Hong Kong investors shift from equity to bond funds to escape rising market uncertainties
City’s investment fund industry chief says mainland economic slowdown, Brexit and fear over a rise in US interest rates have left investors worried
Fixed income funds have become the biggest winners this year, as investors shift their investments from equity funds to bond funds to escape rising market uncertainties, according to the latest figures from the Hong Kong investment fund industry’s representative body.
Gross bond fund sales in the first eight months of this year stood at US$23.37 billion, more than double the income of equity funds (US$11.72 billion) during the period.
Balanced fund sales, which invest in both equity and bonds funds, totalled US$66.96 billion.
Arthur Bacci, the newly appointed chairman of the Hong Kong Investment Funds Association, which compiles the figures, said three economic uncertainties – China’s economic slowdown, Britain’s vote to leave the EU, and fear over a rise in US interest rates – have left Hong Kong investors worried.
We have seen many investors shift from equity funds to fixed income funds this year due to those and other uncertainties hanging over the investment market
“We have seen many investors shift from equity funds to fixed income funds this year due to those and other uncertainties hanging over the investment market,” Bacci said in an interview with the South China Morning Post.