By 2015, assets under management (AUM) are expected to nearly double in Asia (ex-Japan and Australia) from their present levels, according to a recent study.
The Mirae Asset Global Investments-sponsored report by research firm Cerulli Associates estimates AUM could hit US$4 trillion within four years, underpinned by an expanding middle class, new pools of insurance and retirement assets, and increased interest from foreign investors.
The report predicts Asia could become one of the largest regions for asset management in the world, with China the principal engine of growth and Korea continuing as a considerable force.
“We, as local Asian asset managers, have a substantial information advantage over Western managers toward alpha generation in the region,” said Jae Sang Koo, vice chairman and chief executive of Hong Kong-based Mirae Asset.
The report, entitled ‘Picking high-hanging fruit’, also suggests exchange-traded funds (ETFs) had not yet accounted for significant assets under management in Asia compared to mutual funds, but were beginning to gain investor awareness. However, since the Chinese offshore mutual fund market was likely to be the main engine of the region’s growth, mutual funds would still be key to retail growth, according to the study.
The report represented the views of some of the biggest and most prominent local and international asset managers operating in Asia. In total, 30 asset managers, representing 32% of AUM in the region, took part in the survey.