The BMA Empress Cash Fund is a professionally managed cash fund, which aims to minimize risk, maximize liquidity and generate a competitive rate of return. This will be achieved by concentrating portfolio allocation in AA rated banks and short duration sovereign rated securities.


FY 2012 11.32 11.02
FY 2013 9.14 8.90
FY 2014 8.47 8.90
FY 2015 8.15 8.20
FY 2016 4.61 5.82


Fund TypeOpen End
Category Money Market Fund
Inception Date 12-Nov-09
Benchmark 3M Bank Rate
Dealing Days Monday-Friday
Cut‐off time 4:00 PM
Pricing Mechanism Forward
Management Fee** 0.75%
Front end Load upto 1%
Back End Load Nil
Fund Stability Rating AA+ (F) (JCR)
Risk Profile Low Risk
Listing KSE
Trustee MCBFSL
Auditor A. F. Fergusons & Co.
Transfer Agent Technology Trade
Legal Advisors KMS Law Associates
Management Quality Rating AM3
Expense Ratio* 2.00%
*This includes 0.22% of SECP Fee & Govt. Levy
**Management fee is reduced to 0% from 18 November 2016 for
a period of six month


The fund earned an annualized return of 7.40% during June’17 as against the benchmark of 5.21%, outperformed by 219bps. The FY17 return of the fund stood at 4.58% against the benchmark of 5.32%. This performance is net of management fee and all other expenses. Standard deviation of portfolio was on the higher side at 4.23%, mainly because of dividend adjustment to the NAV. Fund paid a divided of 0.46/unit during FY17. Portfolio duration was at 13 days while the weighted average maturity was also at 13 days. We have maintained investment in shorter tenor instruments and will continue so to avoid interest rate risk.



CPI in Jun’17 clocked in at 3.93%YoY against 5.02%YoY in the preceding month, taking the average inflation in FY17 to 4.16% against the 2.86% during FY16.  On sequential basis by CPI dropped by 0.41%MoM, mainly due to 0.20%MoM drop in food prices against the general expectations on the back of Ramadan, 15.32%MoM drop in Tobacco index following budgetary measures and drop in fuel prices. We believe the expected depreciation of Rupee might put some inflationary pressure, however contained somewhat by the decline in oil prices and food prices post Ramadan.

State Bank of Pakistan (SBP) has revised the 11MFY17 current account deficit figures to USD10.64 billion, which is USD1.71bn higher than the earlier reported figure of USD8.92bn. The 11MFY17 deficit is 2.1x wider than the revised figure of USD4.86bn during the same period last year. The widening CAD can mainly be attributed to growing trade deficit led by higher imports (both goods and services), which increased by 14% YoY.

Country’s foreign exchange reserves stood at USD21.4bn as of June 30, 2017. In the scenario of widening CAD and debt payments up to USD5.0-6.0bn during FY18 we see a high probability of sharp FX reserves drawdown and steep currency devaluation in FY18. PKR remained stable during the month and FY17, however, SBP has taken the move to depreciate exchange rate by 3.1% in the interbank market after a long period of stability. However, in recent development the finance minster has intervened and the rupee recovered sharply.  With REER standing at 127, we believe the depreciation is very much on the card.

In the PIB auction conducted during the month, bids worth Rs. 78.24bn were received, where much of the activity remained tilted towards the shorter tenor instrument of 3-yr PIB. The cut-off yields for 3-yr, 5-yr and 10-yr PIBs clocked in at 6.41%, 6.90% and 7.94% respectively whilst no bids were received in 20-yr tenor. The govt also raised 526.6bn in T-bills auction with no change in cut-off yields.



Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any Fund. All investments in mutual funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results.

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