cerulli Interactive Report Dashboards Strategizing for Success $19,000 Overview & Methodology Benefits: Questions Answered: NEW Annual

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1 Asset Management in Southeast Asia 2017 Strategizing for Success Overview & Methodology In its eleventh iteration, this report analyzes the asset management industry in Southeast Asia, including Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. It covers regulatory changes, demographics, market sizing, product development, domestic and cross-border opportunities, and distribution strategies in each country, and across the region. The report also assesses Southeast Asia s institutional market sizing, and accessibility of such assets by external managers. Data comes from proprietary surveys conducted with some of the largest asset managers by assets under management in each market. Interviews were done with more than 60 participants, including asset managers, distributors, regulators, and institutions across Malaysia, Indonesia, Thailand, Philippines, Vietnam, and Singapore. Benefits: y Analyze the opportunities available by market size, product and distribution trend, regulatory changes, and institutional outsourcing y Review the viability of entry strategies in the retail space, including the master-feeder route, the fund-of-fund scheme, subadvisory arrangements, mergers and acquisitions, and setting up an onshore presence alone y Assess the latest key outsourcing trends and potential mandate opportunities in the institutional space y Gain insight into the size of Southeast Asia s mutual fund and institutional markets, and how accessible they are to foreign/external fund houses Questions Answered: y What are the key regulatory developments in Southeast Asia, and what do they mean for asset managers? y How is Southeast Asia s distribution landscape evolving, and what does this imply for fund houses? y What is the most viable strategy for foreign firms wanting to tap into retail assets in Southeast Asia? y What is the outlook for Shariah asset management opportunities in Malaysia and Indonesia? Subscription details $19,000 Purchase Includes y Digital copy and hardcopy in color y Online access to 11 related reports y Unlimited online firm-wide access y Exhibits in Excel y Key findings y Analyst support y Interactive Report Dashboards NEW y Executive Summary Video NEW Research Included with Subscription y Ten years of The Cerulli Report Asset Management in Southeast Asia y Shariah Investing: Market Sizing & Analysis 2008 For more information, contact us: ``info@cerulli.com Annual 260 PAGES 150 EXHIBITS cerulli Interactive Report Dashboards Experience Cerulli s digital analytics platform and explore interactive data from this report The following interactive dashboards are included with your subscription: NEW 1. Market Overview: Understand the size of the retail and institutional markets in Southeast Asia, including mutual fund and institutional investable assets by investment objective and growth rate. 2. Retail Country Overview: Analyze asset and flow allocation and distribution trends by country. 3. Institutional Country Overview: Explore investable assets by institution type, institution, and country. Cerulli Associates info@cerulli.com

2 What are Interactive Report Dashboards? As part of your Cerulli report subscription, we are pleased to provide you with Interactive Report Dashboards that allow you to interact with report data in unique ways: ACCESS Access consolidated data from multiple report exhibits in a single comparative view. FILTER DATA Apply filters to Cerulli report analyses including assets under management, net new flows, product type, channel, year, marketplace, and currency. EXPORT Easily build and export custom charts. Export options include; Excel, PDF, or image file. My Account: Joe Q. Sample How to Access Interactive Report Dashboards This service is complimentary and is accessible through our website. Use your unqiue Cerulli website login credentials, and you will find a View Interactive Report Dashboards link to this platform under My Reports. Interact View Dashboard You can also jump to related Interactive Report Dashboards in the report PDF by clicking on the Interact button shown on the left for reference. USER LOGIN To obtain online access, please visit or contact our account management team at: ``info@cerulli.com ` ` CERULLI ASSOCIATES info@cerulli.com

