No. 69 NOVEMBER/DECEMBER 2019
GUARDIAN ANGELS
30 SOFT SKILLS
Why security is big business Behind the changing face of security firms and their staff
44 FINANCE Bourse exec Julie Becker on green bonds and greenwashing
MILITARY What Nato is doing in Capellen
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NOVEMBER/DECEMBER 2019
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No. 69
Uncovering the world‘s finest wines & spirits selection !
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Politics
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ILLUSTRATING DELANO Juanjo Gasull is a young illustrator from Valencia, Spain, who works for several press and media outlets, including Gràffica, Politico and Principia Kids Magazine. ↳ www.juanjogasull.com
The news that Twitter will no longer publish political advertising is welcome news ahead of era defining elections in the UK this December and the United States in November 2020. It has become clear that social media platforms played significant roles in both the Brexit referendum and the US presidential election of 2016 (Netflix documentary “The Great Hack” is essential viewing for anyone who wants to understand the impact of this). Mark Zuckerberg, on the other hand, is being duplicitous when he suggests that in the name of free speech Facebook will not place a limit or scrutinise advertising from political parties, even if the content of those adverts is clearly promoting falsehoods. But, thanks to that very freedom of speech, social media has also become a home for what one British female MP, Heidi Allen, has called a “nastiness and intimidation that has become commonplace”. Allen is one of several female MPs who will not be defending their seats in the UK’s 12 December election. They include Nicky Morgan, who blamed her decision partially on “the abuse for, doing the job of a modern MP” that she suffered. In Germany, Katharina Schulze, the leader of the resurgent Greens in Bavaria, has been a target of abuse from the far-right, including on the Facebook page of the AfD party, which a BBC investigation revealed had targeted her almost ten times as much as any other political figure or party. In France, the country’s first black government spokesperson, Sibeth Ndiaye, was subjected to a tirade of disparaging comments when she was appointed in April. Across the Atlantic, in the United States, Democrat representative Katie Hill did not go quietly when she resigned from Congress after accusations of sexual relations with her staffers and the leak of revenge porn by her ex-husband. She blamed a “misogynistic culture” and said that she had been subjected to thousands of “vile threatening emails, calls and texts” that had made her fear for her life. Of course, male politicians have also suffered abuse and threats. But as the Institute for Strategic Dialogue pointed out this summer, the messages that target men are nearly always centred on their political views rather than their appearance, gender or sexuality. Here in Luxembourg, thankfully, such abuse is rare and does not seem to be as aggressive as elsewhere. When it does happen, politicians would do well to follow the lead of Déi Gréng cabinet minister Sam Tanson, who launched a proactive counter-attack when she received an anonymous letter criticising her appearance. Rather than hide, Tanson published the missive and urged people to pay attention to what she said, and follow what she did, rather than how she looked. That is a message we could all take to heart. Duncan Roberts Editor-in-chief
Letter from the editor
The fight against misogyny
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November/December 2019 Reporting on the community
FEATURES
Analysis of business, the economy and politics
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THE SOURCE
A guide to culture and lifestyle
80
GROUP IN THE PINK
Interview
INNOVATION AND DISCOVERY Olivier Toth on how the Rockhal is evolving
9 THE GI OF ESCHWEILER
84 11
On stage
FASCINATING THEATRE & OPERA
“MY LIFE IS HERE”
12 ESTABLISHING GOOD HABITS EARLY
14 TRACKING TORNADOES
16 In my suitcase
LIGHT, LAUGHTER & DANCE What Katerina Balta brought when she moved here
30 Cover story
Funds industry
WHY SECURITY IS BIG BUSINESS What do butlers and security guards have in common? More than you might think. Delano examines the growing demand for security agents with soft skills. And how dangerous is Luxembourg, anyway?
BRINGING WEALTH TO STARTUPS
44 TRANSPARENCY IS KEY Stock exchange exec on green bonds and greenwashing.
18 Community spotlight
CANUCKS BREAKING THE ICE Canadians Karen Wauters and François Légaré on life in Luxembourg
48 SUPPORT AND PROCUREMENT What is Nato doing in Luxembourg?
54 Get the picture
20 Snapshots
COMMUNITY & NETWORKING
56
THE BITTEREST PILL A look at Luxembourg’s pharmacies
58 PRIVATE DEBT EVOLVING
60 “ROBUST” APPETITE FOR REIFS
86 Special feature
KEEPING IT PERSONAL Delano catches up with three craftspeople about some artistic holiday gifts
92 Restaurant review
62 “MISSED OPPORTUNITY” FOR INFRASTRUCTURE
BAZAAR
94 Kids page
64 SUSTAINABLE STEWARDSHIP
72 Interview
NOT JUST A CODING SCHOOL
74 Delano Live
KEEPING RECRUITMENT HUMAN
CELEBRATE ST. NICOLAS
98 Auntie Eleanor
DIY PLANS Our advice columnist digs into home improvement schemes
Contents
THE JOURNAL
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portfolio construction? We all require transparency and data from the companies we invest in. The same principle should apply to asset managers; their activities must be demonstrated and disclosed clearly so investors can understand their ESG approach and its added value. Useful ESG reporting may consist of Annual Reports, PRI Transparency Reports, voting statistics or updates on corporate engagement activities. All relevant Responsible Investment policies should be publicly available.
They have a longstanding expertise in RI or ESG ESG Expertise cannot be acquired overnight, but rather it requires a longer learning curve and the right resources. An asset manager that has been working on Responsible Investment (RI) and ESG policies and practices for a long time has had time to fully understand important nuances in this space. Their organization must live up to its values and demonstrate sustainability, including from a corporate social responsibility (CSR) standpoint. As an investor,
They actively seek change Change or impact creation is an important feature of ESG. Active ownership is a key approach to foster such change. It can take various forms, such as exercising voting rights as a shareholder or engaging with investee companies through field visits and active dialogue. It is generally regarded as one of the most effective mechanisms to reduce risks, enhance long-term returns and drive positive change. A true ESG asset manager “walks the talk” by getting out to the field in order to gain valuable insight into the companies.
you should take note of the organization’s long-term commitment and ESG milestones. They “walk the ESG talk” Regardless of your RI approach, make sure that your asset manager is truly integrating ESG into its investment processes. This begins with the allocation of resources: Is there an internal RI team? How large and experienced is it? Do they produce internal ratings or rely purely on, often flawed, external data? To what extent does ESG data influence investment decisions, and is it incorporated into
Nordea Asset Management is the functional name of the asset management business conducted by the legal entities Nordea Investment Funds S.A. and Nordea Investment Management AB (“the Legal Entities”) and their branches, subsidiaries and representative offices. This document is intended to provide the reader with information on Nordea’s specific capa-bilities. This document (or any views or opinions expressed in this document) does not amount to an investment advice nor does it constitute a recommendation to invest in any financial product, investment structure or instrument, to enter into or unwind any transaction or to participate in any particular trading strategy. This document is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instruments or to participate to any such trading strategy. Any such offering may be made only by an Offering Memorandum, or any similar contractual arrangement. This document may not be reproduced or circulated without prior permission. © The Legal Entities adherent to Nordea Asset Management and any of the Legal Entities’ branches, subsidiaries and/or representative offices.
