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Date
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April 6, 2020
Asset Allocation,Investing

Did ETFs really pass the bear market test?

ETFs have remained open for business during the coronacrisis, while credit markets were largely frozen. But ETFs were still able to cope with unprecedented outflows, providing investors with badly needed liquidity. However, this may just be a Pyrrhus …
April 3, 2020
Asset Allocation,Investing

Coronacrisis reinforces trends in real estate

The coronacrisis has hit the real estate sector hard. Much of the damage could prove to be permanent, as underlying trends are now accelerating and consumer behaviour could change permanently, says Michael Gobitschek, manager of the Skagen M2 fund. ‘Will …
April 1, 2020
Asset Allocation,Investing

Fund managers fear more dividend cuts

Fund managers expect more companies to cut their dividends, following the example set by banks. However, many companies still are perfectly capable of maintaining their dividends, according to DPAM’s Laurent van Tuyckom. ‘Companies in defensive sectors …
March 26, 2020
Asset Allocation,Investing

'Risk assets are on the rise, but recession is still to hit'

Following Christine Lagarde’s earlier ‘rookie error’, the newest ECB stimulus package did not come as a surprise for Ella Hoxha, manager of the Pictet Global Bond Fund. Are European bonds now out of the danger zone? ‘The worst should technically be behind …
March 20, 2020
Asset Allocation,Investing

Coronavirus freezes credit markets

Credit markets have been hit hard across the board. ‘Exiting at normal prices is now virtually impossible because there is hardly any liquidity.’ Only ETFs can still be easily sold, resulting in dramatic price declines. Can the ECB’s latest support …
March 17, 2020
Asset Allocation,Investing

High yield crisis also offers opportunities

March is not even halfway through, but has already presided over the largest fall in the price of European high-yield bonds since October 2008. The BofA European Currency High Yield Index is already in the minus 8% this month, but the unprecedented fall …
March 16, 2020
Asset Allocation,Investing

Fed emergency measures 'a defining moment'

The decision of the US Federal Reserve to cut interest rates once more and restart QE was expected by investors. But not on a Sunday afternoon. Asset managers characterise the sudden decision as 'a defining moment', for more than one reason. 'We had …
March 12, 2020
Institutional

Brexit boosts Luxembourg insurance market

A 44.5% increase in premium income in Luxembourg’s insurance sector last year was driven mainly by Brexit relocations in the non-life sector. However the traditional mainstay for the industry, life insurance, also enjoyed a strong year with income up …
March 11, 2020
Asset Allocation,Investing

Coronavirus crisis: all eyes on the ECB

The Fed and the Bank of England responded to the coronavirus fall-out with emergency rate cuts of 50 basis points. Now, all eyes are on the ECB. ‘Hopefully, these drastic interest rate cuts will prove to be an overreaction by policymakers. Unlike during …
March 8, 2020
Asset Allocation,Investing

'Interest rate cut mostly helps to reduce volatility'

The Fed's rate cut was not the most clear-cut answer to the corona crisis, says Hendrik Tuch, head of fixed income at Aegon Asset Management.  But he understands the decision. 'It anticipates on investors receiving terrible economic figures and profit …