Why Asia Demands an Active Approach

This report argues that Asia's market heterogeneity, information asymmetries, and increasing index concentration make active management essential for capturing true regional returns and managing risk.

Key Takeaways

• 1.Asia is a heterogeneous mosaic of markets where active management is necessary to access opportunities beyond standard indices.
• 2.Structural information gaps and limited analyst coverage in Asian markets allow active managers to find mispriced assets through fundamental research.
• 3.Rising concentration risk in benchmarks like the MSCI AC Asia ex Japan index hides risk, with the top 10 stocks accounting for 50% of the index's risk.

Table of Contents

• Executive Summary
• Asia remains under-researched
• Indices do not reflect Asia's true opportunity set
• Concentration risk is growing
• Active is not optional in Asia
• Disclaimer

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