...and more Write to PO Box 728 L-2017 Luxembourg Offices 10 rue des Gaulois, Luxembourg-Bonnevoie ISSN 2220-5535 Web www.maisonmoderne.com Founder and chairman Mike Koedinger CEO Richard Karacian Administrative and financial director Etienne Velasti
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CONTENTS Phone (+352) 20 70 70-150 Fax (+352) 29 66 19 E-mail news@delano.lu Publisher Richard Karacian Editorial director Matthieu Croissandeau Editor-in-chief Duncan Roberts (duncan.roberts@maisonmoderne.com) Desk editor Aaron Grunwald (aaron.grunwald@maisonmoderne.com) Journalists Jess Bauldry (jessica.bauldry@maisonmoderne.com) Natalie Gerhardstein (natalie.gerhardstein@maisonmoderne.com) Contributor Stephen Evans Photography Jan Hanrion, Lala La Photo, Patricia Pitsch, Mike Zenari, Matic Zorman Proofreading Lisa Cacciatore, Sarah Lambolez, Manon Méral, Elena Sebastiani, Katie Steiness
Didier Picard The Belgian national tells Delano why he founded Pick It Up Luxembourg. ↳ www.delano.lu/current-affairs
DESIGN Phone (+352) 20 70 70-200 Fax (+352) 27 62 12 62-84 E-mail agency@maisonmoderne.com Agency director Mathieu Mathelin Head of production Stéphanie Poras-Schwickerath Creative director Jeremy Leslie Head of art direction Vinzenz Hölzl Art director José Carsí Layout Oriane Pawlisiak (coordination) ADVERTISING Phone (+352) 20 70 70-300 Fax (+352) 26 29 66 20 E-mail regie@maisonmoderne.com Partner-director, advertising sales Francis Gasparotto (francis.gasparotto@maisonmoderne.com) Senior account manager Stéphanie Crégut (stephanie.cregut@maisonmoderne.com)
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In accordance with article 66 of the law of 08.06.2004 on the freedom of expression in the media: the company that publishes Delano is indirectly held, by a stake exceeding 25%, by Mike Koedinger, an independent editor registered in Luxembourg. Richard Karacian is chartered with daily management. Delano™ and Maison Moderne™ are trademarks used under licence by MM Publishing and Media S.A. © MM Publishing and Media S.A. (Luxembourg) NOTE TO OUR READERS Delano’s next print edition comes out 11 December. For daily news updates, commentary and our weekly what’s on guide, visit www.delano.lu. ERRATUM Due to an editing error, we misspelled the name of Claude Niedner, a partner at the law firm of Arendt & Medernach, in a picture caption in the September/ October 2019 edition. Our apologies.
FOR THE RECORD The agenda in our September/ October 2019 edition highlighted a planned speech by Claude Marx of the financial regulator CSSF at Step Benelux’s annual regional conference in October. After Delano went to press, Step Benelux was informed that Marx was not able to speak at the conference. Step Benelux requested that Delano clarify the fact that Marx did not figure on the conference’s final programme.
Karol Okrasa The award-winning chef talks Polish cuisine. ↳ www.delano.lu/lifestyle
More Delano
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The Journal Reporting on the community
NOVEMBER/DECEMBER 2019
Carrie Cannon is marking the 10th anniversary of the cancer support outfit Think Pink Luxembourg
Group in the pink
Think Pink Luxembourg’s very first event, back in 2009, “was without doubt so
much fun,” says Carrie Cannon. “We really weren’t sure what was going to happen there. And to see a school hall filled with pink and have such vibrant women all supporting us and urging us and supporting each other… I look back very, very fondly on that moment.” The “ladies night” that Cannon and her friends hosted was meant to be a one-off to support two women with breast and ovarian cancer. They ended up raising
€13,500 for a breast cancer charity, and decided to keep going. Since then, the group has raised €63,000 over three years for the Marian Aldred Award, which supported cancer research at Kirchberg hospital’s Laboratory for Molecular and Cellular Biology of Cancer. Starting this year, the award goes to a research scholarship for a master’s student at the Luxembourg Institute of Health, in a laboratory run by Dr Clément Thomas that is investigating ways to stop breast cancer from metastasising (where cancer spreads
through the body), which Cannon notes is often far deadlier than the primary tumor. In recent years, the group has changed focus from fundraising (aside from the Marian Aldred Award) to being a resource for the international community, says Cannon. For example, the group recently published the second edition of “The Think Pink Guide: Living in Luxembourg with Cancer”. The free book was “informed by women who had cancer in Luxembourg”, who shared what they “would have liked to know”, as few local resources are →
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Sustainable finance
↑ Carole Dieschbourg The Green party environment minister called on finance firms to help combat global warming during the Luxflag Sustainable Investment Week in October.
