ASIA - Asian institutional investors do not have access to the same level of asset management service and investment expertise enjoyed by their counterparts in other regions, a study by Greenwich Associates has highlighted.
Markus Ohlig, consultant, Greenwich Associates, said: "Although Asia is growing rapidly as an institutional market, at present it cannot compare to the sheer size of the institutional asset bases in Japan, Europe and the United States.
"In addition, this comparatively modest institutional asset base is spread among nearly a dozen countries across an immense geographic region, which makes the economics of providing broad and intensive coverage quite unfavorable for asset management organisations."
The research also pointed out Asian institutional investors were more keen to have increased personal contact with their investment managers and with these firms' portfolio managers than investors from other regions.
"Asian institutions' dissatisfaction with the amount of personal attention they receive from their asset managers is a clear reflection of the coverage models used by investment management firms in the region," said Abhi Shroff, consultant, Greenwich Associates.
"Many Asian institutions are covered 'by plane' by service professionals located in Hong Kong and Singapore, and most of the portfolio managers running strategies that are not Asia-specific are located in Europe and the United States."
Greenwich said the situation was unlikely to change any time soon.
It concluded negative perceptions about asset manager service quality made Asian institutions less than confident in their managers' ability to deliver strong investment performance.
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