The Canadian private markets investment giant plans to invest more in Asia Pacific, just as it is seeing growing appetite for its funds from the region, says Asia-Pacific chief Bill Powell.
AsianInvestor spoke to Bill Powell, Asia-Pacific CEO of real asset giant Brookfield Asset Management, about China's big infrastructure project and other opportunities.
The lure of illiquid investments is fading for some institutions in Asia, especially those – such as insurance firms – that moved later into such assets, say industry observers.
Hedge fund charges are now a key focus when it comes to allocation decisions as investors consolidate their portfolios. Yet they still appear optimistic about returns from this asset class.
Financial services firms and governments should work to create more products providing exposure to infrastructure, an AsianInvestor forum heard. Australia is held up as a good model.
With allocations to private markets steadily rising, executives at insurance firms worry that the illiquidity premium of such assets may be being eroded.
Growth Hill Asset Management has hired a head for its new representative office, which will conduct research on Asian stock markets, say sources.
High prices, strict capital controls, renminbi weakening and over-supply concerns are all cited as factors hurting offshore flows into mainland commercial real estate.
Risk-averse by nature, institutional investors need credit enhancements and minimum guarantees if they are to invest more in Asian infrastructure.
The asset manager is readying its first pan-Asia Ucits fund and considering adding other products to its hedge fund platform, including mainland, macro and multi-strategy offerings.
The German private equity firm is tapping Asian demand for European small- and mid-caps with a technology focus and ambitions to expand into Asia, its MD told AsianInvestor.
Falling interest rates should be good news for India's prospective new asset class – infrastructure investment trusts – as long as issuers price the first few deals to perform.
Yet Asia-based private equity firms view fundraising as their main concern, according to research house Preqin. Meanwhile, mid-market buyout deals are in high favour.
But getting investors to allocate more capital to the asset class may rest on a more rational approach to fees, says manager selection specialist Robert Mullane.
MBK Partners has seen its sale of a 60% stake in CNS fall through again, underscoring the difficulty for private equity firms looking to exit Taiwan in the face of regulatory challenges.
So say M&G and Savills Investment Management. The latter has won two Japan property mandates this year, is readying more Asia funds and is eyeing a Korean office. The former has a new research head.
As many asset owners pull money out of hedge funds, the likes of Australia's Future Fund and Korea's National Pension Service are prepared to go against the trend.
Many asset owners are pulling out of hedge funds, dismayed by their relatively high fees and low returns. Others, including some Asian institutions, are reviewing their allocations.
Amid 18 months of poor performance, China-focused strategies have suffered heavy outflows and will likely continue to see low demand this year, says eVestment's head of research.
After a strong showing in 2016, the gold price has been pegged back by dollar strength and a positive outlook for the US. Still, demand from China is growing, notably through ETFs.