The volume of investment fund assets declined during the first quarter of 2017 to EGP 28.35bn, down from EGP 29.3bn in the last quarter of 2016, a drop of 3.3%.
Four assets management companies alone accounted for 83.6% of total assets, registering EGP 23.4bn. Beltone remained atop the companies for the fourth quarter in a row in a list of 19 companies. Beltone had a market share of 29.4% through managing 12 funds with assets totaling EGP 8.3bn, down from EGP 8.8bn in the fourth quarter of 2016, marking a decline of 5.66%.
The National Fund Management Company (Al-Ahly) followed in close second, with a market share of 28.4% through managing six investment funds with assets amounting to EGP 8.06bh. The company registered a growth of 24.3% compared to the fourth quarter of last year.
Head of Al-Ahly Company Essam Khalifa said that the first quarter this year witnessed reluctance of investors to invest in fund, especially the funds that invest in the Egyptian Exchange (EGX). He explained that these funds are applicable to high taxes. Meanwhile, banks have issued high interest rate saving certificates, up to 20%. He noted that the company aims to boost the size of managed assets by EGP 1bn to reach EGP 9bn at the end of 2017.
Khalifa noted that the company has successfully increased the size of assets it manages by 24.3% already to reach EGP 8.06bn in the first quarter of the current year, up from EGP 6.5bn in the fourth quarter of 2016. He attributed the increase to the growth of the company’s fourth fund by 29.9% in the first quarter to reach EGP 6.7bn, up from EGP 5.2bn in the fourth quarter of 2016.
Hermes held third place with a market share of 15.18% managing 16 funds with assets valued at EGP 4.3bn in the first quarter of 2017, down from EGP 5.4bn in the last quarter of 2016, a drop of 20.7bn.
In fourth place came CI Assets Management with a market share of 10.57% through managing 10 investment funds worth EGP 2.99bn, declining by 15.5% from the fourth quarter of 2016, in which the company manged assets of EGP 3.5bn.
Arab African International Securities came was ranked fifth on the list of companies, accounting for a market share of 4.3%, boosting the size of assets it manages to EGP 1.17bn, up from EGP 1.011bn, an increase of 5.36%. The number of funds the company is managing increased from three to four.
The number of funds managed by HC reached 14 funds, which put it in the sixth place in the first quarter of 2017, with a market share of 3.3% and size of assets of EGP 944.1m, a decline of 4.22%.
NBK Capital came in the seventh place with managed assets worth EGP 617.3m, up from EGP 552.6m in the fourth quarter of 2016, growing by 11.7% through managing four investment funds, which enabled it to seize a market share of 2.18%.
Misr Capital Investment took eighth place with a market share of 1.8% with investments of EGP 516.03m in the first quarter of the current year, down by 0.51% from the fourth quarter of 2016. The company manages assets of three funds.
Prime Investments Asset Management took the eighth place managing assets of nine funds with a total investments of EGP 401.97m, down 46.26% from the fourth quarter of 2016, in which the company managed investments of EGP 747.9m. The company accounted for 1.42% of the market.
Finally, Cairo Funds Management came in tenth spot managing four investment funds with investments of EGP 333.8m, down by 6.8% from the last quarter of last year. The company took a market share of 1.18%.
Managing director and head of Asset Management at HC Securities & Investment Omar Radwan said that the company aims to boost the size of assets it manages by 25% by the end of the year.
He pointed out that his company won the management of the Etm’nan fund, which was launched in February, adding that the company aims to increase the size of assets of the new fund to EGP 100m by the end of 2017, to make it the 15th fund managed by the company.