"Return ON the money or Return OF the money ?"
Asset Management also known as the "Buy-side" covering Pensions, Insurance and all breeds of Funds have also been heavily impacted by the multiple monetary and fiscal booms since the GFC.
On the one hand most assets' risk premiums have shrunk and asset valuations have skyrocketed leading some funds' closure for lack of returns and a shift toward riskier asset including illiquid Debt and Equity products (Private Equity, Venture Capital... etc..). Furthermore there has been a powerful trend towards passive asset management (ETFs, trackers, algos and high-frequency) and out of the traditional discretionary management.
On the other hand, Public debts have been promoted and systemically favored as 'safe assets' by the various regulators while governments were buying growth with ever more deficits and debts.
In recent history also Islamic Finance and Environmental, Sustainable and Governance ("ESG") assets have also flourished as 'responsible investments' in different parts of the world, introducing non-financial components in the list of investment criteria.
'Money never sleeps' and in this section we decipher the trends, the opportunities and the pitfalls of this investment ecosystem in the current cycle.
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