Asset Managers

This week’s overview of transfers, appointments, promotions and other people news includes updates from DWS and Candriam.

Luxembourg-headquartered asset manager Candriam on Wednesday announced the launch of a new alternative investments platform as a response to growing demand for diverse alternative investment solutions in today’s market environment.

In a world grappling with economic fragmentation, geopolitical tensions, and inflationary pressures, chief investment officers at Europe’s three largest asset managers – Amundi, DWS, and Schroders – see 2024 as a year poised for cautious optimism amid ongoing economic uncertainty. 

Market expectations of central bank interest rate cuts in 2024 are reasonable, according to Gilles Moëc, the Axa group chief economist and Axa IM head of research, who presented Axa’s outlook for next year in Luxembourg this week. He painted a relatively rosy picture for the US and, to a lesser extent, stagnating Europe, pointing to evidence that inflation is finally under control and that political troubles are not yet certain.

BlackRock, during the presentation of its 2024 Global Outlook at its New York headquarters, indicated that the Federal Reserve is unlikely to cut interest rates until the second half of next year, a scenario the market currently sees as highly improbable. This divergence in expectations set the stage for the event, titled “Context is Everything”, where the asset manager shared its strategic insights. 

After a previous setback, BlackRock is launching new target-date ETFs, aiming at the vast market of Americans without pension plans, a move seen as promising for the self-employed.

BlackRock is reviving its target-date fund ETF series with a fresh approach, targeting the trillion-dollar market of Americans lacking pension plans, nine years after its initial failure.

Raifs - Reserved Alternative Investment Funds - are becoming an increasingly popular way to structure Reifs - Real Estate Investment Funds - with Raifs constituting 31 percent of the funds recently surveyed. The growth comes at the expense of SIFs - Specialised Investment Funds - while the share of Sicavs remains stable.

The 17th edition of the real estate investment fund survey carried out by the Association of the Luxembourg Fund Industry, Alfi, was released this week.

Charlie Munger, Warren Buffett’s esteemed colleague at Berkshire Hathaway, passed away on Tuesday at 99, marking a significant moment in the history of corporate America and the investment world.

Berkshire Hathaway announced Munger’s peaceful passing at a California hospital. He was close to his centennial, residing in Los Angeles. Buffett, 93, credited Munger with a pivotal role in shaping Berkshire Hathaway, highlighting his involvement as fundamental to the company’s growth.

Registration levels of new Reserved Alternative Investment Funds have continued their recovery from the slowdowns in activity seen earlier this year. In October, a total of 35 new Raifs were created, according to Investment Officer’s analysis of the latest Raif registration date made available in mid-November by the Luxembourg Business Registers. 

Consolidation, regulatory risks, and the need to stay relevant to the target audience of investors and asset owners are considered as the topics that keep C-level asset managers awake at night. At the Efama conference in Brussels on Thursday, CEOs of five firms underlined the importance of adaptability, technological integration, and maintaining a clear company purpose.