The future's passive for Asia distributors
Distributors in Asia face a future of having two mutual fund lists with passive at the centre of their portfolios, according to new research. It comes amid anticipated regulatory changes and an outcry over high fees.
Asian distributors will increasingly have two mutual fund lists with passive funds as their core portfolio building blocks, a research house has predicted.
This trend is set to be driven by the anticipated ban on retrocession or trail fees in Asia, as well as investors’ unwillingness to pay high fees for mediocre returns.
Shu Mei Chua, associate director at Cerulli Associates, said distributors in Asia typically have a single fund list comprising the majority of active funds as …
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