Pakistan Mutual Funds Analysis May 2012
By Mustansir Shabbar - Head of Customer Services, Dawood Capital Management Limited
Overall Industry
In May’12, AMC industry has recorded a meager increase of 3.69% MoM and a record increase of 58.10% YTD in overall AUMs to reach 392.44 bn. The main reason was the year end closing is coming up for FY12 and most of the corporates are not considering their portfolios to be invested rather they want to keep them liquid as much as possible. Also banks have started to offer handsome rates heading to year end balance requirements. We shall se the cut-throat competition among banks and AMCs in coming month.
Conventional vs. Islamic
Besides overall position, the conventional AUMs were increased by 4.30% MoM as opposed to 0.01% decrease in Islamic AUMs. However, on QoQ and YTD basis conventional AUMs were increased by 8.70% and 62.26% as compared to increase of 6.24% and 36.08% in Islamic AUMs respectively which is very positive for the industry.
Mutual Funds vs. Pension Funds
Overall mutual funds have witnessed a growth of 3.67% MoM as compared to a growth of 5.74% in Pension Funds. On QoQ and YTD, mutual funds showed a growth of 8.28% and 58.12% as compared to the growth of 21.64% and 54.72% in Pension Funds for QoQ and YTD respectively. The added tax benefits introduced in VPS are playing a vital role in bringing good investments in retirement planning products especially in Islamic schemes.
Bond Funds
Bond Funds have witnessed an overall surge of 5.14% MoM. The major gainer was the money market category especially sovereign ones up by 9.58% MoM as opposed to income and aggressive income categories who were down by 0.21% and 0.60% MoM. On QoQ and YTD Bond Funds have showed a growth of 10.87% and impressive 93.30% respectively.
Equity Funds
Equity Funds saw a meager reduction of -1.09% MoM. On QoQ and YTD, they observed a growth of 2.72% and reduction of 0.83% respectively. Equity market remained volatile throughout the month due to Pak-US relationship issues.
Hybrid Funds
Hybrid Funds showed a growth of 3.17% MoM. On QoQ and YTD they have shown a decline of 3.01% and growth of 1.16% respectively. The reason may be the current market volatility which urged the investors and money managers to for short term perspectives and park their investments in fixed income and money market especially in sovereign instruments to avoid any market losses.
Special Funds
These funds have witnessed a decline of 5.78% MoM during the month. primarily this was the result of the underlying indices volatility during the month. However, on QoQ and YTD, they have shown a considerable decline of 22.82% and increase of 3.96% respectively. The investment strategies of these funds are designed for special segment of investors looking to take advantage of or track the particular segment of capital markets.
Pension Funds – Conventional vs. Islamic
Conventional Pension Funds have shown a growth of 8.04% MoM as compared of 4.21% growth in Islamic. On QoQ and YTD basis, conventional PFs have witnessed a growth of 22.16% and 49.98% as compared to the growth of 21.27% and 58.17% in Islamic PFs respectively. This indicates the inclination of investors towards Islamic savings options for retirement planning. This is the very positive sign for Islamic Financial Industry.
New Funds Launched in May’12
Payouts — FY12
The Payouts of the industry remained overall satisfactory in FY12. It has become the trend in the current industry to announce monthly payouts in fixed income and money market funds to attract more investors. The overall industry has earned an average return of 11.35% per annum and paid an average 5.54% dividend during 11 months FY12.
Head of Customer Services
In May’12, AMC industry has recorded a meager increase of 3.69% MoM and a record increase of 58.10% YTD in overall AUMs to reach 392.44 bn. The main reason was the year end closing is coming up for FY12 and most of the corporates are not considering their portfolios to be invested rather they want to keep them liquid as much as possible. Also banks have started to offer handsome rates heading to year end balance requirements. We shall se the cut-throat competition among banks and AMCs in coming month.
Conventional vs. Islamic
Besides overall position, the conventional AUMs were increased by 4.30% MoM as opposed to 0.01% decrease in Islamic AUMs. However, on QoQ and YTD basis conventional AUMs were increased by 8.70% and 62.26% as compared to increase of 6.24% and 36.08% in Islamic AUMs respectively which is very positive for the industry.
