The 'Luxembourg Fund Services in Focus 2020' special report comprises 10 separate articles listed below, these can be read individually or as a sequence.
Adapting and responding to change
Adapting and responding to change
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.
New growth opportunities for an expanding global funds industry
New growth opportunities for an expanding global funds industry
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 below debt levels in the EU.
Maintaining momentum and seizing opportunity
Maintaining momentum and seizing opportunity
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.
Growth of parallel funds in the face of EU complexity
Growth of parallel funds in the face of EU complexity
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.
A growth outlook in a new reality
A growth outlook in a new reality
Q&A with Marcus Peter & Irina Stoliarova, GSK Stockman
What are the key trends currently driving growth and development within Luxembourg’s funds industry?
A European safe harbour for private equity
A European safe harbour for private equity
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.
A unique opportunity for private equity firms
A unique opportunity for private equity firms
The private equity industry is currently navigating a number of challenges in addition to the Covid-19 pandemic, which the whole world is facing. As regulation and political will around environment, social and governance (ESG) factors grows, PE firms are coming under increased pressure to incorporate this approach into their investment strategies. These firms are also keeping a close eye on the progress of the Brexit negotiations to make sure to maintain their access to Europe.
Digitally enabled firms keep competitive edge
Digitally enabled firms keep competitive edge
It is essential for firms with offices in Luxembourg to build strong digitally enabled operations if they are to remain competitive as the Grand Duchy experiences an influx of players in the wake of a potential no-deal Brexit.
Alternatives, ESG and digitalisation on the rise
Alternatives, ESG and digitalisation on the rise
By Stéphane Badey, Arendt – These are uncertain times, but three solid trends driving the Luxembourg investment funds market can be highlighted.
Talent squeeze as industry grows
Talent squeeze as industry grows
As Luxembourg attracts growing numbers of fund managers and service providers, the progress is raising concerns among those with existing operations in the region. Attracting and retaining top talent is becoming more of a struggle as the number of players increases and the industry needs around compliance continue to mount.