Asian investors are seeking diversification amid global economic uncertainty, according to a new FleischmanHillard report on Asian asset management.
Performance and reliability remain key factors for investors when choosing an asset manager
HONG KONG, May 6, 2024 /PRNewswire/ — Investors across Asia continue to seek to diversify their investment portfolios amid global economic uncertainty, according to research from FleischmanHillard. The future of wealth management in Asia in 2024 report.
The report, based on research conducted by TRUE Global Intelligence, surveyed 1,250 Asian investment professionals from March 30 to April from Hong Kong SAR, Japan, mainland China, Singapore and South Korea. Each features analysis derived from online surveys completed by 250 people. The report also includes an overview of the latest trends in the Asian asset management industry.
The 2024 report highlights the key risks currently identified by investors. The majority of investors (42%) are most concerned about slowing global growth or even a recession, followed by continued inflation (24%) and geopolitical tensions (16%). In response to these uncertainties, almost a third (29%) of respondents plan to move their investments to lower-risk options, while 23% will maintain their current risk profile. intend to. Mainland Chinese investors in particular stand out, with 49% seeing more buying opportunities and increasing their risk appetite and actual investments in high-yield products.
Stock funds (51%) and bond funds (34%) will continue to be popular among Asian investors next year, but they are increasingly looking to diversify their portfolios. Investors are currently showing enthusiasm for investing in private markets, particularly private equity funds (15%) and private credit funds (15%). Respondents believe these alternative investments can enhance returns, diversify, and complement traditional stocks and bonds (90%) and help reduce overall portfolio risk from economic downturns (90%). Masu.
In terms of investment sectors, AI (49%) will continue to be the most popular sector next year, followed by the Internet sector (34%), biotech and healthcare (33%), and technology, media and communications (33%). Masu. . This indicates a strong preference for new economic sectors that have experienced rapid growth despite global economic challenges.
Commenting on the findings, Patrick Yu, Asia Pacific Head of Financial and Professional Services at FleischmanHillard, said: “Investors are looking to build resilience during this period of global economic uncertainty. “We’re trying to diversify our portfolio. Private equity and private credit funds are traditionally preferred.” Institutional investors are now increasingly attractive to investors in Asia, creating a key opportunity for asset managers to expand their product offerings and communication strategies to meet the needs of Asian investors. ”
Similar to last year’s report, an asset manager’s track record (93%) and reliability (92%) remain the most important factors for investors when choosing an asset manager. Other important criteria include knowledge of the individual manager (87%) and the public profile of the asset manager (86%). Asset managers’ environmental, social and governance (ESG) efforts are still considered important (78%), although this has slightly decreased by 4 points compared to last year’s survey.
Additionally, Asian investors rank high level of risk management (86%), transparent fee disclosure (86%), and good customer communication as the most important qualities for foreign asset managers operating in local markets. They value transparency (84%).
Emphasizing the importance of transparency, visibility and reputation for asset managers, Mr. Yu said, “Now more than ever, demonstrating transparency and having a strong visibility and reputation are key for asset managers.Trust.” “Skills and track record are the foundation of these qualities and are extremely important for asset management companies.” Asset managers can strengthen their strategies, product offerings and ESG initiatives to make a difference in Asia Pacific’s competitive environment. ”
The survey results also revealed:
- Asia Pacific (54%) remains the most popular region for investment next year, with Singapore investors (69%) showing the highest confidence in the region. North America (43%) is her second preferred region for investment, especially preferred by Japanese investors (58%).
- Similar to last year, digital platforms (54% of total) were the most popular channel for sponsoring funds among investors in Asia, and this was driven by the diversity of fund choices (83% of digital platform users). %). Independent financial advisors and bank intermediaries continue to be important channels (43%) alongside wealth managers (38%), with a significant number of investors seeking access to experts through face-to-face interviews during fund sponsorship. Reflects a preference for receiving advice. In particular, investors in mainland China and Singapore are increasingly interested in purchasing funds from independent financial advisors (60% in 2024 compared to 53% in 2023 in mainland China and 45% in 2024 compared to 2023 in Singapore). 55%).
- According to the report, financial media remains the most popular source of information about funds and investment products for investors in Asia (45%). However, this percentage decreased by 8 percentage points from 2023. Face-to-face interactions, such as independent financial advisors and bank intermediaries (30%) and friends and family (29%), also rank as important sources of information. Notably, investors in mainland China prefer social media platforms as their primary source of information (52%) compared to investors in the region.
- Regarding ESG, the most important initiative for asset management companies cited by investors is “walking the talk,” or taking action to exercise voting rights in listed companies (82%). Transparency of ESG data and protocols (79%) and clearly defined ESG goals and objectives (79%) are also highly rated.
fleischmann hillers The future of wealth management in Asia in 2024 The report includes quantitative data and qualitative analysis on the Asia Asset Management industry. All 1,250 respondents identified themselves as having traded or invested in at least one of the following: equity funds, bond funds, ETFs, alternatives, balanced funds, PE funds, digital assets, or cryptocurrencies. A report focused on mainland China, The future of wealth management in China in 2024is also available to asset managers specifically interested in this growing market.
About FleishmanHillard
FleishmanHillard specializes in public relations, reputation management, public relations, brand marketing, digital strategy, social engagement, and content strategy. FleishmanHillard has been named Campaign Global PR Agency of the Year for 2021, 2022 and 2023. 2023 ICCO Large Agency of the Year – Americas; 2022 and 2023 he won PRWeek US Agency of the Year; PRWeek U.S. Super Major Agency of the Year 2022 and 2023; Awarded 2023 Campaign US PR Agency of the Year and 2021 PROvoke APAC Consultancy of the Year. and 2021 PRWeek UK Large Consultancy of the Year. FleishmanHillard is part of Omnicom PR Group, with his nearly 80 offices in more than 30 countries and affiliates in an additional 45 countries.
About Omnicom Public Relations Group
Omnicom PR Group (OPRG) is the world’s largest global network of communications and consulting agencies. It is home to three of the world’s top PR agencies, FleischmanHillard, Ketchum, and Porter Novelli, specializing in corporate and public relations, political consulting and advertising, language strategy, global health strategy, and organizational change. There are more than a dozen specialized agencies. OPRG is part of Omnicom Group Inc. (NYSE: OMC). www.TeamOPRG.com.
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Source: FleishmanHillard