Euro rally exposes compounding risks in unhedged portfolios
European investors face steep losses as a falling dollar and surging euro squeeze returns on unhedged US assets, raising new questions about strategic currency exposure.
Chart of the week: a realistic look at bonds
I remain endlessly amazed by how traditional investors continue to cling to outdated assumptions and clichés. Just last week, another firm once again refused to honor a client’s strong desire to expand their limited mix of just two asset classes. For tactical reasons, I’ll refrain from sharing the usual fallacies used to justify this.
Morningstar: DWS vs. Flossbach von Storch in flexible allocation funds
Morningstar’s flexible allocation category includes a diverse group of funds with largely unconstrained mandates. These strategies typically have significant leeway to adjust weightings between equities and bonds and to incorporate alternative asset classes into the mix. Private markets have recently garnered more attention, and the rally in gold hasn’t gone unnoticed by investors either.
Transfers: Linklaters, M&G, Triodos, Flow, Goldman Sachs
This week’s overview of people transfers and appointments in and around Luxembourg includes updates from Linklaters, M&G Investments, Triodos Investment Management, Flow Traders and Goldman Sachs Asset Management.
Blackrock tops fund inflows in Q1 as Aberdeen and Eurizon retreat
European fund managers pulled in 161 billion euros in the first quarter of 2025, led by Blackrock and a surge in passive strategies.
ESG investing retreats in language, not in portfolios
ESG hasn’t disappeared. It is simply speaking a different language.
Belfius closes JP Morgan sub-fund due to performance and lack of interest
The investment fund Belfius Wealth is dissolving its sub-fund JP Morgan AM Convictions, citing “structurally low performance” and “lack of investor interest” as key reasons. Belfius is offering affected investors the option to transfer to a Blackrock sub-fund.
Safe havens in investment portfolios
The prospect of foreign investors reducing their exposure to U.S. assets due to concerns about the dominance of U.S. Treasuries as a safe haven is fueling discussions about the very concept of a safe haven. Significant shifts in correlations between various asset classes, particularly between U.S. equities and the dollar, are at the heart of this debate.
ETF investors lose faith in U.S. and turn to Europe
Investors are pulling out of U.S. equity ETFs en masse, while European trackers are experiencing a record inflow.
Morningstar: Candriam versus AXA in global high yield bonds
During the first quarter of 2025, the European Central Bank and the Bank of England cut rates as inflation fell, and markets reacted positively to an announced 1 trillion euro package for defense and infrastructure spending in Germany. Shorter-duration bonds outperformed longer-duration bonds—paving the way for high-yield fare, which typically has a shorter duration than investment-grade fare.