Mon, Aug 29, 2016
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. Strategies - The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I, Hedge funds get more pushback on terms as enthusiasm for strategy wanes[more]

    The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I From IBTImes.co.uk: To illustrate a strategic gap common to today's portfolio managers, George Sokoloff, PhD, founder and CIO at Carmot Capital, proposes an interesting thought experiment – a breakdown of

  2. Institutional investors - Investors set to increase allocation to private debt, With investment income key, Richmond retirement system faces funding challenges[more]

    Investors set to increase allocation to private debt Investors are set to increase their allocation to private debt, with 60% revealing they believe the private debt market will grow over the next 12 months, according to a new study by Elian, a leading funds services provider. 41%

  3. Investing - Hedge funds snap up banks, unload Apple, Some of hedge funds' favorite stocks are finally starting to beat the market, Einhorn's Greenlight shifts positions, Treasury yield climbs to two-month high as Fischer joins hawks, 9 stocks smart investors put their money in last quarter[more]

    Hedge funds snap up banks, unload Apple From Barrons.com: Prominent hedge funds have a newfound love of big banks, and some have a distaste for shares of Apple, regulatory filings released last week show. The filings suggest that the funds have been pivoting their portfolios in recent mon

  4. Chesapeake energy seeks $1 billion loan to refinance debt[more]

    From Bloomberg.com: Chesapeake Energy Corp. is seeking a $1 billion loan as the company battered by cratering fuel prices and credit downgrades takes a step to address its $9 billion debt load. The natural gas producer hired Goldman Sachs Group Inc., Citigroup Inc. and Mitsubishi UFJ Financial Group

  5. Institutions - Nordic pension funds magnify focus on unlisted and direct investing, building up teams[more]

    From IPE.com: As bond yields remain at low or negative levels, pension funds and other institutional investors in the Nordic region are stepping up efforts to find higher returns by adding more unlisted investments to portfolios and are expanding in-house teams in order to do this, according to new