Investment Officer Luxembourg

As commercial director at Baloise Vie Luxembourg, Tine Vanmassenhove guides wealthy Belgians through the world of Luxembourg investments. The grand duchy has undeniable advantages, she says, though these are now most pronounced for larger fortunes.

Private equity has never lagged so far behind publicly listed equities in terms of returns. The asset class faces major challenges, including disappointing distributions, higher financing costs, and geopolitical uncertainty. Has private equity lost its shine, or is this just a temporary phase in a cyclical pattern?

The problem with private credit is not that it might blow up the financial system. It’s that it might just not be a very good investment.

“Climate change is not a scenario for the distant future; it’s already affecting all asset classes,” said Lisa Backes, deputy CEO of Hauck & Aufhäuser Fund Services, during the LuxFlag Sustainable Investment Week in Luxembourg. For banks, sustainability has become a strategic and regulatory issue at the core of risk management and client relations.

The title of this column is the Chinese word for “mirage” or “illusion.” Hot air, in other words. Just like the impressive Chinese growth figure that was proudly announced this week.

During the third quarter of 2025, investors who assumed moderate credit and duration risk were rewarded, as the European Central Bank kept interest rates unchanged at its July and September meetings, while the U.S. Federal Reserve cut rates once in September.

Bhavneet Ahluwalia, investment specialist at M&G, says value investing in Europe is reasserting itself in a changing global landscape.