Asset Servicing

With the acquisition of Axa Investment Managers by the French banking group BNP Paribas, the European asset management sector strengthens its position against “the Americans”. However, more is needed to halt the shift of managed assets from Europe to the United States.

This week’s overview of transfers and appointments in and around Luxembourg includes updates from Waystone, Carmignac, Baloise, Edmond de Rothschild, Bfinance, and Euroclear.

As Europe’s watchdogs tighten scrutiny on Article 8 funds, managers must now defend their classifications or risk being challenged across EU markets.

Strategic partnerships are not only a trend for pension funds and fiduciary managers, said Robeco CEO Karin van Baardwijk. “Private banks are looking for larger allocations per asset manager. That creates opportunities to get more out of the relationship. However, it also means that there are fewer fund houses on the shelf.”

The concentration risk in equity markets is growing as US megacap technology companies continue to attract capital. Diversification, often seen as the only “free lunch” in investing, risks coming at a cost.

Argentina was once one of the wealthiest nations in the world, richer than France or Germany. Much of its prosperity was based on beef exports. Today, however, many Argentinians can no longer afford beef and have turned to chicken as a cheaper alternative.

The European Union is preparing its next wave of financial sector reforms, and 2025 could mark a turning point.

Luxembourg’s financial watchdogs are stepping up their scrutiny of terrorist financing amid concerns that the Grand Duchy’s status as an international financial hub makes it vulnerable to abuse by illicit actors.

ESG factors are playing an increasingly diminished role in the investment decisions of institutional parties. For the vast majority, short-term performance takes precedence over the long-term benefits of sustainable investing.

Although no progress has been made this year towards a European Capital Markets Union, William De Vijlder, former Chief Economist at BNP Paribas, remains cautiously optimistic about building a stronger financial Europe. According to him, four groundbreaking reports from the past year point the way forward.