After commencing 2012 on a rising note as January and February recorded 19 % and 12% month-in-month (MoM) growth, , the size of the Pakistan’s mutual funds industry recorded a decline of 8 % month on month during March 12, settling at Rs33,000 Crore down from Rs 36,000 Crore a month-ago.
The major fall causing overall industry decline was witnessed in the size of income funds and money market funds categories, which went down 16% MoM and 13 % MoM, respectively.
Based on asset manager’s AUM (Assets Under management) in March 2012, the major decline was witnessed in the size of ABL Asset Management Company’s AUM, which fell by an absolute amount of Rs 1800 Crore, down 28.3 percent MoM, followed by Askari Investment Management’s AUM descending by Rs 740 Crore, down 35.5 percent MoM and UBL Fund Managers’ AUM slipping by Rs 340 Crore.
Out of the industry’s total decline of Rs 3,000 Crore in March, almost Rs 28,900 Crore, which is 97% of the industry decline was contributed by these three Asset Management Companies in March. Excluding these, industry size showed a marginal decline of around Rs 980 million or 0.3% MoM in March.
The decline in industry size was not unusual and believed to be consistent with the ‘quarter-end factor’ when banks/financial institutions pullout or redeem their investments to shape-up their balance sheet and returns before the period end.
As far as category-wise performance is concerned, the size of the open-end funds rose 15% on quarterly basis in January to March, reaching Rs 30,700 Crore while that of the closed-end funds stood at Rs 2,300 Crore, showing an appreciation of 17% on quarterly basis.
In nine month of current financial year 2011-12 (Jul-Mar12), the industry now stood with a huge cumulative growth of 32%, as per statistics made available to EconomyAge.
With additional input from Mr Ali Ahmad
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