Mechanisms of Asset Management in EU After Unprecedented Period


The unfolding of the COVID-19 pandemic in Europe in early 2020 caused massive social and economic disruption in a region that was still reeling from the effects of the global financial crisis of 2008-2009 and the commodity price shock of 2014-2015. Economic performance in the aftermath of the shocks suggested that the economic and cyclical growth trajectories characteristic of most countries in the region had begun to decline even before the pandemic: trend GDP growth slowed, productivity growth slowed, inequality worsened, and rapprochement with OECD and EU countries dragged on . Below we will talk about asset management in EU after unprecedented period. In particular, about new trends and how these mechanisms have changed in general.The crisis caused by the COVID-19 pandemic has been a shock to our way of life and worldview. Employers’ and business organizations (EBOs) around the world are at the forefront of helping the businesses they represent weather the storm; in addition, they help respond by partnering with governments to inform, manage immediate risks to human health and well-being, save businesses, and save jobs.If you want to find out more about stuff like this you can Visit this website.

The European Commission, in order to preserve the business environment during the pandemic, has opened a consultation on an updated strategy for sustainable financing of special projects in Europe. It is based on the Commission’s 2018 Financing for Sustainable Growth Action Plan. The updated sustainable finance strategy provides new methods to increase private investment in sustainable projects and activities to support the various actions outlined in the European Green Deal, as well as to manage climate and environmental risks and integrate them into the financial system. The initiative will also provide an additional incentive framework for the Green Deal European Investment Plan.


ESMA has updated its risk assessment for COVID-19

If you decide to start investing in Europe during the pandemic, you should know that:

  • COVID-19, combined with the assessment risks identified in previous ESMA assessments, has led to major stock market adjustments since mid-February, driven by a sharp deterioration in consumer, business and economic environment outlooks.
  • ESMA predicts high operational risks given the growing reliance on remote work arrangements, even if business continuity plans are widespread. To what extent these risks continue to materialize will critically depend on two factors: the economic impact of COVID-19 and any occurrence of additional external events in the global environment.

If you are interested in obtaining a fund asset manager license in Europe, please note that performance has declined by asset class in line with market valuation. UCITS bonds and ETFs had to deal with massive outflows. MMFs (Money Market Funds) have faced significant challenges. A number of fund managers have started using liquidity management tools.


New principles of asset management

The current crisis has highlighted all the flaws in real estate management. It became clear where the weak points lie: in the positioning of the object, in its content or location. To remedy the situation, it will be necessary to change the approach to property management. This is especially true for those facilities that have endured the pandemic worse than others.

Despite the fact that business in almost any of its manifestations survived the disaster, then the situation in European real estate markets will improve. This will be especially noticeable in countries such as Austria, Germany, Switzerland and the Scandinavian countries. These economies have weathered the hardships of the “coronacrisis” most easily.

Against the backdrop of the COVID-19 pandemic, global cross-border banks’ claims soared in the first quarter 2020. The volume of international bank loans is measured on the basis of regional banking LBS statistics that follow residency-based balance of payments concepts and track the claims (assets) and liabilities of banks located in a particular country.

However, it is likely that demand in the economy will be more widely affected. Investments can be delayed or canceled, with both immediate and long-term implications for asset management, GDP levels and overall profitability growth for these companies.