3 Philippines Chapter 9 Exhibit Philippine Asset Managers External Fund Manager Selection Criteria, 2017 Source: Cerulli Associates Most important Least important 1 Long-term track record Reputation/brand of external manager Financial strength/ AUM of external manager Knowledge transfer/ training programs Product innovation Low turnover of investment team Presence of local servicing office Before they go through their fund and manager selection criteria, local fund houses first look at what is missing in their product suite. Any offshore fund that they will add to their shelves has to cover a gap in their offerings. A manager s track record, reputation, and financial strength continue to be the three most important criteria Philippine fund houses look at in their external manager selection. They acknowledge that given the small size of the Philippine fund market, foreign managers would not consider setting up a local office to serve them. Brand recall of a foreign fund house matters to local fund houses, so Metropolitan Bank and Trust s choice of Investec for its first feeder fund the Metro World Equity Feeder Fund came as a surprise to some other local managers as it is not a known brand in the country. Nonetheless, the fund, which is targeted at high-net-worth and mass affluent investors attracted US$4 million on its first day in September 2016 and has earned US$8 million in total AUM by early February Key Implication: Trust players continue to deal with the challenge of not being able to use master funds that invest in derivatives. They said that under the current regulation, it is tough for them to find master or target funds that do not invest in derivatives. They are now pushing for a rule change and have submitted a position paper to BSP asking it to allow the use of derivatives beyond hedging purposes and to let trust players feed into master funds that invest in derivatives. BSP s capital markets department is reviewing the current framework to potentially allow banks and trust firms to use derivatives in investments. Now that the Investment Company Act s latest IRRs are allowing a more relaxed use of derivatives by MFCs, BSP may be more open to relaxing its own rules. The Cerulli Report Asset Management in Southeast Asia

4 Table of Contents Table of Contents: Overview Report Overview Methodology...13 Executive Summary Key Questions Answered...16 Exchange Rates...20 Chapters Chapter 1: Distribution...21 Chapter 2: Retail Strategy...29 Chapter 3: Institutional Asset Management...40 Chapter 4: Shariah Asset Management Chapter 5: Regional Overview Chapter 6: Malaysia...87 Chapter 7: Thailand Chapter 8: Indonesia Chapter 9: Philippines Chapter 10: Vietnam Glossary Index of Companies The Cerulli Report Asset Management in Southeast Asia 2017

5 Table of Contents Table of Contents: Expanded Key Questions Answered How are the distribution dynamics changing in Southeast Asia s funds industry? What is the most viable strategy for foreign firms keen to tap Southeast Asian retail assets? What are the current institutional trends in Southeast Asia? How large is Southeast Asia s Shariah asset management industry, and where do future opportunities lie?...19 Exchange Rates Chapter 1: Distribution...21 Exhibit 1.01 Regulatory and Other Developments in Southeast Asia ex-singapore s Distribution Space, H Exhibit 1.02 Thai Asset Managers Views on the Impact of Foreign Managers Distributing Their Funds Onshore Directly, Exhibit 1.03 Thai Master-Feeder and Fund-of-Funds Schemes by Assets Under Management and Number of Funds, Exhibit 1.04 Third-Party Online Fund Platforms in Southeast Asia ex-singapore, Exhibit 1.05 Southeast Asian Asset Managers Views on the Importance of Private Bank Distribution, Chapter 2: Retail Strategy...29 Exhibit 2.01 Southeast Asia ex-singapore Locally Domiciled Mutual Fund Assets Under Management by Foreign Exposure, Exhibit 2.02 Cerulli s Assessment of Retail Strategies for Southeast Asia, Exhibit 2.03 Top 10 Master Fund Managers in Southeast Asia by Assets Under Management, Exhibit 2.04 Largest 15 Feeder Funds in Malaysia and Thailand by Assets Under Management, Exhibit 2.05 Southeast Asian Asset Managers Plans to Work With External Managers for New Funds Within the Next 12 to 18 Months, Exhibit 2.06 Manulife Asset Management Services Mutual Fund Assets Under Management and Ranking, Exhibit 2.07 Entrants and Exits in Malaysia, Thailand, and Indonesia Between 2012 and Exhibit 2.08 Number of Mutual Fund Managers With Assets Under Management in Specific Ranges, Chapter 3: Institutional Asset Management...40 Exhibit 3.01 Alternative Asset Allocations by State Pension Funds in Southeast Asia ex-singapore, Exhibit 3.02 Estimated Asset Allocation Breakdown of Asset Managers Institutional Assets Sourced from Southeast Asia ex-singapore, Exhibit 3.03 Asset Managers Views on Strategies that Southeast Asian ex-singapore Institutions Are Likely to Seek in The Cerulli Report Asset Management in Southeast Asia

