Buy side Monthly archive

Jul 31, 2019
Global asset management industry has hit wall, warns report
The global asset management industry has reached a tipping point, warns a new study, stating that last year, after roughly a decade of positive momentum, the industry hit a wall amid concerns over rising interest rates and a turn in the economic cycle. Major asset markets posted negative returns, managers saw outflows, profitability declined and revenue margins contracted, leading in some cases to job cuts, according to the Boston Consulting Group’s study, ‘Glob...
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Jul 22, 2019
Investors support investment that improves long-term business prospects
A majority – 60 percent – of institutional investors support investment that improves long-term business prospects, even if it diminishes short-term corporate performance, according to the EY CEO Imperative Study 2019. In addition, more than two thirds (67 percent) of the world’s largest company CEOs say they are likely to take a public stand on politically charged issues related to global challenges, according to the study. The survey of 200 CEOs, 100 ...
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Jul 17, 2019
Investors add risk going into equities, says BofAML
Investors have added risk, rotating into cyclical plays (equities, Europe, industrials, banks) and out of defensive ones (bonds, real estate investment trusts, utilities and staples), according to the latest Bank of America Merrill Lynch (BofAML) fund manager survey for July. Allocation to global equities retraces almost all of last month’s dip, rising 31 percentage points to 10 percent overweight, reveals the survey. Looking at regional equity allocations...
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Jul 11, 2019
Active funds see investors take flight
US and European investors have bolted from active funds at their highest rate in three years, pulling more than $35 bn so far in 2019, according to data company Morningstar. Active investments – the principle of fund managers selecting stocks rather than tracking an index – have been under pressure because of disappointing performance, high fees and growing stock markets. In addition, passive funds continue to take market share, accounting for 37.5 percen...
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Jul 10, 2019
JPMorgan downgrades global growth forecasts, but is positive on equities
Equity markets have had a good first half of the year, boosted by a dovish monetary policy from the world’s central banks, with the S&P 500 hitting another record high, notes JPMorgan’s mid-year market outlook. Following the June 2019 G20 summit, where a US-China trade truce was agreed for the time being, asset prices should be supported for the remainder of the year, notes the review. Low single-digit returns are expected across most asset classes, as the g...
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Jul 09, 2019
The financial case for ESG
What is the financial case for ESG – and what does ESG really mean? These key questions were posed at the recent Bloomberg Sustainable Business Summit in London, and drew differing approaches from the panelists. Valentijn van Nieuwenhuijzen, chief investment officer at Dutch asset manager NN Investment Partners, answered unequivocally: ‘ESG is the fundamental variable, or set of variables, to create the right incentives in capital markets for the corporate world...
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Jul 05, 2019
UK asset managers increase positive outlook, reveals survey
Optimism within the UK asset management sector has risen compared with the previous quarter, according to the latest survey from UK business lobbying group the Confederation of British Industry (CBI) and PwC Financial Services. The survey also finds that organizations within the sector are now turning their focus to grappling with new regulation – particularly Mifid II, cutting costs, reducing overheads and dealing with increased competition. Elizabeth Ston...
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Jul 01, 2019
Integrating ESG at Neuberger Berman
What are Neuberger Berman’s assets under management? As of December 2018, $304 bn. When did you join the firm and what is the scope of your role? I joined two years ago in April 2017. My role is to lead the ESG investing activities across the whole company – our equities business and also our fixed-income and alternatives businesses. We’ve had a dedicated sustainable equity team since 1989, but when I joined it wa...
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