Javier Correa

Germany: Fund industry grows by 6 per cent ▪️ Equity funds with record assets ▪️ Bond funds with highest sales since 2012 ▪️ Balanced funds and property funds with outflows ▪️ Decline in new business for Spezialfonds The fund industry manages a record EUR 4,413 billion in assets for investors in Germany as at the end of September. This is an increase of over 6 per cent since the beginning of the year (EUR 4,149 billion). At EUR 2,183 billion, the majority is accounted for by open-ended Spezialfonds for institutional investors. These are primarily retirement pension schemes (EUR 768 billion) and insurers (EUR 536 billion). The fund companies manage EUR 1,524 billion in open-ended retail funds, EUR 645 billion in mandates and EUR 61 billion in closed-ended funds. In the first nine months of the year, the industry received net new money totalling EUR 21.3 billion. Open-ended retail funds accounted for EUR 20.6 billion of this, compared to EUR 14.0 billion in the same period last year. For further information, please see the press release: https://lnkd.in/eUKaYcPm Peggy Steffen Christiane Lang Frank Bock Volker Weber Magdalena Kuper Kai Schulze Yvonne Schulz Sebastian Oys Christian Anger Moritz Bartsch Rudolf Siebel Felix Ertl Daniel Mettlach Marius Seibert Jenny Seydel Marc Bubeck Sebastian Krämer- Bach Klaus Papenbrock Dr. Sinan York Temelli Cvetelina Todorova Jasmine Carolin Schimke

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🔹 Alternative Assets News in the Swiss Financial Market 🔹 At SMAT, we understand the growing popularity of private assets, driven by their potential for greater returns and downside protection. What are Alternative Assets? Alternative assets are non-traditional investment vehicles that include private equity, private debt, real estate, infrastructure, and commodities. These assets typically exhibit low correlation with standard financial instruments like stocks and bonds. As mentioned in 2023 in a study by Lombard Odier involving 300 wealthy Swiss investors (HNWI), 42% have increased their investments in alternative and unlisted assets. Notably, 43% of Swiss-German investors believe private assets have shielded their wealth from market turbulence, compared to 24% in Romandy.   Unlisted assets have often outperformed, delivering double-digit returns over the past 20 years. Two-thirds of investors under 35 expect higher returns from private investments compared to traditional markets. The trend towards alternative assets is on the rise, with significant growth anticipated by 2025. Let's explore alternative investment opportunities to maximize your returns and strengthen your portfolio. 🌐🔍 You are a professional of finance. Join our wealth management community and get access to our latest exclusive private market opportunities at https://lnkd.in/ezmFhtmS   #Investment #Finance #AlternativeAssets #HNWI #PortfolioDiversification

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Earlier this year, we advised Nature Infrastructure Capital on the raise of the single-asset fund for their 50/50 joint venture with X-ELIO, a portfolio company of Brookfield, for the investment in ECO STOR, a leading German developer and operator of utility-scale battery projects. In conjunction with the new joint venture, Harris Williams advised NIC on their raise of the single-asset fund that will support ECO STOR’s near-term funding needs. NIC’s focus on the global energy transition market, their transparent and detailed approach, and ECO STOR’S strong management team and ambitious growth plan made this a very attractive opportunity to investors. There are strong tailwinds supporting an ambitious build out of renewable electricity generation capacity with a view of reducing gas dependency, increasing the need for batteries to provide flexibility to the grid. We look forward to seeing what ECO STOR accomplishes in their next chapter under the ownership of NIC and X-ELIO. https://lnkd.in/e_8dR7pp #privatecapitaladvisory

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The Lucerne Alternative Investments Fund (LAIF) July 2024 Factsheet is now live on our website.   Our report explores the cyclical nature of big-idea investing and the consequences for investors, where initial hype and inflated expectations often lead to disappointment when performance falters.   You can read our insights and analysis at the link below: #alternatives #Alts #investments #performance

