Duke 02 by 360Crossmedia 360Crossmedia

Duke

Business & lifestyle Interview with

Camille Thommes, Director General ALFI

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CONTENTS

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SUCCESS

François Valentiny an elegy on departure (and return)

GRAND DUKE

The Grand-Ducal Family: give honour where honour is due 12

AMBASSADOR

Interview with H.E. Mr. Zeng Xianqi, Ambassador of China in Luxembourg 14

TRENDS

360Crossmedia in brief

Investing in you, Europe and beyond

Three questions for Jean-Marc Goy

Interview with Jean-Noël Lequeue, Chairman of ALCO

FOCUS

REGULATION

COMPLIANCE FUNDS

Duke in a nutshell We are proud to publish the second edition of Duke magazine, which has been created to promote the Grand-Duchy of Luxembourg abroad. The magazine presents a selection of fast-growing, innovative and dynamic Luxembourg-based companies, as well as other articles that for example highlight interesting aspects of the country and intriguing locations. We hope that after reading the magazine, you will feel inspired to explore opportunities in this business hub at the heart of Europe. Please contact us if you’d like to be introduced to the country’s business leaders.

Fund industry looks to the AIFMD and beyond: Interview with Camille Thommes 24 Antonio Thomas: The emergence of the multijurisdictional, multi-disciplinary Independent Fund Governance service provider 26 Schroders: why Luxembourg? 28 Interview with Jean-Philippe Cerutti, a Partner at MEBS 30 Frédéric Perard: The future in action 32 Christophe Cornet: UBS Luxembourg and the “one-stop shop” approach 36

BANKING

Luc Verbeken: “Bankwide” vision

From SGGland with Love

Arendt & Medernach: Regulation and strategy: three trends for 2014

Jean-Claude Biver: The tourbillon Maserati Ghibli, a new era for the Trident brand

44 50

Analysis and trends of the real estate market in Luxembourg Donald Trump: Interview

52 54

The cream of the crop

Ceos’ favourite addresses

Networking in Luxembourg

FINANCE LEGAL

LUXURY

REAL ESTATE

GASTRONOMY GUIDE

Enjoy Duke’s second edition! The editorial team

SOCIAL CLUBS

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Editor in Chief: Jérôme Bloch (jbloch@360crossmedia.com) – Conception & coordination: 360Crossmedia – Production: Jules Kums – Sales: care@360crossmedia – Artistic Director: Franck Widling – Cover Photo: 360Crossmedia – Printed in Luxembourg/Print run: 5000 copies www.duke.lu – Phone: (+352) 35 68 77 – contact@360crossmedia.com

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SUCCESS

François

Valentiny

an eulogy on departure (and return) www.myofficialstory.com/francoisvalentiny www.hvp.lu

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SUCCESS

>> “The most courageous buildings that Luxembourg has allowed me to build have been in other countries.” François Valentiny

Valentiny’s offices are in Remerschen, a stone’s throw from Schengen, and a few metres from the house of his birth. Highly symbolic for a man who is continually leaving and returning, full of new ideas.

A function When he thinks back to his student days in Vienna, François Valentiny remembers being very sensitive, like a dry, empty desert. He thoroughly absorbed Austrian culture and its architectural heritage. His career began with a number of projects in Luxembourg, but he always kept a foot in Austria, and then placed another one in Berlin. For fifteen years, he moved between this triangle. Then he had a family and lost some of his flexibility, but the growth of his business gave him the freedom to work everywhere, on some very stimulating projects. In his eyes, an architect is not independent of society. He must above all deal with a client, who sets the budget and the requirements: you need to find a solution for getting from A to B while keeping to the deadlines. However, beyond these essential imperatives, the architect can begin to ‘stir things up’ by imagining detours and options to transform a brief into a personal event. “That’s when it starts to get interesting!” A starting point His offices are in Remerschen, next to his house. He was also born in the village, so it’s his absolute starting point. He loves his country, which he

compares to the City States of Ancient Greece, where society worked well and everyone knew each other. He lives here, surrounded by many friends, but his real life is elsewhere. He is always leaving, and always coming back. He loves this way of living, and says that if he were not able to leave, he would feel suffocated. He needs the friction and excitement of other places. A style His designs include the Luxembourg pavilion for the Shanghai Universal Expo, and the new KPMG offices in Kirchberg. A unique style. He is not able to work in the city, as it lacks calm; he prefers to design alone, concentrated, even at the weekends. Isolation helps him to be closer to the project and the culture of the place, to be closer to people and avoid mixed influences. If he had one criticism of his country, it would be that while it has a lot of courage beyond its borders, it has a tendency to clip the wings of initiatives launched at home. “With all its assets, if Luxembourg had the same courage at home, it would be world leader in many sectors!” Perspective Luxembourg is very much appreciated all over the world. Larger countries love small countries like an older

brother loves his younger brother. The fact that we have managed to survive, and that we have renowned politicians among our illustrious citizens, and have played such a role in European construction, is a great asset. A small country does not do any harm, it is not aggressive. The Chinese remember that in 1910, all the European forces were present in Shanghai, except for Luxembourg! The New World Whilst he has always had close contacts with China, François Valentiny is currently working on a most unusual project in Brazil. It all began with the Mozarteum, a concert hall in Salzburg which he renovated in 2005. He made contacts during the music festivals, in particular with a Brazilian Countess. He visited her in Brazil a few years later, and the idea of a festival in Bahia was formed over dinner. Starting with pencil drawings, and after many telephone calls, they located a canyon where an open-air auditorium will be built out of wood. It’s bound to be a success, as there are only two concert venues within a 1,000 km radius. The CEO of Occitane en Provence, a friend of the Countess, is funding the concrete part of the construction. Here’s to the next festival!

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GRAND DUKE

The Grand-Ducal Family: give honour where honour is due www.myofficialstory.com/famillegrandducale#

Duke is exceptionally changing its structure, to present the GrandDucal couple and Prince Guillaume. The Hereditary Grand Duke Prince Guillaume has had the “classical” education of the future sovereign, studying politics, undergoing military training at the Royal Military Academy in Sandhurst, and gaining business experience, in particular in Finance and Industry. Officially appointed the Hereditary Grand Duke in December 2000, a few weeks after his father came to power, he has travelled the world as Honorary President of the Board of Economic Development, since rechristened “Luxembourg for Business”. A lover of sport and music, he embodies the discreet charm of a country that is open to the world and capable of continually reinventing itself to stay competitive. The image of Luxembourg: the dilemma Prince Guillaume at present embodies his country’s historical way of

communicating, with the emphasis on discretion. He is not often seen in the media, and his Google listing is very sparse. Undoubtedly there is something of the “Monaco” syndrome in this attitude, the fear of seeing the private lives of the Grand-Ducal family become a subject for gossip in the less respectable media. At the same time, discussions continue over the best way to promote the Luxembourg “brand” worldwide, in order to attract business and investment. Many people ask whether the Grand-Ducal family’s image could help increase the country’s influence. The Hereditary Grand Duke is a major asset for the country, as he is capable of adding a touch of “glamour” to the Grand Duchy’s image, to help it reach its full potential at at time when communication and transparency are the key words.

