KUALA LUMPUR: Assets under management (AUM) of the investment management industry continued its upward trajectory, reaching RM1.07 trillion as of Dec 31, 2024, up from RM975.48 billion in 2023.
The Securities Commission Malaysia (SC) said in its Capital Market Stability Review 2024 released today that the growth reflects the combined effects of a favourable performance across both regional and domestic markets alongside mild net injections during the year.
“Positive market valuation effects from equities have positioned unit trust funds (UTF) as one of the major drivers of AUM growth,” it said.
SC said that the composition of AUM sources also demonstrated stability throughout the year.
“Domestic sources continued to dominate, accounting for 97.08 per cent of total AUM, with foreign sources making up the remaining 2.92 per cent,” it said.
It said that among AUM categories, UTF retained its largest share of AUM at 51.08 per cent, followed by the Employees Provident Fund (EPF) at 19.48 per cent, and corporate bodies at 11.41 per cent.
“Together, these three categories accounted for over 80.00 per cent of total AUM. Contributions from other sources remained marginal, with each single-digit percentage, underscoring consistency in the structure of AUM sources,” it said.
Despite the increase in AUM, the SC said that asset allocation trends remained largely stable, with each component fluctuating by less than 1.00 per cent year-to-date (YTD), except for equity which edged up 1.58 per cent YTD indicating no material shift to the aggregate risk profile of AUM.
The SC said that domestic assets dominated the geographic allocation of AUM, accounting for around two-thirds (67.77 per cent) of total AUM (2023: 66.24 per cent), while the remaining 32.23 per cent (2023: 33.76 per cent) was allocated to foreign assets.
“Geographical asset allocation was largely stable for the year with allocation into the domestic assets registering a minimal YTD increase of 1.53 per cent.
“Foreign asset allocations experienced a mild decline, with a few notable exceptions that registered only marginal increases,” it added.
