Government entities were paying higher fees for emerging market fixed income managers this year, whereas their fees for active emerging markets equity managers decreased.

Demand from institutions for advice and solutions has increased in recent years, and most institutions now see benefit in their managers’ ability to provide advice/solutions beyond specific mandates.

After a paring down on the asset managers in recent years, institutions expect to increase their number of managers as they expect to diversify further and hire for more specialized strategies.

Mean rate of return expectations continued to fall across all asset classes. Although lower than in prior years, expectations for private equity and domestic equity were the highest, nearing 10% each.

Investors continue to reduce allocations to domestic fixed income, and are diversifying into off-shore asset classes and alternatives.

Fund professionals in Thailand report the highest level of investment consultant solicitations.

Demand for advice and solutions from managers – has increased in recent years, and most institutions now expect their managers to provide advice/solutions beyond specific mandates.

Institutions in Asia have modest use of consultants for portfolio advice and manager selection, relative to developed markets which are pension fund driven.

The largest 22 institutions account for 90% of Asia’s outsourced assets.

Fund professionals in South Korea noted the largest number of investment manager solicitations, followed closely by those located in Hong Kong/Macau.