| The latest news from Institutional Asset Manager |
| Not displaying correctly? View this email in your browser |
| | Bonds back in fashion The fund management industry is enjoying a reversal of fortune so far this year compared to the market horrors of 2022.
The European Fund and Asset Management Association (EFAMA)’s International Quarterly Statistical Release for Q1 2023 reveals an increase in net assets of worldwide investment funds by 3 per cent in Euro terms to reach EUR62.42 trillion.
Meanwhile, long- terms funds made up for the losses suffered in 2022, recording net inflows of EUR132 billion, compared to net outflows of EUR198 billion in Q4 last year.
Unsurprisingly given the ongoing interest rate hikes, bonds are firmly back on the menu enjoying inflows of EUR136 billion, compared to net outflows of EUR121 billion in Q4 2022.
But while the move to bonds make sense, it is at the expense of equities, at least in the UK.
According to a June report from Bank of America Global Research investors are "shunning" UK stocks after they clocked up 24 weeks straight of outflows.
The exodus appears to be yet another unintended consequence of the Bank of England’s efforts to stave off the highest inflation rates of any G7 economy by hiking interest rates; a move that has created chaos in the mortgage market.
Bloomberg economists predict that the central bank will be responsible for pushing the UK into recession before the year is out.
While this is grim news for short-term investors, for those with a long-term horizon who can take advantage of the current low stock prices, the UK might look like an opportunity rather than a disaster.
Elsewhere IAM’s editor in chief Beverly Chandler has been enjoying the glamour of Monte Carlo, attending the IMPower Fund Forum, where she reports on the top seven defining trends for the asset management sector.
Hermin Hologan, EMEIA Wealth & Asset Management Leader at EY, identified technology, as an accelerator for business; ESG, which he said was facing strong headwinds; product innovation in terms of responding to investor needs; cost transformation; accessible private markets for new investors; ecosystems; and finally talent management.
All of these require investment, however, so asset managers will need to hope the recent fund inflows are sticky, if they are to capitalise on all seven areas.
Gill Wadsworth, Editor
For live updates please follow us on Twitter and LinkedIn.
| | | | | | IMPower Fund Forum panel identifies seven key themes shaping the investment management industry | | In one of the first sessions of IMPower Fund Forum’s two day event this year in the Grimaldi Forum in Monte Carlo, Hermin Hologan, EMEIA Wealth & Asset Management Leader, EY, attempted to define seven trends that are shaping the investment management industry, along with his panel of Stefanie Drews, President, Nikko Asset Management, Fadi Abuali, CEO Goldman Sachs Asset Management International, Pete Cherecwich, President of Asset Servicing, Northern Trust and Darko Hajdukovic, Head of New Primary Markets, London Stock Exchange. |
| | | | FTSE boards lack ‘diversity of expertise’, study finds | | The number of women on FTSE All-Share boards has continued to rise this year (40 per cent), but a new report released today highlights deep concerns about the lack of skills and diversity of expertise among FTSE All-Share executive board members. New data reveals that just 2.3 per cent of executive board members hold positions other than CEO, CFO or Company Secretary and only 10 per cent of executive board directors are women. |
| | | | | | | | | | | | | | | Multi-asset in Asia sees inflows Investment director and head of Multi-Asset at Value Partners, Kelly Chung, shares her latest insights on different asset classes. |
|
| | | | Copyright © 2022 All Rights Reserved About | Disclaimer | | |
|
Sent to:
[email protected] Unsubscribe Chandler Publishing, 8 King Edward Street, Oxford, OX1 4HL, United Kingdom
