Thu, Jun 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Cerulli survey shows that Asian institutions increasingly outsource their assets to external managers

Monday, November 14, 2011
Opalesque Industry Update - Research firm Cerulli Associates predicts that by the end of 2011, US$1.07 trillion of Asian institutional assets will be accessible to external managers. This figure shows that 11.4% of the Asia ex-Japan region’s total investable assets will be going to external managers, an upward revision from Cerulli’s previous forecast. Institutional investors in the region have continued to outsource assets as they recovered from the 2008-9 financial crisis.

Institutional investable assets in the region totaled US$8.6 trillion by December 2010, a 13.2% rise from end 2009, according to the Cerulli Quantitative Update: Institutional Asset Management in Asia 2011. The figure shows a compound annual growth rate of 18.9% between 2006 and 2010, as assets doubled in absolute terms over the same period.

Looking forward, Cerulli estimates that, as long as there are no more major market or policy related incidents, investable assets will expand to US$13.6 trillion by 2015, of which they expect 12.7% will likely be outsourced to external managers by 2015.

“The extent of outsourcing varies among types of institutions. For example, Asian state pension funds’ proportion of outsourced assets is growing faster than average, having expanded to 18.7% in 2010 from 10.8% in 2006,” said Ken Yap, Cerulli’s Singapore-based director and head of Asia-Pacific research. “On the other hand, institutions like corporates/commercial banks and insurance firms still prefer to manage much of their money internally.”

There has been a change in external managers’ appetite for investing on behalf of institutions since the financial crisis, according to Cerulli. “Although state pensions’ outsourcing has been growing relatively fast, pension funds are no longer the most attractive source of institutional assets for external managers” the firm says. The survey in 2009 shows that external asset managers regarded pensions as the most significant source of institutional assets. However, more recently, central banks and quasi-government organizations have replaced pensions as the biggest source of institutional assets. Cerulli believes that this could partly be due to stiffening competition for pension funds’ mandates. Source

Beverly Chandler

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  2. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  3. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  4. People - Mariner Investment’s co-CIO Williams to leave $5.5bn firm, IOOF hires new alternatives portfolio manager[more]

    Mariner Investment’s co-CIO Williams to leave $5.5bn firm From Bloomberg.com: Basil Williams, co-chief investment officer of Mariner Investment Group, is leaving the $5.5 billion hedge-fund firm after negotiations to renew his contract failed. Williams will stay in his role until t

  5. Hedge Fund Due Diligence Exchange offers complete due diligence reports at $1500[more]

    Matthias Knab, Opalesque: HFDDX is offering complete alternative investment due diligence reports at $1500 US. Industry professionals can simply go to www.hfddx.com and indicate their interest in sponsoring one or more DD Reports for $1500 each.