AGEFI Luxembourg - juillet août 2025

AGEFI Luxembourg 30 Juillet / Août 2025 Fonds d’investissement O n July 2, the Luxembourg Stock Exchange (LuxSE) announced the launch of a brand-new initiative which aims to support issuers in their transition journey and provide transparency to investors. The Transition Finance Gateway shines the spotlight on the ex- change’s some 500+ non-financial corporate debt issuers across both conventional and sustainable bonds. Leveraging the powerful transition data of four data providers - CDP, the Net Zero Tracker,theScience-BasedTargets Initiative(SBTi)andtheTransition Pathway Initiative (TPI) Centre. Thismarks a newstep for LuxSE as it shifts its attention from se- curity-focused to entity-level analysis. “With the introduction of our Transition Finance Gateway, the Luxembourg Stock Exchange reaffirms its commitment to pio- neeringsolutionsthatfacilitatethe transition to a low-carbon econ- omy. This innovative platform is designed to provide a compre- hensive viewof climate transition efforts, enhancing the trans- parency and comparability that are crucial for informed decision- making. By consolidating transi- tion data from leading providers, we are not just facilitatingmarket engagement but also driving meaningfulchange.Thisinitiative underscores our dedication to supporting the financial commu- nityinnavigatingthecomplexities of the climate transition and fos- tering a more resilient future,” commented Julie Becker, Chief ExecutiveOfficer of LuxSE. In 2024, global temperatures ex- ceeded the significant 1.5-degree mark above pre-industrial levels according to the International En- ergy Agency (IEA). This means that the transition towards a low- carbon economy is more crucial than ever and more needs to be done to help entities – especially those operating in emergingmar- kets or hard-to-abate sectors – communicateontheirtransitionfi- nance journey. “In a time when others are step- ping away from this area of the market, we – together with the four dataproviders – are stepping uptopromoteclarity,comparabil- ity, and harmonisation on the cli- mate transition. We need tomake sure that issuers and investors alike have the opportunity toplay theirroleinthisimportantmission and our Transition Finance Gate- wayyetagainhighlightsourcom- mitment to facilitating and mobilising the market,” com- mented Laetitia Hamon, Head of Operations and Sustainable Fi- nance at LuxSE. TheTransitionFinanceGatewayis the result of countless months of work and collaboration between LuxSE and four renowned data providers-CDP,theNetZeroTra- cker, the SBTi and the TPI Centre. Free-to-useandaccessibledirectly onthewebsiteofLuxSE,theTran- sition Finance Gateway provides userswithanumber of important benefits. For issuers displayed on the Gateway, it is a way of sup- porting and promoting their cli- matetransitionjourney.TheGate- way enables them to use their dedicated Transition Finance Gateway issuer page to showcase theireffortstostakeholdersaswell as complementary information thatfurtherhighlightstheconcrete actionsthattheyaretakingtotran- sition. It also allows them to see how their peers are establishing credible climate transition path- ways and so, can help to facilitate their own journey. For investors, the Transition Fi- nance Gateway brings the trans- parency and clarity needed to supporttheclimatetransition.The Gateway also includes climate transition data on issuers operat- inginemergingmarketsandhard- to-abate sectors that play a crucial role in the climate transition. Formore information,pleasevisit https://www.luxse.com/transition-finance LuxSE launches a new innovative Transition Finance Gateway ©LuxSE ByDr. SebastiaanNielsHOOGHIEMSTRA* E ffective from16April 2026, Di- rective (EU) 2024/927 (“AIFMD 2”) introduces several key amendments toDirective 2011/61/EU (the “AIFMD”), including those related to liquiditymanagement. Notable changes include the require- ment to select liquidityman- agement tools (“LMTs”), a defined list of permitted LMTs, and specific notifica- tion obligations to compe- tent authorities.As part of AIFMD2, ESMApublished its final reports onGuidelines (“Guidelines”) andRegulatory Technical Standards (“RTS”) for LMTs on 16April 2025. These reports are expected to be adopted shortly by the EuropeanCom- mission. This contribution provides a pre- liminary analysis of the LMT-related changes underAIFMD2 in light of the Guidelines andRTS. Authorized alternative investment fund managers (“ AIFMs ”) are responsible for the liquidity riskman- agement, including the selection, calibration and the (de-)activationofLMTs.Theseshallbespecifiedinthe AIFM’sLMTpolicyandprocedures, aswell shall the possibilityandtheconditionsforusingLMTsselected bementioned in theArticle 23AIFMDdisclosures of the individual funds. AIFMs must carefully select LMTs by assessing key factorsincludingthefund’slegalstructure,investment strategy,redemptiontermssuchasnoticeperiodsand