The total retail assets under management in Asia, excluding Japan, will exceed US$500 billion by 2007, making it one of the fastest growing asset management marketplaces in the world, according to Cerulli Associates.
A report from the US-based research firm titled,Market Update: Asian Distribution Dynamics, says such growth would reflect a compound annual growth rate of 12 per cent.
The firm says this is despite economic crises that have plagued the region for the past several years, and more recently, the health problems brought about by Severe Acute Respiratory Syndrome (SARS).
According to the report, year on year asset growth in the region has fallen from a high of 21 per cent during 2001 to 15 per cent in 2002, leading Cerulli to reduce its forecast for 2003 to nine per cent asset growth, but despite this short-term outlook, Cerulli maintains an optimistic view for the medium-term.
Cerulli says Taiwan is one of the most exciting markets in Asia, and is on track to be the second largest asset management market in the region and possibly the largest truly retail market within five years.
Taiwan’s total assets stood at US$75.9 billion at the end of 2002, up 18 per cent on the year before, with Cerulli forecasting a five year compound annual growth rate of 16 per cent until 2007.
Cerulli says China’s mutual fund industry saw a sharp increase between 2000 and 2002, growing 55 per cent in 2001 and 57 per cent in 2002, with Cerulli forecasting a five-year compound annual growth rate of 24 per cent.
Characterising China’s retail asset management marketplace, says the research group, is a number of joint ventures recently consummated.
