Asset Owner

With a loss of approximately 1 percent in euros during the fourth quarter, emerging markets ended 2024 on a slightly negative note. Although the year delivered a return of 14 percent, the emerging markets index lagged behind the global index, which achieved a return of 25 percent.

The “outrageous” prediction by Saxo Bank of a major climate disaster impacting the insurance industry in 2025 became a reality last week. The effects of California’s wildfires are being felt within the insurance sector. However, the predicted crisis has not materialised, as investors remain confident in the industry’s resilience.

After a decade in the shadows, global macro hedge funds are reclaiming the spotlight. As market volatility resurges, professional money managers are eyeing global macro as a cornerstone of their hedge fund strategies.

This week’s overview of transfers and appointments in and around Luxembourg includes updates from Goldman Sachs, Waystone, UBP, BLI.

As Europe braces for Trump’s return, Bill Campbell at Doubleline warns of a ‘Terrible Trifecta’ of political, economic, and external pressures disrupting global order in 2025

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 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 withdrawal from the Net Zero Asset Managers (NZAM) initiative has sparked debate, but institutional investors remain largely unaffected.

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.

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.