News

Large two-year jump in EM debt allocation, study shows

Allocations to emerging market bonds were surging before the Covid-19 crisis, analysis of fixed income markets shows. The finding, which shows how bond markets were evolving prior to the crisis, is taken from fund manager Invesco’s third annual ‘Global fixed income study’ covering 159 chief investment officers and asset owners around the world with $20 trillion (€18.4 trillion) of assets. Invesco found that 72% of investors had an allocation to emerging market debt versus 49% observed in the 2018 study. “Sixty-nine per cent of those invested in it have done so for returns, compared to just 25% of North American investors, who tend to see EMD [emerging market debt] as a diversifier,” said Nick Tolchard, head of Emea fixed income at Invesco. “Moreover, investors are no longer thinking of EMD as a monolithic asset class. We’re now seeing increased interest in specific markets, which we see as a long-term trend. It’s notable that Chinese fixed income in particular is one of the best performing asset classes this year, beaten only by US Treasuries.” Some of the other findings among respondents were:
  • 51% had concerns around bond market liquidity
  • 43% believed the end of the record-long economic cycle was a year or less away at the time of the survey
  • 54% said ESG analysis could unlock hidden value in fixed income
© 2020 funds global asia

Sponsored Profiles

Sponsored feature: Asset allocators – How do you track your decisions?

Apr 06, 2020

Mark Barry, Head of Asset Allocation at Milestone Group, explores how a simple question can highlight opportunities to automate and streamline your asset allocation investment process.

Sponsored feature: How is DLT changing the global securities services landscape?

Oct 17, 2019

By Jeslyn Tan, global head of product management, securities services, at Deutsche Bank

Sponsored feature: A new base for fund distribution

Oct 16, 2019

To get the most value out of the digitisation of investment fund distribution, a blockchain-based infrastructure is fundamental. By Olivier Portenseigne, Managing Director and Chief Commercial Officer, Fundsquare.

Sponsored profile: Bridging the gap

Mar 11, 2019

Private equity is a core part of the business for Caceis’ Hong Kong office, which looks after clients in China and Europe. David Li, chief executive officer, explains why private equity enjoys strong client demand and how it is being used to fund China’s international infrastructure ambitions.

Executive Interviews

Executive interview: ‘China is the 800-pound gorilla’

Aug 04, 2020

Just over a year into his new role, Wai-Kwong Seck, chief executive officer at Eastspring Investments, discusses his business goals, the Covid-19 pandemic and China.

Executive interview: Understanding geographies

Apr 06, 2020

Margaret Harwood-Jones, co-head financing and securities services at Standard Chartered, shares her insights on platform standardisation, opportunities in Asia and regulatory change to encourage...

Roundtables

Hong Kong roundtable: A ‘fragile Goldilocks situation’

Apr 06, 2020

With the global economy at a crossroads, our panel of experts share their thoughts on the market conditions, geopolitical volatility and growth opportunities. Chaired by Romil Patel in Hong Kong.

Singapore roundtable: A horizon to hold long-term assets

Dec 12, 2019

Panellists discuss the geopolitical fractures concerning asset owners, Singapore as a hub for fintech start-ups and why it makes sense to raise capital from a Variable Capital Company (VCC). Chaired by Romil Patel in Singapore.