Investment Officer

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.

M&G said it will introduce an additional set of ESG exclusions to its M&G (Lux) Optimal Income fund managed by Richard Woolnough. 

Real Estate Investment Funds, or Reifs, in Luxembourg saw total assets climb by 26 percent in the year running up to the end of the third quarter, to 131 billion euro. The number of Reifs increased by 20 percent to 621 funds.

The latest edition of the Reif survey conducted by the Association of the Luxembourg Fund Industry, or Alfi, showed that multi-sector allocations remain the most popular strategy for Reif investors, with 49 percent.

The European Union’s Court of Justice on Tuesday ruled that private information on the ultimate ownership of companies and investment funds registered in the Luxembourg Business Register does not always need to be made available to the general public. The court ruled that fundamental rights of individuals can sometimes outweigh the general interest of fighting money laundering.

To make sure investors are not misled, the European Union’s top supervisory authority for investment funds and asset management has stepped up its approach against greenwashing and proposed criteria for using ESG or sustainability-related terms in fund names. “The objective is to ensure that investors are protected against unsubstantiated or exaggerated sustainability claims,” Esma said.

 All of Fidelity International’s sales offices are now supported from Luxembourg, which has a “hub” function in the asset manager’s organisation. A new reorganisation was implemented this year. 

This is confirmed by Sanela Kevric, who has been head of the Benelux region since 2022. She said she is supported by two experienced sales directors based in Brussels and Amsterdam, and by a marketing team and sales support. The Benelux remains one of Fidelity’s strategic markets, she said. 

A widening equity gap and a subdued securitisation market are clear signs that the European Union is failing to deliver on its ambitious Capital Markets Union plan to boost the popularity of risk capital and financial markets, a fresh industry report warned on Thursday.

Europe’s largest asset manager Amundi has appointed Olivier Brouwers as its chief executive officer in Belgium. In this role, Brouwers will also be responsible for Amundi’s business development in Luxembourg.

Government bonds classified as sustainable or ESG securities continued to win market share during the third quarter as more of them were issued while the total amount issued in fresh state debt in Europe  declined.