Fri, May 26, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Asia Pacific Intelligence

Cerulli reports Asian institutions set to raise $17tln by 2017

Thursday, December 05, 2013

The latest report Institutional Asset Management in Asia 2013 from Cerulli Associates, finds that Asian institutions – ex-Japan - garnered $10tln in assets in 2012 and are on course to have $17tln by 2017, rising at 9.6% year on year with a compound growth of 10.1%. The firm finds that as assets grow, institutions' growing appetite for alternatives will help drive opportunities for external managers.

The firm predicts stronger increases from Southeast Asia, as institutions in those markets are relatively underdeveloped and are growing their assets from low bases.

Cerulli expects that two key factors will likely drive institutional outsourcing across Asia ex-Japan-growing appetites for alternatives and deregulation. The firm finds that alternatives allocations still remain small at most institutions, often accounting for less than 10% of their overall portfolios, but these allocations are increasing steadily. External managers play many roles in assisting institutions in alternatives, including co-investing and conducting due diligence, and it is good to start as early as possible.

"Managers that start engaging institutions early-even when the latter are not ready to allocate to alternatives-will stand a better chance of winning mandates when an institution is ready to invest," says Cerulli senior analyst Chin Chin Quah, who led the report.

Meanwhile, the firm finds that deregulation is freeing up the investment shackles of some institutions. China has been at the forefront with a series of deregulations, especially for insurers. From late June this year, insurers have been allowed to set up fund management units to offer mutual funds to retail and institutional investors.

"It could be a way for global fund houses to participate in China's retail and institutional markets if they are able to team up with the right local insurers," says Ken Yap, Singapore-based director and head of Asia-Pacific research at Cerulli, citing the recently approved joint venture between Australia-based AMP Capital and local insurer China Life as an example.

 
This article was published in Opalesque's Asia Pacific Intelligence our monthly research update on alternative investments in the Asia-Pacific region.
Asia Pacific Intelligence
Asia Pacific Intelligence
Asia Pacific Intelligence
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. Investing - Tudor Jones backs AI hedge funds, Massive hedge fund trades highlight insider buying: GE, Pentair, Tempur Sealy, Apollo Global and more, Hedge funds big wigs are buying consumer and selling tech, here's the stocks[more]

    Tudor Jones backs AI hedge funds From FT.com: Hedge fund magnate Paul Tudor Jones has invested in a brace of artificial-intelligence powered "quantitative" hedge funds, underscoring the increasing acceptance that the industry will need to turn more to technology and away from traditional

  2. Soon hedge fund investors won't bet on a man, they will bet on a machine[more]

    From Forexlive.com: The Wall Street Journal is in the midst of a 17-part series that looks at the rise of quant funds. The AUM and money invested in quant funds still trails traditional asset managers but the gap is closing. What's truly amazing is volume. Quant funds make up 27% of trading vo

  3. Investing - China's HNA wants to invest in Value Partners, Risk parity investors reap rewards from rebalancing act, SoftBank's $100 billion tech fund rankles VCs as valuations soar[more]

    China's HNA wants to invest in Value Partners From Reuters.com: HNA Group has alighted on a logical, if pricey, target in Hong Kong. The deal-hungry Chinese travel conglomerate known for overpaying wants to invest in Value Partners, one of Asia's few sizeable independent asset managers,

  4. Opalesque Exclusive: Investors warm to ESG, but seek standardization[more]

    Bailey McCann, Opalesque New York: Asset managers and asset owners plan to double their investment in Environmental, Social and Governance (ESG) driven strategies over the next two years, according to a survey from BNP Paribas Securities Services. The report, "Great Expectations: ESG - what's nex

  5. J.P. Morgan Asset Management launches ultra-short income ETF[more]

    Komfie Manalo, Opalesque Asia: J.P. Morgan Asset Management, the $1.5tln investment management arm of JPMorgan Chase & Co., has launched the JPMorgan Ultra-Short Income ETF (JPST), an actively managed ETF that seeks to provide current incom