6 Table of Contents Exhibit 3.04 Selected Southeast Asian ex-singapore Institutions Overseas Investment Allocations, Exhibit 3.05 Selected Southeast Asian ex-singapore Institutions Divestments, Exhibit 3.06 Total Discretionary Assets Managed by Local Managers, Chapter 4: Shariah Asset Management Exhibit 4.01 Southeast Asian Islamic Mutual Fund Assets Under Management and Net New Flows, Exhibit 4.02 Malaysian Shariah vs. Non-Shariah Funds Returns, Exhibit 4.03 Malaysia s Islamic Fund and Wealth Management Blueprint Recommendations, Exhibit 4.04 Selected Malaysian Institutions Shariah-Compliant Assets as a Percentage of Total Portfolio, Exhibit 4.05 Approved Overseas-Invested Shariah Mutual Funds in Indonesia, April Exhibit 4.06 Challenges of Offering Shariah-Compliant Funds in Indonesia, Chapter 5: Regional Overview Exhibit Southeast Asian Mutual Fund Assets Under Management by Country, E Exhibit Southeast Asian Household Financial Assets and Mutual Fund Penetration Rate, E...59 Exhibit Southeast Asian ex-singapore Mutual Fund Net New Inflows, Exhibit Southeast Asian Mutual Fund Assets Under Management Marketshare by Investment Objective, Exhibit Largest 20 Mutual Fund Managers in Southeast Asia ex-singapore by Assets Under Management, Exhibit Top Feeder and Master Fund Managers in Malaysia and Thailand by Assets Under Management, Exhibit Southeast Asian Asset Managers Plans to Work with External Managers for New Funds, Exhibit Southeast Asian Asset Managers Product Partnerships Selection Criteria, Exhibit Southeast Asian ex-singapore Mutual Fund Assets Under Management by Distribution Channel, Exhibit Southeast Asian Asset Managers Views on the Importance of Distribution Channels to Their Assets Under Management and Profitability, Exhibit Southeast Asian Asset Managers Views on the ASEAN Collective Investment Scheme, Exhibit Mutual Funds Approved Under the ASEAN Collective Investment Scheme, April Exhibit Mutual Funds Approved Under the ASEAN Collective Investment Scheme, April Exhibit Southeast Asian ex-singapore Institutional Investable Assets by Country, E...74 Exhibit Marketshare of Southeast Asian ex-singapore Institutional Investable Assets by Institution Type, E...75 Exhibit Percentage of Southeast Asian ex-singapore Institutional Assets Outsourced by Country, E Exhibit Southeast Asian ex-singapore State Pension Assets by Investment Objective, E...79 Exhibit Southeast Asian ex-singapore State Pensions Outsourced Assets by Country and Investment Objective, E Exhibit Southeast Asian ex-singapore Asset Managers Views on How to Secure Mandates with Institutions, Exhibit Largest Institutions in Southeast Asia ex-singapore, The Cerulli Report Asset Management in Southeast Asia 2017

7 Table of Contents Chapter 6: Malaysia Exhibit Malaysian Fund Management Industry Overview, Exhibit Malaysian Mutual Fund and EPF Members Investment Scheme Net New Inflows, Exhibit Malaysian Unit Trust Assets Under Management Marketshare by Investment Objective, Exhibit Largest 10 Mutual Fund Managers and Islamic Mutual Fund Managers in Malaysia, Exhibit Largest 15 Feeder Funds in Malaysia by Assets Under Management, Exhibit Largest 10 Local and Foreign Managers by Feeder Fund Assets Under Management, Exhibit Estimation of LOLA Wholesale Fund Mandates, May 2016 to April Exhibit Malaysian Asset Managers Plans to Work with External Managers for New Funds within the Next 12 to 18 Months, Exhibit Malaysian Asset Managers Views on Product Partner Selection Criteria, Exhibit Malaysian Unit Trust Fees, Exhibit Malaysian Unit Trust Assets Under Management and Sales by Distribution Channel, Exhibit Malaysian Asset Managers Views on the Importance of Distribution Channels, Exhibit Malaysian Asset Managers Views on Distribution Channels They Plan to Increase Their Usage of Over the Next Three Years, Exhibit Malaysian Asset Managers Views on the ASEAN Collective Investment Scheme, Exhibit Malaysian Mutual Fund Assets Under Management Projections, E Exhibit Malaysian Licensed Fund Management Companies Discretionary Assets by Client Type, Exhibit Malaysian Institutional Investable Assets, Exhibit Employees Provident Fund Asset Allocation, Exhibit Employees Provident Fund s Outsourced Assets, Exhibit Kumpulan Wang Persaraan External Manager List, Exhibit Social Security Organisation and Lembaga Tabung Angkatan Tentera Asset Allocation, Exhibit Khazanah Nasional s Assets and Geographic Exposure, Exhibit Lembaga Tabung Haji s Asset Allocation and Other Statistics, Exhibit Malaysian Asset Managers Views on Relationship Management and Institutional Clients Engagement With Investment Consultants, E Exhibit Malaysian Asset Managers Views on How to Secure Mandates With Malaysian Institutions, The Cerulli Report Asset Management in Southeast Asia

