Opinion

Just returned from your sun-soaked holiday? Luxembourg’s asset scene is heating up, and not just due to the weather. Dive into our latest analysis, covering everything from the CSSF›s game-changing valuation order to shifting ETF trends. This column is your essential back-to-work read!

Long-term inflation expectations have risen this year.

L’investissement factoriel gagne en importance depuis quelques années. Il est scientifiquement prouvé que les facteurs ou les styles d’actions surperforment le marché à long terme.

Actuellement, la valeur et les petites capitalisations sont fondamentalement les caractéristiques de style les moins chères, à la fois en termes absolus et relatifs par rapport aux indices traditionnels.

The Luxembourg legislator has done it again: with Bill 8183 (the “Bill”), which entered into force on 28 July 2023 after passing the Luxembourg Parliament, the Luxembourg funds toolbox has been carefully modernised, write Pinsent Masons› Tom Loonen, Lous Vervuurt and Jan Saalfrank in their latest contribution as Investment Officer knowledge partner.

At the time of writing, markets are still pricing in just under a 60 per cent chance that the ECB will raise interest rates one more time sometime in the coming months. And although Lagarde has only recently turned to wage growth as an argument for further tightening, there are plenty of reasons to at least pause.

In recent years, the regulatory framework for the duties and responsibilities of the board of directors or management board and for the control functions within Luxembourg investment fund managers has evolved significantly. Among others, CSSF Circular 18/698 has tightened the regulatory requirements for the authorisation and organisation of Luxembourg investment fund managers («IFMs»).

En septembre de l’année dernière, j’avais abordé le sujet du ‘K de Marshall’ sur le site web d’Investment Officer. Il s’agit d’un indicateur qui met en regard la liquidité monétaire (l’offre monétaire émanant des banques centrales, reflétée dans les bilans des banques centrales) et la croissance économique. Si l’offre monétaire augmente plus rapidement que la croissance économique, on obtient un excès de liquidité, ce qui est très bénéfique pour les marchés financiers.

Artificial intelligence is eminently an application for investors. Especially in a complex data-rich environment with a lot of uncertainty, artificial intelligence thrives.

The ‹intra-day› turn of the S&P 500 Index following the release of US inflation data is the first evidence that Powell has deprived markets of ‹Fed hopium›.

US headline inflation rose to 3.2 per cent in July from 3.0 per cent. While that was lower than expected, it was nevertheless the first increase in the inflation level since June 2022, which (social) media used to fill headlines. 

Adhering to non-financial reporting requirements—especially with the increasingly stringent European rules surrounding sustainability, and Environmental, Social, and Governance (ESG) reporting—is a substantial concern for those engaged in fund and asset management.