Global Investors Hedge Their Bets With Asia-Pacific Funds

Eliane Chavagnon London 1 December 2011

Global Investors Hedge Their Bets With Asia-Pacific Funds

The average portion of global fund houses’ Asia-Pacific-sourced assets under management has risen in the past year, according to an annual survey of fund managers by AsianInvestor.

The findings, which will feature in the firm’s magazine this month, are indicative of US and European asset managers’ reliance on Asia-Pacific to boost business, as AuM in the region increased from 9.4 per cent to 10.7 per cent.

Although Asia, Japan and Australia generally have a stronger presence in global managers’ businesses, the results vary according to individual firms. Moreover, there is an increasing distinction between those with expanding and those with shrinking Asia-Pacific businesses.

With regards to Asian asset managers, there were clear winners and losers. Overall, Mitsubishi UFJ Trust & Banking and BlackRock lead the rank, while Asia’s leading asset manager, Samsung Asset Management, comes 20th with $89 billion in AuM.

Meanwhile, Japanese trust banks overshadow the top 10, placing Mitsubishi with $370 billion at the top, closely followed by Sumitomo Trust & Banking, Chuo Mitsui Trust & Banking and Mizuho Trust & Banking. Japan’s Nomura Asset Management is ranked fifth, with $295 billion in AuM.

Australia-based Macquarie Funds Group and US-based Vanguard also sit in the top 10, whereas BlackRock takes second place with $363 billion, followed by State Street Global Advisors, with $215 billion and US-based Prudential Financial, with $177 billion.

Asian asset managers with strong growth include Bank of the Philippine Islands and BDO Bank, also from the Philippines, as well as Korea's Hanwha ITMC, KB Asset Management and Woori Asset Management.

Furthermore, Ashmore, Cohen & Steers, Lazard Asset Management and T Rowe Price all experienced high year-on-year growth, the survey found.

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