PART 2: The Capital

R E S E T 2 0 2 2

PA R T 2 : T H E C A P I TA L

As many markets adjust to higher interest rates and a generally more volatile environment, the fundamentals of investment remain as important as ever. This is not the first time that interest rates have risen or that the economic outlook has become more clouded – downside risks are not a new phenomenon. Asia Pacific remains expansionary and is highly diverse both by geography and by sector and therefore offers a variety of return profiles. Real estate continues to play a crucial role, which is why institutional investor target allocation to the region is the highest in the world – 11.4% in 2021 compared to 10.7% globally. Actual deployment remains somewhat lower at 8.5% in Asia Pacific compared to 9.3% globally (according to HodesWeill & Associates), highlighting the mismatch between investor demand and capital placement. To be successful, especially in the current climate, investors will likely need to become more nimble and think more laterally in their view to identify growth assets in growth sectors and markets. CONCLUSION

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