Lackluster performance of Islamic Money Market Fund in Sept 11
By Riffat Mughal KARACHI: Islamic Money Market Funds and Islamic Cash Funds performed lackluster in the month of September, 2011 as the net assets of the category decreased by 9.83 percent Month-on-Month (MoM) to Rs 6,892.176 million. The previous month, recorded a surge in net asset by 9.15 percent MoM to Rs 7,643.277 million. This particular category includes three Islamic Money Market and Islamic Cash Funds including Meezan Cash Fund, ABL Islamic Cash Fund and HBL Islamic Money Market Fund. The weighted average annualized return of all the three funds was 11.57 percent for September, 2011 which declined from 11.63 percent reported in August, 2011. Limited activity was seen in the sukuk market during the month. Due to the fact that market expected further cut in the rates, investors expected lower return on money market funds for the time being and some of them may have shifted to equity funds in search of higher returns on their investments. Meezan Cas...