As Brexit looms, what opportunities lie further afield for investment managers?
We all know about wealth creation in Asia and the expansion of the middle classes. China is by far the largest new market for investment but it is largely closed to international asset managers. Wealthy Chinese tap into international investing expertise via Hong Kong and other jurisdictions.
Hong Kong’s retail fund market grew by over 20% last year and the majority of assets are with international fund groups. This growth is fuelled by growing numbers of Chinese millionaires as well as Hong Kong’s own residents – the super wealthy are more prevalent here than any other city in the world.
Singapore is also a large and established market in its own right as well as acting as a hub for Asian distribution. Like other Asian markets, banks and private banks are the primary distribution channels but they will come under increasing pressure from D2C and insurance channels. There’s also an opportunity for holistic wealth management which the likes of St James Place have spotted.
Taiwan is the third key market for international funds. All three benefit from established investment distribution infrastructures and attractive demographics. They are generally welcoming to UCITS funds but ‘passporting’ between them is still limited.
Asset managers looking to expand in Asia must assess these separate markets on their different merits and gauge their individual characteristics and potential. This theme is at the heart of our new Asian Fund Distribution research which we will publish at the Soho Hotel on Thursday 11th October.
To register interest in the report or launch event please contact: jeanluc.dejonge@platforum.co.uk.