Asset Manager

Luxembourg has been outpaced in the development of exchange-traded funds by Ireland. However, steps have been taken to improve Luxembourg’s offer. Investment Officer has spoken with people involved in the recent launch of a new Luxembourg-domiciled Ucits-compliant collateralised loan obligation (CLO) exchange-traded fund (ETF), which benefits from two-year-old changes to Luxembourg’s securitisation law.

This week’s overview of transfers, appointments, promotions and other career news in the fund and asset management community in and around Luxembourg includes updates from Alfi, Marsh McLennan, EY Luxembourg and Amundi.

European asset managers must pursue economies of scale to stay competitive with their US counterparts, argues Vincent Juvyns, a market strategist at JP Morgan Asset Management. Fragmentation across Europe’s capital markets is also a key issue that hinders competitiveness, he says.

French banks are making significant strides that could reshape the European asset management landscape. The acquisition of AXA Investment Managers by BNP Paribas heralds a new era under Basel III regulations, according to Mediobanca Andrea Filtri. “The once-forbidden dream is now reality, opening new horizons for mergers and acquisitions,” he said.

Gregory Kennedy reflects on cross-border commuting in Luxembourg, where once attractive border towns now face eroding quality of life.

The stock market is going through turbulent times, especially within the large technology stocks segment. Nevertheless, a soft landing seems to be in the offing. Investors are already anticipating a possible rebound, especially among US cyclical stocks and smallcaps.

The Federal Reserve has announced plans to substantially ease the capital requirements for large US banks, marking a significant shift in the implementation of Basel III standards. This pivot reflects the struggle regulators face in balancing the need for financial stability with the competitiveness of banks.

JP Morgan and State Street have reinforced their dominance in Luxembourg’s fund industry, according to the latest Monterey Insights Luxembourg Fund Report 2024.

In a world where AI dominates and geopolitics shift rapidly, Allianz’s CIO Virginie Maisonneuve embraces ‘Digital Darwinism’, steering investment strategies through innovation, China’s rise, and Europe’s struggle to regain its competitive edge.

Former ECB president and prime minister of Italy, Mario Draghi, has written a report containing the obvious yet completely unnecessary conclusion that Europe has completely missed the boat on innovation and competitiveness. ‘Duh!’