Mon, Aug 3, 2015
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. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  3. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  4. Opalesque Roundup: Hedge fund assets rose to 11th consecutive quarterly record level: hedge fund news, week 31[more]

    In the week ending 24 July, 2015, the total global hedge fund industry assets rose to the 11th consecutive quarterly record level in 2Q15 to $2.97tln; Eurekahedge reported that hedge funds raised $93bn in the first six months of 2015; The SS&C GlobeOp Forward Redemption Indicator for July 201

  5. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

 

banner