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
With the Federal Reserve doing everything it can to prevent the lack of credit from triggering a recession û even though many analysts believe a recession is already underway û US equity funds received strong inflows last week.
All other major equity fund groups posted outflows last week, however, as did emerging markets, global, high yield and US bond funds.
Commodity sector funds, emerging market local currency bond funds, Russia equity funds and Brazil equity funds all absorbed fresh money as investors again looked for hedges to offset a dollar which hit a record low versus the euro during the third week of March.
But investors appeared to be taking profits in commodity funds towards the end of last week.
ôWhile commodity funds had inflows for the week as a whole, our daily fund flow data shows investor outflows from commodity funds on March 18 and again on the March 20, consistent with the sharp sell-off in everything from precious metals to agricultural commodities starting mid-week,ö says Brad Durham, managing director at EPFR Global.
Sentiment towards Europe remains sour, with investors redeeming $3 billion out of Europe equity funds and pulling over $2 billion out of global equity funds which have on average a 40% exposure to the region. Withdrawals from emerging Europe regional funds were also the main reason that Europe, Middle East and Asia (EMEA) equity funds posted outflows for the week.
For the second week running most emerging markets suffered as investors worried about the impact of dollar weakness on export competitiveness, although the commodities story softened the blow for Latin America and EMEA Equity Funds. Asia ex-Japan Funds were hit hardest, posting outflows of $1.2 billion for the week as performance was off 7.6%. Investors also pulled $363 million out of the diversified global emerging markets funds.
Year-to-date investors have removed over $11 billion from Asia ex-Japan equity funds, with some $5 billion of that total pulled out of China and Greater China funds. But Taiwan country funds posted their eighth straight week of inflows on expectations that an opposition victory in the presidential elections will set the stage for a thaw in relations with China.
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.