The latest survey of the largest 300 institutional investors in Asia Pacific revealed greater certainty in their investing plans. But there was a marked split in the direction of these plans.
Insurance firms and pension funds accounted for about 20% of AUM in the top 50, but governance issues and uncertain markets could hinder growth in 2018.
After a solid 2017, pension funds across Asia are carefully monitoring global economic and political developments even as they seek to lift allocations to global equities and alternatives.
Taiwanese asset owners, insurers especially, led the way higher last year, along with AustralianSuper, but repeating the trick in 2018 will be hard for all concerned.
The move forms part of a broader shift into "alpha-generating sectors" even as the $18 billion pension fund grows more cautious about the global economic outlook.
Double-digit growth in 2017 for regional insurers outside of Japan, but market volatility and rising interest rates pose challenges.