The Asian fund management industry has been dealt a blow by the release of figures that show the speed of outflows increased in the final quarter of 2010.
Asian investors pulled a net $23.3 bn from domestic funds in Q4 of last year, adding to net outflows of $17.5 bn in Q3, reports the Financial Times, quoting data from Lipper FMI. The outflows from Q3 alone had canceled out inflows in the first half of the year, adds the newspaper.
The slump in assets under management is being driven by a number of different factors, according to the FT, including: the legacy of the financial crisis, which has left investors wary of the fund management industry; new regulation (particularly in India and Hong Kong); and the short-term, momentum-driven mindset of investors in the region.
Source: Financial Times