MAS names sustainability head; Malaysia’s EPF appoints COO and CFO; GIC PE head for SEA leaves; State Super hires new exec; Hesta appoints chief growth officer, chief Debby Blakey appointed to corporate governance board; ex-BlackRock exec joins IQ-EQ in Singapore; HSBC AM builds direct real estate team; ex-Vanguard head of distribution joins LGIM; Sanne names Singapore head; and more
Important new legislation meant to streamline Japan's regulatory system (the Financial Instruments Exchange Law) was introduced at the end of 2007. Instead of freeing the industry by introducing British-style principles-based rules, it frightened distributors over misunderstood risk controls to the point that they basically stopped selling funds.
By June, retail mutual funds' assets under management had declined 6% to Ñ63.5 trillion ($649 billion) û and that was before the credit crunch undermined local stock indices and abruptly threw the yen carry trade into reverse, badly hurting many retail investors.
Despite these setbacks, consultancy Cerulli Associates believes the Japanese funds industry is going to get back on track. A combination of institutional and retail demand will allow assets to reach Ñ80.1 trillion ($819 billion) by 2012, representing a five-year compound average growth rate of 3.5%.
It further estimates that total outsourced assets under management in Japan, including discretionary accounts, will hit $4.62 trillion by then.
Underpinning this outlook is the fact that investment advisory business has continued to grow in Japan, with assets managed by investment advisory companies increasing 5% year-on-year to June, to Ñ104 trillion. This has been mainly driven by public pension funds, which have stuck with their internal rules requiring them to rebalance their portfolios in reaction to market movements. Investment advisors (essentially institutional money managers providing segregated accounts) have become more trusted for their global expertise and investment capabilities, Cerulli says.
Kwap property arm appoints CEO; VFMC names new CEO as Lisa Gray retires; MSIG Singapore promotes Mack Eng as CEO; Monroe Capital opens first Asia office in Seoul, hires head from Aberdeen; Vanguard Australia appoints new MD to relocate from US; HSBC AM expands EM debt team; Vantage FX hires from CGS-CIMB in Singapore; and more.
Financials and healthcare have been spotted as promising sectors, while several tech IPOs are on the way, including a $2.2 billion fintech firm and a GIC-backed e-commerce startup.
A strong recovery in the Asia Pacific private capital markets in 2021 sets up favourable hiring and compensation trends.
The $95 billion Korean savings will set up a separately managed account for real estate debt investment early next year in order to shorten decision-making and help it win deals in a crowded market.