Schroders: Tariffs Dominate Concerns for APAC Investors
Tariffs are the top concern for Asia Pacific investors by a long shot, according to a survey by Schroders.
Nearly two-thirds (60 percent) of investors in Asia Pacific chose tariffs as the number one macroeconomic concern – six times more than the next highest perceived risk which is an economic downturn – according to Schroders’ Global Investor Insights Survey.
The report said this trade uncertainty is «likely to have fuelled investors’ strong focus on ‘portfolio resilience’ over the next 18 months», as cited by 53 percent of APAC respondents, in line with global peers.
Preferred Asset Classes
Three region’s top three preferred asset classes for returns were private equity (49 percent), public equities (44 percent) and private debt and credit alternatives (34 percent).
Within private equity, small-to-mid cap buyouts was seen as compelling (63 percent). In public equities, APAC including India (87 percent) was viewed as the source of the strongest returns. 45 percent of investors also favor activities strategies compared to just 11 percent in a passive approach. Private debt and credit alternatives was the second choice for income generation (41 percent) behind high-yielding equities (44 percent).
«Investors are increasingly focused on resilience,» commented Johanna Kyrklund, group chief investment officer at Schroders. «They are seeking strategic returns through diversified global equities and specialist, conviction private equity. Meanwhile, their search for income is evolving, with greater emphasis on multi-channel, risk-adjusted sources like infrastructure debt and securitized credit.»
The survey was based on responses from 1,000 institutional investors and wealth managers globally encompassing $67 trillion in assets.