APAC managers to boost PE funds in product mix

South-East Asia, Japan and China are target markets for asset managers, according to a survey by State Street.

Asset management firms in the Asia-Pacific region expect to add more private equity funds to their product mix in the next five years, according to a report by State Street.

Of the 250 asset managers surveyed from 15 countries, almost all of the 50 APAC-based managers plan to offer more private equity funds by 2023, a 24 percent increase from 2018, according to the firm’s State Street 2018 Fund Strategy Survey.

Asset managers are also looking to expand their product range across other asset classes – 88 percent plan to offer multi-strategy funds, 80 percent to offer real estate funds, and 70 loan/debt funds in five years, compared with 60 percent, 66 percent and 54 percent today, respectively.

“Asset managers are increasingly focused on developing solutions for clients’ more sophisticated needs in the region,” Mark England, head of asset management and insurance, sector sales, Asia-Pacific at State Street, said. “It’s clear from this data that multi-asset strategies and a wider range of alternative asset classes are seen as important to achieving this.”

By regional opportunities, the survey found that 80 percent of APAC managers expect to have distribution in South-East Asia in the next five years, followed by 74 percent who expect to have distribution in Japan and 60 percent in China within the same timeframe. This represents a 22 percent, 24 percent increase and 12 percent increase from when the survey was conducted.

Market participants will have to work more closely with regulators across multiple markets to ensure regulatory compliance in order to expand their product ranges, England added.