The Grand-Ducal couple Henri, Grand Duke of Luxembourg and Grand-Duchess Maria Teresa met at university in Switzerland, where they both studied Political Science. Born in Cuba to a family of Spanish origin, Maria Teresa de Mestre emigrated with her family to New York at three years of age. She later lived in Spain, and then Geneva. She is a philanthropist who devotes a great deal of energy to the actions of her Foundation, always with great discretion. Her charitable work takes her all over the world, hand in hand with UNICEF, UNESCO, the Red Cross and the Anti-Cancer Foundation, among others. She became engaged to the Grand Duke three weeks after they graduated from university, and they were married on 14 February 1981, St Valentine’s Day. Prince Guillaume was born on 11 November of the same year. He has three brothers – Félix, Louis and Sébastien and one sister, Alexandra.

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AMBASSADOR Interview with H.E. Mr. Zeng Xianqi, Ambassador of China in Luxembourg www.myofficialstory.com/zengxianqi

After completing several missions in Africa, the Ambassador is personally delighted to have been posted to Luxembourg.

“China is a land of ancient traditions that are still very much alive today.” Zeng Xianqi

Your Excellency, could you tell us about bilateral relations between China and Luxembourg? This country lives up to the slogan of the Luxembourg pavilion at the Shanghai World Expo in 2010: small and beautiful. Many Chinese people know Luxembourg for its steel industry and finance sectors. Friendly exchanges between China and Luxembourg date back a very long way and our countries cooperate in many sectors, notably finance and steel. Furthermore, the first foreign branch opened by the Bank of China was in the Grand Duchy, and more are set to follow very soon. In terms of the volume of bilateral trade, transactions amounted to 1.9 billion dollars last year and there are still many more potential opportunities in China. The Chinese authorities also place great importance on the quality of the economy and on improving the population’s well-being, as well as on developing technology to boost efficiency in relation to energy and the environment. China is a land of ancient traditions that are still very much alive today. The

country has launched an initiative to create a prosperous and harmonious world, inspired by the philosophy of Confucius, who believed that difference could coexist in peace and harmony. We apply this both within China and internationally. What are your views on student exchanges between the two countries and on the learning of Chinese in Luxembourg? Since Grand Duke Henri’s visit to China in 2006, many agreements have been signed, in particular relating to exchanges between our universities. Every year, Chinese universities welcome students from all over the world, while the University of Luxembourg receives around fifty young people from China. With regard to the uptake of Chinese language courses among young people in Luxembourg, this phenomenon is increasing. A Chinese language and cultural centre opened in Luxembourg last year, with strong support from the Luxembourg government. The centre is considering the introduction of a “Confucius”

course. The project is supported by the Chinese government which is supplying more teaching resources, such as textbooks. The Chinese government therefore plans to provide even more support in the near future. Where you advise us to visit if we were planning a two-week trip to China? My country is very big so I’ll simply give you my opinion. If culture and history are your main interests, I would recommend the historic cities of Beijing, Luoyang, Xi’an and Nanjing. If you would like to visit some modern cities, I would suggest China’s coastal region and Shanghai, Zhejiang, Jiangsu, Fujin and Guangdong. To explore inland areas, you should travel to the western region of China (Gansu, Ningxia and Qinghai). I also recommend that you visit the region of Tibet, a superb place. But I can assure you that two weeks is not enough, you need to allow at least two months! From north to south, it takes four or five hours to fly across the country.

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TRENDS

“Faced with the crisis, innovation and speed of execution are the best defences.”

360Crossmedia in brief www.www.myofficialstory.com/360Crossmedia www.360Crossmedia.com

Jérôme Bloch

Its name features on around sixty magazines, thousands of websites and comes up in industries as varied as Investment Funds, ICT, the medical world or arts and crafts. Interview with its CEO. What exactly is 360Crossmedia? We have developed a communication system that is one of its kind, a concept that you could compare with the LEGO® system: our customers respect a few simple rules and in return obtain articles, magazines, videos, professional-quality photos or a strong web presence within very tight deadlines and at an unbeatable

price. We can provide an article for just € 375 while a 20-page magazine costs EUR 0. Some customers even make a profit. A complete magazine can be delivered within 24 hours. So how does 360Crossmedia work? We have developed an ecosystem of content, talent and magazines, all compatible with each other. All our

designers have access to all the mock-ups and all the articles except those defined as ‘private’ by our customers, of course. For each project, our users define who does what and by when. They can call on colleagues, friends or professionals. If the team is properly mobilised, things can move ahead at breakneck speed. There’s no need to go after all the parties involved for weeks. Once the content

is created, diffusion is a breeze, between Andy, MyOfficialStory, the press, internet and our customers’ magazines we are spoilt for choice and the results are very easy to measure. What can 360Crossmedia do for me? An article, a magazine, a website, a webTV … Over the past 24 months, we have invested heavily in technology. Our latest innovation, “Social Typhoon”, makes it possible to put together 1, 100 or 1000 interviews in 5 minutes. We have also developed a computer engine that searches for

useful content in milliseconds. Faced with the crisis, innovation and speed of execution are the best defences. This solution can be rolled out in companies but also for individuals, schools, public places and hospitals, in fact anywhere where people have plenty of time to kill and where content creation may have therapeutic properties. 360Crossmedia in figures? The company was founded in 2000 and has already published 77 magazines in five languages. 80% of our turnover is still generated in

Luxembourg, but the increasing automation of our system allows us to create a solid customer base in Switzerland, France, England and even the United States. Ultimately, we want to become the eBay of content and aim to do so by purchasing a lot of internet advertising and pursuing an aggressive investment policy.

VIDEO

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FOCUS

Investing in you, Europe and beyond

ÂŠ 360CROSSMEDIA

www.myofficialstory.com/bei www.eib.org

The EIB is not your typical investment bank. Based in Luxembourg and employing over 2,000 people, its support makes a difference in many ways, be they social, environmental or innovative, and has helped improve lives in over 60 countries across the globe since it first opened for business in 1958.

Countercyclical activity The on-going economic crisis in the European Union requires action rather than inertia, and the European Investment Bank is responding in precisely that way. The right forms of investment are the best way to kick start the European economy and the EIB is planning to invest an additional 60 billion euros into projects to boost job creation, innovation and

sustainable economic growth, between 2013 and 2015. This organisation is not just about financing headline grabbing projects, however. It lends, blends grants and loans, and advises public sector bodies and private companies alike. Plans are in place to combat youth unemployment, support skills development and give small and medium enterprises the backing they need.

From chocolates to wind farms Unemployment is already a significant problem facing Europe today, and SMEs are the backbone of the European economy. The right skills and the right people in the right places can put Europe back on the even keel it is seeking. SMEs create 80% of the new jobs in the EU and now, more than ever, the EIB must be and is ready to support them. It may go against public

perception, but this bank is just as eager to invest in the development of a tourist facility in Dubrovnik or a chocolatier in Antwerp, as it is to help Germany in building North Sea wind farms to cut its reliance on fossil fuels and nuclear energy while blazing a renewable trail. The highest of standards When an organisationâ&#x20AC;&#x2122;s shareholders are the 28 EU Member States, it stands

to reason that its modus operandi will be in support of EU policy, and the EIB is built on responsibility. No project will be supported that is not economically, technically, financially and environmentally sound, while particular attention is paid to weaker regions. This reinforces the social and economic fabric of the EU, and brings the whole continent in line to achieve the same goals of sustainable growth,

sound environmental practice and improving lives for all citizens, but it goes beyond these borders. Outside of the EU, the bank supports Union external priorities and has done for over 50 years. It is the largest multilateral borrower and lender in the world and is financially autonomous. On the ground, all over the world, the EIB is making a difference every day.

