Willis Towers Watson's Asia investment research head is wary of using Chinese fund houses for obtaining mainland exposure, but some asset owners disagree.
Pensions are raising allocations to alternatives, with investments in Asia accounting for a fast-growing proportion of assets, says a Towers Watson survey.
The consultancy’s clients awarded over 50% more hedge fund mandates and 30% more equity mandates in 2010 than the previous year, but there was a 30% drop on the bond side.
A domestic equity focus saw AUM among Chinese managers swell by 56% last year, driven by retail demand for mutual funds. The rate is twice as fast as peers in the US and three times as fast as Europe.