Money flowing into company and private pension plans in the Asia-Pacific region is expected to increase rapidly, creating new opportunities for fund managers.
The Asia-Pacific corporate and private pensions market had €1.1 trillion in assets under management in 2004, and Allianz Global Investors expects this to grow to €2.9 trillion by 2015 as pressure on pensions reforms in the region increases.
Australia's pension market, which accounts for about 36% of the region's second- and third-pillar AUM, is forecast to reach 50% of the total by 2015 as a result of a growing population, an increase in income and good stock market performance.
The most exciting growth potential in the region, however, will be in India says AGI. India's pension market assets are expected to grow from €3.8 billion to €126.1 billion by 2015 as a result of economic growth, an increasing population and the government's new pension system. Through the NPS, the government aims to create a comprehensive secondary pillar, which AGI argues will be at the core of opportunities for new managers.