As Asia-Pacific economies grow, creating wealthier societies, it is the local retail fund and private banking markets that will generate close to 50 per cent of net new flows and revenue opportunity for money managers over the next five years, according to a new white paper from Casey, Quirk & Associates, a management consultant to the global asset-management industry.
By contrast, the sovereign wealth funds and other government entities that controlled the bulk of professionally managed assets to date in the Asia-Pacific region will prove harder to target successfully by investment firms, as they increasingly move to manage assets internally.
Professionally managed investment assets in the Asia-Pacific region will surpass US$14 trillion by the end of 2018 – from $10 trillion (Bt325 trillion) in 2014 – and produce $66 billion in fee revenue for asset managers worldwide over the next five years, the report predicts. Australia, Japan and mainland China will represent two-thirds of the total revenue opportunity through 2018, followed by South Korea, Hong Kong, Singapore, Taiwan and India, according to Casey Quirk.
Of the $66 billion total, those eight markets will represent a $51.4-billion revenue opportunity from manager turnover, while $10.9 billion is projected to come from net new flows.
LH ratings affirmed
Fitch Ratings (Thailand) has affirmed Land and Houses’ national long-term rating at “BBB+(tha)” and its national short-term rating at “F2(tha)”.
The outlook is “stable”.
LH has maintained high EBITDA (earning before interest, taxes, depreciation and amortisation) margins relative to its industry peers, supported by the company’s ability to increase selling prices and its lower overhead costs, Fitch says. LH’s gross profit and EBITDA margins increased substantially in 2013 to 38.3 and 25.5 per cent respectively.
However, Fitch expects LH’s EBITDA margin to decrease this year, reflecting the weakening demand.
Waste2Tricity has announced an agreement with PowerHouse Energy Group (PHE) making W2T’s Thai subsidiary Waste2Tricity International (Thailand) sole vendor for the Pyromex system in Thailand, with an agreement in principle for the exclusive right to manufacture the Thai systems. This includes a target of a minimum sale of 10 systems in the first four years, with revenue opportunities approaching 50 million pounds (Bt2.75 billion).
The systems will be used for small-scale destruction of hazardous and clinical waste, relying on gate fees for its revenue stream. This economic model contrasts with W2T’s large-scale Alter plasma technology, also exclusively licensed in Thailand, where waste-derived feedstock is efficiently converted to electricity for the grid.
Waste2Tricity International (Thailand) is negotiating with PHE for the delivery of the first 25-tonne-per-day unit, which will be supplied by PHE and optioned for delivery to Thailand by the end of this year. This will act as a reference site for the technology and W2T(I)T is already discussing the site location with Thai partners, the director of the Thai unit of W2T said.