8 Table of Contents Chapter 7: Thailand Exhibit Snapshot of Regulatory Developments in Thailand, H Exhibit Thai Mutual Fund Assets Under Management, Exhibit Thai Mutual Fund Assets Under Management Projections, E Exhibit Thai Mutual Fund Net New Inflows by Investment Objective, 2012E 2016E Exhibit Thai Mutual Fund Assets Under Management Marketshare by Investment Objective, Exhibit Retirement Mutual Funds and Long-Term Equity Funds, Exhibit Thai Mutual Fund Fees, Exhibit Fund Managers in Thailand, Exhibit Thai Overseas Mutual Fund Assets Under Management by Fund Manager, Exhibit Number of Foreign Investment Funds by Structure, Exhibit Largest 15 Feeder Funds in Thailand by Assets Under Management, Exhibit Largest 10 Feeder Fund and Master Fund Managers in Thailand by Assets Under Management, Exhibit Thai Mutual Fund Assets Under Management by Distribution Channel, Exhibit Thai Asset Managers Views on the Importance of Distribution Channels, Exhibit Thai Asset Managers Views on Distribution Channels They Plan to Increase Their Use of Over the Next Three Years, Exhibit Thai Asset Managers Plans to Work with External Managers for New Funds Within the Next 12 to 18 Months, Exhibit Thai Asset Managers Views on External Fund Manager Selection Criteria, Exhibit Thai Asset Managers Views on the ASEAN Collective Investment Scheme, Exhibit Thai Institutional Investable Assets, Exhibit Thai Government Pension Fund Assets by Investment Objective, Exhibit Thai Government Pension Fund Outsourced Mandates, Exhibit Thai Social Security Fund Assets by Investment Objective, Exhibit Thai Provident Fund Assets Under Management, Exhibit Largest 10 Provident Fund Managers in Thailand, Exhibit Thai Investable Life Insurance Assets, Exhibit Thai Private Fund Assets Under Management, Exhibit Largest 10 Private Fund Managers in Thailand, Exhibit Thai Asset Managers Views on How to Secure Mandates with Thai Institutions, The Cerulli Report Asset Management in Southeast Asia 2017

9 Table of Contents Chapter 8: Indonesia Exhibit Snapshot of Regulatory Developments in Indonesia, H Exhibit Indonesian Mutual Fund Assets Under Management, Exhibit Indonesian Mutual Fund Net New Inflows, Exhibit Indonesian Mutual Fund Assets Under Management by Investment Objective, Exhibit Indonesian Shariah Fund Assets Under Management by Investment Objective, Exhibit Approved Foreign-Invested Shariah Funds in Indonesia, December Exhibit Largest 10 Mutual Fund Managers in Indonesia, Exhibit Foreign-Owned Indonesian Fund Managers Assets Under Management, Exhibit Total Commercial Banking Assets and Third-Party Deposits in Indonesia, Exhibit Projected Indonesian Mutual Fund Assets Under Management, E Exhibit Indonesian Mutual Fund Assets Under Management by Distribution Channel, Exhibit Indonesian Asset Managers Views on the Importance of Distribution Channels to Their Assets Under Management and Profitability, Exhibit Indonesian Asset Managers Views on Distribution Channels They Plan to Increase Their Use of Over the Next Three Years, Exhibit Indonesian Mutual Fund Fees, Exhibit Indonesian Institutional Investable Assets, Exhibit BPJS Ketenagakerjaan Assets Under Management by Investment Objective, Exhibit Indonesian Pension Fund Assets Under Management by Investment Objective, Exhibit Indonesian Private Pension Fund Investment Assets and Investment Portfolio, Exhibit Indonesian Life Insurance Investment Assets and Portfolio, Exhibit Indonesian Asset Managers Views on How to Secure Mandates with Indonesian Institutions, Chapter 9: Philippines Exhibit Snapshot of Regulatory Developments in the Philippines, H Exhibit Philippine UITF and Mutual Fund Assets Under Management, Exhibit Philippine Investment Fund Net New Inflows by Investment Objective, Exhibit Philippine Mutual Fund Assets Under Management Marketshare by Investment Objective, Exhibit Philippine UITF Assets Under Management Marketshare by Investment Objective, Exhibit Philippine Mutual Fund Assets Under Management by Distribution Channel, Exhibit Largest 10 Philippine Mutual Fund and UITF Managers by Assets Under Management, Exhibit Philippine Asset Managers Plans to Work with External Managers and Planned Geographical Exposure of Product Partnerships, Exhibit Philippine Asset Managers External Fund Manager Selection Criteria, The Cerulli Report Asset Management in Southeast Asia