lock-ups,andtheliquidityofassetsalongwithpoten- tialcashdemandsinbothnormalandstressedmarket conditions.Thisensuresthechosentoolsfitthefund’s needs andprotect investors duringmarket stress. To enable AIFMs of open-endedAIFs (“ OE-AIFs ”) based in anyMember State to deal with redemption pressures under stressed market conditions, AIFMs of such AIFs must choose, at least, two appropriate LMTs from the list set out in Annex V, points 2 to 7 AIFMD2.Thelistconsistsofquantitative-basedLMTs (“ QB-LMTs ”) and anti-dilution tools (“ ADTs ”). The following QB-LMTs are mentioned in the list: (i) re- demption gates, (ii) notice periods and (iii) redemp- tionsinkind(“ RiK ”).Inaddition,thefollowingADTs arementioned: (i) redemption fees, (ii) swingpricing, (iii)dualpricingand(iv)Anti-dilutionlevy.Itshallnot be possible for that selection to include only swing pricinganddualpricingmentionedonthelist.AIFMs managingmoneymarket funds are only required to select one LMT fromthe above-mentioned list. For all other OE-AIFs, AIFMs may, besides the two mandatory LMTs, select additional LMTs to ensure the OE-AIF’s resilience. In this respect, the Guidelines recommend AIFMs to select, at least, a QB-LMT and anADT taking intoconsideration, amongst oth- ers,theinvestmentstrategy,redemption policy and liquidity profile of the fund andthemarketconditionsunderwhich theLMTcouldbeactivated. In this con- text, AIFMs may consider whether to select one LMT to use under normal market conditions and one LMT to be usedunder stressedmarket conditions. Quantitative-basedLMTs Redemption gates In accordancewithAIFMD 2,AIFMs are en- couragedtoconsiderredemptiongatesaspart of their LMTs, particularly to address stressed market conditions. Redemption gates can serve as a valuable alternative to full sus- pensions, especially for AIFs with concentrated investor bases or less liquid assets. AIFMs should carefully calibrate the activation threshold, taking into account factors such as NAV frequency, liquidity pro- file, and expected cash flows. Importantly,there’snofixedlimit on how long or how often re- demption gates can be used, pro- vided they remain temporary and in investors’ best interests. Proper calibrationand judg- ment remain essential for their effective use. Notice periods AIFMs may consider extending notice periods as a proactiveLMT,inparticular,forilliquidAIFs,suchas those investing in real estate or private equity. This LMTprovidesadditionaltimetoliquidateunderlying assets and may be useful under both normal and stressedconditions,particularlyduringperiodsofre- demption pressure. However,AIFMsmust carefully calibrate the duration to avoid triggering further re- demptions, ensuring it alignswith theAIF’s liquidity and investor interests. Redemptions in kind For RiK, AIFMD 2 emphasizes a tailored approach. AIFMsshouldassesstheAIF’sstructure,investorcon- centration, and asset types before applying RiK. Im- portantly, RiKshouldonlybeusedwithprofessional investors, in line with the AIFMD rules. RiK, if cor- rectly selected and calibrated, enhances an AIFM’s ability to manage liquidity effectively while safe- guarding investor fairness. ADTs AIFMs may use ADTs across their AIFs to prevent investor dilution andunfair advantages for early re- deemers.Activation thresholdsmust be set thought- fullyandregularlyreviewed,consideringfactorslike fund size, strategy, liquidity, and investor behavior. In cases of lowmarket liquidity or uncertain valua- tions, AIFMs may decide that ADTs might need to becombinedwithotherLMTs.Inthisrespect,AIFMs must always ensure fair asset valuation. ADTs should apply both in normal and stressed markets, covering all explicit and implicit transaction costs. Calibrationshouldstartwithapro-rataapproachbut be adjusted as needed. OverviewofADLs: Regular reviews ensure that ADTs remain fair, and AIFMsmustbeabletojustifytheirsettingstocompe- tent authorities, always prioritizing investor interests. Exceptional Circumstances: Suspensions&Side Pockets “Suspensions” and side pockets are also QB-LMTs. However, they do not fall within the mandatory se- lectionoftwoLMTsrequirement,assetoutabove.In- stead, these may only be activated in exceptional circumstances and where justified having regard to the interests of anAIF’s investors. Suspensionofsubscriptions,repurchasesandredemp- tions specificities AIFMsmayonlysuspendredemptionsinexceptional cases, such as asset valuation issues, severe liquidity problems, cyber incidents, market closures, crises, fraud, or natural disasters. Sometimes, this may in- cludepausingthecalculationoftheAIF’sNAVwhen values are uncertain. However, whenever possible, AIFMs shouldcontinuevaluing theAIFandkeep in- vestors informed. Suspensions are meant to be tem- porary, giving AIFMs time to decide whether to reopen, liquidate the AIF, or activate side pockets to protect investors. Clear rules should guide when to suspend, how tomonitor the situation, andwhen to