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Asian institutions dissatisfied with asset managers: study

Asian institutions dissatisfied with asset managers: study
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First Published: Tue, Jul 29 2008. 05 27 PM IST
Updated: Tue, Jul 29 2008. 05 27 PM IST
PTI
New Delhi: Investment management companies in Asia have amassed a whopping asset size of over $3 trillion, but are dissatisfied with the quality of service provided by their asset managers, a latest study says.
According to the results of Greenwich Associates’ study, institutions in Asia have mopped up over $3 trillion in assets under management, but the quality of service delivered by asset management firms to Asian institutions is not at par with that seen in other markets.
The 2008 Asian Investment Management Research study shows nearly 80 of the largest institutional investors in 11 Asian countries lagging behind their global peers in asset management service and investment expertise.
“Although Asia is growing rapidly as an institutional market, at present it cannot compare to the sheer size of the institutional asset bases in Japan, Europe and the United States,” Greenwich Associates consultant Markus Ohlig said.
The study highlights that the discrepancy is because Asia is still a relatively small market.
Asian institutions allocate only about $1 trillion in total to external investment managers. Where as in UK the figure stands at $1.7 trillion, in Japan at $3.8 trillion and in US it is more than $7.8 trillion.
“...This comparatively modest institutional asset base is spread among nearly a dozen countries across an immense geographic region, which makes the economics of providing broad and intensive coverage quite unfavourable for asset management organisations,” Ohlig added.
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First Published: Tue, Jul 29 2008. 05 27 PM IST