Current evaluations by our capital market experts

War against Ukraine

Since Russia's aggression against Ukraine on 24 February 2022, a war has been raging in the middle of Europe. The situation in the Russia-Ukraine conflict is fast moving and not entirely clear. Our capital market experts are continuously evaluating the current events and market developments for you.

Russia on the brink of technical insolvency

Russia on the brink of technical insolvency

Moscow is at risk of defaulting on an international government bond because the US Department of the Treasury has blocked repayments in US dollars. The rouble payments offered would likely lead to a technical default. Legal proceedings are therefore potentially needed in order to settle creditors’ claims. What scenarios should foreign investors expect?

Sanctions – and how to lift them

Sanctions – and how to lift them

Sanctions are easier to impose than to lift. The recent sanctions against Russia illustrate this simple truth. But how can sanctions be used as a flexible instrument for diplomatic purposes, and under what conditions can sanctions be lifted, once imposed, in order to restore normal economic relations?

In the year of the tiger, China goes for growth

In the year of the tiger, China goes for growth

Fresh regulatory pressure from the government in Beijing and the spread of the Omicron variant have plunged the Chinese equity market into turmoil. Nonetheless, Union Investment expects China to remain a driver for global economic growth. But equity investments require careful selection.

Despite everything, equities remain an attractive asset class

Despite everything, equities remain an attractive asset class

The capital markets are being buffeted by the war in Ukraine, macroeconomic trends and the pace of the turnaround in interest-rate policy. Investors therefore need a little extra patience right now. But an actively managed portfolio that focuses specifically on high-quality companies can help to mitigate risk. From a multi-asset perspective, bonds with a short duration and spread products offer good potential for diversification purposes.

Western companies and Russia – a growing exodus and disrupted supply chains

Western companies and Russia – a growing exodus and disrupted supply chains

More than 300 companies have now restricted their operations in Russia in response to the war in Ukraine. In most cases, Russia does not constitute a key sales market or base of production and the losses resulting from the withdrawal should thus be limited. But supply chains are currently very strained and production could therefore be disrupted in individual cases.

Commodity market driven by geopolitical risk premium

Commodity market driven by geopolitical risk premium

Russia’s attack on Ukraine and the introduction of sanctions by western countries has caused a huge jump in commodity market prices. Energy, industrial metals and agricultural commodities are the most affected. The situation is very fast-moving and subject to a great deal of uncertainty due to the possibility of further sanctions.

Putin shocks the global community

Putin shocks the global community

Russia’s attack on Ukraine heralded the arrival of war at the heart of Europe. The aims and intentions of Putin remain unclear. The US and Europe are responding with tough sanctions, including the exclusion of selected Russians banks from the SWIFT payments system. The volatility in the capital markets is likely to continue over the coming days.

Russia-Ukraine conflict: a short comment

Russia-Ukraine conflict: a short comment

On Thursday night, 24 February 2022, the security situation in Eastern Europe intensified significantly. The current situation is therefore highly uncertain: Neither the Russian targets nor the Western countermeasures are clear. The Union Investment Committee continues to reduce risk by temporarily neutralising its equity exposure.

Union Investment verhängt Zukaufsverbot für russische Staatsanleihen & staatsnahe Emittenten

Union Investment prohibits purchase of Russian government bonds and state-backed Russian issuers

Russian government bonds were excluded from our ESG mutual funds quite some time ago. We have now decided to prohibit the purchase of any securities of the Russian government and various state-backed Russian issuers for our mutual funds and all other actively managed portfolios.