Asset Managers

Just a few weeks after the UN climate conference COP26 in Glasgow, one of the European Commission’s most important initiatives in recent years is under fire: the “EU Taxonomy”. The reason is a number of EU Member States that want to admit natural gas - and even nuclear energy - to the list of green energy sources. Europe suddenly risks becoming “the laggard of the world”, critics have warned.

Qontigo has already built more than ten thousand indices, commissioned by asset owners such as APG and Willis Towers Watson and asset managers such as BlackRock. Institutional investors increasingly want a customised index that is in line with their own investment objectives, according to Arun Singhal of Qontigo.

Investors have a greater need for insight, transparency and control, he explained. “That’s what “we” have in everyday life too. So why not about our investments?”

Hugo Lasat has been officially appointed as the new CEO of Degroof Petercam, succeeding Bruno Colmant, who will focus on the private banking activities, thanks to a regulatory green light. With the appointment of Lasat, who led DPAM’s institutional activities for ten years, continuity is assured. The focus is on stronger branding and further internationalisation.

Invesco has announced the launch of a Bitcoin ETP (exchange-traded product) aimed at giving institutional investors a “straightforward and effective” exposure to the cryptocurrency. 

Invesco is a global independent management firm with a Luxembourg presence in Kirchberg, Invesco Management S.A.

During negotiations on the fee that asset managers charge institutional investors for the management of a mandate, providers give an average discount of 5 to 15%. However there is no transparency about the average price that providers actually charge for mandate management, explained Duncan Higgs and Kathryn Saklatvala, following the publication of their research into fund house fees last week.

“The world needs to be prepared for a debt crisis in emerging markets. Rising interest rates will draw capital away from vulnerable countries”, warned Kristalina Georgieva, director of the IMF. For the time being, not everyone feels moved by this warning, “emerging market debt is a paradise for active investors”, according to Wouter van Overfelt, senior portfolio manager EM debt at Vontobel, in an interview with Fondsnieuws, Investment Officer Luxembourg’s Dutch sister publication.

The exuberance in the equity markets is a little too much for the managers of JP Morgan’s €6 billion Global Macro Opportunities Fund. “This was the reason for the investors to increase the number of short positions in shares, via options on the S&P 500 and individual short positions in a few individual titles. We’ve reduced the risk”, said Nicola Rawlinson in an interview with Fondsnieuws, Investment Officer Luxembourg’s Dutch sister publication. 

The US-British asset manager Columbia Threadneedle thinks it can significantly strengthen its position in Europe after acquiring the EMEA asset management business of Canadian firm BMO Financial Group. It provides more scale, especially in Europe and it provides many complementary strategies and products. 

The warning that climate-related damage will be more difficult to insure is growing. A challenging time is coming for real estate investors, as their investment horizon becomes riskier.

Riccardo Lamanna has recently become the Luxembourg Country Head for State Street. He entered the position after spending more than 30 years in the business, having worked in Milan, London and Paris at various institutions, including JP Morgan, Paribas, the Intesa Sanpaolo Group and over the past 11 years, at State Street.