Hong Kong and mainland China will continue to be the growth engine for asset-management companies as both local and international investors are starting to shift from holding cash to investing in equities and bonds in the region, according to the top boss of US fund house Invesco.
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“There is a trend of redistribution of people’s portfolios, as they are looking for value opportunities, which are showing up in emerging markets, equity, emerging-market debt and global equities,” said Andrew Schlossberg, president and CEO of Invesco, in an exclusive interview on Tuesday.
A combination of interest-rate cuts and confidence in markets was driving the trend, as the macroeconomic and market outlook had more clarity this year, he said.
“There are a lot of cash deposits held by people in China that will find their way into the markets,” Schlossberg said. “We are seeing the trend from our joint venture Great Wall Invesco in China, where people are investing in a fixed income plus fund, which is a balanced portfolio with a mixture of fixed income and equities.”
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Schlossberg was a speaker at the recently concluded Global Financial Leaders’ Investment Summit. Attended by 300 top global financiers, it was the fourth edition of the annual flagship gathering organised by the HKMA.
