Thursday, October 21, 2010

Sixth Sense Update Industry Update: Banking Targets Reduce Industry AUM
Industry size marginally fell by 1% in the month of September to PKR171bn.
Faisal Zahid However; AUM within fund categories was not as stable. Income funds decreased
faisal.zahid@bmafs.com by 1%, Islamic income suffered a 2% decrease, Money Market funds decreased by
7% and Equity funds rose by 8% in Sep10.
Iffat Ibrahim Various Money Market funds suffered a fall this month on the back of banking
Iffat.ibrahim@bmafs.com targets for the quarter, while the Equity Fund category benefitted from a generous
increase in AUM of 8% in Sep10. It is quite evident that the outflow of money from
the industry to meet banking targets has predominately taken place in the money
market category. For the first time this financial year, money market funds witnessed
a decline in AUM. The Income Fund category has been witnessing a declining trend
in size as its AUM fell by 20% in CYTD and 5% in Sep10. Islamic Income Funds
witnessed a decline of 2% in AUM, as ASKARI IIF declined by 24% and UBL IIF fell
by 13% in Sep10.
Amongst the top ten AMCs, JS and NIT were the only AMCs to witness an increase
in AUM of 23% and 4% respectively. JS increased in size as the AMC converted a
closed end fund into open end in Sep10. NIT increased in size as it witnessed a net
inflow of investment in its Equity Fund and Govt Bond Fund. .
AMC AUM Analysis
AUM (PKR mn)
S.# Fund Manager Sep-10 Aug-10 MoM % YTD %
1 NIT 35,887 34,669 4% -1%
2 UBL Funds 19,538 20,317 -4% 5%
3 MCB 15,567 16,293 -4% 10%
4 Meezan 14,397 14,541 -1% 1%
5 NAFA 14,157 14,968 -5% 5%
6 AHI 10,740 10,954 -2% 1%
7 JS 9,926 8,061 23% -2%
8 ABL 9,179 11,081 -17% 5%
9 FAYSAL 8,924 9,608 -7% -1%
10 IGI 4,632 4,903 -6% 14%
11 Others 28,997 29,858 -3% 21%
Total 170,039 173,250 -2% 2%

AUM do not include Close End and Pension Funds

Source: Sixth Sense Research, Fund Manager Reports

In line with market expectations, Money Market Funds posted a decrease in AUM
at the end of Sep10. The low duration category posted a 7% decrease MoM, from
PKR44bn to PKR41bn. The largest decline was witnessed by BMA Empress Cash
Fund with a 24% decline to PKR1bn during the month. UBL LPF continues to be the
largest fund in this category at PKR11.6bn in Sep10.

BMA Financial Services Ltd. 801 Unitower, I.I.Chundrigar Road, Karachi 74000, Pakistan
For further queries, please contact: research@bmafs.com or call UAN: 111-262-111
1 All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the
time of publishing. All such information and opinions are subject to change without notice. All information is provided without warranty and
BMA Financial Services Limited makes no representation of any kind as to the accuracy or completeness of any information hereto
contained.
 Thursday, October 21, 2010

Islamic Money Market Funds ABL Islamic Cash Fund witnessed a 16% increase in
Sixth Sense Update fund size to PKR403mn in Sep10. MEEZAN CF makes up 95% of this category with
a size of PKR5,882mn as at Sep10.
Income Fund AUM continued its downward decline over the month, with a 5% fall
from PKR58.7bn in Aug10 to PKR55.9bn in Sep10. AHI MSF increased 14% in size
from PKR1.5bn to PKR1.7bn. The ABL Income suffered a further decrease in AUM
of 20% in the month of September
Islamic Income Funds AUM fell by 2% to PKR6.5n in Sep10. ASKARI IIF
witnessed the largest MoM decrease of 24% from PKR240mn in Aug10 to
PKR182mn in Sep10. This was followed by UBL IIF with a 13% decrease in AUM.
Equity Fund AUM rose by 8% from PKR38bn to PKR41bn over the month of
September. NIT was the only fund to witness a substantial increase in fund size of
4% to PKR31bn in Sep10. On the other hand AGHP AF’s AUM declined by 29%
from PKR190mn in Aug10 to PKR130mn in Sep10.

Aug10 AUM by Category Jul10 AUM by Category Number of Funds

Sep-10 Capital Aug-10 Fund of Fund Category Sep10 Aug10

Islamic Fund of
Protected Islamic Funds Islamic Money Market 2 2
Equity Funds
Islamic 3% Capital Equity 0%
3% 1%Islamic Islamic Islamic Index Tracker 2 2
Income Protected 3%
Cash Income Cash
4% 3%
4% 4% 4% Equity 15 15
Islamic Index Income 29 29
Asset Index Tracker
Tracker Islamic Balanced & Asset
Allocation 0% 13 13
0% Asset Allocation
1%
Allocation Money Market 14 14
Equity Equity
24% 1% 22% Islamic Asset Allocation 7 7
Money
Islamic Income 11 11
Market
24% Income Money Income Capital Protected 8 8
32% Market 34%
Islamic Equity 3 3
Balanced 25% Balanced
4% 4% Fund of Funds 1 1
Total 105 105
Source: Sixth Sense Research

BMA Financial Services Ltd. 801 Unitower, I.I.Chundrigar Road, Karachi 74000, Pakistan
For further queries, please contact: research@bmafs.com or call UAN: 111-262-111
2 All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the
time of publishing. All such information and opinions are subject to change without notice. All information is provided without warranty and
BMA Financial Services Limited makes no representation of any kind as to the accuracy or completeness of any information hereto
contained.
 Thursday, October 21, 2010

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Sixth Sense Update
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ƒ All information contained in this publication has been researched and compiled
from sources believed to be accurate and reliable at the time of publishing. All
such information and opinions are subject to change without notice. All
information is provided without warranty and BMA Financial Services Limited
makes no representation of any kind as to the accuracy or completeness of any
information hereto contained.

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BMA Financial Services Ltd. 801 Unitower, I.I.Chundrigar Road, Karachi 74000, Pakistan
For further queries, please contact: research@bmafs.com or call UAN: 111-262-111
3 All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the
time of publishing. All such information and opinions are subject to change without notice. All information is provided without warranty and
BMA Financial Services Limited makes no representation of any kind as to the accuracy or completeness of any information hereto
contained.