Partner Content

Thanks to the current rise in yields, the key return driver of the bond market is set to change but its bull run will very likely continue.

As ESG is becoming the new pillar of asset allocation, major institutional investors in the region share insights on how to incorporate ESG in investments in a webinar organised by Natixis Investment Managers in partnership with AsianInvestor.

The healthcare industry in China is propelled by significant reforms and presents exciting investment opportunities. However, the returns it delivers are volatile. How should investors navigate this market?

The smart cities megatrend is just beginning to transform our lives in every way. How can investors capture this investment opportunity in today’s more volatile market environment?

EM corporate debt offers positive real yields while Japan stocks are increasingly attractive as a proxy for global growth. Moreover, Asia is set to benefit from the global upturn in the next phase of the cycle.

Local knowledge in the region’s diverse real estate markets will enable investors to pivot between defensive and offensive strategies to tap opportunities despite uncertainty, says Andrew Moore, head of real estate, Asia Pacific, Schroders Capital.

To get the clarity they want to make informed portfolio decisions, asset owners and managers must now blend and adapt multiple sources of traditional and non-traditional data to create actionable insights, said speakers at a webinar hosted by AsianInvestor and IHS Markit.

What can asset managers and other stakeholders in the country do to further drive sustainable investing, particularly among smaller asset owners, in the country?

Asian fixed income assets – including Hong Kong dollar (HKD) bonds – are luring growing numbers of global investors who are striving for reliable and consistent returns amid macro uncertainty compounded by rising inflation and rates, according to HSBC Asset Management.

The “lower for longer” monetary policy and stimulus packages, coupled with the rolling out of vaccine programmes favorably support real estate investing in the region, with offices and data centres presenting forward-looking opportunities.

ESG is no passing fad, as more investors are convinced that alpha can be found in ESG and regulators continue to introduce rules to lift ESG standards.

Investors across the Asia Pacific region are becoming more selective in their asset choices, with long-term capital growth, diversification and sustainability playing key roles in where, why and how they allocate in 2021, according to an exclusive survey by AsianInvestor and S&P Dow Jones Indices (S&P DJI).

The robust growth of China’s economy underpins the appeal of its local equity market, which is set to attract more foreign inflows this year.

Across Asia Pacific, investment appetite among insurers, pension funds and other institutions bodes well for unlisted infrastructure – especially sustainable assets in Asia, within mandates managed by professionals with experience, finds the latest survey by AsianInvestor and QIC.

Despite its strong growth in the past year, the long-term success of sustainable bonds in Asia relies on greater disclosure and a clear, data-driven investment process to assess and measure the impact of proceeds, according to Angus Hui, head of Asian and emerging market credit, Asian fixed income at Schroders. In this Beyond Profit series, Schroders explores sustainability in various investment aspects.

BNY Mellon’s new report looks at key drivers shaping the investment industry that buy-side leaders should not miss.

Although sustainable funds have seen increasing inflows amid growing environmental awareness and the spotlight on social issues due to Covid-19, the industry still lacks a standard definition of sustainable investing. Nicholette MacDonald-Brown, head of European blend equities at Schroders, explains the firm’s three-pronged approach of people, process and purpose.

Studies show that when comparing the long-term returns of listed and unlisted real estate vehicles based on the same underlying assets, the listed sector is an effective proxy for direct property investment. However, listed real estate (LRE) has the benefit of higher transparency, diversification, unmatched liquidity and a lower hurdle to global access compared to direct property.

With Hong Kong dollar (HKD) bonds already regarded as an asset-liability matching instrument for locally-based investors, the ongoing lower-for-longer rates environment has given them even greater potential to play an increasingly relevant role in institutional portfolios.

Regulatory reform in China in 2020 further opened the country’s markets to overseas institutional investors. The removal of Qualified Foreign Institutional Investor (QFII) and RMB Qualified Foreign Institutional Investor (RQFII) investment quotas, and the lifting of overseas ownership limits in the mutual fund sector have attracted foreign asset managers to set up wholly foreign-owned enterprises (WFOEs) and apply for onshore mutual fund licenses.