Multi-asset, or asset allocation funds, have been an investor favourite for years. But why would a professional investor invest in these one-stop shop funds?
Passive investing has made a rapid rise over the past couple of years. When it comes to sustainable investing, however, index-based funds are still relative newcomers.
European equities have been the best-selling asset class with European investors in recent history. However, this hasn’t benefited those funds that invest exclusively in equities listed in one particular European country.
A poll conducted by Expert Investor last year among more than 60 European fund selectors showed that active share is an important fund selection metric for more than 80% of them. However, very few fund houses regularly update investors about the active share of their funds. Should they be more open?
Investors are often accused of buying into a trend too late, when markets have already gone up a fair bit. But Europe’s fund buyers are putting on a brave face, and are already planning to move back into emerging market equities before they bounce back.
Over the past two decades or so, Ucits has become the default fund format for cross-border funds. Since the UCITS IV directive opened up the alternative space for Ucits funds in 2009, the format has become even more ubiquitous. Its dominance has even gone as far that many fund selectors have narrowed down their selection universe to Ucits-only. But is this a sensible way to go?
In part two of the interview, Rishma Moennasing, an equity fund analyst at Rabobank in the Netherlands, tells how she deals with managers she thinks are not active enough.
European investors appear to have shrugged off their worries about a Grexit, with the Euro Stoxx 50 index up 2.4% on Monday. Indeed, the consensus that European stocks are the place to be has returned, also among the continent’s fund buyers.
Rishma Moennasing, a senior equity fund analyst for Rabobank in the Netherlands, explains to EIE’s Tjibbe Hoekstra why she is a fan of the core-satellite approach, and how she implements it in practice.
Emerging markets equities are now the most popular asset class among fund selectors across Europe.