Fragmented and highly regulated markets in the Asia Pacific region are making it increasingly difficult for growth-hungry fund managers to expand their reach, a survey has found.
More than a third (42 per cent) of surveyed fund managers said they were looking to expand into new markets, while 28 per cent listed this expansion as their top priority, often due to low returns and confined opportunities in their current market, a State Street/Longitude Research report revealed.
However, more than half (51 per cent) of the 200 surveyed fund managers claimed the fragmented nature of Asian Pacific markets was curtailing their growth plans.
Regulation was cited as a key challenge, with 52 per cent of fund managers worried their companies would have to make significant changes to meet multi-region compliance requirements.
To allow for expansion, companies would need to develop a more detailed knowledge of markets of interest such as Malaysia and Thailand, and outsource where possible, the report suggested.