Asian funds pour into alternative assets as traditional returns slide

Singapore

AS RETURNS on traditional assets have nosedived or turned more volatile in Asia, conservative investors such as pension funds and insurers have been pouring cash into alternative investments that bring the yield they need, but at significantly higher risk.

Many countries in Asia only started to cut interest rates in 2015 or 2016, but they are now at or near record lows and expected to fall further; India, South Korea, Indonesia, Taiwan and Thailand are all likely to see rate cuts this year, according to economists at Nomura.

The resulting decline in bond yields has hit the …