American ambition and European opportunities
The underperformance of European equities compared to U.S. equities reached unprecedented levels in 2024. This divergence has widened the valuation gap between the United States and Europe. While the relative scarcity of tech companies listed in Europe is often cited as a reason, other explanations also account for this undervaluation.
Fund managers exploit Morningstar star rating system, reveals Harvard/MIT study
Fund managers often actively adjust their portfolios to achieve more favourable outcomes in Morningstar comparisons, according to researchers from Harvard and MIT. This strategy is said to lead to higher star ratings, enabling funds to justify higher fees, potentially at the expense of investor returns.
Blackrock’s climate alliance exit: Business as usual for investors
Blackrock’s withdrawal from the Net Zero Asset Managers (NZAM) initiative has sparked debate, but institutional investors remain largely unaffected.
Number of European ETFs surpasses 4.000
The number of ETFs listed on Euronext exchanges rose by 5 percent last year, exceeding 4.000, while the number of investment funds declined by the same percentage to just over 2.300. In the United States, the number of ETFs grew by approximately 15 percent in 2024, reaching 3.920.
Chart of the week: The Great Debasement
Scarce assets such as gold and bitcoin were among the best-performing investment categories of the past year. Yet, they received barely any attention in the endless series of (dull) outlooks from major investment banks and asset managers. Fortunately, there are always exceptions that prove the rule.
Morningstar: Robeco versus Veritas in global equities
The investment year 2024 has proven to be a successful one for investors in global equities. The Morningstar Global TME Index closed the year with an impressive gain of 25 percent.
Alumia partners with CIFC in alternative credit
Luxembourg-based investment advisory firm Alumia has announced a partnership with CIFC Asset Management, an alternative credit specialist headquartered in Miami.
The hunt for European asset managers has begun
With the acquisition of Axa Investment Managers by the French banking group BNP Paribas, the European asset management sector strengthens its position against “the Americans”. However, more is needed to halt the shift of managed assets from Europe to the United States.
Interest rates fall, but recovery remains elusive in China
China’s 10-year bond yield has recently dropped below 1.6 percent, a consequence of a weakening economy plagued by deflation. For the first time in 14 years, restrictive monetary policy has shifted towards a moderately expansionary stance. The goal: to support the economy and repair reputational damage.
Transfers: Carmignac, Waystone, Baloise, Edmond de Rothschild
This week’s overview of transfers and appointments in and around Luxembourg includes updates from Waystone, Carmignac, Baloise, Edmond de Rothschild, Bfinance, and Euroclear.