Institutional assets in Asia ex-Japan should exceed $16 trillion by the end of 2017, a gain of more than 50% from the end of 2012, according to Cerulli Associates’ latest annual report on institutional money management in Asia.
The region’s institutional assets topped $10 trillion for the first time at the end of 2012, climbing 9.6% from the year before to $10.1 trillion, according to Cerulli, a research firm focused on money management and distribution trends worldwide.
The report projects a compound annual growth rate of 10.1% that will lift institutional assets to $16.1 trillion by the end of 2017.
Money managers focused on alternatives investments will be best placed to benefit from that growth, even amid signs that a growing number of sovereign wealth funds in the region are looking to partner with each other on investments, said Chin Chin Quah, a Singapore-based senior analyst with Cerulli and an author of the report, in a telephone interview.
Cerulli’s estimates show institutional assets in China remaining the biggest target for money managers, growing to $7.8 trillion by the end of 2017 from $4.8 trillion at the end of 2012, followed by a projected rise in Korean institutional asset to $2.3 trillion from $1.4 trillion.