Documenti di Didattica
Documenti di Professioni
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December 2008
With 270 pages and 253 This report focuses on the Islamic asset management marketplace globally and addresses marketsizing, product
exhibits, this report contains the development, and distribution strategies. Coverage includes the key Gulf States, Malaysia, the large Muslim popula-
following sections: tion centers such as Pakistan and Indonesia, offshore centers such as the Cayman Islands, and non-Muslim markets
• Marketsizing such as South Africa and the United States. Each country segment examines recent industry trends, regulatory devel-
• International Strategies opments, and future growth opportunities.
• Product This report allows asset managers to: This report allows mutual fund distributors to:
• Distribution
• Assess market potential and target opportunities • Examine product development trends
• GCC Nations
• Understand market dynamics and product develop- • Analyze fee trends for fund distribution
• Saudi Arabia ment trends
• Other GCC • Determine the state of distribution across various
channels
• Other Asia
• Consider market entry potential and examine buy ver-
• Other Countries sus alternative strategies
• Offshore Centers
Sample Report Exhibit
Shariah Mutual Fund Assets Under Management, 2003-October 2008 (US$ billions)
CAGR (2003-October 2008) = 22.7%
$40 120%
109%
$35 100%
$35.0
Table of contents, exhibit $30 $32.5 80%
list, user examples, sample $25 60%
$32.8
pages, and firm list are attached $20 40%
40%
$23.2
$15 20% 20%
8%
$10 0%
$13.0 $15.7
$5 -20%
-29%
$0 -40%
2003 2004 2005 2006 2007 October 2008
11-15 Betterton Street • Price: US$12,000 To order this report or for more information,
London WC2H 9BP • Faxable order form attached log on to our website at www.cerulli.com or contact:
+44 20 7470 8817 • Purchase includes hardcopy, online access, Marketing & Business Development
exhibits in Excel, Key Findings in PDF, PowerPoint +1 617-437-0084
www.cerulli.com presentation, and a web recording of an analyst CAmarketing@cerulli.com
presentation
C The Cerulli Report
A
C e r u l l i
A s s o c i a t e s
Shariah Investing: Market Sizing and
Analysis
USER SCENARIOS:
The following are examples of how this report can be applied to business planning and strategic
decision-m
making:
Scenario 1: A U.S.-based asset management firm is exploring asset management opportunities in Shariah
compliant form of investments. Before they make any serious commitments, they need an assessment of
the opportunities available, and how these opportunities align with their other business plans. Shaariaah
Investing: Maarket Sizing and Anaalysis provides insight into the following questions:
• How big is the Shariah-complaint mutual fund marketplace relative to the conventional mutu-
al fund market? (Exhibits 1-5, 8, 17)
• What products are available, and what are the trends and challenges in product develop-
ment? (Exhibits 15-18)
• Is it true that Shariah Mutual funds largely invest into their domestic market, and what are
the opportunities for international investment expertise? (Exhibit 21)
• What is the sales opportunity for Shariah-compliant mutual funds and how are they expected
to change over the next three years? (Exhibit 19)
Scenario 2: A U.S.-based asset manager is considering offering Shariah investments to its clients, and is
examining the distribution strategies involved to reach demand. Shaariaah Investing: Maarket Sizing and
Anaalysis gives an overview of the Shariah-compliant wealth management industry, including distribution
dynamics, and helps answer the following questions:
• What is the demand across various client segments? (Exhibit 36, 37)
• How does demand differ between institutional and retail investors? (Exhibit 20)
• What are the distribution opportunities and challenges as perceived by local and international
players? (Exhibits 40, 43, 44)
Scenario 3: A Europe-based private bank is approached by a high-net-worth client for Shariah investments
in Saudi Arabia. Shaariaah Investing: Maarket Sizing and Anaalysis, with its in-depth country analysis, provides
answers to the following questions:
• How big is the Shariah market in Saudi Arabia? (Exhibit 54)
• What Shariah products are available and what are typical fee charges? (Exhibits 57, 59, 61)
• Which managers operate in the market and what are their areas of expertise? (Exhibits 56, 58)
• Who are the key buyers of Shariah-compliant funds and what are they looking for? (Exhibit 67)
For more information on how to apply this report to your firm’s unique needs, please contact our Marketing
& Business Development team at +1 617-4437-00084, CAmarketing@cerulli.com.
