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AFSF

Background of the AFSF

  • Global Investment Fund Market Trends

    Cross-border investment fund transactions have been steadily increasing recent years and are likely to continuously go up in the future. Especially emerging markets including Asian markets are expected to lead this growth. However, despite the high growth potential of the Asian fund market, it still faces obstacles to growth. There is imbalanced development of fund markets among economies in the region and heavy reliance on the UCITS funds* in the European fund market.

    * (UCITS funds) Established according to UCITS(Undertaking for Collective Investments in Transferrable Securities, 1985) Directive. They accounts for 71% of the European fund market(7 Trillion EUR, End of Mar 2014) and are also actively sold in Asia Pacific, Americas, Middle East and Africa.

  • Fund Market Integration Initiatives

    Seeking an alternative to the current situation, active efforts and discussions are ongoing to create a new integrated fund market in Asia. Three regional funds passports* are in development : the ASEAN Collective Investment Scheme(CIS) Framework, Asia Region Funds Passport(ARFP), and Mutual Recognition of Funds(MRF) between the Mainland China and Hong Kong.

    - This diagram shows fund market integration initiatives in Asia and Europe.

    • Europe : UCITS
    • North Asia : APEC ARFP
    • China-HK : HKCMR
    • South Asia : ASEAN CIS
    ASEAN CIS APEC ARFP MRF
    Official
    announcement
    October 2013 September 2013 January 2013
    Markets Malaysia,
    Singapore,
    Thailand
    Australia, Korea,
    New Zwaland,
    Japan, Thailand,
    The Philippines
    Mainland China,
    Hong Kong
    Execution date Aug. 2014 Apr. 2016
    (MOC signing)
    Jul. 2015

    (Fund Passport)
    Aimed at establishing common regulations on the registration, management, sales etc. of funds among member countries and eventually integrating the fund markets by allowing cross-border distribution of funds.