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REGULATION Three questions for Jean-Marc Goy

www.myofficialstory.com/jeanmarcgoy www.cssf.lu

“The implementation of the AIFMD is a priority for our government.”

Jean-Marc Goy

What are the important dates on the agenda for 2013 in relation to the financial sector in Luxembourg? The one event that comes to my mind immediately first and foremost as the main event in 2013, which is not to be missed under no circumstances, is the Annual Conference of the International Organization of Securities Commissions (IOSCO). Today, IOSCO is recognized as the international standard setter for securities markets. Its membership regulates more than 95% of the world’s securities markets and it is the primary international cooperative forum for securities market regulatory agencies. The Commission de Surveillance du Secteur Financier (CSSF) is proud to be a member of IOSCO since 1991. This is the first time ever that the IOSCO Annual Conference will take place in Luxembourg. We expect between 600 and 850 participants for this event, which will be a unique opportunity to meet and interact with decision takers of the financial sector and with representatives of supervisory authorities from over 110 jurisdictions from all over the world. The event will take place from 15 to 19 September 2013 and will be open to the public on the afternoon of 18 September and on 19 September 2013. More information can be found under www.iosco2013.lu

What are the challenges and opportunities for the asset management sector in Luxembourg? The Alternative Investment Fund Managers Directive (AIFMD) appears to be a text implying both challenges and opportunities. As this directive contains a number of detailed requirements, the industry will be faced with the challenge of complying at all times with the new rules once they enter into force. At the same time, since the AIFMD is also introducing a passport similar to the passport for undertakings for collective investment in transferable securities (UCITS), the industry is hopeful to repeat the success which Luxembourg had in the field of UCITS, where Luxembourg is today the leading financial centre, in particular regarding cross-border distribution of UCITS. Mr Luc Frieden, Luxembourg’s Finance Minister, has repeatedly stressed that the implementation of the AIFMD is a priority for our government and that Luxembourg strives to be among the first Member States of the European Union (EU) to implement this directive. What are the challenges for the supervisory authorities of the financial sector? Over the last years, the regulation and the supervision of the financial

sector has become more and more international, the aim being a more convergent and harmonised approach from supervisory authorities in applying rules that are fundamentally the same in the major financial centres as far as possible. In parallel, the role of international standard setting bodies such as IOSCO, the Basel Committee on Banking Supervision (BCBS), the Financial Stability Board (FSB) and of the EU authorities such as the European Securities and Markets Authorits (ESMA), the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) has increased. This trend will continue in the future, as is illustrated among others by the initiative of the European Commission in view of a banking union with a single supervisory mechanism (SSM) for banks in the euro area. The challenge for national competent authorities is to make every necessary effort to ensure that their views are taken into due consideration. This is particularly true for supervisory authorities from smaller countries with a well developed financial sector.

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COMPLIANCE Interview with Jean-Noël Lequeue, Chairman of ALCO www.myofficialstory.com/alco www.alco.lu

Mr Lequeue, Chairman of ALCO (Luxembourg Association of Financial Sector Compliance Officers) answers our questions. smaller ones. It’s ALCO’s role to help COs in all the institutions.

compliance, if an internal employee takes final responsibility.

For a company looking to recruit a Compliance Officer, what are the ideal sectors (both in Luxembourg and abroad) for finding a suitable candidate? External recruitment is not ideal. It’s best to find a candidate within the company, as the CO must have a good knowledge of the company in order to be effective. CO training can be complementary or formal, in particular via ALCO certifications. Otherwise, a number of COs can be found on the job market following restructuring operations, especially by banks that are merging or who are forced to cut their staff. Job offers in the sector can be published on ALCO’s website. A final option is outsourcing. The CSSF (Commission de Surveillance du Secteur Financier) allows “subcontracting”, i.e. assistance by an external company specialising in

Could you sum up the recent changes at ALCO for us in a few words? The most recent ALCO General Meeting completely renewed the Board of Directors, but with a certain amount of continuity, and with the aim of gender parity. The insurance sector presence has been strengthened, as this sector is increasingly subject to anti-money laundering legislation and other regulatory obligations. ALCO has increased its range of certifications in order to formalise CO training. Our association organises round tables, working groups, and produces a newsletter on the issues involved. ALCO is consulted by the CSSF about the practical implementation of legislation. Our association now has 650 members and maintains relations with compliance associations in neighbouring countries.

“We expect 2013 to be similar to the past 12 years: an exponential growth in legislation.” Jean-Noël Lequeue

What are the challenges facing Compliance Officers in 2013? The challenges for 2013 will be significant. If I think back to the beginnings of ALCO 12 years ago, the only legislation at the time was that relating to the laundering of drug money. Since then, there has been an avalanche of legislation, which has often created uncertainties. How does this affect Compliance Officers’ daily work? They must abide by the rules and implement the regulatory framework, whilst remaining “business-oriented” in order to support their organisation’s activities. This requires a good understanding of the legislative and regulatory texts, which are increasingly complex and sometimes not very consistent. This is particularly the case with the AIFM (Alternative Investment Fund Managers) Directive. The responsibility of COs is increasing. Although the larger institutions are able to manage things by having teams of COs, it’s more difficult for the

“One measure that is keeping us awake at night is the financial transaction tax, even though Luxembourg is not adopting it.” Camille Thommes

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FUNDS Fund industry looks to the AIFMD and beyond Interview with Camille Thommes www.myofficialstory.com/camillethommes www.alfi.lu

ALFI director-general Camille Thommes says the EU’s AIFMD Directive gives Luxembourg an opportunity to extend its dominant role as a fund services hub from UCITS funds to the alternative investment industry. How does ALFI hope to build on Luxembourg’s success as a fund centre? After increasing by 30% to a record €2.38trn last year, Luxembourg’s fund assets have continued to grow in 2013, consolidating the country’s leading position in the European fund industry with 30% of aggregate assets. ALFI is constantly exploring opportunities for growth both within Europe and worldwide – for instance through roadshows aimed at marketing both Luxembourg and UCITS funds to institutional and retail investors. We are also highlighting the country’s expertise in areas such as socially responsible and environmental investment, notably through the LuxFlag fund certification initiative, and its growing traction as a hub for Islamic investment.

Will the AIFM Directive help Luxembourg win alternatives business? Luxembourg’s Parliament transposed the directive into national legislation as the law of July 12, 2013, ahead of the July 22 deadline. The act takes up some of the options, such as allowing non-banks to offer depositary services to private equity and other vehicles and the marketing of alternative funds to domestic retail investors. It also introduces the special limited partnership, designed to offer an alternative to the Anglo-Saxon limited partnership structure with which international investors are familiar, and clarifies various tax issues. We are confident the legislation will help Luxembourg build on its existing alternatives business, which already accounts for an estimated €300bn or 4% of global assets, an amount

we are aiming to double within the next few years. What impact is other regulation having on the fund business? The wave of new legislation and regulation since the financial crisis is important in boosting investor protection and confidence, but it has also increased fund managers’ cost and administrative burdens. We engage both at home and at EU level, including through EFAMA, to ensure that these measures are proportionate and do not put the European industry at a disadvantage to global competitors. One measure that is keeping us awake at night is the financial transaction tax, even though Luxembourg is not adopting it. As drafted it will have a substantial negative impact on the fund industry, and will penalise investment and pension provision of all kinds throughout the EU.

