The British vote for Brexit has seriously affected the confidence of institutional investors across the globe. In July, State Street’s Investor Confidence Index dropped to such an extent that institutional investors globally are now decreasing their allocation to risky assets.
This week’s Federal Reserve meeting presents a particularly difficult set of circumstances to the Federal Open Market Committee.
When an equity fund run by a single manager takes an extra manager on board, portfolio concentration decreases and performance goes down. That’s the main conclusion of fresh research published by the CFA Institute.
The economic impact of Brexit on continental Europe will be small, according to Niall Gallagher, investment director of European equities at GAM.
European investors are more uncertain about their macroeconomic outlook than ever before. In a year’s time, the share of fund buyers with an uncertain macroeconomic outlook has doubled to 60% according to Expert Investor data.
No doubt you have recently come across some articles that mention the words ‘millennials’ and ‘investing’ in the same breath. But unlike many asset managers want you to believe, millennials are not just another generation such as the babyboomers.
In its latest Flow Show note, Bank of America Merrill Lynch pointed out that, at current rates, it would take you 1387 years to double your savings in a 1-year German deposit account.
Europe’s share of the world economy may be declining steadily, but there is at least one area where the continent is growing in importance: asset management revenues. Global asset management companies are deriving an ever growing share of their revenue from Europe, at the expense of the United States.
The UK risks losing its financial passporting rights if it leaves the European single market following the Brexit vote. Some asset managers are taking action to counter this threat, while others sit back and wait.
Belgian fund buyers believe Brexit will have a long-term negative impact on equity or bond prices, or even on both. Fund managers speaking at the Expert Investor Belgium forum are hardly more optimistic.