EY Luxembourg has announced the publication of the 2021 edition of its "Investment Funds in Luxembourg – a technical guide".
The 600-page guide serves as a reference for fund managers, not only in Luxembourg but also worldwide. Updated annually for more than 25 years, it covers the recent legislative and regulatory changes in the investment fund sector.
Over the past year asset managers have been forced to rapidly navigate and adapt to disruptive market conditions as a result of the COVID-19 pandemic. Where in 2020 the immediate focus was on ensuring employee welfare and maintaining business operations in a remote work setting, the priority in 2021 has shifted.
On the one hand, the crisis has sparked among business leaders a renewed focus on innovation and product diversification in order to remain competitive and achieve post-pandemic growth. On the other hand, embarking on innovation-led initiatives while simultaneously managing short-term issues has required a smart balance between prudence and operational investment.
“2020/21 was a challenging period for asset managers, yet even before the turn of the decade, the industry started its transformation. Over several years we have witnessed a growing focus on non-profit outcomes, experienced pressure from investors to reduce costs and have accelerated investments in digital technologies", commented Christophe Wintgens, Wealth and Asset Management Leader. "The industry has shown impressive adaptability and leaders must use their learnings to strategically plan for the next five years and beyond”.
According to EY Luxembourg, at the top of the agenda for the foreseeable future will be the ability to manage costs while still delivering value to investors. As such, financial institutions are re-evaluating core versus non-core business activities and determining which of these can be outsourced, within the limits imposed by substance requirements.
This year's guide specifically address the issues of undue costs, digitalisation, growth and product diversification, climate change and the changing regulatory environment.
To download a digital version of the Investment Funds in Luxembourg guide or order a copy, visit www.ey.com/en_lu/investment-funds.