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Institutional investment portfolios in Europe could do with more venture capital, especially when it comes to making green impact investments, the Netherlands’ technology investment envoy Constantijn van Oranje-Nassau said in an IO Talks podcast interview. Van Oranje, who leads Amsterdam-based Techleap, a Dutch government sponsored tech investment initiative, spoke about the global business climate for technology investments, the effects of rising interest rates on tech investments, dilemmas around artificial intelligence, and the new Nato Investment Fund, which is being structured via Luxembourg.

While those European investors still in doubt about the importance of ESG are becoming increasingly bogged down in a rearguard action, U.S. states are increasingly passing anti-ESG laws. “If this becomes federal policy, I would underweight the U.S. in the portfolio,” said Gaya Herrington,  a sustainability researcher and advisor to the Club of Rome.

Fund firms face the prospect of EU rules setting standards of “value for money” for their investment products under the Retail Investment Strategy due to be unveiled on 24 May. This could include disincentives, for example, to charging active management fees for an investment that underperforms an index fund. For all the discussion of a ban on inducements for investment advice, the commission has decided to propose a more limited inducement ban on execution-only investments. 

The top representative of the City of London Corporation on Tuesday began a two-day visit to Luxembourg that includes meetings with Luxembourg for Finance, financial regulator CSSF, the finance ministry and representatives of the grand duchy’s banking sector.

The European Court of Auditors, the EU’s top body designed to improve financial management in the European Union, has criticised the European Central Bank for failing to properly supervise the 110 largest financial institutions in the Eurozone.

A recent European Commission proposal to oblige EU-based eligible counterparties to hold an active account at an EU central counterparty clearing house has raised temperatures in some quarters in Luxembourg.

The US debt ceiling seems to be an endless source of political wrangling, with parties blaming each other and threatening economic chaos. One would almost forget that debt repayment is not up for debate. Not even in the US.

“President Biden is driving America towards its first-ever default, and no one but him will be blamed,” shouts a television ad from the Republican advocacy organisation American Action Network.

Proceeds from Luxembourg registration tax for investment funds remained flat at 1.3 billion euro last year as a small decline at Ucits funds was offset by a steep increase in proceeds from reserved alternative investment funds, or Raifs. The development reflects the growing importance of alternative investment for Luxembourg, although this market remains .

The European Central Bank on Thursday began to slow down its pace of rate hikes, announcing an increase of 25 basis points following seven back-to-back increases of 50 basis points. The ECB said that underlying price pressures in the 20 Eurozone countries remain strong.

Luxembourg is set to modernise its legislation for investment funds under a proposal that will first be discussed later this week in the grand duchy’s parliament. The bill seeks to improve the various structuring options for investment funds. 

The parliament budget and finance committee on Friday will discuss Bill 8183, which was submitted at the end of March. At the 5 May meeting the committee is due to appoint a rapporteur who will coordinate the legislation.