“It is not enough to know – one must also apply. It is not enough to want – one must also do” (Goethe). Fund regulations, family offices, and foreign fund companies, factors for location quality, and roadshow dates in London and Frankfurt am Main – Markus Hill spoke for FONDSBOUTIQUEN.DE with David Gamper, Managing Director, LAFV Liechtenstein Investment Fund Association about current developments in Liechtenstein as a fund location.
Hill: How is the Liechtenstein fund industry doing?
Gamper: In 2022, the Liechtenstein fund industry showed an extremely successful performance overall despite a challenging environment. It achieved a remarkable result with a record number of 113 new single or partial fund launches. This increasing number of fund start-ups is of particular importance for a location specializing in private label funds and shows that more and more fund initiators are convinced of Liechtenstein as a fund domicile.Net inflows also reached a new high of 5.8 billion and were able to largely offset the losses on the stock markets, causing assets under management to fall only slightly from 70.4 billion to 69.3 billion. Which represents a decline of only 1.6%, while the European fund market recorded an average loss of 12.8%.
In the first half of 2023, new fund startups were partially more restrained than last year. However, the good order among the members suggests that this situation could change rapidly.
Hill: What else has happened since our last interview about a year ago?
Gamper: It is gratifying that not only the funds but also the number of fund companies operating in Liechtenstein are continuously increasing. The fact that two new companies have joined in the last 12 months and two more are in the process of being licensed shows that interest in Liechtenstein as a fund domicile continues to grow. Particularly noteworthy is the admission of Luxembourg-based Axxion S.A. as the first foreign member of the association. It is a significant step indicating that foreign fund companies have recognized the advantages of Liechtenstein as a location for their funds. The possibility of passporting enables them to launch their funds in Liechtenstein and distribute them from Liechtenstein to other markets in the European Economic Area. The membership of additional foreign service providers in the Liechtenstein Investment Fund Association (LAFV) also underscores the growing interest in Liechtenstein as a fund domicile. Overall, these developments show a positive signal for the fund industry in Liechtenstein.
Hill: Do you see any particular trends in the Liechtenstein fund industry?
Gamper: It is particularly noticeable that family offices are increasingly setting up funds in Liechtenstein. It could be related to the fact that Liechtenstein is a member of the European Economic Area but, like Norway and Iceland, is not part of the EU and uses the Swiss franc as its currency. Another factor could be the significantly lower inflation compared to the EU area. In addition, the political and economic stability along with the fact that Liechtenstein has no national debts therefore, are major contributing factors. In conclusion, Liechtenstein is exceptionally appealing as one of about a dozen countries globally with AAA credit rating. We have also noticed that in addition to our core markets of Germany and Switzerland, inquiries from non-German-speaking Europe are increasing. It shows that internationalization is progressing, which is visible from the fact that Liechtenstein funds are currently distributed in 25 European countries. Liechtenstein has thus developed into a signaficant cross-border location for private-label funds.
Hill: What asset classes are you focusing on?
Gamper: Due to our specialization in private label funds, the fund initiators determine in which asset classes the funds are launched. In this area, the spectrum is very broad and includes private equity, real estate funds, hedge funds as well as niche products such as crypto assets, mezzanine capital, cat bonds, and many more. One notable development is the (re)rise in popularity of UCITS funds. Two years ago, their share was just over 20%, while in 2023 it has risen to about 37%. These funds have their focus mainly on equities. Fund initiators repeatedly express that the management companies from Liechtenstein, which are referred to as service KVGs in Germany, have extensive expertise, especially in niche products, and show great interest in implementing these strategies in funds. Expertise and interest are not equally available in all countries.
Hill: There was another roadshow in Germany this year to present the fund location. How was the response and what is planned shortly?
Gamper: So far this year, we have only been in Munich, but we were pleased with the gratifyingly high number of participants and the excellent feedback. We were able to report numerous positive developments, including the impressive figures from previous years and Liechtenstein’s outstanding performance in the Moneyval Assessment about combating money laundering and terrorist financing, as well as in excecution of the Automatic Exchange of Information (AEOI). We are planning two more events in the fall: October 12th in London and November 8th in Frankfurt. Events in Munich and Hamburg are on the agenda for next spring. Tentative dates for these events are either March 12 and 13 or April 16 and 17, 2024.
Hill: Thank you very much for talking to us.
