Tue, Oct 21, 2014
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

Banner

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. Opalesque Exclusive: What's next for trend followers?[more]

    Bailey McCann, Opalesque New York: New research out from Ibbotson touches on a key debate happening among investors and fund managers, specifically whether long term trend followers can survive in the new

  2. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  3. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  4. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  5. Sparx optimistic about outlook for Japan[more]

    Benedicte Gravrand, Opalesque Geneva: According to SPARX, there are causes to be optimistic about the outlook for the Japanese market and the country's economy in general. Sparx Asset Management is a Tokyo-based asset manager, part of