Investing

With 29 new funds registered, last month was the best September in three years for new Raifs issuance, data analysis by Investment Officer Luxembourg shows. Raifs are Reserved Alternative Investment Funds. In Luxembourg these vehicles in recent years have gained significant international traction among those active in private assets such as credit, real estate and private equity.

Luxembourg, take the initiative for a European Nasdaq market. Take your expertise in financial structures and pioneer this change, says Finnish VC investor Riku Asikainen, managing partner and founder of Evli Growth Partners, or EGP, which hosts one of Europe’s biggest scale-up breeding grounds.

As Italy’s 10-year interest rate hovers around 5 percent, flashbacks to late 2012 become inescapable. A time not far off when Italy’s place in the Eurozone was in question. Could we be on the brink of another debt crisis?

Many in the investment world have a myopic view, focusing intently on ‘the spread’, especially with nations deep in debt. As per the International Monetary Fund (IMF), Italy currently boasts a rather ‘admirable’ debt-to-GDP ratio of 144 percent - and this pertains only to public debt.

The escalating conflict between Israel and Hamas challenges the appeal of US government bonds as a traditional safe haven. 

Typically, geopolitical tensions drive short-term market moves towards safer assets like cash and US government bonds. However, on Wednesday, the yield on ten-year US government bonds increased by 0.07 percentage points to 4.9 percent, its highest since 2007. The 30-year bond yield also rose to 5 percent. 

Luxembourg’s alternative investment funds (AIFs) continued to show resilience and growth last year, even amid economic headwinds, navigating economic challenges with private equity funds at the forefront of market momentum, according to the latest annual market overview by the Grand Duchy’s financial supervisor.

The chart making waves on social media isn’t getting attention without reason. It suggests that the real turmoil in the US labour market kicks in only after the yield curve has been inverted for over a year. Investors might be celebrating a soft landing prematurely.

In 1973, during Yom Kippur, Israel found itself under siege from countries including Syria, Egypt, Morocco, Iraq, Algeria, Kuwait, and Saudi Arabia. This conflict led to the first oil crisis, causing oil prices to triple in a short span, marking a significant shift in Western economic growth post-World War II.

Investors often overlook the growth potential of companies exposed to megatrends like the energy transition and artificial intelligence. Those who discern the transformative potential early and stay invested might reap significant returns in the next decade.

A recent chart from UBS has caught my attention. It indicates a surprising reluctance among Americans to spend during the upcoming holiday season, especially when compared to their willingness in July.

EU-domiciled Exchange Traded Funds, or ETFs, are growing at twice the speed of traditional Ucits funds, demonstrating continued appetite among investors for passive and low cost investment vehicles, a deep dive by PwC Luxembourg shows. Meanwhile, Denmark has emerged as Europe’s top target market for ETF distribution.