Singapore fund managers upbeat about Asia financial market in 2023 driven by China’s recovery

The Investment Management Association of Singapore, IMAS, has published the findings from its recent annual survey conducted among fund managers and major fund management companies in Singapore on the outlook of the industry in 2023.
In summary, Singapore fund managers expect a major economic recovery of the People’s Republic of China, but a continuing global recession with high levels of inflation and uncertain economic outlooks. As local governments are fighting such inflation and hence increasing their interest rates, most managers expect fixed-income fund issues to pick-up during the year. Similarly, ESG funds issues are also expected to grow as the interest of investors and governments alike continues to rise, particularly in view of the objective to become carbon-neutral by 2050.
Some other key findings from the survey are noted below:
– 62% of all fund managers expressed their interest to further develop business lines around ESG and sustainable finance;
– most fund managers name the following key threats to the implementation of sustainable finance: the lack of data availability of issuers, the lack of data standardization in this context, and (the change of) complex regulations;
– most fund managers (65%) consider regulatory changes to majorly impact their operation in 2023 in terms of compliance and operating costs; and
– 82% of all fund managers believe that the uncertain economic outlook keeps investors from investing in fund shares.
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For all findings outlined by IMAS, please refer to the original document and the accompanying information graphic.