Opinion

As European skies darken with the storm clouds of geopolitical tensions, particularly the shadow cast by Russia’s war against Ukraine, a stark dilemma has emerged on the horizon for the continent’s asset managers. This quandary, deeply rooted in the ethos of sustainable investment principles, challenges the very fabric of Environmental, Social, and Governance (ESG) advocacy. The question that now looms large is whether investments in the defence industry can be harmonised with the steadfast commitment to sustainability.

Comparatively minimal macroeconomic news of substance emerges from China; however, the information that does reach me through Bloomberg and other outlets offers little cause for optimism. To illustrate the initial point: a decade ago, China’s National Bureau of Statistics released over 80,000 economic indicators; presently, this figure has dwindled to fewer than 10,000.

Chinese stocks are the opposite of US Big Tech stocks in almost every way. They are cheap, but nevertheless unloved.

Those looking to invest in emerging markets can even choose a variant of emerging markets ex-China these days. Consequently, global equity portfolios hardly contain any Chinese stocks anymore. This means that just a little bit of good news can cause a sharp price recovery. The time has come to include more Chinese equities in portfolios.

Ireland’s competitive tax policies and workforce have attracted numerous fund promoters, propelling the country to become the EU’s fastest-growing and second-largest fund domicile. Despite these impressive achievements, Ireland faces challenges in overtaking Luxembourg as the leading destination for funds.

In the ever-escalating tech tug-of-war between China and the United States, the dragon nation is unleashing a full-scale mobilization to propel its technological prowess forward. The gloves are off as the U.S. and its partners continue to throw up roadblocks, ushering in an era of deglobalization, at least on the political front.

On Tuesday the eight-day People’s Congress in China, an annual parliamentary gathering drawing thousands of delegates from across the nation, kicked off. Premier Li Qiang will address the congress, detailing targets for economic growth and military spending. This year holds added significance as it marks the 75th anniversary of the People’s Republic, prompting a reflection on its achievements.

Investors err in assessing stock returns. Prominent outliers attract undue attention and garner more interest than stocks with market-average returns. However, such stocks don’t necessarily make better investments; in fact, this strategy results in reduced returns for investors.

The market for Venture Capital (VC) experienced a challenging year. Rising interest rates and general uncertainty around valuations made it hard for funds to raise capital. In addition, the market is strongly segmented and therefore often not attractive for large investors. Despite these obstacles, there are ways to utilise the potential that is hidden here – with the help of experienced partners. 

This week, the UK Chancellor of the Exchequer will present the UK’s new budget. Since the September 2022 debacle, when Liz Truss and Kwasi Kwarteng’s bizarre tax plan almost brought the UK’s pension and insurance system to the brink of collapse, the extra attention has been justified. In the end, the Bank of England had to intervene to “save the furniture”, as the Belgians say. This earned Liz Truss the dubious honour of the shortest-serving prime minister.

The Grand Duchy of Luxembourg accounts for 36% of UCITS assets globally, indicating numerous advantages to domiciling an investment fund here. However, as the investment landscape evolves, its competitiveness is diminishing, particularly in comparison to jurisdictions such as Ireland.