Alfi

ESMA has asked the European Commission to clarify Eltif 2.0 implementation rules, as inconsistent supervision across member states risks delaying investor access to semi-liquid private market funds.

Luxembourg, which hosts more than a quarter of all assets held in European investment funds, has raised a red flag over fresh European Commission plans to create a single supervisor for financial services.

The Luxembourg private debt market has reached a new milestone, surpassing 500 billion dollars in assets under management (AuM) according to the 2024 Private Debt Fund Survey, published by KPMG in collaboration with the Association of the Luxembourg Fund Industry (ALFI). The survey reveals a 21.5 percent growth in AuM, reaching 510 billion dollars, continuing its strong upward trajectory despite global market turbulence.

This week’s overview of transfers, appointments, promotions and other career news in the fund and asset management community in and around Luxembourg includes updates from Alfi, Marsh McLennan, EY Luxembourg and Amundi.

Some 40 new Eltif funds, enabling European retail investors to put their money in private markets, are understood to be in the pipeline, due to enter the market in the coming months.

Panel discussions at Alfi’s Global Distribution Conference on Wednesday exposed differing viewpoints on the definition of a retail investor, casting a shadow over prospects for success for the next generation of European Long-Term Investment Funds, or Eltifs.

Upcoming legislation bringing challenges to the fund distribution industry – notably adding reporting requirements and increasing costs – will be a key focus on Wednesday’s Global Distribution Conference of the Association of the Luxembourg Fund Industry, known as Alfi. “Distribution is still the key to the success of the asset management industry,” said Steven Libby, a partner and Emea AWM leader at PwC and an Alfi board member, who will serve as Master of Ceremony at Wednesday’s event.

Jean-Marc Goy, recently appointed as chairperson of Alfi, the Association of the Luxembourg Fund Industry, speaks to Investment Officer’s Raymond Frenken about his priorities for the association and about Luxembourg’s role as a leading European and global centre for investment funds.

With a clear vision in mind, Jean-Marc Goy, chairperson at the Association of the Luxembourg Fund Industry, Alfi, is determined to foster the growth of the Grand Duchy’s asset management sector by encouraging effective collaborations with diverse stakeholders, including regulators. “The common goal is to strike the right balance between investor protection, and not putting in the way of the industry too many hurdles and obstacles that would stifle innovation”, Goy said in an IO Talks podcast interview.

In the face of market volatility, uncertainty, complexity, and ambiguity, a combination popularly referred to as ‘VUCA’, Ingo Mainert, CIO Multi Asset Europe at Allianz Global Investors, urges investors to embrace a fresh interpretation of VUCA: vision, understanding, clarity, and agility. 

This perspective came during his keynote speech at Wednesday’s ALFI Roadshow in Frankfurt, a gathering organised by Luxembourg’s 1700-member fund management trade association. The event provided a platform for industry experts to exchange insights on the investment climate and topics pertinent to Luxembourg, attracting roughly 300 delegates.