According to data compiled by the Mutual Funds Association of Pakistan (MUFAP), five funds in November underperformed the Karachi Stock Exchange (KSE)-100 Index, which is typically the benchmark for almost all conventional equity funds. The KSE-100 Index stood at 31,198 points at the end of November, up 2.7% from a month ago when the benchmark index equalled 30,376 points.
According to KASB Securities, positive macro developments, declining oil prices and growing expectations about the rapid delivery of economic reforms helped the index surge in spite of a drag from oil stocks.
The best-performing equity-based mutual fund during November was AKD Opportunity Fund, which posted an absolute monthly return of 7.71%. It was followed by JS Large Cap Fund (7.35%) and PICIC Stock Fund (6.58%).
Other equity funds that posted returns higher than the benchmark index in November were Lakson Equity Fund (6.18%), National Investment Unit Trust (5.84%), NAFA Stock Fund (5.64%), Pakistan Stock Market Fund (4.93%), Crosby Dragon Fund (4.47%), United Stock Advantage Fund (4.43%), ABL Stock Fund (4.29%), IGI Stock Fund (3.81%), First Capital Mutual Fund (3.72%), First Habib Stock Fund (3.66%), JS Growth Fund (3.54%), Alfalah GHP Alpha Fund (3.32%) and Atlas Stock Market Fund (3.21%).
In addition to the average daily traded value that jumped to a five-year high of $136 million, KASB Securities says heavy foreign inflows amounting to $36 million were also a reason for improved sentiments in November.
Conventional equity funds performing worse than the benchmark index in the fifth month of the current fiscal year were Askari Equity Fund (2.6%), Pakistan Strategic Allocation Fund (2.28%), JS Value Fund (2.18%) and HBL Stock Fund (2.16%).
The worst performing conventional equity fund in November was PICIC Energy Fund that posted a return of 0.32% on a month-on-month basis. The benchmark index has risen 5.21% since the beginning of the current fiscal year. National Investment Unit Trust has posted the highest return (15.9%) in absolute terms among all conventional mutual funds over the same period.
Islamic equity funds
MUFAP data shows that each of the nine Islamic equity funds posted positive month-on-month returns in November. The typical benchmark for Shariah-compliant equity funds, KSE Meezan Index (KMI-30), increased by 2.23% last month.
None of the Islamic equity funds underperformed their benchmark index in November. PICIC Islamic Stock Fund remained the best Shariah-compliant equity fund in November with an absolute return of 9.69%.
Other Islamic funds that outperformed their respective benchmark index were JS Islamic Fund (8%), HBL Islamic Stock Fund (5.35%), Meezan Islamic Fund (5.22%), PIML Islamic Equity Fund (4.66%), Al Meezan Mutual Fund (4.65%), Al Ameen Shariah Stock Fund (4.15%), ABL Islamic Stock Fund (3.78%) and Atlas Islamic Stock Fund (3.36%).
Published in The Express Tribune, December 2nd, 2014.
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