NEWSLETTER of October 4, 2024
The following content has been added at finexpert:
Studies > Performance
CBRE
GERMAN REAL ESTATE INVESTOR INTENTIONS SURVEY 2024
According to CBRE's 2024 European Investor Intentions Survey, logistics and residential have for the first time overtaken office as the preferred property asset class among European investors. According to the survey, 34% and 28% of respondents indicated a preference for logistics and residential respectively, while only 17% indicated a preference for office. Among office investors, more than half intend to focus on first-class offices in prime locations. In addition, two-thirds of the investors surveyed said they would invest more in alternative property sectors in 2024, with the majority planning to focus on student and senior housing. German investors are mainly focused on residential (39%), industrial and logistics (27%) and office (22%). >more
Studies > Corporate Finance
PwC
EMISSIONSMARKT DEUTSCHLAND Q3 2024
The slump on the German issuing market continues: The Frankfurt Stock Exchange did not record a single initial public offering (IPO) in the third quarter of 2024 either. The last time there was a dry spell with two consecutive quarters without an initial listing was between the end of 2019 and the beginning of 2020 at the start of the coronavirus pandemic. The downward trend is also continuing in terms of capital increases. These are the findings of the “Issues Market Germany” analysis, for which the auditing and consulting firm PwC records new share issues and capital increases by companies with a primary listing on the Frankfurt Stock Exchange on a quarterly basis. >more
Studies > Macro
Allianz Research
GLOBAL ECONOMIC OUTLOOK 2024-2026: THE GREAT BALANCING ACT
The US economy is slowing but will remain the main support to the global economy in 2024. Momentum is gradually building in Europe, though Germany will remain the exception, with the economy only exiting recession by the end of 2024. Domestic demand continues to slow in China as policy easing can only partly compensate for the headwinds brought on by the continued real estate crisis. >more
Studies > Macro
DIW Berlin | ifo Institut | IfW Kiel | IWH | RWI
GEMEINSCHAFTSDIAGNOSE HERBST 2024: DEUTSCHE WIRTSCHAFT IM UMBRUCH – KONJUNKTUR UND WACHSTUM SCHWACH
The Joint Economic Forecast Project Group predicts that Germany's gross domestic product will fall by 0.1% in 2024. For the next two years, the institutes expect a weak recovery with growth of 0.8% (2025) and 1.3% (2026). Compared to the spring forecast, this represents a downward revision of 0.2 (2024) and 0.6 (2025) percentage points. >more
Research Papers > Corporate Finance
THE LESS-EFFICIENT MARKET HYPOTHESIS
Clifford S. Asness
2024
Market efficiency is a central issue in asset pricing and investment management, but while the level of efficiency is often debated, changes in that level are relatively absent from the discussion. I argue that over the past 30+ years markets have become less informationally efficient in the relative pricing of common stocks, particularly over medium horizons. I offer three hypotheses for why this has occurred, arguing that technologies such as social media are likely the biggest culprit. Looking ahead, investors willing to take the other side of these inefficiencies should rationally be rewarded with higher expected returns, but also greater risks. I conclude with some ideas to make rational, diversifying strategies easier to stick with amid a less-efficient market. >more
Research Papers > Corporate Finance
SUSTAINABLE INVESTING: EVIDENCE FROM THE FIELD
Alex Edmans, Tom Gosling, and Dirk Jenter
2024
We survey 509 equity portfolio managers from both traditional and sustainable funds on whether, why, and how they incorporate firms’ environmental and social (“ES”) performance into investment decisions. ES performance influences stock selection, engagement, and voting for over three quarters of investors, including nearly two thirds of traditional investors. Financial considerations are a primary reason, even among sustainable funds. Few are willing to sacrifice financial returns for ES performance, largely due to fiduciary duty concerns, and voting and engagement are mainly driven by financial considerations. A second reason is constraints. Fund mandates, firmwide policies, or client wishes caused 71% to make stock selection, voting, or engagement decisions that they would otherwise not have. Some of these actions had financial consequences, such as avoiding stocks that would improve returns or diversification; others had ES consequences, such as avoiding stocks whose ES performance they could have improved. >more