Technology and big data-driven databases are expected to help Asian asset owners appropriately benchmark their alternative investments across the world.
The CIO of the sovereign wealth fund outlined his investment strategy for alternative assets, and how he plans to leverage technology at a webinar hosted by AsianInvestor.
Asset owners looking to diversify portfolio risk with hedge funds may see limited gains or even losses as the Covid-19-induced financial crisis renders fundamentals irrelevant.
Institutional investors are allocating more to private equity at the expense of hedge funds and the trend looks set to continue, a survey from EY shows.
Four investment specialists tell AsianInvestor which hedge fund strategies investors are most clamouring for, and which they are shunning in today’s late-cycle environment.
A joint Cerulli-PRI study shows asset owners want more responsible investing from hedge funds, including better integration of ESG criteria and better communications.
An end to the Volcker Rule, part of the US Dodd-Frank Act, could drive flows into alternative assets in Asia. But a return to pre-2008 levels of investment by US banks is seen as unlikely.
But getting investors to allocate more capital to the asset class may rest on a more rational approach to fees, says manager selection specialist Robert Mullane.
As many asset owners pull money out of hedge funds, the likes of Australia's Future Fund and Korea's National Pension Service are prepared to go against the trend.
Many asset owners are pulling out of hedge funds, dismayed by their relatively high fees and low returns. Others, including some Asian institutions, are reviewing their allocations.
Some argue that hedge funds will benefit both from the support of US president-elect Donald Trump and increased volatility. But many institutions are reluctant to invest in them.