PRODUCT DETAILS Included with Purchase y Asset Management in Southeast Asia 2021 y Digital report in PDF format Key findings Sustaining a Winning Streak in a New Era y Unlimited online firm-wide access y Analyst support y Exhibits in Excel y Interactive Report Dashboards OVERVIEW & METHODOLOGY This annual report covers both retail and institutional segments in Southeast Asia, including Interactive Report Malaysia, Thailand, Indonesia, the Philippines, and Vietnam, as well as Singapore in select Dashboards chapters. In the retail space, Cerulli sizes the mutual fund markets and discusses product, Interact and explore select report data regulatory, competitive developments, and distribution, among other topics. In the institutional with Cerulli’s visualization tool. space, Cerulli looks at market sizing, both in terms of investable and addressable assets, and identifies which institution types and markets provide the best outsourcing potential for managers. The report also discusses three key region-wide themes that managers are most concerned about, including key retail investment trends, opportunities in the institutional segment, and y Retail Market Overview: Analyze historical and projected mutual fund challenges and prospects of building Shariah fund business. These insights will help asset assets under management (AUM) and growth rates by country, asset managers assess market opportunities, particularly in determining the types of products to marketshare by investment objective, and net new inflows by investment launch and creating strategic positioning in these markets. objective across Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. USE THIS REPORT TO y Retail Distribution Trends: Explore a side-by-side comparison of asset managers’ views on distribution channels in which they intend to increase y Discover key investment themes that attracted good inflows from retail investors last year their use over the next few years, their most important criteria in selecting amid the COVID-19 pandemic, and the various approaches used by asset managers across product partners, and the strategies that they plan to use as they work with different markets to sell these products external managers for new funds. y Understand why asset owners are considering alternative and foreign investments to y Institutional Market Overview: Gain insight into the institutional market achieve their target returns in a low-interest-rate environment across five major markets in Southeast Asia, including investable assets and y Explore the available and potential outsourcing opportunities for asset managers within the the percentage of assets outsourced, marketshare of investable assets by institutional segment institution type, and retirement assets by investment objective. y Examine the key challenges hindering the growth of the Shariah asset management industry, y Institutional Strategies and Outsourcing Trends: Understand as well as new developments aimed to support the growth of this segment institutional asset managers’ views and importance placed on several different client investment strategies, and review side-by-side comparisons QUESTIONS ANSWERED among asset managers in each country on their assessments of how to secure mandates, and which institution types they expect will lead issuance y What were the biggest retail trends in 2020, and what will be the emerging trends in the next of new mandates in 2021. two to three years? y What is the state of wealth management business in the Southeast Asian ex-Singapore region? y What are the main investment challenges facing asset owners and how can asset managers tap into the institutional market? y What are the main challenges that hinder the growth of the Shariah asset management, and the prospects of this segment? y How has the COVID-19 pandemic accelerated digital adoption in the region? Cerulli Associates | [email protected] | www.cerulli.com Asset Owners Tap Alternative, Foreign Assets in Yield Chase Chapter 2 Exhibit 2.04 Southeast Asian Institutional Investable Assets by Institution Type, 2018–2020E Sources: Cerulli Associates Singapore Indonesia Central bank Pension Insurance Others institutions SWF Central bank Pension Insurance Others institutions 100% 100% 3.3% 3.3% 3.8% 14.6% 14.3% 13.7% 80% 80% 56.2% 55.5% 50.9% 25.7% 26.7% 29.1% 60% 60% 1.3% 1.3% 40% 1.4% 12.9% 11.5% 12.3% 40% 2.2% 2.4% 2.3% 56.5% 55.7% 53.5% 20% 20% 28.5% 28.6% 32.6% 0% 0% 2018 2019 2020E 2018 2019 2020E Malaysia Thailand Central bank Pension Insurance Others institutions SWF Central bank Pension Insurance 100% 100% 7.1% 6.8% 5.8% 3.9% 3.7% 3.7% 27.0% 13.4% 13.7% 14.1% 29.7% 28.4% 80% 80% 60% 60% 35.3% 35.1% 34.6% 53.3% 54.8% 55.5% 40% 40% 20% 20% 37.6% 35.2% 37.0% 22.3% 21.0% 20.9% 0% 0% 2018 2019 2020E 2018 2019 2020E The Cerulli Report | Asset Management in Southeast Asia 2021 39 Table of Contents Click for Interactive Report Dashboard Table of Contents: Expanded of indicated exhibit Methodology . 