Asset Servicing

Digital, operational and cyber resilience are key priorities for the year to come, says CSSF director-general Claude Marx, who points out that Europe is already being targeted by hybrid warfare attacks and expects to see more in the future.

Markets still assume that the war in the Middle East will not escalate into a prolonged conflict, and that is good news for investments in emerging markets. After the initial attacks by the US and Israel on Iran, several markets in Asia and South America took significant hits, but over the past two weeks they have shown resilience.

Financial services firms increasingly test new markets through sales-as-a-service models, relying on experienced industry connectors instead of building costly local teams. Luxembourg’s global ecosystem makes this approach particularly relevant.

The shake-out in active asset management is far from finished, even as some firms regain momentum in the battle for investor flows, according to Joseph Pinto, chief executive of M&G Investments.

The price of a barrel of crude oil surged past the $100 mark as the situation in the Middle East escalated further. A small price to pay, according to the president of the United States. Yet I suspect Trump is taking too narrow a view of the true cost of this new military intervention – if he is even considering those costs at all.

The Asian bond market continues to deepen, supported by local and international interest.

Investors in evergreen funds apparently did not fully grasp what they were getting into when they entrusted their capital to these “semi-liquid” vehicles investing in private markets. After Blue Owl, two large private credit funds managed by Blackstone and Blackrock were hit last week with a surge in redemption requests.

In a fund market that is becoming increasingly fragmented between European requirements, rising regulatory pressure, and the growth of private markets, large offshore firms can no longer ignore Luxembourg. For Mourant, historically established in Jersey, Guernsey, and the Cayman Islands, opening an office in the Grand Duchy two years ago was not merely a geographic expansion. It was a strategic repositioning.

This week’s overview of people transfers from across Europe.

Young people today are looking for a modern, balanced, purposeful, and flexible work environment, say heads of HR at Luxembourg private banks. Employers, on the other hand, are focusing on whether candidates bring transferable skills.