Funds
By Stephane Pesch, LPEA – As the world tumbles into a period of economic and political uncertainty, private equity relies on its long term investment strategy and eyes the calm after the storm. Meanwhile, investors and fund managers are drawn to the safe harbour of Luxembourg, one of the few they can rely on these days.
Luxembourg has built a reputation as a cross border platform mainly for its capacity to offer an advanced and complete set of legal tools that suit different investors’ needs, especially after the implementation of the AIFM directive. More recently, we observed a diversification of the
Q&A with Marcus Peter & Irina Stoliarova, GSK Stockman
What are the key trends currently driving growth and development within Luxembourg’s funds industry?
In 2019 Luxembourg fund industry revealed significant growth that was not slowed down in the first three quarters of 2020. As at 31 August 2020, the total assets under management (AUM) amounted to EUR4,696.762 billion compared to EUR4,617.395 billion as at 31 July 2020, showing an increase of 1.72 per cent over one month and over the last twelve months, the volume of net assets rose by 4.31 per cent.
Regardless of the fact that asset managers,
Luxembourg remains a key hub of fund distribution. However, the complexity of the European regulation has seen a rise in managers setting up more parallel funds in other jurisdictions. This is done to accommodate non-EU investors, who may struggle with the demands of the EU fund regulations.
“Something we’re seeing quite a lot of is managers setting up a fund in Cayman or Delaware for US investors, a Singapore or Hong Kong fund to cater for Asian investors and then a Luxembourg fund for the EU market,” observes Anja Grenner, Market Business Development Lead – Fund Services at TMF Group.
There are several macroeconomic factors which support further growth in the private equity, venture capital and real estate space in Luxembourg. Although events like Covid-19, the Brexit transition, US elections and the US-China trade war may damage this potential, managers can also find opportunity in the turmoil.
“There are huge amounts of capital in the markets. Unlike during the GFC, there is no shortage of debt, we’re not in a liquidity crisis. And we are still in a low interest environment – which isn’t going to change any time soon, so we’re going to see more money continue to move
By Marc-André Bechet, ALFI – Luxembourg is in a quite unique position as a global funds jurisdiction compared to other financial centres in the European Union. The country enjoys an unrivalled political and economic stability. It benefits from a triple A rating with a stable outlook, which has been re-confirmed in September by the three rating agencies Fitch, Standard & Poor’s and DBRS Morningstar. Luxembourg is one of the ten countries worldwide with a triple A rating. Debt to GDP, although on the rise as a consequence of the current crisis, will soon reach 26 per cent but remains well
By A Paris – Uncertainty remains the order of the day as the world heads into a period of slow recovery which risks being scuppered by a variety of factors including the US elections, trade tensions and the prolonged impact of the Covid-19 pandemic. Financial services practitioners in Luxembourg, like their peers in other jurisdictions, have had to navigate this volatile environment while continuing to provide a seamless service to clients.
“The crisis has been a strong accelerator of change by spotlighting our resilience, as well as our ability to adapt. While organisations are considering how to accommodate working from home to
Hedge funds made more than USD1 billion from short positions in FTSE 100 companies during October’s stock market volatility, as managers capitalised on renewed uncertainty over the coronavirus pandemic and heightened fears of a no-deal Brexit.
Short sellers generated GBP828 million (USD1.067 billion) from FTSE 100 bets last month, and made profits on 75 out of the 100 companies that comprise the UK’s blue-chip index, according to new data from London-based equities analytics and research provider Ortex Analytics.
In September, hedge funds made GBP543 million betting against the London benchmark.
In what proved to be a “bumper” month for bearish
Hedgeweek, in partnership with Bloomberg, is starting the analysis of European hedge fund performance ahead of the annual Hedgeweek European Hedge Fund Awards.
Integral, a technology company in the foreign exchange market, has reported that average daily volumes (ADV) across its platforms totalled USD43.8 billion in October 2020. This represents an increase of 6.8 per cent compared to September 2020, and an increase of 20.3 per cent compared to the same period in 2019.Read the full story at Institutional Asset Manager…
Hedge funds “relatively prepared” for contested election result
Hedge funds “relatively prepared” for contested election result