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Understanding Investing 简体中文网页 Members section

- Press releases

L’ALFI a pris connaissance d’une version non-officielle de la nouvelle convention fiscale franco-luxembourgeoise. Une analyse préliminaire soulève en effet quelques interrogations pour ce qui est du domaine des fonds d’investissement. 

 

L’ALFI ne se prononcera pas avant l’accomplissement d’une analyse détaillée basée sur une version officielle de la convention.

Updated on 21/03/18
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- ALFI statements

On 14 March 2018, ALFI responded to the European Commission consultation on fitness check on supervisory reporting.

Download the document here.

Updated on 20/03/18
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- ALFI statements

On 16 March 2018, ALFI responded to the ESMA consultation on their draft RTS on “Disclosure and operational standards”. The Securitisation Regulation has been published in the Official Journal of the European Union and will enter into force 20 days after its publication. 

The Regulation requires the European Commission to adopt delegated acts in a number of areas. 
ESMA was mandated to draft Regulatory Technical Standards covering securitisation disclosure requirements, operational standards for handling disclosures, and the terms and conditions of access for users of securitisation disclosures. Please find ALFI’s comments on the ESMA draft RTS on “Disclosure and operational standards” here
Updated on 19/03/18
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- Press releases

ALFI, the Association of the Luxembourg Fund Industry, has been engaged in the Capital Markets Union initiative from the outset and has actively responded to the European Commission’s 2016 consultation on barriers to the cross-border distribution of investment funds. 

ALFI, as Europe’s largest investment fund hub, with a wide and long standing experience in cross-border distribution, acknowledges the intention and efforts of the European Commission in its recently published proposal amending Directive 2009/65/EC and Directive 2011/61/EU to remove barriers to cross-border distribution of collective investment funds while ensuring the requirement for a high level of investor protection.

ALFI however, takes the view that the Proposal could have been given greater scope and effectiveness in particular with regards to the notions of marketing and pre-marketing which have not been extended beyond the AIFM Directive context. ALFI supports an approach where ESMA would provide guidelines and examples to ensure a common understanding and implementation in the EU.

ALFI also considers that the text as proposed does not provide for the level of harmonization required to effectively achieve the removal of practices that have been identified as barriers to cross-border distribution of investment funds in the EU. ALFI notes that the framework outlined for pre-marketing, the conditions set for the de-registration of investment funds and the requirements for local administrative agents remain too restrictive in the context of actual practice.

ALFI intends to pursue its commitment towards the removal of barriers to cross-border distribution of investment funds and towards the Capital Markets Union initiative as a whole and will provide the European Commission with detailed feedback on its proposal and accompanying impact assessment in due course.

 

Download the press release in English here.

 

Updated on 16/03/18
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- Press releases

ALFI, the Association of the Luxembourg Fund Industry, welcomes today’s publication of the European Commission’s ‘Action Plan: Financing Sustainable Growth’.

ALFI has been at the forefront of actively promoting sustainable finance opportunities for asset managers. ‘Responsible Investing’ is a major pillar of the Luxembourg investment fund industry and ALFI firmly believes that asset managers can play a key role in sustainable finance. Market growth has strengthened this conviction: the European Responsible Investing fund market has almost doubled since 2010, reaching 476 billion EUR of Assets under Management at the end of 20161.1 Luxembourg is the leading domicile for European Responsible Investment Funds, accounting for 31% of funds and 35% of total Assets under Management.


ALFI therefore supports the overall objectives of the Action Plan. However, with regard to the final report by the High-Level Expert Group (HLEG) on Sustainable Finance, it is important to bear in mind that ‘ the art of implementation will be to not increase the overall regulatory burden and complexity’2 .


Denise Voss, Chairman of ALFI, says: “Whilst we welcome the Action Plan, we believe that no specific legislative measure is needed to clarify asset managers’ duty to incorporate sustainability in the investment process. Market growth demonstrates that managers are already aware that sustainability criteria are essential elements in ensuring that they act in the best interest of their clients over the long term. The concept of asset managers’ fiduciary duty is already aligned with sustainable and responsible investment.”  


ALFI also believes that it is essential that the European Union does not restrict the investment universe available for European asset managers.  


Ms Voss continues: “A prescriptive approach to these issues is not required and may slow innovation and further development. Greater transparency and market clarity however are a priority and the proposal for a unified EU classification system or taxonomy to define what is sustainable (and what is not) is a positive step. In addition, the enhanced disclosure requirements go in the right direction.”

 

She concludes: “We agree that labels are an important tool for investors, also for retail investors, and in order to build trust. A voluntary EU-wide scheme should ideally build upon the experience of the most advanced European labels, such as i.e. the LuxFLAG Green Bond or Climate Finance label.”
 

1ALFI KPMG Responsible Investing Fund Market survey, 2016
2https://ec.europa.eu/info/sites/info/files/180131-sustainable-finance-final-report_en.pdf

 

Download the press release in Enlgish.

