Money Market Review: First Habib Cash Funds give best returns for your cash

News Image

By MG News | November 13, 2019 at 10:23 AM GMT+05:00

0:00

November 13, 2019 (MLN):  Once again the money market funds have exhibited extraordinarily performance in October 2019 on the account of low-risk investment with the goal of earning interest and high liquidity.  All funds generated highly positive returns.

To compare the performance of funds, they are assessed against an average benchmark rate; 70% 3-month PKRV and 30% 3-month average deposit rates of 3 ‘AA’ rated schedule banks as selected by MUFAP which has been set at 12.75% for the October 2019.

On a side note, the three ‘AA’ rated scheduled banks selected by the Mutual Funds Association of Pakistan (MUFAP) are Sindh Bank, Faysal Bank and Bank of Punjab.

A performance chart put together by Mettis Global shows that all twenty-one money market funds recorded their annual return within a range of 12.42%-14.30%.

\"\"

According to records maintained by Mettis Global Private Limited, 16 out of 21 money market mutual funds surpassed the benchmark rate, while only one, missed it out by a meagre margin.  First Habib Cash Fund stood on top of the pyramid amongst all other money market funds during October 2019.

First Habib Cash Fund (FHCF), an open-ended fund which gave an annual return of 14.30% as its net asset value (NAV) hopped from Rs.101.26 per share to Rs.101.40 per share.

The eight-year-old FHCF carries an extremely low-risk profile and has had its fund’s stability rated at ‘AA(f)+’ by VIS, while Pakistan Credit Rating Agency (PACRA) rated its asset management at ‘AM3+’, as of December 2018.

The funds’ liquidity profile is supported by a high proportion of total assets in cash in addition to commercial papers. The funds gave a payout of Rs. 1.07 per unit on Oct 1, 2019.

Positioned next with 13.37% returns is Atlas Money Market Fund (ATLASMMF) whose NAV dropped from Rs.505 per share to Rs.504.64 per share. The investments of this fund are placed in T-bills and cash, as per data on Mettis Global.

Having missed the second position by a fraction stood Lakson Money Market Fund (LAKSONMMF) with 13.35% annual return. Its NAV increased from Rs.101.74 per share in last month to Rs.101.74 this October. With less risk, a significant portfolio investment of LAKSONMMF is observed in the form of commercial papers, placement with banks & DFI in addition to cash.

Speaking of payouts, Atlas Money Market Fund (ATLASMMF) gave the largest total payout of Rs.6.3 per unit on Oct 25, 2019, whereas JS Cash Fund (JSCF) paid Rs.1.1 per unit on Oct 5, 2019.

\"\"

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 129,492.35
71.77M
1.01%
1292.93
ALLSHR 80,570.07
224.22M
0.98%
782.45
KSE30 39,556.31
26.84M
1.15%
451.32
KMI30 188,460.51
25.55M
0.83%
1544.90
KMIALLSHR 54,583.58
99.85M
0.70%
381.70
BKTi 34,251.33
13.34M
2.31%
774.65
OGTi 28,086.28
2.21M
0.44%
123.70
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 106,650.00 106,660.00
105,440.00
900.00
0.85%
BRENT CRUDE 67.20 67.29
67.05
0.09
0.13%
RICHARDS BAY COAL MONTHLY 97.50 97.50
97.50
0.70
0.72%
ROTTERDAM COAL MONTHLY 103.80 103.80
103.80
-3.45
-3.22%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 65.50 65.65
65.34
0.05
0.08%
SUGAR #11 WORLD 15.70 16.21
15.55
-0.50
-3.09%

Chart of the Day


Latest News
July 02, 2025 at 10:08 AM GMT+05:00

PSX Opening Bell: Upbeat and Unstoppable


July 02, 2025 at 09:53 AM GMT+05:00

Govt policy shift lowers cost of imported vehicles


July 02, 2025 at 09:22 AM GMT+05:00

Asia markets waver while Singapore stocks soar


July 02, 2025 at 06:01 AM GMT+05:00

MG Morning Breeze: Updates to Skim before Market



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg