Collective Management: 16 Investors Hold More Than Half of UCITS Assets

As of the end of 2024, the Moroccan collective management industry reported a net asset value of 653.2 billion dirhams, distributed among various categories of investors. This distribution highlights a significant concentration of assets in the hands of a small group of institutional players who largely shape and direct the market. Resident institutional investors, particularly financial companies, dominate the landscape, representing 71.9% of the total net assets. Three types of financial entities alone account for over 60% of the assets in UCITS: - Pension and retirement funds: 190.7 billion dirhams, or 29.2% - Insurance companies: 81.4 billion dirhams, or 12.47% - Banks and the Caisse de Dépôt et de Gestion (CDG): 123.9 billion dirhams, or 18.98%. Pension and retirement funds play a central role, especially in the medium- and long-term bond UCITS segment. Their weight illustrates the growing role of these players in financing the economy through the capital market. Non-financial companies hold 131.1 billion dirhams, or 20% of the total, indicating a significant use of UCITS as a cash management vehicle for liquidity surpluses. In contrast, individual investors, whether resident or non-resident, represent only 8% of the total assets (54.6 billion dirhams), highlighting the low penetration of these savings products among the broader Moroccan public. This imbalance in the ownership structure reflects a market that remains highly institutional in its composition. While it indicates the maturity of the needs and practices of large investors, it also suggests significant development potential among individual investors. On the supply side, concentration remains high. Five management companies account for 68% of the total net assets, a slight decrease from 71% in 2023. Additionally, nearly 77% of the assets are managed by companies affiliated with banking or insurance groups. However, the concentration on the liabilities side of the funds is particularly noteworthy: by the end of 2024, 51% of the total assets were held by just 16 shareholders or unit holders. Although this figure has decreased from 13 holders in 2023, it remains a point of concern for the sector. In the latest financial stability report, regulators emphasize that "the concentration of fund liabilities is a point of attention for the UCITS industry," due to the significant asset holdings by a limited number of investors. The UCITS sector, with assets nearing 800 billion dirhams by the end of July 2025, retains important growth opportunities, provided it broadens its investor base and strengthens its operational fundamentals. This is a goal that the upcoming law, expected soon, aims to support.