Mutual fund managers, facing asset retention issues, are increasingly turning to private bank and insurers for distribution, says Cerulli, but fierce competition will keep the shift gradual.
Following last year's reversal of a three-year fall in mutual fund assets in Asia ex-Japan, Cerulli Associates expects industry growth to continue at a healthy pace.
The Thai bourse has been on a tear and trigger funds have flooded the market. But Cerulli expects competing products to emerge in 2013 as the phenomenon runs out of steam.
Cerulli tips a CAGR of 11% up to 2016 for Asia ex-Japan mutual funds. It expects a narrowing of retail banking as a distribution channel and does not see ETFs overtaking mutual funds.
They are asking for long-term performance, but changing managers on short-term results. Nevertheless, Cerulli’s Ken Yap sees emerging opportunities for serving Asian institutions.
Shiv Taneja, who set up the Asian headquarters in Singapore in 2004, moves to London in an expanded international role.