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
The net inflows for emerging market funds were registered from July onwards, after the fallout from the US subprime mortage crisis. Prior to that emerging market funds were experiencing net outflows.
US, Europe and Japan funds suffered a net outflow of $56 billion in the first 10 months of this year.
With investors still unsure where the sub-prime bodies are buried, they also bailed out of financial and real estate sector funds. Doubts about the outlook for US, European and Japanese economic growth also weighed on energy and consumer goods sector funds.
Just last week, global emerging market equity funds posted the biggest net inflows, or $1.21 billion, of any major equity fund group for that week.
When it came to market-specific funds, investors moved towards the larger emerging economies.
ôInvestors globally have been gravitating to the sounder economic and fiscal story that emerging markets represents, but the ever-weakening dollar, if it turns into a destabilizing rout, could even damage the current rosy sentiment of investors towards emerging markets,ö says Massachusetts-based Brad Durham, managing director at EPFR Global.
Net inflows to Brazil, South Korea, China, Greater China and Russia country funds totalled $878 million while BRIC equity funds took a net of $480.6 million. Combined, that made up 56% of last weekÆs net inflows into all emerging markets funds, up from 30.5% the previous week.
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.