Kinetic Partners’ application to become a fund management company (MANCO) in Luxembourg has been approved by the Luxembourg Financial Authority (CSSF).
The issuance of the licence will enable Kinetic Partners (Luxembourg) to host third party Undertakings for Collective Investment in Transferable Securities (Ucits) funds – and in the future Alternative Investment Funds (AIFs) – to ensure adequate risk oversight, corporate governance and compliance of fund structures with local and international laws and best practices.
The successful application follows the introduction of the “Kinetic Passport” service, launched in Q4 2012. The service provides support in the registration, maintenance and overview of fund distribution services for Ucits fund promoters. It is available for all Ucits funds aiming to be distributed cross-border.
Benoit Andrianne, member, Kinetic Partners Luxembourg, says: “We are extremely pleased that the Luxembourg regulator has recognised our ability to bring to market a tailor-made solution for fund promoters that will not only cover risk management, fund governance and supervision of delegated functions like fund administration, distribution and asset management, but also include the capacity to register funds for distribution in more than 25 countries in Europe, Asia and South America thanks to our Kinetic Passport services. We are now in a unique position within the Luxembourg market to provide a global offering to our clients, allowing them to concentrate on their core business: asset management and fund distribution.”
Julian Korek, chief executive, Kinetic Partners, says: “The establishment of a MANCO in Luxembourg is an important part of our growth strategy going forward and has very much been on the agenda in the 12 months since we first moved into Luxembourg with the purchase of AB Fund Services in 2012. We are delighted that clients with funds amounting to more than EUR1.2bn have already committed to move to our new management company platform and have a number of others who are at an advanced stage to follow suit. This service, combined with our Kinetic Passport, provides a truly global service for our clients with the security of a local presence.”