As a market observer, I have seen that no other topic has got so much attention from all parts of the investment ecosystem over the course of the last three years than ESG investing. From a European perspective, it is clear that the “Action Plan on Financing Sustainable Growth” launched by the European Commission (EC)…
October 2020 was another positive month for the European ETF industry since promoters enjoyed inflows, while the market environment turned negative as the second wave of the COVID-19 pandemic hit major markets in Europe and investors feared a second coronavirus lockdown-induced economic downturn. The negative performance of the underlying markets led to decreasing assets under…
As ETFs are registered for sales in different countries and listed on multiple exchanges and trading venues, they can be considered as true cross-border products. Therefore, it is not surprising that the majority of ETFs traded in Europe are domiciled in the international fund hubs of Ireland and Luxembourg. Assets Under Management in the European…
European investors bought further back into mutual funds and ETFs in September 2020. Even as the global equity markets recovered further in a volatile environment, investors returned to long-term mutual funds because they expected the massive stimulus packages from central banks and governments globally to keep interest rates low and to foster global economic growth…
September was another positive month for the European ETF industry since promoters enjoyed inflows as economies and securities markets stabilized further after the coronavirus lockdown-induced economic downturn. The negative performance of the underlying markets led to decreasing assets under management (from €877.1 bn as of August 31, 2020, to €870.9 bn at the end of…
Up until 2011, synthetic index replication was widely used in the European ETF industry and investors appreciated the low tracking errors and, in some cases, higher performances of these products compared to ETFs which used so-called physical replication. But in the aftermath of the financial crisis and the euro crisis, critics argued that ETFs that…
Although the investment industry is normally not a target for public protests or activist campaigns, we witnessed some actions taken by these groups over the course of 2020 regarding the ESG strategies of some asset managers and their ownership of stocks from oil, gas, and coal companies. The ultimate aim of the activists is to…
August was another positive month for the European ETF industry since promoters enjoyed inflows as economies and securities markets stabilized further after the coronavirus lockdown-induced economic downturn. The combination of above average inflows and the positive performance of underlying markets led to an increase in assets under management from €843.5 bn as of July 31,…
Looking at the actions taken by fund managers and promoters in Europe, it seems like sustainable investing or sustainability is the hot topic in the market. Nearly every company announces that they will or have integrated non-financial criteria into their investment processes or offer funds with a specific approach. On the other hand, it looks…
European investors bought further back into mutual funds and ETFs in July. Since the global equity markets stabilized further, investors returned to long-term mutual funds because they expect the massive stimulus packages from central banks and governments globally to keep interest rates low and to foster global economic growth after the lockdowns caused by the…