10 Table of Contents Exhibit Foreign-Invested Feeder Funds and Funds of Funds in the Philippines, December Exhibit Philippine Investment Fund Fees, Exhibit Philippine Asset Managers Views on the Importance of Distribution Channels, Exhibit Projected Philippine UITF and Mutual Fund Assets Under Management, E Exhibit Philippine Institutional Investable Assets, Exhibit Philippine Government Service Insurance System Assets by Investment Objective, Exhibit Philippine Social Security System Assets by Investment Objective, September 2012 November Exhibit Top 10 Philippine Life Insurance Companies by Total Assets, Exhibit Philippine Trust and Agency Accounts Asset Size, Exhibit Philippine Asset Managers Channels for New Mandate Opportunities, Exhibit Philippine Asset Managers Views on How to Secure Mandates from Philippine Institutions, Chapter 10: Vietnam Exhibit Public Mutual Fund Assets Under Management, Exhibit Closed-End Public Funds, Exhibit Open-End Funds in Vietnam, March Exhibit List of Member Funds in Vietnam, March Exhibit List of Fund Management Companies in Vietnam, March Exhibit Number of Banks in Vietnam, Exhibit Net Inflows of Vietnam-Invested Offshore Open-End Funds by Market, Year-to-March Exhibit Top 10 Vietnam-Invested Offshore Open-End Funds by Asset Under Management, March Exhibit Top 10 Vietnam-Invested Offshore Closed-End Funds by Asset Under Management, March Exhibit Snapshot of Vietnam-Invested Exchange-Traded Funds, March Exhibit Vietnam Social Security Snapshot, Exhibit Vietnam s Proposed Voluntary Pension Scheme, Exhibit Total Assets and Gross Written Premiums of Vietnamese Life Insurance Industry, E Glossary Index of Companies The Cerulli Report Asset Management in Southeast Asia 2017

11 Index of Companies Index of Companies Aberdeen Asset Management...31, 38, 39, 186 Accenture...59 Affin Hwang Asset Management...31, 32, 50, 52, 96, 98 Algemene Pensioen Groep...42 Alibaba Group Holdings...45 Allianz Life AmFunds Management... 34, 100 Amundi Asset Management... 39, 73, 156 Andbank Asset Management Arabesque Asset Management... 34, 67 Ashmore Investment Management...38 ATR Asset Management... 26, 201 ATRAM Trust Corporation... 26, 201, 208 AXA Investment Management... 38, 147 Axiata Group B&I Capital Bank CTBC Indonesia Bank of the Philippine Islands...26, 56, 201, 230 BBL Asset Management...138, 147, 168 BDO Private Bank... 28, 209 BDO Unibank...25, 56, 80, 201, 207, 209, 222, 230 BIMB Investment Management... 34, 67 BlackRock... 23, 32, 98, 100 Bloomberg BNI Asset Management BNP Paribas Investment Partners... 26, 31, 39, 179, 191, 244 Bordier & Cie... 28, 59 BPI Asset Management and Trust Corporation...24, 32, 201, 230 Broadridge , 182 Capital Link Holdings... 38, 142 CB Insights China Asset Management... 34, 67, The Cerulli Report Asset Management in Southeast Asia 2017

