News Round-up: Trump tax plan alarms European asset managers
Donald Trump’s proposed “One, Big Beautiful” budget bill includes a controversial measure that would sharply raise taxes on overseas investors earning income from US assets. If passed, it would hike the rate of US withholding tax on dividends, interest and royalties from 30% to 50% over four years for countries the US views as having unfriendly tax policies. This has sparked alarm among European asset managers, particularly in Ireland, as physically replicating ETFs domiciled here currently benefit from a reduced dividend holding tax rate. While the bill passed the House, its fate in the Senate remains uncertain amid growing opposition. Chris Flood has the full story.
Next up, Europe could see its first hedge fund ETF within the next two years, according to ETF veteran Arnaud Llinas. Speaking at ETF Stream’s ETF Ecosystem Unwrapped 2025, Llinas – formerly head of Amundi’s ETF business – said momentum is building following Bridgewater’s recent launch of a hedge fund ETF in the US. While Europe’s regulatory environment presents some challenges, he pointed to growing regulatory flexibility around disclosure and noted that many hedge funds have already adapted from monthly to daily dealing under UCITS rules. Read the full story here.
Finally, BNP Paribas Asset Management’s (BNPP AM) global head of ETF and index business development Lorraine Sereyjol-Garros is set to leave the firm after nearly nine years to join TP ICAP as managing director and head of continental Europe, according to French media outlet L’Agefi. During her time at BNPP AM, the firm's ETF assets grew to $31.9bn, with key milestones including the launch of its first active but non-alpha generating ESG ETFs. Her departure follows BNPP AM's recent acquisition of AXA’s investment arm, boosting its assets past €1.5 trn. Read the full story here.
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