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 produced strong gains last year amid intensifying risk exposure, with pure equity funds and mixed-asset funds posting average returns of 33.72% and 22.19%, respectively.
Due to low domestic interest rates and the fallout from US subprime credit woes, bond and money-market funds posted losses of 4.31% and 3.60%, respectively.
On the local front, the rebound of the Thai SET index in the last week of 2007 helped funds investing mainly in equities post returns. The average returns of equity funds and mixed-asset funds in December were up 0.73% and 0.56%, respectively, far better than for the month before. Low-risk funds such as bond and money-market funds posted returns last month of 0.29% and 0.27%, respectively.
The Stock Exchange of Thailand ended 2007 with a 26.22% gain, a sharp turnaround from a 4.71% loss in 2006 when it was among the worst performing markets in the region.
Average 2007 performance of fund groups registered for sale in Thailand, by asset types:
Mixed Assets +22.19%
Money Market +03.6%
Top 5 fund sectors in terms of performance in 2007, with their average gain:
Equity Thailand +36.53%
Mixed Asset THB Flexible +25.18%
Equity Sector Gold and Precious Metals +24.61%
Mixed Asset Other Aggressive +24.47%
Equity Emerging Markets Global +22.70
Bottom 5 fund sectors in terms of performance in 2007, with their average loss/gain:
Equity Japan -11.70%
Equity Europe -2.86%
Bond Asia-Pacific +1.2%
Bond Global +3.35%
Money Market THB +3.58%
Kwap property arm appoints CEO; VFMC names new CEO as Lisa Gray retires; MSIG Singapore promotes Mack Eng as CEO; Monroe Capital opens first Asia office in Seoul, hires head from Aberdeen; Vanguard Australia appoints new MD to relocate from US; HSBC AM expands EM debt team; Vantage FX hires from CGS-CIMB in Singapore; and more.
Financials and healthcare have been spotted as promising sectors, while several tech IPOs are on the way, including a $2.2 billion fintech firm and a GIC-backed e-commerce startup.
A strong recovery in the Asia Pacific private capital markets in 2021 sets up favourable hiring and compensation trends.
The $95 billion Korean savings will set up a separately managed account for real estate debt investment early next year in order to shorten decision-making and help it win deals in a crowded market.