Posted inBusiness moves

Regional AM partnerships on the rise

More Asian asset managers are partnering with peers to grow assets and extend distribution channels, according to consultant Cerulli Associates.
Fund Selector Asia

At least five partnerships have been formed in the past 12 months that involved regional players joining with overseas firms.

“An absence of distribution partners and lack of brand recognition are problems new entrants have to contend with and partnering with a local partner is seen as the best way to raise assets without a large initial investment,” the report noted.

It is also considered a safer option amid volatile markets, while at the same time allowing Asian managers to gain investment capabilities and insights into new markets.

The most recent example is the Hong Kong arm of Bosera Group partnering with UK’s Standard Life Investments to launch a co-managed emerging markets bond fund.

China Asset Management, the fund unit under CITIC Group, and Japan’s Daiwa Asset Management, announced in March that they will “exchange personnel and information for future business cooperation”, the report noted.

Others include the partnership between China’s E Fund Management and Danske Bank Group from Denmark, which will “jointly design and promote” investment vehicles.

The move should “help Efund to be better tuned to the needs and preferences of European clients,” and target potential inbound business to China.

Hong Kong-based Value Partners and Aston Asset Management from the US have started to co-manage an Asia dividend fund last December. Meanwhile, Singapore’s UOB Asset Management and Wellington Management are said to be developing equities and fixed income products together, according to the report.

Bosera Asset Managment (International) earlier pointed out that foreign partnerships can help with sales as well as sharing ‘local wisdom’.

Deborah Fuhr, managing partner of ETFGI, recently said interest among Hong Kong asset managers in launching leveraged and inverse ETFs locally could result in more partnerships with Western firms such as Proshares, which has expertise with the products.

Part of the Mark Allen Group.