Semi-liquid funds were the top option in Asia Pacific for accessing private markets, according to a survey by Schroders.
Semi-liquid or open-ended evergreen funds were the most preferred option for accessing private market opportunities, as stated by 56 percent of wealth managers and advisors in Asia Pacific, according to Schroders’ «Global Investor Insights Survey» (GIIS). This was followed closely by listed funds (54 percent) and close-ended funds (52 percent).
Regardless of the vehicle of choice, the asset class has achieved widespread acceptance. 71 percent of respondents are personally involved or will be involved in the private market allocation or product selection process within their organization.
Higher returns compared to public markets (64 percent) and diversification (60 percent) were the top benefits cited.
Top Challenges
However, there are still hurdles to further grow the market. 46 percent cited clients’ limited understanding of private markets. Potential liquidity issues (41 percent) and transparency concerns (34 percent) were also named as top challenges.
«There is no doubt that investors in Asia Pacific believe that private assets will play a very significant role in their portfolios going forward,» said David Bajada, investment director, private equity, Schroders Capital. «The key for them is to further explore and utilize the emergence of new vehicles, such as semi-liquid funds, that will broaden access and offer flexibility for investors to meet their investment objectives in private markets.»
GIIS was based on responses from 1,755 global wealth managers and financial advisers globally, including 525 from APAC, representing $12.1 trillion in assets.
