The ease of direct investments into property firms and the availability of niche sectors in the US have drawn asset owners such as Australia’s Aware Super and Korea’s Poba.
For smaller asset owners with limited internal capacity, bond indices can serve as a good proxy for fixed income ESG screening.
They have teamed up with each other and with overseas investors to boost investment capacity in real estate and infrastructure investments in Europe and North America.
The investment industry lacks coherent sustainability standards, which makes applying them harder, said officials at asset owners and fund houses from Japan, Malaysia and Korea.
The government's plans to stimulate infrastructure could offer sustainable investment opportunities across many sub-sectors. That is drawing the eyes of Asian asset owners.
The two public pension funds are increasingly forming partnerships to grow their property and infrastructure exposure globally. What's the thinking behind this trend?