Pius Zgraggen of OLZ & Partners explains why European investors and family offices should consider investing in Asia, including how they can do it and what to be aware of.
For large Swiss or other European-based family offices, diversification is very important, both in terms of liquid and non-liquid assets, said Pius Zgraggen in an interview.
For non-liquid assets, for example, and especially real estate, Hong Kong is an interesting market, even though property prices are high at the moment.
In terms of liquid assets, Zgraggen said it is necessary to geographical diversification, making Asian stocks, for instance, an attractive option.
Considerations when investing in Asia
Just like in the Western world, investments might go wrong, so it is vital for investors to develop relationships with individuals they can trust, said Zgraggen.
This means choosing a custodian bank that they know, he explained, and doing their due diligence as well as they would in Europe.
More access to emerging markets
According to Zgraggen, the speed at which less developed markets are becoming developed is getting quicker. As a result, he said he advises that more and more emerging markets are included as part of an equity portfolio to ensure diversification.
For example, over the last 15 years, less developed markets have increased from 2% market capitalisation to over 12%, he added.
Getting better informed
For investors looking at Asia, the better informed they are, the more they will appreciate the philosophy of OLZ in terms of efficient diversification at a relatively low cost.
Many investors in in Asia focus on making a lot of money, but incur substantial risk in the process, rather than preservation of capital.
Chief Executive Officer at OLZ & Partners
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