• Key market indices
    • S&P 500: 3841.95 -0.81%
    • DJIA: 31496.31 +1.82%
    • HSI: 29098.29 +0.41%
    • STI: 2,929.71 +2.20%
    • Gold Spot $/Oz: 1698.64 -1.96%
    • Brent Crude: 66.26 +7.69%
    • Bitcoin: 50,191.66 +9.32%
  • 85% of global institutional investors expect private markets to outperform public markets in the long term (Link)
    • 85% of global institutional investors expect private markets to outperform public markets in the long term, with 80% of respondents agreeing that these markets are less susceptible to volatility.
    • 86% of these investors believe that the continued spread of COVID-19, as well as issues with vaccine distribution, will have a major impact on private market strategies as we make headway into 2021.
    • The report is based on in-depth qualitative interviews and survey data collected from 110 institutional private markets investors in Asia, Europe and North America.
  • ESG funds are outperforming (mostly) (Link)
    • Morningstar's environmental, social and governance indexes are beating the market across most countries and categories - but also less so in the US.
    • In a recent report of its ESG-screened indexes, Morningstar claims that these indexes largely outperformed in 2020 and over the last five years, while also offering more downside protection.
    • The recent risk/return record of Morningstar's ESG indexes supports the view that sustainable investing need not entail a performance sacrifice.
  • Digital assets coming of age in Hong Kong (Link)
    • Hong Kong's Financial Services and Treasury Bureau (FSTB) and Securities and Commission (SFC) are paving the way for regulations that will allow security token offerings (STOs) as an alternative to traditional fund-raising channels.
    • A joint white paper by Deloitte, the University of Hong Kong Asian Institute of International Finance Law, the digital exchange HKbitEx, says their market surveys show that investors are interested in a number of asset classes by way of STOs, including traditionally illiquid assets, equities, and funds not currently in Hong Kong.
    • For investors, STOs bring alternative opportunities for portfolio diversification. They also enable investors with less capital to participate in the growth of large pre-IPO companies, an opportunity often reserved for institutions and high net worth individuals.
  • Playing a commodity boom with CTAs? (Link)
    • Since July, CTAs have greatly reweighted commodities from an overall -30% short of their net exposure to nearly +60% long today.
    • Softs represent the lion's share (+16%), followed by energy (+15%), base metals (+12%) and other minor segments (+12%). Precious metals are standing out at less than +3%.
    • An early-cycle stage out of the pandemic recession and world reflation policies are strong supports and macro tailwinds for commodities.Ample market liquidity, that is looking for allocation, will partly flow into commodities. Moreover,  as rates and inflation pick up, investors will look for protection naturally found in commodities.
    • Commodities are also enjoying fundamental tailwinds. They are facing a supply/demand deficit resulting from years of supply tightening since the financial crisis and more recently due to the trade war and the pandemic.
    • Finally, tailwinds from secular trends would also support demand and prices. A housing boom has started, especially in the U.S. Decarbonization and the rise of electric vehicles will fuel demand for some base metals. Prospects of surging infrastructure spending will be a boom for most cyclical commodities and construction materials.
  • Gemini launches full-suite of crypto fund services for fund managers (Link)
    • As interest in cryptocurrency skyrockets, crypto funds have become an increasingly attractive option for fund managers looking to add crypto exposure to their clients' portfolios.
    • Gemini's regulated and secure platform is custom-built for institutions, providing fund managers the ability to seamlessly offer crypto products to their clients while managing all of the underlying infrastructure in a single place.
  • Options partners with SGX to provide ultra-low latency offering in Singapore (Link)
    • Options, a provider of cloud-enabled managed services to global capital markets, has partnered with Singaporean Exchange (SGX) to provide ultra-low latency connectivity for order entry and market data.
    • Financial institutions will have access to both order entry and market data across all available SGX asset classes and cloud-first solutions within their global infrastructure, leveraging their access to the firm's wide range of specialist services via its fully resilient global trading backbone.

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