Last updated: 10:02 / Thursday, 16 June 2016
According to Cerulli

Appetite For Equity Funds is Down in Asia Pacific

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Appetite For Equity Funds is Down in Asia Pacific
  • Multi-asset/balanced and income/dividend strategies are favorite with Hong Kong, China, and Taiwan distributors
  • In Singapore and India, asset managers give their strongest vote to plain-vanilla equity funds
  • European equities, Japanese equities, and multi-asset funds were the most favored investment strategies for selectors last year

Asian managers have chosen multi-asset/balanced and income/dividend strategies as the top product strategies to promote to distributors in 2016.

According to a proprietary survey conducted for Cerulli's Asian Distribution Dynamics 2016 report, asset managers from Hong Kong, China, and Taiwan will put the most effort toward marketing these strategies. In Singapore and India, asset managers give their strongest vote to plain-vanilla equity funds.

Notably, equity appetite went down in most Asian markets, with a greater preference for multi-asset/balanced funds.

In Hong Kong, Singapore, and Taiwan, asset managers have seen a rotation from high-yield bond funds two to three years ago to multi-asset, and most recently, dividend-paying funds. European and Japanese equity funds were most often mentioned during Cerulli's research rotations earlier this year.

In a separate survey for Cerulli's Asian Fund Selector 2016 report, results showed that the product strategies that fund selectors are looking for in 2016 broadly match what asset managers are promoting. European equities, Japanese equities, and multi-asset funds were the most favored investment strategies for selectors last year, and most believe the trend will continue in 2016.

As for liquid alternatives, Cerulli notes that asset managers are jumping on the bandwagon to either start or expand their liquid alternative offerings this year, due to an increasing use of liquid alternatives among global/regional banks as part of their discretionary portfolio offerings.

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