It wasn just the direct equity investors who enjoyed the soaring performance of local bourse in previous months. Investors with "indirect" exposure in the equity market--particularly the mutual fund investors--also appeared to have hit the jackpot, as evident in their 1H FY14 financials.
In this regard, the performance of PICIC Growth Fund (PGF) deserves applause as it posted a sizeable rise of over 60 percent year on year in its net profitability in 1H FY14.
This growth primarily came on the back of PGFs total income that clocked-in at Rs1.15 billion in the aforementioned period. That shows substantial rise of 60 percent year on year, thanks to the "capital gain on sale of investments" which remained the key driver.
The "capital gain on sale of net investments" registered a phenomenal increase of 100 percent during 1H FY14 to stand at Rs586 million. By the same token, dividend income, unrealized appreciation on re-measurement of investments and profit on bank deposits surged by 23 percent, 39 percent and 76 percent, respectively.
On the expenses front, the operating expenses marked an upsurge of 55 percent to stand at Rs178 million in 1H FY14. But on the positive side, operating expenses consumed about 15 percent of total income in 1H FY14, lower than 16 percent in the same period of last year. This improvement owes to the overwhelming growth in "capital gain on sale of net investments".
PGF also booked a provisioning expense worth Rs19 million for Workers Welfare Fund which was 61 percent higher on a year-on-year basis.
Thanks to the gains highlighted above, PGFs net profit grew from Rs594 million in 1H FY13 to Rs957 million 1H FY14, reflecting a substantial hike of 61 percent year on year.
As positive sentiments on the local bourse are still intact and the analyst community expects market to further soar to new highs, equity mutual funds have the opportunity to score even better in the coming months.
==================================================================
PICIC GROWTH FUND - FINANCIAL HIGHLIGHTS
==================================================================
Rs (thousand) 1HFY13 1HFY14 chg
==================================================================
Income 720,929 1,154,449 60%
Operating expenses 114,633 178,008 55%
Net profit from operating activities 606,296 976,441 61%
Provision for Workers Welfare Fund 12,126 19,529 61%
Net profit after taxation 594,170 956,912 61%
Earnings per certificate (Rs.)
With net realisation on
re-measurement of investments 2.10 3.38
Without net realisation
on re-measurement of investments 1.34 2.33
------------------------------------------------------------------
Source: KSE notice
==================================================================
Comments
Comments are closed.