Institutional Investors

Asian institutions flock to alternatives


Change is afoot in Asia as sovereign wealth funds, pension funds and insurance companies are seeking alternatives to traditional markets and passive portfolios. To do this, Asian investors are looking to external managers, often international managers, to assist diversifying the asset mix.

Asian sovereign wealth funds are showing greater interest in alternatives, with assets in this arena growing from $432 billion in 2006 to $1.3 trillion as of 2010, according to Cerulli Associates. The China Investment Corporation, which made an impact on regional numbers when it disclosed data for the first time in 2008,