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.
Luxembourg fund assets back at pre-Covid levels
Assets in Luxembourg-domiciled UCIs reached their highest level since January, according to figures published by the CSSF. Total assets rose by 1.72% to reach €4.7 trillion at the end of August.
This means assets in Luxembourg-domiciled funds have risen by €547 billion, or roughly 13%, since the end of March when they hit a multi-year low. Assets of US and global equity funds rose most in August, while assets in all bond funds except high-yield bond funds declined.
Transfers: Arendt Services, KPMG, EY partners, ABBL
Arendt Services
Benjamin Collette has been appointed new CEO of the business, accountancy and tax services department of Luxembourg-based law firm Arendt & Medernach. He specialises in strategy, regulatory and corporate finance.
Luxembourgers continue to shun investment funds
Despite the Grand Duchy’s status as Europe’s largest investment fund centre, Luxembourgers hold almost four times more money in bank deposits than in funds.
Transfers: Fundsquare, Luxembourg Stock Exchange, Intertrust
Fundsquare, a subsidiary of the Luxembourg Stock Exchange that provides services to support and standardise cross-border distribution of investment funds, has made two leadership appointments. It’s parent company the Luxembourg Stock Exchange has appointed a new head of sustainable finance, and Intertrust has a new head of its Luxembourg office.
Fundsquare named Jeffrey Nadal as its new managing director and chief commercial officer, and appointed Julien Renkin as a director of product management & client solutions.
Alfi asks for delay to sustainability disclosure rules
Alfi has asked the European Commission to delay the implementation of new rules on the disclosure of the sustainability of investments by 9 months to 1 January 2022.
According to the regulation on sustainability-related disclosures, which is supposed to come into force in March 2021, investors are required to publish information about the sustainability and climate risks of all their investments.
Dividend pay-outs fall by 22%
Dividend payments fell by a record 22% in the second quarter, hitting their lowest level in eight years, according to the latest Global Dividend Index from Janus Henderson Investors. Europe and the UK were the worst affected regions.
Back in May, the asset manager had already predicted a decline in dividend payments between 15% and 35%. Global dividend fell by $108.1 billion (€91.3 billion) to $382.2 billion in the second quarter.
Research: robo advisers yet to make breakthrough
The investment industry’s high expectations of robo advice and the use of blockchain technology have not yet been met. For now, robo advisers have failed to make a decisive breakthrough, according to research by the CFA Institute among more than 250 of its member organisations.
A substantial majority of these appear yet not to use big data analysis, machine learning or artificial intelligence in risk management, compliance or the investment process.