Passive investments change market structure and market behaviour

Prof. Dr. Bernd Meyer, Chief Investment Strategist, and Ulrich Urbahn, Head of Strategy & Research, shed light on the impact of increasing passive investing on market structure and behavior.

The importance of passive investments continues to grow. They enable investors to invest quickly, cost-effectively, and supposedly without disadvantage in different asset classes, regions, or segments, even if underlying securities are not very liquid. However, their growing importance is leaving its mark on the behaviour of the overall market and individual securities. Passive investments are one of the drivers of the continuously changing market structure. With a focus on equities, we high-light the key implications of passive investing that investors need to be aware of. However, many findings also apply to bond markets. For active investors, this de-velopment also creates opportunities.

Read the full publication here

Authors

Prof. Dr. Bernd Meyer
Chief Investment Strategist and Head of Multi Asset
Phone +49 69 91 30 90-225
Ulrich Urbahn
Head of Multi Asset Strategy & Research

Multi Asset Flexible

Benefit from a flexible multi-asset strategy with a focus on individual ideas. Strategic long-term positions in attractive capital market segments, especially niches, are supplemented by short-term oriented thematic as well as opportunity-driven positions. Investments are made across all asset classes and regions - deliberately detached from any benchmark and therefore, not based on pre-defined bandwidths for individual asset classes. On portfolio-level, a comprehensive risk overlay is applied on the basis of sensitivities to key risk factors.

Fundname
ISIN | WKN:
Performance
1 year
Volatility
1 year
NAV

Berenberg Variato R A

LU1878856043 | A2N6AQ
Date: 28.05.2024
ISIN: LU1878856043
WKN: A2N6AQ
Performance 1 year: 9.12%
Volatility 1 year: 4.15%
NAV: 127.28 EUR