KUALA LUMPUR (March 28): The total assets under management (AUM) of licensed fund management companies (FMCs) in Malaysia increased by 5.04% to RM951.05 billion in 2021 from RM905.46 billion in 2020, according to the Securities Commission Malaysia (SC)’s 2021 annual report released on Monday (March 28).

In 2021, the top five FMCs contributed to 54.81% of the total AUM, compared to 55.27% in 2020.

The source of funds under management were largely from unit trust funds, the Employees Provident Fund, corporate bodies, and wholesale funds (WF).

The funds were allocated in various asset classes and locations of which investment inside Malaysia by FMCs amounted to RM639.41 billion, representing 67.23% of the total AUM as at end-2021.

Meanwhile, 49.2% of the investments were allocated towards equities last year, compared with 48.32% in 2020.

Unit trust funds continued to be the largest component of the Malaysian collective investment scheme (CIS) industry with a total net asset value (NAV) of RM526.89 billion recorded as at Dec 31, 2021, representing an increase of 1.42% from RM519.53 billion as at end-2020.

The percentage of the total NAV of the unit trust fund industry against Bursa Malaysia Securities Bhd’s market capitalisation is 29.45% (2020: 28.59%).

In 2021, a total of 63 unit trust funds were launched, while 15 funds were terminated and four funds matured, which brought the total number of unit trust funds offered by 39 locally-incorporated unit trust management companies to 740 funds as at end-2021.

The unit trust funds industry recorded total gross sales (excluding reinvestment of distribution) of RM404.52 billion (2020: RM353.36 billion), the majority of which were distributed by unit trust management companies, with total gross sales of RM240.54 billion.

In the wholesale funds segment, a total NAV of RM79.45 billion was recorded as at end-2021, representing an increase of 17.44% from RM67.65 billion a year ago.

A total of 75 funds were launched under the Lodge and Launch (LOLA) Framework to sophisticated investors, while eight funds were terminated and 10 funds matured in 2021, which brought the total number of wholesale funds offered by 44 fund management companies to 414 funds as at the end of last year.

Meanwhile, there were 34 funds offered to investors which have been qualified as Sustainable and Responsible Investment (SRI) funds under the guidelines on SRI Funds (2020: seven funds).

The 34 funds comprised 22 unit trust funds and 12 wholesale funds with a total NAV of RM5.07 billion last year (2020: RM1.46 billion). In 2021, 30 funds obtained SRI qualification (2020: five funds).

With the listing of IGB Commercial Real Estate Investment Trust and the delisting of Amanah Harta Tanah PNB from the official list of Bursa Malaysia in 2021, the total number of real estate investment trusts (REITs) listed on the Main Market of Bursa Malaysia in 2021 was 18, with a total market capitalisation (including a stapled group) of RM38.44 billion (2020: RM39.34 billion).

The total asset size grew to RM59.44 billion last year, from RM56.36 billion in 2020. There were two unlisted REITs offered to sophisticated investors in 2021.

With the listing of VP-DJ Shariah China A-Shares 100 exchange-traded funds (ETF) and the delisting of MyETF Thomson Reuters Asia Pacific ex-Japan Islamic Agribusiness Fund in 2021, the total number of ETFs listed on the main market of Bursa Malaysia in 2021 was 19 (2020:19), with a total market capitalisation of RM2.16 billion (2020: RM2.23 billion).

Meanwhile, there continued to be only 1 closed-end fund listed on the main market of Bursa Malaysia, with a market capitalisation of RM314 million (2020: RM298 million).

On the other hand, the number of private retirement scheme (PRS) remained unchanged (from end-2020) with 12 schemes offered by eight PRS providers.

With two new private retirement funds launched under these schemes in 2021, the total number of private retirement funds in operation as at end-2021 was 59.

The total NAV of RM5.63 billion as at Dec 31, 2021 represented an increase of 18.53% compared with a total NAV of RM4.75 billion in 2020.

Overall, there was a significant decrease in withdrawals from PRS with pre-retirement withdrawals in 2021, dropping to 19% of total withdrawals as compared to 52% of total withdrawals in 2020. This is due to the expiry of the temporary exemption of the 8% tax penalty for withdrawals from sub-account B of up to RM1,500.

Read more stories from the SC Annual Report 2021 here.