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The Asian Region Funds Passport builds on the aspiration of Aussie funds managers to develop a regional funds hub and open up new pathways into un-tapped markets. But the big question is: can the BDMs handle the cuisine?
Funds management marketers in Australia are brushing up on their Asian language skills and learning to acquire a taste for kimchi, Korea’s famously spicy spicy fermented vegetable dish.
The announcement last week that an Asian Region Funds Passport is to go ahead between the foundation countries of Australia, New Zealand , Singapore and Korea has local fundies eyeing off new opportunities to expand their markets beyond domestic borders.
A pilot of the passport program will commence in January 2016. It essentially means that each of the passport member countries will have conditional access to distribute funds management products to each other.
It paves the way, for example, for any Australian domiciled funds manager with aspirations to access the booming South Korean market and its 50 million-strong population.
And vice versa. Korean asset managers may also look at ways to compete for a slice of the $2 trillion funds management market here in Australia.
It’s been four years in the making and, now agreed, has the potential to attract new member countries from the region over time. Much was made at the official announcement of the benefits to each economy seeking to access investment funding in support of better funded infrastructure and investment generally.
As Singapore’s deputy Prime Minister, Tharman Shanmugaratnam, said: “It’s really about deepening the capital markets by bringing together investors with borrowers – that’s the whole objective”.
Of course. But that won’t stop enterprising Australian asset management firms sending forth their best and brightest to expand new horizons in neighboring markets, with minimal capital overhead.
And why not? After all, the European asset management brands have been dominant in the Asian region for decades. Competition and greater flow of people, capital and intellectual property can only be a good thing for each economy and individual industry participants.