published in English (request a copy via the email address below). However, the “biggest impact”, Cannon reckons, is directly supporting women currently with cancer by providing practical information and by linking them with “women who’ve been there”. That gives people a chance “to be able to ask questions and develop friendships”. Cannon moved to Luxembourg in 1991 from the UK, where she earned a master’s in public health and was a school nurse, and she is still licensed to work in both countries. A longtime nurse at the International School of Luxembourg, Cannon moved to India two years ago, yet she remains involved in the grand duchy’s international community and plans to move back here. Cannon says the group is complimentary to other awareness and support outfits. Since they use English as their primary language, “we reach different people”. Plus, international residents may have distinct questions due to differences in treatment protocols and the health system in their home country. “We’ve had an awful lot of support from the community and that’s always so heartwarming, really. But it’s also interesting for some of the women who’ve helped us, who’ve volunteered, who’ve come along to our events, and then maybe another time have called me and said, ‘Carrie, I have cancer. Thank you, I know where to go and I know what to do.’” Think Pink Luxembourg is looking for volunteers, either to help run the small committee or to raise money by running the ING Night Marathon on 23 May 2020. × thinkpinklux@gmail.com
Think Pink Lux
ThinkPinkLux
words photo
Aaron Grunwald Patricia Pitsch/Maison Moderne
Peter Lion, author of the WWII history book “Merg”, seen at his home in Connecticut
The GI of Eschweiler In winter 2019, Luxembourg will play
host to several events marking the 75th anniversary of the Battle of the Bulge. Among those travelling from the US for the commemorations will be Peter Lion, a US filmmaker and writer whose new book, “Merg”, explores a forgotten character in this bitter WWII battle, George Mergenthaler. “Basically, there are families and generations of families around today who owe their existence to George,” Lion explained. “Merg” is the true story of the grandson of Ottmar Mergenthaler, a German mi-
grant who amassed a vast fortune from inventing the linotype machine, a hot metal typesetting system that revolutionised printing. When George was born, 21 years after the death of his grandfather from TB, “he was the only male heir to this vast fortune,” Lion explained. He enlisted in the army after the Japanese bombed Pearl Harbour and, after finishing his studies, found himself in the 28th cavalry reconnaissance squadron. He and his team were stationed in the town of Eschweiler in the north of Luxembourg for a month. →
The Journal
“The contribution of the financial sector is crucial.”
In numbers
Facts & figures about Luxembourg
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121,758
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BREXIT FINANCE
SENIORS LIVING
MOVES TO LUXEMBOURG
IN LUXEMBOURG
Fund firms and other financial companies
Roughly 20% of the grand duchy’s
have shifted operations ahead of Brexit.
population is aged 60 or over.
562
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BUILDING PERMITS ISSUED
FALLOW VINE PLOTS
Local councils authorised construction
7.2 hectares of vinicultural land
of 470 residential and 92 non-residential
in Luxembourg’s Moselle wine region is
buildings from January to March 2019.
currently unused.
In context
Abbaye de Neumünster, 17 October
↳ www.mergbook.com ↳ www.americanstnick.com
Grand Duke Henri presents the “Stand Speak Rise Up!” exhibition to King Philippe words
Jess Bauldry photo John Woike
Sources → New Financial think tank; Romain Schneider, agriculture minister; Statec
NOVEMBER/DECEMBER 2019
“Because George spoke German, he was able to speak to everyone and was immediately embraced,” said Lion. A daily church attendee, the local priest allowed Merg and another soldier to live at the presbytery. He even dressed up as a helper with a local dressed as St Nicholas, distributing sweets to local children. “Everybody loved this guy,” Lion explained. But after a month in the town, the Battle of the Bulge broke out. Eschweiler was surrounded by the German army and while fleeing, Mergenthaler and his colleagues drove into an ambush. “The driver was killed instantly. The others were pinned down and couldn’t move.” According to Lion’s research, Merg leaped into the Jeep and sprayed cover fire at the occupiers while his colleagues escaped. Many believed he died after being shot there. However, Lion has unearthed testimonies showing he was taken prisoner and shot during interrogation. His body was later found under a crudely constructed rock tomb. “The people of Eschweiler were heartbroken,” Lion said. They carried his body in a coffin through the town, reburied him in the cemetery next to the remains of the church, and notified his family. “The Mergenthalers were so moved, they offered […] to assist in the rebuilding of St Maurice Church.” The church still stands today and has a mural behind the altar, depicting Jesus feeding the masses with the help of an apostle dressed in an army uniform. The windows are also dedicated to Mergenthaler, his family and the US army. Lion began working on the book some ten years ago after hearing the story from Richard Brookins, the American GI who dressed as St Nick for the children of Wiltz during the winter of 1944. Lion immortalised this heart-warming story in the book “The American St Nick”, published in October 2015, which was adapted into a documentary by the WWII Foundation. Brookins, who returned to Wiltz almost annually for the St Nick celebrations, passed away in October 2018, aged 96. To mark the 75th anniversary, Lion published an updated version of this book with TFE Publishing. “Merg” is published in English by History Publishing Company. ×
and Queen Mathilde of Belgium.
Photo → SIP/Jean Christophe Verhaegen
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The Journal
For Janette Clemens, the “tipping point” nudging her to renounce her US citizenship was an interaction she had with her local bank
“My life is here” Janette Clemens, born in the United States to a German mother and American father,
has called Luxembourg home since 1986, after she visited her grandparents during a vacation and decided to stay. They ran a small café in Grevenmacher, where Clemens still lives today. “In the beginning, it was really hard because my grandmother only spoke Luxembourgish and German, but I only spoke English,” she said. Despite initial language barriers, the country made a good impression on her. “I couldn’t believe I could walk
around, even in the middle of the night, without worrying that anything would happen to me. As an American, you’re not used to that.” Today she’s fluent in Luxembourgish, has two children, two grandkids, and has been with her husband for over 30 years. Although she’s well-integrated, there was a transition phase. “I never had homesickness in the sense of hurting or crying, but there were things I missed.” That included “certain comforts”, such as longer opening hours, but over time she
has come to appreciate the differences. “I realised you have more quality time here.” She also praises Luxembourg’s social system and security. In 2014, realising “my life is here”, Clemens obtained Luxembourg citizenship, breezing through the language test and sitting through classes she calls “a waste of time”, saying she’d have preferred to learn less about contracts, more about political parties. For a few years, she held dual citizenship. “I would have kept my [American] citizenship if I didn’t have →
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NOVEMBER/DECEMBER 2019
