News

Digital assets gain traction among Asian investors

Digital assetsThere is a growing interest among Asia fund and wealth managers in digital assets based on the expectation that retail demand for cryptocurrencies will spill over into the mutual funds and ETFs market. This is the finding from a report by investment consultant Cerulli Associates, which found that asset managers are adding crypto and blockchain themes into their mutual funds offerings. At the root of this move is the appetite for cryptocurrencies among young and relatively risk-tolerant investors. However, there is also a similar appetite among wealthy Asian investors, states Cerulli, especially through ETFs as well as direct investments. According to Cerulli’s research, 55% of family offices indicated interest in increasing exposure to crypto over the next two years. There is also interest in the broader digital assets market, as seen by the blockchain-themed funds launched in South Korea, Thailand and Singapore last year. Cerulli also states that distributors in the region have called for their asset management partners to “develop niche product ideas that offer long-term opportunity, including technology themes such as blockchain and cryptocurrency”. One potential sticking point is regulation, considering South Korea does not yet allow for crypto ETFs or mutual funds. And while Singapore is slightly warmer on digital assets, it still lags behind Australia regarding crypto-related ETF listings. “Crypto funds offer an important asset-gathering opportunity for managers,” said Cerulli managing director Ken Yap. “For investors, the growing number of mutual funds and ETFs coming to market help to widen product choices or even legitimize crypto investing by providing arguably safer routes to accessing this asset class, compared to direct crypto investing.” © 2022 funds global asia

Industry comments

Investing in tomorrow’s world

investmentAt times like these, HSBC Asset Management easily pivots towards emerging markets.

The spotlight on growth markets and the need to be nimble and dynamic is ever-sharper, given the difficulty in predicting monetary policy in the world’s major nations.

Sponsored feature: Navigating the complexities of FX execution and currency risk

A comprehensive, cost-effective, and transparent currency overlay hedging solution is crucial to mitigate FX exposure risks in the complex landscapes of Japan and China's FX markets, explains Hans Jacob Feder, PhD, global head of FX services at MUFG Investor Services.

Opinion

The emergence of AI-powered funds

Contradictory market sentiments from commentators have impeded the decision-making powers of the first wave of AI-powered ETFs, says Alvin Chia of Northern Trust Asset Servicing.

Transitioning to an era of scarcity

The world is transitioning from an era of commodity abundance to one of undersupply. Ben Ross and Tyler Rosenlicht of Cohen & Steers believe this shift may result in significant returns for commodities and resource producers over the next decade.

Asia credit: An outsized winner in the region’s energy transition?

Ross Dilkes, fixed income portfolio manager at Wellington Management, examines the opportunities and risks for bond investors presented by the region’s decarbonisation agenda.

A quiet revolution in Japan’s corporate governance

revolution, Japan, corporate governance, Shareholders, corporate, governance, standards, improvement, Tetsuro Takase, SuMi TrustShareholders in Japan no longer accept below-par corporate governance standards. Changes are taking place, but there are still areas for improvement, says Tetsuro Takase at SuMi Trust.

Executive Interviews

Executive interview: PGIM CEO on where the ESG flowers should bloom

Sep 27, 2021

David Hunt, president and chief executive of PGIM, tells Romil Patel about leading a top 10 global asset manager in times where “empowering and encouraging the kind of investment decisions as...

Executive interview: Nicolas Moreau’s orderly transition

Jul 12, 2021

Nicolas Moreau, CEO of HSBC Asset Management, is moving to Asia as the firm looks to connect more directly with the region’s growth story. ESG is also a key focus – including the ‘just’ carbon...

Roundtables

India: An “obvious choice for global investors”

Jun 22, 2023

Funds Europe, the sister publication of Funds Global Asia, hosted an India investment discussion with two seasoned experts and asked if India is the ‘last one standing’ from the Brics phenomenon. We also hear that for India, the inclusion of Indian bonds in a major index may not be the desired...

Roundtable: Singapore comes of age as an Asian ESG hub

Dec 01, 2021

Strong ESG credentials strengthen the case for Singapore as a leader in Asia of the post-Covid recovery. Our panel discusses the risks and opportunities.