Investment Officer

The European Securities and Markets Authority (ESMA) on Thursday unveiled its ambitious Data Strategy for the next five years, signalling a commitment to bolstering data-related technologies, slashing compliance costs, and enhancing data accessibility within the European Union’s financial markets.

Brussels wants to place ESG data providers under the supervision of the financial watchdog, the European Securities and Markets Authority (ESMA). The proposal aims to address concerns about transparency and potential conflicts of interest in the creation of ESG ratings. It is part of a new package of sustainable finance measures presented by the European Commission on June 13th.

Investment businesses positioning themselves for a future shaped by artificial intelligence should maintain their focus on where they want it to be in the long term. And they should not be alarmed by the massive job losses that will stem from AI adoption. The global economy will be supported by productivity gains that the AI revolution will bring, easing the impact of an ageing workforce.

Brussels-based group Eurosif, representing national sustainable investment organisations including Luxembourg’s LSFI, has raised concerns over the European Commission’s draft proposal for European Sustainability Reporting Standards (ESRS). Eurosif argues that the proposal fails to meet the ambitious standards outlined at the end of last year by the European Financial Reporting Advisory Group (EFRAG).

Client experience is becoming a more important competitive battleground in asset management, particularly for wealth managers who face pressure to meet the needs of younger, digital native investors. Nearly 40% of asset managers in the survey said that the client experience was a key point of differentiation versus their competitors, up from just 7% a year earlier, according to a study released this week.

In a damning report unveiled this week, non-profit organisation ShareAction exposed that a mere 10 out of 77 asset managers worldwide have taken steps to limit investments in the most damaging fossil fuels across all their investment funds. The report, which delved into the practices of major global asset managers, urged the firms to urgently confront the challenges of climate change and biodiversity loss by reassessing capital allocation strategies and engaging with the companies they invest in.

May saw a 6.1 percent increase in consumer prices in the EU compared to the previous year, the lowest level since February 2022 and slightly lower than economists’ predicted 6.3 percent. In the United States, inflation has now dropped below 5 percent, the lowest level in two years.

 Luxembourg investment funds experienced a slight decrease in net assets during April, reflecting market fluctuations and uncertainties. The total net assets amounted to 5,139 billion euro as of 30 April 2023, down 0.19 percent from the previous month’s figure, according to financial supervisor CSSF.

Compared to April last year, the volume of net assets has decreased by 6.17% percent.

FundRock Management Company, a unit of Apex Group, has been appointed by Partners Capital to provide ManCo services for their flagship fund.  FundRock will provide ManCo services for Partners Capital’s flagship fund, the Master Portfolio C fund, following their support during the fund’s re-domiciliation to Luxembourg last October.

European investors, mostly hailing from the Netherlands, find themselves increasingly exasperated as several Anglo-Saxon asset managers prioritise financial returns over the critical energy transition within oil and gas companies. This growing trend became starkly evident during recent shareholder meetings held by energy giants BP in late April and Shell in late May.