FOR IMMEDIATE RELEASE
Daniel Enskat, Head of Global Consulting, Senior Managing Director
+1-212 217 6859; +852 2251 8248, daniel@sionline.com

RUNNING A SUCCESSFUL PAN-ASIA ASSET MANAGEMENT BUSINESS: LESSONS FROM FRANKLIN TEMPLETON AND NIKKO ASSET MANAGEMENT

New York and Hong Kong – July 17, 2011 – A new Strategic Insight study examines the “View from Asia: how to run a successful Pan-Asia asset management business”. The report combines details from a thought leadership interview at Fund Forum International 2011 in Monaco with Vijay Advani, EVP Global Advisory Services at Franklin Templeton, Tim McCarthy, Chairman and CEO at Nikko Asset Management, and Daniel Enskat, Head of Global Consulting at Strategic Insight, with proprietary Strategic Insight research and data.

Noted Enskat: “For the first time in Franklin Templeton’s history, net cash flows outside of the US dwarfed those in the US in 2010, catapulting the firm to the top cash-flow spot in the industry worldwide, with $44 billion in long-term ex-US flows in 2010, and $12 billion year-to-date in 2011. Similarly, Nikko in Japan gathered $4.3 billion in long-term fund flows in 2011 year-to-date, competing with Nomura for the top spot. These flows came on top of $11.5 billion in 2010 in the long-term space for Nikko.”

“At the same time, Asia captured 58% of global net flow market share in the pre-crisis days of 2007, but since then saw its net flow share plunge to 12% last year, while Europe and the US rebounded”, commented Enskat. “This makes the cash flow results for Nikko and Franklin Templeton, and other select blockbuster fund firms, all the more impressive.”

Key themes addressed in the report include:

– Asia since the crisis and in the next 10 years: How important a contributor to your overall business has the region (or specific markets and channels) been to your firm since the crisis? How important a role will Asia and other emerging markets, such as Latin America, play in the global asset management industry 10 years from now?

– Investment & distribution: From a global asset management perspective, how important is Asia-Pacific from an investment and distribution standpoint? How important is the region for your business specifically?

– Regional fragmentation – how to deal with a “glocal” business: Will Asia ever be a region, or will it continue to be a fragmented collection of local markets and business drivers? Are there economies of scale on a regional level and how do you organize “Asia”?

– Local vs. offshore: How do you view UCITS assets sourced from Asia, funds in local domiciles, and the impact of the European alternative UCITS discussion for the region and the possibility of creating an “Asia passport”?

For a copy of the report, please contact Chantelle Davis (cdavis@sionline.com) or Lise Carpenter (lcarpenter@sionline.com).

About Strategic Insight
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