Asset Servicing

Fewer new reserved alternative investment funds are being registered in Luxembourg this year as investment managers are more cautious and VC fundraising has declined. Investor appetite appears reduced but has not disappeared. Dry powder is said to remain available among institutional investors in the alternatives market. 

In Europe’s two largest ETF hubs, Luxembourg and Ireland, different rules govern the naming of Exchange Traded Funds (ETFs). While European rules for ETF naming conventions are determined by Paris-based authority ESMA, the implementation by national supervisors CSSF in Luxembourg and CBI in Ireland diverges, presenting both opportunities and risks for ETF providers.

FundRock Management Company, a unit of Apex Group, has been appointed by Partners Capital to provide ManCo services for their flagship fund.  FundRock will provide ManCo services for Partners Capital’s flagship fund, the Master Portfolio C fund, following their support during the fund’s re-domiciliation to Luxembourg last October.

Apex Group said it has appointed Samir Pandiri to the newly created role of Group President and Member of the Executive Committee, to support and drive the business’ sustained growth.

Michael Reinhard has decided to step down as chief executive officer at Frankfurt-headquartered Universal Investment Group, a leading management company in Luxembourg. Until a successor is appointed he will be replaced by David Blumer, who joined UI as non-executive chair last year.

Market consolidation, pressure on cost and the weight of regulation have reduced the total number of Management Companies in Luxembourg by four last year. The latest edition of PwC’s annual Manco Observatory nevertheless sees this industry as “very dynamic”, with 11 new Manco’s having been set up in the last year.

Fund management companies in Luxembourg registered some 22 new reserved alternative investment funds (Raifs) in April 2023, according to publicly-released data updated on 15 May. This development brings the total for this year so far to 128. Considering only the first four months of the year, the total number was down 20 per cent from last year during the same period.

Financial services provider Apex Group on Tuesday said it has closed its acquisition of the data and analytics division of troubled London-based asset services provider MJ Hudson Plc. The deal includes part of MJ Hudson’s business in Luxembourg. The acquisition of the firm’s regulated business units remains remains to be closed as it is still subject to regulatory approval, Apex said. 

European Fund Administration, the Luxembourg-based asset services unit of Frankfurt-headquartered management company Universal Investment, on Monday said it is rebranding to “efa”, as part of its integration journey into Universal Investment.

Since its inception in 1996, European Fund Administration has expanded its services and client base in Europe and elsewhere in the world. Its original acronym, designed as a symbol for quality, trust, and reliability in the fund industry, will cease to be an acronym and become the name of the company, the firm said.

Brown Brothers Harriman (Luxembourg) S.C.A. said on Thursday it has been selected by Schroders Capital as central administrator and depositary bank for the launch of its first European Long-Term Investment Fund, or Eltif.