KUALA LUMPUR, June 29 (Bernama) -- Asia will remain as the first destination for Western asset managers to look for clients, according to a research finding sponsored by Principal Global Investors (PGI), a diversified management company.

Its chief executive officer (CEO), Barbara McKenzie, said Asia would hog the limelight, but it won't be the next gold rush, yet.

"The reasons identified are legal barriers, the roller-coaster nature of the region's stock markets, momentum-driven behaviors of retail clients and the obligatory domestic focus of pension plans.

"And indigenous managers and banks will remain the dominant players," she told a press conference after a panel discussion on 'Create Report 2010: Exploiting Uncertainty in Investment Markets' here Tuesday.

McKenzie said two factors would hold the key to promote organic growth in assets over the next three years.

"The key one will be the recovery in the four main engines of the global economy -- US, China, Europe and Japan.

"The other driver will be the rising prosperity in the emerging markets and growth in private pensions in the key fund markets," she said.

McKenzie said the resulting asset growth would accrue alongside a significant rebalancing in the global asset base, as baby boomers approach retirement, defined benefit plans and changed their investment approaches and regulators frame new rules.

Meanwhile, CIMB-Principal Islamic Asset Management Sdn Bhd's CEO, Datuk Noripah Kamso, said the company would play an active role as a global platform for Malaysia to capitalise on global expertise.

"The joint-venture company between PGI and CIMB group will attract international monies into Malaysia, in effort to make this country as the Islamic financial centre in the global hub.

"This boutique outfit is the Islamic solutions-driven boutique asset manager of PGI, and it is closely to the latter's investment philosophy, particularly in the management of global assets," she said.

Noripah said the partnership would also allow CIMB-Principal Islamic to leverage on the strong Islamic finance background of CIMB Group (via CIMB Islamic) while PGI offered its expertise in global asset management.

A total of 237 asset managers, pension plans consultants and fund distributors from 29 countries (with total assets of US$29.1 trillion), participated in the survey.

The research aims to provide an early indication of how asset managers worldwide see their prospects and what they need to do to ensure that a resilient industry emerges from the ashes of the 2008 meltdown.

-- BERNAMA