A multi-asset approach that is nimble while targeting higher quality and more liquid assets is the priority for asset owners and managers as they look to tackle volatility and uncertainty for the rest of 2023, finds the latest poll by AsianInvestor and S&P Dow Jones Indices (S&P DJI).
Adapting to uncertain times
As macro, market and geopolitical headwinds continue to ebb and flow, several common asset allocation themes are shaping investment strategies across Asia. At the same time – accentuating the challenges for portfolio planning amid such an unpredictable outlook – investor opinion is divided on some key considerations.
For example, while long-term capital growth is expected to be the main driver for allocation decisions over the next six months, investors want to be flexible and active in their tactical asset selection.
Further, in eyeing multi-asset exposure, different allocators have different priorities. As they look to manage volatility and achieve absolute returns, their key considerations when selecting a multi-asset strategy range from its ability to stay aligned with the defined investment goal, to its track record, to its performance over the benchmark.
Yet in the search for consistent and attractive risk-adjusted returns during the rest of 2023, there is consensus in terms of a preference for high-quality fixed income, across global, Asian and US investment grade (IG) bonds. Investors also want to stay liquid, whether via alternatives or cash.
These were some of the exclusive insights from 101 senior executives at leading asset owners and investment managers in 11 markets across Asia, gathered in May and June 2023 by AsianInvestor in collaboration with S&P DJI. Respondents included insurance companies, public and private pension funds, sovereign wealth funds, government entities, endowments, family offices and asset managers – from Hong Kong, Taiwan, Australia, South Korea, Japan, Singapore, Thailand, Malaysia, Indonesia, the Philippines and India.
