Sector

Eurozone finance ministers have put forth a five-year blueprint to forge a robust Capital Markets Union (CMU) in what they see as an “ambitious” move to enhance private capital flow into Europe and underpin Europe’s costly shift to a sustainable and digital economy. 

Ireland’s competitive tax policies and workforce have attracted numerous fund promoters, propelling the country to become the EU’s fastest-growing and second-largest fund domicile. Despite these impressive achievements, Ireland faces challenges in overtaking Luxembourg as the leading destination for funds.

In an industry where performance is king, KKR has thrown down the gauntlet, claiming a victory in the long game of investment over the iconic Berkshire Hathaway fund. This bold assertion by the 553 billion dollar private equity behemoth not only challenges the storied legacy of Warren Buffett. It also sparks a fiery debate on the true measures of success in the high-stakes world of private investments.

The anticipation for future outperformance plays an increasingly pivotal role in Morningstar’s methodology for bestowing its annual awards upon investment funds. 

Amidst heightened regulatory scrutiny, Luxembourg’s private investment fund landscape experiences a transformative shift in valuation paradigms, a panel discussion on Wednesday made clear.

Private investment-laden portfolios of US university funds achieved a net return of 7.7 per cent in FY2023, but the gains were almost entirely due to public equities.  

Historically, university funds with larger endowments tend to achieve better one-year investment returns than funds with smaller endowments due to significant allocations to private investing. The rise in the US stock market and disappointing returns on alternative investments reversed the trend in 2023.

Luxembourg’s financial regulator CSSF has updated its guidance for the crypto investment landscape, clarifying that only ‘well-informed investors’ within alternative investment funds can tread into the virtual asset territory.

In the latest report from MSCI ESG Research, a nuanced picture emerges on the state of gender diversity within corporate boards. Despite a marginal uptick in the percentage of women directors, concerns loom over the slowing pace of change, according to the annual Women on Boards and Beyond report.

Tom Theobald has been been appointed to succeed Nicholas Mackel as the head Luxembourg for Finance, the country’s state-sponsored association that advocates for the interests of the grand duchy’s financial sector. He will take on the new role from 1 September.

The Grand Duchy of Luxembourg accounts for 36% of UCITS assets globally, indicating numerous advantages to domiciling an investment fund here. However, as the investment landscape evolves, its competitiveness is diminishing, particularly in comparison to jurisdictions such as Ireland.