• Continuous stock market volatility through the month of February took its toll; Spanish managers slashed their aggregate equity exposure by more than 2 percentage points.  
• On the other hand, the aggregate average allocation to bonds was increased from 36.39% to 38.50%. This represented the highest reading since March 2007.  
• However, the average allocation to bonds should not increase much further in the short term, since only 8% of the panel–down from 29% in January–was planning to increase exposure to this asset class over the next three months.  
• A majority of participants believed that Eurozone stocks were oversold–a shift in opinion from a month earlier, when they were fairly valued. This stood in sharp contrast with the opinion on U.S. stocks.  
• Regarding market sectors, Spanish managers turned more positive on resources and basic industries.

• Equity closed-end funds (CEFs) (+2.04%) returned to their winning ways, while fixed income CEFs posted their fourth consecutive month of plus-side returns, rising 1.03% on a NAV basis. 
• All equity and fixed income CEF classifications were in the black for February, with Domestic Equity CEFs (+2.78%) and Municipal Bond Funds (+1.32%) leading their respective asset class.
• In the equity universe Real Estate Funds (+3.84%) took home the gold, while on the fixed income side Florida Municipal Debt Funds (+1.88%) took the top podium position for the month.
• For February 92% of all CEFs posted returns in the black, with 90% of equity CEFs and 93% of fixed income CEFs posting positive returns.
• The exchange-rate sensitive World Equity Funds (+0.88%) macro-group lagged its counterparts, with the Developed Markets Funds (+0.19%) classification pulling down the average.
• For February the median discount of all CEFs narrowed 92 basis points (bps) to 3.95%. High Current Yield Funds witnessed the largest narrowing of discounts.

• The FTSE Bursa Malaysia KLCI was down 1.07% for the month of January,but it outperformed both its ASEAN neighbors Singapore and Thailand during the month.
• The average return for all types of funds was minus 1.19% - the first overall negative return since March 2009.
• The equity fund group lost an average of 3.62% for the month of January, while mixed asset funds lost 1.94% on average.
• Equity Malaysia Small- & Mid-Cap funds returned 1.62% on average, surprising during a month of significantly reduced risk appetite, given the group's traditionally higher volatility.
• Over the three-year period Target Maturity Funds were the best performer, returning an average of 28.75% and significantly outperforming equities, which returned an average of 6.91% over the same period.
  

• The SET Index was down 5.17% for the month of January, outperforming only Singapore within the ASEAN region.
• Four equity funds and one mixed-asset fund were launched during the month, with one investing in the diversified Latin American region, and another being a Hong Kong equity fund.
• The best performing fund group for the month was the bond fund group, returning minus 0.21% on average.
• On a year-on-year basis, all LGCs turned in positive performance. The Equity Thailand LGC returned 52.60% during this period.
  

• Well into the recent stock market correction Spanish managers increased slightly their average aggregate exposure to equities—from 41.12% to 41.59%.
• The aggregate exposure to bonds was also increased slightly—to 36.39% from 35.59%—staying around summer 2008 levels.
• On the other hand, fund managers reduced the average allocation to cash by more than 1.0 percentage point to 18.92%. This was the lowest reading since June 2008.
• A majority of participants remained overweighted in Eurozone stocks, and more managers were overweighted in North American equities.
• Regarding market sectors, Spanish managers turned more negative on banks; fewer managers were overweighted in the banks & other financials sector, and 31% of the panel were planning to decrease their exposure, compared to just 15% in December.

• 香港認可買賣基金1月平均下跌3.16%。

• 除了債券基金(+0.18%) 和保證基金(+ 0.11%) 錄得正回報，其他所有資産類別的基金組在當月都錄得平均負回報。

• 商品基金平均下跌6.79%，遜於其他類別的基金。

• 股票基金1月平均下跌4.42%，表現排在倒數第二位。

• 混合型基金當月平均虧損2.86%。

• 環球股市自1月中旬開始遭遇大幅修正。迄今為止，這一波的向下回調已經令環球股市呈現超賣和價值被低估。

• 鑑於環球信貸違約率預計在2011年1月前將降至3%，公司債和高收益債券的投資前景依然正面。

• 歐元區PIIGS國家(指葡萄牙、意大利、愛爾蘭、希臘和西班牙)的主權債務危機正指引著當前環球金融市場走向。鑒於目前全球經濟的基本面情況要比2008年第三季之時強勁堅穩了許多，令當前有更多的資源可供調動，來應付這些債務問題，從而可以觸發環球金融市場新一輪的上升趨勢。

• 對於投資者而言，當前的這場主權債務危機可以被視為一個良好的投資機會，將資金配置於商品和股市等高波動性資産。

• Funds authorized for sale in Hong Kong fell 3.16% on average for January.