16 Exchange Rates . 22 Chapter 1: The Rise of Thematics and Sustainability in the Retail Market . 23 Seeking higher returns abroad............................................................................................................23 Exhibit 1.01. Southeast Asia ex-Singapore Mutual Fund Industry’s Foreign Exposure, 2016–2020 ..............................................24 Thematic strategies at play...............................................................................................................24 Exhibit 1.02. Southeast Asia ex-Singapore Foreign-Invested Mutual Fund Assets by Investment Objective, 2016–2020............................25 Exhibit 1.03. Top 10 Fund Sectors by Net New Flows in Malaysia, 2020.....................................................................26 Exhibit 1.04. Top 10 Fund Sectors by Net New Flows in Thailand, 2020.....................................................................26 Exhibit 1.05. Top 10 Performing Funds in the Philippines, 2020 ...........................................................................27 Exhibit 1.06. Thematic Equity Fund Launches in Southeast Asia ex-Singapore, 2020–1Q 2021 .................................................28 Sustainability the new talk of the town .....................................................................................................29 Exhibit 1.07. Greater China Equity Fund Launches in Southeast Asia ex-Singapore, 2020–1Q 2021.............................................30 Exhibit 1.08. ESG-Related Fund Launches in Southeast Asia ex-Singapore, 2020–1Q 2021 . 31 Exhibit 1.09. Southeast Asia ex-Singapore Asset Managers’ Plans for ESG-Related Product Launches Over the Next Two to Three Years, 2021.......................................................................................................32 Tapping wealthy individuals..............................................................................................................33 Exhibit 1.10. Southeast Asia ex-Singapore Asset Managers’ Views on High-Net-Worth Individuals’ Preferred Investment Themes, 2021................................................................................................33 Partnership opportunities aplenty.........................................................................................................34 Exhibit 1.11. Southeast Asia ex-Singapore Managers’ Views on High-Net-Worth Investors’ Geographical Preference for Private Banking Services, 2021............................................................................................35 Exhibit 1.12. Thai Managers’ Views on Key Considerations Investors Have When Investing in Foreign Investment Funds, 2021.....................36 Product innovation and relationship building are key ........................................................................................36 Chapter 2: Asset Owners Tap Alternative, Foreign Assets in Yield Chase . 37 Exhibit 2.01. Southeast Asian Institutional Addressable Assets by Institution Type, 2016–2020E ...............................................37 Exhibit 2.02. GIC’s Assets, 2015–2019 .................................................................................................38 Exhibit 2.03. Temasek’s Investable Assets, March 2016–March 2020........................................................................38 Exhibit 2.04. Southeast Asian Institutional Investable Assets by Institution Type, 2018–2020E .................................................39 Exhibit 2.05. Southeast Asia ex-Singapore Asset Managers’ Views on Pick-up of Institutional Mandates in 2021 .................................40 Meeting target returns...................................................................................................................40 The Cerulli Report | Asset Management in Southeast Asia 2021 9 Table of Contents Boosting foreign exposure ...............................................................................................................41 Exhibit 2.06. Southeast Asia ex-Singapore Asset Managers’ Expectations on Institutions Leading Issuance of New Mandates in 2021 ..................................................................................................41 Exhibit 2.07. Southeast Asia ex-Singapore Asset Managers’ Views on Institutional Investors’ Realistic Target Return Considering the Prolonged Low-Interest-Rate and COVID-19 Situation in 2021 . 41 Exhibit 2.08. Employees Provident Fund Investable Assets 2016–2020E ....................................................................42