problems with the bank here. That was the point when I said, I’m done.” Clemens, wanting to refinance, explained she had been refused at a new bank because she was a US citizen. “It’s so much paperwork they have to do to give information to the US,” she says. “If something’s wrong with that, the fines are high.” She’s referring to Fatca, the Foreign Account Tax Compliance Act, enacted in 2010 which requires foreign financial institutions to reveal certain account details about US citizens or face penalties. According to Forbes, the “laws can be a burden, especially for US persons living abroad. Their American status can make them untouchable by many banks.” Clemens started feeling “like a slave…. They say in America you’re free [but] I don’t know any other [citizens] having so many problems than Americans abroad.” US citizens also have to file taxes from abroad. The year Clemens renounced, she was one of over 5,000 Americans globally to do so. A US embassy in Luxembourg spokesperson said they processed “approximately 15 requests for certificates of loss of nationality, usually through renunciation, per year, without significant year-on-year variance over the last five years. These figures include persons of all nationalities who have made appointments at the US embassy in Luxembourg, including non-Luxembourgers who live in the grand duchy, as well as those who reside in other countries, particularly those in nations bordering Luxembourg.” Clemens wasn’t pleased that the fee to renounce had spiked 422% in 2014 to $2,350 (previously $450), making it the world’s highest. But the process was quick: she says it took mere months from the time she filed her paperwork to receive her certificate of loss of nationality. When she collected the document, she wasn’t invited back into the US embassy--it was passed to her by a representative from behind a glass security barrier--which, she says, left her with mixed feelings. “It was a feeling as long as you’re on our side, everything is okay. But it’s not about a side or not. It’s a decision I had to take to go on with my life.” ×
words photo
Natalie A. Gerhardstein Mike Zenari
Roger Behrend, president of the ALD, promoting diabetes awareness
Establishing good habits early When Roger Behrend was diagnosed with type 2 diabetes about 35 years ago,
it played a significant role in how he thought about his health for reasons that weren’t immediately apparent. “The fact that I have diabetes has helped me a lot with my health because I take more care of the foods that I eat and the things that I do,” he says. To get to such a point, however, took some adjustment. Behrend was taking medication for a decade after his diagnosis but found he was having trouble controlling his sugar levels. Eventually, his pancreas stopped producing insulin, so he had to switch from pills to injections. Although many struggle with shots, Behrend says a pill diet forces people to be even more careful with what they consume. “The insulin gives
you a bit more freedom. That’s my personal opinion.” Having dealt with the illness for so long, Behrend knows how his body reacts to certain foods. For example, while he can tolerate noodles, he has trouble eating pizza which requires him to take “8-9 units of insulin, so I don’t bother with it anymore”. For over 20 years, Behrend has been a member of the Association Luxembourgeoise du Diabète (ALD, or Luxembourg Diabetes Association), through which he was able to get advice and take courses on diabetes. This year, in which the ALD turns 40, he became president of the association. Among its other activities, the ALD manages the Maison du Diabète, where diabetics and their families can get advice on diets, testing, injections, and more. →
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According to Sylvie Paquet, managing director of the Maison du Diabète, there are an estimated 26,000 diabetics residing in Luxembourg, around 8-10% of which have type 1 diabetes. She says that at the time the centre was founded in 2003, it helped fill a gap, since there hadn’t been any specialised services in the hospitals. These days, she says, there’s a roughly 50-50 split of people who were sent by their doctors compared to those who visit on their own initiative. While Behrend has found a way to cope with his own diabetes, he says it’s extremely difficult for children. “I think children have a much more difficult process of coming to terms [in part] because of peer pressure.” Parquet adds that everyone handles diagnosis differently, but in the case of children, “it’s good when the parents can meet each other”, which is something the centre can help facilitate. Informational events
World Diabetes Day falls on 14 November each year, so it’s no surprise that the association holds or partners on a number of walks and conferences around the occasion. On the evening of the day itself, for example, a conference will be held at the Centre Hospitalier de Luxembourg focused on the seven points to better understand, prevent and treat diabetes. The team hopes diabetics will establish good habits early, as complications from diabetes can be severe, ranging from blood clots and nerve damage to increased chance of infection. “It’s a day-to-day sickness that you have to live with day to day,” Behrend says. “All the bad things that can happen to you, like problems with your eyes, kidneys, nerves, don’t show up until 20-30 years afterwards, but once they’re there, they’re there. As soon as you get a good structured daily life, as much as possible, the better.” × ↳ www.ald.lu
words photo
Natalie A. Gerhardstein Jan Hanrion/Maison Moderne
Meteorologist Luca Mathias says tornadoes occasionally occur in Luxembourg
Tracking tornadoes close to home On 9 August at around 5:20 p.m. a tornado
formed in Longwy, France, then crossed the border into Luxembourg, passing through the towns of Rodange, Lamadelaine, Pétange and Bascharage, before breaking up in Schouweiler about 30 minutes later. It was an F2 intensity tornado, which corresponds with wind speeds of 180km/h-250km/h. Nineteen people were injured, two severely, but no one was killed. Several hundred buildings were damaged. Although tornadoes are infrequent in the grand duchy, they are not entirely unknown either, according to Luca Mathias, a meteorologist at Meteolux. For example, there were confirmed tornadoes in 2012, 2014 and 2015, and separate suspected tornadoes in 2014 and 2015. All but one of these struck the northern half of Luxembourg (the exception being a tornado that
hit Munsbach in February 2015). Mathias is one of 25 meteorologists at Meteolux, which is part of the Air Navigation Administration. There is an average of 200 to 300 tornadoes in Europe each year, mostly (but not always) taking place between May and August, he states. They are more frequent in southern England, northwestern France, the Benelux countries, Germany and northern Italy (but can occur elsewhere). Between 1950 and 2013, tornadoes in Europe killed 316 people, injured more than 4,400 and caused about €1bn in damage. Strong European tornadoes are typically formed when colder northern air clashes with warm, humid air coming up from the Mediterranean. “An elementary ingredient for the formation of tornadoes is a strong vertical change of wind direc-
↳ www.meteolux.lu
words photo
Aaron Grunwald Mike Zenari
Fact file
15
Useful & random information about Luxembourg
There are about 50 castles in the grand duchy. Source: Luxembourg for Tourism
Luxembourg has the 8th fastest internet connections (although it was nearly half as slow as Singapore, the world leader). Source: Guinness Book of World Records
The Siege of Luxembourg, from 22 November 1794 to 7 June 1795, ended with Austrian forces surrendering the Fortress of Luxembourg to French revolutionary troops, and Luxembourg becoming France’s “Département des Forêts” (until 1814). Source: Information and Press Service
The Journal
tion and speed within the lowest 1km-3km of the atmosphere. These conditions were met this past summer when a low pressure system was centred near the British Isles,” he told Delano. The August tempest was a multi-vortex tornado, which means several smaller vortices intermittently formed around the main vortex. Although Mathias says the ‘smaller’ spirals can pack as much punch as the central vortex. Much about tornadoes remains a mystery to scientists (they are better studied in the US, he observes), however, they typically (but not always) dissipate when they are completely surrounded by heavy rain. The most severe damage was recorded in Pétange and Bascharage, says Mathias, himself a native of Bascharage (his home was undamaged). Debris from homes in those two towns, including personal documents like vaccination records, was recovered in Dippach and Reckange. If you pull out a map of southwestern Luxembourg, you’ll notice the tornado’s path roughly follows the regional road between Longwy and Luxembourg City. This is an unfortunate “coincidence” that has nothing to do with the area’s terrain, says Mathias. If the tornado had tracked just a bit to the north, the level of injuries and damage would have been significantly lower, he reckons. If a tornado strikes, “do not film it at the window,” Mathias advises. Go to a cellar, if you have one, or a closed-off room like a bathroom without windows. Above all, “do not go outside”. If driving, do not park your car under an overpass as “wind speed increases under bridges” and they are “very dangerous” spots. Try to drive away from the tornado or stay away as far as possible. Meteolux is currently developing its own app, complete with forecasts and weather warnings, with release targeted for 2021. Until then, its alerts are sent (in French and German) via email and through the media and government agencies. It will also publish a detailed report about the August tornado in English on its website in the coming months. ×
