16
Asset Management Sector Study
Asset Management
Sector Study
06
Page 14
Money
Market
Review
05
Page 12-13
Investment
Avenues04
Page 8-11
Funds &
Categories03
Page 6-7
Industry
SnapshotEconomy
Review
Page 5
02
Table of Contents
01
Global
Dynamics
Page 1-4
Global AUM (Open End)
Americas
$26,816
53%
Asia Pacific
$6,455
13%
Europe
$16,913
34%
Africa $182
0%
USD bln 2014 2015 2016 2017 2018
World 40,933 41,009 43,797 53,111 50,367
Americas 22,563 22,024 23,949 28,194 26,816
Europe 14,065 14,054 14,459 18,175 16,913
Asia and Pacific 4,134 4,786 5,217 6,528 6,455
Africa 171 145 172 214 182
0
10,000
20,000
30,000
40,000
50,000
60,000
World Americas Europe Asia and Pacific Africa
2014 2015 2016 2017 2018
• Global asset management industry is in a period of rapid change, driven by shifting
investor preferences, margin compression, regulatory developments, and advancing
technologies.
• Global asset management industry enjoyed strongest growth in 2017, fueled by bull
markets and high net inflows
World AUM as % of GDP
35%
40%
45%
50%
55%
60%
65%
70%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2014 2015 2016 2017 2018
AUM GDP AUM as % of GDP
USD bln 2014 2015 2016 2017 2018
AUM 40,933 41,009 43,797 53,111 50,367
GDP 78,832 74,602 75,653 80,051 84,835
AUM as % of
GDP52% 55% 58% 66% 59%
Global AUM (Categories)USD bln 2014 2015 2016 2017 2018
Equity 16,054 16,187 17,326 21,826 19,922
Bond 8,205 8,111 8,797 10,183 10,136
Balanced 4,971 5,162 5,323 6,398 5,844
Money Market 4,639 5,072 5,135 5,900 6,076
Other 2,688 3,017 3,302 3,978 3,861
Real Estate 336 532 607 747 805
Guaranteed 118 74 66 67 55
Total 37,011 38,155 40,556 49,099 46,699
37.0 38.2 40.649.1 46.7
3.1 2.83.2
3.83.740.1 40.9
43.8
52.950.4
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2014 2015 2016 2017 2018
Open-End Fund of Funds Total
0
5,000
10,000
15,000
20,000
25,000
Equity Bond Balanced Money
Market
Other Real Estate Guaranteed
2014 2015 2016 2017 2018
USD bln 2014 2015 2016 2017 2018
Equity 43% 42% 43% 44% 43%
Bond 22% 21% 22% 21% 22%
Balanced 13% 14% 13% 13% 13%
Money Market 13% 13% 13% 12% 13%
Other 7% 8% 8% 8% 8%
Real Estate 1% 1% 1% 2% 2%
Guaranteed 0% 0% 0% 0% 0%
Total 100% 100% 100% 100% 100%
Asia Pacific AUM (USD bln) 2018
Japan $1,825
Australia $2,083
China $1,828
Taiwan $82India $277
Korea $494
New Zealand $62
Pakistan $5
Philippines $5
$2,083
$1,828 $1,825
$494
$277
$82 $62 $5 $5
Australia China Japan Korea India Taiwan New
Zealand
Philippines Pakistan
31%
27%
27%
7%4%1%1%0% 0%
Australia
China
Japan
Korea
India
Taiwan
New
Zealand
Economy Review
0%
2%
4%
6%
8%
10%
12%
14%
Jan
-17
Feb
-17
Mar
-17
Ap
r-1
7
May
-17
Jun
-17
Jul-
17
Au
g-1
7
Sep
-17
Oct
-17
No
v-1
7
Dec
-17
Jan
-18
Feb
-18
Mar
-18
Ap
r-1
8
May
-18
Jun
-18
Jul-
18
Au
g-1
8
Sep
-18
Oct
-18
No
v-1
8
Dec
-18
Jan
-19
Feb
-19
Mar
-19
Ap
r-1
9
May
-19
Policy Rate vs CPI
Policy Rate CPI
0%
2%
4%
6%
8%
10%
12%
14%
Jan
-17
Feb
-17
Mar
-17
Ap
r-1
7
May
-17
