EM debt gets a bad rap, says BOC Life CIO
Yield-hungry investors are looking to invest more in emerging market corporate bonds, which are seen recovering more slowly from the pandemic crash than those in developed markets.
Apac property could see price corrections next year
Regional real estate assets could fall in 2021, and investors are capturing opportunities from the down-trending market, according to a new survey by Urban Land Institute and PwC.
Asia instos drop stocks for US fixed income in Q3
The region’s ex-Japan institutional investors bought into securitisation funds and US corporate bonds while cutting stock holdings, according to the latest data from eVestment.
Getting it right in Europe: Making it work for your investors
The appetite for best-of-breed financial products around the world continues to grow, particularly among institutional investors. So it’s no surprise that fund managers continue to look to Europe from a distribution perspective. Once a fund manager has decided to distribute products to the European market, key decisions will need to be made.
Getting it right in Europe: Making it work for your investors
The appetite for best-of-breed financial products around the world continues to grow, particularly among institutional investors. So it’s no surprise that fund managers continue to look to Europe from a distribution perspective. Once a fund manager has decided to distribute products to the European market, key decisions will need to be made.
Nuveen to open in Korea and Dubai, expand in China
US-based TIAA’s investment arm is ramping up its Asia presence after posting a record regional inflow of assets this year, its global CEO and Asia head tell AsianInvestor.
How instos are screening private debt for ESG risks
Checking illiquid assets to find environmental, social and governance issues is harder than it is for listed securities, particularly when it come to credit portfolios, say investors.
Insto roundup: CIC does $674m Aussie property deal; Temasek sets up agri-business platform
QBE Insurance joins net-zero alliance; CIC buys remaining 50% of Sydney's Grosvenor Place; Korea Post seeks custody and admin providers; GIC inks European logistics JV; Temasek sets up food investment platform; CPPIB buys $100m stake in Hutchison China MediTech, does India bilateral financing deal; and more.
Poba eyes US infra assets after Biden’s inauguration
South Korea's Public Officials Benefit Association plans to gain exposure to US infrastructure assets through private equity funds and co-investments, says its chief investment officer.
Future Fund CEO “concerned” about inflated asset prices
Raphael Arndt, CEO of the Future Fund, said high asset prices are forcing his organisation to build liquidity and consider lower returns. He also worries about rising income inequality.
Weekly roundup of people news, Nov 20
BlackRock appoints first China private credit head; Nikko AM names head of consultant relations; Standard Chartered's global private banking head leaves in restructuring; Pictet WM hires fund specialist from UBS; RBC WM appoints new head of investments for Asia and international; Indosuez hires new COO; Natixis names three Taiwan executives; and more.
Partner Insights
The Case for a Dedicated China Equities Allocation
A China equities allocation makes sense when considering global growth, consumerism, foreign investment and the potential for higher returns. As an institutional investor or investment professional, being exposed to China has traditionally been an ancillary outcome of a decision to own emerging market (EM) equities. However, we believe there are potential return and risk benefits from considering China as an independent allocation.
Why investors in China PE might be missing out on most of the market
China’s domestic private equity (PE) market has grown rapidly in the past ten years offering a range of opportunities with tremendous growth potential. Yet without the right fund structure, international investors simply can’t access many of the most exciting deals. Jun Qian, Head of Investments China and General Manager for Schroder Adveq explains.
Three Trends in China That Could Bode Well for Asia Equity Investors
Beyond the pandemic and trade tensions, underlying developments in China may have transformative implications on companies in Asia and frame how investors look at Asian equities going forward, including up and coming small caps.
Asian debt offers a positive vision for 2021
With a cautious sigh of relief, we are now moving into the final stages of 2020. Despite the challenges faced this year, the outlook for bond investors in Asia remains positive.
Adapting to a new reality - six trends accelerating securities lending in Asia Pacific
In the first half of 2020, far-reaching macro-economic and market repercussions in the wake of COVID-19 have had an inevitable dampening effect on global securities lending. A combination of unprecedented market turbulence and short-selling bans resulted in muted borrower appetite and, ultimately, led to slowing revenues.
Holding Gold: From crisis response to long-term returns
Long considered a safe-haven in troubling times, gold can provide liquidity and protection in risk-off scenarios - especially during systemic events affecting multiple regions and industries. It also provides a cost-effective hedging function compared to other options. Yet investors often still have reservations when it comes to adding or increasing gold exposure in their portfolios.
