Investment Officer Luxembourg

In the U.S., a surge in deposits from small to medium-sized lenders is leading to a credit crunch across the country as smaller financial institutions sell mortgages and bonds at record pace to offset losses. This looming crisis is causing concern within financial markets about how it will affect economic growth moving forward. 

The BCEE, one of Luxembourg’s main domestic banks and commonly known as the Spuerkees, credited rising interest rates as playing a key role in increasing its increased banking income portion of its overall annual report for the year ending in 2022 through over 20% increase to its interest margin. According to a bank press release, this was also due to an increase in lending activities. 

In a dawn raid on Friday, Luxembourg judicial authorities searched for documents of two holding companies controlled by US hedge fund Elliott Management in relation to last year’s 1.2 billion euro sale of Italian football club AC Milan. Although it has formally closed, the sale is still contested by a third Luxembourg holding company, Blue Skye Financial Partners, which owned a small minority stake in AC Milan and which claims it has fallen victim to fraud under Luxembourg law.

The presentation of the European Commission’s long-awaited retail investment strategy, has now been delayed once more, from an early May to a tentatively scheduled 24 May date, according to a person familiar with the policymaking process in Brussels.

In Luxembourg, the financial sector is concerned about whether the Commission will opt for a ban on inducements on investment advice as part of its strategy.

Dublin-headquartered asset services specialist Waystone on Thursday announced that it has agreed, following years of discussions, to acquire the UK and Irish business of Link Fund Services for an undisclosed amount from its Australian parent. Link’s Luxembourg-based fund services are being put up for sale, as is its operation in Switzerland.

“Link Group is proposing to pursue a separate sale of the Luxembourg and Swiss entities which form part of the FS Business,” a company spokesperson said.

Equity investors may be underestimating the potential consequences of a miscalculation of the Federal Reserve interest rate path. The market is already pricing in a Goldilocks scenario of stable economic growth and low inflation. It could be a costly misjudgment.

For Luxembourg’s crypto community, Thursday’s adoption of the MiCA regulation in the European Parliament reassures established financial players and offers an EU passportable licensing regime with no need for national transposition in member states. “It enables new ways of issuance and distribution of new types of assets,” said ABBL.

Institutional investors expect greater transparency when investing in alternative assets, mostly with risk management in mind, according to a new survey by Clearwater Analytics.

According to a poll of 254 institutional investors, representing over $10 trillion in assets under management, the two key benefits to achieving greater transparency in alts should be better risk management (72 per cent) and a better understanding of performance (54 per cent).  

Etienne Rougier has been appointed as Chief Operating Officer at Universal Investment Group. He joins from Alliance Bernstein. As of this week he is responsible for driving and transforming the business to support its overall growth strategy.