David Gamper is the Managing Director of the LAFV Liechtenstein Investment Fund Association, the official representative body of the Liechtenstein fund industry. The LAFV’s mission is to promote the development of Liechtenstein as a fund center and thereby further improve its attractiveness for fund providers and investors.
Link to website: LAFV Liechtenstein Investment Fund Association
EVENT INFORMATION
- PRESENTATION OF THE LIECHTENSTEIN INVESTMENT FUND ASSOCIATION IN LONDON
Did you know that the Liechtenstein fund domicile ranks seventh in Europe in terms of the number of funds? Did you know that the Liechtenstein fund domicile specializes in white-label funds?
Did you know that Liechtenstein funds are distributed in 25 European countries?
Learn more about the Liechtenstein fund domicile and its attractive framework conditions, on 12 October 2023 at 4:30 pm at Dartmouth House, London. This event is suitable for finance companies that want to launch investment funds, family offices, wealth managers, and investors.
More information and registration: LONDON-ROADSHOW-LAFV_12/10/2023
Sponsors:
Accuro Group – Ahead Wealth Solutions – Axxion S.A. – Bank Frick – BDO (Liechtenstein) AG- GASSER PARTNER Attorneys at Law – LGT Private Banking – VP Fund Solutions – XOLARIS Group
(Quote & Illustration: LAFV)
2. LAFV LIECHTENSTEIN INVESTMENT FUND ASSOCIATION & FRANKFURT FINANCIAL CENTER (PRESENTATION & PANEL DISCUSSION)
On November 8, 2023, the event “Financial Centre Frankfurt am Main Meets Financial Centre Liechtenstein” (FUND LOCATION) will happen in Frankfurt. The topics:
– Family Offices: Fund Boutiques & Manager Selection – Reiner Konrad, CESFi, Senior Advisor Asset Management, FOCAM AG
– Liechtenstein, the location for your private label funds – David Gamper, Managing Director LAFV Liechtenstein Investment Fund Association- – Panel discussion:
Dr. Reto Degen, Member of the Executive Board FMA – Financial Market Authority Liechtenstein
Ralph Früh, CEO Früh & Partner Vermögensverwaltung AG
Alex Boss, President LAFV Liechtenstein Investment Fund Association, CEO Ahead Wealth Solutions
Moderation: Markus Hill, Financial Centre Frankfurt am Main
As guest of honor, we expect the Liechtenstein Ambassador in Berlin I. E. Isabel Frommelt-Gottschald.
Many experts and managing directors of the Liechtenstein fund industry will also be on site. For example Alex Boss, Mathias Eggenberger, CFA, Bjoern Kogler, Thomas Marte, Christina Delia Preiner, Wolfdieter Schnee, CAIA, Bruno Schranz, Claudio Tettamanti, Dr. Günter Unterleitner. For more information, please visit www.lafv.li soon.
INFORMATION ON THE EVENT IN FRANKFURT (target group, orientation, registration, etc.): info@markus-hill.com
SPONSORS (selection): Ahead Wealth Solutions Axxion S.A. CAIAC Fund Management GASSER PARTNER Attorneys at Law Grant Thornton Switzerland/Liechtenstein LGT Private Banking Liechtensteinische Landesbank AG PATRONAS Financial Systems VP Fund Solutions
Fund location Liechtenstein & fund launch:
“What opportunities does the Liechtenstein fund center offer German fund founders?
– EU passport through membership in the EEA
– Max. Admission period of 10 working days for UCITS funds (by law)
– Alternative Investment Funds (AIF) only have to be notified to the supervisory authority
– Very competitive and calculable costs due to all-in fees
– Absolute tax transparency and no taxation of funds in Liechtenstein
– High investor protection
– AAA credit rating of the country, no sovereign debt
– Know-how and many years of experience in the field of private-label funds
– A broad range of possible investment instruments in AIFs.”
(Quote – LAFV Liechtenstein Investment Fund Association – David Gamper – www.lafv.li)
SUPPLEMENTARY INFORMATION “Fund Boutiques & Private Label Funds”
Future events (Markus Hill, info to follow): “Family Offices & Asset Allocation” (Munich, 17.10.2023), “Foundations, Networking & LinkedIn” (Frankfurt, 16.10.2023), “Private Markets & Alternative Investments” (Frankfurt, 8.11.2023), Mountain Talks (Switzerland, 12.01.2024).
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Foto: Pixabay
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