Publications

Publications


Global Spotlight:


Valuation Services for Asset Management: Enhancing your business value

The recent period of extreme market volatility and illiquidity has highlighted the continued importance of having reliable valuations. Among the responsibilities of the Management, Board members and services providers, this is one of the most challenging. By using our unparalleled valuation expertise, you’ll understand the value of your assets.

Valuation Services for Real Estate Structures: Making your Real Estate assets valuable

Our Real Estate Valuation Advisory line of service offers comprehensive valuation reviews of both third-party and management-prepared valuations. We can also help you reorganise and/or enhance your own internal valuation management functions with an emphasis on best practices and cost savings.

Tackling the talent gaps

Increasing talent shortages are holding back or even derailing growth plans within many financial services businesses. These talent constraints and their consequences are set to increase. Those businesses that are developing a well-informed and proactive approach to strategic workforce planning have an opportunity to gain a crucial competitive edge.


Asset Management CEOs remain positive about the next 12 months despite the economic challenges. They see growth in both existing and emerging markets and are seeking to foster talent in-house.


Our new GFD poster highlights some key trends in cross-border fund distribution during 2011. The 2012 edition provides details of the continuing growth in cross-border funds and their global distribution footprint. In addition to identifying the leading fund domiciles, the new "hot spot" target markets, the depth of distribution globally and the top 50 cross-border management groups, this year we have examined market concentration by analysing the market shares, (funds, AuM, registrations), of the cross-border industry held by the top 50 cross-border management companies.


The Real Estate Industry is currently facing a multitude of challenges and transformations while being in a period of uncertainty. The Luxembourg Real Estate & Infrastructure Team stands by your side, providing a one-stop-shop solution to help you face tomorrow's challenges.

European Institutional Investors - Poster

The European Institutional Investors poster provides a quick, yet comprehensive overview of the European institutional market including the size and structure of the market, the asset allocation breakdown, the top locations and the largest investors. The poster also highlights the country origins and destinations of European portfolio investments outside Europe.

One of the results of the financial crisis is that the regulatory environment is more challenging than ever before. Regulatory Watch and Analysis is all about bringing the information you need, when it is most useful, and accompanying you in valuing this information.

Current Outlook on AIFMD for Luxembourg Private Equity Structures

The Alternative Investment Fund Managers Directive ('the AIFMD' or 'the Directive') entered into force on 21 July 2011. Its aim is to provide a harmonised and comprehensive regulatory and supervisory framework within the EU as well as a single EU market for managers of Alternative Investment Funds (AIFs). The ultimate deadline for EU Member States to transpose the Directive into their national law is just 18 months away (22 July 2013).

Solvency II Impacts on asset managers and servicers

Unlike the current solvency regime for (re)insurance undertakings, quantitative and qualitative requirements are now closely linked with the asset side of the insurer's balance sheet. That's why asset managers are directly and indirectly involved in the new Solvency II Directive. Those asset managers that can develop Solvency II ready offerings will benefit from a significant competitive advantage.

Choosing an investment vehicle - European Real Estate Fund Regimes

This booklet seeks to compare more than 30 different types of fund vehicles in a summary form, by looking at a consistent set of key topics, and noting major pros and cons.

Wir können (fast) alles - und auch deutsch

Diese Broschüre wurde in deutscher Sprache verfasst, weil wir damit unsere Geschäftspartner ganz gezielt auf unsere deutschsprachige Beratungskompetenz hinweisen möchten. Wir denken, es macht Sinn, Ihnen zu zeigen, was wir alles können, wer was macht und wer für Sie als Ansprechpartner zur Verfügung steht. Und richtig, wir freuen uns, dass wir Ihnen in diesem Segment so viele Mitarbeiter mit unterschiedlichen Fachkompetenzen vorstellen können.


Luxembourg: where else? - Il luogo per l'investment management

Per molti operatori del mercato dell'asset management, la domanda da porsi al momento d’investire è: "dove è meglio collocare il business al fine di massimizzare i profitti nel rispetto della crescente richiesta di regolamentazione e trasparenza?"


Supporting the creation of value - Asset Management News

One of the main lessons of the financial crisis is that the creation of value is no longer only about hiring the best financial minds. For sure, this remains the most important way of doing so, but value today has a wider context. It is also about optimising costs, having sound infrastructure, risk management and a number of other issues.


Asset Management: Luxembourg, your location of choice

We are confident that the expertise of the fund community in Luxembourg, together with the business minded environment and the long standing tradition of being a safe fund centre will allow the Grand Duchy to weather the regulatory storm as it did, mostly, with the financial crisis. We are pleased to provide this summary of the Luxembourg business and regulatory environment for your information and stand ready to provide support whatever your needs may be.


