This article was published for the Delano Finance newsletter, the weekly source for financial news in Luxembourg. Subscribe using this link.
The Association of the Luxembourg Fund Industry kicks off its US roadshow this week. Delano caught up with Alfi director Britta Borneff and Elvinger partner Nicolas Fermaud to find out why this year’s roadshow will be different from previous visits across the Atlantic.
This year’s roadshow to the United States starts on 24 May with stops in New York and Boston. Alfi is also organising a friendly golf tournament for attendees in New Jersey, a new addition to this year’s format.
“It’s the first time that we organise a golf tournament in the US. The aim is to get a few people together, network and strengthen team spirit,” said Britta Borneff, Alfi’s new director of events, communications and business development.
Borneff, who has more than 27 years of experience in the funds industry and has attended the US roadshow on numerous occasions, said discussions are expected to cover a range of topics, including AIFMD review, sustainable finance and cross-border distribution.
The US is one of Luxembourg’s most important markets. One in five euros currently invested in a Luxembourg fund originates from a US sponsor, according to data from Alfi. “For us, the US is a key market. US players, big and small, have built up their presence in Luxembourg over the past few years. It’s important for us to be present there at least once a year, to connect and exchange views with the local community,” Borneff said.
What’s new on the agenda this year?
The US roadshow is a regular fixture in Alfi’s calendar but this year’s visit promises to be different in three ways, according to Nicolas Fermaud, a partner at Elvinger New York and chairperson of the New York leg of the roadshow.
Fermaud said recent developments relating to anti-money laundering (AML), and environmental, social and governance (ESG) standards in Europe, while not top of the agenda in the US, have significant implications for market participants operating in Europe. He said ESG had become a “divisive” issue in the US and addressing the “disconnect” between perspectives in Europe and the US was important.
Having an opportunity to hear what’s on the regulator’s mind and how they plan to enforce regulation--those things that keep legal and compliance up at night--I think that’s invaluable.
Secondly, growing business appetite for private assets in the two markets presented an opportunity to build further momentum, according to Fermaud. “The democratisation of private funds among retail investors is picking up steam and we are witnessing a convergence of trends in both Europe and the US,” he said.
Thirdly, and perhaps more importantly, Fermaud said this year’s US roadshow is the first to feature a speaker from Luxembourg’s financial regulator. Marco Zwick, director at the Commission de Surveillance du Secteur Financier, is expected to speak to attendees in New York. “Having an opportunity to hear what’s on the regulator’s mind and how they plan to enforce regulation--those things that keep legal and compliance up at night--I think that’s invaluable. So, if there is really only one reason to attend the Alfi roadshow in the US this year, it’s definitely the participation of the CSSF,” Fermaud said.
This article was published for the Delano Finance newsletter, the weekly source for financial news in Luxembourg. Subscribe using this link.