Latest news with #IainWithers
Yahoo
3 days ago
- Business
- Yahoo
Global investors launch Europe defence funds to profit from rearmament
By Iain Withers LONDON (Reuters) -BlackRock and BNP Paribas have become the latest asset managers to launch exchange-traded funds focused on funnelling cash into Europe's defence industry, with at least nine new funds created in the last seven months. European governments are ramping up spending on ammunition, tanks and other arms in response to deepening geopolitical tensions and U.S. President Donald Trump's warnings that they should not rely so much on Washington. This has prompted money managers to tap into growing investor demand to profit from the region's rearmament drive. Asset managers offer more than 50 defence industry ETFs globally, but Europe-focused products are a recent trend, with nine launched since late last year, according to company releases and data from Morningstar Direct. The world's largest asset manager BlackRock and the fund arm of French bank BNP Paribas said their launches were in response to increased demand. Amundi and WisdomTree had earlier launched similar products. ETFs are a fast-expanding part of the investment market, offering investors exposure to an index of stocks or bonds without having to pick individual assets. Investors globally have ploughed an additional $8.4 billion into defence ETFs so far this year, of which $2.7 billion has been put into the new European-focused products, according to Morningstar data. The overall $8.4 billion is more than double the $4.1 billion added over the whole of 2024, the data shows. The BlackRock European product, launched under its iShares platform, listed in Amsterdam and Frankfurt on Wednesday, according to a statement from the product index provider STOXX. BNP Paribas' asset management arm said in a statement on Tuesday that it had listed in Paris an ETF focused on European defence and would soon list it in Germany, Italy and Switzerland. The fund will focus on financing defence companies within European NATO member states, BNP said. Defence stocks have soared in value this year, helping to attract money managers offering new investment products. Fund managers including Allianz and UBS have also ditched some prior exclusions on investing in defence.
Yahoo
21-05-2025
- Business
- Yahoo
Europe gains traction amid doubts over US assets, global money managers say
By Iain Withers and Sinead Cruise LONDON (Reuters) -Asset managers at Goldman Sachs and JPMorgan are fielding more investor enquiries about the resilience of U.S. assets and helping clients move more money to Europe ahead of more potential trade-related market turmoil, executives said. The clock is ticking on President Donald Trump's 90-day pause on "reciprocal" tariffs that threaten to upend global trading ties and deepen the trade conflict between the world's biggest superpowers. U.S. assets plummeted in April after economists slashed odds on the likelihood of a U.S. recession, leading some investors to seek refuge in perceived safe havens, such as gold and relatively undervalued European stocks and bonds, executives said during separate media events held in London this week. Markets have rallied back since Trump eased many of the tariffs but that has only partially restored confidence, executives said. Some investors have begun hedging the dollar, taking profits on U.S. companies, allocating more capital to Europe and Asia, and holding more cash, they said. "I would say the average client is looking to maybe trim (U.S.) exposure, just a little bit, put a little bit more into Europe, maybe a little bit more into Asia," said Matt Gibson, head of the client solutions group at Goldman Sachs Asset Management. "Everyone is thinking. Some are acting. But nobody that I have seen is full-out exiting the U.S.," Gibson said, flagging client queries on whether a U.S. stock market boom led by the so-called Magnificent 7 of top tech stocks had "run its course". Investors in Europe have flipped their preference from U.S. to European-focused exchange-traded funds (ETFs) so far this year, according to Morningstar data shared with Reuters, as they diversified portfolios amid unpredictable U.S. policymaking. European equity ETFs have pulled in 34 billion euros ($38.6 billion) of additional cash over the year to May 16, four times the 8.2 billion euros put in U.S. equity funds. In 2024, net flows into U.S. equity funds in Europe had dominated by a ratio of more than 8:1 over locally-focused products. Executives at JPMorgan Asset Management also said they had seen stronger client interest in Europe, including investments in private assets, as countries, such as Germany unveiled bigger spending plans. "We are certainly getting more questions about investing in Europe," said Brandon Robinson, deputy global head of private markets. Goldman Sachs Asset Management has been discussing with clients how to put asset and currency hedges back into portfolios to mitigate risks, multi-asset co-Chief Investment Officer Alexandra Wilson-Elizondo said. ($1 = 0.8820 euros)
Yahoo
21-05-2025
- Business
- Yahoo
Europe gains traction amid doubts over US assets, global money managers say
By Iain Withers and Sinead Cruise LONDON (Reuters) -Asset managers at Goldman Sachs and JPMorgan are fielding more investor enquiries about the resilience of U.S. assets and helping clients move more money to Europe ahead of more potential trade-related market turmoil, executives said. The clock is ticking on President Donald Trump's 90-day pause on "reciprocal" tariffs that threaten to upend global trading ties and deepen the trade conflict between the world's biggest superpowers. U.S. assets plummeted in April after economists slashed odds on the likelihood of a U.S. recession, leading some investors to seek refuge in perceived safe havens, such as gold and relatively undervalued European stocks and bonds, executives said during separate media events held in London this week. Markets have rallied back since Trump eased many of the tariffs but that has only partially restored confidence, executives said. Some investors have begun hedging the