Equity Funds Review: AKD Opportunity Fund raises the bar with its exemplary performance

December 18, 2019 (MLN): The month of November brought further glees for the economy of Pakistan, as the country witnessed additional improvement in a number of economic indicators, including the capital market.

The KSE-100 index gained nearly 5,083 points during the month of November and settled at 39,287, i.e. up by 14.86%, as compared to the previous month’s closing of 34,203 points. It may be worthwhile to mention that this is the highest gain for the benchmark index in the last six years, and the third consecutive month wherein it has landed in the green zone.

A lot of factors contributed in helping the benchmark index mark another victor for itself, including the successful review by the International Monetary Fund, major improvement in economic indicators, and stability in the political environment of the country.

However, the performance of Equity Mutual Funds failed to catch up with that of the Equity market, as the overall returns on these funds barely matched the yield generated by the KSE-100 index. This judgment can be further validated by the fact that only 10 out of the 31 companies managed to surpass the benchmark rate of 14.86%, while the rest lagged behind by substantial margins.

Going by the data gathered by Mettis Global, AKD Opportunity Fund (AKDOF) managed to grab the top spot, as its Net Asset Value (NAV) improved from Rs. 59.92 per share last month to Rs. 73.93 per share this month, signifying a return of 23.38%. With a high-risk profile and a credit rating of AM3++ by PACRA, AKDOF holds most of its investments in the form of equities and cash.

The performance of National Investment Unit Trust (NIT-NI(U)T) landed it in the second-best sport, as its returns for the period stood at 17.91%, following a jump in its NAV from Rs. 52.92 per share last month to Rs. 62.4 per share this month. Having a moderate risk profile and credit rating of AM2++ by PACRA, the investments of (NIT-NI(U)T) were placed with equities, banks and DFIs.

Golden Arrow Stock Fund (AKDGASF) gave returns of 17.55% over the month, as its NAV increased from Rs. 7.1 to Rs. 8.34 per share. The investments of this fund were also placed in equities and cash.

Apart from the above-stated equity funds, the performance of AWT Stock Fund, HBL Investment Fund, and HBL Growth Fund were also commendable, as they generated returns of 17.15%, 16.81%, and 16.54% respectively.

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