Insurers in the region are eyeing more tactical asset allocation and increasingly using ETFs to that end, finds BlackRock research. They are also targeting illiquids, above all private equity.
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Almost half the region's insurers aim to have more than 15% of AUM in private-market assets by 2017, up from a quarter that do today. Meanwhile, they are using external managers less for core fixed income.
In anticipation of the US Federal Reserve curtailing QE, Asian insurers are seeking to diversify portfolios and shift away from benchmark investing.
Asian insurers should consider providing corporate financing to boost investment yields, argue BlackRock and Société Générale.