Asset Servicing

High valuations and geopolitical risks indicate potential overheating and future uncertainties. Europe, with its heavy dependence on third-party suppliers for essential goods and raw materials, finds itself particularly vulnerable. The pressing question: Can Europe sustain its economic power and prosperity while effectively merging ambitious climate policies with a resilient industrial sector?

Emerging market debt investors believe that the overvaluation of the US dollar is at relatively extreme levels, while growth in emerging markets is higher than in more developed markets.

Sebastiaan Hooghiemstra at Loyens & Loeff reviews the opinion tabled by the EU’s supervisory agencies on SFDR as a possible labelling regime, and finds that the question on whether “Article 8” and “Article 9” products should be abolished, is not yet off the table.

This week’s overview of transfers, appointments, promotions and other career news includes updates from the Amundi Institute, Partners Group, the Green Growth Fund, Citibank, and KPMG Luxembourg.

Luxembourg has decided to establish a special anti-money laundering (AML) unit within its tax administration following parliamentary approval. The head of financial supervisor CSSF, meanwhile, expressed his concern over the use of ‘outdated systems’ at the AML teams of asset and wealth management firms.

Investment advisors in both the US and Europe have been expressing a desire to increase allocations to alternatives, but the average allocation has remained modest, according to gatekeeper surveys by Cerulli and PGIM.

The U.K.’s first female Chancellor, Rachel Reeves, has announced a new plan to boost private sector financing in the British economy. Infrastructure investors are encouraged.

Columnist Jeroen Blokland takes a look at persistently declining industrial production in Germany.

A lack of reliable Environmental, Social, and Governance (ESG) data is significantly hindering the implementation of the European Union’s sustainable finance regulations, according to a survey by the CFA Institute.

Emerging markets excelled in the second quarter, driven by Taiwanese and Indian equities, despite Mexican setbacks. Ronald van Genderen concludes this edition of the Morningstar Fund Radar with insights on promising strategies like Robeco QI Emerging Conservative Equities.