The US-headquartered pension fund’s private equity chief believes investors’ flight from China-associated investments is ‘overdone’.
Global politics will influence investor behaviour to a greater extent this year, for various reasons — not least of which being the sheer number of countries going to the polls.
Top executives at Hong Kong family offices said the scale of local capital markets and government incentives outweigh geopolitical concerns, pointing to the city's role as a gateway to China and a middle ground between the US and Europe.
In an everchanging environment, institutional investors will likely find it easier to stick to their time-tested strategic asset allocation models. But these models need to be checked against the real world, said Rahul Bhuskute, CIO of Bharti AXA Life Insurance.
Hong Kong, which is offering incentives, seems to be a reasonable destination for wealthy Chinese families to place their money. But factors such as geopolitics and regional competition also play a part.
One advantage is that smaller emerging markets are more likely to gain attention from Asian-investing institutions.
Deglobalisation is not a new concept to investors, but what risks and opportunities would the decoupling and onshoring of the world’s supply chains present Asia’s investment landscape?
Moves to localise trade and end freedom of movement are threats — but also opportunities, say investors based in the SAR.
Volatile geopolitics, unpredictable monetary policy and generational differences in priorities means sovereign wealth funds will have their work cut out for them in the coming decades.
An impending series of interest rate increases and the deterioration in relations between Russia and the West over Ukraine have worried investors in recent weeks, hence the volatility in US equities in particular.
The incoming administration of Joe Biden will have very different priorities and instincts to those of Donald Trump. That will shift the region's geopolitics and investment possibilities.
And asset owners are right to be worried about the impact of certain events on portfolios, according to research from State Street Global Investors.