SC: FMCs’ total AUM up 7.61 pct to RM975.48 bln in 2023

KUALA LUMPUR: The total Asset Under Management (AUM) of licensed fund management companies (FMCs) in Malaysia increased by 7.61 per cent to RM975.48 billion in 2023 from RM906.46 billion in 2022.

Sources of funds under management were largely from unit trust funds (UTFs), the Employees Provident Fund, corporate bodies, and wholesale funds (WFs), the Securities Commission (SC) said in its Annual Report 2023 released yesterday.

The top three largest sources of clients’ funds under management in 2023 were UTFs (2023: RM499.88 billion; 2022: RM487.94 billion), followed by the EPF (2023: RM186.92 billion; 2022: RM157.83 billion) and corporate bodies (2023: RM107.83 billion; 2022: RM97.76 billion).

The funds were allocated in various asset classes and locations.

According to the SC, investments inside Malaysia by FMCs rose to RM646.19 billion (2022: RM624.87 billion), representing 66.24 per cent of the total AUM as of end-2023.

The bulk of the investments was allocated in equities (2023: 48.65 per cent; 2022: 47.59 per cent).

The assets allocation for investments within Malaysia remained centred on equities, fixed income and money market placements in 2023, mirroring the trend observed the previous year.

On assets allocation for investment inside and outside of Malaysia as of Dec 31, 2023, equities took the lead, both domestic and overseas (domestic: RM272.45 billion; overseas: RM202.08 billion), followed by fixed income (domestic: RM193.18 billion; overseas: RM30.69 billion).

In 2023, UTFs in Malaysia continued to be the largest component of the Malaysian collective investment schemes (CIS) industry with a total Net Asset Value (NAV) of RM499.88 billion as at Dec 31 2023 (2022: RM487.94 billion).

“The percentage of the total NAV of the UTF industry against Bursa Malaysia Securities Bhd’s (Bursa Malaysia)marketcapitalisation was 27.83 per cent (2022: 28.10 per cent),” it added.

The SC added that during the year under review, a total of 21 UTFs were launched while 17 funds were terminated and six funds matured, bringing the total number of UTFs offered by 38 locally-incorporated unit trust management companies to 757 funds as at Dec 31, 2023.

The UTF industry recorded total gross sales (excluding reinvestment of distribution) of RM228.68 billion (2022: RM222.89 billion), the majority of which were distributed by unit trust management companies with total gross sales of RM129.43 billion.

Overall, the UTFs industry recorded net redemptions (excluding reinvestment of distribution) of -RM25.19 billion in 2023 (2022: -RM26.28 billion).

As for sustainable and responsible investment (SRI) funds, 68 funds which qualified as SRI funds were offered to investors under the Guidelines on Sustainable and Responsible Investment Funds (2022: 58 funds).

“The 68 funds comprised 40 UTFs and 28 WFs with a total NAV of RM7.70 billion as at Dec 31, 2023 (2022: RM7.05 billion),” the SC said. — Bernama