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Mutual Fund Assets in Asia to Quintuple by 2012, Reaching $8 Trillion
NEW YORK, 15 November 2007 --- During 2007, net flows to stock and bond funds in Asia are projected to approach $450 billion (nearly double 2006's $250 billion), and higher than the total in the U.S. and Europe combined.
Over the next five years, mutual fund net flows across Asia could reach $1 trillion annually, with much of the investment management capacity provided by international investment firms with global scale. For example, in Japan, well over $100 billion has already been given to international investment managers to run since early 2006. And in China, where industry assets quadrupled in 2007, the remarkable success of recent QDII fund launches point the way to global diversification and even greater involvement by international investment advisors.
"Such insatiable demand for quality investment management coming from Asia could have extraordinary implications for the worldwide investment management industry," suggested Jag Alexeyev, SI's Head of Global Research. "Beyond the opportunities for asset gathering and business development, the rising volume of liquidity from investors in the region could influence investment returns and product choices worldwide in coming years".
These were some of the conclusions from a new Strategic Insight study, Asia Fund Management and Middle East Opportunities: Investing in the Future. SI projects that mutual fund assets in Asia could reach $8 trillion by 2012, rising from just over $1.5 trillion today. Even if economic uncertainty cuts flows and appreciation significantly, Asia fund assets would still more than double by 2012.
The "Investing in the Future" landmark study uses unique net flows data from over 20,000 funds sold in Asia, details on distribution dynamics and Select Lists, and input from CEOs and fund executives active in the region. It provides detailed analysis of Japan, China, India, Korea, Taiwan, and other South-East Asia and Middle East fund marketplaces.
Twenty-two years ago, when SI launched its pioneering research, the U.S. fund industry was about the size of the industry in China today. Since 1986, U.S. funds expanded to almost $13 trillion. "Asia mutual funds are set to replicate such growth, except they may do it in half the time," predicted Daniel Enskat, Managing Director and co-author of the "Investing in the Future" study.
About Strategic Insight
Strategic Insight is a research firm offering industry perspective, data, and analysis on mutual funds across Asia, Europe, and the U.S., with close to 300 of the largest fund and asset management companies around the world as clients.
Contact:
Jag Alexeyev
Senior Managing Director, Head of Global Research
STRATEGIC INSIGHT
590 Fifth Avenue, New York, NY 10036
Tel: +1 (212) 944-4456
Email: Jag@sionline.com
Daniel Enskat
Managing Director
STRATEGIC INSIGHT
590 Fifth Avenue, New York, NY 10036
Tel: +1 (212) 217-6859
Email: Daniel@sionline.com
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