Institutional investors cautious
Institutional investors ended 2016 on a cautious note, according to the latest State Street Investor Confidence Index.
The index, released by State Street Global Exchange, revealed a decline of 3.4 points to 94.2, largely driven by weaker sentiment in both Asia and North America.
There was a 6.7 point decrease in the Asian index to 109.1 along with the six point decline in the North American index.
This contrasted with the European index which rose 13.7 points from 86.4 to 100.
Commenting on the data, State Street's Kenneth Froot said the index had finished on a weak note as institutional investors continued to shy away from equities.
"Heading into 2017, investors are likely looking for greater clarity on their over-arching concerns regarding a Trump presidency and the hawkish tilt that accompanied the Fed's December rate hike," he said.
State Street's head of macro strategy, North America, Lee Ferridge said that while markets increasingly looked to be ‘priced for perfection' over the US economic outlook for 2017, it was interesting that institutional investors were more circumspect.
"Most noteworthy for me is the decline in the North American index even as US equities and the US dollar continues to rise," he said.
Recommended for you
Australia’s impact investing market has surged nearly eight-fold in just five years, climbing from $20 billion in value in 2020 to more than $157 billion, with much of the growth driven by green, social and sustainability (GSS) bonds.
The firm has forecast stronger global growth and higher inflation in 2026, signalling that central banks may be nearing the end of their easing cycles.
Despite ASIC’s scathing review of private credit funds, including concerns around valuation inconsistencies and mixed liquidity practices, the asset class grew 9 per cent in the last 12 months.
The fund has joined forces with Macquarie Asset Management in a USD500 million deal targeting infrastructure-linked businesses across global markets.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
211.16 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
121.06 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Smarter Money Long-Short Credit Investor USD
68.96 3 y p.a(%)
