The Asia-Pacific (APAC) region has come to the fore as a key driver of global fund sales growth, contributing to more than a quarter of flows over the past decade, a new study has shown.
While the report conducted by Broadridge Financial Solutions, a financial technology company, reveals that the region is a strong contributor to global fund sales, it accounts for just 10% of global fund assets under management, lagging the US and Europe.
The key findings show that while passporting Ucits funds into certain jurisdictions has been successful for some global asset managers; others face a choice between joint ventures, partnerships, sub-advisory or a local presence. Hence, finding an appropriate entry strategy is crucial.
Local regulators are also intent on fostering change in the region’s markets, such as “encouraging onshore over offshore distribution in Taiwan,” according to the ‘APAC Distribution 360’ study.
With a huge population of more than 250 million people, Indonesia has also been identified as “a huge growth market for investment managers, but one presently with limited entry points without a local presence.”
Yoon Ng, director at APAC Insights at Broadridge and a co-author of the report, said: “While APAC has long been a growth market for global fund sales, a highly varied distribution landscape has posed challenges for large asset managers and many are increasingly looking to markets such as China and South East Asia as the number of middle class and high-net-worth investors continue to climb.”
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