Asian asset owners are less concerned about geopolitical risk but are just as worried as their global counterparts about inflation and rising rates, according to a new survey by Bfinance.
Rates are headed north, but other factors - such as organisational mandates and sustainability - need to be considered, say top investment executives from HSBC Life and the Indonesian Investment Authority.
Neutral durations and infrastructure debt are part of strategies insurers have employed to manage headwinds such as regime changes and interest rate uncertainties.
Ian Silk joins KPMG as special advisor on ESG issues; Chinese government to conduct probe on insurers and their investments after discovering compliance issues; Ray Dalio's Bridgewater Associates raises $1.25 billion for its third investment fund in China; Korea's NPS posts 8% return for first three quarters of the year; Binance confirms talks with sovereign wealth funds; and more.
Consistent returns is a must for Asian asset owners when it comes to selecting external managers, according to an AOI report. Information delivery also ranks high on the list.
About 95% of global insurers say climate risk is already shaping their portfolios, according to BlackRock’s latest report.
European insurers lead the industry in having insurance and investment policies put in place to limit exposure to fossil fuels, while US and Asian firms received bottom scores.
Asian insurers and pension funds are partnering up with logistics experts to strategically invest in logistics real estate across the globe.
Allianz Real Estate has given itself until the end of next year to reverse the fortunes of the assets in its €74bn real estate portfolio that are performing poorly on carbon emissions.
Allianz, AIA, and AXA are set to compete with domestic players via wholly owned business and asset management firms in China.
Reits are set to gain from changes brought about by the pandemic, while the yield, diversity and ESG benefits of the asset class are becoming more apparent to Asian insurers.
The life insurer wants to increase its investments in the private debt, credit, and derivatives markets as it strives to manage its liabilities better.