Money Market Funds In Pakistan
Shaping Investments
Current Running Cash Utilization
What do you do with your money?
 Place Funds in TDRs / Current account of good quality
Scheduled Banks
 Challenging
Ch ll
i to get a combination
bi i off rate and
d ready
d li
liquidity
idi
and credit quality at the same time
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Investment Scenario
At least AA Rated
Banks
AAA Rated
Govt. Guaranteed
Securities
e.g. 3/6 months T-Bills
All investment options under one umbrella
An open end money market
scheme
Money Market Fund
Shaping Investments
Benefits of investing in Money Market Fund
 Better
B tt R
Returns
t
 Risk of Government T-Bills or AA rated Banks or Better
 Liquidity (Daily Entry / Exit)
 Capital gain made on redemption of units is taxable at the following rates:
Shaping Investments
Average Money Market Funds – Consistent Return
16.0%
14.3%
13.9%
15.6%
14.0%
13.5%
15.9%
14.2%
13.8%
16.2%
14.5%
14.0%
16.2%
14.5%
12%
10%
10.4%
10.1%
10.3%
4%
10.5%
6%
10.5%
8%
10.5%
Annualized Returns
14%
14.0%
14.0%
16%
14.5%
18%
16.2%
Money Market Funds Average Returns
2%
0%
YTD
Annualized Return
MTD
7-Day
30-Day
90-Day
180-Day
If holding is realized within 6 months (25% Tax benefit)
If holding is realized within an year but after 6 months (27.5% tax benefit)
If holding is realized after one year (35% Tax benefit)
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Money Market Funds AUM Growth
Money Market Funds AUM
45.0
40.0
35.0
AU
UM in Billion Rs
30 0
30.0
25.0
20.0
37.9
15.0
28.4
30.6
29.9
Feb-10
Mar-10
40.8
38.2
20.3
10.0
16.5
5.0
10.0
12.3
0.0
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Apr-10
May-10
Jun-10
Shaping Investments
11-May-10
12
11-A
Apr-10
Mar-10
11-M
10
11-Feb-10
11-J an-10
8
11-Dec-09
11-Nov-09
6
11-O
Oct-09
11-Se
ep-09
11-Au
ug-09
4
11-JJul-09
2
11-J un-09
11-May-09
# of Money M
Market Funds
12 Money Market Funds Launched in Last 12 Months
Growing
g Market for Money
y Market Funds
14
13
12
11
10
9
8
6
7
5
4
3
2
0
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Money Market Funds Average Portfolio Jun-2010
Average Money Market Portfolio Jun-2010
TDRs
16.3%
Placements
5.9%
COI
1.3%
Money Market
0.7%
Cash
14.0%
Other
0.2%
T Bills
61.6%
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Money Market Funds Average Credit Quality Jun-2010
A
Average
C
Credit
dit Q
Quality
lit Jun-2010
J
2010
AA+
13%
NR
0%
AA
21%
AA2%
AAA & Govt
Sect.
64%
Shaping Investments
N
Ca
sh
U
BL
Li
qu
id
M
Pl
an
us
ag
Fu
G
e
m
ov
nd
e
t.
nt
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cu
pt
im
rit
y
iz
er
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id
ee
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z
ks
an
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on
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as
M
h
on
Fu
ey
nd
M
a
rk
Pa
et
ki
Fu
st
an
nd
C
as
h
Fu
At
JS
nd
la
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s
as
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h
on
As
Fu
ey
ka
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ar
ke
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re
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un
ig
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as
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pr
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s
IG
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as
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h
on
Fu
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nd
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fa
a
la
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h
et
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Fu
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P
nd
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as
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KA
Fu
SB
nd
C
as
h
Fu
nd
B
AF
A
M
C
AUM in Billion Rs.
A
Money Market Funds – Net Assets
9.0
8.0
7.8
7.7
Money
y Market Funds AUM As of Jun-2010
7.0
6.0
4.0
3.0
20
2.0
1.0
5.8
5.2
5.0
3.0
2.1
14
1.4
14
1.4
1.2
0.8
0.8
0.6
0.6
-
AUM of MCB-CMOP as of 22 July 2010
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Money Market Funds – %age contribution in
total AUM of different AMC’s
90.0%
83.8%
80.0%
70.3%
70.0%
%
%age
60.0%
53.7% 52.6%
50.0%
43.2%
41.9%
40.0%
38 2% 36
38.2%
36.8%
8% 35.8%
30.0%
19.9% 19.6% 18.8%
20.0%
14.0%
KA
ASB
Alfa
alah
Atlas
A
ezan
Al Mee
As kari
UBL
U
NA
AFA
MCB
M
JS Abam
mco
AUM of MCB-CMOP as of 22 July 2010
abib
Arif Ha
BMA
Lakkson
0.0%
IGI
10.0%
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Money Market Funds Managed 30 Percent of
U.S. Businesses' Short-Term Assets* in 2009
Percent, year-end, 1995–2009
35
29
30
29
27
23
24
23
21
17
13
1995
18
19
1999
2000
14
12
1996
1997
1998
2001
2002
2003
2004
2005
2006
2007
2008
2009
*U.S. nonfinancial businesses' short-term assets consist of foreign deposits, checkable
deposits, time and savings deposits, money market funds, repurchase agreements, and
commercial paper.
Sources: Investment Company Institute and Federal Reserve Board
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The U.S.
U S Had the World's Largest Mutual Fund
Market
Percentage of total net assets
assets, year-end 2009
Note: Components may not add to 100 percent because of rounding.
Sources: Investment Company Institute, European Fund and Asset Management
Association, and other national mutual fund associations
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Thank You
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