Raymond Frenken

The current approach to the EU’s retail investment strategy may not adequately address broader issues such as the retirement savings gap, reflecting a need for a more holistic approach to financial education and pension policies, a leading European industry representative argues.

European regulators, especially those in Paris and Luxembourg, are at odds over the regulatory and technical standards for the updated European Long Term Investment Funds scheme, known as Eltif 2.0, according to people familiar with the discussions.

The future of supervisory reporting by investment funds - Luxembourg is home to some 14,000 of them - is embedded into a firm’s technology infrastructure.

One example of this development is taking shape in Luxembourg, where a local data firm that was acquired by a London-based fund data specialist last year is building a one-stop solution that lets fund managers track the distribution of their funds in multiple countries and report to the relevant supervisors by pressing a single button. 

Amid the sustained growth of Luxembourg’s private markets, propelled by ongoing onshoring and the growing acknowledgment of its robust legal frameworks, Investment Officer sat down for a conversation with Claus Mansfeldt, president of the Luxembourg Private Equity & Venture Capital Association (LPEA).

Proposed amendments to EU rules for alternative investment funds have passed through technical discussions in Brussels without much damage. The outcome of these ‘level 1’ talks means that the AIFMD and Ucits review now is back on course to be completed shortly. The EU’s presidency is expected to issue a statement next week.

Amundi, Europe’s biggest asset manager, has informed investors that it is moving seven of its ESG funds out of Luxembourg to consolidate them with new umbrella ESG funds that it has created in Ireland. The move is aimed to achieve “a greater degree of operational efficiency,” the Paris-based firm said.

Luxembourg’s financial supervisor CSSF is urging banks, investment funds and the general public in the Grand Duchy to be extra vigilant in relation to money transfers that could finance terrorist groups such as Hamas and Islamic Jihad. The reminder comes just a month after the world’s top body for fighting money laundering and terrorism finance said the sector’s understanding of terrorism finance is “very low”.

Which public companies do the best rated fund managers want in their portfolios? Researchers at London-based data analysis firm Citywire on Monday released a new data set that shows in which equities the world’s portfolio managers prefer to invest with the highest degree of conviction.

Luxembourg, take the initiative for a European Nasdaq market. Take your expertise in financial structures and pioneer this change, says Finnish VC investor Riku Asikainen, managing partner and founder of Evli Growth Partners, or EGP, which hosts one of Europe’s biggest scale-up breeding grounds.

The industry’s objections to a divisive EU Retail Investment Package are being heard in Brussels, it has become clear in recent weeks. Investors could end up pulling the short straw, critics argue. ABBL says a clearer definition of retail investors is important for private banks and wealth managers.