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 gained 3.45% on-average, contributing the bulk of the overall monthly return. Among equity funds, China and Greater China portfolios occupied the top spots of the performance table with average gains of 10.37% and 7.75%, respectively, while gold and precious metals was at the bottom with an average loss of 9.91%.
Bond funds and mixed-asset funds gained 0.11% on-average. Bond funds operated in an unfavourable market environment in April because investors switched capital from government bonds to equities on the perception that the worst of the credit crunch might have passed.
Islamic funds gained 1.93% on-average.
ôSeveral fundamental parameters such as US housing prices, the unemployment rate, wage growth, and food and natural resources prices suggest that the global investment climate remains challenging,ö says Eric Wong, head of Hong Kong research at Lipper. ôInvestors must remain vigilant and should avoid overweighting their portfolios in high volatility assets until these fundamental parameters have consistently improved.ö
Malaysian stocks generally are still relatively inexpensive despite having recovered nearly 10% of their value since mid-March. However, the future of Prime Minister Abdullah Ahmad Badawi and the continuity of government policies remain uncertain, Wong notes.
ôThese political factors may restrain the performance of the equity market in Malaysia in the near term,ö he says.
Average performance of fund groups registered for sale in Malaysia in April, by asset type:
Money Market Funds +0.22%
Bond Funds +0.11%
Protected Funds +0.56%
Guaranteed Funds +0.94%
Mixed-Asset Funds +2.18%
Equity Funds +3.45%
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.