Multi-asset funds gain assets in key Asian markets

multi asset2Money in multi-asset funds in the mature funds markets of Asia has risen rapidly in recent years as investors opt for diversification and regular income.

Multi-asset funds in Hong Kong had an estimated $22 billion under management at the end of October 2014, according to research firm Cerulli Associates, nearly three times the level in 2012.

In Singapore, multi-asset funds have risen to account for more than a fifth of locally domiciled fund assets, up from a 14% share in 2012, says Cerulli.

"It was widely believed previously that these funds appealed to investors for their ability to ride out market gyrations during periods of uncertain market conditions," says Cerulli Associates. "But now, it seems that instead of the relative comfort levels that the funds' asset allocation strategies bring, it is the stable monthly income features of these products that have investors hooked."

The researchers found that multi-asset funds have not yet become popular in all Asian markets. Cerulli Associates notes that although some managers had some initial success introducing multi-asset income funds to Korea in 2013, demand had since declined, leading to net outflows for these products in 2014.

"Managers will face a challenge in selling multi-asset funds as Korean investors prefer local 'value-investing' and high dividend equity products," says the report.

©2015 funds global asia

Executive Interviews

Executive interview: PGIM CEO on where the ESG flowers should bloom

Sep 27, 2021

David Hunt, president and chief executive of PGIM, tells Romil Patel about leading a top 10 global asset manager in times where “empowering and encouraging the kind of investment decisions as...

Executive interview: Nicolas Moreau’s orderly transition

Jul 12, 2021

Nicolas Moreau, CEO of HSBC Asset Management, is moving to Asia as the firm looks to connect more directly with the region’s growth story. ESG is also a key focus – including the ‘just’ carbon...


Roundtable: Singapore comes of age as an Asian ESG hub

Dec 01, 2021

Strong ESG credentials strengthen the case for Singapore as a leader in Asia of the post-Covid recovery. Our panel discusses the risks and opportunities.

Roundtable: How well geared are Japanese assets for a new world?

Jul 12, 2021

As we prepare to emerge from Covid, experts look at overcoming demographic issues through a combination of good tech and corporate governance, improving productivity and meeting an ambitious government carbon emissions reduction target. Chaired by Romil Patel.