All articles by Lynn Strongin Dodds – Page 2
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FeaturesOpen-ended investment funds face up to the shadow banking dragnet
The debate over the systemic risk of non-bank financial institutions (NBFIs) – sometimes called shadow banks – is a recurrent theme but it has recently moved to the forefront thanks to tighter monetary policies, geopolitical risks and factors such as the UK’s LDI crisis. While regulators are assessing the threats posed, most market participants believe changes will not happen for years. For some, there are fears that largely unleveraged segments like open-ended investment funds could be unfairly targeted
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FeaturesFX in waiting mode after lively 2022
After a long period of muted volatility, currency markets sprang back into action in 2022 as geopolitical risk and diverging monetary policy came to the fore. This year it is quieter, but markets remain rattled over the unpredictable interest rate scenarios. As a result, many market participants are waiting for a sharper picture to emerge.
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FeaturesESG comes to money market funds
Environmental, social and governance (ESG) investing has permeated every corner of the asset management universe, and money market funds (MMFs) are no exception. European funds are under much greater scrutiny than their US and UK peers thanks to the Sustainable Finance Disclosure Regulation (SFDR), which came into effect two years ago. The result is that many MMFs are busy changing their classification to meet the higher standards.
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Asset Class ReportsFixed income – A year for selectivity in high yield and loans
Patience might prove the be the watchword for the rest of 2023 in high yield
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Asset Class ReportsFixed income – Convertible bonds return to favour
After a long period in the wilderness, convertible bond issuance is coming back to life
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Asset Class ReportsEmerging market equities – Slow progress on corporate governance
Equity investors see improvements in corporate governance in emerging markets, but alignment between shareholders, management and owners remains critical
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Asset Class ReportsPrivate debt: Sustainable lending set for comeback
Issuance of sustainability-linked paper took a hit in 2022, but managers are now introducing ESG KPIs to incentivise borrowers
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Asset Class Reports
Private debt: European markets try to power ahead
Private debt in Europe is still feeling the impact of the war in Ukraine and the surge in inflation, but there are reasons for optimism
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FeaturesHigh yield bonds: do your homework
Last year, European bond markets were struck by a toxic a combination of geopolitical, economic and market tensions. The picture has improved with the dawning of 2023, although the markets will continue to experience bouts of volatility and uncertainty will persist. High yield is back on the agenda, but selectivity and careful analysis will be key in identifying the right opportunities.
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Asset Class ReportsEquities – Factor investment strategies return to favour
After a few years of poor returns from factor investing, investors are again showing interest – but with more realistic expectations
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Asset Class Reports
Private markets: Pension funds review private equity as allocations hit targets
Lower equity and fixed income values see pension funds off-load their exposure to illiquid assets
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Special ReportPost-Brexit flux in Europe
Although Brexit has changed the dynamics of the European asset management landscape, the checklist for choosing a location for an exchange-traded fund (ETF) has not altered: a solid legislative foundation, requisite skillsets, favourable tax treatment and cross-border distribution acumen.
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Asset Class ReportsEmerging market debt: China government bonds
The outlook for Chinese government debt is looking less attractive
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Special ReportNew kids on the ETF block
Inflows into exchange-traded funds (ETFs) may have taken a hit in the latest bout of market turmoil, but this is not expected to deter new entrants from joining the fray. It is always challenging to break into a new market, especially one dominated by a handful of firms but, those players with innovative, specialised solutions and strategies are expected to make their mark.
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FeaturesImportant role for securities services firms in ESG metrics
The focus on environment, social and governance (ESG) or sustainability investing is almost always on the front office. Fund flows, strategies and research have been centre stage. Often forgotten are the asset-servicing firms working in the wings developing solutions to help their clients evaluate, validate and comply with rules and regulations, particularly in Europe.
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FeaturesCustodians will be key as investors move into digital assets
Digital assets may seem to be the latest investment trend, but institutions are taking their time in embracing them. Moving interest to the next level will require not only greater regulation but also a solid network of custodians to provide the required security and protection.
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Special ReportOutlook: Investors grapple with inflation and rising rates
The asset allocation options available to institutional investors in such uncertain times are few
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FeaturesInvestors sceptical on Tokyo equity market reforms
In April, the Tokyo Stock Exchange (TSE) implemented its biggest overhaul in over 60 years in an attempt to attract foreign investors. However, many industry experts see the move as largely symbolic and believe more needs to be done to create a roster of high-quality companies with strong corporate governance practices.
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Asset Class ReportsCredit: Investors cautious over Ukraine war
Despite geopolitical tensions, inflation and rising costs, private debt market remains optimistic after a record 2021
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FeaturesBriefing: High yield off to a rough start to the year
High yield did not have a good start to the year. Rising inflation and a more hawkish central bank tone in the US and UK triggered panic selling in January. However, as the dust settles and bad news is priced in, the asset class looks more appealing than other fixed-income segments. Easy pickings may be gone, though, and opportunities will have to be selected carefully.