Creating resilient Asian fixed income portfolios via an ESG lens
Making ESG analysis more focused and core to all investment processes is essential to overcome shortfalls in data and transparency amid growing appetite for bonds that meet sustainability goals, according to a virtual roundtable hosted by Eastspring Investments and AsianInvestor.
Indexed investment – New perspectives on China’s bond market
Amid global growth in fixed income ETFs, RMB bond index funds have shown rapid growth in the past three years. By the end of June 2020, there were 133 domestic bond index funds with a total value of ¥455.5 bn in China - 23 times greater than in 2018 - and 27 overseas-listed RMB bond ETFs with a total value of ¥53.6 bn, 99% of which comprised Chinese government bonds and policy bank bond ETFs.
Private assets make up 13.7% of portfolios: Schroders survey
Institutional investors still believe private asset investing comes with extra challenges, but that the diversification and return benefits make it worth their while. A recent Schroders survey identifies notable increases in interest for real estate debt, infrastructure equity and insurance-linked securities.
New methods of portfolio balancing – a multi-strategy approach
David Elms, Head of Diversified Alternatives at Janus Henderson Investors, says that 2020 presented a volatility opportunity for those who were ready for it. In the following Q&A, he shares some strategies for risk-adjusted returns over time - from truly diversified sources – and talks about the biggest risks he sees in the markets today.
Asian tourism: The long road ahead
Compared to global peers, Asia’s travel and tourism sector appears better positioned to weather the lingering challenges in a post-Covid world. Amid international travel restrictions, domestic tourism shows signs of recovery - while talk of regional travel bubbles brings hope to the industry. This is the final instalment in Eastspring’s Asian Expert Series, exploring the future of Asia post Covid-19.
In-depth
Investors ditching alternative risk premia on poor returns
Having drawn rising institutional attention and flows in recent years, ARP strategies are seen to be suffering their worst year on record, and many asset owners are making for the exit.
AIA looks to address rising hedging challenges
The insurer's head of investment solutions explains why upcoming changes to rules for using derivatives led to it implement a new collateral reporting solution.
How Korea’s NPS could invest $240 billion offshore
Experts believe the Korean pension fund could be ramping up internal staff to bring equities and fixed income inhouse, while focusing its external investing on alternatives.
Investors using data analysis to beat rivals to deals
Effective use of data can help asset owners improve returns, reduce costs and gain an edge when bidding for assets – even helping to undercut rivals, as one sovereign fund has shown.
Magazine
Webinar
Oct 29, 2020
Emerging Markets Corporate Debt - Navigating the Unknown
Over the past two decades, the value of outstanding US dollar-denominated Emerging Markets (EM) corporate debt has increased by a factor of 20, to over $1.5 trillion – a larger asset pool even than US dollar EM sovereign debt, according to Bank of America Merrill Lynch. This growth has created unique opportunities for investors, particularly those rethinking their asset allocation and risk-reward profiles while seeking diversification and less correlated return streams.
In our upcoming webinar in partnership with Credit Suisse, our expert panel will address questions such as:
- During Covid-19, how well did EM corporate bonds perform and why?
- What are the key risk-reward factors that distinguish EM corporate from EM sovereign debt – and how are they influenced by historical default rates?
- How can EM corporate bond valuations create attractive investment opportunities in countries where sovereign ratings are relatively low?
- When does EM investment grade corporate debt offer an attractive alternative to developed market credit, vis-a-vis the underlying country exposures?
- Which unique considerations are relevant to EM bonds, particularly when it comes to transparency, governance and auditing?
Join us for an in-depth discussion on this exciting area within fixed income.
Oct 30, 2020
Making the most of alternative data
There is ever-growing demand in today’s fast-paced world of finance for unique data streams to help guide investment decisions. From geotagging to sentiment analysis through natural language processing, a myriad of options are now available. Data management professionals, quants, research teams, and data scientists are all looking for new sources of alpha to help differentiate their offerings – but even the best raw data cannot be useful in isolation, and requires processing and context. Our panel of experts looks at which alternative sources are truly useful, and how they can be benchmarked against and integrated with more traditional data sources.
During this in-depth webinar, we will discuss:
- How to deploy and execute an effective overall data management strategy
- How to get the most out alternative data and data science programs
- Analysis of key trends in data usage and alternative data demand in 2020
- How the right datasets can guide technology planning and investment
- Who can benefit the most from alternative datasets, and how
Oct 23, 2020
Going for gold: Allocation strategies amid uncertainty
The price of gold has been surging against the backdrop of fatigued economic growth. Its price has reached record highs thanks to near zero interest rates and a weakening US dollar.
