There is definite proof that sustainability-focused funds are outperforming their conventional counterparts. But some experts believe the traditional explanations for this are wrong.
S&P will however continue to offer its funds rating platform. It will buy back fund data from Morningstar for use in its global ratings system. A spokesman at the firm says the parent company, McGraw Hill, wanted to shed the ancillary collections business to allow it to focus on the ratings service.
S&PÆs offering to the funds industry includes ratings and research, indices, portfolio advisory services and investment research. It uses historical funds data as a screen for its fund rankings and research offering, but says the data isnÆt core to its business.
S&P says the sale wonÆt impact its staffing levels in Asia. Morningstar on the other hand acknowledges there will be overlap between its existing and acquired data businesses. ôIt is likely we will consolidate some offices over time,ö says a company spokesperson. MorningstarÆs largest office in the region is in Australia.
Despite this consolidation, however, the funds rating business in Asia has a new entrant: Trustnet, based in the United Kingdom, is opening an office in Hong Kong. TrustnetÆs prominent position in BritainÆs retail mutual-funds industry is based on its relationship with independent financial advisors (IFAs), which account for nearly 80% of fund sales.
In Asia, IFAs play a small role, accounting for no more than 10-15% in markets such as Hong Kong and Singapore, and less in other markets. But Trustnet has already signed up ING Financial Planning for Asia-Pacific business.
The companyÆs Analytics platform provides fund data and rankings based on factors including performance, alpha, beta and R-squared as well as information and Sharpe ratios.
Despite the small IFA market in Asia, Trustnet says there is still a business opportunity in the region. ôWe are already the main or sole provider of fund data to more than 70% of the UK funds management market,ö says James Jones, head of the companyÆs Asia-Pacific business. ôWe aim to help offshore fund management companies create new business opportunities as well as improve relationships with financial advisers.ö
Investors can still find spread premiums in niche private debt, with the asset class's prognosis looking strong, said a keynote speaker at AsianInvestor’s latest summit on Wednesday.
AsianInvestor details the second part of our marquee award winners for 2021, which includes the standout ESG adviser and also the asset manager of the year.
AsianInvestor reveals the first half of our marquee winners for this year's Asset Management awards, including best asset service provider and top alternative fund houses.
The number of millionaires in mainland China grew by 35% in 2020, while the number of millionaires in Hong Kong fell by 7%, according to a new report from the private bank.