Pensions and insurers give new impetus to Asia’s ETFs
Yield-chasing has been a persistent theme among Asian insurers. “As low interest rates reduce the income-generating ability of fixed-income investments, insurers are looking to diversify their return sources,” says Brian Roberts, senior vice‑president and head of exchange-traded products at HKEX. “Investors can’t control market returns, but can control fees that eat away at their returns. The low-cost, tax-efficient nature of ETFs is one of the reasons we’re seeing stronger interest among insurers.”
According to data compiled by research provider ETFGI, Asia’s ETF market has grown by around 10% in the first six months of the year to US$458.1 billion. The appetite for ETFs shows no signs of waning – a survey by the Asia ETF Forum revealed around 70% of institutional investors expect to increase allocation to ETFs in the future.
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