The organisation looks at some of the qualities of Asia's expanding investment management space.

Asia’s local asset managers increasingly work with specialist external players to fill product gaps at a time when foreign interest in the region is growing, according to Cerulli Associates.

Foreign investor interest in Asia is growing. In 2018, Cerulli said its research showed that foreign exposure was the highest in Thailand at 25.8 per cent, for example, where foreign managers are free to partner with multiple local managers for a particular fund.

“As the landscape becomes more competitive, asset managers and distributors - both foreign and local - will have to reinvent their business strategies,” the organisation’s report said. 
Another way for investment houses to build expertise is by buying other firms, entering joint ventures or product partnerships, Cerulli noted. 

Potential for investment sector growth remains big in Asia, the report said. Excluding Singapore, the region posted year-to-date growth of 6.4 per cent, exceeding $320 billion as of June 2019.

Household financial assets in Southeast Asia were estimated to reach $3.5 trillion in 2018, yet mutual fund penetration stands at just 9.6 per cent. Based on such numbers, Cerulli projects the mutual fund industry in Southeast Asia ex-Singapore to grow at a compound annual rate of 11.8 per cent to $525.7 billion until 2023.