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Malaysia fund industry assets edge up 0.12% in July on bond gains

By Asia Asset Management  
Sep 9, 2019

Malaysia’s fund management industry's assets climbed 0.12% in July from gains in bond funds.

The industry had 804.01 billion ringgit (US$191.97 billion) of total assets under management as at July 31, up from 803.06 billion ringgit at the end of June, according to latest data posted on Securities Commission Malaysia’s (SC) website.

Assets increased 8.13% between January and July, from 743.58 billion ringgit at the end of 2018.

The SC typically posts the data without providing analysis.

A fund manager at a local asset management company expressed surprise that the industry managed to "hold its ground" in a month when domestic stocks declined.

The benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index fell 2.23% in July following a 1.29% gain in June.

"With the increasing market volatility due to US-China trade talks uncertainties, investors are increasing their exposure to safer bets like bond funds. This trend should continue over the next few months," the Kuala Lumpur-based fund manager tells Asia Asset Management, speaking on condition of anonymity.

The SC’s figures show that assets of bond funds rose 2.37% to 176.93 billion ringgit in July while stock funds fell 1.15% to 386.19 billion ringgit. Assets of these funds gained 11.35% and 9.94%, respectively, since the beginning of the year.

Assets of feeder funds, which invest in other investment funds, were up 2.06% to 31.22 billion ringgit in July, and rose 14.53% from January.

Assets of private equity and unlisted stocks fell 1.07% to 13.82 billion ringgit in July and were up 17.42% since the beginning of the year.