Asset managers are facing unprecedented and unexpected challenges in Asia and the US markets especially.
This was the message from a panel discussion on day one of ALFI’s Global Distribution Conference in Luxembourg.
The panel discussion, moderated by Camille Thommes, director general, Association of the Luxembourg Fund Industry (ALFI), and featured panellists Jim Fitzpatrick, president & CEO, Nicsa, and Sally Wong, CEO, Hong Kong Investment Funds Association (HKIFA), investigated how asset managers can navigate pressing geopolitical challenges.
The session saw Thommes explain to the audience that society is dealing with the aftereffects of the Covid-19 pandemic, tackling a demanding regulatory agenda with an ever-increasing focus on sustainable finance and facing soaring energy prices and higher inflationary trends and interest rates.
From this, the audience was posed with the question, “what can investment funds associations such as HKIFA, nicsa and ALFI do to support their respective members?”
Wong explained that the financial industry in Hong Kong has faced challenges from Covid-19 travel restrictions, including a talent shortage and “robust outflows”, especially among bonds.
While Hong Kong has now eased many of these restrictions, the funds industry also faces some challenges from regulations around sustainable finance and ESG funds.
Entity and fund levels are important regulations in Hong Kong, stressed Wong. “Green finance association are working hard and creating various funds since it’s a key area and everyone understands the importance”.
Every market wants to be a sustainable hub, she explained to audience members. Seeing how to achieve close ties with global partners and achieve ISB certification are also important concerns, stated Wong.
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