Covid pandemic impact

Active management of investment funds is no guarantee for outperformance during volatile times in financial markets, according to a new study presented on Monday by Europe’s top financial markets authority. “There is low ability to generate sustained positive alpha, especially for larger funds,” it said.

Riccardo Lamanna has recently become the Luxembourg Country Head for State Street. He entered the position after spending more than 30 years in the business, having worked in Milan, London and Paris at various institutions, including JP Morgan, Paribas, the Intesa Sanpaolo Group and over the past 11 years, at State Street.

With listed infrastructure companies passing inflation directly on to their customers, investors can use them as a hedge against rising inflation, according Thomas van der Meij of Van Lanschot Kempen, a Dutch wealth management firm active in the Benelux region.

“Communication towers, toll roads and, to a lesser extent, airports perform well in a high-inflation environment. Meanwhile, US railways and energy transmission companies are benefiting from high commodity prices,” he explained. 

Although the UK led the way in the rollout of vaccinations and Brexit was largely overshadowed by the Covid pandemic and reopening, the divorce continues to cause uncertainty among investors. 

Guy Wagner of Banque de Luxembourg Investments believes that Western economies will emerge weakened by the health crisis, with higher inflation and huge private debt. His fund is defensively positioned, despite an equity exposure close to 70% of assets under management.

“There is a lot of uncertainty around inflation and monetary policy in the United States. This clouds the outlook for equity markets. In the long term, Asian equities offer the best investment opportunity.”