Equity Funds Quarterly Review: ABL Stock Funds ace by a sliver

April 9, 2019 (MLN): As the ongoing fiscal year (FY19) completes its third quarter (Jan – Mar) last month, a performance report on conventional equity funds against capital market is in order.

Equity Funds in spotlight

ABL Stock Funds emerged as the best performing fund among those that invest in the conventional equity market, going by data provided by Mettis Global Private Limited. The fund’s Net Asset Value (NAV) observed an impressive growth of 6.7% this quarter adding 83 paisa to its value.

Except for 6 funds, all the remaining 21 recorded growths in their respective NAV’s, while 10 funds’ returns exceeded the growth in KSE - 100 index (4.3%), as they all recorded growth of 5% or more for the period.

After ABL Stock Fund, the Alfalah GHP Alpha fund and Alfalah GHP Stock fund, both realized a 6.6% growth in NAV as the Alpha fund recorded growth of Rs.3.92 while the Stock fund recorded growth of Rs.6.92.

HBL Stock Fund followed next in line with 6.55% rise in NAV.

While on the subject, it would be beneficial to cast light on the ups and downs of capital markets to better understand the outlook on funds.

Capital markets or capital chaos?

The conventional capital markets performed pleasantly in the first three months of 2019, as is evident from the quarterly change in KSE – 100 index which marked at a net rise of over 1,500 points or 4.3%.

The benchmark index ascended steadily in January 2019 when it played off positive triggers on account of financial support from friendly countries and hopes associated with the then approaching mini budget announcement, which was expected to bring along glad tidings for the multitude.

The index exhibited an extraordinary performance by gaining above 4,500 points during this period.

Unfortunately, the merriment on trading floors was short lived as the road to the summit took a sharp U turn in the first week of February 2019, thereon leading the index southwards.

Rolling down a rather steep and stony path, the index lost over around 3,000 points in the two months that followed.

Aspects that turned the index red included extreme tension on the Indo-Pak border which constantly pointed towards a potential war outbreak, FATF’s unsatisfactory opinion on government’s effort to comply with AML/CFT regulations, and panic caused by Moody’s downgrade of Pakistani banks outlook from stable to negative.

Fortunately on the bright side, the index’s exemplary performance in January turned out to be the saving grace for bourse as it concluded the net change in indices on the greener side.

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