Asset Managers

Quietly, Luxembourg has built substantial fund investment access to the Chinese market. This was highlighted at the “Access Channels” roundtable at Luxembourg for Finance’s China Finance Forum 2021. With Chinese markets being some of the fastest growing in the world, little wonder the appeal to global asset managers of this market via the Luxembourg route is strong.

Renowned investor Michael Burry has taken a short position on Tesla and is aiming for an inflationary environment in the coming years.

“Avoid the extremes of the market: deep value stocks and expensive growth stocks. It is in the latter segment that the greatest danger lies, given the strong dominance of retail investors. Cathie Wood with its ARK ETFs is a perfect example of this. Good risk management is important in all areas of fund management. And, of course, sustainability criteria are crucial.”

Investors today should keep China in mind, according to US asset manager Capital Group. CEO Robert Lovelace (photo) and fund manager Christopher Thomsen, agree that understanding the country means looking into its past. China has has undergone a profound transformation, greatly increasing investment opportunities.

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.