Margins for the asset management business in Asia Pacific are higher and relatively stable compared to other regions, according to a KPMG report.
At 58.3 basis points in 2022, asset managers in APAC record higher and relatively stable margins compared to other regions, according to a KPMG report. This is partly due to a preference for active investment strategies, though there are some shifts from mature markets like Australia toward passive strategies.
This is despite higher cost margins – 36.3 basis points – driven by expensive regulatory setups and investment in digital platforms.
In comparison, asset managers in North America saw revenue margins of 43.9 basis points and cost margins of 29.9 basis points in the same year.
Total AUM
Overall, total assets under management (AUM) for the industry in APAC reached $27.2 trillion in 2022. This marks a compound annual growth rate of 14 percent in the past 10 years, compared to the global average of 9 percent. KPMG cites economic growth, wealth creation and regulatory reforms as major drivers.
Within the region, mainland China is the largest market, by far, with $10.8 trillion in AUM. This was followed by Singapore ($4.2 trillion), Hong Kong ($3.9 trillion), Japan ($3.8 trillion) and Australia ($3 trillion).
«The growth of AUM in APAC was higher than other regions in the 10 years to 2022. At the same time, a relatively small proportion of investable assets is currently being managed by asset managers, so there is still potential for further development of the industry,» said Chee Hoong Tong, partner, asset management at KPMG China.
