ISLAMABAD:The collective base sector of the Non-Banking Financial Sector (NBFC) stood at Rs 2.87 trillion during the fiscal year 2022-23 as compared to Rs 2.11 trillion during the same period of last year, showing a promising annual growth of 35.9%.
According to the annual report issued by the Security and Exchange Commission of Pakistan (SECP), within the NBFC sector, the Fund Management segment of the mutual fund industry emerges as a key player.
As of June 30, 2023, the Assets under Management(AUM) of the Mutual fund industry stood at Rs 1,675
billion, showing substantial growth from Rs 1,281 billion in June 2022, marking a remarkable 30.8% increase.
The report said that the surge in AUMS can be attributed to the prevailing monetary policy situation, the major thrust of investment remained vectored towards with its flexible product structure and robust ability to incorporate dynamic shared
compliant solution both for retail and corporate segments.
In essence, the NBFCs serve as a conduit, seamlessly connecting the supply and demand side of innovative investment and savings solutions, the report said.
Money Market funds dominated the AUMs of the mutual fund industry with the largest share of 55%, followed
by Income Funds having a share of 23%. The assets under investment advisory portfolio management also showed a positive trajectory by posting 34% growth year on year basis and amounts to Rs. 476 billion as of June 30, 2023.
The report said that as of June 30, 2023, the total assets under management of 24 pension funds managed by 13 Pension Fund Managers (Voluntary Pension Systems) stood at Rs. 50.25 billion. This asset class exhibited a robust growth of
20.67% in the year under review.
Another important area in the NBFC sector which is the cardinal element for capital markets is the Private Fund
Management. Currently, there are Eleven entities holding licenses as Private Funds Managers, out of which
seven (7) entities also have licenses for Asset Management /Investment Advisory services. Furthermore, there are thirteen (13) Private Funds registered with SECP. The total asset size of the Private funds stands at Rs 8.79 billion as of June 30, 2023.
In the current year, SECP exceeded its targets by registering a total of 6 (six) new funds, all of which also have been launched. Moreover, Trust Deeds for two (2) more funds have been approved, underscoring a dynamic period of growth and development in this sector.