Nine out of 10 Asian institutions express concern over the Fed's QE slowdown and prospect of rising rates. As they diversify they should outsource more, says Greenwich Associates.
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Compensation is increasing for Asian equity and fixed income buy-side professionals, with investor inflows to the region forecast to drive salaries nearer to US levels, finds Greenwich.
Asian institutions are diversifying rapidly, so must seek more external expertise and move away from the insourcing trend, argues Greenwich.
They reveal a smarter way to work for asset managers, who are expected to focus more on private banks. But institutional sales hold the key.
They say fund sales will be boosted if they are equipped with better product knowledge and more timely information.
Despite growth in Asian fixed income trading, there are signs that many banks have abandoned plans to build a pan-Asia platform in favour of more targeted strategies.
Projections suggest total compensation in Asia is up 8% in fixed income and 10% in equities this year, rising quicker than in the US, although Asian professionals still earn substantially less than their US counterparts.
Greenwich Associates highlights an increase in Asia in the use of external managers and outlines institutional investor expectations on asset allocation and manager hiring.
Corporate and financial firms want to know more about the likely impact of central clearing of over-the-counter derivatives, according to Greenwich Associates. A big issue among Asian firms is that of local-currency contracts.
