| |
FUND SIZE Rs. (in mlns)
|
|
Type of Fund
|
Dec 2011
|
Jan 2012
|
Change
|
|
Income Funds
|
|
60,122
|
-2.30%
|
| Islamic Income Funds |
28,891
|
29,073
|
0.63% |
| Money Market |
104,913
|
125,245
|
19.38%
|
| Islamic Money Market |
7,661
|
7,801
|
1.82% |
|
Equity Funds / Index Tracker
|
45,387
|
48,321
|
6.46%
|
| Islamic Equity Funds |
7,185
|
7,806
|
8.64% |
|
Balanced Funds
|
2,944
|
3,109
|
5.60%
|
| Islamic Balanced Funds |
701
|
728
|
3.85% |
|
Asset Allocation Funds
|
3,109
|
3,194
|
2.75% |
|
Islamic Asset Allocation Funds
|
555
|
568
|
2.40%
|
|
Capital Protected Funds
|
2,271
|
2,286
|
0.63%
|
| Islamic Capital Protected Funds |
408 |
419 |
2.70% |
|
Pension Funds
|
658
|
784
|
19.09%
|
| Islamic Pension Funds |
989 |
1127 |
13.96% |
|
Total Open-End Funds
|
267,211
|
290,584
|
8.75%
|
|
Total Closed-End Funds
|
18,777
|
20,326
|
8.25%
|
|
Total Funds
|
285,989
|
310,910 |
8.71%
|
Introduction
The origin of the Mutual Fund Industry (MFI) in Pakistan dates back to the 60’s. National Investment Trust Limited a public sector entity, established in 1962, launched the first open end fund, NIT, in Pakistan. This was followed with the setting up of Investment Corporation of Pakistan in 1966, a state controlled Development Finance Institution which launched and managed 26 closed end mutual funds. It was in the 70’s that the private sector was allowed to launch close end funds and it was not until the 90’s, with the establishment of The Mutual Fund Association of Pakistan (MUFAP) in 1996, a trade body of the asset management companies, that the private sector was allowed to launch open end funds as well. MUFAP was formally licensed, in 2001, as a public limited company (by guarantee) under Section 42 of the Companies Ordinance 1984.
The Securities and Exchange Commission of Pakistan (SECP) is the regulator of the MFI in Pakistan and has taken various steps for the development of this industry. Asset Management Companies are formed under the Non-Banking Finance Companies & Notified Entities Regulations (NBFC) 2008. In view of changing market conditions and to bring uniformity in comparison of different funds to enable investors to make informed decisions, the SECP in March 2009 revised the categories of open-end mutual funds on the basis of asset classes and risk profile.
The growth of the MFI has not only driven by the performance of the stock market but also by the increasing investors appetite, particularly of financial institutions and corporates, for new innovative investment products that offered optimal risk return rewards.
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