Asset Managers

European regulators, especially those in Paris and Luxembourg, are at odds over the regulatory and technical standards for the updated European Long Term Investment Funds scheme, known as Eltif 2.0, according to people familiar with the discussions.

Predicting future interest rates is a favorite activity among economists and strategists, but Dimensional Fund Advisors takes a unique stance. “Forward rates are the best guide when positioning bond portfolios for higher expected returns,” they assert, dismissing the predictions of journalists and other ECB/Fed watchers.

Bonds are now recognised as a legitimate investment alternative, long overdue for acknowledgment. Peter De Coensel, CEO of Degroof Petercam Asset Management (DPAM) since 2021 and a seasoned bond market specialist, discusses this resurgence in value.

De Coensel highlights a dramatic shift in bond markets, noting a return to valuations not seen in nearly two decades, occurring in three distinct phases.

Funds For Good, in partnership with Banque de Luxembourg Investments, is broadening its range with two new impact-focused equity funds in the US and Europe.

Average fees paid to directors of investment funds in Luxembourg and Ireland are down significantly when compared to last year in what appears to be a reflection of a shift in the way that funds reimburse their directors, according to a new report issued on Monday.

European authorities are speeding up negotiations on the final text of the so-called Corporate Sustainability Due Diligence Directive (CSDDD, also known as the CS3D). Before the end of this year, the European Commission, the European Parliament and the European Council want to reach an agreement on it.

Ethenea has received approval from Luxembourg regulator CSSF to remove equities, precious metals and commodities from its Ethna-Defensiv multi-asset portfolio, transforming the fund into a pure bond strategy.

Of the 280 million euro in the fund, which had had a multi-asset portfolio since 2007, 14 percent is currently invested in European government bonds, 80.5 per cent in high-quality corporate bonds and 5 per cent in high-yield bonds.

Amidst the ongoing transition to a new pension system in the Netherlands, Dutch pension fund managers are finding little bandwidth these days to explore fresh investment ideas for the coming year. Against this backdrop, asset managers face hurdles in gaining their attention, with only essential risk management being the focal point for many.

Amundi, Europe’s biggest asset manager, has informed investors that it is moving seven of its ESG funds out of Luxembourg to consolidate them with new umbrella ESG funds that it has created in Ireland. The move is aimed to achieve “a greater degree of operational efficiency,” the Paris-based firm said.

Investors in Ucits investments funds like those based in Luxembourg are paying about 1/5 less in operational charges after a decade-long reduction in such fees, according to a report by ICI Global, an association representing regulated investment funds. “Asset managers are responding to investors tastes by developing products that investors want.”