Aside from its reputation as a safe haven in times of economic uncertainty and political risk, gold is a useful hedging tool and provides long term capital gain. Yet asset owners have concerns over liquidity and valuation as the asset does not provide any yield.
The ‘Going for Gold’ webinar, in partnership with the World Gold Council, will host two leading asset owners and assess:
- Investor sentiments towards US dollar
- Interest rate and economic growth forecast
- Key price drivers, liquidity and the supply and demand of gold
- The ideal form asset owners should invest in gold
- How to calculate gold’s asset valuation in different scenarios
- Gold’s role as a strategic asset
- Gold and ESG considerations
Oct 16, 2020
Drivers of change – macro forces and the new normal for insurance
In times of economic turmoil, the natural reaction is often to cut your losses. Plus, balancing assets and liabilities can be particularly difficult during a period of historically low interest rates, looming government debt and the risk of corporate defaults. However, amid these challenging conditions investors should combine a long-term investment view with bespoke investment solutions.
In our upcoming webinar, we discuss with insurance industry experts how best to map out a path to successful investment against a backdrop of tenuous economic recovery and geopolitical uncertainty.
- How macro-economic forces are shaping risks for balance sheets
- Regulatory changes in a broader context, such as IFRS 17 and IFRS 9
- Current challenges in building products with investment guarantees
- Embedding ESG considerations into the portfolio construction process
- All weather asset allocation to navigate through market volatility
Events
Nov 17, 2020
Global Alternatives Week: Korea 2021
AsianInvestor’s “Global Alternatives Week: Korea 2021” will be taking place as a 5-day virtual event from January 25th to 29th.
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Nov 17, 2020
Insurance Investment Week
AsianInvestor’s “Insurance Investment Week” will be taking place as a 5-day virtual event from March 15th to 19th.
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Weekly roundup of people news, Nov 20
BlackRock appoints first China private credit head; Nikko AM names head of consultant relations; Standard Chartered's global private banking head leaves in restructuring; Pictet WM hires fund specialist from UBS; RBC WM appoints new head of investments for Asia and international; Indosuez hires new COO; Natixis names three Taiwan executives; and more.
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Prudential appoints new Singapore CIO
The insurer made the appointment after the previous incumbent went on sabbatical, said a spokeswoman. It is now seeking a new head of investment strategy.
Weekly roundup of people news, Nov 13
HSBC Global AM loses Apac head of consultant relations; Freeman Tsang resurfaces at Pictet AM; Ogier starts ESG practice in HK; Odey raids Newton to set up EM equity team; JLL names head of China capital markets; Equities First appoints heads of South Korea and Thailand.
Axa, Pru investigating managers for 2021 yield chase
The two insurers say they are heavily scrutinising their external partners as they eye investing opportunities in high yield, alternative assets and ESG, in a webinar hosted by AsianInvestor.
Why the Adia-OTPP tie-up with Equis is a “no-brainer”
Abu Dhabi Investment Authority and Ontario Teachers’ Pension Plan have struck a $1.25 billion partnership with Asian infrastructure developer Equis that is seen as bold and smart.
Market Views: Will the US dollar continue to weaken?
The US dollar is currently strong, but economic weakness, minimal rates and a large and rising debt burden could cause it to weaken. How will that affect how asset owners invest?
Nuveen to open in Korea and Dubai, expand in China
US-based TIAA’s investment arm is ramping up its Asia presence after posting a record regional inflow of assets this year, its global CEO and Asia head tell AsianInvestor.
GIC eyes lagging Asean assets as supply chains shift
The Singapore sovereign wealth fund's CIO, Jeffrey Jaensubhakij, told a forum last week where he sees post-pandemic investment opportunities for 2021.
BLF aims to raise offshore assets to 60% by 2025
The Taiwanese pension manager's investment return rate has dwindled this year, so it is calling for AI-driven asset managers to help it expand its overseas assets exposure.
Creating resilient Asian fixed income portfolios via an ESG lens
Making ESG analysis more focused and core to all investment processes is essential to overcome shortfalls in data and transparency amid growing appetite for bonds that meet sustainability goals, according to a virtual roundtable hosted by Eastspring Investments and AsianInvestor.
