The firm is taking a wait-and-see approach, but at the same time is talking to advisers to understand the shape the scheme is likely to take and the time scale involved.
“I would expect that if things go according to plan, we’ll have a range of Hong Kong-domiciled funds in the future.”
The firm sees growth opportunity in the Taiwan business and is eyeing new client segments in the region. According to Tonkinson, 80% of OMGI’s funds assessed over the trailing three years fall in the first or second quartile.
“There is no reason to restrict our [distribution] to Hong Kong, Singapore and Taiwan.”
Getting noticed in the crowd
The decision to go local involved a series of challenges because of the highly competitive regional landscape, Tonkinson said. Most of the big fund houses have already established footholds.
“What surprised us most is that there is demand for new asset management firms in the region. Clients have been saying that it is refreshing to have a new name in Asia.”
The Old Mutual brand more has more resonance in the UK than it has historically in Asia, he said, and therefore the branding budget has been increased throughout the region.
“Asia is a very competitive market with a lot of global brands. The key for us is how we establish our brand and brand values associated with it.”
The firm aims to convey that OMGI is an innovative, modern fund house with a range of investment funds, he said.
“Getting that message across is challenging because it’s a very crowded space. It takes time and investment. We’ve made great strides – our brand is a lot more visible than it has been – but we have a long way to go.”
