HONG KONG (Reuters) - Assets managed by money managers in the Asia-Pacific region will surge 40 per cent to US$14 trillion (S$17.5 trillion) by 2018, generating fees worth US$66 billion, consultant Casey, Quirk & Associates LLC said in a study released Thursday.
Australia, Japan and mainland China will account for two-thirds of the total revenue opportunity, followed by South Korea, Hong Kong, Singapore, Taiwan and India, it said, backed by faster economic growth and a high savings rates.
"Global asset managers may have the edge currently on managing strategies that are increasingly in demand, but to be successful in the region they will need to adapt their investment and distribution capabilities to fit local needs," said Daniel Celeghin, Hong Kong-based partner and head of Asia-Pacific at Casey, Quirk.
About half of the net new flows and revenue in the region over the next five years will come from retail funds and private banking markets, the consultant said.
Sovereign wealth funds and government entities, on the other hand, will prove harder clients to target as they move to manage assets internally, the consultant said.