Total assets of 311 entities working as NBFIs stand at Rs 1,228 billion: SECP

Total assets of the 311 entities/companies working as non-banking financial institutions (NBFIs) stood at Rs 1,228 billion as on June 30, 2018. According to the latest data of the NBFI industry compiled and updated by the Securities and Exchange Commission of Pakistan (SECP) here on Wednesday, the industry has witnessed growth of 217 percent between June, 2010 and June 30, 2018. The compound annual growth rate of the industry during June 2010 to June 2018 remained 15.52 percent.
The data further revealed that total assets of 21 asset management companies (AMCs) and investment advisors stood at Rs 39 billion (percentage of total assets 3.17 percent); total assets of 190 mutual funds (190) and plans (72) were Rs 678.86 billion (percentage of total assets 55.26 percent); total assets of discretionary & non-discretionary portfolios was Rs 152.94 billion (percentage of total assets 12.45 percent); total assets of 19 pension funds were Rs 26.83 billion (percentage of total assets 2.18 percent); total assets of 05 REIT management companies were Rs 5.11 billion (percentage of total assets 0.42 percent); total assets of one real estate investment trust (REIT scheme) were Rs 41.84 billion (percentage of total assets 3.41); total assets of 35 investment banks & microfinance institutions were Rs 215.48 billion (percentage of total assets 17.54); total assets of 07 leasing companies were Rs 10.36 billion (percentage of total assets 0.84); total assets of 29 modarabas were Rs 52.94 billion (percentage of total assets 4.31 percent); total assets of 02 private equity companies were Rs 00.17 billion (percentage of total assets 0.01 percent) and total assets of 02 private equity funds was Rs 04.98 billion (percentage of total assets 0.41 percent).
Trend of growth in total assets of NBFI industry revealed that total assets of NBFI industry as on June 30, 2017 have been updated with the inclusion of total assets of REIT management companies.
Total number of entities does not include plans (72) as they are not considered notified entities or NBFCs. These plans are managed under 18 different mutual funds.
The SECP said that the direction No 12 of 2017 dated April 27, 2017 requires assets management companies (AMCs) to exclude the amount invested by fund of fund schemes in underlying funds managed by the same AMC while publishing the amount of assets under its management in advertisements. Accordingly, if the amount invested by fund of fund schemes in underlying funds of the same AMC (which is Rs 58,948 million) is deducted from AUMs of the industry, the total assets under management of the industry amounted to the tune of Rs 619,912 million, as of June 30, 2018.
The information pertaining to RMCs is based on their latest available accounts for the quarter ended on March 31, 2018, (except one REIT Management Co Ltd, which is based on quarter ended on September 30, 2017, and SB Global REIT Management Company Ltd. is based on year ended on June 30, 2017), SECP said.
Break-up of growth in Shariah compliant and conventional assets of NBFI industry reveals that conventional assets - growth since June 2010 till June 2018 is 146.75%; Shariah compliant assets - growth since June 2010 till June 2018 is 717.48%; compound annual growth rate (June 10 to June 2018) - conventional assets is 11.95%; compound annual growth rate (June 10 to June 2018) for Shariah compliant assets remained 30.03%.
Shariah compliant assets include assets of Shariah compliant mutual funds, Shariah compliant pension funds, REIT and Shariah complaint modarabas, while rest of the assets of NBFI industry are conventional assets.
Trend of total assets and number of mutual funds & plans disclosed that growth since June 2010 till June 2018 remained 185% and compound annual growth rate (June 10 till June, 18) remained 14.00%.
Trend of total assets of conventional and Shariah compliant mutual funds & plans revealed that conventional mutual funds growth since June 2010 till June 2018 is 87.72%; Shariah complaint mutual fund growth since June 2010 till June, 2018 is 1115.75% and compound annual growth rate (June 2010 to June 2018) for conventional mutual fund remained 36.65%.
Detail of investor accounts in open-end mutual funds revealed that individuals have 34.69% of total investment value; associated banks/DFIs/AMCs cover 5.53% of total investment value; other banks/ DFIs have share of 1.66% of total investment value; insurance companies have 4.61% of total investment value; other financial institutions have 2.56% of total investment value; other corporate have 21.67% of total investment value; fund of funds have 8.45% of total investment value; retirement funds share stood at 15.16% of total investment value; trusts/ NGOs/societies/ foundations/ charities have 5.39% of total investment value; individuals have 0.25% of total investment value and non-individuals have share of 0.03% of total investment value.
The said data showed the number of investor accounts in open and mutual funds only. The number of investor's accounts is different from the number of investors in mutual fund industry i.e. if investor A has opened three accounts with three different asset management companies, the same shall be reported as three investor accounts instead of one investor, the SECP said.
Trend of total assets of conventional and Shariah compliant pension funds revealed that compound annual growth rate (June 10 to June 18) for Shariah compliant pension fund is 48.28% and compound annual growth rate (June 10 to June 18) in case of conventional pension fund is 42.64%.
The SECP data revealed that the deposit raising of leasing companies, modarabas & investment banks as on June 30, 2018 revealed that within the category of individual, leasing companies deposit raising is Rs 393.17 million; within modarabas it is Rs 1735.27 million; within investment banks it is Rs 4897.77 million; and total deposit raising is Rs 7026.21 million (43.19% of total deposits).
Within the category of corporate, leasing companies deposit raising is Rs 96.11 million; in modarabas it is Rs 3372.08 million; in investment banks it is Rs 701.99 million and total deposit raising is Rs 4170.18 million (25.63% of total deposits) as on June 30, 2018.
Within the category of trust, leasing companies deposit raising is Rs 10.00 million; modarabas, Rs 328.76 million; investment banks, Rs 383.10 million and total deposit raising is Rs 721.86 million (4.44% of total deposits) as on June 30, 2018.