Malaysia is set to overtake the Middle East as the global hub for Islamic investments in terms of assets under management. What can Gulf countries do to counter this trend?
Jackie Horne
Malaysian asset managers' share of global sharia-compliant funds could overtake that of firms based in Saudi Arabia, according to AsianInvestor's annual ranking this year.
Regional investment heads at DBS and Lombard Odier say emerging markets are a better bet amid heightened political risk and uncompelling valuations in developed Europe.
In the second of two articles on the impact of Europe's incoming Mifid II rules, which will affect how fund managers pay for research, bank teams are seen to be under threat.
First State Stewart Asia has changed its approach to paying for research, in an early indication that asset managers in the region will not be immune from looming EU rules.
More and more institutions are entering the mainland debt market and a trading pattern is emerging, as the Bond Connect scheme and wider index inclusion loom closer.
Commodity prices are bouncing back, but will Asian asset owners now embrace an asset class they have long shunned? And is this the start of a new bull cycle, or a temporary rally?
Spreads are at historically tight levels, but portfolio managers believe asset allocators would be unwise to throw in the towel just yet.
However, they say Asian bond markets in general are likely to weather the rising trade tensions with the US better than many expect.
With President Donald Trump expected to impose import taxes and raise tariffs, equity experts recommend companies and sectors to buy in the region – and some to avoid.
Watch out for a rising dollar, say fixed income fund managers, who believe the second half of 2017 will drive performance of debt in certain markets, in a reversal of what happened last year.
Being flexible and selective will be key to success in fixed income investment this year, say debt specialists. They tip high yield and, later in the year, emerging-market debt to do well.
