Asset Managers

The idea that economic growth is a problem is seriously outdated, according to University of Ghent philosopher Maarten Boudry (photo), He called divestment “nonsense” and advised investors to be wary of “green” funds. “There is a lot of irrationality in these so-called ethical investment choices”, he said.

“Never waste a good crisis” is an English expression that you can safely leave to the French and Italians. In the political “no man’s land of Christmas”, and moreover shortly after Angela Merkel stepped down as Chancellor and on the eve of the French Presidency of the European Council, President Emmanuel Macron and Prime Minister Mario Draghi chose their moment.

They fired a targeted flare into the dark December night over the European Union.

European wealth reached unprecedented levels last year and is increasingly concentrated among families whose capital returns continue to outpace flagging economic growth during the pandemic, said a new report by a Zurich-based think tank. Luxembourg, the Netherlands and Belgium emerged as countries with the highest density of millionaires in the EU.

Luxembourg is ranked third in the eurozone for securitisation business, and this is set for a boost when a long-awaited reform of the law is passed, hopefully in the first half of this year.

“Although we are number twelve in the world in order of assets under management, we are a relatively unknown player. Come to think of it, we’re probably the biggest asset manager people have never heard of,” said Simon England-Brammer (pictured), senior managing director EMEA and APAC of Nuveen. 

As in the sovereign and corporate bond markets, private debt valuations have risen sharply. “However, by focusing on the lower end of the middle market, we have been able to maintain spreads,” said  David Bouchoucha, CIO of Private Debt and Real Assets at BNP Paribas Asset Management, in conversation with Fondsnieuws, Investment Officer Luxembourg’s sister publication.

In its outlook for 2022, JP Morgan Asset Management makes no bones about the fact that equities remain attractive, even if inflation sticks around a bit longer than expected. In times of inflation and negative real interest rates, equities have almost never given a negative return in the past, according to JP Morgan’s outlook with chief strategist Vincent Juvyns (photo).

It was the week of the central banks. The Bank of England raised interest rates by 15 basis points, the US Fed hinted at three rate hikes and a reduction in the buy-back programme. What exactly the ECB is aiming for is not entirely clear to market analysts. One thing is clear: a rate hike is the ultimum remedium for the central bank of President Christine Lagarde. 

The yield curves on the global bond markets flattened dramatically during the second half of October. When flattening is followed by inversion of the yield curves, a recession is inevitable. This ominous development is causing concern in the market, but are the concerns justified?

The business outlook for next year is characterised by concerns about inflation. Is it a temporary phenomenon linked to problems in the supply chain as consumer demand has picked up again this year? Or is it permanent? Central bankers are considering their usual anti-inflation tool, interest rate hikes and the removal of public measures to stimulate the economy. According to US economist Robert Reich, the real problem is more a matter of regulatory failure in the area of competition law.