The Meezan Pakistan Exchange Traded Fund (METF) delivered a significantly stronger financial performance during the year ended June 30, 2026, with net income rising sharply compared with the previous year.

According to the financial statements released by Al Meezan Investment Management Limited, the fund recorded net income of Rs484.39 million for FY2026, compared with Rs81.09 million in FY2025. The substantial improvement was supported by stronger investment performance, including gains from the re-measurement and sale of investments.

Investment Income Drives Performance

The fund reported total income of approximately Rs239.48 million from operating income before accounting for the element of income and capital gains included in the prices of units issued less those redeemed. The statement shows net realised gains on sale of investments of Rs63.17 million, while net unrealised appreciation on investments classified at fair value through profit or loss stood at Rs138.67 million.

After operating expenses of around Rs13.11 million, net income from operating activities amounted to Rs226.38 million. The fund also recorded Rs258.01 million as the element of income and capital gains included in the prices of units issued less those redeemed, taking net income before and after taxation to Rs484.39 million.

The fund reported no taxation for the year.

Asset Base Expands Sharply

The fund’s balance sheet also reflected significant expansion during the year. Total assets increased to approximately Rs1.72 billion as of June 30, 2026, compared with Rs339.35 million a year earlier.

Investments represented the largest portion of the asset base, reaching about Rs1.42 billion, while balances held with banks stood at Rs22.12 million. Net assets increased to Rs1.44 billion, compared with Rs295.47 million at the end of FY2025.

The number of units in issue also increased substantially, reaching approximately 79.37 million units, compared with 19.02 million units in the previous year. Despite the significant increase in the fund’s size, the net asset value (NAV) per unit also improved, rising to Rs18.1376 from Rs15.5347.

Distribution to Unit Holders

The fund’s statement of movements in unit holders’ fund shows that a distribution of Rs3.50 per unit was declared during FY2026, compared with Rs2.25 per unit in FY2025. This reflects a higher distribution compared with the previous year.

The fund’s accounting income available for distribution, excluding capital gains, stood at Rs282.54 million, while income relating to capital gains amounted to Rs201.84 million. Total accounting income available for distribution reached Rs484.39 million.

Stronger Cash Position

The fund also ended the year with a stronger cash position. Cash and cash equivalents stood at Rs22.12 million at June 30, 2026, compared with Rs1.69 million at the end of FY2025.

The cash flow statement shows that the fund generated Rs1.15 billion in net cash from financing activities, primarily through receipts against issuance of units, although this was partly offset by dividend payments and payments against unit redemptions.

Overall, the FY2026 results indicate a year of substantial expansion for the Meezan Pakistan Exchange Traded Fund. Higher investment gains, a larger asset base, increased unit issuance and a higher per-unit distribution all contributed to a considerably stronger financial performance compared with FY2025. The reported rise in NAV per unit further highlights the fund’s improved position at the close of the financial year.