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Cheap labour argument wears thin

Cheap labour argument wears thin

Access to new local Asian market investment opportunities will be marred by high costs and risks if the capital market infrastructures in these areas do not move to automate fund transaction processing.

The argument that cheap Asian labour costs negate the need for fund distributors to automate is wearing thin.

There is always a tipping point and, in fact, labour costs are starting to rise in the region.


Given the small ticket size of retail orders in some Asian markets,  if manual processing costs eat away most or all the asset management margins, is it right that a foreign fund manager does business in this market?

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