Investment Officer

Luxembourg’s fund industry supports the introduction in new EU retail finance legislation of more lenient ‘opt-up’ criteria for retail clients that would give them the same status as professional clients. At the same time, it opposes the creation of a new category of semi-professional investors.

The European Council and the European Parliament have taken an important step towards the implementation of a new sustainability reporting system in Europe. It concerns the Corporate Sustainability Reporting Directive, or CSRD, which requires companies to have their reported sustainability information independently verified.

An investment portfolio today should consist predominantly of US assets. Impact investing is sustainable investing 2.0 and long duration assets continue to struggle. That is what independent investment expert Jan Longeval said during the closing debate of Portfolio Day, which Investment Officer organised in Brussels last Thursday. 

European Depositary Bank, the Luxembourg-based provider of banking, depositary and custody solutions, on Monday announced that it has appointed David Claus as CEO and member of its board of directors. Claus until recently was the Luxembourg head of BNY Mellon.

The bank, known as EDB, is part of Apex Group and is one of the largest providers of depositary services in Europe for regulated Ucits and alternative funds, with over 160 billion in assets under depositary as of May 31.

Russia’s attack on Ukraine on 24 February this year is a “turning point and a milestone in European history. Its impact is enormous. No policy area remains unaffected.” So said Steven Van Hecke, professor of international relations at the KU Leuven university on Thursday at Investment Officer’s Portfolio Day in Brussels. 

Mutual funds saw net outflows last month at a rate of more than one billion euro per day, while firms selling Exchange Traded Funds experienced a small level of net inflows, according to new data from Refinitiv Lipper. 

Mutual funds experienced net outflows of 32.3 billion euro last month, compared to net inflows of 2.5 billion for Exchange Traded Funds.

Luxembourg’s Ministry of Finance has chosen asset management firm Schroders and its impact investment unit BlueOrchard as industry partners for a new climate action partnership. Schroders will serve as the management company for the finance ministry.

BlueOrchard has been appointed as the investment manager for this climate impact strategy, the firm said in a 16 June press release announcing that it had won an international tender process.

JP Morgan Asset Management and Pictet separately announced the launch on Tuesday of new climate change solutions funds. Both funds seek to invest in companies that have aligned their products and services with the UN’s Sustainable Development Goals, known as the SDGs.

Luxembourg’s financial supervisor CSSF on Monday ordered alternative investment managers to exclusively use a new ePassporting module in its eDesk electronic reporting portal to share notifications for the marketing of investment products registered in the Grand Duchy.

Net assets of worldwide investment funds decreased by 2.5 percent in the first quarter as the decline in the United States and Europe was only partly offset by net inflows in the Asia-Pacific region, according to the latest International Statistical Release published by the European Fund and Asset Management Association, known as Efama. Bond and money market saw strong net outflows during the first three months, although China bucked the with rising inflows for money market funds.