The hedge fund industry has been relatively slow to embrace environmental, social and governance (ESG). But this looks likely to change as asset owners increasingly demand it.
A new study by Aima and EY says that Asian hedge funds are more diverse than their European counterparts, but that they still need to do more.
Investors also seem better able to pick passive onshore China equity-heavy products than active ones, finds Morningstar research.
Alaska Permanent Fund is gearing up to trade Chinese debt after including it in its index this year, and would like to find more Asian fund managers for its absolute return portfolio.
A survey of over 300 institutional investors by Credit Suisse reveals they are seeking to access emerging markets via hedge funds, particularly China.
Industry advisers believe select hedge fund strategies will enjoy some demand from asset owners seeking to navigate unpredictable markets this year.