Meezan Gold Fund (MGF) in line with its objective, aims to provide investors with the maximum possible exposure to prices of gold in Shariah Compliant manner. This is done by investing a significant portion of the net assets of MGF in deliverable gold based contracts that are available on Pakistan Mercantile Exchange (PMEX).
We have received significant inflows in MGF, which has resulted in reduction of our invested percentage. The supply of physical gold remains restricted and, as a result, MGF is not able to invest in physical gold through PMEX. In order to protect the interest of existing unit holders of MGF, the Management Company in accordance with clause 4.13.2 of the Offering Document and clause 13.5.1 of the Trust Deed of the MGF has, upon intimation to Trustee and SECP, suspended fresh issuance of units of MGF till further notice.
We would however like to clarify that the Management Company shall continue to honour redemptions and conversions from the MGF, should any existing investor seek to do so.
It is clarified that only fresh issuance of units is temporarily suspended due to the reasons outlined above and the Management Company shall resume issuance of fresh units once there is a consistent and normal level of supply of physical gold at PMEX.
Salman Muslim
Company Secretary
Date: January 29, 2022