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Will Swiss rates drop below zero again? The spread between the Swiss 2yr (now 18bps) vs SMI Earnings Yield +5.35% is at the largest in quite some time! Swiss Rates have collapsed and earnings for the SMI have increased, At Aquila Himco, Swiss USAdvisors and Acla Medel we have been locking in mortgages 5-10 years between 1.05%-1.30% over the past weeks and will continue to do so. We will probably see zero soon as inflation does not exist in Switzerland. It could change next year with Trumponomics pushing others to a progrowth strategy. Trumponomics is the 47th U.S. President Donald Trump’s economic agenda, principles, and policies. Trumponomics focuses on deregulation, tax cuts, protectionism, and an aggressive stance on trade. These policies aimed to promote job growth, increase wages, and boost economic growth could eventually be followed by Europeans and the Swiss. Now is the time to lock in low rates and buy equities. Get invested and lock in rates soon on your mortgages!  

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J. Safra Sarasin Acquires Zurich-Based Asset Manager: The Swiss-Brazilian private bank has never hidden its ambition to grow through acquisitions. Now, the Basel-based institution has completed a takeover in Zurich. #JSafraSarasin #MIVAssetManagement

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👉 Getting started with Stewardship: Deep-dive on Governance & Stewardship Policies 👈 The Asset Management Association Switzerland (AMAS) and the Principles for Responsible Investment (PRI) are delighted to invite to the second roundtable on Stewardship. Join us for insightful roundtable discussions as asset managers or asset owners to engage in concrete insights on how to get started with stewardship! https://lnkd.in/eCcrSEZF

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Final agenda - Berenberg NextGen #AI Powered Funds Forum, June 27, 2024, hosted at the Berenberg office, Bockenheimer Landstrasse 25, Frankfurt am Main, Germany. As the host and moderator for the upcoming #AI event, I am pleased to have had the experience, together with team Berenberg, to offer a full day agenda, comprised of expert speakers and panel members coming from and making a contribution to the #AI powered asset and wealth management industry, who will share exciting developments and practical applications. Every day we are observing encouraging news from technology firms, emerging, boutique and large established investment managers who are embracing #AI to offer active and passively managed products, services, tools and solutions. These innovative market participants are applying AI to either enhance investment decision making and or offering investment strategies managed by #AI. For investors the AI powered investment management industry is providing unique opportunities, options and alternatives as to how money can be managed. There are a few seats still available for the June 27 AI event. Feel free to contact me directly for additional information [email protected]. Berenberg,Nico Baum,Klaus Naeve,Matthias Born,RAM Active Investments,Emmanuel Hauptmann,Tian GUO, PhD,Google Cloud,Sahil Suri,artellium, Dr. Bernhard Paul Breloer, Christopher Krauss, PhD,Thomas Fischer,ACATIS Investment KVG mbH,Kevin Endler,Eric Endress, PhD,Tungsten Capital Management GmbH,Michael G.,FIRST PRIVATE Investment Management,Richard Zellmann,Christian Schuster,Dr. Sebastian Wenz,Colivar,Mahnoosh Mirghaemi,Dr. Karen Wendt,NNAISENSE,Jonathan Masci,Florian Trifterer

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Join us to hear more about: “The largest opportunities and challenges in digital assets adoption within Swiss wealth management” Panel discussion speakers are: - Belal Mohammed Khan - Sanjeev (Sunny) Karkhanis, CFA, CPA - Marcel Niederberger moderated by Janina Vinklere. Join us on September 25th at 6 pm CET to hear the latest financial and crypto market updates. Register via the link in the comments below. #web3 #digitalassets #crypto #ficas

