September 14, 2006	Thursday	Sha'aban 20, 1427

KARACHI, Sept 13: Al Meezan Investments will launch the first Islamic Income Fund. It will be an open-end fund with a unit value of Rs50. Mohammad Shoib, chief executive, Al Meezan Investments, said this would be the first of its kind in Pakistan. He was talking to press on Wednesday after the signing ceremony of the fund.

The trust deed of the new fund was signed by Al Meezan CEO Mohammad Shoib, Meezan Bank COO Ariful Islam, CDC CEO Hanif Jakhura and CDC CFO and company secretary Kamran Qazi.

Mr Shoib said currently most Shariah compliant (Islamic) mutual funds in Pakistan fell in the ‘equity fund’ category. “Al Meezan has the credit of launching the first-ever Islamic balanced fund.

Meezan Islamic Income Fund would invest in Islamic bonds called Sukuks, Musharika and Morabaha placements, Shariah complaint spread transactions and other Islamic income products.

Mr Shoib said the size of the Shariah compliant mutual fund industry had grown at a compound annual growth rate of over 100 per cent since 2000. At present the market share of Islamic funds in the overall mutual fund industry stands at 5.3 per cent as against 1.1 per cent in June 2000.

Al Meezan has the market share of over 75 per cent. The total size of funds managed by Al Meezan stood at Rs7 billion at the end of August 2006.

For the financial year ending June 30, 2006, Al Meezan Investments announced cash and stock dividends amounting to over Rs1.5 billion for three funds currently managed by Al Meezan.