Asset mix remains steady as real assets, factor investing and credit allocations outperform.
Assets providing a steady stream of income is gaining attraction both in public and private markets, as the current market turmoil nudges insurers to reassess their allocation strategy, insurance executives discussed at AsianInvestor’s Insurance Investment Briefing in Hong Kong.
The state pension fund joins ESG benchmark as the first Japanese infrastructure investor member, supplementing its existing efforts within real estate investments.
Although private market assets have proven themselves relevant for pension funds, the Korean appetite might be curbed for various reasons.
The Korean national pension fund seems prepared to weather potential storms from public markets this year through alternative allocations.
Asia-Pacific asset owners have lost interest in private equity, although alternative asset allocations, in general, have increased from 15.3% to 21.5% over a six-month period, according to AsianInvestor’s most recent survey.
The life insurer has a diversified hedging toolbox ranging from real assets to derivatives. These tools provide long-term, non-guaranteed benefits to policyholders as inflation, or even stagflation, is now looming.
Gaw Capital Partners, which manages the portfolio, aims to grow the Japanese residential platform to $800 million, citing resilient occupancy rates, healthy growth, and investor interest.
Exclusive research from Nuveen reveals APAC asset owners are more likely to implement inflation mitigation changes in portfolio, through incorporating – or increasing – less liquid investments, than investors from other regions.
When it comes to specific ESG opportunities, private markets are still ahead of public markets, according to two leading ANZ super funds.
Real estate, infrastructure, and natural resources that are linked to rising prices and have a low correlation to economic activities can help investors mitigate risks amid inflation, or even stagflation.
Income-oriented investors need higher yields and diversification – yet with manageable levels of risk. In the search for solutions, Simon England-Brammer of Nuveen outlines the potential for non-traditional assets in the portfolios of Asia Pacific asset owners today.