Antonio Thomas: The emergence of the multijurisdictional, multi-disciplinary Independent Fund Governance service provider

www.myofficialstory.com/antoniothomas

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FUNDS Interview with Antonio Thomas, Chairman of RBS Funds Services which comprises RBS Luxembourg S.A. and NatWest Trustee & Depositary, the Luxembourg based Management Company and UK domiciled Trustee and Depositary businesses within the RBS Group. What changes have been taking place at RBS over the past 12 months? We have recently created the new Fund Services Group, a new business within the international division of RBS Plc, called RBS Funds Services. At a time when new regulation has affected our clients, RBS Funds Services seeks to bring together the various different governance businesses currently offered within the RBS Group today within one business to provide a consistent value added service proposition for clients who manage multiple products in different jurisdictions and are seeking enhanced governance support for those products. In addition we have identified, through dialogue with various regulators, clients and other market participants, the extra focus on substance and independent oversight of the various aspects that will be required in the UCITS and non UCITs world of the future. From an RBS Luxembourg S.A., Management Company perspective we have concentrated on continuing to build out the proposition to deepen what was already to a large extent a 12/546 compliant business model and start to enable it for AIFMD opportunities, and for our NatWest UK Trustee & Depositary business we have been refining our AIFMD strategy for the depositary service in the UK to compliment its market leading UCITS offering. In both business lines we are keen to reaffirm our continuing commitment to be a leading market participant today and in the future. We were one of the first to set up a 3rd party independent Management Company in Luxembourg when the Management Company Directive under UCITS III

was first issued and our UK Trustee and Depositary offering was established in the 1930s. We have a long history of providing independent corporate governance solutions and see a continued and ongoing need for this expertise on a cross-border basis in the future. How does ‘Funds Services’ operate? With the increasing trend towards harmonising regulation, independent oversight and the transparency of reporting, our aim is to leverage the RBS Group’s significant international footprint and to provide a ‘joined up’ corporate governance solution for our clients. Our UK domiciled independent Trustee & Depositary business and Luxembourg independent 3rd party Management Company can help our client base to enhance their governance models and to remove barriers to entry for new players by the provision of substance which they otherwise would be unable to achieve on their own. Regulators are increasingly looking for a harmonised approach to oversight and clients are seeking strategic partners to help support their products from a regulatory perspective and who can support various platforms in multiple jurisdictions, preferably via a physical presence in each. It’s more and more important to have local presence and strong relationships with regulators in multiple jurisdictions. RBS is uniquely positioned to focus on the governance aspects without any other distractions or potential conflicts as we do not provide fund administration or custody services for example. This allows our customers the

opportunity to implement a consistent ‘independent’ oversight model which can interface with multiple service providers in various jurisdictions allowing them to retain flexibility of their operating and distribution models whilst complying with enhanced regulation. We can even provide a harmonised support model for their UCITS and AIFMD or non UCITs platforms too. To facilitate the harmonised service model I have been privileged enough to have been asked by RBS to act as the Chairman for the new business, a role I assumed at the beginning of 2013. Where is the fund industry going? If we look ahead over the next 3 to 5 years it is reasonable to assume that the current trend of converging regulation between UCITS and non UCITS products will increase. This will almost certainly lead to further rationalisation of products in the funds space and increased segmentation in the service supplier space with players specialising in specific roles for transparency, avoidance of conflict of interest and regulatory substance reasons. Clients who require multi-jurisdictional product ranges within Europe and further afield to support their business models and distribution networks will almost certainly need to work with strategic partners. RBS is such one partner who can provide a consistent, cost effective and multi-disciplined service offering as well as leverage their already strongly multi-jurisdictional presence, brand recognition and local relationships with multiple regulators where their clients’ products are domiciled.

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Schroders: why Luxembourg? myofficialstory.com/schroders

FUNDS

Noel Fessey

Massimo Tosato, Executive Vice Chairman at Schroders plc and Global Head of Distribution sat with Noel Fessey, Managing Director at Schroder Investment Management Luxembourg to talk about the reasons that brought Schroders to Luxembourg.

What is Luxembourg representing in Schroders’ strategy? Massimo Tosato: Luxembourg is the global hub for our mutual funds business. Over sixty billion euro is domiciled here, across 146 funds of different types with various compartments. They are distributed in four continents and about forty countries. Why Luxembourg? Massimo Tosato: When we started the intermediary business in the midnineties, we saw that Luxembourg was user friendly, with a regulator that builds a framework that allows companies to develop and thrive. Infrastructure was well developed and we found here a multilingual environment with several good universities nearby. Noel Fessey: Originally, the Luxembourg office was focused on locally domiciled funds, but this has evolved, so that we are now able to assist our colleagues all over the world, both for Luxembourg and non– Luxembourg Funds. The operational Massimo Tosato

gearing and industrialisation are superb, both in terms of business information and execution. Massimo Tosato: I said this morning during my presentation that our industry had very high margins, which will tend to decline. A key factor is to learn from other sectors: the automotive industry for example. Up to now we only focused on talent, no matter the price. Now we also need to focus on manufacturing and IT. Luxembourg is a benchmark for the group in terms of IT development. Noel Fessey: It is normal for us invest our fund expertise into our technology. For example, we are just completing a project to upgrade our share class hedging service, giving us better execution in the market and complete automation for improved efficiency and lower risk. Production system design is important to us. We aim to evolve in step with the new features in our products and the growth in our business volumes. We do this in many lines of service, and we now help our Schroders colleagues in many countries, for example, with pan-European accounting and IT.

We also manage the revenues and report the sales results for Schroders’ worldwide fund business – that’s nearly 700 funds in 23 countries. Massimo Tosato: Last week I travelled to Argentina, Chile, and São Paulo: they also use the Luxembourg system. We provide the ability to execute smoothly, with perfect due diligence and maximum safety. What makes Schroders different? Massimo Tosato: we combine two characteristics: Schroders is a public company, with a family who has relative majority among the shareholders. As a consequence, we work with the discipline of a public company and with the long term view of a family business. We don’t really care about the quarterly results. This allows us to have a long term vision and a unique ability to invest in new products and new markets. I joined Schroders in 1995, but when I moved to London in 1999 we had 70% domestic funds and 30% international. Today, it is the opposite.

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FUNDS

Interview with Jean-Philippe Cerutti, a Partner at MEBS

“Hindsight is a biased way to predict the future.” Jean-Philippe Cerutti

www.myofficialstory.com/mebs www.mebs.lu

Can you provide a brief outline of your career to date? After having completed my studies – Engineer and MBA– I began my career at Société Générale, working in the Equity & Derivatives department in Paris. I was then recruited by Crédit Suisse First Boston in London to help setting up a hedge fund. After this, I moved to Geneva, where I was an independent manager for RBC and Lloyds. Finally in 2008, I was approachedby a major family from the Middle East who invited me to be the CIO of their family office in Geneva. This experience allowed me to see the other side of the picture.My professional path enabled me to build up an eclectic skillset in finance. Over the course of my career, interest rates have fallen to zero, turning asset management into risk

management and asset allocation into risk allocation. For an UHNWI, in previous years, main concerns were focused on lack of performance. Today, the issue is to avoid having a government taking ownership of some of their assets, as we saw in Cyprus. What is your analysis of international finance and the future challenges today? The main challenge is to deal with “the new normal”, i.e. a world with zero interest rates, anaemic growth and very high levels of debt. We need to rethink finance to address the key aim of creating value. We have a unique opportunity to establish a world of finance that serves investors, families and economies. Everyone has realised that ‘finance for finance’ does not benefit anyone.

