MAS names sustainability head; Malaysia’s EPF appoints COO and CFO; GIC PE head for SEA leaves; State Super hires new exec; Hesta appoints chief growth officer, chief Debby Blakey appointed to corporate governance board; ex-BlackRock exec joins IQ-EQ in Singapore; HSBC AM builds direct real estate team; ex-Vanguard head of distribution joins LGIM; Sanne names Singapore head; and more
And while the industry did enjoy net inflows from investors in the second quarter, the gain is nearly half the $1 billion gain from the first quarter, suggesting that investor interest is flagging.
As absolute-return vehicles, hedge funds are failing the test this year. Those Asia ex-Japan-focused strategies tracked by HFR have in aggregate lost -15.86% year-to-date, while Japan-only strategies have lost -7.14%, and Asia including Japan strategies are down -8.29%.
They are in aggregate doing better than benchmark indices such as the S&P500 with dividends (-11.9%), JapanÆs Nikkei 225 (-12%), IndiaÆs Sensex (-33%) and Chinese equities (-45%). But investors arenÆt paying hedge-fund fees for relative performance.
Certain strategies are flourishing: arbitrage strategies have done well, enjoying asset growth of $730 million. Multi-strategy products have gained inflows of $720 million. And the niche area of fundamental growth-equity has surged by $1.19 billion.
But event-driven strategies have seen net assets tumble by $525 million, while general equity hedge strategies (which account for over 63% of AUM and 74% of the total number of Asia-focused funds) have lost over $600 million in capital. Market-neutral equity and fundamental-value strategies together suffered capital withdrawals of $1.1 billion.
One reason for the pain among Asia-focused players is the overweening role of equity long/short strategies, at a time when favoured sectors such as macro are thin on the ground, notes Kenneth Heinz, president of HFR.
The AU$85 billion ($61.6 billion) Australian super fund has some exposure to indebted property developer Evergrande. Meanwhile, China’s construction finance is part of its core strategy in real estate.
Investors are seeing the risks, but also the opportunities of the logistics sector. Warehousing their fears for the moment, they can see it's a good conduit to high-growth assets.
Insto roundup: GPIF staff say J-Reits more attractive than traditional assets; Hong Kong's strict Spac criteria
EISS Super hit by another scandal; China's CSRC launches consultation on disclosure requirements for new BSE securities; Hong Kong issues consultation paper on Spacs; New World Development partners with China Taiping to focus on Greater Bay Area projects; GPIF employees say Japanese Reits have grown more attractive; Taiwan's BLF invites bid for $1.7 billion mandate; and more
SGX’s new framework for Spacs will likely provide investors with a much-needed channel for direct deals, but the verdict is still out on whether it will bring liquidity to the bourse.