The expert for institutional investors
As one of the most experienced German fund managers, Union Investment has acted as a professional asset management partner to institutional investors for decades. Efficient risk management is a particularly important component of all our investment processes.
Market news and expert views: September 2021
Economy, growth, inflation and monetary policy – the monthly report ‘Market news and expert views’ will keep you informed about the latest developments and our expert assessments. It will also give you a comprehensive review of and outlook for the relevant asset classes. (As at 27 August 2021)
Neutral risk positioning with a more cautious trend
At its regular meeting in August, the Union Investment Committee reaffirmed its neutral risk positioning. The UIC’s overall stance is now more cautious than at the end of last month. The reasons for this step were the slowing pace of growth, the spread of the delta variant of COVID-19 and the debate about scaling back bond purchases by the Fed getting louder.
Fast fashion – no longer in vogue
Fast fashion still has many fans. That is why it remains a fast-growing and successful part of the business for many fashion companies. But harm to the environment, non-transparent supply chains, and working conditions that are increasingly viewed as problematic are giving more and more consumers and investors pause for thought.
Monetary policy lines are starting to diverge
The robust economic recovery is not going unnoticed by the world’s central banks. Is the end of ultra-expansionary monetary policy approaching? Against the impressive backdrop of the Teton mountain range in the Rocky Mountains, central bankers, economists and politicians will meet from 26 to 28 August in the US resort of Jackson Hole to discuss this question.
A new chapter for the equity markets
The coronavirus pandemic has set new parameters for equity investment: The prospect of further growth and rising inflation is fuelling the stock market rally. Key risk factors include inflation targets being overshot and exaggerated valuations. But overall, equities remain a preferred asset class.
CCUS – (no) climate saviour?
Far too much CO2 is still being released into the atmosphere. Technologies to reduce emissions are rare. One of them is Carbon Capture Utilisation and Storage (CCUS). But can CCUS really be the saviour - especially for energy-intensive sectors?
Commodities – an integral part of strategic allocation
Commodities can contribute significantly to the diversification of a portfolio. And in times of rising price levels, commodities also offer a certain degree of protection against inflation. Union Investment’s Commodities-Invest fund provides institutional investors with broad access to the commodity market.
EU grasps the nettle of climate change
The European Union (EU) is putting forward a comprehensive package of climate legislation. Whilst still only proposals, the Commission’s measures signal the kind of transformation that climate change demands of us. A difficult and drawn out ratification process seems certain.
The great rotation
Growth stocks have clearly outperformed value stocks since the financial crisis and maintained their lead during the initial turmoil of the coronavirus pandemic. But since November 2020, the tide has been turning. Our analysis provides explanations and assesses potential future trends.
Union Investment given A+ rating by PRI
The United Nations Principles for Responsible Investment (PRI) initiative has awarded Union Investment its top mark of A+ in recognition of the companys overarching approach to responsible investment.
FNG Label 2020
Six Union Investment funds received the FNG Label of approval for sustainable investment funds. Mutual funds that have been awarded the Sustainable Investment Forum (FNG) Label comply with the quality standard it has developed for sustainable investments in the German-speaking countries.