Investing

Luxembourg-headquartered asset manager Candriam on Wednesday announced the launch of a new alternative investments platform as a response to growing demand for diverse alternative investment solutions in today’s market environment.

In a world grappling with economic fragmentation, geopolitical tensions, and inflationary pressures, chief investment officers at Europe’s three largest asset managers – Amundi, DWS, and Schroders – see 2024 as a year poised for cautious optimism amid ongoing economic uncertainty. 

Ucits and Alternative Investment Funds (AIFs) experienced mixed fortunes during the third quarter, according to the latest statisstics reported by Brussels-based European fund sector trade association Efama. Net assets of these investment funds dipped to 19.7 trillion euro, down 0.6 percent from the second quarter, reflecting a cautious market sentiment.

Market expectations of central bank interest rate cuts in 2024 are reasonable, according to Gilles Moëc, the Axa group chief economist and Axa IM head of research, who presented Axa’s outlook for next year in Luxembourg this week. He painted a relatively rosy picture for the US and, to a lesser extent, stagnating Europe, pointing to evidence that inflation is finally under control and that political troubles are not yet certain.

BlackRock, during the presentation of its 2024 Global Outlook at its New York headquarters, indicated that the Federal Reserve is unlikely to cut interest rates until the second half of next year, a scenario the market currently sees as highly improbable. This divergence in expectations set the stage for the event, titled “Context is Everything”, where the asset manager shared its strategic insights. 

Saxo Bank’s annual Outrageous Predictions, a brainchild of Steen Jakobsen, CIO at Saxo, have become a global phenomenon, intended to provoke thought and reassess investment strategies.

Forecasting the S&P 500’s trajectory, most major banks in the US, including their asset managers, predict a marginally positive year for the index in 2024. However, views diverge significantly on the fate of the ‘Magnificent Seven’ tech giants.

Updated European rules for long-term investment funds known as Eltifs will enter into force on 10 January 2024, but managers looking to actually launch new Eltif 2.0 funds may have to wait until the end of February because European financial supervisors still have to agree on the technical standards for supervising these products.

Skyrocketing mortgage rates and astronomical house prices make it almost impossible for the average American to buy a house. So activity declines. The result is a drag on growth.

The US 30-year mortgage rate, while falling slightly, is still close to its highest level in more than 23 years. Nevertheless, house prices have risen to record highs after a brief dip. This is only nice if you own a house, because otherwise it is an unfavourable combination economically.

With the official launch of Eltifs 2.0 in early 2024, the private semi-liquid private funds market is undergoing a revival, both in terms of products and assets under management.