Mutual Funds vs. Pension Funds
Overall mutual funds have witnessed a growth of 3.67% MoM as compared to a growth of 5.74% in Pension Funds. On QoQ and YTD, mutual funds showed a growth of 8.28% and 58.12% as compared to the growth of 21.64% and 54.72% in Pension Funds for QoQ and YTD respectively. The added tax benefits introduced in VPS are playing a vital role in bringing good investments in retirement planning products especially in Islamic schemes.
Bond Funds
Bond Funds have witnessed an overall surge of 5.14% MoM. The major gainer was the money market category especially sovereign ones up by 9.58% MoM as opposed to income and aggressive income categories who were down by 0.21% and 0.60% MoM. On QoQ and YTD Bond Funds have showed a growth of 10.87% and impressive 93.30% respectively.
Equity Funds
Equity Funds saw a meager reduction of -1.09% MoM. On QoQ and YTD, they observed a growth of 2.72% and reduction of 0.83% respectively. Equity market remained volatile throughout the month due to Pak-US relationship issues.
Hybrid Funds
Hybrid Funds showed a growth of 3.17% MoM. On QoQ and YTD they have shown a decline of 3.01% and growth of 1.16% respectively. The reason may be the current market volatility which urged the investors and money managers to for short term perspectives and park their investments in fixed income and money market especially in sovereign instruments to avoid any market losses.
Special Funds
These funds have witnessed a decline of 5.78% MoM during the month. primarily this was the result of the underlying indices volatility during the month. However, on QoQ and YTD, they have shown a considerable decline of 22.82% and increase of 3.96% respectively. The investment strategies of these funds are designed for special segment of investors looking to take advantage of or track the particular segment of capital markets.
Pension Funds – Conventional vs. Islamic
Conventional Pension Funds have shown a growth of 8.04% MoM as compared of 4.21% growth in Islamic. On QoQ and YTD basis, conventional PFs have witnessed a growth of 22.16% and 49.98% as compared to the growth of 21.27% and 58.17% in Islamic PFs respectively. This indicates the inclination of investors towards Islamic savings options for retirement planning. This is the very positive sign for Islamic Financial Industry.
New Funds Launched in May’12
S. No.
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Fund Name
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AMC
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Category
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Date
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1.
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Askari Sovereign Yield Enhancer
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Askari Investments
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Income
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7-May-2012
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2.
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KSE Meezan Index Fund
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Al Meezan Investments
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Islamic Index Tracker
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28-May-2012
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3.
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ABL Capital Protected Fund
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ABL Asset Management
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Capital Protected
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31-May-2012
|
AMCs Review
On the AMCs front, ABL Asset Management has once again ranked at No. 1 with the highest 15.83% share of the industry with 62.11 bn of AUMs. It has witnessed a meager decline of 5.02% in AUMs on MoM but still impressively rose by 265.62% since Jul’11. Following ABL, UBL Fund Managers is once again the second largest in AUMs having 12.81% share and then NAFA, NIT and MCBAH having 12.08%, 11.44% and 11.39% share respectively in AUMs.
On MoM basis in terms of AUMs; the major gainers were NAFA 81.30% (1642.67% rise in NMMF), Alfalah GHP 76.40% and First Habib 17.36%; and the major losers were Askari -41.07% (-48.69% decline ASCF). However, since Jul’11, the major contributors in terms of AUMs are ABL AMC 265.62%, NAFA 177.62%, Lakson Investments 78.82%, HBL AM 75.63% and First Habib AM 69.95% rise in overall AUMs.
The Payouts of the industry remained overall satisfactory in FY12. It has become the trend in the current industry to announce monthly payouts in fixed income and money market funds to attract more investors. The overall industry has earned an average return of 11.35% per annum and paid an average 5.54% dividend during 11 months FY12.
Regards,
Mustansir ShabbarHead of Customer Services
Dawood Capital Management Limited
5B Lakson Square Building No. 1, Sarwar Shaheed Road, Karachi -74200
Tel
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+92 21 3562 1002
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Fax
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+92 21 3562 1010
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Cell
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+92 321 374 6282
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Email
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URL
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