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Laxman Pai, Opalesque Asia: For the past ten years, Asia's assets under management (AUM) have grown by 9% annually, capped by a strong 11% figure in 2017.
"For the asset management industry in Asia, 2017 was the latest in a string of successes. Buoyant capital markets, a shift from deposits to investment solutions, and conducive regulatory regimes have propelled growth across Asia," said a recent study by McKinsey.
"We expect that the 2017 revenue pool of $66bn will almost double to $112bn over the next five years," said the study.
According to McKinsey, Asia is the world's fastest-growing asset management market. The region captured nearly 45% of global flows over the past five years.
AUM leapt by 11% year-on-year to a record $16tn by the end of 2017. Over the past decade, AUM has increased by $9tn.
Asia now represents about 18% of the global total of $89tn. Revenue pools are currently $66bn, up 188% from 2007.
Like AUM, profits also grew to record levels in 2017. The growth in profit margins-driven primarily by higher revenue margins-is exceptional, considering operating cost margins also rose from 28.9 bps in 2016 to 29.3 bps in 2017.
The number of high net-worth (HNW) households has grown by double digits (21% from 2008 to 2017), as has their wealth.
Pensions and Insurers hold 65% of Asia's institutional assets
Institutional (which expanded annually by 11% from 2007-17) is concentrated primarily in the more develo...................... To view our full article Click here
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