Opinion

I had to double-check my Bloomberg screen. But it was there indeed, Dutch central bank chief Knot indicated in a recent Bloomberg interview that further monetary tightening after the ECB meeting in July is anything but guaranteed. And that, coming from the most hawkish member of the ECB’s Governing Council.

According to research, a typical board director in the Luxembourgish fund industry is a 53-year-old European man with 22 years of work experience (who probably plays golf). Their role is to ensure investors avoid the rough and get to the green safely. 

Failure results in a penalty stroke from the CSSF.

Just over one year into his tenure as Chief Executive Officer at Quintet, Chris Allen has unveiled a significant next move for the Luxembourg-headquartered private bank. The partnership he has brokered with BlackRock aims to inspire a fresh way of working in its five main markets, one that respects the nuances of domestic investment cultures.

The European Central Bank (ECB) may not openly acknowledge it, but behind the scenes, goodwill is slipping away. Goodwill represents the intangible, invisible value of a company. When applied to a central bank, it refers to the willingness to make unpopular decisions in the short term, such as raising interest rates when inflation skyrockets. Since 2021, the ECB has squandered much of its goodwill, but during June, it has managed to regain a fraction of it.

One of my first lessons in finance was that you cannot consistently outperform the market. When it does occur, it is the result of luck rather than skill. You are better off investing in passively managed funds than those actively run by gurus and clairvoyants.

I’m a big fan of the Bank of America Global Fund Manager Survey. Firstly, because it pertains to the positioning and perspectives of real investors managing significant amounts of money. And secondly, because Bank of America tries to translate the responses given in the survey into signals and even investment decisions—something often overlooked by many “storytellers.”

The fund industry is a poster child for digital transformation. The industry is characterised by easy-to-follow processes and a high degree of automation. With just a few clicks, investors and auditors can interact with fund managers seamlessly.

Sounds exciting. The reality though is quite different.

Benefiting from a favourable business climate, robust infrastructure, and a strategic position as a gateway to Europe, the Netherlands presents enticing options for fund managers seeking practical and tax-friendly solutions in the alternative investment fund (AIF) space, write Tom Loonen and Jan Saalfrank of Pinsent Masons.

It is not easy for Luxembourg, home to 5,139 billion euro in international fund assets at the end of April, to maintain its international leadership as cross-border funds centre.

Competition between Luxembourg and Ireland, Europe’s other international funds hub, is a topic that re-emerged on two separate axes this week in our coverage at Investment Officer.lu.

To give me a better life than they had, my parents helped me develop a strong work ethic and invested heavily in my education. Just like them, at the age of 30, I bought a 4-bedroom house suitable for raising a family in. Their investment paid off.

If only this was true.

Education

My parents moved from Ireland to Luxembourg in the 1980s. Even though they did not receive a higher education, they were quickly able to find jobs and subsequently buy a house and raise a family. I wish I could do the same.