The proposed scheme will fail to live up to the hype initially because the size of the opportunity needs to be put into perspective, says Shiv Taneja of Cerulli.
Tag : cerulli
Mutual fund managers, facing asset retention issues, are increasingly turning to private bank and insurers for distribution, says Cerulli, but fierce competition will keep the shift gradual.
As Southeast Asians accumulate wealth, they will likely invest more in non-traditional assets, including real estate and insurance products. That looks set to deplete industry AUM.
The initial batch of four products listed in Hong Kong, which attracted $6.4 billion in inflows last year, suffered a combined exodus in February, raising questions for future launches.
Following last year's reversal of a three-year fall in mutual fund assets in Asia ex-Japan, Cerulli Associates expects industry growth to continue at a healthy pace.
The shift has come at the expense of double-decker funds, which saw net flows turn negative last year.
Sino-foreign asset management joint ventures raise more money when the foreign partner is not active, finds Cerulli Associates.
