Investing

Active bond ETF managers have outperformed their passive counterparts amid the current interest rate climate, driving strong capital inflows and impressive returns. Despite persistent criticism over higher costs, investors appear willing to pay a premium for performance.

China’s latest stimulus package, aimed at reviving its economy, could trigger a significant rally in equities over the next six months, according to renowned China watcher Louis-Vincent Gave, managing director and co-founder of Hong Kong-based Gavekal Research. “I believe it’s the trade to do for the next six months.”

The seventh and final part of the Investment Officer series on geopolitics and investing focuses on China. Few countries elicit such mixed analyses in the West as the People’s Republic.

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.

Many investors mistakenly conclude that China and the United States are completely different due to their distinct financial (and societal) systems. However, nothing could be further from the truth. Both nations’ faltering economic engines are kept running by the same remedy: debt.

Luxembourg has been outpaced in the development of exchange-traded funds by Ireland. However, steps have been taken to improve Luxembourg’s offer. Investment Officer has spoken with people involved in the recent launch of a new Luxembourg-domiciled Ucits-compliant collateralised loan obligation (CLO) exchange-traded fund (ETF), which benefits from two-year-old changes to Luxembourg’s securitisation law.

The stock market is going through turbulent times, especially within the large technology stocks segment. Nevertheless, a soft landing seems to be in the offing. Investors are already anticipating a possible rebound, especially among US cyclical stocks and smallcaps.

In a world where AI dominates and geopolitics shift rapidly, Allianz’s CIO Virginie Maisonneuve embraces ‘Digital Darwinism’, steering investment strategies through innovation, China’s rise, and Europe’s struggle to regain its competitive edge.

Trackers and index funds are the logical choice for investing in US government bonds. Indeed, within long-term dollar bonds, the scope for active management is limited.

European investors are eyeing the rapid price shifts in the US bond market, driven by expectations of interest rate cuts. While the rise in US government bond prices has been enticing, seasoned investors are now questioning how long this rally can last.