The moroccan collective investment sector in securities (UCITS) continues to be dominated by a small number of key players, according to the 12th annual report on financial stability. In 2024, five companies manage 68% of the total net assets within the sector, which comprises nineteen active organizations.

This concentration underscores the significant influence of leading management companies. Subsidiaries of financial institutions – encompassing banks and insurance providers – collectively control 76.79% of all assets under management, as detailed in the report jointly published by Bank Al-Maghrib (BAM), the Authority for Insurance and Social Provident (acaps), and the Moroccan Capital Market Authority (MA).

The concentration extends to fund liabilities as well. A mere 16 shareholders hold 51% of the total assets under management as of the end of 2024,a rise from the 13 shareholders who held the same proportion in 2023.

UCITS net assets experienced considerable growth, increasing by 16.7% from 559.8 billion dirhams (MMDH) at the close of 2023 to 653.2 MMDH at the end of 2024. This growth was driven by strong net inflows, especially into Middle Long term bond Funds (MLT), and positive performance across all UCITS categories, including “actions” and “diversified” funds.

Resident institutional investors are the primary holders of UCITS liabilities, with financial companies accounting for nearly 71.9% of total net assets.This includes provident and retirement organizations (29.2%), insurance companies (12.47%), and banks and the deposit and management fund (18.98%).

Non-financial companies hold 20% of net assets, highlighting the role of UCITS in cash management, while individual investors – both resident and non-resident – represent 8% of the total UCITS assets.

The number of UCITS unit and shareholders increased by 12% in 2024, reaching 25,888 individuals, compared to 23,186 in the previous year. Securitization activity, however, decreased, with emissions totaling 2.43 MMDH and total outstanding amounts reaching 17.43 MMDH in 2024, down from 4.3 MMDH and 17.8 MMDH respectively in 2023.

Background on Morocco’s UCITS Sector

Morocco’s UCITS sector has been steadily developing over the past two decades, aiming to provide investors with diversified investment opportunities. The sector’s growth is closely linked to the overall economic development of Morocco and the increasing sophistication of its financial markets. Historically, the sector was dominated by a few large banks, but in recent years, there has been a gradual increase in the number of independent asset management companies. regulatory frameworks, overseen by Bank Al-Maghrib and the Moroccan Capital Market Authority, have been crucial in fostering stability and investor confidence.

Frequently Asked Questions about moroccan UCITS

• What are UCITS in the context of Moroccan finance?

  UCITS, or Undertakings for Collective Investment in Transferable securities, are investment vehicles that pool funds from multiple investors to invest in a diversified portfolio of securities. Thay are a key component of Morocco’s financial market, offering investors access to a range of investment options.

• How concentrated is the Moroccan UCITS market currently?

  The Moroccan UCITS market remains highly concentrated, with five companies controlling 68% of the total net assets in 2024. This indicates a limited number of dominant players within the sector.

• What role do financial institutions play in Morocco’s UCITS sector?

  Financial institutions, including banks and insurance companies, play a significant role, managing 76.79% of the overall net assets in UCITS. Their subsidiaries are the primary drivers of asset management within the sector.