During first six months of 2012, the mutual funds (MFs) industry in Pakistan showed remarkable growth. But in July it showed slight sluggish movement and declined 1 per cent month-on-month (MoM) to touch Rs375 billion, as compared to Rs379 billion, according to an InvestCap research note. Open-ended funds’ size grew 1 per cent MoM to reach Rs351 billion while closed-ended funds declined by 3 per cent MoM to close at Rs23 billion.
During the month, the income funds category grew 23 per cent MoM, on the back of massive growth in the size of the ABL-Government Securities Fund, which grew 58 per cent MoM to reach Rs55billion.
On the other hand, the money market funds category of open-ended funds declined 14 per cent MoM, while the fund of funds category contracted 42 per cent MoM. During the first seven months of this calendar year (7MCY12), the mutual funds industry has witnessed decent overall growth of 31 per cent, after clocking in at Rs289 billion in December 2011.
After recording remarkable growth in fiscal 2012 -during which the income funds category grew 124 per cent year-on-year -the said category achieved another milestone and crossed the Rs100 billion mark in the first month of fiscal 2013.
The category holds Rs107 billion in total assets currently, showing growth of 23 per cent MoM. The funds posted average annualised return of 9.5 per cent in July, 1.8 per cent lower than during the previous months return of 11.3 per cent.
The money market funds category -which grew 95 per cent during fiscal 2012 -recorded a decline of 22 per cent MoM in July to close with Rs129 billion in total assets, as compared to Rs150 billion in June.
During 7MCY12, however, the category has grown 23 per cent. The money market funds category earned average annualised return of 11.7 per cent in July, improved by 60 basis points against the previous month’s return of 11.1 per cent.
In July, the equity funds category remained uninspired and declined by 2 per cent MoM to reach Rs51 billion, despite a 5.6 per cent appreciation witnessed in the KSE-100 index. During 7MCY12, the category appreciated by 16 per cent calendar-year-to-date, as against KSE-100 index appreciation of 28 per cent during the same period.
The category earned returns of 5.6 per cent in July, with the highest return earned by NAFA Stock Fund at 8.6 per cent, as against the benchmark KSE-100 index return of 5.6 per cent.
Meanwhile, Islamabad Stock Exchange (ISE) has completed the scheme of Corporatisation, Demutualisation and Integration Act 2012 by transferring shares equally among the approved 121 initial shareholders of the Exchange.