POWERED BY MOMENTUM MEDIA
Debt worries rattle investor confidence
Ongoing concerns about government debt in the United States and Europe has led to a slight drop in institutional investor confidence during April.
The State Street Investor Confidence Index dropped from 97.3 to 97.0 due to the falling confidence of North American investors, who posted a decline of 3.9 points down to 98.4.
Other regions were more upbeat, with Europe posting an increased confidence rating of 73.2, up from 66.9 from March.
Harvard University professor Kenneth Froot, who helped design the index, said it showed that institutional investors have shifted into a neutral risk gear.
“Recent signals suggesting that US growth expectations for the first quarter may be trimmed, coupled with ongoing concerns about the resolution of fiscal deficits in both the US and Europe, have dampened enthusiasm for further equity risk allocations,” Froot said.
Meanwhile, he said inflows into emerging markets have tapered off to a degree from the robust levels seen over recent months.
“Though flows into emerging markets, particularly emerging Asia, remain positive, they are no longer sufficient to outweigh the modest but persistent selling of developed markets equities that we have observed,” he said.
AUTHOR
Ashleigh McIntyre
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
