Investing

The “outrageous” prediction by Saxo Bank of a major climate disaster impacting the insurance industry in 2025 became a reality last week. The effects of California’s wildfires are being felt within the insurance sector. However, the predicted crisis has not materialised, as investors remain confident in the industry’s resilience.

After a decade in the shadows, global macro hedge funds are reclaiming the spotlight. As market volatility resurges, professional money managers are eyeing global macro as a cornerstone of their hedge fund strategies.

As Europe braces for Trump’s return, Bill Campbell at Doubleline warns of a ‘Terrible Trifecta’ of political, economic, and external pressures disrupting global order in 2025

Blackrock’s withdrawal from the Net Zero Asset Managers (NZAM) initiative has sparked debate, but institutional investors remain largely unaffected.

The number of ETFs listed on Euronext exchanges rose by 5 percent last year, exceeding 4.000, while the number of investment funds declined by the same percentage to just over 2.300. In the United States, the number of ETFs grew by approximately 15 percent in 2024, reaching 3.920.

China’s 10-year bond yield has recently dropped below 1.6 percent, a consequence of a weakening economy plagued by deflation. For the first time in 14 years, restrictive monetary policy has shifted towards a moderately expansionary stance. The goal: to support the economy and repair reputational damage.

The concentration risk in equity markets is growing as US megacap technology companies continue to attract capital. Diversification, often seen as the only “free lunch” in investing, risks coming at a cost.

ESG factors are playing an increasingly diminished role in the investment decisions of institutional parties. For the vast majority, short-term performance takes precedence over the long-term benefits of sustainable investing.

Here are the ten most read articles on Investment Officer Luxembourg for 2024.

William De Vijlder (64) retired this autumn as the chief economist of BNP Paribas. In a farewell interview, he reflects on four decades of economic analysis. ‘Everything is even more interconnected than I once thought, which makes it incredibly fascinating.’