Yuriko Backes, Luxembourg's Minister of Finance;
The two-day hybrid ALFI European Asset Management Conference 2022 kicked off on Tuesday morning, with speeches by ALFI Chairperson Corinne Lamesch and Luxembourg’s Minister of Finance, Yuriko Backes.
This year's event, which is taking place on 22 and 23 March, is an opportunity for professionals in the asset management industry to hear from decision makers and thought leaders, meet and network with their peers and establish new relationships with fellow asset managers and investors, either in person or virtually.
One-third of attendees are taking part virtually, with around 80 people (in addition to a couple of hundred in-person attendees at the European Convention Center Luxembourg) tuning in for the morning session on Tuesday 22 March 2022.
In her welcome speech, Corinne Lamesch welcomed participants to this "new hybrid world". However, she was "opening this conference with mixed emotions", as we are gradually coming out of the COVID-19 pandemic but are "already facing the next global crisis". Ms Lamesch described the situation in Ukraine as "an unacceptable, brutal aggression war" and expressed her sympathy with all those affected. She added: "This unwarranted war has to stop; it belongs to the ghost of our past". On a more positive note, she praised Luxembourg's long tradition of "welcoming refugees from different origins".
Ms Lamesch went on to explain how the current geopolical situation had revealed the weaknesses of the international business model. She stressed the need for a more inclusive, green and digital economy, addint that it is of the "utmost importance that the asset management industry continues to play a role in this transition". She continued: "Sustainable finance remains a key piece in this puzzle and [...] we must make it work even if the current regulatory framework is neither complete nor perfect".
Corinne Lamesch went on to stress the importance of prioritising "collective action and pace over perfection" if the fund industry is to succeed in this manner. She also emphasised the importance of investor education and financial literacy as "fundamental building blocks to achieve this". She concluded: "We all have a role to play".
Luxembourg's Finance Minister Yuriko Backes then took the stage. Minister Backes used this opportunity to deliver five key messages. She began by pledging her support for the Luxembourg and European financial sectors and their future development. Subsequently, she spoke of the current period of global and national economic uncertainty following a year of recovery; she noted that the "wide-ranging sanctions we have imposed [on Russia] with our international allies will have a cost for our economies" but recalled that this is the "price to pay to defend our democratic values and the European peace order".
Minister Backes went on to praise the resilience of the financial sector during the COVID-19 pandemic, which she believed would provide "solid foundations" to face the current crisis. She noted that, despite the global economic uncertainty, the key priorities in developing Luxembourg's financial centre and funds industry remain unchanged. In this context, she highlighted the importance of continuing and stepping up efforts regarding digitalisation and green and sustainable finance, maintaining and expanding Luxembourg's leadership in this field and nurturing and attracting the "right talent" to Luxembourg to support industry growth. Minister Backes recalled that now is not the time "to rest on our laurels" but rather to continue to work together in developing innovative ideas and new skillsets.
Moreover, Luxembourg's Finance Minister emphasised the need for the EU to remain competitive, with everyone working together to ensure this. "Neither Brexit nor the pandemic should be used as excuses to build a fortress Europe", she noted, citing digitalisation and sustainability as "key drivers for future competitiveness".
Finally, Minister Backes addressed the challenge of climate change and meeting Sustainable Development Goals (SDGs) - areas in which the fund industry has a role to play. She recalled that while Luxembourg is a leader in areas such as sustainable finance, this is no time for complacence. Instead, the industry should move forward both quantitively and qualitatively. She highlighted continued cooperation between the private and public sector as a "key ingredient" to achieve this goal.
The morning session continued with an introductory speech by Kavitha Ramachandran, Chair of ALFI Promotion Committee, and a presentation by James Pomeroy, Global Economist at HSBC, who presented an economic outlook for 2022 - not an easy task considering the "incredibly challenging" and "unbelievably uncertain" times in which we are living.
The ALFI European Asset Management Conference 2022 will continue on Tuesday (until 17:30) and Wednesday (until 15:40) with various presentations, panel discussions and networking opportunities for fund industry professionals.
