LFDE: Space is the next big thing
Rolando Grandi, a fund manager with La Financière de l’Echiquier has highlighted the huge opportunities linked to the development of the space sector, with many companies expected to go public in the coming years.
PGIM Investments: European high yield enters a new default paradigm
PGIM Fixed Income evaluates the prospect of additional spread tightening in the European high yield bond market.
UBS AM: Skating on thick ice - an optimized defensive equity strategy
Investors are confronted with the question of how to allocate to equities, which offer high potential returns but where investors are always ‘skating on thin ice,’ with the ever-present risk of a bear market or crash?
ALFI: Sustainable funds growing strongly
Sustainable funds have grown significantly in the past few years, according to a new study. Sustainable funds’ net assets have increased by as much as 450% since 2018, rising sharply as a share of total fund assets.
Net new money invested in such funds was positive Europe-wide, up 50% in June 2021, reflecting 510% increase of net new money into sustainable funds over the 2018 level.
Decisive Chinese equity policy trends
With the Chinese government cracking down, foreign investors are reassessing their exposure to China. It is a balancing act between capitalising on the lucrative opportunities the country offers and protecting portfolios against the apparent arbitrariness of the government. The attentive investor can nevertheless hold on to a common thread.
Capital Group | Will the pandemic threaten the future of big U.S. cities?
You might think where someone decides to buy their coffee in the morning doesn’t amount to a hill of beans when it comes to the health of the U.S. economy. But, in fact, it could mean a great deal in the years ahead.
ALFI: How debt funds are growing
The private debt funds market is growing quickly in Europe and there’s more to add, commented a panel at last week’s ALFI Global Distribution Conference. The panellists discussed the attractiveness of this sector in general, particularly to the insurance industry.
ESG ETFs focus on market cap, not climate score
Research by French think-tank Edhec shows that ETFs that are so-called “Paris aligned” take the climate score into account for no more than 12% of the factors underlying stock selection. Climate scores, at best, play second fiddle.
A value-growth barbell strategy
The 10-year and 30-year US yields are pushing towards the top of their trend channels. These interest rates are all-important for the further evolution of long-duration assets. 2 per cent on the 10-year segment seems to be a breaking point. A barbell strategy between value and growth may offer a solution.
Listed infrastructure as inflation hedge
With listed infrastructure companies passing inflation directly on to their customers, investors can use them as a hedge against rising inflation, according Thomas van der Meij of Van Lanschot Kempen, a Dutch wealth management firm active in the Benelux region.
“Communication towers, toll roads and, to a lesser extent, airports perform well in a high-inflation environment. Meanwhile, US railways and energy transmission companies are benefiting from high commodity prices,” he explained.