Meezan Islamic Fund Reports Rs5.1bn Loss in September Quarter
KARACHI: Meezan Islamic Fund has reported a net loss of Rs5.1 billion for the quarter ended September 30, 2026, primarily due to a sharp decline in the market value of its investments, which resulted in a substantial unrealised loss during the period.
According to the fund’s unaudited interim income statement, the fund recorded an unrealised loss of approximately Rs4.76 billion on the remeasurement of investments classified as financial assets at fair value through profit or loss. This loss outweighed the income generated from dividends, bank deposits and realised gains on the sale of investments.
Meezan Islamic Fund reported a net loss of Rs5.10 billion for the quarter ended September 30, 2026, reversing a net income of Rs13.57 billion recorded in the same period last year. The decline mainly reflected a significant unrealised loss on investments during the quarter.
According to the fund’s financial statement, total income fell to negative Rs4.45 billion from positive income of Rs14.11 billion in the corresponding quarter of 2025.
Unrealised Investment Loss Hits Meezan Islamic Fund
The fund recorded an unrealised loss of Rs4.76 billion during the quarter. This compared with an unrealised gain of Rs12.92 billion in the same period last year.
The valuation loss was the main factor behind the fund’s negative financial performance. Unrealised losses occur when the market value of investments declines, even if the fund has not sold those investments.
These losses can change in subsequent reporting periods as market prices fluctuate. However, the financial statement does not identify the individual investments responsible for the decline or specify the exact market factors behind the loss.
Dividend Income Reaches Rs492.7 Million
Meezan Islamic Fund reported total income of Rs306.4 million before accounting for the unrealised investment loss and other reported items, compared with Rs1.19 billion in the corresponding quarter of 2025.
Dividend income amounted to Rs492.7 million during the quarter. The fund also earned Rs6.46 million in profit on savings accounts with banks.
However, it recorded a realised loss of Rs192.8 million on the sale of investments. The combination of investment income and losses contributed to the fund’s reported financial results.
Fund Expenses Increase to Rs652.3 Million
Meezan Islamic Fund’s expenses rose to Rs652.3 million during the quarter, compared with Rs532.2 million a year earlier.
These expenses included management remuneration, trustee fees, brokerage charges, bank and settlement costs, and other administrative expenses.
After accounting for expenses, the fund reported a net loss of Rs5.10 billion both before and after taxation. The financial statement reported no tax charge for the period.
No Income Available for Distribution
The financial statement showed no accounting income available for distribution for the quarter ended September 30, 2026. In contrast, the fund reported Rs12.67 billion in income available for distribution during the corresponding period last year.
The latest results mark a significant year-on-year reversal in the fund’s financial performance. The reported loss largely reflects the decline in investment valuations during the quarter.
However, the available financial statement does not establish whether the valuation losses will persist in future periods. Subsequent results will depend partly on changes in the market value of the fund’s investments.
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