September 17, 2024  — Companies that distribute investment funds to retail investors in Asia expect to see strong demand for both equity and fixed-income products in the coming year.  

Approximately three-quarters of the Asian fund distributors participating in the Coalition Greenwich 2024 Asian Intermediary Fund Distribution Study expect to see increased inflows from their retail investors into international/global equities and U.S. equities in the next 12 months. Fully 70% of fund distributors expect to see increased inflows into investment-grade bonds in the next year, and 55% expect increased flows into high-grade government bonds. 

Over the past year, with global equity market performance driven by the technology sector, investors on Asian retail fund platforms poured assets into equity growth strategies and into thematic equity strategies that provide exposure to specific performance drivers like artificial intelligence. 

“Fund distributors in Asia are keeping a close eye, not only on market direction, but also on concentration levels in U.S. equities and the performance of the handful of tech firms that have driven returns in growth strategies more broadly,” says Arifur Rahman, Senior Relationship Manager at Coalition Greenwich and co-author of How Fund Companies Secure Spots on Asian Retail Distribution Platforms.

Standing Out in a Crowded Market
Gatekeepers for Asian fund platforms are highly selective and in times of volatility, platforms tend to gravitate to large and well-known asset managers, awarding platform spots and support to fund companies with name brands and established track records that inspire confidence among investors. 

For 2024, Allianz Global Investors is once again named the Greenwich Quality Leader in Asian Intermediary Fund Distribution. This year’s recognition marks the fifth year Allianz Global Investors has been recognized.

“Investment performance is the great equalizer,” says Ken Yap, Head of Investment Management – Asia at Coalition Greenwich and report co-author. “Our data shows that fund providers can also win over platform gatekeepers by demonstrating superior investment capabilities, a good fit between their products and the needs of both the distributor and platform investors, competitive fees, and information sharing that helps distributors and their investors.”