karachi meezan index

KARACHI MEEZAN 30-INDEX

KARACHI MEEZAN

30-INDEX

GROUP MEMBERSGROUP MEMBERS

• Muhammad Hameed• M. Abubakar Siddique• Mirza Ali Raza• Sheikh Hamid Mukhtar• Shakeela Saleem• Muhammad Abubakar


PRESENTATION OUTLINESPRESENTATION OUTLINES


• Introduction

• Objective of Launch

• KMI – 30 Composition

• Eligibility Criteria

• Adjustments in the Islamic Index against corporate action

INTRODUCTION


INTRODUCTION…..INTRODUCTION….. KSE and Al-Meezan Investment

Management Limited launched its first co-branded Islamic Index (KMI-30)

Al Meezan Investments provide its Shariah expertise, guidelines, skills and stocks screening towards the activities with regard to launching and continuation process of the Index. On the contrary, KSE provides maintenance and dissemination support for the index.


FREE FLOAT METHODOLOGY….FREE FLOAT METHODOLOGY….

Free float calculation

Total Outstanding Shares xxx

Less:

Shares held by directors/sponsors xxx

Govt. holdings as promoter/ acquirer/controller xxx

Shares held by associated companies xxx

Shares held with public in physical form xxx ____

xxx

____


OBJECTIVE OF LAUNCHOBJECTIVE OF LAUNCH


OBJECTIVE OF LAUNCH…OBJECTIVE OF LAUNCH…

To provide investors suitable benchmark for returns on Shariah Compliant equity investments.

To help shariah conscious people choose the profitable stocks which are Shariah Compliant.

To provide a relevant benchmark to Islamic equity funds for comparing their performance.


KMI – 30 COMPOSITIONKMI – 30 COMPOSITION


KMI – 30 Index comprises of 30 Shariah Compliant Companies.

Shariah compliance is ensured through Stock Screening process conducted by Al-Meezan Investment Management Limited and counter checked by Capital Advisory division of PDSC Department.


KMI 30-INDEX KMI 30-INDEX COMPOSITION...COMPOSITION...

KMI-30, Effective from 2011


Product Development & Shariah Compliance

S-NO.

NAME OF COMPANY

S-NO.

NAME OF COMPANY

1 ATTOCK CEMENT 16 NISHAT MILLS LTD

2 ATTOCK REFINERY 17 OIL & GAS DEVE.

3 D.G.K.CEMENT 18 P.S.O.

4 FAUJI FERT BIN QASIM 19 P.T.C.L.A

5 FAUJI FERTILIZER CO. 20 PACKAGES LIMITEDXD

6 GLAXOSMITHKLINEXDXB 21 PAK OILFIELDS LTD.

7 HUB POWER CO. 22 PAK PETROLEUM

8 ICI PAKISTANSPOT 23 PAK REFINERY

9 INDUS MOTOR CO 24 PAK SUZUKI MOTORXD

10 KOT ADDU POWER CO. 25 SHELL PAKISTAN XD

11 LOTTE PAKPTAXD 26 SUI NORTH GAS

12 LUCKY CEMENT LTD. 27 SUI SOUTH GAS

13 MARI GAS CO. 28 THAL LTD

14 MILLAT TRACTORS 29 TRI-PACK FILMS

15 NATIONAL REFINERY 30 UNILEVER PAKXD

ELIGIBILITY CRITERIAELIGIBILITY CRITERIA


ELIGIBLE FOR KMI 30 INDEX…ELIGIBLE FOR KMI 30 INDEX…

Securities are available in central depository system

Formal listing of two month on KSENot defaulterCompany have free _float shares of 5% of

total outstandingSecurities are traded 75% of the total

trading days


NOT ELIGIBLE FOR KMI 30 INDEXNOT ELIGIBLE FOR KMI 30 INDEX

Interest relatedGambling or alcoholArms ManufacturingInsurance both life and generalNon Halal foodDefaulter CompanyMutual funds both open-ended and close

ended


CRITERIA ACCORDING TO CRITERIA ACCORDING TO FINANCIALFINANCIAL

RATIOS RATIOS


LEVERAGE COMPLIANCELEVERAGE COMPLIANCE

Interest Bearing Debt < 40% of Total Interest Bearing Debt < 40% of Total AssetsAssets

Interest Bearing Debt includes Bonds, TFCs, Conventional Bank Loans, Finance Lease, Preference Shares etc.

Total Interest bearing Debt must be less than 40% of the Total assets of the investee company


INVESTMENT COMPLIANCEINVESTMENT COMPLIANCE

Non-Shariah Compliant Investments < Non-Shariah Compliant Investments < 33% of Total Assets33% of Total Assets

Non-Shariah Compliant Investments include investments in conventional mutual funds, conventional money market instruments, Bonds, T-Bills, all Interest based placements and interest based loans and advances etc.

Non-Shariah Compliant investments must be less than 33% of Total Assets of the investee company.


Income Compliance…Income Compliance…

Non-Compliant Income < 5% of Non-Compliant Income < 5% of Total RevenueTotal Revenue

Non Compliant Income includes Bank Interest, Income from gambling, nightclubs, prostitution, casino, tobacco, alcohol, dividend income from above mentioned businesses, dividend income from Shariah non-Compliant Companies etc.

Capital Gain need not be purified.

Non-Shariah Compliant income must be less than 5% of Total Revenue of the investee company.


Total Revenue includes Gross Sales + Other Operating Income.

Dividend Purification is done by disbursing amount in Charity calculated as per the Charity rate determined and approved by PDSC.

ILLIQUID ASSETS ILLIQUID ASSETS COMPLIANCE…COMPLIANCE…

Compliance is measured as Illiquid assets / total assets>20%


BASE PERIOD….BASE PERIOD….The index committee has used 15,000 as the

base value

June - 30- 2008 base the base year

Islamic index = Free float market capitalization

Index divisor Index divisor = Free float market capitalization

slamic index

Review period and Re-Review period and Re-compositionscompositions

The index will always be re-composed on semiannual basis

Basis Basis Revision Revision December 31 May 15

June 30 November 15


Adjustment for cash dividendAdjustment for cash dividend

Adjustment for Bonus SharesAdjustment for Bonus Shares

Adjustment for Right SharesAdjustment for Right Shares


Adjustments in the Islamic Adjustments in the Islamic Index against corporate Index against corporate

actions..actions..

karachi meezan index

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