Asset management in Asia is growing rapidly and it is attracting asset managers from all around the globe.
According to the Financial Times, Asian asset management activities broke various records in 2018, overtaking matured markets such as the US and Europe in various aspects.
Asset management profits in Asia jumped by 200 percent to about $32 billion between 2007 and 2018, according to the report.
During the same period, US profits increased by 48 percent to $43 billion whereas European profits increased by 42 percent to $20 billion.
According to a McKinsey report, asset management revenues in Asia will reach $112 billion in the next five years.
Chinese assets managed by financial institutions are expected to reach an estimated $7.5 trillion by 2022, according to global management consulting firm Oliver Wyman.
“China receives a lot of attention but there are smaller markets in southeast Asia that also present important longer-term growth opportunities. Deep revenue pools exist in the more mature Australian and Japanese markets, where regulatory changes and shifts in client needs mean there is still strong growth potential,” Geraldine Buckingham, head of Asia Pacific at Blackrock told the Financial Times.
JP Morgan Asset Management is building its asset management business in China with the next 100 years in mind. With the changing structure of the financial market in China, JP Morgan expects clients to seek internationally diversified, long-term strategies.
JP Morgan Asset Management is also looking to expand in Asian countries such as Hong Kong, Japan, Taiwan, Australia, and Korea. At the rate at which Asian asset management market is growing, it is only expected to bring in a new portfolio of investors.