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26 January 2021

Insurance Europe: European Long-Term Investment Funds review must make the funds more attractive to long-term investors, like insurers


Insurance Europe has published its response to a consultation conducted by the European Commission on the review of the European Long-Term Investment Funds (ELTIF) regulatory framework.

The insurance industry, which is Europe’s largest long-term institutional investor with over ten trillion euro of assets under management, needs access to a wide range of assets that provide attractive returns and portfolio diversification, for the benefit of its policyholders. Therefore, it welcomes a revision of the ELTIF framework that has the objective of making these investments more attractive for long-term institutional investors, such as insurers.

Because the ELTIF legal framework was designed for a wide range of investors, ELTIFs offer institutional investors less flexibility, and are less likely to meet individual investment needs with respect to other investment options. Therefore, the industry encourages the Commission to make refinements to the framework to remove restrictions that prevent any significant interest from insurers.

Increasing the attractiveness of ELTIFs for institutional investors could be achieved by revising the framework in terms of fund design, portfolio composition and diversification, as well as eligibility of investment assets.

Full response

Insurance Europe



© InsuranceEurope


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