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.
Morningstar will evaluate suitable product providers such as fund management companies and insurers as well as their products such as unit trusts, investment-linked insurance products, and exchange-traded funds seeking to be included under the CPFIS.
As of December 2007, the CPFÆs 3.16 million members had retirement assets worth S$136.59 billion ($96.72 billion). The CPF savings earn a minimum risk-free interest rate of 2.5%, which is guaranteed by the Singapore government.
Morningstar û a unit of US-based Morningstar Incorporated û was appointed because it received the highest overall rating based on its qualifications and expertise, track record and price of service, according to the CPF board. Morningstar has 18 offices worldwide and provides data on more than 260,000 investment offerings in total. It has strengthened its position as an investment consultant after acquiring the global funds data-collection business of Standard & PoorÆs last year.
MorningstarÆs appointment is considered by industry players as a major blow to Mercer which is the CPF boardÆs current investment consultant. Mercer was appointed to the role in 1999, and retained the appointment when it was next tendered in 2003. Mercer, a subsidiary of Marsh & McLennan in the US, has employees in more than 40 countries worldwide including Singapore, which is its regional headquarters in Asia-Pacific and where it has around 300 employees.
The CPF board notes that both Morningstar and Mercer assess funds based on qualitative and quantitative aspects of the management of the fund. It says evaluation factors for both are similar, with both reviewing the strength of fund management companies and insurance companies on an organisational level, investment capabilities and fund performance. However, the approaches to the evaluation arenÆt the same.
Mega players Nippon Life and Dai-ichi Life are looking for opportunities in higher-yield single-A US corporate bonds, which offer more appealing yields than stagnant domestic offerings.
The “lower for longer” monetary policy and stimulus packages, coupled with the rolling out of vaccine programmes favorably support real estate investing in the region, with offices and data centres presenting forward-looking opportunities.
As US fixed income default rates rose and yields fell during the pandemic, are Asian bonds, which have had more stable yields through 2020, looking more attractive?
Norway's Oil Fund welcome Chinese proposals improving transparency and shareholder protection; HK's MPF assets surge 35% year on year; Korea's NPS commits $100m to TPG consortium to invest in taxi-hailing app; Poba commits W270bn to European property; Malaysia's EPF sees investment income rise 59% year-on-year in first quarter, and more.