Esma faces uphill battle to emerge as European SEC
In an interview with Investment Officer, Esma chair Verena Ross outlined her vision and the significant challenges ahead as the regulatory body aims to become Europe’s equivalent to the US SEC.
Morningstar: Blackrock versus JP Morgan in EUR Moderate Allocation – global
Active asset allocation is a double-edged sword. Executed well, tactical shifts can generate alpha and differentiate from the benchmark. The trade-off is greater complexity, with more moving parts and higher demands on skill and discipline. Investors should also assess the costs of tactical allocation.
Capiva Plus fund admits governance failures, seeks reset
A Belgian-led private fund, structured as a Luxembourg RAIF, at the center of a Dutch regulatory probe has acknowledged serious failures in governance and investor reporting, as it attempts to rebuild trust with two wealth managers whose clients were exposed to the structure.
Inflation fears pull European yields further apart
The Iran war has broken the trend toward greater convergence between yields on European government bonds. Yields rose particularly sharply in Italy and the United Kingdom, while countries such as the Netherlands and Spain managed to limit the damage somewhat.
Transfers: Perwyn, Lalux, Alumia, Universal-Invest, Clifford Chance
This week’s update on people moves includes news from Perwyn, Lalux, Clifford Chance, Alumia, and Universal-Investment.
Correlation is not causation
Every time an oil crisis occurs, the recession scenario is immediately dusted off. The oil price rises, analysts pull out their charts, and within a week the first warnings appear that a recession is inevitable. But the relationship between oil crises and recessions is much weaker than is commonly assumed.
Quintet: In times of uncertainty, client contact becomes a competitive edge
In times of uncertainty, it is even more crucial to invest in the human connection that is at the heart of private banking, said Stéphane Pardini, CEO of Wealth Management at Quintet Luxembourg, in an interview with Investment Officer.
Chart of the week: why the bull market isn’t over
With no end to the war with Iran in sight, talk of a recession is resurfacing. Yet other indicators suggest that the bull market is far from over.
Morningstar: Loomis Sayles vs Nordea in European high-yield bond
Geopolitical conflict and renewed inflationary concerns sapped the wind from high-yield sails.
ECB policymakers might need to talk less often
European dependence on fossil fuels poses a risk to price stability. That is according to Frank Elderson, the Dutch member of the Executive Board of the European Central Bank (ECB). Energy shocks, which seem to occur with increasing frequency, are making it ever more difficult for the ECB to keep inflation at 2 percent per year.