Corinne Lamesch’s first job as Chairperson, following her appointment in June 2019, was to outline ALFI’s priorities for the next five years.
When the first draft was completed, the most profound challenge facing the fund industry – the coronavirus pandemic – had not yet hit. Within a matter of months though, the financial sector found itself in unprecedented times requiring new responses, pragmatism, a sense of unity and cooperation. This, however, makes ALFI’s objectives and ambitions even more important than before.
The asset management industry in Europe is at a critical juncture where new macroeconomic and societal trends will bring both challenges and opportunities. Asset managers have a unique opportunity to strongly influence the strategies of companies globally so they are more aligned with the values of our changing society and better connected to the interests of future generations.
The last five years have seen some interesting megatrends develop with geopolitics increasingly creating barriers to cross-border trade and placing more importance on domestic markets. The climate change agenda has focused on the role that the financial sector and especially the asset management industry can play in channelling investments in sustainable assets and projects.
Changes in demographics, with ageing populations, and investor expectations mean there is a rising need for new investment fund solutions focused on sustainable finance and better pension products as well as a demand for increased transparency and for a much better customer experience.
In financial markets, ultra-low interest rates are driving investors’ appetite for asset classes offering higher returns. Alternative assets have become particularly attractive to investors globally.
Brexit has kept the asset management industry on its toes for several years. At ALFI, we are convinced that the future EU-UK relationship will see Luxembourg and London strive to keep their markets open, with a view to giving investors the greatest possible choice of investment solutions.
An ongoing topic in the industry is the continued rise of passives and ETFs. Active and passive investment solutions will co-exist. Pressure on margins and cost will continue in a time when firms already have had to make substantial investments in technology, and are having to comply with new regulations.
Improving financial literacy, succeeding in bringing investors back to capital markets, and providing adequate investment solutions and value for money are all of paramount importance. Today, European households keep some 40% to 50% of their savings in cash, effectively losing money after inflation is factored in.
It is our ambition at ALFI to empower investors in their financial journey and allow them to meet their financial goals. We aim to achieve this by driving innovation and change in the asset management industry and the next five years will be crucial in its transformation. We will accompany investors along each of the stepping stones in their journey to financial success.
Our five key objectives will help the Luxembourg fund industry continue to transform itself and better meet the evolving needs of future generations and societies.
ALFI Ambition 2025Download the full paper
ALFI Ambition 2025Read our summary page