Asia-Pacific Mutual Fund Industry - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Asia-Pacific Mutual Fund Industry - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Asia-Pacific (APAC) is undergoing economic expansion, making the region’s investors a core distribution target for asset managers globally. In China, investable assets are expected to reach USD31.8 trillion by 2021, although only 5% of the country’s domestic household savings are currently held in mutual funds. The Indian middle-class which, previously favored traditional assets such as gold or residential property, has begun to shift to stock-focused funds.

A number of B2B robo advisers and ones aimed towards the middle-class market are already making inroads in a number of APAC markets and tie-ups with asset managers and banking distribution platforms are taking place.

Given the growing potential of this region, many countries are bringing in regulations to streamline the industry with free flow of funds among countries and also to curb unwarranted results. Japan’s Financial Services Authority released finalized principles regarding fiduciary duty, setting out seven overarching principles that will aid the economy in pursuing sustainable economic growth and the stable financial accumulation of Japanese household assets. In India, regulations of mutual fund mergers have been tightened to improve transparency and eliminate product ambiguity for investors. Similarly, a new regulatory framework in China will enhance market surveillance and transparency.

Key Market TrendsMoney Market Funds in Asia-Pacific Region

Worldwide net sales of money market funds in 2019 totaled $706 billion, which was nine times the $79 billion inflow in 2018. Asia-Pacific money market funds registered $30 billion in inflows in 2019 after outflows of $99 billion in 2018.

Demand for money market funds depends on their relative performance and interest rate risk. When yields on short-term fixed-income securities are close to yields on long-term fixed-income securities, money market funds tend to experience inflows. In this situation, money market funds become attractive to some investors seeking to minimize their interest rate risk exposure by using a fund with a shorter duration. As yield spreads throughout the Asia-Pacific region narrowed or turned negative, money market funds in various countries in the region also experienced inflows during 2019.

Mutual Funds As a Savings Priority in the region

The emerging affluent are lighting a fire under economic growth in some of the world’s most dynamic markets. The emerging affluents are active savers and the savings proportion to their top priority is increasing over the years across countries in this region. From relying on basic savings accounts or time deposits, the proportion of affluents choosing mutual funds over others as their primary saving method are increasing over the years. The infographic shows the share of population considering mutual funds as a saving method in the region is presented below.

Competitive Landscape

The report includes an overview of MF companies operating across Asia-Pacific. We wish to present detailed profiling of a few major companies which cover product offerings, regulations governing them, their headquarters, and financial performance. Currently, some of the major players dominating the market are listed below.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
E fund Management
Bosera Asset management
HDFC Mutual Fund
ICICI Prudential Mutual Fund
T. Rowe Price
BlackRock
Goldman Sachs
Matthews Asia Funds
Fidelity Investments
Invesco*

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