Investors across Asia demonstrated exceptional resilience through the year-long bear market, contributing $140 billion of net inflows to mutual funds in the twelve months through September. But the global financial crisis has accelerated dramatic realignments in demand, market direction, competitive dynamics, and distribution focus, changing the balance between companies. Eight out of the fifteen highest cash flow managers in Asia a year ago are not among the top ranked today, and such rotations appear set to accelerate.

While most executives are concerned about deepening challenges in the near-term, some are viewing it as an opportunity to reposition for greater gains in the future. The Asia region stands out with higher equity fund flows than the US, and with long-term funds in sharp counterpoint to the European industry suffering over $500 billion in net redemptions during the last year alone. These trends underscore the broad and persistent shift of flows and focus of asset management globally, while reconfirming the current importance and future potential of Asia.

But projections for growth in the next five years vary substantially, and the greater risk now is of underestimating the potential of Asia, and consequently under-investing or misaligning resources, which will prove competitively detrimental to fund managers.

Getting the basic facts and conclusions right are also a challenge for many. This year’s edition of our Asia Fund Management study draws from Strategic Insight’s comprehensive databases of more than 20,000 local funds and many more offshore funds sold in the region, as well as our focused research on Asia over the past several years and recent discussions and consulting work with CEOs and head of product and distribution in the region.

Asia Fund Management is not a “primer” on the business but rather written for experienced executives active or with new interests in the region, as an in-depth complement to our suite of ongoing research and resources.

For a detailed discussion of the book’s key findings please contact the author at +1-212-944-4456 or Jag@sionline.com