Asset Owner

Investors have plenty of choices. The financial services sector encompasses a diverse universe from which portfolio investors can make their selections. Traditionally, banks and insurers dominate, but companies involved in payments, stock exchanges, capital markets, and asset management are also part of the broad range of investment opportunities.

The increased likelihood of natural disasters due to climate change does not make investing in catastrophe bonds (cat bonds) any less attractive. On the contrary, experts say that due to the rising capital needs of reinsurers and higher premiums, returns can actually increase.

This week’s overview of transfers and appointments in and around Luxembourg includes one update from Federated Hermes.

Once the pinnacle of innovation, German car manufacturers now risk being overtaken by Chinese automakers, who are adopting the latest technologies at a much faster pace. The willingness to innovate and embrace disruption seems to come more easily in a new market unencumbered by a long-established history.

Even MacGyver, master of improvisation, meets his match in Luxembourg’s compliance world. Gregory Kennedy explores the impossible demands placed on compliance officers—and why even a secret agent might struggle to keep up.

In an uncertain macroeconomic environment, global asset manager Capital Group is focusing on identifying ‘Global Champions’ across sectors to position client portfolios for long-term success.

Passive investing can be seen as a disruptive innovation that has also reduced costs for active investors. It has made active investors more engaged, aligning their compensation more closely with their added value. Meanwhile, passive investors benefit as free riders from the extensive work undertaken by active investors.

The European Commission has set out yet another grand vision for Europe’s capital markets. Behind the lofty rhetoric, the plan leaves a familiar set of unresolved questions.

Investing is rarely straightforward. And with an unpredictable individual at the helm of the world’s most influential country, it certainly doesn’t get any easier. However, to consistently dismiss the man as ‘dumb’ as a coping strategy is far too simplistic. You can say many (unpleasant) things about Donald Trump, but ‘dumb’ is not necessarily one of them.

The Luxembourg Sustainable Finance Initiative (LSFI) has launched its Luxembourg Sustainable Finance Strategy 2030, outlining its vision for advancing sustainable finance in the country over the next five years.