Mena Asset Management Report
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Markaz Sector Report MENA Asset Management Trends & Issues in MENA Asset Management Industry Research Highlights: Analyzing the state of MENA asset management industry in terms of fund performance, market size, regulations and challenges.
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Assets under management in the investment industry has been on the decline over the years. Ensuing market volatility and increased political risk has kept risk-averse clients away from the market. Smaller funds sizes and evolving regulations which vary from country to country have constrained business growth. Amidst this scenario, the report discusses the key issues that confront MENA Asset Management Industry and puts forth policy actions which would help establish growth in the Industry for the long run. In this report we have analysed the current state of MENA asset management industry in terms of industry architecture, market structure and fund performance. In-depth fund performance analysis based on geographical focus including alpha generated by the fund against respective benchmark and top fund managers based on AUMs being managed have been discussed. The report also highlights the regulatory developments and challenges being faced by the industry players in MENA region. For Full report, visit: http://www.e-marmore.com/offerstores/mena-asset-management-report/66/1/2204/
Transcript of Mena Asset Management Report
Markaz Sector Report
MENA Asset Management
Trends & Issues in MENA Asset Management Industry
Research Highlights:
Analyzing the state of MENA asset management industry in terms of fund performance, market size, regulations and challenges.
MARKAZ SECTOR RESEARCH
MENA Asset Management – December 2013
Kuwait Financial Centre K.P.S.C. “Markaz” 2
Disclaimer This report has been prepared and issued by Kuwait Financial Centre K.P.S.C (Markaz), which is regulated by the Capital Markets Authority and the Central Bank of Kuwait. The report is owned by Markaz and is privileged and proprietary and is subject to copyrights. Sale of any copies of this report is strictly prohibited. This report cannot be quoted without the prior written consent of Markaz. . Any user after obtaining Markaz permission to use this report must clearly mention the source as “Markaz “. The report is intended to be circulated for general information only and should not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy in any jurisdiction. The information and statistical data herein have been obtained from sources we believe to be reliable but no representation or warranty, expressed or implied, is made that such information and data is accurate or complete, and therefore should not be relied upon as such. Opinions, estimates and projections in this report constitute the current judgment of the author as of the date of this report. They do not necessarily reflect the opinion of Markaz and are subject to change without notice. Markaz has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate, or if research on the subject company is withdrawn. This report may not consider the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors are urged to seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and to understand that statements regarding future prospects may not be realized. Investors should note that income from such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Investors should be able and willing to accept a total or partial loss of their investment. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily indicative of future performance. Kuwait Financial Centre K.P.S.C (Markaz) may seek to do business, including investment banking deals, with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. This report may provide the addresses of, or contain hyperlinks to, websites. Except to the extent to which the report refers to website material of Markaz, Markaz has not reviewed the linked site and takes no responsibility for the content contained therein. Such address or hyperlink (including addresses or hyperlinks to Markaz’s own website material) is provided solely for your convenience and information and the content of the linked site does not in any way form part of this document. Accessing such website or following such link through this report or Markaz’s website shall be at your own risk. For further information, please contact ‘Markaz’ at P.O. Box 23444, Safat 13095, Kuwait; Email: [email protected] ; Tel: 00965
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Research
Support
M.R. Raghu CFA, FRM | Head of Research [email protected]
N.C. Karthik Ramesh | Manager - Research
Rajesh Dheenathayalan | Research Analyst
Jenevivu Lasrado | Secretary, Research [email protected]
Nael Aboul Huda | Manager, Media & Communications
MARKAZ SECTOR RESEARCH
MENA Asset Management – December 2013
Kuwait Financial Centre K.P.S.C. “Markaz” 3
Table of Contents
1. Executive Summary ............................................................................................... 6
2. Key Questions and Policy Actions to be addressed ................................................ 8
What prevents the growth in Assets under Management? ................................................. 8
When will Saudi Arabia and Kuwait be part of MSCI Emerging Market Index? ..................... 9
What is ailing the debt market in the region and what can be done to improve it? ............ 10
Why ETFs aren’t popular in the MENA region? ............................................................... 11
Why is liquidity so low in the region? ............................................................................ 11
How to attract foreign investments? .............................................................................. 12
What could be Key innovation areas in MENA asset management industry? ...................... 13
Can Mutual funds outsize Managed accounts in terms of assets? ..................................... 14
3. Industry Architecture .......................................................................................... 15
Research .................................................................................................................... 15
Product Range ............................................................................................................ 16
Marketing/Distribution of Funds .................................................................................... 16
Operational Support .................................................................................................... 18