• Apart from bond funds (up 0.18% on average) and guaranteed funds (up 0.11% on average), all other fund groups by asset type incurred losses on average for the month.

• Commodities funds, incurring a loss of 6.79% on average, underperformed all other types of funds.

• Equity funds, posting a negative return of 4.42% on average, came in second from last on the performance league table, while mixed-asset funds fell 2.86% on average for the month. 

• Global equity markets have registered a significant correction since mid-January, which has now rendered them oversold and undervalued.

• With the global credit default rate anticipated to decline to 3.0% by January 2011, the investment outlook for corporate and high-yield bonds remains positive.

• The sovereign debt crisis in the PIIGS countries looks set to dictate the direction of the financial markets for the time being. With the global fundamentals picture now considerably much stronger than it was in 3Q2008, there are more resources available to tackle the issue, which could then ignite another round of rally in the global financial markets.

• As such, this sovereign debt crisis provides investors another good opportunity to place their capital in high-volatility assets such as commodities and equities.

• 香港強積金1月平均下跌3.25%，打破了強積金有望自2009年3月以來連續11個月錄得平均正回報的希望。

• 除了債券強積金(+0.46%)和貨幣市場強積金(+0.02%)以外，其他資産類別的強積金都在1月報出平均負回報。

• 股票強積金當月平均下跌5.67%，表現遜於其他所有類別的強積金，這是2009年8月以來首見。

• 混合型強積金1月則平均下跌2.95%。

• 鑑於環球信貸違約率預計在2011年1月前將降至3%，公司債和高收益債券的投資前景依然正面。

• 歐元區PIIGS國家(指葡萄牙、意大利、愛爾蘭、希臘和西班牙)的主權債務危機正指引著當前環球金融市場走向。鑒於目前全球經濟的基本面情況要比2008年第三季之時強勁堅穩了許多，令當前有更多的資源可供調動，來應付這些債務問題，從而可以觸發環球金融市場新一輪的上升趨勢。

• 對於投資者而言，當前的這場主權債務危機可以被視為一個良好的投資機會，將資金配置於商品和股市等高波動性資産。

• Hong Kong MPFs lost 3.25% on average for January, terminating their chance to record a gain for an eleventh consecutive month (since March 2009).

• Apart from bond MPFs (up 0.46% on average) and money market MPFs (up 0.02% on average), all other asset-type fund groups incurred losses for the month.

• Equity MPFs, incurring a negative return of 5.67% on average, underperformed all other types of MPFs for the first time since August 2009, while mixed-asset MPFs fell 2.95% on average for January.

• Global equity markets have registered a significant correction since mid-January, which has now rendered them oversold and undervalued.

• With the global credit default rate anticipated to decline to 3.0% by January 2011, the investment outlook for corporate and high-yield bonds remains positive.

• The sovereign debt crisis in the PIIGS countries looks set to dictate the direction of the financial markets for the time being. With the global fundamentals picture now considerably much stronger than it was in 3Q2008, there are more resources available to tackle the issue, which could then ignite another round of rally in the global financial markets.

• As such, this sovereign debt crisis provides investors another good opportunity to place their capital in high-volatility assets such as commodities and equities.

• For the first month in three equity closed-end funds (CEFs) (-2.70%) were in the red, while their fixed income CEF brethren managed to keep their three-month winning streak alive, rising 1.20% on a NAV basis. 

• All fixed income CEF classifications were in the black for January, with domestic taxable fixed income funds (+2.17%) outpacing Municipal Bond Funds (+0.75%) and World Bond Funds (+0.60%).

• Income & Preferred Stock Funds (+0.91%) was the only equity classification posting a plus-side return for January.

• For the month 68% of all CEFs posted returns in the black, with just 18% of equity CEFs and 95% of fixed income CEFs posting positive returns.

• Lower-quality issues rose to the top of the fixed income universe, with High Current Yield Funds (+2.74%) and Loan Participation Funds (+2.53%) leading the way. 

• In January the median discount of all CEFs narrowed 31 basis points (bps) to 4.87%. World Income Funds witnessed the largest narrowing of discounts of all the macro-groups.