Brighter Super - the $31 billion Australian superannuation fund - is switching to passive managers as market and regulation fears mount.
While investors generally adopt a mix of active and passive investing strategies, the need for ESG- focused decisions may be pushing them to take a more hands-on approach.
An extraordinary general meeting vote for Toshiba in Japan underlines how passive funds can trip up governance. ESG-conscious fund managers need to minimise such conflicts.
While many investors across Asia are beginning to put more assets into passive funds, some remain reluctant to do so.
Asset owners could evolve their usage of index funds and ETFs by turning to more environmental, social and governance plus fixed-income vehicles, say experts.
Asset owners across Asia Pacific look set to slowly raise the amount of passive investments in their overall portfolios, as they continue to absorb new flows of assets.
The difficult market conditions that the Covid-19 pandemic has created could accelerate an existing trend among asset owners: using passive funds to invest in mainstream assets.
AIA’s Group CIO Mark Konyn believes some investors haven't sufficiently considered the governance trade-offs of private assets, or their illiquidity in tougher times.
Exchange-traded funds have enjoyed tremendous demand, but as market volatility continues some of these instruments could find their liquidity being tested.
Increasingly, institutional investors are being wooed by asset managers touting the possibilities offered by smart beta investing. Will it become a core strategy?