Asset Servicing

This week’s overview of transfers and appointments in the fund and asset management community in and outside Luxembourg includes updates from Carmignac, CMS Luxembourg, and Mainstreet Partners.

Martin Groos unpacks the journey of the European Long-Term Investment Fund (Eltif) since its promising launch in 2015, and explores whether recent reforms under “Eltif 2.0” will finally deliver success.

UBS Asset Management has expanded its digital asset capabilities with the launch of the “UBS USD Money Market Investment Fund Token” (uMINT), a tokenised money market product built on Ethereum’s distributed ledger.

Growing signals suggest the Republicans could clinch a victory in today’s elections, a scenario generally regarded as optimal for investors. A Republican Sweep would mean lower taxes, deregulation, and increased government spending. However, the gap between the Republicans and Democrats remains too narrow to confidently predict a winner, raising the likelihood of a contentious, potentially escalating dispute over the results.

Luxembourg’s financial regulator CSSF has delivered a sharp warning to the country’s Investment Fund Managers (IFMs) regarding weaknesses in oversight practices when delegating portfolio management. The CSSF’s latest review highlights specific shortcomings, particularly in conflict of interest management and contingency planning, that could expose IFMs to regulatory risk and potential operational failures.

Flexible allocation funds typically have broad latitude to adjust their asset allocation. Additionally, their managers have the freedom to add alternative asset classes to the mix, with gold being a well-known option.

This week’s overview of industry appointments in and outside Luxembourg includes updates from State Street, Vistra, RBC Bluebay Asset Management, and Cyberr.

As the shift towards passive investing continues to reshape the asset management industry, active managers are exploring new strategies and product formats to maintain their edge. In an interview, Joseph Pinto, CEO of M&G Investments, outlined how the UK-based firm is adapting to the changing landscape.

Franklin Templeton has secured approval from Luxembourg’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF), to launch the first fully tokenised UCITS fund in the country.