Local houses continue to dominate Asian currency bonds

Domestic bond managers resilient amid emerging market sell-off

Despite the recent emerging market sell-off, local investment houses (based in respective local markets) remain resilient participants in the Asian local currency bond market. In the latest Asset Benchmark Research's (ABR) rankings for Asian local currency bonds, domestic investment houses continue to make their mark in Asia, with new Chinese entrants alongside more familiar names.

As a reflection of its US$11.8 trillion bond market, we present China's Top Investment House rankings for the first time since 1999. China Southern Fund Management, established in 1998, was one of the first 10 asset management companies to be licensed by the China Securities Regulatory Commission (CSRC). China Merchants Bank was the first share-holding commercial bank wholly owned by corporate legal entities in China. China Zheshang Bank is also another share-holding commercial bank whose former executive director, Liu Xiaochun, won the Best Chief Executive Officer Award in the Asset Corporate Awards 2017.

In Hong Kong, China Life Franklin Asset Management advances to the prime position of the list and ranks first among all Chinese asset managers set up in Hong Kong in terms of assets under management. BEA Union returns to the list in Hong Kong.

The order of the first four investment houses in India is unchanged. ICICI Prudential Asset Management and ICICI Prudential Life Insurance have maintained their lead in India since the start of the rankings in 2014. Reliance Nippon Life Insurance (with its asset management arm) remains in second place. HDFC Standard Life Insurance remains in third place. SBI Funds Management also returns to the list.

In ASEAN markets, the top asset managers, insurance companies and banks retained their positions in 2018. Manulife Aset Manajemen Indonesia, Bank of the Philippine Islands, Eastspring Investments, Taipei Fubon Bank and Fubon Life Insurance, and Kasikorn Asset Management lead in Indonesia, the Philippines, Singapore, Taiwan and Thailand, respectively. The government-linked fund Employees Provident Fund in Malaysia returned in 2018 and takes the lead in the Malaysian ringgit bond market.

The Asian Local Currency Bond Benchmark Review covers 11 markets including China (onshore and offshore), Hong Kong, India, Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand. It has been conducted annually since 2000. It provides a range of data on the product needs of investors and the market penetration of the banks that are active in local currency bonds. It also gives a detailed analysis of investors' buying behaviour when selecting counterparties, providing access into the minds of investors.

Soon to be published, the nominated Astute Investors will also be weighted and ranked individually to comprise Asset Benchmark Research's annual most Astute Investors in Asian local currency bonds ranking.

To view the rankings of the top five investment houses in Asian local currency bonds by country, please click here.

To find out more about Asset Benchmark Research and our Asian Local Currency Bond Benchmark Review, please click here.


6 Jun 2018



Share this article