Nearly 7,300 equity funds investing in Asia and tracked by Lipper returned an average 17.9% in 2012.
In total, 42 mutual funds investing in Asia had made the top 100 cut. The list included 14 equity funds each from Pakistan and Thailand and nine from India, according to an analysis of data for 27,153 actively managed equity mutual funds tracked by Thomson Reuters Lipper globally.
The Asia-focused funds produced an average return of 61.5%, outperforming the top market in the region as well as the 18.6% advance in the MSCI’s broadest index of Asia-Pacific shares outside Japan.
Nearly 7,300 equity funds investing in Asia and tracked by Lipper returned an average 17.9% in 2012. By comparison, non-Asian funds gained 13.3%, the data showed.
The world’s top 100 equity fund’s list ranked Golden Arrow Selected Stock Fund fourth generating a return of 105.29% in 2012, Safeway Mutual Fund 18th with a return of 74.23%, NAFA Stock Fund 26th (69.4%), AKD Opportunity Fund 32nd (65.82%), JS Pension Savings Fund – Equity Sub Fund 42nd (62.59%), Asian Stocks Fund Limited 45th (61.07%), Atlas Stock Market Fund 47th (60.69%), JS Growth Fund 51st (60.43%), Pakistan Pension Fund – Equity Sub Fund 52nd (60.31%), Atlas Pension Islamic Fund 80th (57.61%), Atlas Pension Fund 90th (55.93%), Pakistan Islamic Pension 91st (55.70%), ABL Stock Fund 96th (54.39%) and JS Islamic Fund was ranked 99th generating a return of 54.07% during 2012.
Published in The Express Tribune, January 19th, 2013.
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@Tanweer Haral @Mehran Salik: Equity Funds returns are always absolute returns and not annualized (whcih are used for Moeny market/fixed income returns)
That's correct. Let me be more specific. Pakistan has been experiencing high inflation during the year in question. Depreciating currency value distorts the returns perception in this case. In any case, these funds and their returns sadly don't reflect any real economic fundamentals but rather represent a policy of easy money flowed by the central bank and hot money looking for to park capital in the short-term.
Its great to see the equities market of Pakistan doing good but unfortunately our economy and capital marekts move in two seperate directions. Most of the index is composed of businesses which have a hedge againt domestic concerns e.g E&P, Energy, Oil & Gas etc. Therefore the argument of comparing the performance of funds/equity markets viz-a-vz the economy is totally irrelevant. However we need to see is that India/Pakistan/Thailand all have low Gross savings as a % of GNI. Pakistan has declined in gross savings in the last 10 years which in 2010 was around 21% compared to 34% in India and 32% in Thailand. In 2001 Pakistan's gross saving was 22.4% of GNI. The other problem is currency in circulation which is currently around 32% of deposits v/s 18% in India. This money equating to aroun PKR 2trn in not even in the banking/savings chanel. No doubt that Pakistan's equities markets have performed extremely well and so have some of the fund mangers but the fact remains that the Pakistan's financial markets have not deepend itself and the capital markets have not been able to penetrate the way it should. On this premise that Pakistan's base of cpaital markets is extremely small in terms of capitalization, the funds managers have to focus on penetrating and widening the market. All in all credit should be given to the business of Pakistan as their shares have performed well despite all domestic odds. The fund managers were only able to catch up with the bull markets and some of them over performed as well.
@Tanweer Haral: What was rate of $$$ ten year ago in PKR
@Mehran Salik: Equity Funds returns are always absolute returns and not annualized (whcih are used for Moeny market/fixed income returns)
Two of the top 100 Funds i.e. Pakistan Pension Fund-Equity & Pakistan Islamic Pension Fund-Equity were among the top 100 Equity Funds in the world, besides we have taken up with Lippers to include Dynamic Stock Fund (which delivered 54.6% slightly higher return than ABL Stock Fund) in top 100. Just for info Pakistan Stock market Fund (PSM) has delivered total retrun of 989% in 10.8 years against KSE-100's total return of 803%, whcih means if someone had invested Rs.1 lac in PSM, his/he rmoney would have grown to 10 lac 89 thousands in 10.8 years. This clearly signifies the long term returns of equity funds managed professioanlly. Now people of our country can invest in these funds with as low as Rs.5,000/- and add a minimum of Rs.1,000/- and also earn tax rebates. Voluntary Pension schemes are another great avenue to craete wealth and retirement income through transparent & professioanlly managed investments along with tax advanatges.
Bachat ka Doosra Naam Arif Habib Investments (a subsidiary of MCB Bank Ltd)
Ms. Mehreen, for yoru info, stock funds are always reported on absolute returns and not annualized returns which are used for money market/fixed incoem funds. Lippers missed out reporting MCB Dynamic Stock Fund which deleivered 54.6% return in 2012. Two factors majorly contributed in stellar performances by Pak Equity Funds/market 1) Growth in corporate earnings, 2) Liquidity flows, 3) lower fianncial costs due to lower interest rates (even if in reality real inflation was much higher)
The article and the report cited above provide levels of percentage wise growth, which is misleading. A better representation would be the absolute value of investment by these funds and the corresponding returns on those investments.This so since original investments could might very well be considerably smaller compared to what the top equity funds of the world invest to generate returns.
How the stock run in bed economic condition,industries moved and closed and every bussiness man have no security of life.
Rrainbow follows the storm....... All focus should be directed to improve the security situation in the country, secondly my people of Pakistan - please elect leaders who have vision and are sincere to Pakistan (a measure of (in)sincerity can be judged from how much wealth has one stowed outside of Pakistan). There is immense amount of potential in the country, just because we have such a low base to start from. forget FDI, if the govt can deliver on improving the security situtaion, over 20mn expats will be the first to invest in the country (simply because they, more than anyone else, know how Paksitan operates and will be far more comfortable vis-a-vis a foreign investor). This will usher in a phase which will not be short of an 'economic boom'....and can sustain if not double digit growth rates, atleast very high single digit GDP growth rates for a number of years.
@A Punjabi: lol you surely don't know how things work? west is never going to bounce back since their economy is in dire straits! future is in Asia! ask any economist :) Things will only get better as peace will return & investment comes back, just wait watch.
@Dr.X: why.....and how?...mind to explain?
Am I missing something ????
IMF Predicts Dark Future and Pakistani funds perform very well on the same page of Tribune its amusing :)
How do you invest in these stock funds? The ROI on these funds is fantastic.
Pakistan Zindabaad !!!!
@Iyaz Shah: LOL
As a business major, I know this is seriously a very good news. For Pakistan: it is the worst of times but also the BEST of times. And our best is yet to come.
This shows Pakistan is better than India, Pakistan is great.
Sure! Come in the real world.
Who is Right! The Investors or the Economic and Financial Analysts portraying bleak picture of Pakistan's immediate economic future ?
A Peshawary
@CB: These funds will start underperforming once things will be normalised. Most of the hot money currently being deployed in stocks will go back to the real economy. And then stocks will move more in line with the overall economic performance of the country. cheers
Nothing special. Now that Qadri's show is over, look out for their names in the poorest performers next quarter.
and this is despite all the turmoil! imagine what will happen when peace will return in Pakistan as US prepares to leave Afghanistan, we have a bright future!