Investing

Efama chief Tanguy van de Werve highlights the urgent need for tax harmonisation to overcome fragmentation and create a competitive, unified European market.

Esma has proposed 11 October 2027 as the date for the European Union to adopt a T+1 securities settlement cycle, cutting the time between trade execution and settlement from two days to one.

Two months after Mario Draghi urged the creation of a unified European capital market, stock exchange operator Euronext has announced future plans that will likely be music to the former ECB chief’s ears.

The outperformance of private equity should be nuanced, says investment expert Jan Longeval. “But it offers an important advantage that is rarely highlighted.”

The American investment giant Goldman Sachs is closing its Belgian fund, Goldman Sachs (B) Invest. The last compartment will be transferred to a fund in Luxembourg through a cross-border merger.

Asset managers like Amundi and Schroders are increasingly positioning themselves in longer-dated European government bonds, betting on faster-than-expected rate cuts. Meanwhile, U.S. asset managers are taking a more cautious approach to European duration exposure, highlighting the divergence in market sentiment across the Atlantic.

While one active ETF after another enters the market, various Dutch banks have yet to add these to their offerings, and pension funds are still adopting a wait-and-see approach. The added value compared to other passive strategies has yet to be proven, particularly in the form of a track record.

The diversification advantage of bonds has been restored this year, as inflation has fallen and positive real interest rates have emerged. This is a relief, according to Flavio Carpenzano, Director of Investments at Capital Group, who still describes 2022 as a “worst-case scenario.”

Last weekend marked the second anniversary of the current bull market in equities. Since hitting its low point on October 12, 2022, the MSCI All Countries World Index has surged about 50 percent, the S&P 500 has risen by around 75 percent, and the Nasdaq has doubled. The driving force behind this impressive rally? The so-called “Magnificent Seven” stocks, which have nearly tripled in value over the same period.

Plans to increase Europe’s capital markets capacity hinge on giving retail investors access to private assets, but liquidity remains a sticking point. Evergreen funds, designed to offer investors some liquidity in otherwise illiquid assets, are being touted as a solution.