There is definite proof that sustainability-focused funds are outperforming their conventional counterparts. But some experts believe the traditional explanations for this are wrong.
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.
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.