C
A
C e r u l l i
A s s o c i a t e s The Cerulli Report
Shariah Investing: Market Sizing and
Analysis
To purchase this report, fill out this form and fax to +1 617-437-1268 or visit our website at
www.cerulli.com.
Marketing & Business
Development Name:
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Firm:
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Special Feature:
To view thumbnails of the contents of this report, please visit our
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EXHIBIT 3: SHARIAH ASSET BREAKDOWN, OCTOBER 2008 EXHIBIT 41: ISLAMIC BANKS AND THEIR ISLAMIC DEPOSITS, EXHIBIT 68: TOTAL ASSETS AND NUMBER OF CONVENTIONAL EXHIBIT 118: PAKISTANI ISLAMIC FUND RANKING,
(US$ BILLIONS) 2008 VS. SHARIAH-COMPLIANT INVESTMENT COMPANIES, MARCH–SEPTEMBER 2008
2005–JUNE 2008
Mandates (foreign managers), Mutual funds (local managers), Total Islamic Rank Fund Name Fund Type Manager
Inception
US$20.0 bn, 31% Bank Marketshare
US$33.6 bn, 51% Deposits (US$ m) Date
KWD30 50
Bank Islam 3,745 20% 1 Meezan Islamic Income Fund Islamic income fund Al Meezan Investment Management Limited Jan-07
Maybank 3,713 20% 44 2 Meezan Islamic Fund Islamic equity fund Al Meezan Investment Management Limited Aug-03
Bank Muamalat 2,734 15% 3 United Islamic Income Fund Islamic income fund UBL Fund Managers Limited Oct-07
25 40 40 43
RHB 1,868 10% 40 4 United Composite Islamic Fund Islamic asset allocation fund UBL Fund Managers Limited Dec-06
HSBC 1,079 6% 39 5 KASB Islamic Income Fund Islamic income fund KASB Funds Limited Jun-08
OCBC 647 3% 33 33 6 NAFA Islamic Income Fund Islamic income fund National Fullerton Asset Management Limited Oct-07
Standard Chartered 179 1% 20 7 Pakistan International Element Islamic Fund Islamic equity fund Arif Habib Investment Management Limited May-06
Citibank 175 1% 24.8 30 8 Meezan Capital Protected Fund – I Islamic capital-protected fund Al Meezan Investment Management Limited May-08
Others 4,590 25% 9 NAFA Islamic Multi Asset Fund Islamic asset allocation fund National Fullerton Asset Management Limited Oct-07
Total 18,730 100% 15 23 21.3 10 UTP Islamic Fund Islamic equity fund JS Investments Limited Dec-02
Cerulli Associates
11 Dawood Islamic Fund Islamic asset allocation fund Dawood Capital Management Limited Jul-07
Mandates Sources: Prudential, Cerulli Associates 20 12 Atlas Islamic Fund Islamic equity fund Atlas Asset Management Limited Jan-07
(local managers), 15.5
US$10.4 bn, 16% Mutual funds 10 13 Alfalah GHP Islamic Fund Islamic asset allocation fund Alfalah GHP Investment Management Limited Sep-07
(foreign managers), 14.0 14 Atlas Islamic Income Fund Islamic income fund Atlas Asset Management Limited May-08
US$1.4 bn, 2% It should be noted that the Islamic banking channel comes in two
10
forms: there are free-standing Islamic banks, and there are Islamic windows 5 Mar-08 Jun-08 Sep-08
Source: Cerulli Associates
Rank Fund Name AUM Market- AUM Market- AUM Market-
Note: Saudi Arabian institutions with partial foreign ownership are considered local managers. There are 300 Islamic of conventional banks. The latter group has the advantage of being able to use 4.1 4.8 (PKR bn) share (PKR bn) share (PKR bn) share
institutions and 1.6 2.6
windows
existing, long-established conventional branch networks, provided there is 0 0 1 Meezan Islamic Income Fund 6.6 31.1% 5.7 28.3% 5.3 29.0%
2 Meezan Islamic Fund 5.9 27.8% 6.0 29.8% 4.3 23.7%
Boston MA 02116
although market turmoil in 2008 has meant a more sober 8% year-on-year GLOBALLY, 2008 12 Atlas Islamic Fund 0.7 3.1% 0.6 3.0% 0.4 2.2%
growth as at the end of the third quarter, and by the time year-end 2008 fund 13 Alfalah GHP Islamic Fund 0.4 2.1% 0.4 2.0% 0.4 2.0%
Others, 7, 4% Africa, 19, 12%
CBK data then breaks down further, into portfolio investment and 14 Atlas Islamic Income Fund N.A. N.A. N.A. N.A. 0.1 0.5%
numbers are available, the growth figure may well have declined further. Curious data from Total 21.3 100.0% 20.3 100.0% 18.3 100.0%
