The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
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%
Sunsuper and QSuper appoints CIO for combined entity; State Street appoints heads of HK and Taiwan; Nothern Trust rebuilds Apac team; Manulife IM names emerging markets fixed income CIO; RBC Wealth Management hires four into HK; Lombard Odier hires two senior equity managers; Allianz Global Investors appoints Asia hand as equity CIO; and more.
Investors from China and the US are expected to continue buying assets in each other’s markets despite the blacklist of Chinese firms with military and surveillance ties.
Stronger government actions are needed to meet the Paris Agreement goal of limiting global temperature rise to 1.5 degrees, investors such as Hesta and CDPQ signed in a statement.
AsianInvestor explains why we chose the winners of the second half of our 2021 fund manager winners, by major local markets.