Around half of institutional investors in the region are bullish on emerging markets, according to a survey by Natixis Investment Managers, with Asia ex-China named as the top bet.
Emerging markets (EM) are in with 53 percent of Asian institutional investors expecting a take-off in 2024, according to a survey by Natixis Investment Managers. Investments in Asia while excluding the Chinese market were favoured as the best EM opportunity.
Still, respondents generally expressed caution about the broader market. 63 percent and 44 percent project higher levels of volatility for equities and bonds, respectively. On the the former asset class, 65 percent were generally bearish though technology (51 percent) and large caps (65 percent) are expected to experience continued outperformance.
Three Asset Classes
Overall, market projections for 2024 show that Asian institutional investors are bullish on just three asset classes: private debt (68 percent), bonds (64 percent) and private equity (53 percent).
Declining consumer spending was the top concern at 53 percent with 47 percent calling a recession inevitable next year. 43 percent were also concerned about bad actors in geopolitics.
Natixis Investment Managers’ survey was based on responses from 500 global institutional investors who manage $23.2 trillion in total assets for public and private pensions, insurers, foundations, endowments and sovereign wealth funds.