Rethinking Distribution

The report anticipates a number of key drivers of change and resulting scenarios for the industry. Overall, the research found that drivers such as regulatory developments with a strong focus on consumer protection and regulation at the point of sale; the shift of global economic power toward SAAME (South America, Asia, Africa and the Middle East) countries; the ageing of the population; competition from substitute products; and greater use of social media are set to challenge the asset management industry to come up with new thinking to promote their products in a manner that is different from current traditional patterns.


Being distinctive: Exchange Traded Funds (ETFs)

This brochure provides an introduction to the world of Exchange Traded Funds. We have prepared this document to support the ongoing education of the market in relation to this very important segment of the asset management industry.


Global Compliance Services - A wealth of services to clear your way

More and more, businesses are operating in a regulatory environment with increasingly complex and risky areas. Lack of compliance with regulatory (e.g. accounting, tax, legal, social, requirements, ...) can expose you to significant risks; not only with the Luxembourg and foreign authorities, but also with current and potential stakeholders (e.g. shareholders, banks, ...).


Stay tuned - Reporting according to the Groß- und Millionenkreditverordnung (GroMiKV)

The "Groß- und Millionenkreditverordnung" ("GroMiKV") is a German regulation which transposes the CEBS guideline regarding the large exposure regime into national law in Germany. This regulation is relevant for German credit institutions which are obliged to report their large exposures to the supervisory authority in Germany. It is applicable as from 31 December 2010.

Luxembourg Fund Governance Survey 2010/2011

The fifth edition of our Luxembourg Fund Governance Survey, prepared jointly with the Funds Committee of the Institut Luxembourgeois des Administrateurs (ILA), coincides with a time of unprecedented focus on corporate governance regimes across Europe. In the wake of the financial meltdown, it was to be expected that regulators at both national and EU level would carry out in-depth investigations into the causes and challenges faced by existing governance models. In response, the local industry via the Association of the Luxembourg Fund Industry (ALFI) established their own Code of Conduct, and correspondingly we have devoted a full section of the survey to the take up of codes and guidelines within the Luxembourg industry.

Paving the way to good Governance

The investment management business continues to grow more complex each day and executing effective oversight has become progressively more difficult. The increasing diversity of products, the ever evolving regulatory structure and the greater political focus on governance overall means that the challenge to board members to keep on top of their multiplying responsibilities has never been greater.

UCITS V: The depositary’s role and managers’ remuneration

The European Commission is currently consulting on proposed changes to the role of UCITS depositaries and the remuneration of UCITS managers. The changes will seek to address perceived failings, better protect investors and align UCITS funds with the Alternative Investment Fund Managers Directive.

These changes have significant implications for UCITS managers, depositaries, third party administrators, investors, auditors, and regulators.

Emerging Trends in Real Estate® Europe 2011

Emerging Trends in Real Estate® Europe 2011 represents a consensus outlook for the future and reflects the views of more than 600 individuals who completed surveys and/or were interviewed as part of the research process for this report. Interviewees and survey participants represent a wide range of industry experts—investors, developers, property companies, lenders, brokers, and consultants. ULI and PwC researchers personally interviewed 312 individuals, and survey responses were received from 303 individuals.

The contribution of IMMFA funds to the Money Markets

A research report published jointly by the Institutional Money Market Funds Association (IMMFA) and PwC Luxembourg shows that triple-A rated funds have deepened the money markets, by virtue of the volume and proportion of assets held by the funds.

German Tax Reporting: Your Tax challenges, Our solutions

Despite various harmonisation initiatives in Europe, e.g. UCITs IV, tax reporting is still a very long way behind. Germany is a major distribution country for UCITs and nonUCITs funds and it also turns out to have one of the most complex and intricate tax reporting framework for funds. Germany is the only country requiring a third party to issue a statement on the accuracy of the tax reporting.


KID - Key Investor Information Document

Asset managers launching UCITS will have to start using the KID instead of the simplified prospectus as a necessary pre-contractual document for fund distribution within the European Union. The implementation is subject to a grandfathering clause until July 2012, but for new UCITS the KID is due starting July 2011.
Given these impacts and the tight timing the KID appears to be one of the most important challenges for the UCITS industry over the last decade.

This booklet seeks to compare more than 30 different types of fund vehicle in a summary form, by looking at a consistent set of key topics, and noting major pros and cons.

   * Valuation Process - Challenges for appropriate governance

This paper explores a number of the oversight/governance questions that have been raised for asset managers, and it discusses leading practices to address them. We focus on questions that are of particular interest to asset managers of alternative funds, traditional mutual funds, and real estate investments.

Ideal Advice

Within this report we examine the state of play of financial advice within Europe and provide a set of key recommendations which we believe are critical to enhance the overall quality of investment advice. In our view, now is the time for our industry to take bold and convincing steps and an active role in achieving a business model that is both sustainable and investor centric.


UCITS IV: Time for change

This document analyses the responses that were received in relation to the Key Information Document (KID). The findings demonstrate that the industry has not yet fully assessed the implications relating to the production of the KID and many requirements surrounding its production are deemed challenging.

