JP Morgan AM: US equities make way for Europe and EM
The American exceptionalism will finally make way for outperformance of European and EM equities, according to JP Morgan AM’s annual long-term capital market assumptions.
Covid-19 vaccine: has the value rotation arrived?
Pfizer’s coronavirus vaccine that sent global stock markets higher on Monday prompted double digit gains in value stocks while growth companies saw their share prices tumble. Is this the long-awaited rotation to value?
Asset managers: neck and neck election race ‘worst possible outcome’
The too-close-to-call race in the US presidential elections is the worst possible outcome for investors as it will make it difficult to implement an effective stimulus package for the economy, according to asset managers.
We should bear in mind the persisting uncertainty around the elections will not only affect financial markets, says Kristina Hooper, chief global market strategist at Invesco. ‘Our main concern is social unrest. If this scenario unfolds, I would not be surprised to see a sell-off in more risky assets.’
‘Biden victory will lead to value rotation’
A victory of Joe Biden in the US presidential election will bring an end to the dominance Wall Street growth stocks in favour of cheaper cyclical stocks, according to UBS AM.
Sustainable fund inflows continue rise
European sustainable funds attracted inflows of €52.6 billion in the third quarter of 2020, bringing total assets in sustainable funds to €882 billion according to figures from Morningstar.
Net inflows were slightly down from the €55.5 billion in the second quarter, but represented a bigger share (40%) of overall European fund flows. The strong inflows were driven by continued investor interest in environmental, social, and governance issues, intensified in the wake of the coronavirus pandemic, as well as the expansion of the sustainable fund universe.
Alfi - Lack of data main challenge for SFDR implementation
The lack of available data on company-level will be the main challenge for asset managers to deal with after the regulation for sustainability‐related disclosures in the financial services sector, better known as SFDR, comes into force in March next year, according to Alfi’s Nathalie Dogniez (picture).
Trump speeds up war on ESG
The US government wants to push a law through Congress that will make it more difficult for pension funds and fiduciary managers to allocate assets to ESG-driven funds or investments. The plan has sparked the ire of the asset management sector.
CSSF urges full return to teleworking
The CSSF is urging all financial sector workers to again work from home wherever possible. The new guidance comes after the Luxembourg government announced new restrictions to limit the spread of Covid-19 on Friday.
‘We are facing an unprecedented upsurge in coronavirus infections whose consequences cannot be measured at this stage’, the CSSF said in a press release. ‘The government indicated that the situation gives cause for concern during its press conference.’
Covid-19 major setback for SDGs
The Sustainable Development Goals (SDG’s) are guiding the investment process of an increasing number of strategies and funds. But Covid-19 has negatively impacted most of the SDGs.
According to a recent study by M&G, Covid-19 has significantly slowed global progress towards the 17 UN Sustainable Development Goals (SDSs), five years after their launch.
Negative-yielding bonds approach record
The total volume of negative-yielding bonds is fast approaching the record set in early 2019. This will be a determining factor for the markets in the coming months.
The rise in negative-yielding bonds receives little attention these days as investors focus on Brexit and the US presidential elections, as the US presidential elections are likely to be decided in court. This is due to the fact that Trump will contest the result if he loses. So we’re up for a challenging couple of weeks.