HONG KONG, May 9 /Xinhua-PRNewswire/ -- Following dramatic developments in global markets since late 2007, the investment management industry is entering a potential turbulent period. Greater attention is being placed upon Asia Pacific, where the Investment Management industry increasingly spurs ahead as a market of dramatic opportunity where the longer term outlook is bright, a recent KPMG report concludes.



However, doing business in Asia requires a decisiveness and fundamental country-by-country strategy to truly succeed in this fragmented environment. This is due to the diversity of regulations, cultures and languages which creates huge challenges for market entry and distribution strategies. To gain a competitive advantage, it is important to stay dynamic and adapt to the needs of this region’s ageing population since Asia Pacific accounts for more than 60 per cent of the world’s 6.5 billion population.

The rising level of wealth and prosperity among the middle class is one of the key drivers to the fund management industry. However, much of the wealth in Asia Pacific is held in unstructured assets, particularly real estate and bank deposits. It is estimated that Asia Pacific has at least USD 12 trillion in bank deposits. While this indicates strong opportunities for the Investment Management industry, KPMG argues that industry participants need to overcome numerous challenges, particularly with regards to regulations, talent management and distribution to capture market share.

Meanwhile, ageing populations and rising income levels are helping to drive pension market reforms and liberalization, and these factors will also have a positive effect on the wider financial markets, the report said.

“The tightening of credit markets may somewhat perversely increase the level of attention directed towards Asia Pacific,” says Bonn Liu, Financial Services partner with KPMG China. “This could exacerbate many of the challenges and barriers that we mention in this report, for example in terms of developing a sufficient pool of professional staff and raising the level of investor education.”

“But overcoming these initial barriers is key to targeting the 27.1 per cent of the global high net worth individuals located in Asia Pacific. The Investment Management industry needs to cautiously consider how it adapts to the uniqueness of this strategic marketplace with increasing sophistication.”



Note: Please click this link to access the full report:

http://www.kpmg.com.hk/redirect.asp?id=8766



About KPMG

KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 145 countries and have more than 123,000 professionals working in member firms around the world.

The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss cooperative. KPMG International provides no client services.

About KPMG China

KPMG China has eleven offices (including KPMG Advisory (China) Limited) in Beijing, Shenyang, Qingdao, Shanghai, Chengdu, Hangzhou, Fuzhou, Guangzhou, Shenzhen, Hong Kong SAR and Macau SAR, with more than 7,000 professionals.

In 1992, KPMG became the first international accounting firm to be granted a joint venture license in China, while our Hong Kong SAR operations have been in place for over 60 years since 1945. This early commitment to the China market, together with our unwavering focus on quality, has been the foundation of accumulated industry experience that cannot be rivaled, and is reflected in our appointment by some of China’s most prestigious companies.



As China businesses join the global economy and international companies seek to enter the China market, KPMG’s blend of international experience and local knowledge leaves us well-positioned to serve our clients in this increasingly complex, but exciting market.

Our single management structure for all our China offices allows efficient and rapid allocation of experienced professionals wherever a client is located in China. The flexibility of this single structure allows us to effectively serve companies across China -- and we have many projects where staff from different offices work together on project under the control of a single nominated client partner, who has operational control of all resources.

Our business in China has established industry groups, enabling targeted, industry-specific experience to be delivered where needed. For our clients this focus on industry and country specific knowledge means we can deliver exceptional people with an intimate knowledge of your specific business issues, as well as an overriding commitment to strive for the highest quality services. KPMG has a leading position in the China market and our clients include the most prestigious and sizeable companies.

SOURCE KPMG China