Asia-Pacific boasts attractive direct investment opportunities, but the rules of engagement need to change in order to reap the rewards.
Our 2018 Global Pension Study revealed 69% of respondents agreed or strongly agreed that lower returns will drive more investments into alternative asset classes. These classes, which include private equity, infrastructure, real estate or private credit, already represent almost US$10 trillion globally. In 2018, pension funds represented more than one-third of infrastructure investors, with 84% of respondents saying they were satisfied or very satisfied with their infrastructure investments.
It’s clear that alternatives are looking highly attractive, and Asia-Pacific and Japan offer tremendous direct investment opportunities.
According to Jonathon Zhao, EY Asia-Pacific Financial Services Transaction Leader, “regional pension, retirement and social security organizations must step up their direct investment game quickly if they are to retain maximum value for their members.”