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Coronavirus leads to EM of two paces

The performance gap between East Asia and other emerging markets has never been greater than in the first five months of 2020. At first sight, the cause looks obvious: coronavirus. But in the background there is a different dynamic at play.

Ironically, the ranking of best-performing stock markets in 2020 is led by China, the country where the pandemic originated. Korea and Taiwan are also well on their way, and in any case doing much better than most other emerging markets (see graph below).

Investors flock to outperforming ESG funds

Whereas European equity funds suffered substantial outflows during the coronavirus crisis, their ESG counterparts held up much better. Moreover, the assets under management are now higher than at the start of the year. This is partly due to the arrival of investors who had never thought of ESG investing before, says Michael Lewis of asset manager DWS.

Luxflag webinar: ‘Pandemic increases need for ESG disclosure’

The coronavirus outbreak has increased the need for more granular ESG data. However, such data are still difficult to collect as they are often not disclosed by companies. This needs to change fast in anticipation of upcoming EU rules, said participants in a webinar on the topic organised by Luxflag on Wednesday.  

Covid-19 won't change UHNWI behaviour: Lombard’s Vanhoenacker

Contrary to the predictions of some that the pandemic will see a pull-back from globalisation, Jurgen Vanhoenacker, who heads the Sales and Wealth Structuring teams at Lombard International Assurance in Luxembourg, sees no signs of a reduced appetite for clients to live cross-border lives.

How a midcap fund managed to limit losses in 2020

The Echiquier Agenor SRI Mid Cap Europe fund managed to limit its losses year-to-date to only -0.47%, even as its net asset value had risen by 34% in 2019. The secret? A strong focus on ‘structural winners’ and strict valuation discipline, resulting in an exceptionally high cash position at the start of the coronavirus crisis.