fund distribution

BlackRock and Euroclear on Tuesday announced a partnership aimed at expanding the distribution of Blackrock’s private market funds through Euroclear’s FundsPlace platform. This collaboration focuses on making private markets more accessible to a wider range of investors by utilising Euroclear’s fund distribution network.

Luxembourg management companies are drawing attention to the increasing reporting burden that often lands on their shoulders when European level regulation, such as the cross-border fund distribution directive, is passed. These requirements, they argue, often simply serve to placate national authorities over their lost jurisdiction. “It’s creating an additional burden on the investment fund manager,” said Chloé Piquet, a senior manager in regulatory services at Deloitte.

This IO Talks Luxembourg podcast episode with Corrine Lamesch, chair of the Association of the Luxembourg Fund Industry (ALFI), sheds light on the growing popularity of alternative investments in Luxembourg, addresses the complexity of ESG and sustainable finance regulation, and hears about the role of the grand duchy as a global distribution centre for financial products.

Fundrock, one of Europe’s largest third-party management companies with a significant presence in Luxembourg, on Monday said it has been appointed by Royal London Asset Management Funds plc, also known as RLAM, to provide management and distribution services for its Irish fund range.

Faced with the recent strong growth of demand for sustainable investing products, the question can be asked: are fund distributors able to keep up with asset managers in equipping themselves to deliver what such investors are seeking? One participant at the recent ALFI Global Distribution Conference expressed some doubt.

Despite much talk about the cost and efficiency benefits of digitalisation and clients moving very quickly to adopt it, some parts of the fund sector still rely on manual processing. Some in the sector are calling for regulators to play an increased role in setting standards.

A panel entitled “Trends in fund distribution as investors have become more digital than ever - Is the fund industry ready?” discussed the current situation as part of ALFI’s recent Digi Pulse Amsterdam virtual event.

The number of cross-border funds registered globally recorded its slowest growth since 2009 last year. At the same time, however, Luxembourg strengthened its position as leading global fund hub according to the PwC Luxembourg Global Fund Distribution survey.