Efama

Inflows into alternative investment funds in Europe rebounded in November when compared to massive outflows during October, as inflows for Ucits funds fell significantly, according to data released by the European Fund and Asset Management Association, or Efama.

When it comes to EU financial regulation it won’t surprise anyone to hear that more is in store for the year ahead. Investment Officer looks ahead together with Vincent Ingham, director of regulatory policy at the European Fund and Asset Management Association in Brussels.

Regulatory uncertainty that the industry is contending with as a result of the complex range of interacting legal requirements, Efama, the EU’s main trade body for asset management, said. Luxembourg’s Alfi argued that “the element of intent” needs to be considered when making judgements on greenwashing.

Total assets under management in Europe amounted to 28,400 billion euro by the end of September, reflecting a decline of about 12 percent from year-end 2021 levels as bond and stock markets fell amid rising inflation and interest rates and slowing economic growth following the outbreak of war in Ukraine.

Following in the footsteps of the European Parliament earlier this month, the Council of the EU on Monday finalised the legislative process by adopting the Corporate Sustainability Reporting Directive, known as CSRD.

Efama, the trade association for Europe’s fund and asset management industry, welcomed the adoption of what it sees as “a crucial piece of the puzzle”, but warned that the industry still faces years of uncertainty because of the “staggered” adoption between the years 2025 and 2029.

TINA - There Is No Alternative - is gone. That’s not a bad thing. And don’t write off the 60/40 portfolio just yet. And the asset management industry has had a clear impact on society and sustainability.

European Fund and Asset Management Association Efama will host its 2022 Investment Management Forum on Thursday and Friday in Brussels. Director-general Tanguy Van de Werve spoke to Investment Officer about prospects for the industry, sustainable finance as the new normal, persistent pressure on costs, and the need for financial education. 

Europe’s fund and asset management industry, seeing rapid growth in investor demand for sustainable products, is asking EU policymakers for a robust and transparent new legal framework that clearly defines how ESG and sustainability ratings for investment products are determined.

Rising inflation, the tightening of monetary policy, Russia’s invasion of Ukraine, and the resulting risks to economic growth have caused sales of investments funds defined as Undertakings for Collective Investments for Transferable Securities, or Ucits, to turn negative in the second quarter, according to the European Fund and Asset Management Association, known as Efama.

One month after the EU ordered the investment sector to ask clients for their sustainability preferences, investment firms appear to show limited enthusiasm for complying with the new requirements as complexity around the EU’s ESG rules persists and greenwashing fears linger.