Asset Management

Fitch Sees Rapid AuM Growth In Funds Sector Of Emerging Asian Economies

Tom Burroughes, Group Editor, London, 25 February 2013

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Growth in assets under management in the developing
economies of Malaysia, Thailand and Indonesia
is expected to outpace growth in the more mature markets of Singapore, Hong Kong,
Taiwan and South Korea,
Fitch Ratings predicts in a new report.

The region has a large and growing middle class, but
penetration of managed financial products is relatively low, at 5 per cent,
compared with an average rate of 15 per cent in the West, it said.

"East Asia represents
a growth opportunity for international asset managers but distribution in the
region is not straightforward," Aymeric Poizot, managing director in
Fitch's Fund and asset manager rating group, said. "The cross-border wealth
management and institutional segments are very competitive, while in retail,
large consumer banks dominate distribution in most countries - making distribution
agreements critical," he said.

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