Jun
-17
Jul-
17
Au
g-1
7
Sep
-17
Oct
-17
No
v-1
7
Dec
-17
Jan
-18
Feb
-18
Mar
-18
Ap
r-1
8
May
-18
Jun
-18
Jul-
18
Au
g-1
8
Sep
-18
Oct
-18
No
v-1
8
Dec
-18
Jan
-19
Feb
-19
Mar
-19
Ap
r-1
9
May
-19
Policy Rate vs KIBOR 6m
Policy Rate KIBOR 6m
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
3m 6m 1 year 3 year 5 year 10 year 30 year
Yield Curves (PKRV)
Jun-18 Dec-18 May-19
0%
2%
4%
6%
8%
10%
12%
14%
16%
Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19
KIBOR
KIBOR 3m KIBOR 6m KIBOR 12m
Assets Under Management
PKR bln Jun-15 Jun-16 Jun-17 Jun-18 Apr-19
Open-end 401 449 580 580 556
Voluntary Pension 13 19 25 26 26
Close-end 2 2 2 2 1
Total 416 470 607 608 583
Growth (%) 4 13 29 0.2 (4)
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
0
100
200
300
400
500
600
700
Jun-15 Jun-16 Jun-17 Jun-18 April-19
Total Growth (%)
Market ShareAMC Rating Outlook Market Share (Apr-19)
AUMs (Apr-19)
PKR mln
Market Share (Dec-
18)
AUMs (Dec-18)
PKR mln
1 Al-Meezan Investment Management Limited AM1 Negative 16.3% 94,991 15.2% 88,007
2 NBP Fund Management Limited AM1 Stable 15.7% 91,897 15.4% 89,073
3 UBL Fund Managers Limited AM1 Stable 10.8% 63,003 10.8% 62,309
4 National Investment Trust Limited AM2++ Stable 12.3% 71,728 13.1% 75,936
5 MCB-Arif Habib Savings and Investments Limited AM2++ Positive 8.5% 49,683 8.1% 47,164
6 ABL Asset Management Limited AM2++ Stable 6.3% 36,810 6.8% 39,466
7 HBL Asset Management Limited AM2+ Positive 8.6% 50,346 8.9% 51,806
8 Alfalah GHP Investment Management Limited AM2+ Stable 5.9% 34,484 5.4% 31,368
9 Atlas Asset Management Limited AM2+ Stable 4.7% 27,516 5.0% 29,055
10 Lakson Investments Limited AM2+ Stable 3.1% 18,037 3.4% 19,564
11 JS Investment Limited AM2 Positive 3.2% 18,813 3.2% 18,534
12 AKD Investment Management Limited AM3++ Stable 0.8% 4,694 0.9% 5,072
13 Pak Oman Asset Management AM3+ Stable 0.7% 4,165 0.9% 5,074
14 Habib Asset Management Limited AM3+ Stable 0.5% 3,110 0.7% 3,795
15 AWT Investment Management Limited AM3+ Stable 0.3% 1,609 0.3% 1,692
16 Faysal Asset Management Limited AM3 RW-Developing 1.9% 11,005 1.6% 9,345
17 BMA Asset Management Company Limited AM3 Negative 0.1% 797 0.2% 1,266
18 786 Investments Limited AM3 Stable 0.1% 697 0.1% 662
19 First Capital Investments Limited AM4++ RW-Developing 0.0% 110 0.0% 134
100% 583,495 100% 579,323
FundsCategory Jun-17 Dec-17 Jun-18 Dec-18 Apr-19
Equity 23 21 23 25 25
Asset Allocation 11 12 12 13 13
Balanced 5 5 5 5 5
Islamic Equity 16 16 17 17 17
Islamic Asset Allocation 10 11 12 13 13
Income 29 29 30 30 31
Islamic Income 18 18 20 21 21
Aggressive Fixed
Income7 7 7 7 7
Money Market 22 22 20 20 20
Islamic Money Market 3 3 4 5 5
Others 41 45 58 60 60
Total 185 189 209 216 217
31
25
2120
1917
13 13
109
75 5
3 31 1
14
Open-end
19719
VPS
1
Close-end
Category as % of Industry AUMCategory Jun-17 Dec-17 Jun-18 Dec-18 Apr-19
Equity 27% 24% 23% 23% 22%
Asset Allocation 3% 2% 2% 2% 2%
Balanced 1% 1% 1% 1% 1%
