Sector

Hiring freezes, automation, and a shrinking talent funnel point to a structural reset in America’s financial sector. One with growing implications for Europe.

Investment advisors are getting better at their jobs, according to the distribution teams at asset managers who work closely with them. They’re using more data, stress-testing portfolios against historical scenarios, and educating their clients more effectively. This leads to more stable behavior among end investors.

The application of artificial intelligence can significantly lower wealth management costs and help non-investors in Europe start investing wisely. “AI is simply automation that can provide positive nudges — for example, to not sell when the market crashes.”

Across Luxembourg, family offices are preparing for change as younger generations begin to take more control. With new priorities like sustainability, digital tools and impact investing, wealth managers are adjusting how they support family clients.

The combination of artificial intelligence, impending regulation, and shifting market dynamics is shaking up the traditionally opaque sector of ESG data providers.

In an era of industry consolidation and shrinking margins, Allianz Global Investors is choosing defiance over dependence.

With mounting pressure on housing, cybersecurity, and talent retention in an increasingly complex banking landscape, Luxembourg’s bankers are calling for a policy reset.

Luxembourg’s private banks need embrace digital innovation to stay competitive, tackle regulation, and attract talent. ABBL Chairman Yves Stein speaks on the future of private banking in the Grand Duchy.

Fund managers often actively adjust their portfolios to achieve more favourable outcomes in Morningstar comparisons, according to researchers from Harvard and MIT. This strategy is said to lead to higher star ratings, enabling funds to justify higher fees, potentially at the expense of investor returns.

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.