MARKET PLAYERS HAVE BECOME MORE CAUTIOUS
Time has come for the BANKER weekly to present the 2008 Q2 rating of management companies. As of end June the number of licensed companies was 36 vs 26 a year earlier. They manage a total of 77 collective investment schemes, 11 of which are investment companies (of open and closed type) and the others are contract funds.
During the above-mentioned period four more candidates: Astra Asset Management AD, Buldev Asset Management AD, Capital Markets Asset Management AD, and Ultima Capital Management EAD, have got a permission to operate as fund managers.
Twenty companies received points in the rating, but only 11 of them have the right to take part in the final ranking according to its rules. It should be noted that six of the managing companies were in Top 10 as per all the five criteria. There are no significant changes of position of the top management companies in the April-June 2008 period. Nine of those in the ranking for the 2007 Q2 are present in the current ranking as well. The tradition of renewal in the end of each period continues and now a new company - Standard Asset management - has entered the Top 10, replacing KD Investments.
The sole leader for the 2008 second quarter - Elana Fund Management (with 44 of the maximum possible number of 50 points) sent the No 1 from the ranking for the 2007 Q1 - DSK Asset Management, to the second position.
According to information of the Bulgarian National Bank (BNB), the total amount of managed assets (pubic and non-public) in 2008 Q2 is BGN612MN, up from BGN562.8MN a year earlier. The highest value is the portfolio of TBI Asset management where BGN153.317MN has been accumulated, up from BGN112.208MN in end-June 2007. The company's fair performance is also due to the fact that it manages the assets of some institutional investors as well, which are within the portfolio of TBI Bulgaria.
The net worth of publicly accumulated assets indicator, i.e. those which are in contract funds and investment companies alone, shows us the investors' interest towards the collective investment schemes, offered on the market. The fact that 27 new mutual funds have been developed during the past one-year period is indicative in itself. The leader in Top 3 - Elana Fund Management - which manages six contract funds already, has added almost BGN25MN to its portfolio, amounting to BGN93.986MN.
The amount of assets which each company will manage depends on the number of collective investment schemes it has organized. The dynamics in the development of that segment of non-bank financial services is predominantly demonstrated in the growth of their quantity. From the 36 licensed companies, 28 have at least one mutual fund. We can also witness a beginning differentiation between the various players: Elana Fund Management and BenchMark Asset Management have already emerged as market leaders, each offering shares in six financial products.
Another criterion the BANKER weekly has been watching is the number of closed contracts for management of assets. It indicates how much the management company is known within the investment community and is an evaluation about what has been achieved so far and about the future plans of development. Of course, we should make a distinction between the scope of each company's activities. Therefore, the ranking in this case is somewhat conditional, but anyway according to the data we have, those with a fair performance are Invest Fund Management (owned by Investbank) and Karol Capital Management, which have closed 79 and 76 contracts respectively.
As collective investment schemes have been set up to attract people with less money at their disposal, the BANKER has also included in the rating the total number of individual clients criterion. We can say that is an image indicator. And it's not accidental that the first seven in the rating are among the most outstanding in the banking and non-banking sector over the last ten years or so and have more than 1,000 clients who are natural persons. The ranking in the Top 3 is not a surprise. Elana Fund Management and Kapman Asset Management are part of financial groups, covering all non-banking services, and DSK Asset Management confirms the reputation of its founder, DSK Bank.
Elana Fund Management AD 43
DSK Asset Management AD 36
Karol Capital Management EAD 36
Raiffeisen Asset Management EAD 36
TBI Asset Management EAD 31
BenchMark Asset Management AD 28
Kapman Asset Management AD 19
UBB Asset Management AD AD 15
Somoni Asset Management AD 11
Standard Asset Management AD 11
Note: The maximum number of possible points is 50