Lenneke Arts

Goldman Sachs Asset Management’s (GSAM) recent marketing of the Private Market Eltif demonstrates that the firm is keen to broaden the horizon for private investors. Giving the retail segment access to its 420 billion dollar alternatives-platform is not a mere experiment, but part of a “big, bold commitment,” according to Barry Fricke, GSAM’s Head of EMEA Alternatives Distribution Wealth Management. Goldman Sachs AM now wants to launch a new private market Eltif every year.

Family offices are looking to allocate more assets to fixed income in the coming years, as well as illiquid alternatives such as private equity (secondaries). About a third of wealthy families already invest in digital assets, even if it is usually a very small percentage.

This is according to an analysis of two surveys on the investment plans of family offices. Both Goldman Sachs and UBS recently published results on this.

Banks are keen to invest more in biodiversity but experience difficulties in finding suitable products. The concept of biodiversity is stretched and providers do not make sufficiently clear what goals they are pursuing and how these are measured. 

Sustainability regulations require asset managers and banks to take into account a number of factors on which they must also report. A large part of it deals with biodiversity, giving the topic great attention from banks and asset managers as well as from providers. 

Less than a month after the European parliament adopted its updated regulation for Eltifs - the European long-term investment funds - the new framework may be showing its first cracks. The lack of liquidity remains problematic, and that makes it unsuitable for private investors. 

Interest in renewables is playing into the hands of alternative investment funds. Listed closed-end impact funds continue to invest in new energy projects, and investor inflows are following suit. Yet for now it is mainly British investors who recognise the benefits.

Third-party assets in ABN Amro Investment Solutions’ funds and mandate solutions have been rising since October 2020, with 30 percent of assets under management now coming from clients other than ABN Amro. Meanwhile, the fund house is focusing on its latest solutions services.

A fortnight ago, Dutch private bank InsingerGilissen sold a pack of high yield bonds to increase its holdings in investment grade bonds. The bank does not rule out that it will do so again in early 2023. “If you expect risks, there will be a storm in the high yield segment as well,” chief investment officer Gerwin Wijnia told InvestmentOfficer.nl.

Even clients with the most defensive risk profile stand to lose more than -12 per cent at Dutch asset managers this year. “Defensive clients have 2008 experience in their portfolios. And according to many, we are not even at the exit yet.”

The private loan market is being revalued. Risks are becoming more expensive and coupons are shooting up. Positive for pension funds and insurers that stay put until maturity, but investors in this category also sometimes have distressed moments. 

While defensive equity strategies have provided protection during previous downturns, this year’s results have been disappointing in some cases. In particular, strategies with a quality growth style have done considerably worse than the market.