Income 12% 12% 10% 8% 9%
Money Market 12% 17% 21% 25% 25%
Aggressive Fixed
Income2% 2% 1% 1% 1%
Islamic Equity 16% 13% 13% 11% 10%
Islamic Asset
Allocation5% 5% 5% 4% 4%
Islamic Income 5% 6% 5% 5% 6%
Islamic Money
Market1% 2% 2% 2% 5%
Others 16% 16% 17% 17% 16%
Total 100% 100% 100% 100% 100%Balanced
Aggressive Fixed Income
Asset Allocation
Islamic Money Market
Islamic Asset Allocation
Islamic Income
Income
Islamic Equity
Others
Equity
Money Market
1%
1%
2%
5%
4%
6%
9%
10%
16%
22%
25%
KSE-100 Performance
0
20
40
60
80
100
120
140
160
180
200
0
10,000
20,000
30,000
40,000
50,000
Jan-19 Feb-19 Mar-19 Apr-19 May-19
Mil
lio
ns
Volume KSE-100 INDEX
• During first five months of CY19, KSE-100
posted a negative return of ~3%.
• Trading activity remained low on the back of
negative market sentiments due to uncertainty on
market performance in the backdrop of an
economic slowdown, rising interest rate
environment and consistent drag on IMF front.
• Concerns on upcoming budgetary measures
remained in limelight. The overall trading
volumes in first five months of CY19 remained
low, (5MCY19: 88mln, CY18: 97mln, CY17:
102mln) as compared to previous years. This put
pressure on income of all brokerage entities.
Jan-19 Feb-19 Mar-19 Apr-19 May-19
Average Monthly Index 39,344 40,296 38,867 37,159 34,903
Average Monthly Volume 87 91 70 96 96
KSE-100 Returns
1-Year (CY18) 3-Years (CY) 5-Years (CY)
-8% 13% 47%
FY18 FY17 FY16 FY15
-10% 23% 8% 16%
1HFY19
-12%
CY18 CY17 CY16 CY15 CY14 CY13
-8% -15% 46% 2% 26% 49%
Dec’18 Nov’18 Oct’18 Sep’18 Aug’18 Jul’18 Jun’18 May’18 Apr’18 Mar’18 Feb’18 Jan’18
-8% -3 2% -2% -2% 2% -2% -6% 0% 5% -2% 9%
KSE-100 Average Traded Volumes
CY18 CY17 CY16
96 million 102 million 130 million
1HCY19
88 million
38%
-9%
44%
-15%
-7%
-23%
-6%
-11%
-17%
Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18
Net Movement in Income & Money Market
Income
Money
Market
PKR
143.8
bln-7%
-37%
-21%
-7%
28%
15%
37%
27%
18%
PKR
103.2
bln
PKR
89.8
bln
PKR
48.6
bln
Policy
Rate9.50
8.508.00
7.006.50
6.00 5.75 5.75 5.75 6.006.50
7.50
8.50
10.00
Asset Allocation & Unit Holding
Dec-17 Jun-18Dec-18
0%
10%
20%
30%
40%
50%
60%
Equities Cash T-Bills/PIBs TFCs/Sukuks Banks/DFIs Others
Dec-17 Jun-18 Dec-18
38%13%
17%
32%
40%10%
19%
31%
Individuals Banks & FIs Retirement funds Others
39%13%
17%
31%
Bibliography
www.iifa.ca
www.mufap.com.pk
www.sbp.org.pk
Analysts Shahzaib KhalidSupervising Senior
+92 42 3586 9504
Muhammad UsmanSenior Financial Analyst
+92 42 3586 9504
Masooma ZahidFinancial Analyst
+92 42 3586 9504
DISCLAIMER
PACRA has used due care in preparation of this document. Our information has been obtained from
sources we consider to be reliable but its accuracy or completeness is not guaranteed. The information in
this document may be copied or otherwise reproduced, in whole or in part, provided the source is duly
acknowledged. The presentation should not be relied upon as professional advice.
