Ambitions by Asian asset managers to build international brands and succeed outside home markets have come under sceptical analysis in a new report.

Asian asset management houses are trying to push their business outside home turf but these firms haven’t chalked up a decisive advance, according to a report that singles out the case of Mirae Asset Global Investments, the South Korea-based firm.

Cerulli Associates, the US-based analytics firm, says Mirae Asset, South Korea’s largest investment manager, “has been trying to develop a pan-Asian footprint longer than most, starting as far back as 2003 with the opening of its Hong Kong office. The company has also made forays into India, China, and Taiwan. However, its efforts to gather assets across the region have hitherto yielded unspectacular results.”

The commentary, under the title, Pan-Asian Pipe Dream, is taken from The Cerulli Edge - Asian Monthly Product Trends Edition, May 2015 Issue.

“Mirae Asset did its homework and the necessary preparation [but] the firm has been hit by setbacks that make its pan-Asian status seem quite hollow at present. It represents a cautionary tale for Asian asset managers seeking to develop a pan-Asian presence,” the report said.

The firm went to state that Fidelity, JP Morgan, and Franklin Templeton – all US-based - have been able to “adapt well” to fragmented Asian markets and “successfully establish footholds across the region”.

“The term `pan-Asian’ applies more appropriately to them than home-grown Asian players who have ventured abroad in the region,” it said.

This publication is in contact with Mirae Asset about the comments and may update in due course. In February this year the firm added to its sales efforts for the Nordic and Benelux countries (Belgium, Netherlands and Luxembourg). It has a presence in 12 countries.

The Cerulli commentary comes at a time when there is considerable commentary on how the centre of economic gravity is shifting to Asia. The region does boast some significant investment management players, such as Japan-headquartered Nikko Asset Management, for example, as well as Australia-based AMP Capital and Macquarie’s asset management unit.

Cerulli argued it will be difficult for Asian asset managers to turn the tide because global players that have established their footprints across Asia are “well ahead of the game and will be hard to dislodge”.

“Their positions will be further reinforced if investors in secular markets such as Korea and India start thinking about investing in overseas strategies,” the report added.