Recently BR Research met with Umber Tanya Ansari of UBL Fund Manager to discuss the current situation of the mutual fund industry. Umber joined UBL Funds in 2010 in the Corporate & Institutional Investments Department, growing the corporate business of the company, developing corporate communication material, and handling the entire distribution portfolio. Before taking up her new role as Head of Marketing, Umber was Regional Head of Corporate & Institutional Investments, focusing on sales and distribution in the South Region.

<B>BR Research: Please tell us about UBL Fund Managers.</B>

<B>Umber Tanya Ansari:</B> UBL Fund Managers is one of the leading asset management companies of Pakistan, which was established in 2001. We have about 75 billion rupees under management. Our product range includes 19 open-end mutual funds, 2 voluntary pension schemes and 9 administrative plans for investment right now, and we have planned to increase this number by year-end.

In addition to conventional funds, we also have Islamic funds division, which goes by the name of Al-Ameen Funds; the fund this year announced a compound growth of 530 percent in the last three calendar years.

Our management has been assigned the highest quality rating in the industry, which is AM2++ by JCR-VIS Credit rating company. This year, UBL Funds also received Management Association of Pakistan (MAP) Corporate Excellence Award in the financial sector for the second year running.

<B>BRR: What is the general situation of the Mutual Fund Industry in terms of growth?</B>

<B>UTA:</B> The industry is growing but at a much slower pace than anticipated. Those who have the information and have been investing in mutual funds over the years, are the ones regularly putting money in and have made good returns. The customer base is not increasing but volume per customer is going up.

The industry is definitely positioned to grow, and every stakeholder should realise the amount of potential and untapped market that is out there. Through the platform of MUFAP (Mutual Funds Association of Pakistan) there seems to be consensus building among all asset management companies that a collective effort is required to get out of the current limbo.

<B>BRR: Why do you think there is lack of awareness amongst general public regarding mutual funds?</B>

<B>UTA:</B> Overall, the concept of saving is missing in our country. The battle starts with educating the masses about how savings can help them in future, and from there you need to tell them of different avenues of savings and investment. Once we develop a savings culture in our society, you would automatically see more people turning towards mutual funds.

<B>BRR: How do you use technology to increase awareness and customer base?</B>

<B>UTA:</B> We were the first asset management company in Pakistan which introduced mobile app for mutual fund management. Our Smart Savings Application also won the PASHA ICT Awards 2015 for 'Best in Service Innovation'. The mobile application especially attracts tech savvy people and those who do not have access to a computer and want information regarding investments.

We are also working with a mobile payment service to reach out to the rural population and technology is our main tool for that. The rural market is huge, and it is about time that people are given a viable option to invest their savings in a secure way.

Moreover, we are also very active on social media for which we have dedicated team and our website which includes blogs as well, which get updated regularly. Additionally, we make videos to make sure that our message gets across from every possible avenue.

<B>BRR: Does a rising equity market help in attracting more customers?</B>

<B>UTA:</B> Yes, the sales pitch gets easier when the market is performing well. But we always inform our customers of the risks involved and provide them with all the basic material so that they are able make an informed decision.

<B>BRR: Do you recommend different type of funds according to investor profile. How do you convey the risk aspect of investing?</B>

<B>UTA:</B> Every customer is different and for that we first assess the overall situation of the customer. Investor's age, income, family and risk tolerance; everything is considered and then a recommendation is given. Younger people are advised to get into equity funds while those forties are advised to take a safer approach with asset allocation and fixed income funds. We offer lifecycle allocation as well, which changes automatically with customer's age.

With our fixed income funds, investors get access to corporate debt like Term Finance Certificate, which enables them to invest in companies in an alternate manner compared to equity market.

For equity funds, we tell our customers to have at least have a three-year time horizon if not five years. It is very important to have long term goals with your investment and not look at the movement of the market on a daily basis.

We also have very good voluntary pension funds, which we recommend to people and so far they worked out really well for our customers. It has provided them with a much ended cushion after retirement.

The best part about these pension schemes is that they are in customer's name, and even if they are switching jobs, they don't lose control over their investment.

<B>BRR: What is your view on equity market and the overall economy?</B>

<B>UTA:</B> We are very bullish on the equity market, and we see it performing really well in the future. A lot of positive things are happening in Pakistan right now like CPEC. Inclusion into MSCI would again put our market into the international limelight, which it deserves. We have some of the best performing companies in the region, and these companies would get their due recognition once we get upgraded.

Overall, we can see that consumer spending has picked up, and you can sense optimism after many years in Pakistan.