Ucits ‘here to stay’ in Asia

Asia_globeA continued demand for cross-border funds and a lack of effective domestic regulation will ensure Ucits funds remain widespread in Asia. A report by researcher Cerulli Associates found that assets in cross-border funds in Asia excluding Japan rose nearly 19% last year. Several initiatives, such as the mutual recognition of funds (MRF) scheme, which connects Hong Kong with mainland China, aim to facilitate cross-border funds within Asia. But Cerulli Associates found that Europe-domiciled Ucits funds “have not lost their shine”. “Asian managers looking beyond their home markets tend to see launching Ucits funds as a preferred strategy for expansion, while global managers would likely use this structure to expand their businesses in key Asian markets,” said a statement from the company. Besides MRF, regional passporting initiatives include the Asia Region Funds Passport, which is anticipated to launch this year, and the Collective Investment Schemes framework from the Association for Southeast Asian Nations. Neither scheme has accumulated substantial assets yet. “Ucits are here to stay in the region and will maintain their lead, at least until the time regulations evolve,” said Leena Dagade, associate director at Cerulli Associates. ©2018 funds global asia

Executive Interviews

INTERVIEW: Giving peace a chance

Jan 11, 2019

As US-China tensions escalated in 2018, the leaders of the two economies met in Buenos Aires to agree a truce. Aidan Yao, senior emerging Asia economist at Axa Investment Managers, talks to Romil...

INTERVIEW: Operational challenges

Jun 09, 2018

Caroline Higgins of Northern Trust tells George Mitton about A-share inclusion, ETF Connect and why Cayman funds predominate in the region.



Jan 11, 2019

Changes to regulation, US-Sino trade tensions and further steps by China to open its capital markets were some of the topics discussed by our panel. Chaired by Romil Patel in Hong Kong.

SINGAPORE ROUNDTABLE: Optimism versus caution

Oct 23, 2018

The impact of financial technology, developments in Asian passporting and the promise of new markets in Thailand were among the topics discussed by our panel. Chaired by George Mitton in Singapore.