Opinion

On December 22nd, 1972, investment funds in Luxembourg became subject to supervision for the first time. Initially, the rules provided investors with significant protection, but over time, they have only served to increase the fees they pay.

Delegation

Delegation is one area of the industry that has become so complex that it’s almost impossible to see the bigger picture. It’s a cornerstone that has facilitated the industry’s growth while also making it increasingly obscure.

Investing seems like a simple cyclical process: gathering information, making purchase decisions, selecting investments, holding and selling. But everything must happen at the right moments, and many investors seem confident in this. What is it that causes emotions to still obstruct rational considerations even among experienced investors? Are all investors overconfident crybabies?

For the stock market, inflation dynamics remain crucial. These ultimately determine the level of interest rates required to bring inflation under control. The higher the required interest rate, the greater the risk of recession and the smaller the corporate profits. High interest rates are also bad for stock valuation levels. However, some companies have managed to increase their profit margins with high inflation, as we noticed last year.

Malgré la onzième hausse des taux de la Fed, l’économie américaine refuse de craquer. Au contraire, le PIB a progressé nettement plus que prévu au dernier trimestre. Cette hausse surprenante peut être attribuée en grande partie à une augmentation significative des investissements des entreprises. En revanche, la consommation privée est en perte de vitesse. Ce dernier point ne nous inquiète guère. Le premier ne nous surprend pas non plus. 

It was June 2014, and I was flying back from Lisbon for an exciting interview at J.P. Morgan Bank Luxembourg. Landing this job would validate that getting a master’s degree was worth it. I was thrilled about being part of our fund industry.

There could be no delays in my travel plans. I was scheduled to land at 13:15, and the interview was set for 14:00. Fortunately, a friend picked me up, giving me enough time to put on my suit and share my excitement about interviewing for a leading bank.

There is an unwavering demand on the debt as well as on the equity side of private markets, writes Martin Groos, member of the management board at Universal Investment Luxembourg.

The global economy has experienced several major shocks in recent years. A period of normalisation has now begun. Once the dust settles, we’ll see if there are any differences from the pre-pandemic world. To discover these, we must seek out striking and deviating patterns.

When the international freight traffic was disrupted during the pandemic, economists began paying closer attention to overseas container transport. Over the last two years, a development has emerged that you could rightly call worrying for Europe. 

Comme prévu, la Réserve fédérale a de nouveau relevé le taux cible des Fed Funds de 25 points de base pour le porter à 5,50 % (limite supérieure). La hausse cumulée des taux s’élève désormais à 525 points de base, ce qui en fait le plus important cycle de resserrement en plus de 40 ans.

Since 2014, the kickback fee, also known as distribution fee, has been abolished in the Netherlands. Prior to this, asset managers would continuously pay a fee to distributors whenever investments were made in the asset manager’s funds.

The European Securities and Markets Authority (Esma) recently focused its attention to undue costs of Ucits and AIFs and issued an opinion thereon in May 2023. In January 2021, Esma started a Common Supervisory Action (CSA) with the national supervisors on the costs and fees of Ucits across the EU/EEA, in particular referring to charging investors undue costs.