ETFs could gain traction among institutional investors seeking flexibility to take quick tactical positions. But the instruments face potential new regulations in Hong Kong.
The difficult market conditions that the Covid-19 pandemic has created could accelerate an existing trend among asset owners: using passive funds to invest in mainstream assets.
The asset manager will reorganise its fixed income investment team in Asia after the departure of veteran Bryan Collins next month. His expertise will be missed, said Morningstar.
Moody’s and Fitch Ratings say that emerging market defaults are increasingly likely to hit record highs, with Asia-Pacific corporates looking particularly vulnerable.
Taiwan’s insurers have ploughed assets into the fixed-income products despite increasing risk charges and stricter investment rules. Cathay Life has been one of the most aggressive.
The development of COVID-19 raises three key issues: the efficacy of the global response, the path of the recovery, and the conservative behaviour of consumers after a pandemic. PineBridge Investments assesses how these factors could affect fixed income, equities, and alternatives markets.