Expert Panel

Allocation managers overweighing eurozone stocks have done well so far this year while currency management and off-benchmark exposures like gold have also moved the needle for some. After withdrawals over the previous two calendar years, allocation funds in Europe saw modest inflows over the first three quarters of 2025.

Private equity has never lagged so far behind publicly listed equities in terms of returns. The asset class faces major challenges, including disappointing distributions, higher financing costs, and geopolitical uncertainty. Has private equity lost its shine, or is this just a temporary phase in a cyclical pattern?

During the third quarter of 2025, investors who assumed moderate credit and duration risk were rewarded, as the European Central Bank kept interest rates unchanged at its July and September meetings, while the U.S. Federal Reserve cut rates once in September.

Legislation proposed by Luxembourg in October to enhance the regulatory framework for alternative investment funds and UCITS aims to provide greater flexibility and clarity. The Netherlands, meanwhile, is working on the implementation of AIFMD II.

Emerging-markets hard currency bonds have delivered positive returns for USD investors in every quarter of 2025. However, European-based investors faced negative returns in the first half of the year due to a stronger euro.

Artificial intelligence offers meaningful efficiency in withholding tax recovery, but expertise remains critical. Both elements can (and must) work together.

Equity markets in emerging countries extended their strong performance from the first six months of 2025 into the third quarter, led by heavyweight China, as well as Colombia, Egypt, Peru, Thailand, and South Africa.

Exceptional investment strategies are rare, as reflected in Morningstar’s qualitative fund ratings. Fewer than 6 percent of actively managed funds qualitatively assessed by Morningstar analysts in Europe achieve a High score on both the People and Process pillars, placing them in the highest conviction category.

Amundi and BNP Paribas pursue scale and expertise through mergers, but integration challenges create uncertainty over long-term benefits for investors.

The Belgian Constitutional Court has partially annulled the most recent reform of the Cayman tax, also known as the look-through tax. This creates opportunities for Belgian individuals who invest through the Luxembourg structures Sicav-SIF and Soparfi.