Wealth Managers

Social responsibility, sustainability, ESG and SRI are more than buzzwords for the world’s leading pension funds. While some still question the current classifications, taxonomies and regulatory timelines, many of these major institutional investors see it as a way to provide stewardship, being a long-term stakeholder in society. “So are we going to be good ancestors? Or not?”

British asset manager Fundsmith follows a simple strategy: invest in strong companies, don’t pay too much and then keep them in the portfolio, preferably forever.

Unregulated alternative investments continued to be dynamic and successful in Luxembourg last year thanks to the modernisation in recent years of the Grand Duchy’s regulatory regime for private markets, consultancy firm PWC Luxembourg noted when releasing the latest version of its Observatory for Management Companies.

Jasmine Kang, Hong Kong-based portfolio manager at Comgest, recently visited Luxembourg and explained to Investment Officer how China sees the current global financial conditions as an opportunity to “decouple” and become more self-sufficient. China’s centrally managed economy is well placed in a world where rising interest rates, surging commodity prices and increasing geopolitical tension continue to haunt global investors.

Accompanying Luxembourg’s finance minister Yuriko Backes on her official visit to Stockholm, Luxembourg’s financial community this week sought to strengthen its financial ties with Sweden, considered a “natural partner” for the Grand Duchy. Backes also discussed plans to support the reconstruction of Ukraine with her Swedish counterpart.

Travelling back to Luxembourg, Backes said on Twitter that her visit had been “very productive.” Backes was accompanied by a Luxembourg for Finance delegation and several representatives of Luxembourg’s financial services sector.

A university-sponsored wealthtech startup based in Liège, Belgium, is keen to make life easier for European fund managers that currently face sleepless nights. In 77 days, in the middle of the summer holidays, additional client suitability requirements will enter into force in the EU. It can change the way wealth managers interact with their clients.

Anthos Fund & Asset Management BV, the asset manager of the Brenninkmeijer family’s holding company Cofra, takes pride in moving with the times. It is working on a major transformation, no mean feat in view of the international laws and regulations. Once the veil is lifted, Anthos will transform from a single to a multi-family office. 

Belgian private bank Degroof Petercam, which has a significant presence in Luxembourg, has warned of ongoing uncertainty in financial markets as a result of Russia’s war against Ukraine, which it said “undermines financial markets”.

The bank has announced a strong increase in net profits for 2021 as revenue growth outpaced rising operating costs. The bank also announced that former CEO and head of private banking Bruno Colmant is stepping down after seven years. Sabine Caudron will take over from Colmant as head of private banking. 

In an interview with Investment Officer, Ritesh Jain, an influential global macro strategist, trend watcher and advisor to family offices and investment companies from India, says that with Russia’s expulsion from the Swift digital payments system, the West is crossing a dangerous divide that will have far-reaching consequences for the global world order. “Globalisation, as we know it, is probably over.”

This week’s relative calm in equity and bond markets is in stark contrast with last month’s turbulence. Investors appear to have put concerns over the war in Ukraine on hold for a while. Some market experts warn however that “sentiment may be too positive”. Illiquid corporate bonds are seen as a safe haven.

The economic consequences of Russia’s invasion of Ukraine gave both equities and bonds a volatile first quarter. Nevertheless, most of the losses incurred were quickly recouped.