Asia's asset owners have taken big strides into passive investing since 2010. Hong Kong's Hospital Authority Provident Fund and Taiwan's Bureau of Labor Funds explain why and how.
In the second of a two-part interview, Heman Wong of Hong Kong's Hospital Authority Provident Fund Scheme describes the institution's investment set-up and how it selects fund managers.
In the first of a two-part interview, Heman Wong, investment head at Hong Kong's Hospital Authority Provident Fund Scheme, discusses favouring China equities and index mandates.
Allowing changes to investment guidelines can help fund managers position for interest rate rises and widening credit spreads, say institutions, but derivatives are still taboo for some.
Different investors have different ideas of how to generate returns as global interest rates remain at record lows.
It is seeking A-share and RMB bond managers for its provident scheme as it awaits a QFII quota. It also chooses two managers for a US small-cap mandate after replacing the previous manager.