Risk Management ........................................................................................................ 18
4. SWOT Analysis ..................................................................................................... 20
5. Market Structure ................................................................................................. 21
Leadership Position ..................................................................................................... 22
Cost ........................................................................................................................... 23
Domicile ..................................................................................................................... 24
Specialized Funds ........................................................................................................ 24
Managed Assets .......................................................................................................... 25
6. Saudi Arabian Funds ............................................................................................ 27
7. Morocco Funds ..................................................................................................... 29
8. Egypt Funds ......................................................................................................... 31
9. Kuwait Funds ....................................................................................................... 33
10. Tunisia Funds ....................................................................................................... 35
11. MENA Funds ......................................................................................................... 37
MARKAZ SECTOR RESEARCH
MENA Asset Management – December 2013
Kuwait Financial Centre K.P.S.C. “Markaz” 4
12. GCC Funds ........................................................................................................... 39
13. Lebanon Funds .................................................................................................... 41
14. UAE Funds ............................................................................................................ 43
15. Oman Funds ......................................................................................................... 45
16. Qatar Funds ......................................................................................................... 47
17. Iraq Funds ........................................................................................................... 49
18. Jordan Funds ....................................................................................................... 51
19. Bahrain Funds ...................................................................................................... 53
20. Challenges to the Industry .................................................................................. 55
Elusive Growth ............................................................................................................ 55
Political Risk ................................................................................................................ 56
Benchmark Issues ....................................................................................................... 56
Fund Size ................................................................................................................... 57
Marketing/Distribution of Funds .................................................................................... 57
Fluidic Regulations ...................................................................................................... 57
21. Regulatory Developments ................................................................................... 58
22. Appendix .............................................................................................................. 65
Appendix 1: Global Asset Management Industry Overview .............................................. 65
Appendix 2: Estimating the Size of Managed Accounts .................................................... 67
Appendix 3: Consolidated Fund Manager Rankings ......................................................... 68
Appendix 4: MSCI Classification Criteria ......................................................................... 70
Appendix 5: Current Stance of MENA Countries .............................................................. 71
MARKAZ SECTOR RESEARCH
MENA Asset Management – December 2013
Kuwait Financial Centre K.P.S.C. “Markaz” 5
Tables and Charts
TABLES
CHARTS
2.1 Current Stance of MSCI 2.1 Portfolio Equity Investment, net (in USD bn)
2.2 Establishment of Corporate Governance Code 3.1 Industry Architecture
3.1 Skewed Sectorial Representation 3.2 Fund Distribution Network
5.1 MENA Asset Management Snapshot 6.1 Saudi Arabia AUM Breakup
5.2 Top Asset Managers in each Geographical Focus 7.1 Morocco AUM Breakup
5.3 Estimating the Size of Managed Accounts (USD
billion) 8.1 Egypt AUM Breakup
6.1 Assets under Management - Summary 9.1 Kuwait AUM Breakup
6.2 Top Fund Managers 10.1 Tunisia AUM Breakup
7.1 Assets under Management - Summary 11.1 MENA AUM Breakup
7.2 Top Fund Managers 12.1 GCC AUM Breakup
8.1 Assets under Management - Summary 13.1 Lebanon AUM Breakup
8.2 Top Fund Managers 14.1 UAE AUM Breakup
9.1 Assets under Management - Summary 15.1 Oman AUM Breakup
9.2 Top Fund Managers 16.1 Qatar AUM Breakup
10.
1 Assets under Management - Summary 17.1 Iraq AUM Breakup
10.2 Top Fund Managers 18.1 Jordan AUM Breakup
11.1 Assets under Management - Summary 19.1 Conventional Equity Fund
11.2 Top Fund Managers 22.1 Global Assets under Management (in USD trillions)
12.1 Assets under Management- Summary 22.2 Middle East & South Africa, Assets under
Management
12.2 Top Fund Managers TABLES (Contd)
13.1 Assets under Management - Summary 17.2 Top Fund Managers
13.2 Top Fund Managers 18.1 Assets under Management - Summary
14.1 Assets under Management - Summary 18.2 Specialized Funds
14.2 Top Fund Managers 19.1 Assets under Management - Summary
15.1 Assets under Management - Summary 19.2 Conventional Funds
15.2 Top Fund Managers 20.1 AUM over the Years (in USD mn)
16.1 Assets under Management - Summary 20.2 Average Fund Size in MENA
16.2 Top Fund Managers 21.1 MENA Independent Capital Market Authorities
17.1 Assets under Management – Summary 22.1 Worldwide Mutual Fund Assets, 2012
22.2 Investment Funds Multiple Matrix
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