 

 

Updated on 09/03/18
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- ALFI statements

ALFI took the opportunity to provide high level comments on the second set of advice on specific items in the Solvency II Delegated Regulation, focusing in particular on the risk margin and its impact on the insurance world and thereby the impact on the asset management world.

Furthermore, ALFI welcomed the proposed simplification of the look-through approach excluding unit-linked funds from the 20% threshold established by Article 84(3) of the Delegated Regulation. Finally, ALFI pointed to the high complexity of EIOPA’s proposal for modelling the credit rating of unrated debt through internal models and for enabling unlisted equities to receive the capital charge of listed equities.

Updated on 06/02/18
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- Press releases

Luxembourg domiciled funds reached a new all-time record at the end of December 2017, with assets under management standing at EUR 4,159 billion, according to figures issued by the CSSF, the Luxembourg regulator.  Assets under management increased by EUR 418 billion, growing 11.18% over the year. 

 

“Net sales tripled in 2017 compared to 2016, going from EUR 99.6 billion to EUR 308.4 billion” says Denise Voss, ALFI chairman.

During 2017, nearly 74% of the growth in AUM was from new money invested into Luxembourg funds. UCITS saw the bulk of investments but alternative strategies such as private equity and real estate saw growing interest from investors, too. The remaining increase in assets under management in Luxembourg funds during the year was a result of the impact of global financial markets.

Recent growth in assets under management in Luxembourg funds has been quite spectacular, rising from EUR 3,000 billion in September 2014 to EUR 4,000 billion in September 2017, a period of just three years. Key to this success is Luxembourg’s standing as the cross-border fund centre for European and international investors.

Updated on 06/02/18
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Luxembourg domiciled funds reached a new all-time record at the end of December 2017, with assets under management standing at EUR 4,159 billion, according to figures issued by the CSSF, the Luxembourg regulator.  Assets under management increased by EUR 418 billion, growing 11.18% over the year. 

“Net sales tripled in 2017 compared to 2016, going from EUR 99.6 billion to EUR 308.4 billion” says Denise Voss, ALFI chairman.

 

During 2017, nearly 74% of the growth in AUM was from new money invested into Luxembourg funds. UCITS saw the bulk of investments but alternative strategies such as private equity and real estate saw growing interest from investors, too. The remaining increase in assets under management in Luxembourg funds during the year was a result of the impact of global financial markets.

 

Recent growth in assets under management in Luxembourg funds has been quite spectacular, rising from EUR 3,000 billion in September 2014 to EUR 4,000 billion in September 2017, a period of just three years. Key to this success is Luxembourg’s standing as the cross-border fund centre for European and international investors.

Updated on 06/02/18  
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- Press releases

ALFI reports a growth of 12% of AUM in 2017

The Luxembourg fund industry had a very good year in 2017 with solid growth as reported by ALFI.

  • Luxembourg domiciled funds marked a milestone development in September when assets under management reached 4000 billion euros. This means that assets under management in Luxembourg funds have risen from EUR bn 3000 to 4000 in just 3 years.
  • At the end of November 2017, AUM stood at 4135 billion euros, an increase of 458 billion euros or over 12% growth over the last 12 months.
  • Since last January, 73% of the growth in AUM was from new money being invested into Luxembourg funds – most into UCITS but also into alternative strategies such as private equity and real estate, with the remaining increase due to the impact of global markets.
  • At the end of September, 32% of new investments into European funds since January 2017 were invested into Luxembourg-domiciled funds.
  • Luxembourg funds are held by investors in more than 70 countries, making the cross-border dimension of the Luxembourg fund centre unequalled. The global reach of Luxembourg funds remains the backbone of the continued success of Luxembourg’s fund industry worldwide.

Denise Voss, chairman of ALFI, explains: “The Luxembourg Fund Industry had a very good year in 2017 and 2018 brings plenty of opportunities, with the progress of Europe’s Capital Markets Union, the plan to introduce a Pan European Personal Pension Product, pick up in sustainable finance and the development of new technologies.

She continued: “However, challenges still exist for the fund industry, particularly in regard to regulation, where ALFI is currently busy on 17 pieces of regulation, together with the 1,800 members of our 150+ working groups. All of them are important and our efforts to make sure that regulation works in the interest of both the investor and the asset manager alike is a fundamental part of ALFI’s mission.”

 

ALFI sets out its priorities for 2018:

Distribution opportunities worldwide

ALFI is celebrating its 30th anniversary this year and it will continue to facilitate international distribution opportunities around the globe.


It will continue to develop its contacts in Latin America, where Luxembourg UCITS are amongst the preferred investment solutions for local pension fund administrators looking to diversify their portfolios internationally in a well-regulated environment. In Asia, rapid growth of personal wealth is encouraging, and ALFI will continue to nurture its close relationship with the many fund markets it serves in the region.

 

Capital Markets Union (CMU)

ALFI believes that the key element of the European Commission’s plan to create a ‘Capital Markets Union’ is the overall thrust of the CMU ‘to mobilise capital in Europe and channel it to all companies and, in particular, SMEs and infrastructure projects that need to expand and create jobs’. In practice, this entails, among other things, removing obstacles to the cross-border distribution of investment funds, which ALFI strongly supports.

