Investissement

Luxembourg stock exchange listed private equity firm Luxempart on Monday said it entered into an investment agreement that will give it a stake of approximately 26 percent in Kestrel Vision for about 110 million euros.

Global financial markets are entering a riskier phase where some corporate earnings could disappoint while opportunities remain in China, emerging markets and investment grade bonds, Europe’s biggest asset manager Amundi said.

In their February note to investors, Amundi’s group chief investment officer Vincent Mortier and deputy group CIO Matteo Germano spoke of a subdued earnings and economic backdrop that calls for a cautious, well-diversified approach. 

Thursday’s 50 basis point rate hike by the European Central Bank came as no surprise. The ECB’s deposit rate now stands at 2.5 percent. The ECB reiterated that it intends to deliver a similar rate hike at its next meeting in March.

The ECB’s hike came one day after a 25 point increase announced by the Federal Reserve, and coincided with a 50 point raise by the Bank of England.

Private assets might have dropped significantly in value since the “good years” of 2020 and 2021, but despite a bad year in 2022, they’re still outperforming public market returns by quite a margin, explained Schroders Capital’s chief investment officer Nils Rode at his firm’s private assets 2021 outlook this week.  History shows that private assets investors could have a strong year in 2023 despite the bad overall macroeconomic conditions, he argued.

Macroeconomic pressure on Luxembourg’s real estate sector has translated into a lower volume of property sales, which is hurting the businesses of those who sell real estate properties – real estate agents. They are now screaming bloody murder. 

“The market is suffering,” said Jean-Paul Scheuren of the Luxembourg real estate chamber, speaking of the real estate market generally. “Everybody is like on hold, on hold, and also the demand is on hold.”

Après un premier semestre dramatique, lors duquel les fonds obligataires mondiaux à haut rendement ont abandonné 7,3 %, la deuxième partie de l’année a été marquée par une légère avancée de 1,4 % en euros. La plupart des gérants estiment toutefois que malgré les craintes de récession, l’année 2023 ne sera pas marquée par une vague de défaillances. 

Fidelity International, via Luxembourg, is launching a new climate impact fund leveraging the need for improved performance of existing commercial real estate buildings in Europe. Investment Officer sat down with Aymeric de Sérésin, Fidelity’s director of European real estate investments.

Eurozone interest rates will rise further in the near future as evidence grows that inflation has become entrenched, leaving the European Central Bank no option but to continue to hike its policy rates. At Ethenea, ECB watchers believe official deposit rates could more than double from current levels.

Parmi les actifs européens qui ont afflué vers les ETF l’année dernière, une plus grande proportion est allée vers des trackers avec des labels ESG que vers des trackers sans cette caractéristique de durabilité. Les FNB à revenu fixe durable ont été particulièrement populaires en Europe.

Luxembourg’s reputation for excessive house prices is facing macroeconomic clouds looming over European and international housing markets. However, several country-specific factors will likely minimise the price drops seen in other markets, including tax measures, cheaper housing across the border, and a small development community.