KUALA LUMPUR: The total assets under management (AUM) of licensed fund management companies (FMCs) in Malaysia increased 7.61 per cent to RM975.48 billion from RM906.46 billion in 2022.
The top five FMCs contributed to 53.87 per cent of total AUM in 2023 compared to 55.42 per cent in 2022, according to Securities Commission (SC) Malaysia's Annual Report 2023.
The report noted that sources of funds under management were largely from unit trust funds (UTFs), the Employees Provident Fund (EPF), corporate bodies and wholesale funds (WFs).
"The funds were allocated in various asset classes and locations, of which, investment inside Malaysia by FMCs amounted to RM646.19 billion, representing 66.24 per cent of the total AUM as at end of 2023.
"The bulk of investment was allocated in equities with 48.65 per cent as at end of 2023, as compared to 47.59 per cent in 2022.
"The asset allocation for investment inside Malaysia continued to focus on equities, fixed income and money market placement, trend is similarly observed last year," it said.
According to the report, 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 recorded as at Dec 31, 2023.
A total of 21 UTFs were launched while 17 funds were terminated and six funds matured, which brought the total number of UTFs offered by 38 locally-incorporated unit trust management companies to 757 funds as at Dec 31, 2023.
In the WFs segment, a total NAV of RM77.15 billion was recorded as at Dec 31, 2023, with a total of 43 funds were launched under the Lodge and Launch Framework for Unlisted Capital Market Products (LOLA) Framework to sophisticated investors.
Meanwhile, there were 68 funds offered to investors which have been qualified as sustainable and responsible investment (SRI) funds under the Guidelines on Sustainable and Responsible Investment Funds.
As at Dec 31 last year, there were a total of 19 real estate investment trusts listed on the Main Market of Bursa Malaysia with a total market capitalisation of RM41.78 billion.
The total number of exchange-traded funds listed on the Main Market of Bursa Malaysia as at Dec 31, 2023 was 15 with a total market capitalisation of RM2.21 billion.
There continued to be only one closed-end fund listed on the Main Market with a market capitalisation of RM392 million as of Dec 31, 2023.
In terms of private retirement schemes, the landscape expanded significantly with the introduction of a new PRS in 2023, bringing the total number of PRS options to 14, offered by nine distinct PRS providers as of Dec 31, 2023.
The total NAV saw commendable growth of 19.22 per cent, growing to RM6.45 billion as at Dec 31, 2023 from RM5.41 billion as at Dec 31, 2022.
In addition, contributions into PRS remained robust, with RM767 million being invested into PRS in 2023.
The total number of members as at Dec 31, 2023 increased by 3.90 per cent to 579,000 from 557,000 as at Dec 31, 2022.
In terms of investment products, the number of structured warrants term sheets with foreign underlying has expanded in 2023, with 450 term sheets registered, representing an increase of 15 per cent compared to 2022.
In 2023, a total of 12 issuers lodged 20 new structured product programmes with the SC under the LOLA Framework for unlisted capital market products.
The Malaysian structured product market reported a substantial increase of 24 per cent of total new issuances in 2023 compared to 2022.
In 2023, there were two contracts for difference (CFD) providers offering CFD in Malaysia based on shares and indices, mirroring the scenario as observed in 2022.
A CFD is a leveraged derivatives product that allows investors to participate in the price movement of an underlying instrument.