Why did you decide to move to Luxembourg? In the first place, within Europe, Luxembourg is a prime location for Family Offices. Dubai? Monaco? London? Switzerland? Luxembourg is regarded as a small and pragmatic country that demonstrated a great ability to adapt to a changing regulatory environment. The political drive to turn the country into a financial “Silicon Valley” is tangible for our clients and for wealth managers. Our clients nowrequire transparent and regulated vehicles. The second factor in my decision was MEBS itself. The company has a strong entrepreneurial culture where ethics play a major role in its operations. I joined this organisation to liaise with Families and advise them on their wealth.

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FUNDS

Frédéric

Perard The future in action

www.myofficialstory.com/fredericperard

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FUNDS

>> “Luxembourg must adapt to a growth in competition.”

Frédéric Perard

Frédéric Perard, the regional manager for BNP Paribas Securities Services (BNP Paribas) analyses how the situation has developed for Luxembourg funds.

Where are we in terms of implementing the new regulations? We are now in the implementation phase for the new regulations and BNP Paribas is participating in various working groups at the CSSF (Commission de Surveillance du Secteur Financier) to help the process. The main difficulty is that we are caught between extremely short deadlines and a continuing number of unknown factors with regard to operational aspects, right up to the last minute. The implementation of the AIFM (Alternative Investment Fund Managers) Directive is a good example of this: the final text has been delivered in June, but was to be implemented on July. It’s pretty much the same with EMIR or FATCA. That said, we have developed expertise in implementing these different regulations, and we are already noting the benefits for our clients.

What will the return on investment be following these implementations? The arrival of new business makes the cost of implementing these regulations bearable. Thanks to Directives such as UCITS IV, Luxembourg reinforces its position as centre of excellence for UCITS cross distributed all over the world. A Brazilian manager might ask a Luxembourg fund to be created for one of his Japanese clients, for example. In this case, the net asset value must be ready at one o’clock in the morning CET time. The Grand Duchy has adapted remarkably well to globalised business and has made the most of its small size to adapt quickly. What will the market be like in the future? I see three basic developments: 1. Firstly, the country will continue to surf the wave of the new legislation,

as we have an exceptionally relevant and responsive “expert environment”, consisting of service providers, consultants and lawyers. For example, AIF (Alternative Investment Funds) could be attracted to the Grand Duchy via the new legislation, and I see considerable potential in niche markets such as Real Estate funds, Loan Funds and Infrastructure Funds. We must capitalise on Luxembourg’s excellent global image. 2. Secondly, there is the challenge of recruitment. The strengthening in assets in the Grand Duchy has led to a search for specific skills, in risk and compliance. However, Quantitative Analysts, for example, are not to be found everywhere. 3. Lastly, everyone in the sector must get used to a growth in competition. Several players offer similar services, and as I announced last year, differentiation will come from expertise and market presence.

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“UBS has been established in Luxembourg for 40 years and develops solutions adapted to sophisticated institutional investors.” Christophe Cornet

FUNDS Christophe Cornet: UBS Luxembourg and the “one-stop shop” approach www.myofficialstory.com/ubs

Faced with the new legislation, the major groups have had to develop their range of services. Interview with Christophe Cornet, Executive Director in charge of Management Company Services for third party clients.

How has UBS adapted to the changes in the Funds sector? UBS has had its own Management Company for third party clients for a long time, but some clients based in different jurisdictions have now expressed new needs. UBS has therefore developed its range, based on the existing model for UBS funds in terms of procedures, controls and organisation. We have reinforced our existing team with additional experts, to cope with the latest changes in legislation: UCITS IV, the new SIF law, and the AIFM Directive. This includes monitoring delegated functions, managing risk and supporting governance. In practice, we offer the Management Company, but its services can also be accessed on a flexible basis. We draw on the group’s strengths: its platform, R&D expertise, etc. For example, the risk manager in the Management Company works very closely with his risk colleagues at UBS Global Asset Management.

What do your institutional clients expect? Our clients want us to react rapidly and flexibly, meeting all the regulatory requirements. Our company has the best experts and the best technology, two essentials for keeping up to speed with current developments. UBS procedures in fact sometimes follow standards that are higher than those required by the law. That said, we make a distinction between traditional clients who want a “onestop shop”, capable of managing all their needs, and clients who want to remain focused on their core business – portfolio management or Fund distribution – by relying on a partner capable of taking charge of their secondary activities. Some services are essential – central administration and safeguarding assets – but UBS Management Company Services also offers a flexible approach to selecting the portfolio manager or Fund distributor.

How do you see your sector developing in the next few years? I see two main trends. The first is the disappearance of small, selfmanaged structures, which will be forced by the new legislation to make use of companies like UBS to meet the requirements of the authorities in the countries where they distribute their products. Faced with this standardisation of the market, critical mass and branding will take on increasing importance, which leads to the second trend: Asset Managers looking for leverage effects by relying on large companies which have experts, technical expertise and the necessary financial backing. An Asset Manager who manages tens of billions does not have the power of a group that manages several hundred billion. We are now working on setting up a “Super Management Company”, capable of taking charge of UCITS and non-UCITS funds, in the context of the AIFM Directive.

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BANKING “Our strength comes from being a dynamic local bank integrated into a solid international group.” Luc Verbeken

Luc Verbeken: “Bankwide” vision www.myofficialstory.com/ing

The new CEO of ING Luxembourg, Luc Verbeken, answers our questions. What are your main objectives for Luxembourg? My main concern is to continue the work that has been undertaken by my predecessors in recent years. This is an exciting mission because ING Luxembourg serves both the general public and businesses, at a local level and internationally. We offer a wide range of intelligent solutions for individuals and companies alike: fully transparent structured products, solutions dedicated to the transfer of assets, structuring of holdings, etc. The recent changes in legislation allow us, for instance, to improve our market position in the areas of asset management and fund management. Our strength comes from being a dynamic local bank integrated into a solid international group.

is very active on the Dutch market. The specialists based there serve international clients, but their primary focus is on domestic clients. On this basis, it is my responsibility is to get to know what expertise is available in Luxembourg – in particular in the area of funds regulation – in order to encourage internal outsourcing. If Luxembourg is a centre of excellence for funds, why should we continue to produce them in Amsterdam? At the end of the day, a group is a combination of smaller structures where each manager is looking to ensure the cost-effectiveness of his/ her area while optimising expenditure. The good news for Luxembourg is that these new regulations have increased the cost basis everywhere in the world.

How do you benefit from belonging to this group? Our parent company in Amsterdam

What profile do you need to work in Luxembourg? I think there needs to be a “Bankwide”

vision (Editor’s note: an overall vision of the bank, derived from the word “Worldwide”). When I learnt of my nomination I was a little surprised, but it didn’t take long to understand! I have worked in Brussels, Madrid, New York and Amsterdam where my mission involved a strong “global” vision. Now, since my arrival in Luxembourg, I have noticed that the country has shown genuine international intelligence. We have the experts, the connections and above all the culture necessary to connect with all of the entities of the group and to respond to the commercial, reporting and audit requirements. This is what banking is about today: a decentralised model which is very close to customers, but harmonised by the regulators. So it is no surprise that ING is the largest direct bank in the world.

