Esma faces uphill battle to emerge as European SEC
In an interview with Investment Officer, Esma chair Verena Ross outlined her vision and the significant challenges ahead as the regulatory body aims to become Europe’s equivalent to the US SEC.
Governance gaps draw CSSF scrutiny
Luxembourg’s fund regulator is shifting its supervisory focus from rule-setting to enforcement, zeroing in on governance failures, operational fragility, and liquidity risks as structural vulnerabilities in the sector become harder to ignore.
Private equity shifts pressure to retail investors
Private equity’s model is coming under strain as exits slow, capital remains tied up, and investors are waiting longer for distributions. Rather than resolving these pressures, the industry is increasingly passing them on to individual investors, said Lucas Crasborn, chief investment officer at Optimix Vermogensbeheer, an independent wealth manager overseeing around 2.5 billion euros.
Eltif growth meets market reality
An Irish long-term investment fund has suspended redemptions after investor withdrawals exceeded its limits, marking the first gating event in the European market and exposing the structural tension at the heart of the product.
The acceleration
The world was already electrifying at a rapid pace. But two developments are now pushing this process into an acceleration that would have seemed unthinkable just a few years ago.
Adding private markets means paying twice for the same risk
Investors seeking to diversify their portfolios and reduce dependence on traditional equity indices are increasingly turning to private markets. However, through their public holdings they already have exposure to those same markets. The additional costs associated with private funds do not structurally deliver higher returns.
Morningstar: Schroders versus T. Rowe Price in global equities
Equities are off to a volatile start in 2026. While initial optimism around the AI capex boom continued to support global equity markets, a rotation into cyclical sectors, value, and non-US stocks helped broaden the rally.
Transfers: Anthos, Morgan Stanley, Partners Group, PGIM, Intesa Sanpaolo
This week’s overview of people moves in Luxembourg and beyond.
Higher rates weigh on EMD more than geopolitics
The unrest in the Middle East has affected Emerging Market Debt (EMD) through rising rates and higher risk premiums. There is no indication, for now, of a structural deterioration in credit risk.
Oversubscription of bond issuances creates a snowball effect
The fact that some bond issuances are now oversubscribed by as much as ten times illustrates how sharply market sentiment has shifted. After more than a decade of interest rates close to zero, bonds in the eurozone are once again offering returns, around 3 to 4 percent for investment grade.