NAV errors: Tighter control, clearer guidance seek to improve fund valuations
Luxembourg’s financial watchdog, the CSSF, has made important changes to its rules for valuations of investment funds, the first in two decades. While many things stay the same, some key updates—like lowering limits for money market funds and adding new checks before making investment decisions—are aimed at tightening control and providing clearer guidance.
Investment Outlook: bickering over corrections
“The equity market is moving towards a bubble”, said Jeroen Blokland said during the annual Fondsnieuws Investment Outlook, organised by Investment Officer Luxembourg’s Dutch sister publication. High valuations and exaggerated growth expectations make the probability of corrections in 2022 very high. This statement did not meet with unanimous approval. According to Edin Mujagic, chief economist at OHV Asset Management, this is in fact the ideal environment for equities.
Columbia Threadneedle: no worries on record stock prices
“As corporate profits are rising much faster than expected, high valuations in the equity market are falling fast. Equities therefore remain attractive,” said Natasha Ebtehadj, global equities portfolio manager at Columbia Threadneedle, in a recent conversation with Fondsnieuws, Investment Officer Luxembourg’s sister publication.