Marmore Industry Report
2015
Saudi Asset Management
Policy Reforms hold Key
Research Highlights
Analysing the state of Saudi Arabian Asset Management Industry in terms of
market segment, participants, fund performance, regulatory developments
and industry challenges.
MARMORE INDUSTRY RESEARCH
Saudi Arabia Asset Management – October 2015
Research
M.R. Raghu CFA, FRM | Head of Research
[email protected]N.C. Karthik Ramesh | Manager – Research
[email protected]Rakesh Khanna | Research Analyst
[email protected]Support
Jenevivu Lasrado | Executive Secretary, Research
[email protected]Fatima Priya | Office Manager - Administration, Research
[email protected]Nael Aboul Huda | Manager, Media & Communications
[email protected]Disclaimer
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MARMORE INDUSTRY RESEARCH
Saudi Arabia Asset Management – October 2015
Table of Contents
1. Executive Summary ................................................................................ 5
2. Industry Architecture ............................................................................. 7
3. Market Segments ................................................................................. 12
Capital Market ............................................................................................. 12
Debt Market ................................................................................................ 15
Alternative Investments ............................................................................... 18
4. Market Participants .............................................................................. 21
Sovereign Wealth Funds ............................................................................... 21
Pension Funds ............................................................................................. 22
Insurance Companies................................................................................... 23
Retail Participation ....................................................................................... 25
5. MSCI Index Reclassification ................................................................. 27
6. Regulatory Developments .................................................................... 29
7. Industry Challenges ............................................................................. 31
8. SWOT Analysis...................................................................................... 34
9. Mutual Fund Analysis ........................................................................... 35
AuM Break Up ............................................................................................. 35
Leadership Position ...................................................................................... 36
Fund Performance ....................................................................................... 36
Equity Funds ............................................................................................... 38
Money Market Funds.................................................................................... 40
Specialized Funds ........................................................................................ 42
Managed Assets .......................................................................................... 43
10. Appendix .............................................................................................. 44
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MARMORE INDUSTRY RESEARCH
Saudi Arabia Asset Management – October 2015
Tables and Charts
Tables Charts
3.1 Top 5 Blue Chips, Saudi Stock Index (TADAWUL) 2.1 Industry Architecture
3.2 Debt Issuance in Saudi Arabia, 2013 2.2 Individual Subscription Channel for IPOs, 2014
3.3 Real Estate Funds 3.1 Sector Weightage, Saudi Stock Index (TADAWUL)
3.4 Venture Capital Funds 3.2 TADAWUL Market Capitalization/GDP
5.1 Current Stance of MSCI 3.3 Stock Turnover in TADAWUL Exchange
7.1 Average Fund Size in Saudi Arabia 3.4 Saudi Arabia IPO Activity, 2004-2015
9.1 Assets under Management - Summary (2015) 3.5 IPO Amount Raised by Sector, 2004-2015
9.2 Top Fund Managers, 2015 3.6 Outstanding Public Debt to GDP Ratio
9.3 Top Five Fund Managers (Equity Conventional) 3.7 Saudi Arabia Bond Market Activity, 2006-2014
9.4 Top Five Fund Managers (Equity - Islamic) 4.1 Pension Fund Assets as percentage of GDP
Top Fund Managers (Conventional Money
9.5 4.2 Insurance Penetration in Saudi Arabia (in %)
Market)
9.6 Top Fund Managers (Islamic Money Market) 4.3 Insurance Assets as percentage of GDP
9.7 AUMs in Specialized Funds 4.4 Value Traded by Nationality, 2014
9.8 Top Fund Managers, Specialized Funds 9.1 Saudi Arabia AUM Breakup, 2015
9.9 Top 10 Performers, Specialized Funds 9.2 TADAWUL Index Returns over the Years
Estimating the Size of Managed Accounts (USD
9.10 9.3 Asset-Weighted Returns, 2015 (in %)
bn)
10.1 Consolidated Fund Manager Rankings 9.4 Top Five Conventional Funds, June 2015
10.2 Saudi Arabia Equity Funds - Conventional 9.5 Top Five Islamic Funds
10.3 Saudi Arabia Equity Funds –Islamic 9.6 Top Five Conventional Money Market Funds
10.4 Saudi Arabia Money Market Funds 9.7 Top Five Islamic Money Market Funds
10.5 Saudi Arabia Trade Finance Funds
10.6 Saudi Arabia Specialized Funds - Conventional
10.7 Saudi Arabia Specialized Funds – Islamic
10.8 Saudi Arabia Private Equity Funds
10.9 Investment Funds Multiple Matrix
10.10 Sukuk Issuance in Saudi Arabia, 2013
10.11 IPO Issuance in Saudi Arabia, 2012-2013
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MARMORE INDUSTRY RESEARCH
Saudi Arabia Asset Management – October 2015
1. Executive Summary
KSA Asset Management Saudi Arabia Asset Management Industry manages USD 26.6billion1 in
Industry manages USD assets in about 188 funds as of Sep, 2015. Money market funds have the
26.6billion1 in assets in highest share of AUM at 64.3% followed by equity funds (31%) and
about 188 funds. specialized funds accounting for the rest of assets. Of the total assets,
Islamic funds manage USD 22.9bn (86%) in assets and rest are
conventional. In terms of the number of funds, there are 90 equity funds,
30 money market funds and 21 specialized funds. AUM/GDP ratio for Saudi
Arabia stands at 68. Saudi Arabia asset management market is
concentrated among the top asset management companies, with the top
five asset managers (out of a total of 33 managers) accounting for 86% of
the total assets being managed. NCB Capital was the leading fund manager
(in terms of AUM) with USD 7.03 billion in assets (35% market share),
followed by Samba capital with USD 3.83 billion (19% market share) and
Al Rajhi Capital with USD 3.31 billion (12% market share).
Saudi capital markets are characterized by lack of private institutional
NCB Capital was the players and foreign investors which is expected to improve the coming
leading fund manager years following the opening up of Saudi stock market to foreign investors.
(in terms of AUM) with Currently, the three state institutional investors - General Organization for
USD 7.03 billion in Social Insurance, Public Pension Authority and Public Investment Fund -
assets. form the largest group of institutional investors; private institutional
investors such as private pension funds, insurance companies and mutual
funds are too small in size to play a substantial role. Interestingly, retail
clients form the bulk of market participants in Saudi markets. Debt market
is small in size and under developed but given the recent issue of bond by
the Saudi government. Allowing foreign institutional investors to invest in
the stock market has been largely seen as a positive sign by local wealth
managers in the GCC region. Efforts to widen the investor base,
introduction of various products to facilitate hedging and enhanced price
discovery and increased disclosure norms for listed firms would augur well
for the asset management industry.
1
Assets under Management (AUM) refer to mutual fund assets. AUM value computed for funds with Saudi Arabia as their
geographical focus.
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MARMORE INDUSTRY RESEARCH
Saudi Arabia Asset Management – October 2015
This is the Executive Summary of the full report
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