By: Spectrum Securities Pakistan Private Limited
Monthly Mutual Fund Report: During August’15, mutual fund industry depicted an increase of 3%MoM to PKR473bn. According to data released by MUFAP, open end funds assets under management surged by PKR15bn however closed end & pension funds witnessed a meager decrease of PKR0.84bn &1.03bn respectively. Under open end fund categories, Equity funds which constitute of 28% of total AUMs’ size, declined by 4%MoM to PKR125bn; conversely income fund size recorded a sharp increase by 13%MoM to PKR100bn. On monthly basis, average return of major equity funds witnessed a decline of 1.76%MoM amid political uncertainty and global markets turmoil resulting in bearish spell at KSE, which plummeted by 2.84%MoM during the period under review. Thus, mutual fund investor has short their equity investments and parked their investment in Income funds as it was increased by PKR11.5bn. Furthermore, Mutual Funds remained net seller amounted to USD12mn in August’15 as compared to net buyer in July’15 of USD24mn. Top picks for the mutual fund in August’15 were PSO, ENGRO, PKGS, FFC & HUBC with most of the Mutual Fund investment parked in Oil & Gas, Chemical, Electricity and Cement sectors.