Initiatives, such as online money market fund platforms in China, are an example of this development in the distribution space, and other alternative channels include open-architecture direct sales platforms in Hong Kong, via mobile phones in India, and regional banks in Japan, said the Boston-based firm.
These distribution initiatives, though, in their early stages of development “should not cause sleepless nights yet” for banks and securities firms, Cerulli said, adding it believes it takes courage to attempt “something different” in the asset management industry in Asia.
“It is an industry that is often viewed as stable and relatively unexciting, and one in which copycats abound, perhaps because of an unwillingness to embark on paths that are not tried and tested due to cost restraints or a lack of conviction on the part of management,” says Chin Chin Quah, a senior analyst at Cerulli.
The report also noted it is “arguably tougher” to find differentiation in distribution than in product, as fund houses consider themselves to be product manufacturers first, where they add value is in managing assets and delivering superior performance.
