Latest news with #capitalflows
Bloomberg
3 days ago
- Business
- Bloomberg
Ninety One's Kent on Blurring Lines Between EM and DM: EM Lens
Traditional safe havens are misbehaving as the once distinct boundaries between emerging and developed markets begins to blur. Peter Kent, Co-Head of Emerging Market Fixed Income at Ninety One, joins Bloomberg Intelligence Chief EM Fixed Income Strategist Damian Sassower to break down the risks and opportunities facing asset allocators across the globe. Kent and Sassower touch on global trade, supply shocks, capital flows, fiscal balances, investor positioning and currency volatility as the perceived safety of developed market debt is called into question.
Khaleej Times
3 days ago
- Business
- Khaleej Times
St. James's Place Middle East marks two years in Dubai
As the UAE continues its emergence as a global financial centre, the UK's largest financial advisory business and international wealth manager, St. James's Place has marked its second year in the emirate, predicting further growth as capital flows into the region. May marked the second anniversary since SJP Middle East obtained regulatory approval from the Dubai Financial Services Authority (DFSA) and established its base at the Dubai International Financial Centre (DIFC). Since establishing its base in Dubai, the firm has experienced rapid growth, driven by the need for individuals to manage complex international assets across borders, says partner Daniel George. The UK-headquartered firm, which manages over $258 billion for more than one million clients worldwide, has also benefited from the significant number of Britons relocating to the UAE in recent years, drawn by its thriving job market. "The UAE is clearly a hotspot for individuals looking for a high-growth, pro-business environment," says George. "We are seeing clients move to the UAE for different reasons. It is great that we can help internationally mobile individuals manage their wealth across borders and make the most of the opportunities this region affords." SJP expects further growth in the coming years as clients look to relocate to the UAE, attracted by its competitive tax landscape and attractive lifestyle. "We are extremely positive about the growth prospects for this region and continued economic growth across the UAE," George added.
Zawya
4 days ago
- Business
- Zawya
Africa's financial sovereignty: Mobilizing institutional capital for development and resilience
As global capital flows evolve and development assistance dwindles, Africa finds itself at a critical point. On 28 May, during the African Development Bank Group's 2025 Annual Meetings ( senior leaders, policymakers and financial experts gathered to chart a new course for the continent's financial future – one based on mobilizing and deploying African resources and ingenuity. Organized by the Bank Group's Resource Mobilization and Partnerships Department, in collaboration with the Bank's Making Finance Work for Africa initiative, this side event brought together leading African experts in a conversation moderated by Victor Oladokun, Senior Advisor to the President of the African Development Bank Group for Communication and Stakeholder Engagement. With a 10 percent decline in development assistance and a 12 percent drop in foreign direct investment to USD 40 billion {in what period, and what's the source of the data?}, the urgency of mobilizing domestic resources is pressing. The continent faces an annual infrastructure funding gap of between USD 68 billion and USD 108 billion, while attracting only 2 percent of global investment in this sector {Source?}. "The real question is not whether the capital exists – it does. The question is how to mobilize it on a large scale for productive, high-impact investments," said Solomon Quaynor, the African Development Bank Group's Vice-President for Private Sector, Infrastructure&Industrialization. He added, "Africa is not poor. Our institutional investors – pension funds, sovereign wealth funds, insurance companies, and even central banks – together manage more than USD 2.1 trillion in assets. If just 5 percent of these funds were directed towards infrastructure and the private sector, it would unlock more than USD 100 billion in long-term capital for the continent." Partnerships and innovation The event highlighted some innovative African-led models for mobilizing institutional capital. For example, InfraCredit Nigeria, a pioneering credit enhancement institution, has secured more than USD 300 million in long-term financing in local currency for infrastructure projects. "The real risk associated with infrastructure assets is often overestimated. We have not recorded any losses on a portfolio of more than 20 projects in 12 sectors in eight years," said Chinua Azubike, CEO of InfraCredit. Tafara Ethiopis, Vice President of the International Finance Corporation (IFC, the World Bank's private-sector arm) for Africa, emphasized the need to strengthen the bankability of projects through more effective risk-sharing mechanisms. "It is essential to calibrate the distribution of risks and benefits between the public and private sectors properly to make projects bankable," he said. Speakers also identified obstacles to mobilizing institutional capital and proposed solutions. Boitumelo Mosako, CEO of the Development Bank of Southern Africa (DBSA), highlighted the central role of good governance and rigorous project preparation in lowering risk and improving investor confidence. The Director General of Nigeria's Securities and Exchange Commission (SEC), Timi Agama, stressed the importance of building trust through regulatory reforms, investor protection and financial education. Denis Charles Kouassi, CEO of Côte d'Ivoire's National Social Security Fund, underscored the importance of aligning pension funds with national development priorities, saying, " All the income we generate is reinvested directly into the national economy to finance our services and boost growth." A call for collective action The Resource Mobilization and Partnerships Department of the African Development Bank Group is leading several initiatives aimed at mobilizing African institutional capital, including through instruments such as the Capital Markets Development Trust Fund, and strategic partnerships with regional and global stakeholders. 