The AMF launches an offensive against “greenwashing”

The AMF launches an offensive against “greenwashing”

Responsible finance has become a major business focus for asset managers. The Autorité des marchés financiers wants to ensure the sincerity of marketing discourse, but there is no consensus on its new doctrine. Could “greenwashing” disappear in French financial products? In any case, this is the objective of the Autorité des marchés financiers (AMF) which published a new doctrine on Wednesday morning governing the information to be provided to investors for collective investments claiming to…

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American banks rush to the rescue of their money market funds

American banks rush to the rescue of their money market funds

Goldman Sachs and BNY Mellon have bailed out several of their money market funds, a vital cog in short-term financing for large corporations and a source of liquidity for investors. The Fed has launched a support program for the sector. Money market funds, usually one of the most stable segments of the financial sector, are not immune to the pressures affecting the bond markets. These so-called “prime” corporate debt funds recorded outflows of more than…

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Faced with the coronavirus, US venture capital is trying to limit the damage

Faced with the coronavirus, US venture capital is trying to limit the damage

VCs break down their portfolio by deciding who to help in priority in the face of the economic crisis caused by Covid-19. Large funds like Sequoia, Benchmark or Kleiner Perkins, should come out without scratching but the “limited partners” could freeze their investments in funds with less established performances. Faced with the economic crisis caused by the Covid-19, the venture capital funds of Silicon Valley have only one word to say: breakdown of the portfolio….

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Coronavirus: European funds face historic withdrawals

Coronavirus: European funds face historic withdrawals

Investors withdrew nearly € 290 billion from European open funds in March, a historic record. The flight of investors combined with the fall in the markets represents a double penalty for the sector. An unprecedented hemorrhage. European open funds accused nearly 290 billion euros of outflow in March, a historic record, according to Morningstar data provided exclusively to “Echoes”. Active or passive funds, ESG or not, all recorded outflows, often massive, over the past month….

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Regulators fear another liquidity crisis in Europe

Regulators fear another liquidity crisis in Europe

The flight of investors at the start of the crisis put European funds, particularly corporate debt and real estate funds, under pressure. Regulators want to ensure that a new wave of withdrawals does not jeopardize the stability of the financial industry. The wind of panic that shook the financial markets in March had a major impact on asset management. Supervisors gathered within the European Systemic Risk Board (ESRB) are now worried about the impact of…

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How money market funds averted disaster

How money market funds averted disaster

Essential links in short-term financing, money market funds found themselves caught between investors’ need for liquidity and the freezing of bond markets. Only the intervention of the ECB made it possible to avoid the debacle. Monetary funds narrowly avoided the industrial accident in mid-March. At the height of the financial crisis, these essential links in the financing of the economy found themselves on the edge of the precipice, faced with the difficulty of selling assets…

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How negative rates have weakened fund liquidity

How negative rates have weakened fund liquidity

The panic that gripped investors in March led to massive outflows of funds, on average larger than their cash reserves. By discouraging funds from buying safe assets, negative rates have weakened their liquidity cushions. The financial crisis linked to the coronavirus pandemic has highlighted the vulnerabilities of investment funds. Between February 20 and March 20, investors withdrew tens of billions of euros from European funds before central bank intervention calmed markets. Exits sufficient to trigger…

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The new generation of listed funds arrives in the United States

The new generation of listed funds arrives in the United States

Less transparent than traditional ETFs, these new listed index funds combine the simplicity of ETFs with the complexity of active management. The biggest asset managers like BlackRock and Fidelity are already in the running. In the United States, the marriage of active management and ETFs is being emulated. Several actively managed and non-transparent listed funds (ETFs) have been authorized by the SEC, the US policeman of the financial markets. An innovation that arouses envy: BlackRock,…

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