MAS names sustainability head; Malaysia’s EPF appoints COO and CFO; GIC PE head for SEA leaves; State Super hires new exec; Hesta appoints chief growth officer, chief Debby Blakey appointed to corporate governance board; ex-BlackRock exec joins IQ-EQ in Singapore; HSBC AM builds direct real estate team; ex-Vanguard head of distribution joins LGIM; Sanne names Singapore head; and more
Half of the trustees and fund sponsors recently surveyed by Watson Wyatt cited lack of governance as a reason they arenÆt considering alternative investments. Half said they believe diversifying into alternative investments could dilute their earnings too much.
The consultancy was unable to provide more details about the survey, however, such as the number of respondents or their composition.
Other reasons cited in the survey were not wanting to be a first mover among others not yet investing in alternative investments, the complexity products, and the conviction that equities offer the best long-term returns.
Among the respondents, trustees and fund sponsors in Hong Kong were the most wary of governance issues. The main concern is that alternative assets increase the monitoring burdens and thus require a higher level of governance.
ôA growing number of new and diverse investment opportunities are now available, but funds generally have reservations about shifting away from conventional asset classes,ö says Naomi Denning, head of investment consulting for Asia Pacific at Watson Wyatt.
Trustees and fund sponsors who are considering diversifying into alternative assets generally prefer hedge funds over other products, especially in Malaysia. Real estate investment trusts (Reits) were generally a second choice. Other options were infrastructure and commodities.
ôAlthough hedge funds have been growing rapidly over the past three years, trustees and fund sponsors in the region require some time to warm up to new investment opportunities,ö says Denning.
Denning says the ôwait-and-see attitudeö needs to change because many are missing out on the opportunities available in alternative investments.
Investors are seeing the risks, but also the opportunities of the logistics sector. Warehousing their fears for the moment, they can see it's a good conduit to high-growth assets.
Insto roundup: GPIF staff say J-Reits more attractive than traditional assets; Hong Kong's strict Spac criteria
EISS Super hit by another scandal; China's CSRC launches consultation on disclosure requirements for new BSE securities; Hong Kong issues consultation paper on Spacs; New World Development partners with China Taiping to focus on Greater Bay Area projects; GPIF employees say Japanese Reits have grown more attractive; Taiwan's BLF invites bid for $1.7 billion mandate; and more
The AU$85 billion ($61.6 billion) Australian super fund has some exposure to indebted property developer Evergrande. Meanwhile, China’s construction finance is part of its core strategy in real estate.
SGX’s new framework for Spacs will likely provide investors with a much-needed channel for direct deals, but the verdict is still out on whether it will bring liquidity to the bourse.