Raymond Frenken

Luxembourg-based fund services firm Fuchs Asset Management, which saw its parent company enter liquidation in July, is embarking on a new chapter through a strategic partnership with Trustmoore, a fund services company headquartered in Amsterdam.

Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF) announced on Monday that Marco Zwick’s mandate as the director in charge of supervising investment funds has been renewed for an additional five years, effective from September 1, 2023. Zwick has been serving in this role since 2018. CSSF meanwhile also said that a decision on the renewal of the mandate for its chief bank supervisor, Claude Wampach, was made in July per royal decree.

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Amundi is continuing to transfer Exchange Traded Funds (ETFs) with exposure to U.S.-based companies from Luxembourg to Ireland. A significant part of this migration, involving €6.58 billion across two ETFs, was announced last week.

The European Central Bank is most likely done hiking interest rates, analysts said following the decision in Frankfurt to raise its three benchmark eurozone interest rates by 25 basis points. Euro bond markets rallied while the euro fell against the dollar amid expectations that eurozone rates now have peaked and that any subsequent move in market interest rates will be a cut, although that may take some time.

The upcoming meeting of the European Central Bank (ECB) promises to be one of the most consequential in recent times, underlining the difficult trade-offs the institution must consider amidst an environment of high inflation and stalling economic growth. Analysts and market watchers are sharply divided on what course of action the Governing Council will take on Thursday, making this meeting especially fraught with uncertainty.

Verena Ross, the chair of the European Securities and Markets Authority, Esma, has laid out a robust European framework for improving financial markets, boosting trust and transparency. But in a speech in Germany on Monday, she also identified the industry’s sluggish response to digitalisation and “greenwashing” as barriers to progress.

Pension funds are keen for asset managers to increase allocations to India, some advocating for a 20% allocation in their emerging markets portfolio. India’s growth trajectory could potentially eclipse China’s, given its focus on the service sector rather than manufacturing. At its European Media Forum on Friday, Edinburgh-based Baillie Gifford also acknowledged burgeoning opportunities in Latin America and Indonesia, particularly due to the increasing connectivity and the unfolding global energy transition.

In a high-profile executive shuffle, Pierre Jond has been named the new Chief Executive Officer of Amundi Luxembourg, and chairman of Fund Channel, the B2B fund distribution platform jointly owned by Amundi and Caceis. The appointment took effect on September 1. 

Jond succeeds Jeanne Duvoux, who is transitioning to a new role as Head of Business Support & Operations for Amundi Group, Europe’s biggest asset manager with approximately 2,000 billion euro in assets under management.

Just returned from your sun-soaked holiday? Luxembourg’s asset scene is heating up, and not just due to the weather. Dive into our latest analysis, covering everything from the CSSF’s game-changing valuation order to shifting ETF trends. This column is your essential back-to-work read!