Sovereign wealth fund China Investment Corporation's total assets under management dropped to $1.24 trillion at the end of 2022. But, it still managed to achieve its 50% alternative asset allocation target for overseas investments.
The largest asset owners across Asia Pacific have a lower allocation to alternatives, but a new portfolio construction approach could help change that.
The global themes of decarbonisation, deglobalisation, evolving demographics and the artificial intelligence (AI) revolution continue to create new opportunities to invest in private assets, according to Nils Rode, chief investment officer of Schroders Capital.
Most Asian pension schemes’ alternative investments grew by double digits between 2018 and 2022, according to Cerulli Associates. Yet these funds also struggle with limited understanding and lack of in-house expertise.
Gareth Nicholson, CIO and head of discretionary portfolio management, international wealth management, Nomura, talks about the latest trends in fund selection.
Indonesia's latest co-investment aims to capitalise on global hyperscalers hoping to tap into a booming local consumer market. There is also scope to cater to excess demand from Singapore.
CDPQ and OTPP have no plans to return to the sector, following a pull-out earlier in the year. These moves come after a sharp acceleration in China allocations by Canada's institutional investors over the past decade.
Some family offices in Singapore are staying away from private markets for now, and only looking at selective opportunities as concerns about the market outlook linger. Liquidity and liquid assets are a key priority as of now.
The $13 billion pension fund has about 22% of its investment portfolio in alternative assets, including private equity, infrastructure, commodities and gold.