29/08/2012
Private management in Asia has its own rules
Asia is not another Switzerland, and the same recipes in private management do not lead to success there, Agefi Switzerland reports. The viability of many actors is under serious threat due to cost/income ratios of 80% to 100%. These are the findings of a study by the geneva-based consultant Newtone Associates, in collaboration with A.T. Kearney, of the private management market in Asia. This highly fragmented market is the subject of ferocious competition between managers, who are seeking to increase earnings and assets under management further, rather than ensuring sustainable profitability. A limited pool of talent penalises the development of clients and the setting of high objectives results in active acquisition of clients. Lastly, Asia is not free of increasing regulations, which results in higher costs. Asian managers are all the more affected, the study funds, since they are often less developedin terms of risk management and compliance.
