BNP chief upbeat over integrated fund passporting in Asia

02 May 2014   Category: News, Global, Southeast Asia, Asia Pacific   By Daniel Shane

The chief executive officer of BNP Paribas Investment Partners in Asia-Pacific is upbeat over the eventual integration of three separate fund passporting initiatives in Southeast Asia into one standalone platform.

There are presently three separate fund passporting initiatives in the region: one covering Australia, South Korea and Singapore; another for ASEAN currently only covering Singapore, Malaysia and Thailand; and finally Hong Kong and mainland China’s system of mutual recognition.

Speaking to Asia Asset Management, Vincent Camerlynck compared the development of fund portability in Asia to that of UCITS in the European Union in the late 1980s.

“I think we have to be realistic that it will take some time for Asian fund passporting to take form. We currently have three initiatives, each with their own merits. Once these have established themselves, they can hopefully grow into a more integrated and progressively-built pan-Asian, rather than sub-regional, platform. It will be a long process,” Mr. Camerlynck said. 

He also dismissed the suggestion that the development of all three regional initiatives would diminish the UCITS brand in Asia Pacific.

“Many wonder if it will mean the end of UCITS, but I believe there will be a lot of room for both to co-exist for some time. I believe it will, perhaps, be ten to 20 years before more fundamental change arises. But you have to start somewhere and I think it’s very, very good that those initiatives exist,” Mr. Camerlynck added.

The full interview with Mr. Camerlynck and Chief Investment Officer Alex Ng will be published in the May issue of AAM.