Henk van Eldik has lived and worked in Luxembourg for decades. As an expert on the funds industry, he sees how the Grand Duchy continues to evolve as an innovative European investment center.
Rain taps on the roof of Vinissimo, an Italian wholesale shop housed in an industrial warehouse along a busy road near the ultra-modern Cloche d’Or shopping center in Luxembourg City. Across the street looms the sleek glass office with a brand new CA Indosuez logo, the French asset manager that last year acquired Degroof Petercam. A few professionals, casually dressed on this summer day, quickly cross the street for a lunch of parma ham sandwiches or hot pasta. Those not leaving with an espresso in hand walk away carrying a fine bottle of Barolo or a box of ravioli.
At one of the sturdy wooden tables sits Henk van Eldik. The Dutch-born professional has lived and worked in Luxembourg for decades. What began as a temporary stint during his military service in the early 1980s turned into an international career in the funds industry, leading him via Fidelity to his current role as partner in a third-party marketing firm. Luxembourg also shaped his personal life: he met his Luxembourgish wife here, lived for a time in Zeist in the Netherlands, and eventually moved back to Luxembourg for his role at Fidelity.
“Luxembourg is at its best when it’s informal,” he says, sipping his espresso. “The real conversations happen in places like this.”
During lunch, Jean-Marc Goy happens to join the table. A former director of Luxembourg’s financial regulator, the CSSF, he is now chairman of Alfi, the influential trade association for the Luxembourg funds industry. Goy openly expresses his concerns about recent European discussions on so-called “eligible assets” in Ucits funds. Van Eldik listens, nods, and asks questions. “It says a lot about Luxembourg that someone like Jean-Marc just joins in. Openness is the norm here. You can be critical without it becoming personal.”
From banking secrecy to an open ecosystem
Van Eldik has witnessed Luxembourg change dramatically over four decades. “When banking secrecy fell after the 2008 global financial crisis, everyone thought: that’s the end for Luxembourg. But Luxembourg surprised again.”
Instead of slowing down, the country reinvented itself. Family offices grew rapidly, helped by flexible structures such as the SIF (Specialised Investment Fund) and later the RAIF (Reserved Alternative Investment Fund). Today, Luxembourg is a multilingual, cross-border hub where legal expertise, flexibility, supervision, and European passporting come together in a hard to match ecosystem.
Still, in the Netherlands a persistent image of Luxembourg as a tax haven remains. According to Van Eldik, that’s completely outdated. “Just try opening a bank account here for a fund these days. It’s a huge challenge. The AML and KYC rules are at least as strict here as anywhere else in Europe.”
Boutique over bulk
With his firm, Van Eldik focuses on third-party marketing, representing independent, often smaller fund managers with a distinct profile. Think of names like Gavekal, Pareto, and Aubrey. From the outset, he offered Gavekal Dragonomics’ macroeconomic research to help investors turn macro trends into concrete investment choices.
“We deliberately choose quality. Boutique managers with demonstrable alpha, a clear investment process, and a proven track record.”
He notes that competition has increased. More players are trying to secure a place in the distribution chain, often with a broad range of funds. “Our philosophy is: less is more. We believe fund selectors are really looking for distinctive strategies, not just another copy of a benchmark fund.”
But he also recognizes the playing field has changed. “The rise of ETFs is putting pressure on active management. Fund selectors must ask themselves: do you want to stand out by choosing the cheapest index? Or by adding value through innovative strategies and impactful investments?”
Eltif as a European growth engine
That last point brings the conversation to the Eltif, the relatively new European Long-Term Investment Fund. Van Eldik is a strong advocate for the instrument. “Many parties are now using the Eltif as a vehicle for private equity or private debt, with a focus on returns. But I see much more potential: impact investing, sustainable technology, European growth companies.”
He argues for better mobilization of European savings. “Everyone talks about the Savings and Investment Union, but meanwhile savings remain parked in bank accounts. Eltif can put that money to work, driving real economic development.”
The Netherlands, he says, doesn’t have to lag behind. “The regulations are already there. Eltif is a European structure. Why wait for Luxembourg? The Netherlands could easily launch its own Eltif vehicles. Why don’t Triodos and ASN use this to raise money from European retail investors where Dutch FGRs are not allowed to? Carbon Equity has at least taken the first step.”
A culture of accessibility
What makes Luxembourg unique, according to Van Eldik? “It’s a small country with a big reach. Everyone speaks multiple languages. In a single week, you meet people from 30 different countries. And despite this international setting, the culture is informal, open, and collaborative.”
That was also clear during the lunch at Vinissimo. “That someone like Jean-Marc Goy just drops by to talk about Ucits regulation, that sums up Luxembourg. In which other European country would that still happen?”
He glances outside. The rain has stopped and lunchtime is over. A group of young professionals leaves the restaurant, laptops under their arms. Some carry a bottle of wine. “This is Luxembourg: a place where the old and the new Europe meet. Where innovation and regulation go hand in hand. And where a Dutchman can still feel at home after forty years.”
This article is part of Investment Officer’s 2025 summer series, focusing on Dutch and Belgian investment professionals abroad. Previous editions have come from Frankfurt, London, New York, Munich, Zurich, Madrid, and Atlanta.