The asset management industry is ripe for further consolidation in Asia as scale becomes increasingly important and as passive investments gain in importance.
Improved economic fundamentals in Asia and rising prices on stock markets are boosting confidence among the region's fund managers. The increase in passive investing however is exerting downward pressure on assets under management and fees.
Fintech use is no longer a novelty in the asset management industry and is making further inroads across the region with 2018 likely to see increased adoption by major institutional investors.
Time to Sell
Digital disruption is now becoming a reality in the fund industry, and more fund managers are likely to embrace it. The Japanese government pension investment fund for instance reportedly is considering using artificial intelligence for asset management during 2018.
The asset management industry is also ripe for further consolidation as scale becomes increasingly important. Buyers may look to make strategic acquisitions as they seek to expand their capabilities in areas such as passive investments and alternative strategies.
This will drive up valuations, which may make selling attractive to some fund managers according to new research from Cerulli Associates, a global research and consulting firm.
