Apec ministers from Singapore, South Korea, Australia and New Zealand agree to develop a framework to facilitate regional cross-border fund sales in a move that could reshape the industry.
Tag : mutual funds
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 region’s funds industry saw $53 billion in net inflows in the first half of 2013, but the figure is sharply down year-on-year as a proportion of global flows.
Industry firms stump up nearly $20 million in seed capital in order to finance a state-backed online venture meant to reduce traditional distributors’ stranglehold.
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.
But private equity managers are cautious, suggesting it will take three-to-five years before any crossover is likely.
Consultancy Z-Ben Advisors lists the fund houses it believes were the biggest winners and losers in 2012. Eyes will be on equities this year, with MMFs and bond funds under threat.
But it faces challenges. “When I mentioned diversification and long-term investing [to intermediaries], they all laughed,” says new Asia head Jed Laskowitz.
AUM rises 30% in 2012 after an A-share rebound and contrived flows into money-market funds. Industry assets could surge to a new high, with equity managers in line to benefit.
This year, Japan’s investment trusts will pay around ¥4 trillion in dividends, forcing many to slash payouts or suffer negative cashflows, says Nomura Research Institute.
With bond fund redemptions and no sign of a stock market recovery, a slump is possible, although there are signs of hope. But there have been big changes in the top 10 manager rankings.