Investment Officer

Central bank gold reserves have risen to their highest level in nearly half a century. Particularly emerging market central banks bought the precious metal big this year, influenced by a strong dollar and international sanctions against Russia.

Although the global economy finds itself in a slowdown phase, it continues to demonstrate resilience thanks to domestic consumption in the US and government relief measures to reduce energy bills in Europe, Guy Wagner, Chief Investment Officer at Luxembourg asset manager BLI - Banque de Luxembourg Investments, said in his latest investment report. Over the next year however, he expects the global slowdown to deepen.

A total of 43 new Reserved Alternative Investment Funds, or Raifs, were registered in Luxembourg during November, indicating that the market for these alternative investments is not slowing down after all, according to data released by Luxembourg Business Register.

Referring to a regulatory environment that is “still evolving”, Amundi, Europe’s largest asset management company, said it has taken a “conservative” step and reclassified almost all of its most sustainable investment funds, worth around 45 billion euro, to Article 8 from Article 9 under the EU’s sustainable finance disclosure regulation.

BOS Wealth Management SA, the Luxembourg-based European wealth management arm of Bank of Singapore, has been handed a 210,000 euro fine by Luxembourg’s financial regulator CSSF for non-compliance with laws designed to fight money laundering and terrorist financing.

Europe’s asset management industry finds itself under a public magnifying glass after a team of international investigative journalists discovered that the most sustainable funds are still investing in polluting companies. Earlier warnings on possible reputation risks, also from specialists inside the sector, now echo loudly, but so does the observation that a lack of clarity in the current sustainability regulations poses significant challenges, both for the industry and investors.

The most predicted recession ever is not coming at all. At least, not in Europe. According to DWS, the record-negative figures do not correspond to the actual state of the economy. “We expect growth, not contraction.”

Following in the footsteps of the European Parliament earlier this month, the Council of the EU on Monday finalised the legislative process by adopting the Corporate Sustainability Reporting Directive, known as CSRD.

Efama, the trade association for Europe’s fund and asset management industry, welcomed the adoption of what it sees as “a crucial piece of the puzzle”, but warned that the industry still faces years of uncertainty because of the “staggered” adoption between the years 2025 and 2029.

Markets for depositary and custodian banking services in Luxembourg are “heavily concentrated”, with the top ten banks holding more than three quarters of all assets, the first ever survey on depositary and custodian services in the grand duchy shows.

A new set of rules - part of an update to the EU’s Mifid 2 directive - took effect in Luxembourg on Tuesday that will set out how banks and asset managers are required to handle their investment products in terms of Environmental, Social and Governance.