Future Newcits regulation?

Who would have thought a year ago, following the credit crunch, that there would now be such a large number of UCITS hedge funds, known as Newcits, encompassing almost the full range of investment strategies? There are not only relatively simple longshort equity funds but also more complex macro, arbitrage and commodity vehicles.

This guide has been prepared by PricewaterhouseCoopers Luxembourg in order to provide general background information on the legal and taxation aspects of regulated and unregulated real estate vehicles domiciled in the Grand Duchy of Luxembourg as well as first guidance in the set-up phase of these structures. The guide starts with the legal and tax opportunities for structuring real estate vehicles in Luxembourg, followed by practical information on the selection of service providers and actions during the lifetime of the structures. Practically, real estate structures are brought to life by the combination of several types of vehicles achieving an overall competitive position with minimal tax leakage.

The traditional frontier between profit-seeking investment and "give-it-away" philanthropy is blurring as a Third Sphere is emerging. Increasingly, individuals and organisations are investing a part of their wealth in companies/projects with a direct, measurable, and sustainable social and/or environmental impact, while still seeking a certain return on such investments.

The total expense ratio represents a key indicator for investors. However, promoters should find the right balance between attracting investors and keeping the best investment managers. Performance fees may be the mean to reconcile both investors and investment manager's interests. Indeed more and more funds are charging performance fees.

This publication contains the laws and regulations regarding undertakings for collective investment concerning the law of 20 December 2002.

This poster gives a quick and comprehensive overview of the Grand-Ducal Regulation of February 8, 2008 transposing the Directive 2007/16/EC on eligible assets.

In this brochure, we are pleased to provide an illustrative annual report for investment funds prepared in accordance with generally accepted accounting principles in Luxembourg (the "Luxembourg GAAP"). This document also includes current information requirements for selected countries where funds may be publicly distributed.

The European securities industry is, more than ever, facing a major transformation driven by market needs for more transparency, control and cost reduction of front and back office services. This drive is reinforced by the expected profound changes to the industry triggered by Target 2 Securities (T2S). The Luxembourg financial centre – which is perceived as a key international securities back office platform – needs to consider these fundamental trends and define its model of the future whose aim should be to attract and retain the securities platforms of global financial institutions in Luxembourg.

The investment fund industry has made an important step forward with the adoption of the UCITS IV Directive on June 22, 2009. While many details still need to be worked out even at the legislative level, industry players should now start considering the likely implications on their business. UCITS IV will become effective on July 1, 2011, being the date by which all Member States must have implemented the Directive into national law.

The second edition of the brochure "Private Equity In Luxembourg" aims at providing practical high level information regarding the private equity vehicles in Luxembourg, as well as an overview on the areas that PwC Luxembourg may help to create value on private equity deals and transactions. It also describes this dynamic industry in Luxembourg, which has established itself as a leading alternative funds centre in private equity and property funds through the development of Luxembourg into a centre for private equity sector. The more recent developments in the financial markets pose new challenges to private equity houses and to all financial players. It appears though that the industry will find its way to adapt to the new reality.

This paper takes an investor-centric approach to examine the mutual fund value proposition and outlines recommendations for governments and the industry to promote sustainable solutions that will serve investors. The focus is on the long-term investment goals of European retail investors.

First came sub-prime, then banks started to collapse and the entire financial system seemed to go crazy, now Madoff reveals to the world how simple it is to ruin thousands of investors... Investment funds, whether private or retail, have by no means been spared by the consequences of these shortfalls. Could they have been avoided in any way through a truly sound corporate governance?

It is with this question in mind that PricewaterhouseCoopers Luxembourg has presented its 4th edition of the Mutual Fund Governance Survey, a survey initiated in July 2008, before the Lehman collapse and subsequent financial crisis.

The increasing complexity of the EU and Luxembourg IM regulatory frameworks, as well as the continued focus on tailoring products for different investor types present compliance challenges but also provide market players with concrete opportunities within the UCITS and non-UCITS space to meet client needs.

This poster gives a quick and comprehensive overview of the Grand-Ducal Regulation of February 8, 2008 transposing the Directive 2007/16/EC on eligible assets.

This first edition of the “Luxembourg Real Estate Vehicles” practical guide describes the Real Estate industry in Luxembourg and promotes its success factors. Its main objective is to provide general background information on the legal and tax aspects, and opportunities, of regulated and unregulated Real Estate vehicles in the Grand Duchy. Moreover, due to an increasing importance of listing to Real Estate players, this guide also outlines the attractiveness of the Luxembourg Stock Exchange for the listing of Real Estate funds.
 

As at June 30, 2007, alternative investment Funds represent roughly EUR 187 billion (USD 252 bn), or 9% of the total assets under management in Luxembourg.

In Luxembourg, the appetite for alternative investment strategies is growing.