NEPC’s Jennifer Appel was quoted in a recent FundFire article noting that future policies from China and the U.S. will pose the most risk to private markets. View the article on FundFire’s site here.
Investment consultants that began the year bullish on China are reassessing the role it should play in institutional investors’ portfolios, as political tensions between the U.S. and China escalate.
Some consultants are recommending active management as the best way to invest in emerging markets and others are warning against private equity in China.
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NEPC largely remains bullish on investments in China but said that private markets will be the riskiest investments currently.
Biden’s executive order targeted specific private market investments in China which are unlikely to affect any institutional investors commitments in China. However, future policies from China and the U.S. will likely attack the private market sector, making these commitments the riskiest, NEPC Senior Investment Director Jennifer Appel said in a paper written this month for the firm.
“China’s central government has restricted private investment in some sectors for policy reasons, for instance, online tutoring and video games; we expect policy risk to persist, and investors must be mindful of unexpected policy changes, which can impact sectors without warning,” she wrote.
Read the full article on FundFire’s website here.