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CHF/JPY finally broke down. See the chart below. This cross could hit 150 before year end. Japan's cabinet secretary Hayashi hints at higher rates. Some tidbits from the statement: OKYO, July 23 (Reuters) - Broadening pay hikes among smaller firms is crucial, said Japan's top government spokesperson, Yoshimasa Hayashi, underscoring the administration's drive to achieve sustained wage gains. Such gains have been a policy priority for Prime Minister Fumio Kishida's government, in its effort to prevent rising living costs from hurting consumption and derailing a fragile economic recovery. Hayashi's remark came in a Reuters NEXT Newsmaker interview ahead of the Bank of Japan's policy meeting on July 30 and 31, when the board is likely to discuss whether conditions allow it to lift interest rates from current levels near zero. It was crucial for Japan to achieve a "positive" cycle in which firms can pass on higher costs through price hikes, so that they can earn enough to keep raising pay, Hayashi added. "We expect the Bank of Japan to decide specific monetary policy with an eye on what's happening in the economy, and through close dialogue with markets," Hayashi, who is the chief cabinet secretary, said on Friday. "What's important is for a positive cycle to spread a bit more among smaller firms," he said, when asked about the expectations of some market players that the central bank could raise interest rates this month. In a shift away from a decade-long programme of radical stimulus, the Bank of Japan (BOJ) exited negative interest rates and bond yield control in March. Markets are warming to the idea of a rate hike at this month's policy meeting. BOJ Governor Kazuo Ueda has signalled the bank's readiness to hike rates if there is sufficient evidence that wage hikes will broaden, and keep inflation durably around its 2% target. While big firms have offered bumper pay hikes in annual wage negotiations this year, it is unclear whether their smaller counterparts can keep up. Asked about recent yen declines and their impact on the economy, Hayashi said it was desirable for currency rates to move in a way that reflected fundamentals, but declined to comment on whether recent levels were out of line with them. The yen has fallen more than 10% against the dollar this year to languish around 38-year lows, weighed down by the wide difference in interest rates between the U.S. and Japan. Tokyo is suspected to have stepped into the market this month to prop up the yen, which has hovered around 157.50 to the dollar JPY=EBS, after touching a six-week high of 155.375 last week in the wake of suspected intervention. Critics have said its focus on the need to beat deflation has become outdated at a time when Japan has faced inflation exceeding the BOJ's 2% price target for more than two years. #fx #Bank of Japan #higher rates #Japan #CHFJPY #currenices

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All eyes 👀 on German open-ended property funds: How bad would a wave of redemptions be for property prices? Just in time before my former colleagues at Scope Fund Analysis (Sonja Knorr, Stephanie Lebert, Hosna Houbani, CFA) present the results of their annual study on the sector, the FT Lex publishes a commentary that highlights the critical juncture for the massive €300bn (retail & institutional) open-ended property fund sector in 🇩🇪: "Property investor Sam Zell once said that there is no value without liquidity. Illiquid property assets in liquid fund structures seem a fine idea while prices are stable or rising. Cash from new investors means plenty is available for anyone who wants out. When markets sour that equilibrium evaporates. Buildings can take years to sell while investors can ask for cash on demand. Funds in that situation have three unpalatable choices: 1️⃣ sell assets quickly into falling markets, 2️⃣ raise debt or 3️⃣ halt redemptions. After multiple UK property funds were forced to stop withdrawals following the 2016 Brexit vote and in the pandemic, the open-ended sector is much diminished. Assets under management have fallen by around half to €13bn today, according to Morningstar. That figure is dwarfed by the sums sitting in open-ended funds in Germany — where property markets are among the most troubled in Europe 🫣. About €120bn of retail property investment sits in similar open-ended fund structures in the country. Some €0.5bn of money on a net basis was pulled in the first two months of this year, according to Scope. ➡️With the sector experiencing its first meaningful net withdrawals since 2006, protections put in place back in 2014 may be tested.⬅️ 💡Those regulations meant that new investors had a 24-month holding period. Funds also have a 12-month grace period to meet redemptions from those investing since 2014. One disincentive to withdrawing money is that valuations are taken at the redemption date, not when it is requested. This is supposed to make liquidity management easier. Nonetheless, outflows are expected to rise, peaking in the third quarter of this year, thinks Scope’s Sonja Knorr. Liquidity remains robust with €17.3bn or 14% on aggregate — well above the 5% minimum. Average loan to value of 16% is also half regulatory requirements. ⚠️Open-ended property funds for institutional investors could pose a greater risk. They are less regulated, more opaque and contain €180bn of property assets owned by German pension and insurance assets. Redemptions are rising too. Liquidity and LTVs are largely undisclosed but exposure to offices is substantial. This is a waiting game 🪑🏃‍♂️. Investors who are short of cash 💶 are holding out for interest rate cuts. But sharp declines are not a given. The selling pressure could intensify this year." (+++ Opinions are my own. Not investment advice. Do your own research. +++) Tap the bell 🔔 to subscribe to my profile & you'll be notified when I post. 💸

