Investing

Registrations of reserved alternative investment funds took a very relaxed late-summer break during August, quietening to a level last seen early in the Raif product’s history — in January 2019. Only 15 new funds were registered during the month, according to data from Luxembourg Business Registers analysed by Investment Officer.

Market participants are bracing for an unexpected — and for a long time, unthinkable — interest rate hike by the Bank of Japan (BoJ). In an interview on Saturday, BoJ Governor Kazuo Ueda indicated that he is considering raising rates “provided wages and prices continue to rise sustainably.”

Pension funds are keen for asset managers to increase allocations to India, some advocating for a 20% allocation in their emerging markets portfolio. India’s growth trajectory could potentially eclipse China’s, given its focus on the service sector rather than manufacturing. At its European Media Forum on Friday, Edinburgh-based Baillie Gifford also acknowledged burgeoning opportunities in Latin America and Indonesia, particularly due to the increasing connectivity and the unfolding global energy transition.

Reserved alternative investment fund registrations (Raifs) in July continued a moderate recovery from a slowdown earlier this year, with 31 new Raifs added to the Luxembourg Business Register list.

Chinese growth is disappointing. Global asset managers are liquidating large parts of their equity positions in the country, resulting in falling share prices. It seems like a godsend for bargain hunters, but passionate China investors are also on their toes.

China is not growing fast enough, so investors have been liquidating their positions in Chinese stocks at an unprecedented rate.

High yield bonds are positioning themselves cautiously in the spotlight as recession fears recede and credit quality improves. While junk bonds perform best during periods of robust economic growth, a region that’s closely flirting with a recession is seen as having the most potential.

In recent years, the regulatory framework for the duties and responsibilities of the board of directors or management board and for the control functions within Luxembourg investment fund managers has evolved significantly. Among others, CSSF Circular 18/698 has tightened the regulatory requirements for the authorisation and organisation of Luxembourg investment fund managers (“IFMs”).

Natural disasters can have a severe impact on the real estate market, yet investors appear unaware of this looming risk. A correction in real estate stocks seems to be lurking.

Portfolio manager Lucas Vuurmans of Amsterdam-based investment bank Van Lanschot Kempen discussed this with InvestmentOfficer.nl. For the U.S. office market, a correction is anticipated due to climate risks averaging more than 3 percent. In riskier areas, the decline in value could even reach 10 to 12 percent.

Goldman Sachs Asset Management’s (GSAM) recent marketing of the Private Market Eltif demonstrates that the firm is keen to broaden the horizon for private investors. Giving the retail segment access to its 420 billion dollar alternatives-platform is not a mere experiment, but part of a “big, bold commitment,” according to Barry Fricke, GSAM’s Head of EMEA Alternatives Distribution Wealth Management. Goldman Sachs AM now wants to launch a new private market Eltif every year.

The latest quarterly report from the Association for Financial Markets in Europe (Afme) highlighted diverging trends in the European Environment, Social, and Governance (ESG) finance landscape during the second quarter of 2023.

European ESG bond and loan issuance dropped by 23.9 percent year-on-year to 151 billion euro in the second quarter. The quarter also saw an 11.1 percent decrease compared to the first quarter.