Investment Officer

A study of bear markets shows that in 70 percent of the cases stock markets fell back to a new low. In 30 percent there was a continuing recovery after a severe crash. We are probably experiencing the latter scenario now, according to BNP Paribas Fortis’ chief strategist Philippe Gijsels.

Gijsels says that the bank has been busy buying attractively priced shares and high yield bonds for clients for some time now. 

A Netflix-like environment that provides access to advice that is data-driven, personalized, continuous and preferrably subscription-based, is the future of wealth advice according to McKinsey.

Market volatility will increase as a result of a decline in share buybacks and lower earnings growth per share, warns Goldman Sachs.

David Kostin, who leads the business bank’s portfolio strategy team, writes in a note to the bank’s clients that the 51 listed companies in the S&P that have suspended their share buyback programmes account for no less than 27% of total S&P 500 share buybacks in 2019.

Stéphane Corsaletti is the new Chief Investment Officer of fund distribution platform Allfunds. The Frenchman will lead Allfunds’ recently formed digital investment solutions platform from its Luxembourg office.

Corsaletti will be part of the executive committee, reporting directly to CEO Juan Alcaraz. Launched in 2000, Allfunds is one of the world’s largest fund distributors. It offers clients access to a universe of over 125,000 funds through Allfunds Connect.

Credit markets have been hit hard across the board. ‘Exiting at normal prices is now virtually impossible because there is hardly any liquidity.’ Only ETFs can still be easily sold, resulting in dramatic price declines. Can the ECB’s latest support package restore calm?

March is not even halfway through, but has already presided over the largest fall in the price of European high-yield bonds since October 2008. The BofA European Currency High Yield Index is already in the minus 8% this month, but the unprecedented fall in prices also offers opportunities. Within Europe, I would now rather invest in Italy than the UK or Germany.

The decision of the US Federal Reserve to cut interest rates once more and restart QE was expected by investors. But not on a Sunday afternoon. Asset managers characterise the sudden decision as ‘a defining moment’, for more than one reason.

A 44.5% increase in premium income in Luxembourg’s insurance sector last year was driven mainly by Brexit relocations in the non-life sector. However the traditional mainstay for the industry, life insurance, also enjoyed a strong year with income up 18.6%.

The Fed’s rate cut was not the most clear-cut answer to the corona crisis, says Hendrik Tuch, head of fixed income at Aegon Asset Management. 
But he understands the decision.

Investors did not respond to the Fed’s surprise 50 basis points rate cut with a relief rally. To the contrary, markets closed almost 3% lower as investors interpreted the rate cut as a warning the macroeconomic situation is likely to worsen.
 
Fed president Jerome Powell stated shortly after Wall Street opened that the negative effects of the coronavirus are slowly becoming visible.