Christian Bucaro, head of distribution, South East Asia at BNP Paribas Investment Partners discusses European equities, how they have been "unfairly punished" by the debt crisis and Asian high net worth investors' renewed interest in them.
After turning their backs on European equities for years, Asian high net worth investors are starting to show some interest.
“We’ve been highlighting European equities which we feel are attractively valued and being unfairly punished by the European debt crisis. Asian distributors hardly ever followed up on our meetings but in the last couple of months, there’s been a lot more feedback and more action. High net worth investors are starting to realise that there’s interesting value in European equities,” Christian Bucaro, head of distribution, South East Asia at BNP Paribas Investment Partners, said in recent comments sent to this publication.
Investors in Japan, often on the forefront, were among the first to pick up on the trend while private banks in Singapore and Hong Kong are also showing interest, he said. Though inflows aren’t “massive” the change of heart marks something of a historic change for Asian investors, who have generally preferred to keep their holdings closer to home. Investors have looked outside the region tended to focus on the US.
Asian investors haven’t been the only ones who are looking for alternatives. Last month, American investors pumped more money into European equities than anytime since 1977, with pension funds and other institutional investors investing $65 billion into European stocks in the first six months of 2013 (source: Goldman Sachs).