Assets under management in Asia ex-Japan to nearly double by 2015 according to Cerulli Research...

Nov. 11, 2011 - PRLog -- Assets under management in Asia ex-Japan & Australia (hereafter, “Asia”) are expected to nearly double to US$4 trillion by 2015, underpinned by an expanding middle class, new pools of insurance and retirement assets, and increased interest from foreign investors, according to a recent study by Cerulli Associates, co-sponsored by Mirae Asset Global Investments Group (“Mirae Asset”) and Citi.

‘Mirae Asset is pleased to co-sponsor this research, which goes a long way to providing an answer to whether we, as local Asian asset managers, have a substantial information advantage over Western managers toward alpha generation in the region,’ said Jae Sang Koo, Vice Chairman and CEO of Mirae Asset Global Investments. ‘As one of the largest investors in emerging markets equities1 (“Mirae Asset”), we recommend this study as a timely insight into the challenges and opportunities for asset managers within the region.’

The report, entitled ‘Picking High-Hanging Fruit: Competition Intensifies Between Asian Managers and Foreign Firms’, highlights that Asia could become one of the largest regions for asset management in the world, with China likely to be the principal engine of this growth, while Korea will continue to be a considerable force.

Other key findings in the report include:

*    Mini-QFII (qualified foreign institutional investor) could transform the power and influence of Chinese domestic asset managers. As the RMB becomes a more widely accessible and tradable currency, this will feed through into product demand, with investors increasingly seeking exposure not just to Chinese assets, but also to the currency itself.

*    ETFs (exchange traded funds) do not yet account for significant assets under management in Asia compared to mutual funds, but they are beginning to capture the popular imagination. At the same time, since the Chinese offshore mutual fund market is likely to be the main engine of the region’s growth, mutual funds will still be key to retail growth.

*    Institutional clients are increasing in sophistication, but this is not at all good for external managers. In contrast to the opening up of insurers, more and more pension and sovereign funds will start to look like Singapore’s Temasek and GIC, or institutions that don’t generally need outside help.

*   There are certainly examples of investment platforms and independent financial advisors gaining traction in Asia, but compared to the power of the banks as distributors, it’s not yet significant.

*    Competition between Asian and Western managers will play out globally, not just locally. Western players will have their commitment to Asia tested, particularly if they are unable to provide the right vehicles and strategies.

The report concluded that the future is bright for the Asian asset management industry, but it’s not automatic that the industry will grow in tandem with the pace of underlying economies.

Cerulli conducted a survey of some of the biggest and most prominent local and international asset managers operating in Asia for the report. In total, 30 asset managers, representing 32% of assets under management in the region, took part in this survey.

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About Mirae Asset Global Investments Group
Mirae Asset Global Investments Group is one of the largest investors in emerging market equities¹. With around 550 employees, including more than 190 dedicated investment professionals (as of 30 June 2011), Mirae Asset Global Investments Group has a presence in Hong Kong, China, Korea, India, Vietnam, Taiwan, Brazil, the United Kingdom and the United States. Mirae Asset Global Investments Group manages over US$53 billion in assets globally (as of 30 June 2011).

www.miraeasset.com

About Cerulli Associates
Cerulli Associates is a Boston-headquartered independent asset management research firm with international offices in London and Singapore. The firm was established 20 years ago, and produces actionable research on asset management markets in over 45 countries around the world. For more information on Cerulli and the research we undertake, please visit www.cerulli.com.

About Citi
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.


¹ One of the largest investors in emerging market equities amongst 54 asset management firms surveyed – Investing
in Emerging Market Equities Survey, Investment & Pensions Europe (IPE), Jan., 2011


For further enquiries:

Jasmine Yap, Citigate Dewe Rogerson
+852 - 3103 0108
jasmine.yap@citigate.com.hk

Jason Tse, Citigate Dewe Rogerson
+852 - 3103 0106
jason.tse@citigate.com.hk

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The Mirae Asset Financial Group provides a broad range of financial services, including asset management, securities, life insurance, capital, venture investment and real estate. The group employs over 11,000 people around the world.