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
Equity funds posted an average return of 2.94%. Emerging market funds that invest in China and India were among last monthÆs top gainers. Japanese portfolios, meanwhile, were among those that suffered the most last month.
Commodities funds, which were among the top performers in September, posted an average loss of -5.38% last month.
On the local front, Kenneth Koh, Singapore-based head of research at Lipper, says liquidity remains abundant and this should help support the market in the coming weeks.
He notes, however, that property stock may remain under pressure due to the governmentÆs decision to withdraw the deferred payment scheme last month.
The government has withdrawn a deferred payment scheme for property purchases due to strong economic and property market conditions.
In 1997, when SingaporeÆs property market was experiencing an extended slump, the government launched the scheme to help boost the otherwise lethargic market. The scheme allowed developers to offer buyers of uncompleted residential and commercial properties the option to defer part of the progress payments due after the initial 20% down payments to a later stage.
Eventually, the government allowed deferrals of up to half of the initial 20% down payments. That move led to speculation among investors who were able to secure property by putting up a minimum down payment and quickly reselling them.
Average October performance of fund groups registered for sale in Singapore, by asset types:
Equity Funds +2.94%
Mixed-Asset Funds +0.46%
Target Maturity Funds +0.68%
Hedge Funds -0.36%
Bond Funds -0.41%
Protected Funds -0.56%
Money Market Funds -0.64%
Guaranteed Funds -1.11%
Top 5 fund sectors in terms of performance in October, with their average gain:
Equity India +11.62%
Equity China +11.57%
Equity Brazil +10.28%
Equity Indian Sub-Continent +10.17%
Equity Emerging Markets +9.25%
Bottom 5 fund sectors in terms of performance in October, with their average loss:
Equity Sector real Estate Europe -5.17%
Equity Japan -2.43%
Bond USD Short-Term -2.21%
Mixed Asset USD Flex -2.20%
Top 5 equity funds in October, with gain:
Celcius China Accelerated Growth +24.48
ABN Amro India Equity +16.01%
Parvest India +15.74%
DWS India Equity +14.32%
Fidelity Funds +13.45%
Bottom 5 equity funds in October, with loss:
Henderson European Property Securities -5.26%
Henderson HF Pan Euro Properties -5.07%
FTF Japan -4.68%
Franklin Templeton Japan -4.60%
Templeton Japan -4.48%
Investors still favour private equity assets for their higher growth, better governance structures, and diversification potential.
The recent focus on greenwashing has put bond issues under greater scrutiny. However, some market participants believe this risks paralysis by analysis.
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.