Denise Voss explains: “In ALFI’s 2020 Ambition Paper, we highlight the essential role investment funds play in funding the economy, linking investors’ savings with those parts of the economy that require capital to drive growth. Over the past few years this has been somewhat downplayed given the focus on regulation, so it is good that the spotlight is once again on the positive contribution that investment funds make to the economy. The CMU should help investors have access to a larger choice of investment solutions.”

 

The Pan-European Personal Pension Product (PEPP)

Increasingly European households need to assume more responsibility for their own financial well-being, including retirement. At the same time, if the European economy is to be strengthened, mobility of workers must also increase, however, fragmentation between national markets and limited portability of personal pension products make this difficult.

Denise Voss comments: “The European Commission’s plan to create a standardised pan-European Personal Pension Product (PEPP) comes at the right time. The PEPP will link the investment product to an individual rather than to an employment relationship and provides interesting opportunities not only for workers and job seekers, but also for the asset management industry. As providers of investment solutions, asset managers should be keen to offer the PEPP and we believe that Luxembourg, with its longstanding expertise in cross-border distribution of retail investment products, is an ideal hub for PEPP providers.”

 

Sustainable finance/ Responsible investing

ALFI was an early mover in actively promoting responsible investing opportunities for asset managers and investors. We have organised annual conferences and commissioned surveys on responsible investing since 2006, with the aim to bring this topic to the forefront.

Denise Voss comments: “We believe asset managers can play a key role in fostering sustainable finance, which has been increasingly requested by investors. The market growth that we have seen in recent years – the European responsible investing fund market almost doubled between the end of 2010 and the end of 2016 - has strengthened our conviction. The Luxembourg investment fund industry is also well placed to contribute to moving climate change financing forward and is already the leading fund domicile for all environment-related investment funds in Europe with 45% of AUM.

 

Brexit and the ESA Review

Denise Voss says: “ALFI follows the Brexit negotiations with interest. The City of London is Europe's leading financial centre and will remain so for years after Brexit. Its interconnection with the EU's financial and economic system is undeniable and future relations with the United Kingdom should be determined in this light.”

She continues: “Luxembourg has a long standing working relationship with the UK, evidenced by the fact that over 17% of assets under management in Luxembourg funds are managed by UK asset managers. Our efforts will focus on how we can continue this constructive relationship even after Brexit.”

Whilst in principle separate, the links between the Commission's Proposal on the review of European Supervisory Authorities (ESAs) and the Brexit negotiations can`t be denied. In September 2017, the European Commission published its proposal on the revision of the ESAs, where it intends to extend the powers of the European Securities and Markets Authority (ESMA) to include direct supervision of some investment funds, namely ELTIF, EuSEF and EuVECA, as well as the ability to review authorisation requests from fund houses wishing to delegate or outsource part of their activities to non-EU jurisdictions.

Denise Voss states: “ALFI does not see any benefits of these proposals for the end investor. We do not embrace direct supervision by ESMA, as we believe that the close oversight of market participants and products by National Competent Authorities guarantees the best and most efficient level of investor and market protection. Furthermore, we are very concerned about the proposed review by ESMA of delegation arrangements and outsourcing to third countries. This would introduce an extra layer of regulation, additional costs and delays in time to market. Delegation is a tried and tested practice in the fund industry for 30 years, and there is no evidence of a market failure resulting from delegation. The delegation model is a cornerstone of the global success of the European asset management industry and as such provides investors with access to expert asset management from around the globe.

“We are calling for a significant change in the Commission’s Proposal and have had dozens of meetings with important stakeholders in Europe and internationally to express our concerns about this proposal and we will continue to make ourselves heard on this topic.”

 

FinTech

FinTech and technology in general have been an important focus for ALFI. The Association’s Digital/FinTech Forum aims to raise awareness, identify the challenges and develop the opportunities inherent in new digital technologies for the fund industry. In 2018 ALFI will continue its regular interaction with FinTech players to monitor and develop Regtech and Blockchain tools, which will reduce costs and increase efficiency in the industry which will ultimately benefit investors.

Download the press release in English.

Updated on 31/01/18
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- ALFI statements

On 22 January 2018, ALFI submitted its response to the European Commission consultation on institutional investors and asset managers' duties regarding sustainability.

In its interim report, published in July 2017, the High Level Expert Group on sustainable finance recommended that the European Commission clarify that the fiduciary duties of institutional investors and asset managers explicitly integrate material environmental, social and governance factors and long term sustainability. As such, the Commission has published a consultation paper on how asset managers and institutional investors might include environmental, social and governance factors when taking decisions.

The consultation forms part of the Commission's efforts to mobilise private capital towards green and sustainable investments to enable the transition to a low-carbon economy and aims to show the EU’s commitment to mitigate risks posed by climate change and environmental challenges.

Click here to see the document.

Updated on 23/01/18
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