In recent months, investors worldwide have faced a number of disruptions that have triggered increased volatility in the financial markets and risk to their portfolios. From movements to leave economic and political unions, restructuring of trade agreements, turbulent political landscapes, and more, the global market is being tested on an almost daily basis. And nowhere has the anxiety been greater than Asia, which continues to enjoy solid growth but remains a challenge for some due to regulations, access to markets, liquidity, and transparency.
In a timely Q&A session, Deb Clarke, global head of Mercer’s Investment Research, and Adeline Tan, head of Mercer’s Investment Advisory, discuss the rocky global political situation, volatility, and the low-yield environment and their impact on investing in Asia–which remain tantalizingly elusive for some.
Investors need to understand that... the types of products available, including vehicles, may be different (in Asia). But this creates the opportunity.
In particular, the two shed light on themes and opportunities that exist here, for those who know where and how to look. For example, investors could round out their portfolios and their hunt for yield with private infrastructure, private debt and hedge funds in Asia. In an uncertain market, with concerns about downside volatility, investors might consider opportunities in Asia for hard and soft hedges to provide downside protection.
But, the key to success is understanding the market, its intricacies, the overall culture, currency, and constraints. Transparency around regulations is also a barrier, therefore, investors must select good managers with the know-how and infrastructure to overcome or mitigate such risk.
Read more of their insights into global investment trends, get to know Asian financial markets and see if it is the right move for you.
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