In the wake of Covid-19, investors across Asia Pacific are adapting how they approach portfolio construction, set return targets, embrace liquidity and integrate environmental social and governance (ESG) factors.
This is reflected in the views of more than 145 senior executives at many leading asset owners and wealth managers in the region – via a survey conducted by AsianInvestor in collaboration with BNY Mellon Investment Management in August 2020.
The following are among the many notable findings into evolving investment behaviour:
- Lower-for-longer rates and a prolonged global recession are considered as the biggest portfolio risks over the next six months
- How investors review long-term and/or tactical allocation is the key change in how they will make portfolio decisions in a post-pandemic world
- Amid the increasing focus on sustainability, the clean energy theme is in pole position for 2021, ahead of technology and biotech
- Better quality and more standardised ESG data would drive a sharper focus on ESG within investment processes
- Within technology, artificial intelligence appeals most among investors as a key theme for next year
- More efficient asset allocation and improved risk management are the primary motivators for investors to apply new technologies in the investment process