Investment Officer

Small-cap stocks in Europe seem to be making a comeback. After two years of declining relative valuations, the usual premium these stocks hold over large caps has vanished, even turning into a discount at the end of last year. However, recent weeks have seen this discount narrow significantly.

European financial services had witnessed a marked decline in global market share over the past 15 years, particularly within the asset management sector. While reviewing the competitiveness of Europe’s financial sector, OMFIF and Luxembourg for Finance have identified Europe’s strengths and weaknesses.

The European Exchange-Traded Fund (ETF) industry has witnessed a remarkable surge in 2023, with assets under management reaching an unprecedented 1,563.5 billion euro. This growth was bolstered by significant estimated net inflows of 155.6 billion euro, according to LSEG Lipper data.

Partners Group, a publicly-traded Swiss private market investment manager that draws a third of its revenue from Luxembourg,  has announced an increase in assets under management of 8 percent to 147 billion dollars as per end 2023. The firm said it experienced a record year in terms of client commitments, attracting 18 billion dollars in new client funds.

Arendt, a law firm specialising in Luxembourg law, has expanded its international presence with the opening of a new office in Frankfurt. This move is aimed at enhancing their services for German-speaking clients and those involved in the German market.

The global wealth gap has alarmingly widened since 2020, with the top five richest men globally having more than doubled their fortunes. In stark contrast, nearly five billion people worldwide experienced a decline in their financial wellbeing, a study by anti-poverty group Oxfam revealed on Monday.

Released to coincide with the World Economic Forum Annual Meeting in Davos, the report painted a grim picture of economic disparity.

The report also said that the world could see its first trillionaire within the next decade. 

The investment landscape of 2023, despite intermittent periods of market volatility and uncertainty, ultimately emerged as a fruitful year for global equity investors. The MSCI World index, denominated in euros, delivered a commendable 19.6% return, culminating in a year that left equity investors with a sense of accomplishment.

This week’s overview of transfers, appointments, promotions, and other people news includes updates from Quintet, Governance.com, Waystone, Crestbridge and PwC Luxembourg.

The latest quarterly report from Efama, the European Fund and Asset Management Association, shows that the global investment fund industry witnessed a slight decrease in net assets, dropping by 0.2 percent in euro terms to 64.33 trillion euro in the third quarter of 2023. This trend was mirrored in US dollar terms with a 2.7 percent decline. 

Deloitte Luxembourg on Monday said it has acquired the fintech practice of Alto Advisory for an undisclosed amount per 1 January 2024. Alto offers software services for depositaries, transfer agents and fund managers.

Yoan Jagoury (photo), Alto founder and its former CEO, has since joined Deloitte Luxembourg as a director.