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FINANCE From SGGland with Love www.myofficialstory.com/sgg www.sgg.lu

Clients first. Always Our business is a client centric business: we do it with passion as we love what we do. When SGG Luxembourg started its service offer to clients, sixty years ago, the original approach was to enhance their patrimonial situation. Our clients came to Luxembourg to protect their assets but also to structure the latter with Luxembourg companies and legal solutions. In order to help our clients with the day to day management of their Luxembourg vehicles, we started offering them accounting, tax filing and ancillary legal compliance activities linked to the proper maintenance of their local legal entities.

From Luxembourg and the Netherlands to the world At that time, “globalization” wasn’t that often used to describe the beginning of an activity where large enterprises and entrepreneurs started to discover Luxembourg as a hub to expand their cross border activities. With a growing client base and – contemporarily – a growing demand from our clients for the same quality service they enjoyed in the Grand Duchy, SGG was bound to expand.

“Our business is a client centric business.” Serge Krancenblum

The Netherlands was the next step After we opened the first office in Geneva, Switzerland in 1979, the Netherlands were the next obvious step. Some Private Equity houses, our faithful clients since our Luxembourg beginnings, were more and more often using the Netherlands in their investment structuring. As Luxembourg, the Netherlands is another jurisdiction of choice for international groups as the country has a good - if not excellent - double tax treaty network. It also has a healthy infrastructure of service providers. In order to assist our

clients in the latter jurisdiction, SGG decided to start with Amsterdam. In 2008, SGG added a further location on the global map, through the acquisition of a Luxembourg based service provider with a presence in the Netherlands. The Brussels’ office followed soon after, as more clients were looking for a reliable service for Belgian holding companies structures. Our clients expected there the same service quality level they enjoyed in Luxembourg. The growing number of Belgian companies we currently assist confirms that the decision to expand in our neighboring country was a sensible one: SGG Belgium is a real success. Servicing our clients wherever they are In a constantly changing world, Luxembourg and the Netherlands - although sometimes perceived as competitors - were always represented in the organization chart of our Private Equity and corporate clients structures. In order to offer our clients the best of both worlds, SGG Group Dutch expansion soon became a strategic must. Our Executive Committee identified possible available targets but not all of them fitted both our philosophy and approach: a top notch quality service to our end clients while always keeping their advisors in the loop. With IMFC and ANT, SGG was lucky enough to find two leading Dutch service providers sharing the same values and client centric approach. Both transactions were finalized in less than a year between August 2011 and April 2012. With two strong operational platforms, the SGG Group now employs more than 500 professionals in 14 jurisdictions: SGG has now a true presence on a global scale. With offices in Aruba and Curaçao, Shanghai and Hong Kong, ANT added two continents on the SGG map.

Contemporarily, SGG opened offices in Malta and strengthened activities in Cyprus by becoming a licensed trust company. As more and more of our clients stemmed from the USA especially the Private Equity and Real Estate players - we opened a New York office in 2012. Our NYC presence allow us to be closer to our existing clients in the Americas and assist US and Canada law firms and tax advisers with their projects in all SGG jurisdictions. Recent developments of fund administration activity in most jurisdictions where SGG is operating has driven us to strengthen our Fund Administration Team in Curaçao. ANT Curaçao enhances its role as a global player in the Dutch Caribbean. From Curaçao we offer corporate and fund administration services to foreign clients that invest in the Latin American markets and to those Latin American clients that invest in international markets. Our clients are family businesses, family offices and fund managers. They expect solid regulation and flexible business solutions in a stable environment. As part of the Dutch Kingdom, the Curaçao jurisdiction provides just that to them. As we are in a client driven business, the story goes on as and will always do. We listen to our clients’ ideas and needs and will open operational platforms wherever it makes an economic sense for both of us. We will open in all jurisdictions where our clients expect the SGG service quality level they are accustomed to with SGG, FAcTS, IMFC and ANT. IFA 2014, Mumbai, India special edition will tell you about SGG’s next destination. That is, wherever as long as we keep on putting our clients where they belong: Number One on our priority list.

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LEGAL Arendt & Medernach: Regulation and strategy: three trends for 2014 www.myofficialstory.com/arendt www.arendt.com

Hub strategy In line with recent precedents from i.a. China and Russia, Luxembourg should continue to attract also large players in the banking sector coming from outside Europe, and which intend to set-up their European operational hub, for a number of reasons. The country has a long track record as a cross-border financial services centre for which both authorities and service providers have developed a unique expertise. In a business-minded environment, new players may rely, to launch their operational base in a cost-efficient manner, on a strong local pool of regulated and efficient service providers. Finally, its multilingual capabilities are well known, and it benefits from an ideal geographical position, making the country a uniquely well-positioned gateway to Europe. If adopted in its current form, with MiFID II, the trend is likely to continue as non-EEA banks or investment firms will only be able to serve EU retail clients by establishing a branch in the relevant country and

are restricted in terms of activity to that particular market – presumably a costly one-at-a-time approach. Some players are already anticipating this and by establishing a subsidiary in a jurisdiction with an appropriate trackrecord for this, they will be able to serve clients throughout the EU on the basis of the European passport. Selective approach to financial activities Not long ago, setting up a bank was the established approach if a player aimed for banking-related activities. Due to regulatory inflation, such approach entails necessarily a certain price tag, which the stringent CRD IV requirements, will eventually push further. As a result, players often tend to restrict their initial activities and thus apply for a less demanding individual license. For example, players active in payments, a service traditionally reserved to banks, also restrict their launching activities to mitigate capital costs and thus their investments. This trend is likely to expand as clients

and professionals have become accustomed now to being serviced by, respectively working with, smaller regulated companies that are not necessarily banks. Competitiveness at every level Despite the above challenges driven by regulatory obligations, financial sector players must remain clientfocused but also in terms of costs. Inevitably, this has also generated consequences for their service providers. In an economy marked by budgetary constraints, service providers are more than ever judged on their responsiveness, innovation, quality and cost-effectiveness, which is a challenge in an ever further regulated sector. However, lately it seems that these competitiveness and client focus challenges no longer apply only to these players but are de facto extended to all parties involved in regulatory projects. The Luxembourg sector seems to be well prepared to take on that challenge as it has done in the past.

“Luxembourg is a uniquely well-positioned gateway to Europe.” Glenn Meyer

It is no secret that financial regulation is evolving continuously and quickly: CRD IV, MiFID II, FATCA, and PSD II just to name a few. Apart from the challenges entailed thereby, there are also opportunities. Arendt & Medernach partner Glenn Meyer identifies three strategic trends that will characterise part of the financial services industry next year.

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LUXURY

Jean-Claude

Biver The tourbillon ÂŠ HUBLOT

www.myofficialstory.com/hublot

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LUXURY Jean-Claude Biver was born in Luxembourg and spent the first ten years of his life there. His family moved to Switzerland, where he succeeded in reviving the fortunes of the watchmaking industry.

