Asset Owners

Investors and fund managers must play their part in ensuring that ESG funds deliver on their promise – but only government action will ensure this happens, say conference panellists.

Wanted: ESG experts that can see through a customer's eyes. AsianInvestor sounded out asset owners to see what they're looking for when it comes to management hires.

Apac asset owners are more keen than their global peers on private equity and infrastructure sustainable investments. However, they trail behind in public equity.

Hong Kong's Exchange Fund posted a third-quarter investment loss after five quarters of gains; the Monetary Authority of Singapore said it would raise the slope of its currency policy band up from its current 0%; the Korea Investment Corporation surpasses $20 billion in AUM for the first time; RB Family Office to buy 12 four-storey conservation shophouses in Singapore; and more.

Nearly 50% of institutional investors and family offices in Asia Pacific intend to increase the number of external managers for their thematic investments in equities over the next 12 months.

DWS is not the only firm misrepresenting on ESG, Desiree Fixler said; Sunsuper turns opportunist on China high-yield property; Funding gap persists in Asia Pacific even as funds pour in; Barings to open Singapore office in November

Norges Bank Investment Management added four prominent traditional Chinese medicine (TCM) firms to its exclusion list but has also been increasing its emerging market exposure.

GIC buys 40% stake in Oxford Science Park for $218 million; Hong Kong to scrap MPF's offsetting arrangement; Malaysia's EPF and Kwap increase stakes in Bursa Malaysia; Japan's endowment fund reveals only one fund manager has been hired; Thailand and China agree to look into cross-border initiatives between capital markets; and more

Mark Delaney said investors will find it hard to disengage from China, despite concerns about the second-biggest economy in the world.

The high demand for finance to build data centres is making the sector increasingly appealing as institutional investors deepen their commitment with develop-and-own models.

Experts believe the Japanese pension fund’s decision will have limited impact on global investors’ appetite for China sovereign papers, and any impact would be felt more in Japan’s public sector.

The recent power outages have cast another shadow on the already cloudy Chinese market amid slowing growth and policy uncertainties.

Sovereign wealth funds such as Mubadala, the Abu Dhabi Investment Authority and Singapore's GIC have been placing more emphasis on private lending, according to two recent reports.

The Evergrande crisis and government clampdowns has cast a pall over China investment. While one fund is putting investment on hold, another says it's staying the course.

Only 14% of the global asset owners surveyed in a new Invesco report have reduced their China exposure.

Chinese government intervention and regulations are causing major headaches for domestic and foreign investors alike – especially those with large exposure to Chinese property.

Responsible investing includes allocating to poor-ESG performing EM countries and helping them shift to greener solutions, instead of divesting completely, experts said.

Asian investors are favouring engagement over divestment in their ESG journeys as fossil fuels show there's still plenty of power left in the sector.

GPIF will not invest in Chinese sovereign bonds and exclude them from benchmarks; Temasek and HSBC partner up for debt financing platform for sustainable infrastructure projects; KIC advised to consider European rental housing projects with local firms; PNB funds to give out $150 million payout; APG and PPF buy stake in New Zealand timber producer; and more.

The new regulation is likely to spur local listings and, consequently, institutional investor interest in equities, experts say.