Despite fiscal strains in developed markets, Asian investors continue to favour sovereign debt. Managers say allocations remain stable, though yield dynamics and sector fundamentals show where flows could shift if preferences change.
Alternatives
US Treasuries now carry a visible fiscal risk premium, skewing comparisons with corporates. In Asia, healthier fiscal anchors keep spreads more grounded, according to investors.
China leads the pack among APAC markets with some forecasts calling for 20% plus annual growth in its data-centre market over the next few years. But limited land availability, emissions regulations and new technologies could hamper the pace of expansion.
Asia‑Pacific private capital investors are scaling back direct China exposure and turning to India and Japan as liquidity pressures drive focus towards managers with dependable, cycle‑resistant returns.
The $2 billion Citizens of Israel Fund has brought emerging Asia into its equity portfolio and is building the scale and strategy that could see its future private market allocations reach the region.
A new executive order could reshape US retirement investing by allowing 401(k) plans to access private markets and alternative assets, creating opportunities and risks for savers — and potential ripple effects for Asia’s private capital industry.
Once seen as an alternative or currency hedge, gold is now gaining traction among Asian institutional investors as a core portfolio asset.
Singapore based single family office Vedas Group is moving away from blind pool VC/PE fund commitments in favour of direct, sector-specific investments through special purpose vehicles.
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Asset allocators are finding ways to sustain deployment pace amid strong pockets of activity in Asia, rising selectivity and an intensified focus on liquidity, exits and operational resilience.
Dutch pension investment manager PGGM has executed a synthetic risk transfer deal in partnership with Standard Chartered, achieving the first capital relief recognition in Singapore through a dual-credit default swap structure.
Australia's commercial property market sees foreign investors accounting for 51% of Q2 transactions as H1 2025 volumes rise 19% year-on-year, with alternatives surging while traditional sectors face headwinds.
Asset owners are accelerating their move into gold, driven by market volatility, structural shifts like de-dollarisation and a growing appetite for diversification.
