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Schroders: Apac investors double down on global equities and private equity

Schroders: Apac investors double down on global equities and private equity

Asian investors have been pouring money into global equities and private equity markets.

In the past year, net asset flows into global equities from the region have reached US$67 billion, a 95% increase, while private equity flows have hit US$22 billion, a 137% jump.

The trend is being driven by a number of factors, including the search for yield, portfolio diversification, and geopolitical uncertainty closer to home.

Investors have been particularly drawn to global equities as they seek to tap into the recovery in developed markets.

In particular, they have been attracted to the technology and healthcare sectors, which have been among the best performers in recent years.

The popularity of private equity is also being driven by the search for yield, as well as the potential for capital appreciation. Private equity funds typically invest in companies that are not listed on public markets, and they can offer investors access to higher returns than traditional asset classes.

The trend is likely to continue in the coming years, as investors in the region continue to diversify their portfolios and seek out higher returns.

Here are some additional details about the trend:

• The flow of funds into global equities from Asia has been particularly strong from China, which accounted for US$35 billion of the total in the past year.
• Other major contributors to the trend include Taiwan, South Korea, and Singapore.
• The inflow of funds into private equity from Asia has also been broad-based, with significant contributions from a number of countries in the region.
• The trend is being driven by a number of factors, including the search for yield, portfolio diversification, and geopolitical uncertainty closer to home.

Conclusion

The trend of Asian investors doubling down on global equities and private equity is likely to continue in the coming years, as investors in the region continue to diversify their portfolios and seek out higher returns.