Life companies such as FWD and Prudential are ramping up efforts in Thailand to sell more unit-linked products and thereby reduce their investment risk. They face familiar challenges.
Bangkok-based life insurance firms are lobbying to be allowed to invest in new asset classes, such as foreign infrastructure and private debt, to help boost returns.
The country’s insurers are awaiting final new risk-based capital rules before making big portfolio changes. They are concerned about potentially high charges for equities.
The Bangkok-based insurer could almost double its foreign exposure in two years, using external fund managers to do so, says its CIO. Its peers are making similar moves.
The fast-growing insurer is building its investment team and has taken portfolio management in-house for now. But it may use external firms to enter new asset types.
The Bangkok-based insurer is also hoping the regulator will allow new types of alternative assets and a higher offshore allocation limit, says its head of risk and strategy.
A set of fund managers, officials and asset owners told an investor audience that the country needs to deepen its bond market, and add riskier instruments.
Delegates from some of Thailand's biggest institutional investors were among the audience for a major forum in Bangkok.
AsianInvestor gathers key names in the regional investment community in Bangkok to discuss opportunities and trends in the market.
Market experts told the audience of the Thailand Global Investment Forum that financial technology could improve investing advice and wean investors away from fixed income funds.
Our new Asset Owner Insights report for Southeast Asia offers data and analysis on the leading institutional investors across the region.
The Bank for International Settlements' chief economist has characterised the situation in certain countries as a "financial boom gone wrong". AsianInvestor gauged experts' response.
The $21 billion fund thinks local-currency emerging market bonds can overcome US rate hike pressures and wants its overseas allocation cap to be lifted to 40% from 30%.
While institutional and regulatory constraints are limiting the options of asset owners in many emerging nations, others are broadening their range of investing tools.
The largest pension fund in Thailand is expanding its investment division with a view to implementing a long-planned ten-fold jump in its overseas allocation.
The likely introduction this year of new product types and a mandatory pension scheme will boost funds growth in Thailand, says the MD of the local investment company association.
The $21 billion Government Pension Fund continues to expand its private markets portfolio while looking to manage more global equity exposure in-house.
While local managers played down the risks of uncertainty, foreign observers suggest a period of underperformance would not be surprising.
Life insurance firms in the Asean region are considering how to prepare for stricter capital rules over the coming two years, which are set to make certain investments more costly.
In the first of a two-part article, AsianInvestor outlines how Southeast Asian insurers are finding it ever harder to cover their liabilities, amid low bond yields and looming tighter capital rules.