Investment Officer Luxembourg

Unlike Luxembourg, financial supervisors in Belgium and the Netherlands see no need for a diligent review of fund valuation practices, spokespeople have told Investment Officer. In Ireland, meanwhile, the supervisor is preparing a “broader industry communication” on the valuation of funds that will be published in the coming months.

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Natural disasters can have a severe impact on the real estate market, yet investors appear unaware of this looming risk. A correction in real estate stocks seems to be lurking.

Portfolio manager Lucas Vuurmans of Amsterdam-based investment bank Van Lanschot Kempen discussed this with InvestmentOfficer.nl. For the U.S. office market, a correction is anticipated due to climate risks averaging more than 3 percent. In riskier areas, the decline in value could even reach 10 to 12 percent.

Under the guidance of the European accounting directive, Luxembourg is overhauling its accounting laws in a major way. The effort aims to modernize and align with current market practices, reflecting Luxembourg’s business profile. The changes also include additional requirements for SCSp partnership vehicles, commonly used for funds, and firms with over 500 million euros on their balance sheets. It’s a daring move toward increased transparency and compliance, showing Luxembourg’s determination to maintain its status as a leading financial center.

On December 22nd, 1972, investment funds in Luxembourg became subject to supervision for the first time. Initially, the rules provided investors with significant protection, but over time, they have only served to increase the fees they pay.

Delegation

Delegation is one area of the industry that has become so complex that it’s almost impossible to see the bigger picture. It’s a cornerstone that has facilitated the industry’s growth while also making it increasingly obscure.

Cork Gully, a restructuring firm based in London, has announced the opening of an office in Luxembourg. The new location aims to expand its services in advising and managing challenged and tail-end investment funds, working as either sub-advisors or replacement fund managers. The firm cited increased interest in its services.

Goldman Sachs Asset Management’s (GSAM) recent marketing of the Private Market Eltif demonstrates that the firm is keen to broaden the horizon for private investors. Giving the retail segment access to its 420 billion dollar alternatives-platform is not a mere experiment, but part of a “big, bold commitment,” according to Barry Fricke, GSAM’s Head of EMEA Alternatives Distribution Wealth Management. Goldman Sachs AM now wants to launch a new private market Eltif every year.