⚡ Flash Summary

The Quarterly Report of Meezan Pakistan Exchange Traded Fund (MZNPETF) for the quarter ended September 30, 2025, reveals a strong performance driven by positive economic indicators and market sentiment in Pakistan. The KSE100 and KM130 indices demonstrated impressive growth, reaching record levels. The fund size increased substantially driven by new unit issuance, while maintaining Shariah compliance. However, the fund’s returns slightly underperformed compared to its benchmark during this period.

📌 Key Takeaways

• 📈 The KSE100 Index posted an impressive 32% return, positioning Pakistan as one of the top-performing markets globally.
• 💰 The AUM of the mutual fund industry surged by 10.2% to Rs. 4,197 billion.
• ⚖️ Shariah Compliant AUMs grew by 12.1% to Rs. 1,993 billion.
• 🥇 Al Meezan’s market share in the Mutual Funds industry stood at 15%.
• 🛡️ All Equity Funds, on average, underperformed the benchmark return of KSE Meezan Index (KMI 30) of 33.20%.
• 💸 Meezan Pakistan Exchange Traded Fund (MZNP-ETF) increased 116% to 640 million rupees.
• 📊 The net asset value (NAV) per unit at September 30, 2025 was Rs. 21.2679.
• 🏦 Pakistan recorded a current account surplus of USD 110 million in September 2025.
• 🤝 Pakistan and the United States announced a trade agreement aimed at boosting bilateral trade.
• ✅ Moody’s Ratings announced an upgrade for Pakistan’s local and foreign currency issuer and senior unsecured debt ratings to Caa1 from Caa2.
• 🤝The government signed an agreement for a massive financing facility with a consortium of commercial banks, aiming to resolve circular debt in the Power sector.

🎯 Investment Thesis

Based on current information, a ‘HOLD’ recommendation for MZNPETF is warranted. While the fund demonstrates strong growth and follows positive economic trends, there is indication of underperformance relative to the benchmark index. Furthermore, factors may lead to consolidation in the market. Therefore, retaining current position in MZNPETF is considered appropriate.