In my suitcase
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Expats share what they brought when they moved to Luxembourg Greek
NOVEMBER/DECEMBER 2019
Light, laughter and dance words
photos
Collages These collages were made by Balta’s architect mum. “I like the colours: the browns and ochre, they’re part of the traditional neoclassical Athens architecture,” Balta says. ↘
Jess Bauldry Mike Zenari
→ Shawl Balta’s mother bought her this handcrafted shawl in Nafplio, in the Peloponnese, last summer. “It was the first Greek capital when the Greek state was created. It has an old part, a famous castle and a lot of history. We go quite often in the summer. My mum bought it in a craft shop where they do old loom techniques.”
→ Unicorn hand puppet Balta received this children’s hand puppet in a secret Santa anony mous gift event at work. The twist in the game was that people who didn’t like their gifts could “steal” someone else’s. The puppet was “stolen”, but when the thief left Luxembourg, she gifted it back to Balta. “I really appreciated the fact that she remembered to do it before she left. It’s nice for friends to give gifts when they leave.”
KATERINA BALTA Katerina Balta has got used to living outside of her native Greece over the last decade. After growing up in Athens, she finished her schooling in Romania. She then studied politics, philosophy and economics at a UK university before taking a traineeship in Brussels and finally landing in Luxembourg in 2017. “Greeks are quite mobile,” she joked. She returns to Greece during the summer holidays. The well-earned escape contrasts to her busy life in Luxembourg, where the 27-year-old works as a research policy analyst in one of the EU institutions, a “principle-driven” job, which she loves. Eager to meet new people, Balta threw herself into the stand-up comedy scene when she first arrived. “Sometimes in Luxembourg, this corporate environment can feel a bit stale,” she said, explaining it’s nice to sometimes break the rules of political correctness. Today, she spends most of her free time doing swing dance. “It’s beautiful. I love the music and it’s a great way of socialising!”
← Turtle picture While in Brussels, Balta began learning Italian to speak to her Italian friends. This picture, translated as “I am a turtle”, shows a phrase that stuck in her memory. “It became my thing,” she says. When she left Brussels, her Italian friend made her the picture. “I have it in my office at work. It’s uplifting!”
→ Sweater Balta’s grandmother knitted her this sweater before she went to Brussels using woollen yarn bought in Greece. “Typically, a Greek grandmother asks ‘are you eating well?’ and ‘are you dressed for the weather?’. When it was done, she was super proud,” Balta says.
↑ Pebbles Balta picked up these pebbles from a beach in Loutraki, a one-hour drive from Athens. “We’ve a small summer house there. I usually spend summers with family there. These I collected in March 2012, before I moved to Luxembourg. They are like my family,” she explains. “I keep them on my desk at work. They are always with me.”
→
WHAT I REGRET LEAVING BEHIND The light “It’s something I notice every time I’m back, especially in Athens. There’s something about the intensity of the light. It makes everything look sharper […] It’s this feeling of being blinded but seeing clearly at the same time,” says Balta.
17
The Journal
← Book “The Life and Times of Alexis Zorbas” or shortened to Zorba the Greek, by writer Nikos Kazantzakis, was recommended by Balta’s Greek friends. Unable to find a copy in Athens bookstores, she is reading her mother’s old, leather-bound copy, written in the polytonic system, which contains more diacritics than the modern simplified system in modern Greek.
Community Spotlight
18
Meet the people who add zest to life in Luxembourg
Canadians
Canucks breaking the ice NOVEMBER/DECEMBER 2019
W
hen Karen Wauters landed in Luxembourg for the first time in 1989, the view from her aircraft window of hay bales and livestock was like a glimpse of home. While it reminded her of the small farming community in Alberta where she grew up, the chartered accountant realised that the country was still shy of the progressive and diverse workplace standards she’d experienced. “In hindsight, I could have been more aggressive,” she says of her career which, after a successful start in Canada and London, slowed upon her arrival to Luxembourg. After achieving the Luxembourg designation, Wauters became one of the first women partners at the consulting firm EY, then a small expat office where she relished the opportunity to mentor others. “Being able to help
people realise their full potential, that’s where my passion is and it’s what makes me tick,” she said. Since then, the country’s population has grown increasingly multicultural, a mix she can relate to in her grandparents, who are an all-sorts bag of European migrants, spanning Belgium, Poland and the Crimea. Today, Wauters says she keeps one foot in each country, thanks to her four children, who attended Luxembourg schools, her job today as an independent director, but also her passion for connecting people and boosting inclusion through her various hobbies. “I’m a Luxembourg curler, which is important for me.” She says that while curling is widely played in Canada, that’s not why she chose this sport. “It’s very representative of what I believe in because it’s an inclusive sport. […] It’s like a →
↑
KAREN WAUTERS A Luxembourg resident of 30 years, Karen Wauters is a keen curler and serves on the board of Time for Equality, not-for-profit promoting inclusion, equality and social justice. ↳ www.timeforequality.org ↳ www.curling.lu
←
FRANÇOIS LÉGARÉ
↳ www.host.lu
big family. Its values are what drive me.” Wauters is currently working with Lunex University to develop the sport in schools and also hopes to train a team for the 2022 Winter Beijing Paralympics. She is similarly deeply committed to educational not-for-profit Time for Equality, which she joined in 2016. In June, it hosted an event sharing the empowering stories of indigenous women in Canada, who have overcome centuries of violence and marginalisation. And earlier in the year, the team organised an awareness-raising event ahead of the European elections. Voting is personally important for Wauters, who, until the rules changed in October this year, had only once voted in the Canadian elections. She has never lost sight of her roots and for the past five years has spent her summers in Waterton Lakes National Park, working at the social
impact shop her sister founded in 2014 to support local craftspeople and causes. “It was my way of angel investing, not directly, but by giving small independents floor space they wouldn’t get otherwise.” Like Wauters, François Légaré loves to build bridges and bring people together. For regulars at startup networking events, his is a familiar face but not only because he works for the Luxembourg House of Startups. “When I left Montreal for Luxembourg, instead of starting work, I went to the University of Luxembourg and did a master’s in entrepreneurship and innovation […] It was quite cool to build my network that way.” Légaré jokes that his distinctive French-Canadian accent also helps to break the ice at networking events. “Maybe not that many people think of me as François, but more as the French Canadian,” he laughs.
