The asset class remains compelling for Asia-Pacific life insurance companies in 2023 despite market uncertainties and doubts over valuations in the private market.
Stable assets that allow LPs to have a say in company management are guaranteeing decent returns amid the current market volatility.
The life insurer sees many opportunities around ESG investment in alternatives, but questions how to evaluate such emerging assets using traditional metrics.
Internal research is necessary to comprehend the underlying data and risks to a portfolio rather than simply relying on data from others, according to the life insurer.
Besides Covid travel restrictions, escalating ESG pressures and regulatory changes pose challenges to asset owners looking to hire and retain talent in Hong Kong.
The life insurer calls for more awareness of the funding gap to ensure emerging markets are not falling behind in the global push for ESG.