Fragmented and highly regulated markets in the Asia Pacific region are making it increasingly difficult for growth-hungry fund managers to expand their reach, a survey has found.
More than a third (42 per cent) of surveyed fund managers said they were looking to expand into new markets, while 28 per cent listed such moves as their top priority, often due to low returns and confined opportunities in their current market, a State Street/Longitude Research report revealed.
However, more than half (51 per cent) of the 200 surveyed fund managers claimed the fragmented nature of Asian Pacific markets was curtailing their growth plans.
Regulation was cited as a key challenge, with 52 per cent of fund managers worried their companies would have to make significant changes to meet multi-region compliance requirements.
To allow for expansion, companies would need to develop a more detailed knowledge of markets of interest, like Malaysia and Thailand, and outsource where possible, the report suggested.
The asset manager is bolstering its investments in the global energy transition and climate opportunities.
The ethical investment manager has reported record FUM as its growth trajectory continues apace.
The chief investment officers of UniSuper, HESTA, and TelstraSuper have elaborated on opportunities and risks that are top of mind when it comes to illiquid assets like private credit within their portfolios.
In an address to the National Press Club last week, the incoming chair of Australia’s sovereign wealth fund said institutional investors could play a role in the winding road towards net zero.
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