'Yes, we need governance and accountability. But as Africans, we also need to learn to trust each other,' said Mosako. "The moment calls for vision. It also calls for innovation. And above all, it calls for action,' Quaynor affirmed, in his concluding remarks. 'Let us pool our capital, our ideas, and our will, to build an Africa where infrastructure becomes a lever for prosperity, not a drag on it." Distributed by APO Group on behalf of African Development Bank Group (AfDB). To view photos from this session, click here ( About the African Development Bank Group: The African Development Bank Group is Africa's leading development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). Represented in 41 African countries, with an external office in Japan, the Bank contributes to the economic development and social progress of its 54 regional member countries. For more information:
Japan Times
11-07-2025
- Business
- Japan Times
Pimco sees Japan wooing capital as tariffs spur diversification
Japan has emerged as a prime destination for global investors as the trade war triggers a reassessment of capital flows into the U.S., according to Pacific Investment Management. The Asian nation is drawing inflows that seek to benefit from "once-in-a-generation structural reforms' in equities and rising rates in fixed income after decades of monetary stimulus, according to Ben Ferguson, co-head of Pimco in Japan. U.S. President Donald Trump's policy announcements have been "disruptive' and the latest tariff announcements "highlight the need to, at least consider diversification,' he added. "Japan historically has not been a focus as an investment opportunity for global investors, but this is one of the most dynamic moments that we've seen in this economy for the better part of the last three decades,' Ferguson, a former Goldman Sachs Group banker who joined Pimco in 2023, said in an interview. "Japan has moved toward the top of mind for global allocators.' A worldwide backlash against Trump's trade war is accelerating the hunt for alternatives to U.S. assets, and Japan — with its multi-trillion dollar bond and equity markets — has become a favored bet. Global funds have continued to scoop up Japanese assets after buying a record ¥9.16 trillion ($62.6 billion) of stocks and bonds in April, according to government data. There are, of course, risks to the outlook. The U.S. has slapped a 25% tariff on Japan's shipments that'll come into effect Aug. 1, with the nation also subject to a levy on cars and auto parts, as well as a tariff on steel and aluminum. As the deadline approaches, both Tokyo and Washington are facing growing pressure to strike a deal. "There's a rationale there, which is Japan geopolitically is one of the most — if not the most — important relationship to the United States,' said Ferguson, citing the U.S.' significant military presence in the country. "Both sides have an incentive to make sure that this specific trade issue does reach a resolution.' Pimco, which oversees more than $2 trillion, expects investors to plow more money into the world's third-biggest bond market as it's an "attractive investment diversification from a large Treasury allocation — especially when swapped into the dollar,' according to Ferguson. A degree of calm has returned to Japan's bond market after authorities trimmed sales of longer-dated debt to allay jitters sparked by the reduction of the central bank's purchases. A sale of 20-year government bonds proceeded smoothly on Thursday, with the bid-to-cover ratio for the offering rising to the highest level since March. "What we saw over the last few months may be the high end of the range of volatility in the market,' Ferguson said. "We think the relative value, particularly at the long end, is attractive.' At the asset management industry level, Ferguson is keen to tap into opportunities to help invest the more than $7 trillion of domestic savings accumulated by Japanese households, which is among the biggest pool of such capital in the world. If this stockpile of cash isn't recycled back into the economy, it may hamper corporations' ability to make fresh investments, weigh on productivity and hurt Japan's ambitions for sustainable price growth. "If you think about national resources on a global scale, Saudi Arabia has oil, Japan has savings,' Ferguson said. "You can be savings-rich, but if everyone else is outgrowing you and those savings aren't deployed to drive economic activity and growth, you actually end up becoming poorer. It's a headwind for the economy.'
Bloomberg
10-07-2025
- Business
- Bloomberg
Pimco Sees Japan Wooing Capital as Tariffs Spur Diversification
Japan has emerged as a prime destination for global investors as the trade war triggers a reassessment of capital flows into the US, according to Pacific Investment Management Co. The Asian nation is drawing inflows that seek to benefit from 'once-in-a-generation structural reforms ' in equities and rising rates in fixed income after decades of monetary stimulus, according to Ben Ferguson, co-head of Pimco in Japan. US President Donald Trump's policy announcements have been 'disruptive' and the latest tariff announcements 'highlight the need to, at least consider diversification,' he added.