3 key moments The young Jean-Claude developed a passion for watches as a result of three key moments in his life: his first communion, when he received a watch which was immediately placed in a safe until he turned 18. Secondly, the loss of this precious watch during a skiing trip. And finally, when he saw a watch with a visible mechanism on the wrist of Jacques Piguet, during a fondue meal. He says that the mechanism reminded him of the steam machines he had admired as a

child in the windows of toy shops. He therefore decided to make his career in this industry, so that he would never actually have to “work”. A stroke of genius After graduating from HEC Lausanne, Jean-Claude Biver began working at Audemars Piguet, and in 1982 Biver and Jacques Piguet purchased from UBS the rights to Blancpain, a brand that had been dormant since 1956, for barely 18,000 Swiss Francs. At that time, the quartz revolution was

underway, threatening the future of the Swiss watch industry. The future CEO immediately understood that although the whole world was wearing quartz watches, the demand for traditional watches was still high. Using the idea of “retro-innovation”, he capitalised on Blancpain’s strength: classic, round watches, without any fancy or eccentric designs. A charismatic leader, he is capable of winning over an audience, reseller or an amateur by telling captivating stories interspersed with communicative bursts of laughter.

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LUXURY

For him, success can be summed up in three words: sharing, respect and forgiveness. And failure in one word: his divorce in 1989, which led him to sell Blancpain to the Swatch Group. Charisma & mechanisms Biver joined the Swatch Group Board and turned around the Omega brand. In 2003, he turned his attentions to “Hublot”, a brand specialising in blending materials such as gold, rubber and carbon. Success was followed by the Big Bang and the recession, and in 2008, the brand was sold to LVMH, although he stayed as Chairman. In his opinion, the watchmaking sector has undergone

>> © HUBLOT

three revolutions: first the arrival of quartz, then the launch of Swatch to rival Japanese watches, and finally the detachment of the watch from its function. Time is everywhere these days, at no cost. Watches have therefore become an art, an emotion, a dream and at times a “status symbol”. Fifty per cent of Swiss production is now exported to China! Hublot currently employs 380 people. Jean-Pascal Delamuraz In addition to his business formulas and his talent for communication, Biver’s secret lies in his incredible capacity for work. His encounter with the future President of the Swiss

Confederation, in the early 80s, was a key moment. He had just taken over Blancpain, and was seeking to obtain subsidies usually reserved for the redeployment of watchmakers to the micro-electronics sector. The meeting was arranged for 5 o’clock in the morning. Jean-Pascal Delamuraz harangued the young entrepreneur: “Biver, do you know why you’re here? In the Risoux forest, there are guys like you, behind every tree. Do you know how you’re going to beat them? By getting up every morning at 5 o’clock. The bad news is that you won’t get a subsidy, but the good news is that by getting up so early, you will succeed.”

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LUXURY

Maserati Ghibli, a new era for the Trident brand www.myofficialstory.com/intini

With the new Ghibli and the forthcoming SUV Levante, Maserati has begun an ambitious programme to increase its sales volumes from 6,200 units in 2012 to 50,000 by 2015. The adoption of a diesel engine is essential for meeting this target. Ghibli, a name that evokes ambition… From 1967 to 1973, Maserati produced a very beautiful coupé with a V8 engine of 4.7 or 4.9 litres, known as the Ghibli (a name of Arabic origin attributed to the Sirocco winds). For Maserati, the Ghibli 2013 is

therefore a return to its origins. What is new, however, is that this is a saloon car, which has been positioned to offer an alternative to the luxury German saloon cars, and to stand out from the crowd thanks to its sophistication and deliberately Italian style.

Some figures… The Ghibli’s design is based on the Quattroporte, but it is 17cm shorter and therefore lighter and more compact. The first turbo-charged petrol V6 engine has 330 hp while the S version has 410 hp. The diesel version, which should sell best in

Europe, has a V6 VM engine redesigned by Maserati with 275 hp and 600 Nm of torque. An eight-speed ZF automatic transmission is standard on all engines while the S version can also have four wheel drive. The S can get up to speeds of 285 km/h, the diesel tops 250 km/h. Life on board… The Poltrona Frau interior leather is very comfortable and classy. The dashboard is clear, positioning the Ghibli between a saloon sports car and a grand tourer. Inside,

the four seats are well designed, and all the standard options for this class of saloon car are available. At the wheel... The suspension system was designed by Ivan Capelli, a former Ferrari F1 driver, and both the petrol and diesel version of the Ghibli are neutral to handle and agile on tight corners. The steering is very slick for a saloon car. This is definitely a car that eats up the miles, a beautiful car to drive. The engines are very “musical”

to the ear, differentiating it clearly from the competition. The diesel version has CO2 emissions measured at 158g/km. However, by pressing the Sport button, the sound dampers near the exhaust outlets work miracles, making you think you’re at the wheel of an American saloon car with a large V8 engine. To sum up, a beautiful saloon car for lovers of the Italian style. Garage Intini by Pierre-Yves Augsburger

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REAL ESTATE Analysis and trends of the real estate market in Luxembourg www.myofficialstory.com/vincentbechet

Interview with Vincent Bechet, CEO of Property Partners.

What are the current trends in real estate? Business real estate is still very dynamic. Empty leases are now below 6% (5.49% in the first quarter of 2013) compared to 8% to 18% in neighbouring countries, while the stock continues to grow (+6.63% compared to the first quarter of 2012). However, behind this vacancy rate there is a considerable disparity between districts. The most sought-after quarters such as the Kirchberg or the city centre will probably experience high pressure

on rental prices. It’s also interesting to note the many projects by major companies such as ING, PWC, KPMG, BNP, Sogenal, Bertelsmann (RTL), E & Y, Arendt & Medernach and others, who have made the decision to build their own offices and therefore plan their long-term activities in Luxembourg. As for retail, this year has been marked by the opening of the Cactus BelleEtoile shopping centre in Bertrange in May, which is one of the jewels in the crown of the Grand Duchy. Other future projects include the Royal Hamilius in Luxembourg city centre, the Place de l’Etoile complex of offices, residential buildings and shops on Route d’Arlon at the entrance to Luxembourg, and the construction of a second Auchan centre at Ban de Gasperich. All these projects represent a total surface area of approximately 80,000 square metres. The expansion of retail real estate in Luxembourg helps us to catch up on previous years. A few years ago, many Luxembourgers went to Germany, Belgium or France to do some of their shopping. As the offer has diversified, residents are now

finding solutions to their requirements more easily, closer to home. Luckily, these projects are opening up at regular intervals, so that the increase in surface area is absorbed well by the market. Finally, as for residential real estate, projects continue to be launched in successive phases, maintaining the imbalance between supply and demand. This market has significant growth potential, especially in certain niches such as luxury housing. Your group is currently expanding. Can you tell us about this? Property Partners will celebrate 15 years in existence next year. We are continuing to develop our services. We market office spaces, offer real estate strategy and investment advice, and value and manage buildings. For example, we manage 68 buildings in Luxembourg, covering a total of 400,000 square metres. But in the future we are looking further afield: we have opened an office in Belgium and another in France, to support our clients over the border.

“The market only translates the health of the financial market.” Vincent Bechet

What is your analysis of the Luxembourg market? The Luxembourg economy is above all linked to the financial markets. Although Luxembourg remains a target for criticism from neighbouring countries, the financial sector is still solid, as the funds industry is second in the world, behind the United States. Finally, the law of December 2012 on family office regulations, which requires good understanding and genuine expertise in financial engineering, will enable the country to expand its range of skills.

