Luxembourg Reinforces its Position as Global Fund Hub
10 June 2020
Luxembourg is a key investment jurisdiction in Europe and the hub for our single-source solution, enabling the delivering of a full suite of services across fund, financial and corporate solutions. With over 600 people based locally in Luxembourg, the home of both our Management Company (“ManCo”) and Banking subsidiaries, we have a keen focus on delivering exceptional local service to a wide range of clients.
A Lens on Luxembourg
Luxembourg continues to develop its dominant role in the fund industry with EUR 4,718 billion Assets Under Management in 2019, showcasing a year on year increase of 16%. 2020 looked to be a successful year for ManCos with the increased regulation over the past 18 months and many funds increasingly focused on Environmental, Social and Governance factors.
Apex subsidiary, LRI Invest S.A. (“LRI”), a leading provider of ManCo services, again showed a substantial increase in Assets under Management over the last year and now is Luxembourg’s 4th largest Alternative Investment Fund Manager, according to PwC’s Management Company Observatory Barometer.
Source: PwC Luxembourg, Top 10 Luxembourg Authorised AIFMs – as of 31 December 2019 ( in million Euros)
Source: PwC Luxembourg, Top 10 Third Party ManCos – as of 31 December 2019 (in million Euros)
Since LRI, a Super ManCo, became part of the Apex Group, we have broadened its service offering to deliver UCITS Management Company services in addition to AIFM strengthening its position in the Top 5 within the local market. Through LRI, we now manage both financial and real asset funds for 3rd parties in all relevant asset classes and instruments.
As asset management space and regulatory environment continues to evolve with investors increasingly looking for efficiencies to stay competitive. Our Super Manco capabilities enable these companies to streamline their operations in a cost-effective manner, complemented by a full suite of solutions accessible through one single provider; including fund admin, middle office, banking, depositary, custody services and even business services including HR and Payroll solutions.
“Being part of Apex Group, we act as a truly global partner. We support our clients through our local office network in 11 countries thus enabling a uniquely coordinated full-service experience across management, central administration, depository and corporate services. These services can be provided “in-house” or -if desired- within an open architecture.” – Frank De Boer, Managing Director, LRI Invest SA
Thoughts Ahead
Increasingly complex regulatory and reporting requirements, a continuing low interest rate environment and simultaneous capital allocation pressure will likely further enhance the attractiveness of regulated cross-border products and demand for 3rd party service providers.
“LRI has the scope and scale to support international clients across most asset classes. Covid-19 and related financial market turbulence was regarded as a model test case by many clients. We support our clients throughout the crisis virtually on a business-as-usual basis, which shows the robustness of our set-up, relative to many in-house solutions. This might further propel outsourcing of servicing functions.” – Frank De Boer, Managing Director, LRI Invest SA
The full findings of this year’s PwC Management Company Observatory Barometer can be viewed at:
https://www.pwc.lu/en/asset-management/management-company.html