liftthesuspensiontoensurefairnessandtransparency. Side Pockets AIFMs may under AIFMD 2 should only activate side pockets, bymeans of accounting segregation or physical separation, inexceptional cases andwhen it clearly benefits investors. Examples include when parts of a fund’s portfolio face severe valuation un- certainty, illiquidity, trading bans (like sanctions), or whenaspecificsectororregionisimpactedbyfraud, financialcrises,orwar.Whensettingupsidepockets, AIFMs need to clearly define the trigger conditions andhowtomonitorthem.Theyshoulddecidewhen these conditions no longer apply and consider keep- ingsomecashtocoverpotentialsidepocketliabilities. Regular reviews of theAIFM’s decision are essential to adapt to changing circumstances. Ad-hoc Requests byCompetentAuthorities AIFMs should be able to demonstrate, at the request ofthecompetentauthority,thattheactivationandcal- ibration(-s)oftheselectedLMTsareinthebestinterest of all investors and are appropriate and effective in light ofmarket conditions and the relevant character- istics of the fund (e.g., the liquidityprofile, the type of underlyingassets, the investor base). If a swing factor exceeds a set maximum,AIFMsmust also justify the deviationupon request. NotificationProcedures for (De-)Activating LMTs underAIFMD2 UnderAIFMD2,AIFMsmust,inlinewiththeirLMT policies andprocedures, promptlynotify the compe- tent authority of their home Member Stateofany(de-)activationordeactiva- tionofLMTs,suchassuspensions,side pockets (in advance), or any other LMT used outside the AIF’s ordinary course of business. The ELTIF LMTRegime Open-endedELTIFs,underDelegated Regulation (EU) 2024/2759 (“ ELTIF LVL 2 ”), are subject to a specific “lex specialis” regime that partly derogates from the AIFMD2 LMT rules. Key differences include the re- quirement for AIFMs to justify to the competent au- thority why redemption frequency more frequent thanquarterly is appropriate, aswell as justifyingno- ticeperiodsshorterthanthreemonths.Theserequire- ments are bothnot present inAIFMD2. ELTIFLVL2alsoapplies stricter rulesonredemption limitswithtwoapproaches:onebasedonredemption frequency and notice period (Annex I), and another onredemptionfrequencyandminimumliquidassets (Annex II). If liquid assets fall below the minimum, AIFMs must restore them while still allowing re- demptions. As the liquidity pocket thresholds are stricter than market practice, many ELTIF managers preferthefirstapproach.ADTsarenotmandatorybut at least one is recommended. ELTIF LVL 2 restricts ADTs to anti-dilution levies, swing pricing, and re- demptionfees;anyotherADTsrequireregulatoryap- proval. In sum, the ELTIF regime complements AIFMD2butismoreprescriptive,withlessdiscretion forAIFMs regardingLMTs. TheOELO-AIFs LMTRegime On 12 December 2024, ESMA consulted on draft RTS for open-ended loan-originating AIFs (“ OE LO-AIFs ”) under AIFMD 2. While LO-AIFs are generally closed-ended due to liquidity concerns, OELO-AIFs are allowed ifAIFMs prove that robust liquidity riskmanagement is inplace that is aligned with redemption policies. The draft RTS require: (i) a clear redemptionpolicy, (ii) sufficient liquidassets, (iii) regular liquidity stress testing in line with the ESMA guidelines and (iv) ongoing monitoring. These RTS clarify how AIFMs should implement existing rules and align with the broader AIFMD LMT framework. OE LO-AIFs with an ELTIF label must also comply with the ELTIF LMT rules from 16April 2026 onwards. Outlook:AIFMD2 LMTs: Convergence, Complexity, andCompliance With a view to retailization, open-ended and ever- greenAIFs have recently gained popularity, making thenewobligationsforLMTshighlyrelevantinprac- tice. By imposing a newdedicated LMT framework, AIFMD2notonlyaddressesinvestorprotectioncon- cernsbutalsotomitigatebroadersystemicrisks,such asliquiditymismatches,redemptionshocks,andma- turity transformationvulnerabilities. Yet, the evolving EU framework for LMTs under AIFMD2introducesasignificantdegreeofcomplex- ity.AIFMsmust,incertaininstances,navigateamulti- layered regulatory landscape where the AIFMD 2 LMT regime, the ELTIF regime, and the specific OE LO-AIF obligation may all concurrently apply, de- pending on whether an open-ended has an ELTIF label andqualifies as anOELO-AIF. Such regulatory layeringpresentspracticalchallengesinaligningfund structures, LMTs, and investor disclosures. Moreover, while AIFMD 2 provides a transitional regime for some LMT obligations, newly launched AIFs are excluded andmust achieve full compliance by 16 April 2026. In this context, the forthcoming ESMARTSandguidelinesoffermuch-neededclarity to AIFMs on the selection, implementation, and su- pervisory expectations for LMTs forOE-AIFs. (*)Dr.SebastiaanHooghiemstra isaseniorassociate inthe investment managementpracticeofLoyens&LoeffLuxembourgandSeniorFellow of the International Center for Financial Law & Governance at the Erasmus University Rotterdam. 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