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REAL ESTATE

Donald Trump: Interview www.myofficialstory.com/donaldtrump

Interview with the president of the Trump organization Which scenario do you anticipate for the coming years? That’s hard to predict but as I mentioned, real estate has cycles as do so many other things. Things turn around. You just need to have the right attitude, so that you can take advantage of future opportunities. Can you give an overview of the main current projects of your organization, all over the world (Including Trump International Golf Links Aberdeen). We have been moving forward and it’s been exciting. We bought the Doral in Miami which is 800 acres and is now called Trump National Doral, which includes five championship golf courses and a 700 room hotel. It will be fantastic. We were selected as the developer of

the famous Old Post Office Building in Washington, DC, which will be a 300 room luxury hotel while maintaining the original façade. There have been many acquisitions, and Trump International Golf Links in Aberdeen has been an enormous success already, receiving many accolades. It’s been a busy and productive time. How do you see Luxembourg in the Real Estate world? I do not know Luxembourg well enough to give you an informed answer. I do know that Luxembourg is in a pivotal position geographically, which is a strategical advantage. It is also a beautiful country. It should hold its own very well. Donald Trump

What is your opinion regarding the real estate market in America and in the rest of the world? While it is a difficult situation to navigate, it’s important to realize that there are always opportunities. When I first entered the real estate market in NYC, everyone said it was a terrible time, but it’s what I wanted to do so I kept at it and I was successful. The market in the US is alternately good and bad, but it’s an excellent time to buy. I’ve done very well and feel positively about the market returning in a short amount of time. Globally, we’ve all taken a hit but those are the cycles of real estate.

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GASTRONOMY

Brasmsearnie Schu

The cream of the crop Duke presents a selection of Euro-Toques members based in Luxembourg.

Le Clairefontaine

Les R

oses

Le Grillon

La RameaudiĂ¨re

De Jangel

Lea Linster

Um Plateau

Ristorante Favaro

Le Bouquet Garni MORE INFORMATIONS

Windso

Ma Langue Sourit

Download Spoon magazine. www.spoon.lu www.euro-toques.lu

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GUIDE

LAWS NO 1

Ceos’ favourite addresses

Clairefontaine.

Um Plateau.

Bourglinster.

EATING UPSCALE Bouquet garni: www.lebouquetgarni.lu Clairefontaine: www.myofficialstory.com/clairefontaine Favaro: www.favaro.lu La Rameaudière: www.larameaudiere.lu Le Windsor: www.windsor.lu Léa Linster: www.lealinster.lu Ma langue sourit: www.mls.lu Mosconi: www.mosconi.lu CASUAL Brasserie Mansfeld: www.mansfeld.lu Brasserie Schuman: www.myofficialstory.com/ brasserieschuman Boos K Fé: www.boos.lu Ikki: www.ikki.lu Um Plateau: www.myofficialstory.com/umplateau SPECIALITIES Burger: Le Booster’s: www.booster.lu Italian: Voglia Matta: Tel.: (+352) 26 48 20 98 Indian: Maharaja: Tel.: (+352) 24 17 45 Asian: Opium: Tel.: (+352) 26 360 160 Sushi: Yamayu Santatsu Tel.: (+352) 46 12 49 CIGAR La tabatière: www.la-tabatiere.lu LEASURE CASTLES Beaufort: 24 Rue du Château, L-6310 Beaufort

Sofitel Grand Ducal.

Bourglinster: 8 rue du Château, L-6162 Bourglinster Clervaux: Am Schlass, L-9774 Urspelt Vallée des sept châteaux: Leesbach, L-8363 Septfontaines Larochette: 4 rue de Medernach, L-7619 Larochette CULTURE Mudam: 3 Park Drai Eechelen 1499, Luxembourg www. myofficialstory.com/mudam Philharmonie: Place de l’Europe L-1499, Luxembourg Casemates: 30, place Guillaume II, Luxembourg Palais Grand ducal: 17 Rue du marché-aux-Herbes, Luxembourg PARTY Rives de Clausen: www.myofficialstory.com/rivesdeclausen Bypass: www.bypass.lu White House: www.white.lu HOTELS Sofitel Grand Ducal: www.myofficialstory.com/sofitel Hotel Le Royal: www.hotelroyal.lu Le Place d’Armes: www.hotel-leplacedarmes.com Melia: www.melia-luxembourg.com Albert 1er: www.albert1er.lu

www.luxembourgofficial.com

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SOCIAL CLUBS

Networking in Luxembourg

LUXEMBOURG MAGAZINE DUKE

THIS PAST SUMMER DUKE HELD ITS ANNUAL RECEPTION AT THE SOFITEL GRAND DUCAL, THE BEAUTIFUL HOTEL OVERLOOKING THE PÉTRUSSE VALLEY IN THE HEART OF LUXEMBOURG CITY. MORE THAN 130 GUESTS ATTENDED THE EVENT.

SOCIAL CLUBS Cercle Munster: www.munster.lu Golf Club Grand Ducal: www.gcgd.lu

British Chamber of Commerce: www.bcc.lu Indian Chamber of Commerce: www.ibcl.lu Nordic countries: www.nobelux.se

SERVICE CLUBS Rotary: www.rotary-interclub.lu Lions Club: www.lions.lu Round Table: www.trl.lu JCI: www.jci.lu Kiwanis: www.kiwanis.lu

PROFESSIONAL ASSOCIATIONS Banks: www.abbl.lu Investment Funds: www.alfi.lu Private Equity: www.lpea.lu Industry and Trade: www.fedil.lu

SPORTS Polo Club: www.poloclub.lu Tennis clubs: www.scheiss.lu, www.tennisspora.lu Golf Clubs: www.golfdeluxembourg.lu, www.kikuoka.lu, www.golfclervaux.lu, www.golfgaichel.com, www.golfclubchristnach.lu Fitness: www.justmove.lu, www.coque.lu Yacht Club: www.mycl.lu Pool: www.Q42.lu CHAMBERS OF COMMERCE Chamber of Commerce of Luxembourg: www.cc.lu American Chamber of Commerce: www.amcham.lu Italian Chamber of Commerce: www.ccil.lu French Chamber of Commerce: www.cfci.lu

OTHER BUSINESS LINKS Entrepreneurs Task Force: www.etfl.lu Luxinnovation: www.luxinnovation.lu Incubator: www.technoport.lu Regulator: www.cssf.lu Research: www.tudor.lu Government: www.gouvernement.lu OTHER WEBSITES Formalities: www.guichet.lu Schools: www.euroschool.lu, www.islux.lu, www.st-georges.lu, www.vauban.lu, www.empf.lu Foundations: fdlux.lu Tourism: www.visitluxembourg.com Automobile Club: www.acl.lu

www.duke.lu

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SOLID + STABLE + SOUND

your

talent! We are looking for articles for the next edition of “Duke” Topics: technical subjects, testimonies, your hobbies

BCEE again ranked among the 10 safest banks worldwide.

Format: 1 title, 1 short introduction (200 characters maximum), 3-4 titled paragraphs – totalling a maximum of 2.300 characters (including spaces).

Global Finance Magazine confirms Banque et Caisse d’Epargne de l’Etat, Luxembourg (BCEE) position in 2013 as one of the 10 soundest banks worldwide. Moreover, with its excellent ratings of Aa1 and AA+, BCEE is one of the best rated financial institutions in the world. Awarded year after year for its stability and financial soundness, the Bank has thus been confirmed in its long-term strategy.

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Banque et Caisse d’Epargne de l’Etat, Luxembourg, établissement public autonome, 1, Place de Metz, L-2954 Luxembourg, R.C.S. Luxembourg B 30775 www.bcee.lu tél. : (+352) 4015-1