Maryna Chernenko, Managing Director of UFG Capital;
Credit: UFG Capital
Chronicle.lu had the opportunity to speak with Maryna Chernenko, Managing Director of UFG Capital, on her recent visit to Luxembourg, about the Cyprus-based asset management company's presence in the Grand Duchy, as well as the evolution of and trends (such as green finance) in the sector.
UFG Capital currently manages eight funds, including two registered alternative investment funds in Cyprus and Luxembourg, respectively.
Chronicle.lu: When and why did UFG Capital decide to expand to the Luxembourgish market?
Maryna Chernenko: With the implementation of the Alternative Investment Fund Managers Directive (AIFMD) in 2013, UFG Capital Investment Management Ltd (UFG Capital), like many other AIFMs, gained the passporting opportunity, which significantly streamlined the expansion of our operations into other European markets. UFG Capital has always been committed to providing its clients with diverse investment opportunities. Several strategic considerations drove the decision to expand into the Luxembourg market. Luxembourg has established itself as a prominent financial centre within the EU, offering a robust regulatory framework, an experienced workforce and a well-developed infrastructure conducive to the management and distribution of AIFs. Luxembourg's reputation for stability, investor protection and access to a vast network of European and global investors made it an attractive destination for our expansion.
Chronicle.lu: Do you personally visit Luxembourg often? Tell us about what brought you here this time.
Maryna Chernenko: I frequently visit Luxembourg and this time, I attended the regular ALFI Global Distribution Conference as part of my professional engagement within the fund management community and an ongoing commitment to staying informed about industry trends. It's a prominent event for financial industry experts that provides a valuable platform for discussions and networking opportunities related to distribution strategies, fund marketing and regulatory developments.
Additionally, I had the privilege to join a charity golf tournament organised exclusively for ALFI conference attendees. It underscores the importance of corporate social responsibility and giving back to the community, values we hold in high regard.
Chronicle.lu: What are some of the recent trends you have seen among investors in Luxembourg, particularly regarding alternative assets? In what way (if any) does this differ from investor behaviour in Cyprus or elsewhere?
Maryna Chernenko: A notable recent trend is the surging interest in green finance in Luxembourg. Investors here, like their global counterparts, increasingly prioritise environmental, social and governance (ESG) considerations - sustainability and responsible investing. They seek opportunities that not only deliver financial returns but also align with their values, driving demand for ESG-integrated products and sustainable finance solutions. Luxembourg, a leading European fund domicile, hosts a growing number of specialised AIFs focusing on ESG and green investments, aligning with its commitment to fostering a sustainable finance ecosystem and supporting the EU's sustainability agenda.
Chronicle.lu: How have you seen the regulatory landscape evolve in Luxembourg since UFG Capital first entered the market here? And what impact has this had on the asset management industry?
Maryna Chernenko: Luxembourg's regulatory landscape has evolved significantly. Initially recognised for investor protection, recent changes have further solidified its position as a global financial centre. The country actively promotes sustainable finance and ESG considerations, fostering ESG-integrated investment products in line with global trends.
Support for fintech and digital assets also showcases Luxembourg's commitment to innovation. Regulatory adjustments have adapted to accommodate fintech startups and digital asset managers, fostering innovation while maintaining regulatory integrity. While heightened regulatory requirements necessitate increased compliance, they solidify Luxembourg's reputation as a trusted financial hub. Passporting of investment products within the EU extends market reach, making it an appealing base for broader distribution.
Chronicle.lu: Does UFG Capital plan to manage additional investment funds in Luxembourg (or elsewhere) in the near future?
Maryna Chernenko: At UFG Capital, we follow a client-centric approach, with our expansion driven by both investor demand and our commitment to exceptional fund management. Our continuous dialogue with investors helps us understand their objectives and market trends. This enables us to create and manage investment funds that meet their expectations and respond to evolving market dynamics.
While Cyprus remains our primary focus due to its strategic importance, we remain open to opportunities in other jurisdictions that complement our strategies. Our expansion is always guided by thorough due diligence and compliance with regulatory requirements, ensuring top-notch investor protection and regulatory adherence.
