Today’s ‘new normal’ will force investors into new habits around how they make decisions on strategic and tactical allocations, return targets and liquidity, finds an exclusive survey by AsianInvestor and BNY Mellon Investment Management.
COVID-19 has reinforced the urgency for asset owners to rethink how they effectively build portfolios and manage risks. The agility needed to react to sudden market changes while achieving optimal risk-adjusted returns is paramount today – and will be increasingly relevant amid the uncertainty of a post-pandemic world.
As central banks provide further artificial support for listed assets, some asset owners have indicated that they may increase their exposure to unlisted assets.
The sovereign wealth fund is considering a rebalancing of its passive reference portfolio, but its long term investment targets may be less impacted by current coronavirus concerns.
Singapore's reserve-rich central bank could be looking to tweak its IG bond-heavy approach to investing to help supplement the city-state's financial status and make diversification gains.
Reserve managers have undergone a “revolution” of investment diversification, and their yield hunt is expected to continue, with Asia leading the way.