Capital Group | Is high inflation the ultimate pandemic distortion?
The last time U.S. inflation spiked above 9%, Ronald Reagan was the newly elected president of the United States. And stainless steel DeLorean sports cars were rolling off the production line.
Active managers lose out again against passive
It has been a dire and highly volatile stock market year so far. The opportunity for active investors to make a difference and outsmart the market. Fine words notwithstanding, more than three quarters of active managers have failed again this year. “The biggest cause of active funds’ failure is their inability to survive.”
This is according to the latest Morningstar European Active/Passive Barometer, a semi-annual report that compares the performance of European-based active funds with passive funds in their respective Morningstar categories.
Graph of the week: energy label
No this column is not about sustainability, climate targets or Co2 emissions. But about the fable that energy companies are a reason why broad market profits need not fall.
Energy profits
Earnings-per-share of US energy companies included in the S&P 500 Index are up more than 250% from a year ago. But this does not disguise a fall in profits of the rest of the companies.
Rise PropTech aims to benefit from property disruption
The construction industry and real estate are about to change, and so investing in property tech (or proptech) start-ups now is a good investment strategy. That’s the idea behind Rise PropTech Fund.
At COP27, LuxFlag hosts debate on impact investing
LuxFlag, the Luxembourg Finance Labelling Agency, raised awareness to market challenges faced in the impact investing space at a side event held on Monday at the EIB Benelux Pavillion at COP27 which is being held in Sharm el-Sheikh, Egypt. The event featured speakers familiar with the challenges of making investments with real impact and of the best way to move forward with sustainable finance.
SFDR Article 6 and 8 funds see substantial outflows in Q3
While the upgrade of SFDR funds is still in full swing, light green funds did not escape this year’s market violence. Article 6 and Article 8 funds saw a hefty outflow of assets. The greenest funds did manage to attract new assets.
Article 8 funds saw net outflows of 28.7 billion euros in the third quarter of 2022. This was reported by Morningstar in a press release this week. Article 6 funds clearly lost out with an outflow of 62.1 billion euros, according to the financial services provider’s data.
Funds to escape Luxembourg tax avoidance rule ‘overkill’
Luxembourg’s government is proposing to simplify the corporate income tax process for investment funds which have overseas investors or subsidiaries by reducing their risk of being subjected to full Luxembourg anti-tax avoidance corporation tax. The changes to the “reverse hybrid rule” seek to remove doubt from how to deal with tax exempt entities.
AML: CSSF finds weaknesses amid ‘satisfactory’ understanding
Luxembourg financial regulator CSSF today announced that it had found “satisfactory” both market participants’ understanding of the risks of AML/CFT activities and the related mitigation measures that they had put into place, in a recent thematic review of money-laundering or terrorism financing checks by its on-site inspection unit.
Fire breaks out in defensive profiles
Even clients with the most defensive risk profile stand to lose more than -12 per cent at Dutch asset managers this year. “Defensive clients have 2008 experience in their portfolios. And according to many, we are not even at the exit yet.”