Asset Managers

Green bonds in developed markets often appear greener than their counterparts in emerging markets. But investors should read too much into this, according to Maxim Vydrine, manager of the Amundi Emerging Markets Green Bond Fund.

In a lot of funds investing in illiquid assets, such as property, daily dealing is likely to disappear. “The idea that you can have property in a fund you can buy or sell shares in on a daily basis has been exposed to be a lie.”

Despite some last-minute political tweaks, the Pan-European Personal Pension Product (PEPP) has the potential to do for pensions what UCITS has done for long-term investment. agreed an online panel assembled by Luxembourg For Finance. But patience is required.

The Netherlands’ NN Group announced on Monday it is reviewing “strategic options” for its asset management division, NN Investment Partners (NN IP). These include a sale, merger and listing.

The number of institutional investors implementing ESG criteria has risen by almost 20% in two years, and almost 9 in 10 fund selectors want to maintain or expand their ESG offering. This could easily turn into a bubble, Natixis Investment Managers has warned.

The US asset manager expects inflation to be slightly below 2% for developed economies over the next 10-15 years, despite the unprecedented fiscal and monetary stimulus. ‘We expect a lot of volatility in the short term, with inflation possibly temporarily exceeding central bank targets. But in the medium term, we will return to the pre-pandemic structural trends,’ says Vincent Juvyns, macro strategist at JP Morgan AM. 

Investment grade corporate bonds remain more attractive than core European government bonds, which are bound to deliver negative returns of 3-5% in the coming years, according to  Lion Trust Asset Management’s Head of Fixed Income David Roberts.

In an interview with Investment Officer, Roberts notes fixed income portfolios have become particularly sensitive to interest rates over the past decade due to a sharp increase in duration.

Management fee revenues by European asset managers climbed by 10% during the second half of 2020 thanks to an increase in assets under management and stronger fund inflows, according to research by Moody’s Investor Service.

Some predict technology will undermine the rationale behind the investment fund. Others see it driving greater sophistication, and a narrowing of the gap between the asset manager and the wealth manager. Yet the message is clear: although Luxembourg can congratulate itself on recording €5trn assets, it must be sufficiently agile to adapt.

Amundi has entered into exclusive negotiations with Société Générale for the acquisition of Lyxor for a total cash consideration of €825m, or €755m excluding excess capital, Amundi announced on its website on Wednesday.