WHERE TO MEET CANADIANS CANADIANS IN LUXEMBOURG This Facebook group is home of the Canadian Club in Luxembourg, which organises events.
CANADIAN EMBASSY TO BELGIUM AND LUXEMBOURG 58 avenue des Arts,
↳ www.icehockey.lu
B-1000 Brussels, Belgium +32 2 741 0611 bru@international.gc.ca ↳ www.canadainternational.gc.ca
CANADIAN STAND AT THE BAZAR INTERNATIONAL Hosted at Luxexpo from 30 November to 1 December. ↳ www.bazar-international.lu
photos
Jess Bauldry Mike Zenari
DID YOU KNOW? LUXEMBOURG ICE HOCKEY FEDERATION Watch Luxembourg’s ice hockey clubs Tornado, Beaufort, Puckers and Huskies (U20s) not to mention the national team, in action when they play in Luxembourg this season.
Canadians in Luxembourg
words
Canuck is the slang term for a Canadian. There were 550 Canadians registered as living in Luxembourg, as of 1 January 2019. That number does not include Canadians with multiple nationalities. Luxembourg could fit inside Canada 3,859 times.
19
The Journal
A keen ice hockey fan, François Légaré moved to Luxembourg in 2017 for his wife’s job. He completed a master’s at the University of Luxembourg and today works at the House of Startups.
Légaré was raised in an entrepreneurial family--his parents ran a printing business in their small Quebec village alongside their regular jobs. Prior to moving to Luxembourg, he worked in the Montreal startup ecosystem and Légaré is teeming with ideas for starting businesses. But it’s not just his family, clearly entrepreneurship is contagious in his home province. Légaré cites the Quebecois fingerprint in Las Vegas, for example at the Cirque du Soleil, and the now global multimedia organisation Moment Factory. One cannot yet say the same about Luxembourg, which still lags behind when it comes to mindsets. “I think the startup community in Quebec is pretty good at getting rid of the stigma of companies failing […] Now, entrepreneurs are more celebrated even if they fail […] Luxembourg needs to work on this area, to encourage startups.” Outside of work, Légaré has been impressed with the ease of travel across borders in Europe--each month, he rents a “European car” to explore new places. If he misses wild camping, he has plenty of other touchstones with home. “Sometimes, I wake up in the middle of the night to watch ice hockey!” he grins. A lifelong supporter of the Montreal Canadiens, he was looking forward to the start of a new season in October. “We’ve a pretty good team.” ×
Snapshots
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Highlights from the international community and networking events
Touching tradition
1
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Kick Cancer Into Touch hosted its NOVEMBER/DECEMBER 2019
18th annual cancer care fundraiser, 22 September. The touch rugby tournament garnered €3,000 for Omega Haus, a hospice. KickCancer IntoTouch 2
photos 4
Matic Zorman 1 Joe Lister, Amy Hughes, Christine Dahm, Stephan Dahm, Inna Marx and Mark Hughes 2 Remi, Marina and Sophie 3 Ana and Tasha 4 Carlos and Nick 5 Aleesia and James 6 Lorenzo and Cecile with Norton the dog
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Find more events Check Delano’s digital agenda for the latest happenings: ↳ www.delano.lu/agenda
Natalie Rada Meryl Kearns, AWCL president (speaking) 4 Delano’s Aaron Grunwald and Natalie A. Gerhardstein speak with club members 1
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AWCL talks integration Members of the American Women’s acclimating to life in the grand duchy at a roundtable with Delano journalists, 23 October. ↳ www.awcluxembourg.com
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photos 4
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Luxembourg-based filmmaker Liam McEvoy picked up the audience award for “The Spirit of the Game” at the British and Irish Film Season awards ceremony, 22 September. British & Irish Film Festival Luxembourg
photos 1
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Matic Zorman 1 US ambassador Randy Evans and his wife Linda joined UK ambassador John Marshall to watch “Downton Abbey” 2 Geoff Thompson with festival volunteers 3 Skerdi and Jugera Ibrahimi (on left) 4 The press jury handed the Critics’ Award to Paddy Breathnach’s “Rosie”
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Patricia Pitsch/Maison Moderne
The Journal
Club of Luxembourg discussed
Local director wins BIFS prize
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Green finance
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Investors can be environmentally responsible without taking a financial hit, attendees heard during Luxflag Sustainable Investment Week, 22 October. ↳ www.luxflag.org
NOVEMBER/DECEMBER 2019
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photos 4
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Patricia Pitsch/Maison Moderne 5
Frédéric Brodach Thomas Seale 3 Sachin Vankalas of Luxflag 4 Carole Dieschbourg, the Green party environment minister 5 Denise Voss, chair of Luxflag 6 Saurabh Sharma of Fidelity International 7 Chloé Sauvage and Herwig Temmerman 8 Jane Wilkinson 1
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Une Envie, Un Poll-Fabaire
www.poll-fabaire.lu
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1 Olivier Carré and Viktor Fischer 2 François-Kim Hugé and Benjamin Rossignon 3 Mue I and Shigeji Suzuki, Japanese ambassador 4 Pierre Gramegna, the DP finance minister, and Corinne Lamesch, Alfi chair, on stage
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NOVEMBER/DECEMBER 2019
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Focused on funds This is no time to rest on the
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sector’s laurels, with factors like fintech and sustainable finance changing the investment sector, attendees heard during the Association of the Luxembourg Fund Industry’s Global Distribution Conference, 24 September. ↳ www.alfi.lu
photos
Lala La Photo
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Value investing Léon Kirch of European Capital Partners spoke on how investing has changed in today’s zero interest rate environment 1 Delano’s Duncan Roberts (speaking) 2 Olivier Terras 3 Léon Kirch 4 Fleur Marchal
at the Delano Breakfast Talk, 3
4
24 September. ↳ www.delano.lu
photos
Jan Hanrion/Maison Moderne
