Asset Owner

In a move to strengthen valuation practices across the investment fund industry, Luxembourg’s financial supervisor CSSF on Wednesday unveiled a glimpse of plans to revise its valuation guidelines for investment fund managers. The update is due in 2025.

This week’s overview of transfers, appointments, promotions and other career news in the international fund and asset management community includes updates from M&G, BDO, Governance.com, the Luxembourg School of Business and the Luxembourg Competition Association.

China’s latest stimulus package, aimed at reviving its economy, could trigger a significant rally in equities over the next six months, according to renowned China watcher Louis-Vincent Gave, managing director and co-founder of Hong Kong-based Gavekal Research. “I believe it’s the trade to do for the next six months.”

Luxembourg’s financial regulator has issued a relatively small fine for a class of transgression with huge implications for the industry: valuations of funds, in particular for unlisted alternative investments.

Luxembourg’s financial watchdog, the CSSF, has made important changes to its rules for valuations of investment funds, the first in two decades. While many things stay the same, some key updates—like lowering limits for money market funds and adding new checks before making investment decisions—are aimed at tightening control and providing clearer guidance.

Many investors mistakenly conclude that China and the United States are completely different due to their distinct financial (and societal) systems. However, nothing could be further from the truth. Both nations’ faltering economic engines are kept running by the same remedy: debt.

Quintet Private Bank announced on Thursday the launch of its Luxembourg-based Finnish desk by building a new team that crossed over from competitor Union Bancaire Privée.

Former Portuguese finance minister and Morgan Stanley banker Maria Luís Albuquerque, known for her austerity-heavy tenure during the eurozone crisis, is now the European Commission’s nominee for the influential role of Commissioner for Financial Services. Her appointment has already ignited controversy.

Pharmaceutical companies were once known for their strong growth potential, but slowing revenue growth, lower valuations, and higher dividend yields have given them a more mixed profile in recent years. However, over the past three years, Novo Nordisk and Eli Lilly have stood out by reclaiming their growth status.

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.