A crucial milestone to ensure long-term investments in the real economy

The European Parliament voted to formally approve amendments to the European Long-Term Investment Fund (Eltif) regulation in February 2023. Following publication in the EU’s official journal, they entered into effect on 9 April. Delano talked about the impact of these changes with eight industry figures.

As part of this series, we asked Maria Löwenbrück, managing director of Union Investment Luxembourg, about how Eltif 2.0 would impact Luxembourg, in particular regarding retail investors. Löwenbrück told Delano:

“With Eltif 2.0, the European Parliament put forward a crucial milestone to ensure long-term investments in the real economy, as well as the prerequisites for active investments by retail investors to contribute to a green and digital driven economy in Europe. Luxembourg has top arguments among a few jurisdictions for Eltifs–more than 57% of Eltifs registered with the European Securities and Markets Authority (Esma) are currently domiciled in Luxembourg.”

Löwenbrück stated: “The country is ready to further strengthen its Eltifs expertise leveraging on Ucits and alternate investment funds. This is most likely to boost the Luxembourg financial industry, offering further opportunities to asset managers, banks and service providers to serve new demand for Eltifs. It will also reinforce the business supply chain. Luxembourg is ready to be the centre of excellence for Eltifs.”