The building society's defined benefit fund will be relying more on private credit for returns as it de-risks and moves into payout mode, says its chief investment officer.
The Malaysian state-linked unit trust manager has given factor-based global equity mandates to three fund houses and is mulling investing into new types of illiquid assets, say sources.
The $34 billion public fund plans to invest up to $850 million into opportunistic private credit mandates in a drive to ramp up its illiquid asset exposure.
The region’s investors want to raise their private equity, private debt and infrastructure property to help raise returns amid a bleaker economic outlook, according to a new survey.
Asian asset owners are reducing equity positions and adding to alternative assets, particularly infrastructure and private debt, as they seek to diversify returns, say experts.
The enthusiasm of executives at the managers for private debt is increasing, albeit carefully, amid the pandemic due to its returns profile and shorter lock-up period versus private equity.