Beltone holds 38.8% of asset management market, Hermes manages largest number of funds

Arab African International Securities targets EGP 7bn in managed assets by year-end

Beltone Asset Management took the lead in asset management among 20 others with a market share of 38.8% managing 12 funds, totalling EGP 19.5bn in the first half (H1) of 2019, up 11.06% compared to H2 of 2018.
Al Ahly Financial Investments Management ranked second with six funds, totalling EGP 13.8bn assets in H1 of 2019, compared to EGP 11bn in H2 of 2018, a growth of 25.5% year-over-year, to acquire a market share of 27.3%.
EFG-Hermes continued to lead the list in terms of fund management with 18 funds, ranking third in terms of assets with a value of EGP 8.16bn to capture 16.19% market share.
Arab African International Securities increased its managed assets' value by 14.9% to reach EGP 2.3bn during H1 of 2019, compared to EGP 2.07bn in H2 of 2018, coming in fourth place with a market share of 4.7%.
Mohamed Mostafa, managing director of the Arab African International Securities, said the value of funds managed by the company reached EGP 6.2bn at the end of June 2019, a growth rate of 9% since the beginning of this year, adding that the assets managed by the company is divided between EGP 2.4bn worth mutual funds representing 39% of total assets, and the remaining 61% are worth EGP 3.8bn in financial portfolios.
He added that his company aims to increase the value of funds it manages by the end of the year to reach EGP 7bn.
Mostafa pointed out that the company is currently promoting “Horizon Fund” to invest in private insurance funds, the latest product launched by the company last month. The company has agreed with a major financial institution to launch another new fund in the fourth quarter (Q4) of 2019.
He explained that the asset management industry is facing price competition, as some companies reduce their commissions excessively, up to zero, which is harmful to the industry, calling on the Financial Regulatory Authority (FRA) to temporarily suspend granting new licenses to companies and reconsider the capital value of working companies and raise the limit.
CI Capital Asset Management ranked fifth, managing nine funds with assets amounting to EGP 2.1bn, grabbing a market share of 4.19%, followed by HC Asset Management with 15 funds, totalling EGP 1.04bn worth assets.
Prime Investment ranked seventh with eight funds of EGP 656.1m assets in H1 of 2019, compared to EGP 723.1m in H2 of 2018.
NBK Capital came in the 8th place with four funds, a market share of 1.29%, and managed assets of EGP 651.7m, growing by 14.9% over H2 of 2018.
Misr Capital Investments acquired 1.27% market share in ninth place by managing three funds with assets of EGP 641.1m, while Rasmala Egypt Asset Management ranked tenth with EGP 515.4m managed assets from two funds.
On the other hand, Azimut Group obtained the approval of the FRA to complete its full acquisition of Rasmala Egypt.
Rasmala Egypt, in cooperation with Azimut, is seeking to introduce new products to the market in the coming period.
Rana Adawy, chairperson of Acumen, predicted the asset management market will rebound in line with successive interest rate cuts. She noted that the Egyptian Exchange performance has been weak since the beginning of the year, which curbed the growth of assets.
She revealed that Acumen aims to boost the size of the assets under management to EGP 2.1bn by the end of the year, an increase of EGP 400m from the current size.
Adawy added that the company is currently negotiating with two banks to establish two investment funds and the deal to be announced before the end of September, declining to disclose any details.