Investment Officer

Figures published by the supervisory Commission de Surveillance du Secteur Financier show that Luxembourg-registered investment funds were managing approximately 4,670 bn euro in November 2019. 

Ever since 1998, Luxembourg has been gaining influence and volume as a hub for investment funds, showing next to no downturn in the process. In 1998, the total amount of capital managed by Luxembourg investment funds was approximately 500 bn euro. 

Equity markets are starting 2020 on an optimistic note. Investors are celebrating the preliminary US-China trade deal and equities are trading at record highs. Investment Officer asked three prominent investors  representing global asset managers for their views. Today, we ask Stefan Kreuzkamp, CIO of DWS.

2020 will probably not be a great year for bonds. The low interest rates could even precipitate a shock to the financial system eventually. The outlook for equities is somewhat more promising, even though it’s difficult to grow earnings in the current low-growth environment, says Chris Iggo, CIO of AXA IM, in the second part of our 2020 outlook series. 

The world economy is showing signs of recovery. Over the fourth quarter, investors have anticipated a more stable macro environment by driving up equity market valuations. The ‘very large Phase One Deal’ that was announced by President Trump on Twitter earlier this month may not be as comprehensive as suggested. But markets have given Trump the benefit of doubt and have continued to move up.

CapitalatWork is investigating the possibility of making small acquisitions in the Netherlands. The Belgian asset manager states it already has sufficient critical mass in its home market and the Luxembourg market, but is also looking at acquisition opportunities there.

This according to CEO Maarten Rooijakkers and CIO Erwin Deseyn (photo) of CapitalatWork in an interview with Investment Officer.

Factor investing in bonds is making inroads with both institutional and wholesale investors, according to a study by Invesco. However, there’s still a perceived lack of suitable products.

The year 2018 saw a 37% jump in the number of worldwide single family offices to no fewer than 7,300. Altogether family offices manage assets of nearly 6 trillion dollars.

Millennials are more interested in thematic investing than other age groups. Especially funds that focus on sustainability, education, infrastructure innovation, food and urbanisation are popular with Generation Y.

This transpires from the results of a study by Schroders among 25,000 investors who plan to invest at least 10,000 euros in the coming year.

Luxembourg banks want to work together to create common standards on certain compliance-related functions, a survey by the Luxembourg Bankers’ Association ABBL among its member showed. 93% of respondents said they see such cooperation as ‘valuable for the financial services community’.

Luxembourg’s banks are not yet reaping the benefits of Brexit as Brexit-related additional costs are outstripping the rise in revenues. This has led to a year-on-year decline of 5.4% in banks’ profits in the third quarter of 2019, according to CSSF figures.