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 7.10%, outperforming all other types of funds in October, just as they did in the previous month.
Among equity funds, portfolios that invested in Asia ex-Japan outperformed those that invested in Europe and the US. Equities funds that focus on Asia-Pacific, South Korea, China, and Hong Kong posted average returns of 17.23%, 16.49%, and 12.57%, respectively.
South Korea shares were boosted by reports of a strong domestic economy and favourable third quarter corporate earnings. Hong Kong shares were driven by abundant liquidity, although that market appears to have stalled due to concerns over in mainland China, particularly concerns over the increase in the reserve requirement ratio of banks and speculation that new measures to cool off the Chinese economy would be introduced.
Hong Kong established the MPF in December 2000. Monthly mandatory contributions from workers and employers are capped at HK$1,000 each.
Average October performance of MPF portfolios, by asset types:
Mixed Assets +4.38%
Money Market +0.32%
Top five MPF equity funds in October, with gain:
Taifook MPF Retirement Fd-Korea +20.92%
Taifook MPF retirement Fd-Asia Pacific +17.23%
Principal MPF 800-China Equity +16.49%
ING MPF T Compre S-HK Equity +16.19%
ING MPF M T Bas S-HK Equity +16.16%
Bottom five MPF equity funds in October, with loss:
Mass MPF Scheme Japan Equity -2.28%
BEA MPF Japan Growth Fund -1.50%
AIA-JF MPF Scheme Japan Equity -0.93%
AIA-JF Premium MPF Japan Equity -0.86%
Manulife Glo Select MPF S-Japan Equity -0.79%
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.
The fund's 29.6% returns marked its best ever and exceeded its reference portfolio, which has 80% allocated to equities, by 1.73%.