MEEZAN BALANCED FUND

MEEZAN BALANCED FUND

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Company Overview
Meezan Balanced Fund is a publicly traded company which operates as a closed-end mutual fund. It was established in 2004 and has a registered head office in Karachi, Pakistan.
Meezan Balanced Fund will invest in equity and Islamic income instruments. It will make use of triggers such as earnings growth and dividend yields to achieve its balanced growth strategy. The levels of dividend yield and earnings growth specified for stocks will be continuously monitored through financial models so that stocks above the defined thresholds are added whereas stocks falling below the defined thresholds are sold. Meezan Balanced Fund will invest in Islamic instruments such as Islamic TFCs, Islamic Sukuk (bonds), certificates of Islamic investments and similar instruments. It will also make substantial use of the hedging mechanism between the ready market and the futures market to provide the investors with a locked-in profit in a completely Shariah compliant manner.
Meezan Balanced Fund’s investment objective is to generate long term capital appreciation as well as current income by creating a balanced portfolio that is invested both in high quality equity securities and Islamic Income Instruments such as Term Finance Certificates (TFCs), Certificates of Investments (COIs), Certificates of Musharika, Islamic Sukuk, Ready-future hedges, and other such Shariah compatible instruments. Further, Al Meezan Investment Management Limited (AMIML) is the investment advisor of Meezan Balanced Fund and Central Depository Company of Pakistan Limited (CDC) is its trustee.
Business Summary
The investment objective of the Fund is to generate long term capital appreciation as well as current income by creating a balanced portfolio that is invested both in high quality equity securities and Islamic Income Instruments such as Term Finance Certificates (‘TFCs’), Certificates of Investments (‘COIs’), Certificates of Musharika, Islamic Sukuk, Ready-future hedges, and other such Shariah compatible instruments.
Description and history
The investment objective of the Fund is to generate long term capital appreciation as well as current income by creating a balanced portfolio that is invested both in high quality equity securities and Islamic Income Instruments such as Term Finance Certificates (‘TFCs’), Certificates of Investments (‘COIs’), Certificates of Musharika, Islamic Sukuk, Ready-future hedges, and other such Shariah compatible instruments.
The Fund is the first Shariah compliant balanced fund in Pakistan. The fund is being offered to the public from December 20 to December 23, 2004.

The trust deed of the Fund was registered on June 15, 2004. The fund has a Pre-IPO placement of Rs.900 million, an IPO of Rs.300 million. The Fund is a closed-end balanced fund constituted under Non-Banking Finance Companies (Establishment Regulation) Rules, 2003. A balanced fund theoretically provides stable income stream along with equity upside.

Investment in stocks provides capital appreciation and returns higher than those of bonds and bank deposits, whereas investment in fixed income instruments offers the security of a constant income stream to investors. The flexible equity-debt allocation allows the balanced fund to take advantage of the trends in the equity as well as debt markets.

Business Line
Operates as a closed-end mutual fund
Subsidiary

Advisor
A.F. FERGUSON & CO
IPO date
2/28/2005
US SIC Code
6099
Company Address
GROUND FLOOR, BLOCKB
FINANCE AND TRADE CENTRE(FTC)
City province or state postal code
KARACHI,74400
Phone: +92 21 35630722
Fax: +92 21 35630808
Country address: PAKISTAN
Website url: www.almeezangroup.com