Why do some firms automate processing of Asian equities but not fixed income?
Fixed income
The great rotation from fixed income to equities is yet to occur. But the future of the asset class is up for debate as the Federal Reserve looks to taper its QE programme.
The US bond manager has almost finished replacing and expanding its Singapore-based unit of portfolio managers and analysts.
Big fund houses have been scaling up their emerging market and corporate debt exposure, particularly in Asia, but note concerns about the scarcity of assets.
They doubt the Fed's third round of quantitative easing will drive inflows into the region's debt market or solve any of Asia's long-term economic problems.
After gaining traction in retail distribution in Japan, BlueBay Asset Management is looking at marketing fixed income funds to more high-net-worth investors in Asia ex-Japan.
Murray Collis has quit as head of Asia fixed income at First State Investments based in Hong Kong to pursue another job opportunity.
The former head of Asian fixed income at First State Investments, Murray Collis, is set to join US-based Standish Mellon Asset Management.
An overreliance upon institutional fixed income business fells Goldman Sachs Asset Management’s Korea ambitions, including a sub-advisory relationship with Tong Yang.
The Asian Development Bank does not see a bubble forming in the Asian local-currency bond markets, but Allianz Global Investors believes otherwise.
“I am well aware of the dangers of proclaiming the death of an asset class,” says James Montier at GMO, who does so anyway, advising higher cash holdings.
The withdrawal of investment banks as market-makers could cause problems if bond investors rush for the exits amid QE tapering, but BlueBay sees continued flows.
Indonesia and India face structural obstacles to economic growth from the double whammy of weaker currencies and high oil prices. Lack of fuel subsidy reform is holding both back.
