Investing

Let me begin by stating my agreement that the Federal Reserve is unlikely to raise interest rates imminently. However, basing this expectation solely on the latest inflation figures seems overly optimistic. The recent data, after all, were not exceptionally positive.

Dutch pension funds are striving to address concerns about the high performance fees they pay to private equity funds by increasing accountability and explaining the dilemmas and choices surrounding these investments.

Predicting future interest rates is a favorite activity among economists and strategists, but Dimensional Fund Advisors takes a unique stance. “Forward rates are the best guide when positioning bond portfolios for higher expected returns,” they assert, dismissing the predictions of journalists and other ECB/Fed watchers.

BlackRock’s iShares topped the charts as the best-selling ETF promoter in Europe for October, outpacing Amundi and Vanguard, according to recent data from LSEG Lipper. Bond funds have become the most popular ETF category this year by a significant margin.

In a thought-provoking piece from May 2018, I penned a commentary here titled ‘Make America Great Again’, promptly re-titled by the editor to ‘Rabobank: Trump is good for economy and stock market’. Reflecting on it now, I am mostly financially appreciative. To clarify, today’s discourse is not about Amazonian deforestation but Donald Trump once more.

Amid the sustained growth of Luxembourg’s private markets, propelled by ongoing onshoring and the growing acknowledgment of its robust legal frameworks, Investment Officer sat down for a conversation with Claus Mansfeldt, president of the Luxembourg Private Equity & Venture Capital Association (LPEA).

Luxembourg-headquartered CVC Capital Partners, one of Europe’s biggest private equity firms, on Wednesday decided to postpone its initial public offering on the Amsterdam stock exchange, a person familiar with the decision has confirmed. The firm now is looking for a new opportunity to go public in 2024.

Despite rapid development, private credit is still in its very early growth stages. Despite macroeconomic and cyclical challenges, Jiři Król, the deputy CEO of the Alternative Investment Management Association, sees private credit catching up to the much larger private equity in the next 10 years. He also sees huge potential development from the reformed European long-term investment fund vehicle (Eltif).

Interest rates are shooting up and in some cases have reached the highest levels in decades. The share prices of US regional banks are collapsing again. And yet reports of new collapsing banks remain absent. Why?

Deposits!

The chart below provides the answer to that question. Despite continued competition with money market funds, deposits of smaller US banks are steadily increasing. Compared to a year ago, there has been a modest growth of 2 per cent.

After a dismal third quarter, bond investors are once again turning their attention to fixed income. A survey of European and Asian fund selectors forecasts a heightened demand for this asset class in the upcoming year, particularly with expectations of sustained equity market volatility.