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Malaysia fund management industry assets close at record high in October

By Asia Asset Management  
December 9, 2019

Malaysia’s fund management industry closed out October with a record high 822.44 billion ringgit (US$197.08 billion) of assets as improved investor sentiment buoyed the domestic stock market.

Assets were up 1.29% from 811.93 billion ringgit in September, and increased 10.61% from 743.58 billion ringgit at the end of 2018, according to latest figures published on the website of Securities Commission Malaysia, which typically doesn’t include analysis.

The data online dates back to 2016 and shows that the fund management industry’s assets have never before closed above the October 2019 level.

Stock funds were up 2.15% month-on-month to 390.53 billion ringgit in October, and rose 11.17% from the beginning of the year.

According to a fund manager at a Malaysian asset management firm, stocks were lifted partly due to improved investor sentiment on the possibility of a truce in the US-China trade war after US President Donald Trump said the two countries are working on an agreement.

"At that time, investors were expecting both countries to sign a so-called phase one trade deal 'soon'. So, optimism improved,” the Kuala Lumpur-based fund manager tells Asia Asset Management, speaking on condition of anonymity.

Bond funds climbed 0.45% to 180.50 billion ringgit in October, and gained 13.59% since January.

Money market funds, which invest in treasury bills, commercial paper and other short-term debt, were up 0.48% month-on-month to 163.32 billion ringgit, but fell 3.11% from the beginning of the year.

Assets of private equity and unlisted stocks rose 7.25% to 15.09 billion ringgit in October, and jumped 28.21% from January.