ETFs to gain from fee transparency moves

ETFsExchange-traded funds (ETFs) are likely to be promoted as part of a move toward greater fee transparency in Asia. The prediction from consultancy Cerulli Associates comes as regulators in Hong Kong, Korea, India and Singapore consider whether to enforce more disclosure of the costs borne by mutual fund investors. “As the initiatives are aimed at reducing costs for end-investors, there could be further efforts by regulators to promote exchange-traded funds as a low-cost solution to investors, and online platforms, along with robo-advisory channels,” said the consultancy. Fee transparency has become a hot topic in developed markets such as the UK, which in 2013 implemented the retail distribution review (RDR), a set of rules aimed at revealing the true cost to retail investors of financial advice. Cerulli reports that some international asset managers welcome greater transparency in markets such as Hong Kong, which they see as lagging behind developed-market standards. However, some Asia-based managers are opposed to this kind of regulation, believing it is not needed or is inappropriate. These critics, “believe that Asian markets and investors' behavioural traits are different from those of international markets”, said Cerulli. ©2017 funds global asia

Executive Interviews

INTERVIEW: Joining the family

Dec 12, 2017

An acquisition has increased the visibility of Natixis investment managers in Australia. George Mitton talks to its local chief executive.

INTERVIEW: ‘It cannot be excluded’

Sep 27, 2017

Bond Connect’s launch means China’s onshore bond markets are more accessible than ever. Mo Ji, an economist at amundi, tells George Mitton why that matters.


REAL ESTATE ROUNDTABLE: In search of a home

Jul 17, 2017

From Korean warehouses to Chinese hospitals, investors’ holding periods are growing in Asia. But in a market awash with liquidity, so is competition for assets. Our panel in Hong Kong discuss real estate investment.

ROUNDTABLE: More transparency, less certainty

Mar 20, 2017

Our panel discussed exchange-traded funds, regulatory overdrive and whether mutual fund recognition has been a failure. Chaired by George Mitton in Hong Kong.