 |
 | |||||||||
| |||||||||
|
| |||||||||
| |||||||||
| Hong Kong takes lead in asset management ( 01/04/2004 ) | |||||||||
One of the largest asset management companies in the US, OppenheimerFunds Inc, chose Hong Kong as its first overseas office early this year. Chairman and CEO, John Murphy, said the firm was attracted by the sheer size of Hong Kong's mutual fund market. "The great potential and demand for financial products in this vibrant city provides the ideal environment for us to establish our first overseas office," he says. Other overseas asset management companies that have flocked to Hong Kong recently include Bank One, Janus International, Pioneer Investments and WestAM, the fund management arm of Westdeutsche Landesbank Girozentrale. "Hong Kong is one of the most important asset management centres in Asia," says Sally Wong, executive director of the Hong Kong Investment Funds Association (HKIFA). Positive factors support fund management growth "Factors that support the growth of the fund management industry here include the rule of law, the well-developed infrastructure, an abundant supply of professionals, a pragmatic regulatory regime that is conducive to market development and relatively low tax rates," adds Ms Wong. "The deposit base in Hong Kong is also large - about HK$3.5 trillion and there is much room for growth." According to the Securities and Futures Commission (SFC), the number of unit trusts and mutual funds it has authorised in the SAR stood at 1,981at the end of February 2004. Their estimated total net asset value amounted to US$531 billion. Ms. Wong says a 2002 HKIFA survey found that the fund penetration rate is only 9.5 per cent. "The opportunity for growth attracts fund managers to set up their business in Hong Kong," she explains. World class talent pool Dr Mark Konyn, CEO of Allianz Dresdner Asset Management which set up a base in Hong Kong in 1983, says "Hong Kong is an extremely reliable place to do business. This is important as finance is based on trust." Another key factor is the high quality of local staff. "The talent pool is quite deep here and the depth of skills in the marketplace is world class," says Dr Konyn. "The workforce is dynamic, with so many professionals having been educated overseas or having experience of working for different international firms." "It's a question of the mindset, knowing what it takes to operate in an international environment, knowing that there are different perspectives, positions, and having a service culture. These are all things you need in fund management." Ms. Wong adds that a further factor attracting fund managers is the increasing affluence of the population on the Chinese mainland and the gradual opening of the capital account there. "We believe that in the long run, that will be an area that will enable fund managers to offer investment management services," she says. Dr. Konyn agrees pointing out that his company became the first, via a joint venture, to launch a fund on the mainland last year. Although the fund is based in Shanghai, it was set up out of Hong Kong. "To really get a handle on what is happening in China, Hong Kong is ideally located," he says. "You must be here." Related links | |||||||||
| |||||||||
|
|
