The Chinese insurer has turned more cautious on overseas investments, but is fast raising its Hong Kong equity exposure, as its assets continue to swell.
The Chinese insurer doubled its Hong Kong equity allocation and ramped up its alternatives exposure last year, while also boosting its cash position in anticipation of domestic rate rises.
China’s second biggest insurer by AUM is aggressively building its overseas portfolio and is set to pour as much as another $16 billion into offshore investments in the next few years.
China's Ping An Insurance plans to add managers and boost exposure to foreign and property assets and preferred shares. It expects to have an extra Rmb250 billion to invest this year.
China’s second-largest life insurer is taking a cautious approach to credit and liquidity risks amid a slowing economy. Ping An's CIO says he will focus on fixed-income assets for the foreseeable future.
The firm offers three physically backed strategies targeting retail and institutional investors in Hong Kong and overseas, but admits it is a latecomer to the market.