The largest asset owners across Asia Pacific have a lower allocation to alternatives, but a new portfolio construction approach could help change that.
In partnership with Schroders
The global themes of decarbonisation, deglobalisation, evolving demographics and the artificial intelligence (AI) revolution continue to create new opportunities to invest in private assets, according to Nils Rode, chief investment officer of Schroders Capital.
More capital and asset owners are flocking into the asset class as it meets their return expectations, according to two recently-released reports.
The Malaysian pension fund is eyeing its first private credit deal this year as a part of wider private market push.
Most Asian pension schemes’ alternative investments grew by double digits between 2018 and 2022, according to Cerulli Associates. Yet these funds also struggle with limited understanding and lack of in-house expertise.
Gareth Nicholson, CIO and head of discretionary portfolio management, international wealth management, Nomura, talks about the latest trends in fund selection.
Indonesia's latest co-investment aims to capitalise on global hyperscalers hoping to tap into a booming local consumer market. There is also scope to cater to excess demand from Singapore.
CDPQ and OTPP have no plans to return to the sector, following a pull-out earlier in the year. These moves come after a sharp acceleration in China allocations by Canada's institutional investors over the past decade.
High levels of risk and more attractive options see some family offices in two finance hubs steer clear of the novel asset class.
Some family offices in Singapore are staying away from private markets for now, and only looking at selective opportunities as concerns about the market outlook linger. Liquidity and liquid assets are a key priority as of now.
The $13 billion pension fund has about 22% of its investment portfolio in alternative assets, including private equity, infrastructure, commodities and gold.
Institutional investors are making new allocations despite the limited scope of local private markets. A weak won is a major factor for the home bias.