Alternative risk premia breaks through in Asia
Until recently, fund managers in Asia that talked about alternative risk premia (ARP) spoke mostly about Japan and Australia, rarely about the rest of the region and almost never about China. There, any such plans were usually described as work in progress.
That began to change last year, with fund houses such as Ping An of China Asset Management (Hong Kong) launching in the sector.
There have been some wobbles in the performance of ARP globally, but approaching the middle of 2019, executives are once again effusive about the sector. A minority of pension funds and other institutions in Asia are users of risk premia, and investment managers face an ongoing task to convince investors the strategy has a place in a well-diversified portfolio. But it looks like they are succeeding.
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