Thijs Knaap, chief economist for Dutch pension fund APG, discusses how pension funds can protect themselves from the effects of high inflation.
The New Zealand sovereign fund will expand into Asia in the coming years.
Appealing logistics valuations and strong ESG ratings are pulling investors to Europe.
Asian investors including Aware Super, LGIAsuper, NZ Super and an Asian insurer have been increasing their allocations to Europe’s residential property sector this year.
Clarity and a better understanding of data can help ESG assessment as fears of greenwashing continue to rise in China and globally.
Hesitancy aside, institutional investors eye Australia and Japan as promising geographies for private debt investments within Asia Pacific, with Greater China and Korea on the periphery.
Asset owners and property investors are finding it increasingly difficult to spot quality investments, due to an inflow of money and a lack of willing sellers.
Studies show that when comparing the long-term returns of listed and unlisted real estate vehicles based on the same underlying assets, the listed sector is an effective proxy for direct property investment. However, listed real estate (LRE) has the benefit of higher transparency, diversification, unmatched liquidity and a lower hurdle to global access compared to direct property.
The appetite for best-of-breed financial products around the world continues to grow, particularly among institutional investors. So it’s no surprise that fund managers continue to look to Europe from a distribution perspective. Once a fund manager has decided to distribute products to the European market, key decisions will need to be made.
Institutional investors in Europe are looking to invest more into emerging market high yield bonds in an effort to boost returns, despite the additional risk they entail.
After pouring nearly $15 billion into European property in the 15 months to March, Korean investors are apparently being put off such assets by relatively high prices and lower returns.
The hunt for attractive yields has made investors from South Korea enter the commercial real estate markets in Central and Eastern Europe.