Products

More lenient EU regulations are about to make it possible for providers to offer private investment funds to private investors. Private products such as semi-liquid funds and European Long Term Investment Funds, or Eltifs - which can be marketed also to retail clients under a European passport, often via Luxembourg - will gradually change the private equity landscape. “The split that the market currently finds itself in will then be resolved,” said Wim Nagler, head of institutional clients at Schroders.

With a first-half loss of 7 percent when measured in euro, the GBI-EM Global Diversified Index, the benchmark for emerging market bonds, was by no means the worst student in its class.

The past six months have been one of the toughest for bonds ever. Especially long-dated bonds have taken a beating. The Bloomberg Euro Aggregate 10+ Year index fell by no less than 23.6 percent while the Bloomberg Euro Aggregate 1-3 Year index was “only” 2.9 percent lower.

The fact that agricultural commodity prices have risen very sharply in recent months does not mean that investors should expect an equally harsh decline. The precarious balance in the global chain keeps prices high. This offers opportunities for investors.

After underperforming in the first quarter, the emerging markets index outperformed the MSCI World in the second quarter. This was entirely due to China, which ended the second quarter positively, while almost all other equity markets suffered significant losses.

Foord Asset Management, a firm with South African roots and a Luxembourg presence since 2013, is expanding its global reach by offering long-term investors in Australia a new feeder fund for its Foord Global Equity Fund registered in the Grand Duchy.

The new Foord Global Equity Australian Feeder Fund invests exclusively in the Foord Sicav- Foord Global Equity Fund (Luxembourg). The fund held assets worth 472 million dollars at the end of 2021, with holdings in for example Alphabet, Tencent, JD.com, Freeport-McMoran and Alibaba. 

Growing concerns and increasing recession fears set the tone for an erratic second quarter in which global equities went on sale. The S&P 500 index experienced its worst half year in 50 years, down 20 percent in US dollar terms; global inflation is at a 40-year high; and the era of monetary easing appears to be coming to an end as the Fed raised policy rates twice in the past three months, with June’s 75 basis point increase the biggest step since 1994.

Sustainability funds have been selling like hot cakes in recent years. Not surprisingly, many fund houses like to see their funds classified as Article 8 or 9 under the SFDR. After all, these are the funds where sustainability criteria play a role in the investment process. We provide an overview of the most popular equity funds within this group over the past 12 months.

While most asset classes are recording double-digit losses this year, one corner of the market is holding its own: European emission rights. Global ETF provider KraneShares sees its carbon allowance ETF stand year-to-date at a positive 0.26 percent. 

Few asset classes offered protection in this market correction, but investors who chose bonds with shorter maturities were able to limit losses somewhat.

JP Morgan Asset Management and Pictet separately announced the launch on Tuesday of new climate change solutions funds. Both funds seek to invest in companies that have aligned their products and services with the UN’s Sustainable Development Goals, known as the SDGs.