Asia challenges the dominance of UCITS

Thu Dec 1, 2011



Joy Dunbar, editor of Absolute UCITS, explores the development of an Asian fund passport in the region.


Asia is set to develop a passport that aims to threaten the dominance of cross-border UCITS funds. UCITS are sold to investors around the world (except in the US) and are widely-regarded as the global standard for global fund passporting. Currently, UCITS also play a dominant role in cross-border fund sales in to Asia.

The aim of an Asian passport is to sell local funds to Europe, according to a document from regional forum the Asia-Pacific Economic Cooperation.

It states: "In the longer term, a commonly agreed funds management regulatory framework could also facilitate funds from the Asian region being marketed in Europe by way of an Asian/ European mutual recognition agreement." 

Local asset managers are increasingly eager to develop local products tailored to local investors' requirements, according to an eight-page report published by Ernst & Young.

The report, Fund distribution strategies in Asia Pacific, states that barriers to entry...

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