The growing appetite among asset owners to bring portfolio management in-house is understandable, but the talent pool is already tight in Asia – and getting tighter.
The US state's biggest retirement fund has nearly trebled its target allocation to private credit and is adding private equity and real assets too. It is also eyeing other ways to boost returns.
As they plan for an uncertain and low-rate investment future, asset owners will likely insource more of their investing, add internal expertise and seek to improve their governance.
In the case of AustralianSuper, an $112 billion retirement fund, strong inflows are adding to the pressure to accelerate investment team growth.
Institutional investors' moves to run more portfolios in-house are also forcing service providers to adjust.
AsianInvestor dispels 10 myths about institutional investors in Asia Pacific after surveying them on their asset allocation plans and market thinking.