12 Index of Companies Chubb Life... 21, 198 CIMB Niaga CIMB-Principal Asset Management Ciptadana Asset Management Citibank... 23, 30, 38, 130, 152, 218 COL Financial...26 COL Fund Source Columbia Threadneedle Investments...39 CPR Asset Management Credit Suisse... 28, 59 Crescent Wealth... 34, 67, 102 CSOP Asset Management... 34, 67, 149 Dai-ichi DBS Bank...38 Deutsche Asset Management Direxion Dong A Securities Investment Fund Management E.I. Sturdza Eastspring Investments... 39, 96 Fidelity International...31 First Metro Asset Management , 209 First Metro Securities... 26, 208 First State Investments...38 Fractal...45 FundsMart...261, 208, 216 Garena...45 GMT Asset Management... 63, 182 Goodman Group...40 Hong Leong Asset Management...63 HSBC Bank... 38, 152 ifast Capital...25 ifast Financial IHH Healthcare Indivara... 26, 208 Indo Premier Investment Management Invesco...23 The Cerulli Report Asset Management in Southeast Asia

13 Index of Companies Invesco Real Estate...40 Investec Asset Management... 67, 213 J.P. Morgan Asset Management... 19, 23, 31, 32, 54, 65, 98, 178 Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) KAF Investment Funds... 34, 67, 102 Kasikorn Asset Management...27, 31, 32, 65, 149, 151, 165, 168 Kasikornbank... 28, 59, 150 KEB Hana Indonesia Korea Investment Management Krung Thai Asset Management... 28, 136, 168 Krungsri Asset Management... 28, 31, 147 Krungsri Bank... 28, 150 LandBank Legg Mason...23 Lombard Odier... 28, 59 MKL Mutual...36 Macquarie Group...42 Mandiri Asset Management... 19, 32, 54, 63, 177, 178 Manulife... 36, 251 Manulife Asset Management...26, 36, 179, 186 Manulife Holdings...36 Maybank...142, 198, 201 Maybank Asset Management , 63, 96, 111, 142, 182 Metropolitan Bank and Trust... 67, 213 MFC Asset Management , 165 Mirae Asset Global Investments... 67, 149 Morgan Stanley Investment Management Morningstar Novaland Oasis Crescent Capital...34 OceanBank One Asset Management...71, 73, 150, 156 Panin Asset Management Permata Bank...38 Philippine National Bank The Cerulli Report Asset Management in Southeast Asia 2017

14 Index of Companies Phillip Capital...25 Phillip Securities Indonesia PIMCO... 28, 31, 65, 121, 147, 149, 151, 165, 168 Prudential Public Mutual... 27, 52, 111 PVI Asset Management PVI Holdings RHB Asset Management...50, 65, 96, 98, 100 RHB OSK Asset Management Rizal Commercial Banking Corporation SCB Asset Management...140, 142, 168 Schroder Investment Management...21, 38, 39, 65, 98, 179, 184, 191, 198 Sequis Asset Management Sequis Life Shinhan BNP Paribas Asset Management... 31, 244 Siam Commercial Bank... 28, 150 Standard Chartered Bank State Street Global Advisors Sun Life Telekom Malaysia Tenaga Nasional Thanachart Fund Management , 168 Tisco Asset Management... 28, 147, 150 Tisco Bank... 28, 150, 152 TMB Asset Management...31, 142, 144, 147 TMB Bank... 28, 150 Tokio Marine Life Insurance Uber...45 UBS Fund Management...23 Union Bank... 28, 59 UOB Asset Management...28, 65, 96, 165 UTI Asset Management... 67, 149 VietinBank Vietjet Vietnam Bank for Social Policies Vietnam Development Bank The Cerulli Report Asset Management in Southeast Asia

15 Index of Companies Vietnam Joint Stock Commercial Bank of Industry and Trade (VietinBank) VinaCapital... 31, 244, 246 VinaWealth WeLab...45 Yuanta Financial Holdings...38 Zurich Topas Life The Cerulli Report Asset Management in Southeast Asia 2017