Asset Servicing

New BaFin draft guidelines clarify that investor involvement in asset-level decisions risks disqualifying a fund as an AIF under EU rules—a shift with implications far beyond Germany, writes Sebastiaan Hooghiemstra at Loyens & Loeff.

Throughout the financial sector, technology is an important topic and leads to major changes in procedures, with financial companies themselves and also with the regulators. The new rules in Luxembourg for prospectuses should make life easier. In the Netherlands, the regulators lay a focus on the Digital Operations Resilience Act which gives an additional layer of supervision.

The European Long-Term Investment Fund (Eltif) regime is entering a new phase, driven by a surge in local fund launches and rising domestic demand across Europe.

“The total value of Dutch securities holdings reached nearly 3,500 billion euros in 2024.” It’s one of those headlines—this one from the Dutch Central Bank (DNB)—that most investors overlook, let alone actually read. But behind that enormous figure lies a world that once again shows how deeply entrenched the traditional investment industry remains in an outdated mantra.

US equities have calmed after a turbulent start to the year, but the mood is far from euphoric. With President Trump’s so-called “Liberation Day” tariffs set to be announced on Sunday, it remains uncertain whether the recent gains mark the beginning of a recovery or simply a pause before the next downturn.

This week, we are comparing two asset managers rather than individual funds. When analysts evaluate a fund, they assess and assign ratings to its People and Process pillars while the methodology for Morningstar Medalist Ratings also incorporates and assessment of the Parent pillar. This Parent pillar is our focus this week.

The German Bundestag’s decision to boost defense spending through debt issuance triggered a correction in European defense stocks. Investors are taking profits on high valuations as questions arise about whether they are still justifiable.

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.

Fannie Wurtz from Amundi Asset Management, notes that a striking number of Asian investors are channeling their savings into European funds. The French executive is also optimistic about the sector’s long-term prospects. “Several megatrends are driving the European market.”