Assets under management in the investment industry has been on the decline over the years. Ensuing market volatility and increased political risk has kept risk-averse clients away from the market. Smaller funds sizes and evolving regulations which vary from country to country have constrained business growth. Amidst this scenario, the report discusses the key issues that confront MENA Asset Management Industry and puts forth policy actions which would help establish growth in the Industry for the long run. In this report we have analysed the current state of MENA asset management industry in terms of industry architecture, market structure and fund performance. In-depth fund performance analysis based on geographical focus including alpha generated by the fund against respective benchmark and top fund managers based on AUMs being managed have been discussed. The report also highlights the regulatory developments and challenges being faced by the industry players in MENA region. For Full report, visit: http://www.e-marmore.com/offerstores/mena-asset-management-report/66/1/2204/

1. Markaz Sector Report
MENA Asset Management
Trends & Issues in MENA Asset Management Industry
Research Highlights:
Analyzing the state of MENA asset management industry in
terms of fund performance, market size, regulations and
challenges.

2. MARKAZ SECTOR RESEARCH
MENA Asset Management – December 2013
Research
M.R. Raghu CFA, FRM | Head of Research
rmandagolathur@markaz.com
N.C. Karthik Ramesh | Manager - Research
kramesh@markaz.com
Rajesh Dheenathayalan | Research Analyst
rdheenathayalan@markaz.com
Support
Jenevivu Lasrado | Secretary, Research
jlasrado@markaz.com
Nael Aboul Huda | Manager, Media & Communications
naboulhuda@markaz.com
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Kuwait Financial Centre K.P.S.C. “Markaz” 2

3. MARKAZ SECTOR RESEARCH
MENA Asset Management – December 2013
Table of Contents
1.
Executive Summary ............................................................................................... 6
2.
Key Questions and Policy Actions to be addressed ................................................ 8
What prevents the growth in Assets under Management? ................................................. 8
When will Saudi Arabia and Kuwait be part of MSCI Emerging Market Index? ..................... 9
What is ailing the debt market in the region and what can be done to improve it? ............ 10
Why ETFs aren’t popular in the MENA region? ............................................................... 11
Why is liquidity so low in the region? ............................................................................ 11
How to attract foreign investments?.............................................................................. 12
What could be Key innovation areas in MENA asset management industry? ...................... 13
Can Mutual funds outsize Managed accounts in terms of assets? ..................................... 14
3.
Industry Architecture .......................................................................................... 15
Research .................................................................................................................... 15
Product Range ............................................................................................................ 16
Marketing/Distribution of Funds .................................................................................... 16
Operational Support .................................................................................................... 18
Risk Management ........................................................................................................ 18
4.
SWOT Analysis ..................................................................................................... 20
5.
Market Structure ................................................................................................. 21
Leadership Position ..................................................................................................... 22
Cost ........................................................................................................................... 23
Domicile ..................................................................................................................... 24
Specialized Funds ........................................................................................................ 24
Managed Assets .......................................................................................................... 25
6.
Saudi Arabian Funds ............................................................................................ 27
7.
Morocco Funds ..................................................................................................... 29
8.
Egypt Funds ......................................................................................................... 31
9.
Kuwait Funds ....................................................................................................... 33
10.
Tunisia Funds ....................................................................................................... 35
11.
MENA Funds ......................................................................................................... 37
Kuwait Financial Centre K.P.S.C. “Markaz” 3

4. MARKAZ SECTOR RESEARCH
MENA Asset Management – December 2013
12.
GCC Funds ........................................................................................................... 39
13.
Lebanon Funds .................................................................................................... 41
14.
UAE Funds............................................................................................................ 43
15.
Oman Funds ......................................................................................................... 45
16.
Qatar Funds ......................................................................................................... 47
17.
Iraq Funds ........................................................................................................... 49
18.
Jordan Funds ....................................................................................................... 51
19.
Bahrain Funds ...................................................................................................... 53
20.
Challenges to the Industry .................................................................................. 55
Elusive Growth ............................................................................................................ 55
Political Risk................................................................................................................ 56
Benchmark Issues ....................................................................................................... 56
Fund Size ................................................................................................................... 57
Marketing/Distribution of Funds .................................................................................... 57
Fluidic Regulations ...................................................................................................... 57
21.
Regulatory Developments ................................................................................... 58
22.
Appendix.............................................................................................................. 65
Appendix 1: Global Asset Management Industry Overview .............................................. 65
Appendix 2: Estimating the Size of Managed Accounts.................................................... 67
Appendix 3: Consolidated Fund Manager Rankings ......................................................... 68
Appendix 4: MSCI Classification Criteria......................................................................... 70
Appendix 5: Current Stance of MENA Countries.............................................................. 71
Kuwait Financial Centre K.P.S.C. “Markaz” 4

5. MARKAZ SECTOR RESEARCH
MENA Asset Management – December 2013
Tables and Charts
TABLES
CHARTS
2.1
2.2
Current Stance of MSCI
Establishment of Corporate Governance Code
2.1
3.1
Portfolio Equity Investment, net (in USD bn)
Industry Architecture
3.1
Skewed Sectorial Representation
5.1
MENA Asset Management Snapshot
3.2
6.1
Fund Distribution Network
Saudi Arabia AUM Breakup
5.2
7.1
Morocco AUM Breakup
8.1
Egypt AUM Breakup
6.1
Top Asset Managers in each Geographical Focus
Estimating the Size of Managed Accounts (USD
billion)
Assets under Management - Summary
9.1
Kuwait AUM Breakup
6.2
7.1
7.2
8.1
8.2
9.1
Top Fund Managers
Assets under Management - Summary
Top Fund Managers
Assets under Management - Summary
Top Fund Managers
Assets under Management - Summary
10.1
11.1
12.1
13.1
14.1
15.1
Tunisia AUM Breakup
MENA AUM Breakup
GCC AUM Breakup
Lebanon AUM Breakup
UAE AUM Breakup
Oman AUM Breakup
9.2
10.
1
10.2
11.1
Top Fund Managers
16.1
Qatar AUM Breakup
Assets under Management - Summary
17.1
Iraq AUM Breakup
Top Fund Managers
Assets under Management - Summary
18.1
19.1
11.2
Top Fund Managers
22.1
12.1
Assets under Management- Summary
22.2
12.2
13.1
13.2
Top Fund Managers
Assets under Management - Summary
Top Fund Managers
17.2
18.1
Jordan AUM Breakup
Conventional Equity Fund
Global Assets under Management (in USD
trillions)
Middle East & South Africa, Assets under
Management
TABLES (Contd)
Top Fund Managers
Assets under Management - Summary
14.1
14.2
15.1
15.2
16.1
16.2
Assets under Management - Summary
Top Fund Managers
Assets under Management - Summary
Top Fund Managers
Assets under Management - Summary
Top Fund Managers
18.2
19.1
19.2
20.1
20.2
21.1
Specialized Funds
Assets under Management - Summary
Conventional Funds
AUM over the Years (in USD mn)
Average Fund Size in MENA
MENA Independent Capital Market Authorities
17.1
Assets under Management – Summary
22.1
22.2
Worldwide Mutual Fund Assets, 2012
Investment Funds Multiple Matrix
5.3
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