We asked asset managers in Asia for their views on European assets as record high energy prices and the coming winter threaten to drag the continent into a recession.
Asian investors including Aware Super, LGIAsuper, NZ Super and an Asian insurer have been increasing their allocations to Europe’s residential property sector this year.
Hesitancy aside, institutional investors eye Australia and Japan as promising geographies for private debt investments within Asia Pacific, with Greater China and Korea on the periphery.
Asset owners and property investors are finding it increasingly difficult to spot quality investments, due to an inflow of money and a lack of willing sellers.
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.
The appetite for best-of-breed financial products around the world continues to grow, particularly among institutional investors. So it’s no surprise that fund managers continue to look to Europe from a distribution perspective. Once a fund manager has decided to distribute products to the European market, key decisions will need to be made.