Falling tourist numbers, a rise in e-commerce and a growing cohort of homeworkers haven't stopped SWFs and pension funds from pouring millions into office and retail real estate.
Bee Lin Ang
The head of Hong Kong's securities watchdog says ensuring the stability of non-bank lenders has “rocketed up the priority list” since the Covid-19 crash in March.
Asia's family offices believe market volatility will dominate the coming few months, amid a fractious US presidential transition and resurging Covid-19 cases across the world.
Singapore’s sovereign wealth fund and other institutional investors into real estate are analysing the impact of climate risk on investment flows and the pricing of real assets.
The Philippine insurer has also raised its cash holdings amid fears of a lingering impact from Covid on the local economy and stock market, says chief investment officer Arleen Guevara.
Wealthy families are setting up secondary offices in Singapore to diversify their exposure to risks, particularly in Hong Kong, and to avoid areas being badly affected by the pandemic.
US asset owners seeking diversification and returns in a low-yield environment will find it hard to disregard Chinese deals such as the mega Chinese IPO, despite political tensions.
Regional life insurers could benefit from investing in derivatives and alternative assets, but they will also need to enhance governance and credit oversight.
Low interest rates and rampant liquidity are offering companies more financing sources – and limiting the ability of ESG-conscious investors to influence them via divestment.
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A Calpers investment director and the former CIO of GPIF said policymakers should mandate disclosures and establish carbon emission targets, to embed climate change in investing.
Sovereign wealth funds’ allocations to private equity and private debt have risen, but those to real estate have fallen, according to Preqin data.
Singapore’s sovereign wealth fund is maintaining a cautious stance but seeking investments in Asia’s consumption-based sectors.
