The asset-management industry is beset by challenges; we have come up with five we consider the most crucial. First up: the question of systemically important institutions.
Korean asset managers are being nudged towards setting up shop in emerging Asia – witness a recent CEO delegation to Vietnam – but they first need to make changes at home.
All but six of the country’s 155 fixed income mutual funds have recorded negative returns so far in 2011, leaving embattled fund management companies nowhere to turn.
Regulatory relaxation has prompted a flood of new funds, but industry AUM is shrinking. Fund supply is growing faster than demand, and net redemptions are increasing.