dollar, taking profits on U.S. companies, allocating more capital to Europe and Asia, and holding more cash, they said. "I would say the average client is looking to maybe trim (U.S.) exposure, just a little bit, put a little bit more into Europe, maybe a little bit more into Asia," said Matt Gibson, head of the client solutions group at Goldman Sachs Asset Management. "Everyone is thinking. Some are acting. But nobody that I have seen is full-out exiting the U.S.," Gibson said, flagging client queries on whether a U.S. stock market boom led by the so-called Magnificent 7 of top tech stocks had "run its course". Investors in Europe have flipped their preference from U.S. to European-focused exchange-traded funds (ETFs) so far this year, according to Morningstar data shared with Reuters, as they diversified portfolios amid unpredictable U.S. policymaking. European equity ETFs have pulled in 34 billion euros ($38.6 billion) of additional cash over the year to May 16, four times the 8.2 billion euros put in U.S. equity funds. In 2024, net flows into U.S. equity funds in Europe had dominated by a ratio of more than 8:1 over locally-focused products. Executives at JPMorgan Asset Management also said they had seen stronger client interest in Europe, including investments in private assets, as countries, such as Germany unveiled bigger spending plans. "We are certainly getting more questions about investing in Europe," said Brandon Robinson, deputy global head of private markets. Goldman Sachs Asset Management has been discussing with clients how to put asset and currency hedges back into portfolios to mitigate risks, multi-asset co-Chief Investment Officer Alexandra Wilson-Elizondo said. ($1 = 0.8820 euros) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
British pension funds pledge to step up UK investments
By Iain Withers LONDON (Reuters) -Major British pension funds pledged on Tuesday to invest billions of pounds extra in UK businesses and infrastructure, as the government leans on private investors to help it fund public projects and boost economic growth. Seventeen investment firms said they would invest up to 10% of their pension portfolios into infrastructure, property and private equity by 2030, of which half will be ringfenced for UK assets, according to a government statement. The pact is backed by investment firms including Aviva, Legal & General and M&G and would unlock up to 50 billion pounds ($66 billion) of additional investment, the government estimated. The Mansion House Accord - which builds on an earlier pact in 2023 - is currently voluntary, but the government said it would monitor progress against the commitment and it would be "reinforced" by further measures in an upcoming pensions review. The Financial Times and other media have reported that the government is considering giving itself the power to force pension funds to invest more in UK projects, which has concerned some executives who argue this would not be in the best interests of clients. "We believe it is right to focus on efforts to unlock more domestic investment, but we believe the most sustainable solution lies in creating the right incentives, not mandates," a spokesperson for one of the signatories, Phoenix, said. Britain's finance ministry was not immediately available for comment on the matter. British finance minister Rachel Reeves said in a statement that the pact would help channel billions of pounds into major infrastructure projects, clean energy and startup businesses. The new pact doubles the previous Mansion House investment target of 5% of pension pots on productive assets and broadens the range of applicable assets. Other signatories include some of Britain's biggest pension funds, the Universities Superannuation Scheme, the National Employment Savings Trust and The People's Pension. ($1 = 0.7575 pounds) Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Mint
12-05-2025
- Business
- Mint
British pension funds pledge to step up UK investments
* UK government says pact will unlock 50 billion pounds * Aviva, Legal & General and USS among the signatories * Stops short of order for now, pension funds opposed By Iain Withers LONDON, - Major British pension funds pledged on Tuesday to invest billions of pounds extra in UK businesses and infrastructure, as the government leans on private investors to help it fund public projects and boost economic growth. Seventeen investment firms said they would invest up to 10% of their pension portfolios into infrastructure, property and private equity by 2030, of which half will be ringfenced for UK assets, according to a government statement. The pact is backed by investment firms including Aviva , Legal & General and M&G and would unlock up to 50 billion pounds of additional investment, the government estimated. The Mansion House Accord - which builds on an earlier pact in 2023 - is currently voluntary, but the government said it would monitor progress against the commitment and it would be "reinforced" by further measures in an upcoming pensions review. The Financial Times and other media have reported that the government is considering giving itself the power to force pension funds to invest more in UK projects, which has concerned some executives who argue this would not be in the best interests of clients. "We believe it is right to focus on efforts to unlock more domestic investment, but we believe the most sustainable solution lies in creating the right incentives, not mandates," a spokesperson for one of the signatories, Phoenix, said. Britain's finance ministry was not immediately available for comment on the matter. British finance minister Rachel Reeves said in a statement that the pact would help channel billions of pounds into major infrastructure projects, clean energy and startup businesses. The new pact doubles the previous Mansion House investment target of 5% of pension pots on productive assets and broadens the range of applicable assets. Other signatories include some of Britain's biggest pension funds, the Universities Superannuation Scheme, the National Employment Savings Trust and The People's Pension.
