News

Bank domination under threat in Asia

Asia_globeThe dominant market share of banks in Asian fund distribution is under threat as other distribution channels rise in popularity, according to survey data. Banks’ share of mutual fund assets fell from 63% in 2012 to less than half of the market (46%) in 2016, said the survey from Cerulli Associates, a research firm. In China, the largest economy in the region, banks’ share of assets was 38% in 2016, said the company. Despite the declines, Cerulli Associates predicts banks will still be the leading distributors of funds for the short term. “Most managers polled said they are still keen to work with domestic banks in their respective markets, followed by global banks and insurance companies,” said a statement by the company. “This could be due to the relative ease managers encounter in developing their banking partnerships, relative to other channels.” Cerulli Associates said the potential of rival distribution channels, such as independent financial advisers and online fund platforms, would be realised “only over a longer time horizon”. ©2018 funds global asia

Executive Interviews

INTERVIEW: Operational challenges

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Caroline Higgins of Northern Trust tells George Mitton about A-share inclusion, ETF Connect and why Cayman funds predominate in the region.

INTERVIEW: Making a name

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Roundtables

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Our panel discussed robo-advisers, ETF Connect, and why the mutual recognition of funds (MRF) scheme will take time to develop. Chaired by George Mitton in Hong Kong.

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