Asset Manager

In advance of LuxFlag’s Sustainable Investment Week (LSIW24), which will take place on October 22 and 23, CEO Isabelle Delas discusses the hot topics and challenges in sustainable investing and what’s on the labeling agency’s agenda heading into 2025.

The rapidly declining profitability of traditional asset management is driving European fund houses to accelerate their pursuit of smaller players, with private equity firms becoming key targets in a wave of consolidation.

European asset-backed securities (ABS) are trading at historically attractive levels compared to similarly-rated corporate and government bonds, paradoxically because many see these instruments in connection with the 2008 financial crisis, explained Matthew Wardle, who makes the case for investment-grade structured credit in his role as M&G’s ABS portfolio manager.

Benny Bürocratie is exasperated as his wife drops him off at the Trier bus station. His daughter has been rehearsing for months for today’s school play. Fortunately, his wife can attend and record the event, but Benny has to be in the office.

Private markets have transformed from a niche allocation into a mainstream investment strategy, and this shift is reshaping portfolios globally. Navigating this increasingly crowded space requires a sharp focus on value rather than cost, according to Duncan Lamont, head of strategic research at Schroders.

The Luxembourg Stock Exchange is exploring ways to create public listings of European Long-Term Investment Funds, private market vehicles that for now are the exclusive domain of high-net worth individuals. A senior official said the bourse, also known as LuxSE, sees a particular role for itself when it comes to enhancing the exit opportunities.

The Luxembourg private debt market has reached a new milestone, surpassing 500 billion dollars in assets under management (AuM) according to the 2024 Private Debt Fund Survey, published by KPMG in collaboration with the Association of the Luxembourg Fund Industry (ALFI). The survey reveals a 21.5 percent growth in AuM, reaching 510 billion dollars, continuing its strong upward trajectory despite global market turbulence.

It can hardly have escaped your notice: gold is hot! The gold price is currently breaking record after record, and even the ‘mainstream’ financial media can no longer ignore the yellow metal. But when I read these stories, they mostly raise a lot of questions for me. Are traditional investors really that naive now, or are they deliberately looking the other way?

Investors are spotting opportunities in defence companies, particularly given the continued military support for Ukraine and significant increases in European defence budgets. Long-term revenue prospects appear stable, driven by the ongoing maintenance of military equipment and the need to replenish supplies.

Active bond ETF managers have outperformed their passive counterparts amid the current interest rate climate, driving strong capital inflows and impressive returns. Despite persistent criticism over higher costs, investors appear willing to pay a premium for performance.