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This report analyzes the current status of the fund industry of several countries in the Asia-Pacific region.
Based on Korea’s experience, we set two groups: Core target countries with over $10,000 per capita GDP where fund demand is expected to increase fast; and potential target countries with per capita GDP between $5,000 and $10,000. According to this approach, Australia, Japan, Taiwan, and Malaysia were in the core target while Thailand and Indonesia were categorized as potential targets.
Taking population into account, we calculate potential market sizes. Japan has the largest potential fund market. Also, Indonesia and Thailand, both largely populated, have high potential for offshore sales.
We investigate the relative share of fund investment in GDP and compare it to financial capital accumulation. According to this, Australia has the highest share of fund investment, while fund investment in Japan and Taiwan represent lower shares relative to their financial capital accumulation.
We also found that Malaysia has a well-developed fund industry considering its financial asset accumulation, and that Indonesia and Thailand have lower financial capital accumulation and under-developed fund industries.
Our report reveals that Australia has a sound regulatory environment, and that Thailand and Indonesia have relatively reasonable regulations for authorization, registration, and fund management of asset management companies.
By analyzing the fund market, industry landscape, and regulatory regime of target countries, we hope this report is helpful to asset management companies seeking to expand their overseas businesses, and also to the Korean government as it makes efforts to internationalize the asset management market.