Raymond Frenken

Some 27 new Reserved Alternative Investment Funds, or Raifs, were registered at the Luxembourg Business Register during February, according to information made public at the end of the month.

The number brings the total new Raifs registered so far this year to 48 funds. That compares to 78 new Raifs that were created during the first two months of last year.

Luxembourg now is home to a total of 2173 Raifs. During 2022, a total of 472 new Raifs were registered. That is an average of 39 per month.

The market for European long term investment funds, or Eltifs, is set to triple in the coming years as high-net-worth clients increasingly look to diversify their portfolios by increasing their exposure to private markets, according to US fund manager BlackRock. “We have, I would say, aggressive plans to expand.”

Banks across Europe and elsewhere in the world should brace themselves for having their climate policies challenged in court after French bank BNP Paribas last week became the first commercial bank to find itself confronted with a lawsuit because of its support to fossil fuels and for contributing to climate change.

The world’s top body to fight money laundering and financial crime on Monday warned that the international high value art and antiquities market has become vulnerable to money laundering and the financing of terrorism. The Financial Action Task Force called on art dealers and governments to up their efforts to fight illicit funding in these markets.

Even after 40 percent of the EU’s most sustainable fund assets was downgraded during the fourth quarter, managers of investment funds with an outspoken sustainability profile are still not sure whether their funds meet the requirements for ESG investments under the EU’s Sustainable Finance Disclosure Regulation.

Further downgrades are expected during the coming months.

Luxembourg’s fund and asset management association Alfi has told Europe’s financial markets supervisor Esma that its proposed rules on the use of ESG-related names in investment fund names lack clarity and will render the marketing of these funds more difficult.

French financial supervisor AMF is calling for a major reform of the EU’s SFDR rules for sustainable finance disclosures and proposed to remove fossil fuel activities from investment funds that are classified as “dark green” Article 9.

This week’s adoption of the updated EU regulation for long-term investment funds, known as Eltifs, raises hopes and expectations, both at a European level as well as on the ground in Luxembourg. Now it’s up to the industry to deliver. The fund ecosystem in the grand duchy is keen to embrace this opportunity.

Luxembourg-based private bank Quintet this year plans to eliminate 165 jobs, or 9 percent of its 2,000-strong workforce in six European countries as it attempts to become a more efficient organisation.

The European Parliament in Strasbourg on Wednesday (15 February) adopted the eagerly anticipated upgrade of the EU regulation for long-term investment funds, a package known as Eltif 2.0. An overwhelming majority of 492 members, or 70 percent, voted in favour.