Islamic Fund Management
101
Chart 4.12: Islamic Mutual Funds – Net Assets Based on Asset Class (2013-2017)
Source: MUFAP (2017)
Note: The balance of PKR4.07 billion is classified as ‘others’, which include capital protected, fund of funds (CPPI),
aggressive fixed income, index tracker and commodities
In conclusion, a broad spectrum of Pakistan’s Islamic asset management industry, which
comprises Islamic mutual funds (open- and close-ended funds), Islamic pension funds (i.e.
Islamic VPS) and Islamic REITs, together with its performance are described in
Unlike Malaysia and South Africa, Pakistan had not introduced Islamic ETFs (not even
conventional ETFs) as at end-April 2018, even though regulations governing ETFs for the
Karachi Stock Exchange (KSE) was approved by the SECP in 2016. That said, the SECP formed
an ETF committee in 2017 to develop a concept paper highlighting regulatory and operational
issues that may impede the successful launch of ETFs in Pakistan (MUFAP, 2017).
Table 4.11: Performance of Pakistan’s Islamic Fund Management Industry (2017)
Islamic AuM against
Total Funds
Managed*
Islamic Mutual
Funds
Islamic Pension
Funds
Islamic
REITs
In 2017, the total AuM
of Islamic funds stood
at PKR296,241 million
(or 45%) of Pakistan’s
total fund management
industry, which was
valued at PKR664,632
million.
In 2017, there were 108
open- and close-ended
Islamic funds, with an
AuM of PKR237,819
million (or 39.8%)
compared to the entire
market’s AuM of
PKR597,095 million.
In 2017, there were 10
Islamic VPS with a
collective AuM of
PKR16,142 million (or
64%) compared to the
overall market’s AuM of
PKR25,257 million.
In 2017, there was
only 1 Islamic REIT
PKR42,280 million of
assets, representing
3.55% of the assets
of the NFBI industry.
Sources: MUFAP (2017), SECP (2017)
* The total AuM of the fund management industry in Pakistan includes pension funds managed by AMCs and
Islamic REITs. Note that the numbers given for each segment are as at June-2017.