Asset Servicing

It was a master plan. The Sustainable Finance Disclosure Regulation was supposed to send massive private capital flows into green investments, finance the Green Deal, and allow Europe to set an example for the rest of the world. Not a nonbinding directive, but an ambitious framework meant to discipline the financial sector and crush greenwashing.

Fund passports were built on the same vision that shaped the Schengen Zone: shared trust and borderless movement. Luxembourg remains at the center of that idea.

Miami-based Allvue Systems said Tuesday it will form a strategic partnership with KPMG Luxembourg to support all client implementation work across Europe, a move aimed at helping global asset managers navigate Luxembourg’s increasingly complex fund landscape.

Luxembourg’s financial regulator CSSF has concluded that investment fund managers are increasingly aware of the risks associated with the financing of weapons of mass destruction, yet many of their internal safeguards remain underdeveloped.

AI is going to change the world, but which companies will benefit most from that trend? Investors who put money into trends and themes such as AI look for a solid benchmark to determine the purity of their investments. The goal is high purity. That does not always work out.

Financial markets are under pressure. Not only stocks but also other asset classes are mostly moving lower. Are we dealing with unique factors, or is there a single overarching culprit?

Dan Ariely has devoted his career to understanding irrational behavior. According to the Duke University professor of psychology and behavioral economics, ESG investors are the perfect test group. They focus, he says, on what is easy to measure rather than on what actually matters for returns.

One in five global dividend funds now integrates ESG criteria. Where sustainable funds in other segments have struggled to maintain their growth momentum, sustainable global dividend funds have seen strong inflows in recent years.

It was in May 2018 that the European Commission launched its highly ambitious European Sustainable Finance package. Seven years later, the political winds in Europe have shifted significantly, and sustainability ambitions are being scaled back step by step.