There have been plenty of uncomfortable places to be in the markets this week. But Asian fund managers have probably had it worst.

Major Asian stock markets are down for the year, shrinking assets already invested and disincentivising further inflows. The Chinese stock market is down 40 per cent since its peak in June. No surprise, then, that Asian investment funds have suffered big outflows in recent weeks.

But even before the recent market turmoil, the asset management industry had not benefited significantly from the sort of Asian growth that other sectors have enjoyed. Of $11tn-$12tn in institutional assets in Asia, only $2tn is allocated to third parties to manage — although this number is growing — according to Greenwich Associates, a consultancy. The proportion of externally managed assets has expanded so far this year.