A widely diversified business model in Asia is too costly for most asset managers amid rising costs and competition, argues the consultancy: they must allocate resources better.
Assets, revenue and operating margins all shrank last year for the first time since 2009, and flows into passive funds were double those into active strategies, according to consultancy Casey Quirk.
That is over three times the current $817 billion, and this growth will be driven largely by individual investors, as it will be for the funds industry globally, argues consultancy Casey Quirk.
A new group of investors will account for almost 60% of revenues in the region by 2018, eclipsing sovereigns, large pension schemes and global private banks, finds Casey Quirk.
The US management consultancy has set up in Hong Kong with a view to advising mainland investment houses, as well as global and regional players.