rainy days Festival de musiques nouvelles Philharmonie Luxembourg 22.11.–01.12.2019 rainydays.lu
less is more
Premieres and new works by Joanna Bailie, Georg Friedrich Haas, Philippe Leroux, Fabien Lévy, Misato Mochizuki, Chikako Morishita, Alexander Müllenbach, Hilda Paredes, Albena Petrovic, Enno Poppe, Steve Reich & Gerhard Richter & Corinna Belz, Eva Reiter, Georgia Rodgers, Nika Schmitt, Manos Tsangaris and others With Apartment House, ARS Nova Lux, Ensemble intercontemporain, Klangforum Wien, Mivos Quartet, Noise Watchers, Orchestre national de Metz, Orchestre Philharmonique du Luxembourg, Percussion Under Construction, Les Percussions de Strasbourg, United Instruments of Lucilin, Séverine Ballon, Hanna Hartman, Anne-Maria & Florian Hölscher, George Jackson, Pascal Meyer, Phill Niblock, Xenia Pestova, David Reiland, Christoph Sietzen, Sarah Maria Sun, Ilan Volkov and others Exclusive automobile partner Media partner With kind support by
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Bonding for Rwanda
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Femmes Développement, which aids widows and orphans in Rwanda, hosted a James Bond-themed fundraising gala, 17 October. NOVEMBER/DECEMBER 2019
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Femmes Developpement A.S.B.L
photos
Nicole and Janine 2 Jean Doernet, Georges and Zinda Krieger, and Daniel Greven 3 Frank Roessig, Léa Sitbon, Gabriel Boisante and Magaly Carroll 4 Femmes Développement co-founder Luisella Moreschi 5 Joao Varandas, Alison Pierre, Jean-Marc Want and Heloise Pierre 6 The team from Institut de beauté Mary’Anna pose next to an Aston Martin 1
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Matic Zorman
The international community meets for real conversation
→ Members are invited to join the Club and Delano teams and their guests. Registration required at club.paperjam.lu
INTERVIEWS
NEW EDITION
NETWORKING
Take the opportunity to see live content. 20 minutes of onstage interviews in English.
Discover the new print magazine a day before its official release.
Enjoy a fun and friendly evening. Bar service with quality guests. Be sure not to miss it!
VENUE Knokke Out (15 Rives de Clausen, Luxembourg)
ORGANISED BY
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ADVERTORIAL
Use your assets to create a better future. INTERVIEW
Raoul Stefanetti from BIL
How can investors manage their assets,
to help the client make the right decisions in the short or longer term, based on their current position and potential future income.
How do your services stand out from the competition?
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the client and understand their assets
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„Our aim is to be there for our clients in the long term and our support often continues from one generation to the next. My clients include three generations of the same family and I know them all personally.”
advisers to find the right solution for you. This is where Private Banking comes in,
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To build this type of special relationship,
as Raoul Stefanetti explains.
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trust is an essential component of our
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Banque Internationale à Luxembourg SA, 69 route d’Esch, L-2953 Luxembourg, RCS Luxembourg B-6307 – 2459-5900 www.bil.com/private-banking
Naturally, all our staff must also have
on for anything related to their finances
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and able to listen and empathise.
to ensure they can sift through the reams This continuity from generation to generation
of – not always reliable – information
is also due in large part to our ability to
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even a robot, can take the place of our
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come to expect more from us. We’ve adapted
tailored solutions. For us at BIL, people
often continues from one generation
in response: not only do we have a strong
always come first.
to the next. My clients include three
online presence where we share as much
generations of the same family and I know
relevant information as possible (especially
them all personally. In a way, I’ve become
here: my-life.lu), but we’ve also expanded
Raoul Stefanetti,
a family confidant: someone they can rely
the remit of our Relationship Managers.
Head of Private Banking Luxembourg
Does this special relationship apply across the generations?
Together for you Use your assets to create a better future. Having built your assets based on your priorities and values, you require unique banking solutions that are tailored to your needs. BIL Private Banking works with you so that you can support your loved ones.
Our Private Banking centres in Luxembourg Esch-sur-Alzette
Ettelbruck
Luxembourg-Ville (Headquarter)
November 2019
30
NOVEMBER/DECEMBER 2019
31
Cover story
1. The new guardians 2. How dangerous is Luxembourg?
32
The new guardians
NOVEMBER/DECEMBER 2019
In offices, shops and even libraries--security systems and agents have quietly become ever more present in our daily lives than 15 years ago. Delano examines the growth and transformation of the private security sector in Luxembourg. words
photos
Jess Bauldry Patricia Pitsch/Maison Moderne
“We saw there was a large demand for hospitality and we have a lot of clients requesting this kind of service.” Christian Pierar CEO, G4S Security Solutions →
W
hat do butlers and security agents have in common? It sounds like the start of a bad joke, but for G4S Security, which sent its Belgian security agents to butler school, recognising the similarities between the two roles is simply good business sense. “We saw there was a large demand for hospitality and we have a lot of clients requesting this kind of service,” G4S Luxembourg CEO Christian Pierar told Delano. The ability to greet people cordially and efficiently and carry out a range of tasks is today highly sought after for agents working in shopping centres, at reception desks or in large companies. “Because every time a customer of our customer comes into contact with an agent, he becomes an ambassador, not just for G4S, but for our customer.” How did we get here?
