After showing nine percent contraction month-on-month in fund size during March (FY12) due to quarter end phenomenon, the industry recovered well in April with solid growth of 14 percent to reach at Rs 377 billion (USD4.18 billion).
Compared to Rs 30 billion redemption witnessed in March, an increase of Rs 46 billion was witnessed in mutual fund industry during last month, said a research report of InvestCap.
It said major growth was witnessed in income and money market fund categories, registering a growth of 24 percent and 22 percent, MoM, as compared to previous month decline of 16 percent MoM and 13 percent, respectively.
Contrary to the high volumes of redemption witnessed last month, fund size of ABL-GSF and ASK-CF appended by Rs15.4 billion and Rs 9.3 billion, respectively, showing huge amount of reinvestment in the funds after quarter-end factor.
An aerial view of AMC reveals that the major growth was witnessed in the size of the Askari Investment Management Ltd which grew by 70 percent MoM to stand at Rs23 billion followed by ABL Assets Management which increased by 43 percent MoM to reach at Rs65 billion.
On the other hand, major decline was witnessed in the AUM of KASB Funds which fell by 19 percent to reach at Rs 2.3 billion.
“The reason for decline was maturity of KASB Capital Protected Gold Fund (managed by KASB Funds) which matured on Mar-12 after completing its tenure,” viewed Mazhar A. Sabir, an analyst at InvestCap.
Category-wise performance: The size of the open-ended funds increased by 15 percent MoM to reach at Rs 354 billion while that of closed ended funds stood at Rs24 billion showing an appreciation of 14 percent MoM. Moreover, during FY12TD (Jul-Apr12), the industry has accumulated a decent growth of 51 percent.
The size of the income funds which posted the decline of 16 percent MoM (total size of Rs71 billion) in Mar-12, witnessed a solid recovery posting growth of 24 percent MoM to reach at Rs87 billion.
Major growth was witnessed in the size of ABL-GSF, which was up by 79 percent MoM and contributed 92 percent in the MoM growth of income funds category and 33 percent in overall appreciation of mutual fund industry. While on the accumulated basis, the size of the income funds category appreciated by solid 125 percent during FYTD (Jul-Apr12).
As far as returns of the income funds category is concerned, during the month of Apr-12, provisioning of non-performing investments have shrunk the annualized returns by 670bps to 4.7 percent.
“However, if we exclude DIF, which posted negative annualized return of 57.6 percent MoM in income fund category, the category has posted the annualized return of 7.3 percent MoM during Apr-12 but still under performed the fixed income segment of the capital market,” Sabir said.
However, he said, during FY12TD (Jul-Apr12) the income fund category earned annualized return of 9.6 percent.
During Apr-12, the money market funds was also manage to perform well on the back of 22 percent MoM appreciation in the fund size of the category which reached at Rs147 billion, as compared to 13 percent MoM decline was witnessed during Mar-12.
However on FYTD basis (Jul-Apr12), the category appreciated by 90 percent. The major growth was witnessed in the fund sizes of ASK-CF, PCF and ULPF which appreciated by 86 percent, 81 percent and 23 percent on MoM basis to reach at Rs20 billion, Rs4.3 billion and Rs32 billion respectively.
The money market funds’ return remained stable during the month of Apr-12 and posted average return of 10.8 percent on annualized basis, as compared to previous month return of 10.7 percent. During FY12TD (Jul-Apr12) the money market funds category earned annualized return of 11.4 percent whereas the highest return was posted by ASK-CF of 11.92 percent outperforming the category by 52bps.
During Apr-12, the fund size of equity funds category appreciated by 4 percent MoM to reach at Rs51 billion compared to Rs49 billion last month, while the size of the equity funds category posted the decline of 2 percent FY12TD (Jul-Apr12).
The equity funds category outperformed the stock market posting the return of 2 percent MoM in Apr-12 as compared to KSE-100 and KSE-30 index returns of 1.7 percent and 1.1 percent respectively.
Highest return was earned by AKDOPF posting 6.7 percent during Apr-12 while also outperforming the KSE100 index return by heavy margin of 5 percent.
As a result of highest returns in equity funds category during last 3 consecutive months, AKDOPF has been ranked No.1 slot return-wise in equity funds category with return of 32.1 percent FY12TD (Jul-Apr12) as compared to category average return of 14.5 percent and KSE100 and KSE30 index return of 12.0 percent and 5.8 percent respectively during the same period.
