Raymond Frenken

Global wealth linked to art and collectibles is projected to grow by nearly a third to 2.861 billion dollars by 2026 from the level of 2.174 billion in 2022, according to the Deloitte Luxembourg Art & Finance Report 2023.

Although discussions about environmental and social governance, or ESG, and sustainable investing may have encountered a lull during recent weeks, investors and asset owners worldwide still consider this topic as hugely significant in their discussions with asset managers, according to one of Europe’s top chief investment officers.

The UK’s financial supervisor still sees shortcomings in the asset management industry in regards to sustainable investment funds ahead of its publication of more stringent anti-greenwashing rules.  

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”.