Assets of non-banking financing sector up by 29pc

ISLAMABAD: As a result of efforts made by the Securities and Exchange Commission of Pakistan (SECP) in providing a transparent and robust regulatory framework based on the best international practices for the entire Non-Banking Financing (NBF) sector, the NBF asset size has increased at a steady pace during the past few years.

According to a report released by the SECP, the NBF sector’s assets stood at Rs 1,190 billion as of June 30, 2017, compared to Rs 925 billion on June 30, 2016, reflecting an overall increase of 29 per cent during the period under review.

As of June 30, 2017, the total size of the industry stood at Rs 710 billion as compared to Rs 546 billion on June 30, 2016. The total number of funds /plans stood at 228 as of June 30, 2017, as compared to 199 as of June 30, 2016.

The industry was also managing a discretionary portfolio of Rs 141 billion as of June 30, 2017.

Moreover, as of June 30, 2017, equity funds (both conventional and Shariah-compliant) dominated the assets under management of the industry with the largest share of the mutual fund industry that is 48.03 per cent.

Similarly, the income funds (both conventional and Shariah-compliant) held the second largest industry share, i.e. 17.76 per cent, followed by money market funds (both conventional and Shariah-compliant) with an industry share of 11.93 per cent.

The report added that at present, 19 NBFCs have licenses to conduct the business of investment advisory in addition to the business of asset management services while two NBFCs have an exclusive license for conducting investment advisory services. As of June 30, 2017, the total discretionary/non-discretionary portfolio held by all of the NBFCs was Rs 141 billion.

During the year, three NBFCs were granted licenses to undertake private equity and venture capital fund management services business under the newly promulgated Private Fund Regulations, 2015.

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