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.
Researchers see smaller Chinese life insurance companies following the big players in outsourcing more to external fund managers, including overseas.
Traditional asset managers are competing with alternative specialists to gain new mandates as regional institutions add more of the asset classes to their product mix.
Foreign fund houses' efforts to develop truly local businesses are starting to pay off; nine of the top 20 onshore products in Taiwan by net new flows this year were run by overseas firms.
China AMC ranked top in 2015 by outright profit, and Aegon-Industrial Fund by profit yield, but industry profitability is set to fall amid stricter rules and market volatility, according to new research.
Gatekeepers in Asia are finding space on their crowded shelves for funds that can cope with expected US rate rises, China uncertainty and low oil prices. Alternative products are a big focus.
Mainland authorities are said to be considering whether tighter rules are needed for the domestic mutual fund industry, which hit the $1.3 trillion mark in December.
Mainland managers made the largest gains in Asia mutual fund assets last year – excluding money-market funds and funds of funds – as global houses fell back, finds Cerulli Associates.
EFG's SE Asia head resigns; Neuberger Berman in sales shuffle; Spence Johnson hires first Asia head; Credit Suisse boosts AES team; Northern Trust adds Pune operation; Latham & Watkins builds in HK, to open in Seoul; Iosco opening Asia branch; SS&C replaces Malaysia chief.
Ng Sze Yoon will leave the US-based funds industry analytics firm at the end of the month to help another research house set up in Singapore.
Fund houses see Taiwan as the most attractive investment-linked product market in Asia, but it is getting harder to access for latecomers or smaller players, finds research house Cerulli Associates.
Studies have shown returns for some low-volatility ETFs have not delivered against similar funds. Jessica Cutrera has urged investors to do their homework on smart-beta products.