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.

The fund reported total income of Rs306.4 million during the quarter, compared with Rs1.19 billion in the corresponding period of 2025. Dividend income stood at Rs492.7 million, while profit on savings accounts with banks amounted to Rs6.46 million. However, the fund also recorded a realised loss of Rs192.8 million on the sale of investments.

The unrealised loss of Rs4.76 billion, compared with an unrealised gain of Rs12.92 billion in the same quarter last year, was the principal factor behind the fund’s negative financial performance. Consequently, total income turned negative at Rs4.45 billion, compared with positive income of Rs14.11 billion in the corresponding quarter of the previous year.

The fund’s expenses increased to Rs652.3 million during the quarter from Rs532.2 million a year earlier. These included management remuneration, trustee fees, brokerage expenses, bank and settlement charges, and other administrative costs.

After accounting for expenses, Meezan Islamic Fund posted a net loss of Rs5.10 billion before and after taxation, as no tax charge was reported for the period.

The fund had recorded a net income of Rs13.57 billion in the corresponding quarter of 2025, reflecting a significant year-on-year reversal in its reported financial performance.

The statement also showed no accounting income available for distribution for the quarter ended September 30, 2026, compared with Rs12.67 billion in the same period last year.

The reported loss largely reflects the decline in the valuation of investments during the quarter. An unrealised loss arises when the market value of an investment falls, even if the investment has not been sold. Such losses can change in subsequent periods as market prices fluctuate.

The financial statement does not specify which individual investments accounted for the decline or establish the precise market factors behind the valuation loss.