Structure of the Asset Management Industry: Organizational Factors in Portfolio Investment Decisions

Portfolio investor behaviour in emerging markets is shaped by a wide range of factors, that are as yet not well understood, as underlined dramatically by the Asian Crisis. One important set of factors that shape portfolio investor behaviour -- and that has received limited attention to date -- consists of organizational factors. This paper examines the structure and workings of the global asset management industry. It is hoped that a better understanding will lead to more effective policies by both governments and international financial institutions to support the process of economic recovery and restructuring in Asia.