Banks to spearhead Asian fund growth
MUTUAL fund assets in Asia, excluding Japan, are expected to grow to US$495 billion by 2006, up from US$252 billion at the end of 2001, according to a recent report from consulting firm Cerulli Associates.
The rise represents a compound annual growth rate of 14 per cent, making the region one of the fastest growing retail asset management markets in the world.
The report found banks in the Asian marketplace will spearhead the distribution of mutual funds due to a dominant sales force in several countries. Their share of the mutual fund market is expected to reach 51 per cent by 2006, up from 39 per cent in 2001.
Citibank has been labelled the top distributing bank in the region after a survey of asset managers in Hong Kong, Singapore, Taiwan and Korea. Standard Chartered Bank and HSBC were the other powerful distribution players in the region, Cerulli says.
In some markets, including Singapore and Taiwan, banks could face some competitive pressure from online platform-based distribution and independent financial advisers, although the most serious threat is expected to come from insurers, the Cerulli report says.
According to Cerulli, China, which is the third largest retail asset management marketplace in the region, will be the fastest growing market in Asia going forward.
Mutual fund assets in mainland China are expected to grow from US$10.3 billion at the end of 2001 to US$37.6 billion in 2006, representing a compound annual growth rate of 29 per cent, Cerulli says.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
