Mutual fund industry takes a rise of over 7pc in Q1 of 2017
The capital market of any state plays as an important role in the economic development and the progress of a country hence the accumulation and mobilization of a capital for development is mainly dependent on local savings and even inflows of overseas capital. Therefore, proper resource mobilization by the stock exchange is an effectual means for development in the entire world. In realization of this consideration, the Government of Pakistan has been trying utmost fairly to encourage more foreign investors to participate in the market, maintaining state-of-the-art technology such as automated trading and settlement practice, electronic fund clearance and reduce physical transfer of shares.
Many industry experts see Pakistan Stock Exchange (PSX) the capital market have emerged as a shining star of the country’s economy on the national economic landscape.
In Pakistan, JS Investments Limited (JSIL) is the oldest and one of the largest private sector Asset Management Companies (AMCs), with a broad range of mutual funds, Islamic funds; pension funds and separately managed accounts which are formed keeping in mind the customer requirements. JSIL is a member of MUFAP (Mutual Fund Association of Pakistan) and is cataloged on PSX. The management offers quality services, competitive returns and an opportunity for financier to have their savings secured.
It is mentioned in the company’s report that JSIL incurred a net loss of Rs1.68 million during the first three months closing March 31, 2017 explaining loss per share of Rs0.02. Assets Under Managements (AUMs) were Rs14.32 billion as on March 31, 2017 as against to Rs13.52 billion as on December 31, 2016 depicting a rise of 5.92 percent.
JSIL earned management remuneration from funds under management of Rs50.82 million as against to Rs37.11 million during the same period previous year recording a rise of 36.94 percent.
Administration and marketing expenses during the period under review rose by 12.17 percent to Rs71.40 million as against to Rs63.66 million during the same period previous year.
Further, JSIL plans to introduce a new fund in the coming time to improve investment solutions available to its clients and continue its elaborate attempts on brand building. No doubt JSIL is a strong and reliable institution for its shareholders to own; an efficient service provider and value creator for clients; an exciting and completing workplace for employees and participant worth reckoning for competitors.
ASSET MANAGEMENT COMPANIES
Asset Management Companies’ (AMCs) Industry experts revealed that for 1QFY2017, the domestic mutual fund industry experienced a rise of 7.03 percent in Assets Under Management’s (AUMs) growing to Rs678.05 billion from Rs633.51 billion from December last year. Market share for closed-ended funds in 1QFY2017 was 3.49 percent with a total AUM of Rs23.68 billion. Overall three new funds were introduced during this period. Furthermore experts also recorded that the Shariah-compliant asset allocation funds category registered strong growth in 1QFY2017 of 43.39 percent and total AUM’s for the segment stood Rs26.82 billion as of March 31, 2017 from a mere Rs18.71 billion in December 2016. Furthermore, AUM size for the conventional equity fund category stood at Rs163.56 billion, up by 4.67 percent. The capital protected funds category recorded a decline of 71.39 percent in the period.