Institutional investors in Asia are more confident than their global counterparts when it comes to navigating the current Covid-19 induced volatility to meet their short and long-term objectives, according to a State Street Corporation survey.
The research shows that 38% of institutional investors in Asia believe they will meet their short-term objectives in contrast to 24% globally.
The figures rise drastically when it comes to meeting long-term objectives with 85% of Asian investors of the belief that they will do so compared to 56% globally.
As investors search for yield, more than 50% globally are looking to increase their exposure to equities over the next three to six months.
“The market volatility sparked by Covid-19 has clearly impacted the investment performance of institutional investors globally,” said Ian Martin, global head of the asset owner segment at State Street.
“However, it appears that Asian investors are more confident about meeting their investment objectives largely because some countries in the region have contained the impact of the virus and the pandemic is at a later stage compared with other parts of the world,” added Martin.
The survey was conducted by CoreData in April 2020 and collected responses from 250 investment professions at pension funds, endowments and foundations, insurance firms, sovereign wealth funds and other institutions that manage assets. Of those surveyed, 16% are from Asia Pacific.
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