After an increase of around 50 per cent to about eleven billion euros by the end of 2022, the market should probably easily reach or even exceed the 16 billion euro mark this year. “In 2024, even faster growth could be on the cards, which will then help ELTIFs gain further popularity”, says Patzelt. The number of ELTIFs issued will also rise sharply.
One reason is certainly the changed portfolio composition, according to Patzelt: The quota for permissible forms of investment was reduced from 70 to 55 percent. In addition, the diversification quotas were adjusted. A single tangible asset may now make up 20 percent of the total portfolio instead of ten percent as before. Furthermore, the permissible leverage ratio for products that are also distributed to non-professional investors was increased from 30 to 50 percent. “All of this will further advance ELTIFs”, says Patzelt.
With 44 ELTIFs domiciled here, Luxembourg is the frontrunner in terms of products. This is followed by France with 21 products, while ten ELTIFs were launched in Italy and two in Spain. The distribution is also reflected in the volume: Luxembourg has the largest share of ELTIF investments with around 5.8 billion euros (as of 2022).
In terms of new investments, the focus is increasingly on ELTIFs in which private investors can also invest. The share of products in the total market that can be sold to both private and professional clients rose from a good 50 to around 60 percent in 2022 compared to the previous year. “Advisors can thus open up markets for their clients that offer new assets that were previously difficult to invest in”, says Patzelt.
Additional information is available at www.moventum.lu
As an independent financial service partner, Moventum S.C.A. has been providing a home for financial service providers such as advisors and asset managers as well as institutional clients from all over the world for more than 20 years. The digital “MoventumOffice” platform offers access to more than 10,000 funds, ETFs and other securities. In addition, it allows financial advisors to open securities accounts for their clients, to place trading orders and to use analysis, reporting and support tools. Institutional clients are able to outsource their entire fund trading with complementary services to Moventum as part of collective or individual custody account management. A variety of fund services are assumed for asset managers, ranging from registrar and transfer agent services to fund accounting, company administration and domiciliation services.
Moventum Asset Management S.A. (Moventum AM) is a wholly owned subsidiary of Moventum S.C.A. Since 2019 Moventum AM manages Moventum’s own funds of funds and individual mandates as part of its asset management portfolios.
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