Valeriia Kotsur is managing partner at Fund AML. Photo: Provided by Fund AML.

Valeriia Kotsur is managing partner at Fund AML. Photo: Provided by Fund AML.

Tokenisation, the democratisation of private assets, sustainable finance and more--there’s plenty on the financial sector’s agenda for 2024. Delano asked Luxembourg investment industry professionals about the top issue on their radar for the coming year.

As part of this series, we asked Valeriia Kotsur, managing partner at Fund AML, about key issues in the industry for 2024. Kotsur told Delano:

“Even a tarot card reader can’t predict markets now: there are too many risks, too speedy changes.”

“However, as a responsable du contrôle, I can expect that the risk appetite of many asset managers will need to be adjusted if they want to be able to do business and not only cover costs incurred. Starting from 2022, we’ve seen a high level of geopolitical risks, an increase in cost of funding and ongoing tightness of margins due to a more complex regulatory environment. This means that some asset managers will pursue riskier strategies driven by market sentiment.”

“Cyber, tech and defence will be in focus, but might also cause problems due to higher exposure to sanctions and dual goods [rules]. I would also expect to have more mobility-linked projects in the pipeline for all types of asset managers, such as integrated mobility, intermodality and inclusive mobility, and mobility and energy projects.”

“Obviously, ESG will also be key for regulated asset managers and their investors, as those would be forced to shift fully to better taxonomy as regulated investors will demand this for own reporting purposes.”

“If we speak about instruments, I would expect the securitisation market to kick off for a wider range of asset types, because investors will seek stable return on a note while [having] limited exposure to a pool of different risks. Combined with ESG, it can be an interesting instrument for impact investment. The same is the case for blended finance when we speak about social/impact investment and refinancing facilities for debt.”

“It is not only about which car you drive and what is your destination, but also about the weather on your way and the tires on your wheels.”