Justin Doornekamp

European investors continue to channel funds into sustainable investments, recognizing the enduring appeal of sustainable UCITS funds. In 2023 alone, an impressive one trillion euros flowed into European Article 8 and 9 funds. This trend is expected to attract more investors towards sustainable funds in the years ahead.

Sentiment around defence stocks appears to be on the upswing. Numerous investors previously avoided such investments, yet deglobalisation and geopolitical unrest have made the case for investing in defence more tenable.

ABP, the Netherlands’ largest pension fund managing over €500 billion in total assets, has revealed a comprehensive sustainable and responsible investment policy. The pension giant aims to invest €30 billion globally by 2030 in projects ensuring both an “appropriate financial return” and a “measurable positive” contribution to the environment and society.

To become content, one must liberate themselves from emotions. Amsterdam-based asset manager Stoic embodies ancient Greek stoicism, aiming to shield clients from emotional investing. “We are behavioural psychologists rather than asset managers.”

In an uncertain geopolitical and macroeconomic environment, Iris van de Looij has recently taken charge of investment teams at InsingerGilissen, Quintet’s private bank in the Netherlands. The bank is currently in a slightly defensive mode, but sees scope to add some more risk to its portfolio again. 

While many asset managers continue to explore private investments amidst growing market uncertainties, Optimix Asset Management has consistently avoided them. “Investors don’t need private markets,”  said Jelte de Boer, managing director of Amsterdam-based Optimix, a Dutch subsidiary of Swedish bank Handelsbanken.

The dominance of the “Magnificent Seven” will diminish in 2024, leading to a more broadly oriented equity market next year. This is the expectation of equity experts. “There will no longer be seven next year,” they predict. On other themes, opinions are divided.

Banks in the Benelux are adopting Article 9 fund of funds to offer retail clients unlisted impact investments, despite concerns over high costs.

Laws and regulations make it difficult for parties to offer unlisted impact investments to retail clients. Banks in the Benelux see a solution in Article 9 funds of funds. “Customers are actually not waiting for it because of the high costs, but a fund of funds is desperately needed,” says Jan Willem Hofland, head of investment sales at Abn Amro MeesPierson.

Depositary banks, including some at Caceis, have been grappling with dissatisfaction for years due to the ever-complicating “settlement machinery” requiring constant fine-tuning. “With each legislative tightening, our processes must adapt,” state Rinke Visser and Sikko van Katwijk from Caceis Netherlands.

After a significant reclassification wave last year, many hesitate to award their funds the highest sustainability label, lacking the commercial upsides of SFDR 9 reporting.