The role of security agents has come a long way since the 1990s. Luxembourg, with its banks and EU institutions, for years had a disproportionately high number of security personnel to population. In 1996, when there were 800 security agents, it had the third highest proportion of private security personnel per 100,000 inhabitants in the EU at 201[1]. Across the EU, the total number of active agents doubled from 1999 to 2004-2005. By then, in Luxembourg they had exceeded police, with a ratio of 1.4 agents to every officer[2]. Academics suggest that an increased security presence is the fall-out of a globalised world, creating new uncertainties in which fear of crime flourishes. “The vitality of modern life goes hand in hand with an obsessive desire for protection. This paradoxical situation creates an optimal circumstance within which security industries will proliferate,” Ronald van Steden and Rick Sarre wrote in a 2010 academic article[2]. These fears were “further inflamed” by the September 11, 2001 terrorist attacks, van Steden and Sarre write. But it hasn’t all been scaremongering. The nature of activities of employers like the Court of Justice of the European Union, predisposed them to a greater need for security, to protect judges and the process of law. And crime too has risen, although not on a scale one might imagine. In 2005, there were 17,247 property offences compared with 22,915 in 2018 (see box on page 37). Offences against people saw the strongest increase, more than doubling from 3,572 to 7,216, driven largely by a doubling of assaults and threats against people (1,766 to 3,494, and 641 to 1,342 respectively[3]). Managing people
And then there is Luxembourg’s population explosion. Resident numbers increased by over 174,000 from 2001 to 2019, while cross-border worker numbers rose from 121,046 at the end of 2005 to 202,261 in August 2019. A larger population requires more homes and offices, leading to greater construction and, subsequently, more building sites to monitor. Alongside this evolution, the role of B2B security agents has undergone a massive redefinition, expanding beyond the role of deterrent to an outside threat, to handling all the needs that come with managing people inside buildings. →
33 Security activities in Luxembourg
The number of firms providing security guards has remained roughly steady in recent years. Official reports indicate that these outfits’ revenue and number of employees are “confidential”. Concurrently, the number of companies providing alarm and surveillance systems more than doubled between 2009 and 2016, with turnover and headcount more than tripling.
Cover story
Private security guard services
Security systems services
45
45
€8m
40
40
€7m
35
35
30
30
25
25
20
20
15
15
10
10
5
5
€6m €5m
Source → Statec
€4m €3m €2m €1m 0€
0
0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Number of enterprises
Number of enterprises
Turnover
Most concerning issues
EU residents are generally much less worried about physical threats than pocketbook pitfalls, and even more so in the grand duchy. An EU public opinion poll fielded in June 2019 asked residents to rank the “two most important issues facing the country at the moment”. Luxembourg inhabitants were 20 times more concerned about the cost of housing than about crime or terrorism.
Belgium
France
Germany
Ireland
Luxembourg
Netherlands
Terrorism
Taxation
Government debt
Crime
Education system
Housing
Pensions
Economic situation
Immigration
Environment, climate & energy issues
Health & social security
Rising prices/inflation/ cost of living
EU28 Unemployment
Source → Eurobarometer, Spring 2019
UK
→
250
200
NOVEMBER/DECEMBER 2019
150
100
50
0 2016
2017
2018
2019 (1 August)
Top 3 security employers
How many private security agents work for three of the biggest providers in Luxembourg.
950
G4S Security Solutions
820
Securitas
Strong demand
Dussmann Security
740
Security agents in Luxembourg
Over 20 years, the number of agents in Luxembourg quadrupled. Meanwhile, the number of guards per resident progressively increased.
4,000
1/1
3,500
1/100
3,000
1/200
2,500
1/300
2,000
1/400
1,500
1/500
1,000
1/600
500
1/700
0
1/800 1996
2004
2010
2015
Security agents Security force/population
2019
According to Bostelle, Luxembourg saw a spike in demand for agents around 2012 to 2013. Since then, growth has been moderate, with between 150 and 200 new private security agent posts advertised per year at job centre Adem. Today there are around 4,000 active agents in Luxembourg, according to trade union LCGB. But, like many sectors, the industry struggles to find enough candidates to meet demand. “Here it’s difficult because employers often ask for security agents with experience,” Bostelle says. In addition, they need soft skills, often a driving licence, languages and a willingness to work anti- social hours. Women agents are especially in high demand, as are those with specific skill sets like dog handling. Anecdotally, a large number of agents are recruited from the border regions of France and Belgium (French being the main language of the sector). Some employers, like G4S, recruit agents with a military or police background. But, as demand grows in neighbouring countries, there is only a finite supply of these profiles. Education and career
Attention therefore is paid to developing a stream of younger candidates. One trainer-employer in Luxembourg has gone as far as teaching a security agent stream at a high school in Belgium. But not all young candidates drawn to private security will stick it out. Bostelle explains: “We get people who are 18, candidates who don’t want to finish school, who come and see if security could work for them. When we explain, sometimes they’re disappointed because we tell the truth. It’s not like in the film ‘The Bodyguard’.” Offering minimum wage and limited career prospects, a shake-up of the industry to make it more attractive is well overdue. There are hopes that a raft of new measures contained in a new collective
Source → Adem
Adem job postings for private security roles.
“We began preaching the profession in 2010,” JeanClaude Bostelle, trainer for Safety Serv, explains. In a nod to the evolution of the role, the Frenchman no longer uses the moniker “security guard”, preferring “agent” to describe the kind of multifaceted role required of them today. “For example, in a supermarket, you have to know how to help a person,” he says, explaining first aid knowledge is critical, as is knowing conflict management. Firearms use is not taught in entry stage training. “In other parts of training, we teach them good reflexes, like how to use fire extinguishers and evacuate buildings.” The profession is better established in France than in Luxembourg, largely thanks to formalised training, he says. “For example, there’s an exam with a panel of judges. And you are obliged to have a professional card. That doesn’t exist in Luxembourg.” Luxembourg’s private security legislation is encapsulated in two regulations dating back to 2002 and 2003. To start operating private security and surveillance activities, firms need government accreditation, which must be renewed every five years. The law states as the minimum requirement that agents be aged over 18 and have a clean criminal record. While other criteria apply for specialist agents and those carrying firearms.
Source → Companies
Help wanted
Source → "The Private Security Industry in International Perspective", Jaap de Waard ; "Panoramic Overview of Private Security Industry in the 25 member states of the European Union", Morré L; