Asset managers view Hong Kong as the best Asian market for distributing Ucits funds followed by Taiwan and Singapore.
Nearly a third, 29%, of the 50 large asset managers surveyed chose Hong Kong from a list of six Asian countries, while 21% said Taiwan and 20% said Singapore.
Respondents to the BNP Paribas Securities Services research said these states had strong asset management networks, experienced staff and good infrastructure. However, they also said the time and cost of registering Ucits funds in these markets was a challenge, and reported a slowdown in the speed of approvals in Hong Kong.
South Korea, Japan and Malaysia were said to be less appealing because investors in these markets prefer local funds. South Korea still presents a challenge in terms of language and culture, said the survey participants, while the legislative environment in Malaysia was said to be difficult. In Japan, market trends “indicate the country remains heavily in favour of domestic onshore funds”, said BNP Paribas.
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