In the wake of the financial crisis and economic downturn that have shaken the alternative investment industry over the past few years, fund managers and service providers face new challenges in restoring impetus to the sector – not least in Europe, where a new regulatory environment will be ushered in by the European Union’s Directive on Alternative Investment Fund Managers, says Nina Kleinbongartz, product manager for alternative investments in Europe with Citi Global Transaction Services. The legislation, drawn up in response to the crisis with the aim of minimising systemic risk, increasing investor protection and enhancing the EU single market,

The number of third-party administrators in Luxembourg has been swelled by the emergence of middle-tier firms that can now compete with the mega-administrators on a global basis and are establishing a presence in leading European fund centres, says James Eldershaw (pictured), director with PFS. Globalisation is being driven by administrators seeking to locate staff and infrastructure in the most favourable jurisdictions to perform their services from a tax, regulatory or cost viewpoint. A global presence also enables administrators to help managers react to any regulatory changes, such as the implications of the EU’s AIFM Directive for cross-border fund distribution.  

By Simon Gray – The financial crisis and economic downturn of the past three years have brought fundamental changes for managers of hedge funds and other alternative investments, but also for their service providers such as administrators and custodians. A mix of changing demands from investors and increased regulatory oversight of the industry is putting pressure on providers, not least to product more detailed, frequent and up-to-date information and to demonstrate their capability to act as a backstop against mismanagement or outright fraud. In Luxembourg these developments are taking place against a backdrop of pressure on the industry to keep

Prior to the global financial crisis, the investment fund industry was focused mainly on revenue growth, on the back of good returns based on an ever-widening range of fund structures, asset classes and global jurisdictions. In the light of current reduced returns, the industry’s focus is more on cutting costs. As a result, reduced cost of IT ownership and operational efficiency from a common processing model are high on the agenda, often facilitated by platform consolidation to remove the cost of a patchwork of systems and processes, says Keith Hale (pictured), global head of transfer agency at Multifonds. Coupled with

The global fund industry has not yet returned to the heights of the boom years before 2007 – indeed, it may never do – but over the past year the mood in the sector has markedly improved. Especially in Luxembourg, there are signs aplenty of renewed confidence that business is coming back to a centre that has built on its reputation as a retail fund domicile to carve out an important niche in the alternative sector as well, says Mariusz Baranowski (pictured), the former managing director of Custom House Fund Services (Luxembourg). An important indicator of Luxembourg’s growing reputation for

Agreement after some 18 months of debate and negotiation on the Directive on Alternative Investment Fund Managers, which will create a single market for the marketing of alternative funds to professional investors throughout the European Union, offers new opportunities for Luxembourg as a fund domicile and servicing centre, say Rémi Chevalier (pictured) and Olivier Sciales, partners with Chevalier and Sciales in Luxembourg. Two-year transition period The text approved by the European Parliament on November 11 introduces a two-year transition period after the final deadline for transposition of the directive into member states’ national law before non-EU alternative fund managers performing

By Simon Gray – The vote in Brussels by the European Parliament on November 11 to approve the EU’s Directive on Alternative Investment Fund Managers, sealing the passage of the much-debated legislation into law, appears set to boost the position of Luxembourg as a domicile and servicing centre for hedge funds, according to members of the alternative fund industry in the grand duchy. While Luxembourg remains better known as a centre for cross-border retail funds, the introduction nearly four years ago of the Specialised Investment Fund regime has highlighted its fast-growing vocation as a centre for alternative vehicles. Since the