The Canadian and Korean asset management operations of two life insurers have agreed to jointly take advantage of rising institutional investor demand for Asian alternative assets.
A survey of around 100 institutional investors across Asia in late 2019 - conducted by AsianInvestor and HSBC Global Asset Management - has revealed the appetite, trends, challenges, opportunities and a potential roadmap for Hong Kong dollar (HKD) bonds in portfolios.
Cecilia Chan, chief investment officer for fixed income at HSBC Global Asset Management in Asia-Pacific, explains why the firm's strategic outlook on Hong Kong dollar bonds remains positive.
Even the most active buyers of Hong Kong dollar (HKD) bonds want more from this asset in terms of liquidity, issuer diversity and tenor – otherwise it might become more marginalised in portfolios.
There is continued appetite for this asset class as a portfolio tool for investors to achieve specific goals such as matching liabilities and avoiding currency risk. But greater choice, more liquidity and higher yields are in growing demand.
Esther Ong discusses the challenges of investing in various asset classes and the market opportunities available for Malaysian investors.