New York and London may be the hedge fund capitals, but Luxembourg holds its own in the hedge fund world and it also has big plans for its alternative investment sector.
The Association of the Luxembourg Fund Industry held its conference in New York City on Friday where it detailed its plans to implement an alternative investment fund managers (AIFM) directive by 2013.
Some of Luxembourg’s industry insiders sat as panelists in the conference, explaining that the AIFM directive aims at “setting-up robust risk and liquidity management systems and at enhancing transparency for investors.”
The directive will apply to European Union AIFM and non-European Union AIFM managing EU AIF, as well as non-EU AIFM marketing to non-EU AIF in the EU with assets under management under €500 million ($630 million) or €100 million ($125 million).
Marc Saluzzi, chairman of the Association of the Luxembourg Fund Industry hopes to see the country increase its current allocation in hedge funds and other alternative investments from 10% to 20%.
“It’s definitely important to us to increase the presence of hedge funds in Luxembourg,” Saluzzi said.
Saluzzi also said that the country lost $100 billion in hedge fund assets in 2011 as a result of the Euro Zone crisis, but still generated $5 billion in net sales for the industry during the same year.
Luxembourg is currently home to 760 hedge funds and fund of hedge funds, with nearly $200 billion in assets under management.
Read More: HFN