26, 2018
Fund Size – June 30, 2021 Rs. 74.70 billion
Benchmark Three (3) months average deposit rates of three (3) AA rated Islamic banks.
Minimum Investment Initial PKR 5 Lakhs/- or above
Subsequent PKR 500,000/- or above
Payout Policy The fund on a daily basis shall distribute all net profit (after deducting unrealized gains and all expenses of the fund) as dividend and that dividend shall be reinvested after deducting applicable taxes.
Front & Bank End Load Nil
Management Fee Up to 3.5% of gross earnings subject to minimum floor of 0.10% of net assets p.a and maximum cap of 0.75% of net assets p.a
Target Towards
  • Corporates
  • HNW
Fund Name Applicable Date Payout Management Fee
Meezan Rozana Amdani Fund*** 2021-09-20 0.0298 0.15
Meezan Rozana Amdani Fund*** 2021-09-17 0.0098 0.15
Meezan Rozana Amdani Fund*** 2021-09-16 0.0091 0.20
Meezan Rozana Amdani Fund*** 2021-09-15 0.0091 0.20
Meezan Rozana Amdani Fund*** 2021-09-14 0.0090 0.20
Meezan Rozana Amdani Fund*** 2021-09-13 0.0270 0.20
Meezan Rozana Amdani Fund*** 2021-09-10 0.0090 0.20
Meezan Rozana Amdani Fund*** 2021-09-09 0.0091 0.20
Meezan Rozana Amdani Fund*** 2021-09-08 0.0089 0.20
Meezan Rozana Amdani Fund*** 2021-09-07 0.0089 0.20

Risk Disclaimer: All Investments in mutual Fund are subject to market risks. The NAV of Units may go down or up based on the market conditions. The investors are advised in their own interest to carefully read the contents of the Offering Document, in particular the Investment Policies mentioned in clause 2, Risk Factors mentioned in clause 2.4, Taxation Policies mentioned in Clause 7 and Warnings and Disclaimer mentioned in Clause 9 before making any investment decision.

Investment Objective & Policy of the Plan – Meezan Daily Income Plan – I (MDIP – I)

The “Meezan Daily Income Plan-I (MDIP – I)” is an Allocation Plan under “Meezan Daily Income Fund (MDIF)” with an objective to provide investors with a competitive rate of return, together with daily payout, through investment in Shariah Compliant fixed income instruments.

The allocation plan will be actively allocated between Shariah Compliant authorized investable avenue as mentioned in the authorized investments table*. The plan shall be subject to such exposure limits as are specified in the Rules, the Regulations and directives issued by SECP from time to time. The plan shall make daily payout to the unit holders, which will be reinvested.

 Key Benefits

  • Competitive Halal Returns
  • Good Avenue for short to medium term investments
  • Daily Dividend Distribution, if any
  • No lock in period: Investors are entitled to profits even if they invest for a day
  • Monthly payout option available
  • Easy Online Investment and Redemption Facility Available
  • Easy access through Mobile Application and Meezan Funds Online

Moderate

Note: Moderate Risk means Risk of Principal Erosion is Moderate

Plan Details

Plan Name Meezan Daily Income Plan – I (MDIP-I)
Categorization of the Fund Shariah Compliant Open End Income Scheme
Date of Inception 13 September, 2021
Plan Size – September 30, 2021
Benchmark Six (6) months average deposit rates of three (3) A rated scheduled Islamic Banks or Islamic windows of conventional bank as Selected by MUFAP.
Minimum Investment* PKR 200,000
Subsequent PKR 200,000
Dividend Payout Daily Basis
Front End Load Up to 1.5%
Back End Load Nil
Management Fee The Management Company shall charge a fee at the rate of up to 5% of the gross earnings of the Scheme, calculated on a daily basis, subject to a minimum of 0.1% of the average daily net assets of the Scheme.
Target Towards MDIP-I
HNWI’s, Corporates, Islamic Banks, DFI’s, Takaful Companies, Employee Retirement and Endowment funds, Charitable Institutions and Trusts & NGO’s

*The Management Company reserves the right to alter the minimum amounts stated hereinabove after giving thirty days prior notice to the Unit Holders. However, enhancement in current minimum monetary investments shall not take effect retrospectively.

Authorized Investments*

Authorized Investments

Entity / Instruments Rating

Maximum
Exposure

Minimum
Exposure

Shariah Compliant GOP issued/guaranteed Securities

N/A

75%

0%

Cash at Bank (excluding TDRs) with licensed Islamic Banks or Islamic Branches/Windows of Conventional Banks, Shariah Compliant Government Securities including GoP Ijarah Sukuk not exceeding 90 days maturity.

A+ & above

100%

25%

Shariah compliant traded/non-traded securities with maturity not exceeding six (6) months, including but not limited to Bank deposits with licensed Islamic banks and/or Islamic branches/windows of Conventional banks, Sukuk and Islamic commercial papers.

AA

75%

0%

Shariah compliant non-traded securities with maturity not exceeding six (6) months, including but not limited to placement of funds with Islamic Microfinance Bank, NBFC and Modarabas.

AA

25%

0%

Shariah compliant non-traded securities with maturity exceeding six (6) months, including but not limited to Bank deposits with licensed Islamic banks and/or Islamic branches/windows of Conventional Banks and placement of funds with Islamic Financial Institutions

AA

15%

0%

Authorized Shariah Compliant Investments outside Pakistan shall be subject to prior approvals and guidelines (if any) of the SECP, SBP and Shariah Advisor

As allowed by SECP

0%

Any other Shariah Compliant instruments/securities that may be permitted or approved by the SECP and Shariah Advisor of the Scheme from time to time

As allowed by SECP

0%

Note: Investments shall be made as per the authorized investment limits given above and shall be made according to the following mode of Shariah Transaction such as; principles of Bai’-Mu’ajjal, Bai’-Mussawwama, Bai’-Salam, Istisna’a, Mudaraba, Murabaha and Musharakah or any other structure as approved by the Shariah Advisor from time to time. Weighted average time to maturity of the net assets shall not exceed 4 years and this condition shall not apply to securities issued by the Federal Government

Fund Documents

Term sheet Click Here

Offering Document Click Here

Risk Disclaimer: All Investments in mutual Fund are subject to market risks. The NAV of Units may go down or up based on the market conditions. The investors are advised in their own interest to carefully read the contents of the Offering Document, in particular the Investment Policies mentioned in clause 2, Risk Factors mentioned in clause 2.6, Taxation Policies mentioned in Clause 7 and Warnings in Clause 9 before making any investment decision.

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  • Get account balance: SMS BAL (Portfolio ID) to ‘6655’
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*The return on investment is not fixed and is subject to market risks. If you want to evaluate fund performance, you may refer to the Latest Fund Manager Report. Click here