investment fund assets. Investment fund assets in Kuwait totaled KWD3.7 Kuwait’s central Sources: Mutual Fund Association of Pakistan, Cerulli Associates
Overall, we calculate a total compound annual growth rate of 23% from 2003
billion in June 2008, or US$14.1 billion; however, Cerulli has argued before
bank
to October 2008. Asia, 41, 26%
that this figure underestimates the true size of the Kuwaiti mutual fund Proprietary Survey of Pakistani Managers
A look at the way the number of funds has changed over time gives
industry, since many Kuwaiti managers domicile their funds elsewhere, Many people feel that one of the biggest challenges for Islamic
perhaps a clearer sense of momentum. The total number of funds really began
30 Shariah Investing: Market Sizing and Analysis 92 Shariah Investing: Market Sizing and Analysis Shariah Investing: Market Sizing and Analysis 131 Shariah Investing: Market Sizing and Analysis 203
28 Maxwell Road
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www.cerulli.com
INDEX OF EXHIBITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
REPORT SCOPE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
Beneficiaries of this Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
Report Roadmap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
Market Sizing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Saudi Arabia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Other Markets with Shariah Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
Prognosis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
EXCHANGE RATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
INTRODUCTION AND MARKET SIZING . . . . . . . . . . . . . . . . . . . .24
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
Market Sizing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
Calculating the Numbers: Mutual Funds . . . . . . . . . . . . . . . . . . . .26
Calculating the Numbers: Mandates . . . . . . . . . . . . . . . . . . . . . . .27
Local Mandates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
Multinational Mandates . . . . . . . . . . . . . . . . . . . . . . . . . . .29
Changes Over Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
Where the Money Is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
Shariah Assets and the Credit Crunch . . . . . . . . . . . . . . . . . . . . . . . . . . .32
Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
Prognosis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
INTERNATIONAL STRATEGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
Other Approaches to Shariah Asset Management . . . . . . . . . . . . . . . . . .40
International Players . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
Product Opportunities and Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . .43
Distribution Opportunities and Challenges . . . . . . . . . . . . . . . . . . . . . . .48
Prognosis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
• Asset Management in the Middle East is our first report for the region
focusing on market sizing, product development, and distribution trends
in the Middle East. This report includes proprietary surveys conducted
in Saudi Arabia, the UAE, and Egypt.
Our analysts are especially grateful for assistance from the following:
• Eurekahedge
• Securities Commission, Malaysia
• Bank Indonesia
• Mutual Fund Association of Pakistan
• Saudi Arabian Monetary Agency
• Central Bank of Kuwait
• Central Bank of Bahrain
• Central Bank of the UAE
• Dubai International Financial Centre
• Qatar Financial Centre
• Central Bank of Oman
• Muscat Securities Market
• Central Bank of Egypt
• Cairo and Alexandria Stock Exchange
Report Roadmap
• The regional chapters set the stage for the rest of the report and are a
summation of the quantitative analysis, supported by a qualitative
assessment of the opportunities within the Islamic asset management
space and a prognosis of future growth.
Global,
US$69 m, 8.8%
Asia Pacific,
Middle East/Africa, US$528 m, 67.2%
US$189 m, 24.0%