Asia-Pacific equity flows turned positive, with the Nikkei 225 setting new highs on yen weakness. Private asset strategies are leveraging export-driven earnings momentum to boost near-term portfolio returns. Impact investing targets both profit as well as social and/or environmental outcomes. The strategy typically uses a framework that standardizes impact measurement for investments. Major guidelines use the United Nations’ 17 Sustainable Development Goals as a roadmap to deploy capital. Despite these challenges, private markets will likely remain attractive over the longer term due to their potential for higher returns compared to traditional public markets. Investors are increasingly seeking diversification and exposure to alternative assets, driving demand for innovative investment products. The UK government and workplace pension providers are setting new voluntary targets in the Mansion House Accord to invest in private assets to boost the UK real economy. The pace of change in private markets is fuelling investment opportunities to serve this appetite, from the development of new private businesses to satisfying demands for improved infrastructure. Cloud computing stocks posted double-digit gains in July, motivating private tech asset allocations toward SaaS leaders, supported by increasing enterprise AI adoption and recurring revenue models.