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Our latest Distress Alert report highlights that the number of Swiss companies in financial distress fell from 6.1% to 5.2%. Managing Director Alessandro Farsaci, CFA has been featured in HANDELSZEITUNG, AWP Finanznachrichten AG and Switzerland's Dow Jones, providing insights into the increase in restructuring activities in Switzerland. Read the article: https://okt.to/b1RNZL #AMon #Restructuring #Turnaround #DistressAlert

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The attached note reviews the key developments of 2024 and what it meant for investment returns and has a look at the outlook for 2025. The key points are as follows: The main themes for 2024 were: better than feared growth; global divergence; more disinflation; falling interest rates but with Australia lagging; and more geopolitical threats but not as bad as feared. As in 2023, returns were strong. 2025 is likely to see positive returns, but after the surprising calm of 2024, it’s likely to be far more volatile (expect a 15% or so correction along the way) and more constrained. Expect the RBA cash rate to fall to 3.6%, the ASX 200 to rise to 8800 and balanced super funds to return around 6%. Australian home prices will likely see further softness ahead of rate cuts providing a boost in the second half of 2025. Key things to keep an eye on are: interest rates; recession risk; a potential trade war; and the Australian consumer.

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Great news from Sunfire: The Lightrock portfolio company has secured a €200 million syndicated bonding line, enabling it to scale production, fulfill customer orders, and expand its hydrogen solutions across multiple projects without tying up its own funds as collateral. This financing, led by Commerzbank AG and backed by 80% public guarantees from the German Federal Government and the Free State of Saxony, signals Germany's commitment to the hydrogen market and the sustainable transformation of its industry. Congrats to CEO Nils Aldag and CFO Frank Posnanski for securing the financing. The combination of private and public support reflects the trust earned by Sunfire’s electrolysis technologies. Find a Hydrogen Tech World article about the funding in the comments. #GreenHydrogen #Decarbonization #Electrolysis #Sunfire

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🇨🇭 The Swiss National Bank (SNB) has raised concerns over its low equity in relation to its large balance sheet. President Martin Schlegel has emphasised that extending the SNB's capital base should take priority over distributing profits to the Swiss government and cantons. This comes as the bank considers not making a payout this year, despite posting a solid profit in the first nine months. 🔹 Balance Sheet Size: The SNB’s assets are valued at approximately $940 billion, with the bank's performance highly dependent on global market developments, which can fluctuate quickly. 🔹 Impact of Foreign Currency Purchases: The large balance sheet is primarily the result of foreign currency purchases aimed at reducing pressures on the Swiss franc following the 2008 global financial crisis. 🔹 Monetary Policy Considerations: Schlegel has reiterated that the SNB could take interest rates negative again if inflation remains below its target range. Current Swiss inflation stands at just 0.6%, well within the SNB’s target of 0-2%. 🔹 Impact on Government Payouts: The SNB has skipped distributing earnings to the government in the last two years after posting a record loss in 2022. Schlegel’s recent remarks indicate the possibility of withholding payouts again this year to strengthen the central bank's capital position. 📞 Let IWP help you navigate financial complexities with confidence. Book your free consultation today ➡️ https://lnkd.in/dTmZWFgx #IWP #economy #switzerland

Private markets for Private investors - We think a #diversified exposure to #public and #private assets has its benefits provided liquidity aspects are clarified and understood. We want first ensure the right risk/beta exposure. Astute manager selection may potentially add alpha as the #icingonthecake. #privatemarkets #beta #alpha (when investing, your capital may be at risk) Ring the 🔔 next to my profile picture for occasional snippets on financial markets. Deutsche Bank Deutsche Bank Private Bank

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