The pool of assets money managers can compete to manage on behalf of Asia-Pacific institutional investors will grow to $10 trillion by 2025 from $5.7 trillion at the end of 2015, according to a projection by data analytics and market intelligence consultant Spence Johnson.
The forecast was based on Spence Johnson’s analysis of more than 80 big institutional investors in the Asia-Pacific region, said Yoon Ng, Spence Johnson’s director APAC, in an e-mail.
Foreign managers oversaw roughly 45% of the $5.7 trillion in outsourced Asia-Pacific institutional assets as of the end of 2015, a news release said.
However, even with investors in the region looking to boost their allocations to overseas assets and alternatives, which should help add another $1.9 trillion to foreign managers’ total over the decade, relatively strong growth of assets in markets that retain a greater home-country bias, including China and Southeast Asia, should find foreign managers’ share of outsourced assets dipping to 44% of that expected $10 trillion total, the news release said.
Ms. Ng said in a telephone interview that growth in institutional assets slated for domestic markets should provide added incentives for foreign managers to boost their manufacturing capabilities in local markets.
APAC institutional assets grew to $30.7 trillion by the end of 2015 from $22.9 trillion five years earlier, for annualized growth of 6.1%, the news release said. Outsourced assets for that five-year period posted stronger annualized growth of 8.7%.
Ms. Ng said in the e-mail that Spence Johnson forecasts annualized growth in overall assets of 5.1% through 2025, lifting the institutional total to $50.5 trillion.