Beverly Chandler, Opalesque London:
A survey by BNP Paribas Securities Services of major institutional investors in the Asia Pacific region, representing more than $2.2tln in assets under management and undertaken by KPMG, has found that institutional investors in the region are prioritising an improved approach to risk.
Key findings included:
- APAC institutional investors with combined AuM exceeding USD2.2tr unanimously note changing risk culture in their organisations
- 63% of institutions across 11 APAC countries agree that financial crisis has changed their investment approach
- Australia, Japan and Hong Kong asset owners favour risk budgeting when modifying their investment strategy
- 60% mention regulatory risk reporting as having some or significant impact
- 44% report asset allocation as having become more conservative
- Regulatory reporting requirements key challenge for Australia, Indonesia and Indian asset owners
- Chinese asset owners moving towards developing their own credit rating systems for investments
The survey found that asset owners in Asia Pacific have experienced a fundamental shift in attitudes towards risk since the financial crisis, leading them to favour more conservative investment and asset allocation strategies, and place an even greater focus on risk.
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