Wed, Apr 25, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

BarCap survey: Asian investors love equities and are drawn to risk

Monday, April 11, 2011

Peter Hu
Opalesque Industry Update – The annual Asia wealth management survey by Barclays Capital has shown that majority of Asian investors favor equities as an inflation hedge and at the same time show a strong preference towards ETFs and liquidity. The survey also pointed towards growing sentiments to the return of risk appetite in the region.

Peter Hu, Asia-Pacific head of investment advisory at Barclays Capital in Singapore commented on the report, “I’m not surprised that people choose stocks in inflationary environments rather than putting everything into gold. It’s an obvious inflation hedge.”

According to a report by the Financial Times, a total of 129 advisers took part in the study from 104 wealth managers in nine Asian countries with an aggregate assets under management (AuM) of more than $5,000bn.

An estimated 74% of those polled revealed that their clients were using equities as an inflation hedge, while more than 50% added that investors are looking into gold for the same purpose.

Non-Japanese Asian equities were the preferred portfolio of a majority of Asian investors, followed by U.S. equities. Allocations to non-Japanese equities are 16%, while U.S. equities allocations are placed at 10%.

A separate report by Asian Investors commented that the result of the survey also highlighted the emerging views amongst wealth managers on asset allocations and their perception towards the different markets.

Interestingly, less than three percent of the respondents claimed that their clients make full or significant use of inflation-linked bonds as a hedge against inflation.

“One of the more notable shifts in client sentiment following the financial crisis was the increase in demand for more vanilla or transparent products. However, our survey is clearly pointing towards a shift in that trend over the past year. We now see risk appetite increasing as they feel more comfortable with the recovery of global and regional economies,” Hu was quoted as saying.

Among other things, the survey also provided a clearer picture on structured deposits, funds and ETFs which are the most commonly used wrappers and are expected to rise in usage over the next year, said Risk.net.

Among electronically traded assets, foreign exchange derivatives are the most commonly used by Asian investors. However, there is a growing trend to use a more simple and transparent products, the survey added.
- Precy Dumlao PD

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its