By: Spectrum Securities (Private) Limited
Monthly Mutual Funds Report: During October’15, Net assets of mutual fund industry depicted an increase of 6%MoM (PKR28bn) to PKR497bn. According to data released by MUFAP, open end fund’s assets under management rose by PKR6bn similarly closed end funds and pension funds slightly surged by PKR1bn and PKR0.7bn respectively. Under open end fund categories, Equity funds which constitute of 27% of total AUMs’ size, improved by 7%MoM to PKR124bn as compared to PKR115bn in Sep’15; also Income fund size swell by 13%MoM to PKR117bn however, money market fund size remain unchanged to PKR66bn compared with Sep’15.
On monthly basis, average return of major equity funds’ was stood at 6.36% as benchmark KSE-100 index up by 6%MoM to 34,262pts on the back of stable economic outlook and gain in international oil prices. Furthermore Mutual funds remained net buyer, after two months of consecutive net selling (totaling ~USD30mn), as they bought USD43mn worth of equities in Oct’15; during FYTD16 (July’15-Oct’15) mutual funds invested USD37mn in equity market compared with the divestment of USD37mn during the same period last year.
Top picks for the mutual fund in October’15 were PSO, PKGS, ENGRO, LUCK, & HUBC with most of the Mutual Fund investment parked in Fertilizer, Cement, OMC, and Power sectors.