‘Equities are a lost cause. Don’t trust this rally.’
While interest rates in the bond market are rising uninhibitedly, the stock market may be in a dead-cat bounce, or a “sucker-rally”. Some market specialists do not trust the rally and declare equities “a lost cause”. In terms of allocations, the traditional appeal of a 60-40 portfolio appears to make a comeback now that the ‘earnings yield spread’ between stocks and bonds is narrowing.
‘Liquidity remains an issue in the new Eltif framework’
Less than a month after the European parliament adopted its updated regulation for Eltifs - the European long-term investment funds - the new framework may be showing its first cracks. The lack of liquidity remains problematic, and that makes it unsuitable for private investors.
New Raif registrations remain below year-ago levels
Some 27 new Reserved Alternative Investment Funds, or Raifs, were registered at the Luxembourg Business Register during February, according to information made public at the end of the month.
The number brings the total new Raifs registered so far this year to 48 funds. That compares to 78 new Raifs that were created during the first two months of last year.
Luxembourg now is home to a total of 2173 Raifs. During 2022, a total of 472 new Raifs were registered. That is an average of 39 per month.
BLI’s Wagner sees rates go up amid firm consumption
The Federal Reserve and the European Central Bank will continue to hike their interest rates this month among broad and persistent signs of strong consumption and the “resilient nature” of economic activity, Guy Wagner, chief investment officer at BLI - Banque de Luxembourg Investments, said.
Private impact investing remains largely a British party
Interest in renewables is playing into the hands of alternative investment funds. Listed closed-end impact funds continue to invest in new energy projects, and investor inflows are following suit. Yet for now it is mainly British investors who recognise the benefits.
Schroders’ first Eltif assigned Article 8 status under SFDR
Schroders Capital on Wednesday said it has launched its first European Long-Term Investment Fund, or Eltif. The fund is called the Schroders Capital Private Equity Eltif 2023 and is classified as a ‘green’ Article 8 under the EU Sustainable Finance Disclosure Regulation.
Schroders Capital Private Equity Eltif 2023 will focus on lower and mid-market private equity buyout and growth investments primarily in Europe but with the flexibility to allocate to non-European companies with high operating exposure to Europe, the firm said.
BlackRock has ‘aggressive plans’ for the Eltif market
The market for European long term investment funds, or Eltifs, is set to triple in the coming years as high-net-worth clients increasingly look to diversify their portfolios by increasing their exposure to private markets, according to US fund manager BlackRock. “We have, I would say, aggressive plans to expand.”
Efama reports Є278 bln in fund outflows for last year
European Ucits and AIF investment funds experienced net outflows of 278 billion euro last year, the biggest level since the financial crisis of 2008, according to industry statistics compiled by the European Fund and Asset Management Association, Efama.
Chart of the week: how many swallows does it take?
There you are with all those fancy indicators like yield curves, ISM Manufacturing, and housing markets. They all point in the same direction, down! But the incoming US macro numbers are in no way pointing to a recession, nor to a soft landing. Spend it!
Top 5: GMO Climate Select leads inflows into Article 9
The Sustainable Finance Disclosure Regulation marks its second anniversary next month. Although it was quickly adopted as a sustainability label, its actual purpose was to provide a framework for communicating the extent to which sustainability plays a role within an investment fund. Adjusted rules that took effect in January 2023 caused a stir in the sustainable fund landscape.