While Australia’s recent total-return performance has remained near the long-term average, these returns have been increasingly dependent on capital growth, and that capital growth has, in turn, been increasingly driven by yield compression.
As capital markets mature and expand globally, institutional investors of all stripes are requiring increasing levels of clarity and transparency before allocating capital. Money managers invariably have fiduciary obligations to investors, and must show they have practiced due diligence before allocating funds.
Like many parts of Asia, Japan holds pockets of opportunities driven by megatrends that can future-proof a portfolio. Investors can choose the winners in this market by identifying sectors backed by megatrends and supported by robust, resilient city fundamentals.
Dee Dee Sklar is Vice Chair of Subscription Finance, Asset-Backed Finance, Wells Fargo Securities.
Sentiment on the economy is declining, particularly in emerging markets, and more businesses are looking to the United States for opportunities, according to a McKinsey & Co’s Economic Conditions Snapshot, September 2018, a McKinsey global survey.
Highlights for developed countries and locations based on Savills’ Asia Pacific Investment Quarterly for second quarter 2018.
With increasing US interest rates, continuing trade war tensions, indications of an economic slowdown in China, and broad currency weakness, Asia Pacific property stocks struggled once again in September.