Investment Firms Urged to Be Aware of Differences as They Launch Products and Services in Singapore, Hong Kong, Taiwan and South Korea
NEW YORK, July 16, 2015 /PRNewswire/ -- Investor attitudes in four key Asian countries have major differences as well as similarities that should be kept in mind by investment firms seeking to penetrate these markets, according to a study from BNY Mellon, a global leader in investment management and investment services, and Oxford Metrica, an analytics and advisory firm.
These similarities and differences also apply to distribution channels and other factors shaping these markets, the study said.
One example highlighting the differences is the preference for Hong Kong retail investors to invest with low-cost fund complexes that meet the full range of their needs, while those in Taiwan look to specialist managers in various categories.
Among other findings, the study notes the high investment costs faced by retail investors in South Korea compared with the low investment costs of South Korean institutional investors. It also notes the importance placed on investment performance in Singapore and Taiwan versus the perceived security of investing through well-known branded firms in Hong Kong.
"Our new study highlights the differences and similarities between investor attitudes in Singapore, Hong Kong, Taiwan and South Korea, as well as distribution channels and asset classes, which should be a focus for investment firms seeking to attract clients in these key Asian markets," according to Daron Pearce, global investment manager segment head for Investment Services at BNY Mellon.
Entitled Optimizing Sales in Asia, the study offers current and prospective players in the Asian cross-border funds market insights into investor preferences to help inform their marketing and strategic priorities.
Singapore, Hong Kong, Taiwan and South Korea are all markets where the European UCITS structure is widely accepted – and as such represent accessible entry points for non-Asian investment managers seeking to sell such funds into the region.
"Sales success in Asia's major cross-border funds markets requires a deep understanding of the different factors that inform retail and institutional demand," says Pearce. "As one might expect, retail investors are generally more price sensitive than institutional investors. However the interplay between price, product range and performance is finely balanced across all markets analyzed and, as such, close attention to the realities of individual markets is required by fund promoters."
The study draws upon a robust quantitative analysis of pricing, product range and performance in the purchasing decisions of institutional and retail investors. Data was provided by Lipper, a Thomson Reuters company. Highlights of the report include:
In addition to providing detailed quantitative analysis, the study uses interviews with BNY Mellon clients and insights from BNY Mellon regional executives to provide supporting qualitative commentary on market trends and developments to illustrate the domestic context within which fund purchase decisions are made.
The new study can be found at https://www.bnymellon.com/us/en/our-thinking/optimizing-sales-in-asia.jsp
For over 100 years, BNY Mellon has maintained a presence in Asia Pacific, where it was one of the first U.S. financial institutions to invest in the region's vast potential. Today, BNY Mellon has more than 12,000 employees in the region and maintains extensive operations in 16 offices across 12 countries.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of March 31, 2015, BNY Mellon had $28.5 trillion in assets under custody and/or administration and $1.7 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com or follow us on Twitter @BNYMellon.
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SOURCE BNY Mellon