Mike Gordon

Assets worth over 200 million euros stored at Luxembourg’s freeport, formally known as  High-Security Hub, have been frozen as part of the EU sanctions against Russia, Luxembourg finance minister Yuriko Backes has told parliament. This follows the 4.3 billion euros in frozen Russian-linked assets that were announced by the ministry of finance last week.

Firms selling Ucits and alternative investment funds are experiencing a downturn linked to the dire international economic situation, the war in Ukraine and the lockdown in China. Investor demand for these types of funds has dropped sharply, according to the European Fund and Asset Management Association (Efama), who released figures showing that net assets of Ucits and AIFs have declined by 4.5% this past quarter.

It’s been nearly a decade since the European Commission set out its ambitious plans for a Capital Markets Union (CMU), diversifying sources of funding in Europe’s economy. Progress so far has been slow and Brussels now has conceded it needs help to persuade member states and its citizens of its merits before it can make another push

An American early-stage fintech named Pontoro recently pitched in Luxembourg its development of an innovative new digital assets platform that makes infrstructure investments more liquid, and thus less difficult to finance.

The long-term financing of the storage of German commercial radioactive waste is being provided in part through a Luxembourg Raif that was established earlier this year. Kenfo, the German sovereign wealth fund that established the fund, has given InvestmentOfficer.lu some more details about its investment purpose.

The collapse in the value of two cryptocurrencies linked to South Korea’s Terra blockchain has sent the crypto world aflutter. The resultant crash wiped out over USD 15 billion in cryptocurrency value, raising questions about the level of stability offered by “stablecoins” and attracting the attention of politicians and regulators worldwide. Jake Lee, chief strategy officer of Gopax, a South Korean cryptocurrency exchange, who knows the players involved,  shared his insights at the recent Finverse Forum conference in Luxembourg. 

A changing of the guard at the Luxembourg Stock Exchange, known as LuxSE, and strong results increases across the board were the theme at Wednesday’s Luxembourg Stock Exchange annual press conference.

Has growth in new registrations of Reserved Alternative Investment Funds, known as Raifs, in Luxembourg peaked? As Investment Officer readers have noted, growth tailed off in February and March. Marc Kriegsmann, Raif market specialist at leading Luxembourg Raif issuer Hauck & Aufhäuser, said the dynamic in the Raif market may be affected by increasingly stringent risk control processes and the presence of suitable alternatives. 

Investing in trees might at first not seem the quickest route to wealth. Yet timber investments increasingly leverage their clear connection to sustainability and their long-term real asset investment characteristics. Timber investments, although not suited for everyone, can serve as a hedge against inflation, and as a commodity that can benefit from strong economic growth.

The Global Green Finance Index, a leading international index ranking sustainable finance activities in global financial centres makes clear that Luxembourg is facing stiff competition in green finance. The Grand Duchy has lost two spots in the latest edition, although the score for the depth and quality of its offerings was up.