In Asia-Pacific, low-yields and regulations drive new asset allocations
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Sponsored by: Sources: The Economist Intelligence Unit survey, July 2017 Copyright: © The Economist Intelligence Unit, 2017 Investment and regulatory climate causing asset reallocation In Asia-Pacific, low-yields and regulations drive new asset allocations In today's low-yield and regulated environment, many Asia-Pacific investors are more actively monitoring their portfolios with a willingness to increase turnover and shift asset class allocations for higher returns. However, they tread cautiously and with shortening time horizons on fears that market volatility will increase. Equities, new products, and diversification across markets are seen as sources of future alpha and factors to help mitigate risks. % respondents Investors looking to other asset classes % respondents Investors shifting portfolio strategies Cash Funds Alternatives Commodities Bonds and Fixed income Equities 9% 19% 34% 39% 41% 50% taking a more active approach to investing reallocated asset classes due to regulations increasing portfolio turnover despite increased riskiness 45 CHANGES ON THE INSTITUTIONAL INVESTMENT HORIZON
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Transcript of In Asia-Pacific, low-yields and regulations drive new asset allocations
Sponsored by:Sources: The Economist Intelligence Unit survey, July 2017Copyright: © The Economist Intelligence Unit, 2017
Investment and regulatory climate causing asset reallocation
In Asia-Pacific, low-yields and regulations drive new asset allocations
In today's low-yield and regulated environment, many Asia-Pacific investors are more actively monitoring their portfolios with a willingness to increase turnover and shift asset class allocations for higher returns. However, they tread cautiously and with shortening time horizons on fears that market volatility will increase. Equities, new products, and diversification across markets are seen as sources of future alpha and factors to help mitigate risks.
% respondentsInvestors looking to other asset classes
% respondentsInvestors shifting portfolio strategies
Cash
Funds
Alternatives
Commodities
Bonds and Fixed income
Equities
9%
19%
34%
39%
41%
50%taking a more active approach to investing
reallocated asset classes due to regulations
increasing portfolio turnover despite increased riskiness
45
CHANGES ON THE INSTITUTIONAL
INVESTMENT HORIZON
CHANGES ON THE INVESTMENT HORIZON
Sponsored by:Sources: The Economist Intelligence Unit survey, July 2017Copyright: © The Economist Intelligence Unit, 2017
Investment time horizons under pressure
New products and markets hold alpha promise
New products
New markets
Regulations arbitrage
opportunities
New technology
and tools
Increased focus on factors
Where Asia-Pacific investors see alpha in the next 3-5 years
80% expect to increase their Environmental, Social and Governance (ESG) investments over the next five years
% respondents, top five responses
plan to increase exposure to developing markets in Asia.
56%
48%
38%36% 34%
23%
% respondents, top five responsesWhat is the biggest impediment to lengthening the investment horizon? Financial stability risk is
the number one concern of institutional investors
in Asia-Pacific
Marketvolatility
Reputationalrisk
Short-termrequirements
Globaleconomic outlook
Regulatory change
35%
29%27% 27%
23%
of Asia-Pacific investors are shortening their holding periods
