The pandemic has sharpened investors’ focus on ESG adoption, but for Khazanah and other asset owners in Asia, scaling up sustainability-themed investments has its challenges.
Some asset owners in the region are reducing riskier assets, while more investors around the world are planning to increase their allocations to government bonds.
Asset owners and managers alike have flocked to the distressed debt universe, but the CIO of Korea’s Public Officials Benefit Association has so far not invested into such assets.
Pension fund investors are in for a shock, with global equity market falls reducing their assets. There are a few ways they can react to minimise falls and maximise returns.
With active funds failing to impress in the current bear markets, regional institutional investors look set to keep relying on passive funds – with the odd exception.
The Korean and US pension plans see benefits of favouring peers over external asset managers, as their latest partnership show.