Investment Officer Luxembourg

The European Securities and Markets Authority (ESMA) on Thursday unveiled its ambitious Data Strategy for the next five years, signalling a commitment to bolstering data-related technologies, slashing compliance costs, and enhancing data accessibility within the European Union’s financial markets.

Brussels wants to place ESG data providers under the supervision of the financial watchdog, the European Securities and Markets Authority (ESMA). The proposal aims to address concerns about transparency and potential conflicts of interest in the creation of ESG ratings. It is part of a new package of sustainable finance measures presented by the European Commission on June 13th.

“Active management is a sham — no wonder my returns are suspect,” writes Stuart Kirk, FT columnist and former portfolio manager, in his latest attack on active management. However, he conveniently overlooks one important detail.

Investment businesses positioning themselves for a future shaped by artificial intelligence should maintain their focus on where they want it to be in the long term. And they should not be alarmed by the massive job losses that will stem from AI adoption. The global economy will be supported by productivity gains that the AI revolution will bring, easing the impact of an ageing workforce.

Brussels-based group Eurosif, representing national sustainable investment organisations including Luxembourg’s LSFI, has raised concerns over the European Commission’s draft proposal for European Sustainability Reporting Standards (ESRS). Eurosif argues that the proposal fails to meet the ambitious standards outlined at the end of last year by the European Financial Reporting Advisory Group (EFRAG).

The fund industry is a poster child for digital transformation. The industry is characterised by easy-to-follow processes and a high degree of automation. With just a few clicks, investors and auditors can interact with fund managers seamlessly.

Sounds exciting. The reality though is quite different.

In a significant market trend, European fund investors are increasingly redirecting their investments towards larger, passively managed mutual funds and ETFs, at the expense of actively managed smaller ones. This strategic shift has ignited a sustained downward pressure on costs across various fund types and strategies, according to the latest insights unveiled on Monday by the prominent European fund sector group Efama.

Benefiting from a favourable business climate, robust infrastructure, and a strategic position as a gateway to Europe, the Netherlands presents enticing options for fund managers seeking practical and tax-friendly solutions in the alternative investment fund (AIF) space, write Tom Loonen and Jan Saalfrank of Pinsent Masons.