JCR-VIS Credit Rating Co Ltd has assessed the performance ranking of Safeway Mutual Fund Limited (SMFL) for the period ended June 30, 2005 at MFR 3-Star, which denotes 'average performance' vis-a-vis other closed-end funds.
JCR-VIS has also assessed the performance ranking of Asian Stocks Fund Limited (ASFL) for the same period at MFR 1-Star, which denotes 'weak performance' vis-a-vis other closed-end funds.
The investment advisor of SMFL is Safeway Fund Limited (SFL). The fund has been in operations for over ten years. During FY-2005, the paid-up capital of SMFL enhanced to Rs 453.75 million from Rs 165 million in FY-2004. The fund's assets are invested in listed equities with a significant portion of the investee companies being associated concerns.
ASFL is being managed by Asian Capital Management Limited (ACML). During FY-2004 the ownership of ACML was transferred from Pak-Libya Holding Company (Private) Limited to Crescent Standard Business Management (Private) Limited. The prime objective of ASFL is to provide superior results through investment in quality growth stocks. However, so far the fund has been unable to meet its stated objectives.
The peer group of the above mentioned funds comprises a total of 15 closed-end mutual funds. The maximum Time Weighted Return (TWR) within the peer group was 45 percent while the minimum TWR was negative 30 percent. The TWR for SMFL and ASFL were 29 percent and 3 percent respectively.