Hong Kong and Luxembourg have enjoyed long and successful co-operation in the field of funds and financial services, so it is perhaps something of a surprise that the Association of the Luxembourg Fund Industry (ALFI) has only recently opened its own representative office in town.
The move does not signal a change of focus or strategy. It is seen more simply as a sensible step to strengthen existing ties with Hong Kong's investment management community and to remain fully informed of emerging trends and possible undercurrents in an always evolving sector.
'Both centres are very internationally oriented,' says Anouk Agnes, director for communications and business development at ALFI. 'And the respective regulatory bodies know each other and exchange information on a regular basis, [but you must keep looking ahead].'
According to industry statistics up to the end of April, Luxembourg has a 26.5 per cent share of Europe's investment fund market. Overall net sales for the fund industry in the first quarter of this year reached Euro36.4 billion (HK356.6 billion), which was widely interpreted as an encouraging rebound from the comparative declines caused by last year's market depreciation.
Annual performance aside, Luxembourg's success is attributable in part to UCITS, or undertakings for collective investment in transferable securities. In effect, these are collective investment schemes which comply with rules laid down in European directives.
'They benefit from a 'passport' which enables them to be sold cross-border into any EU member state,' Agnes says. 'UCITS are also retail products with a very high level of investor protection.'
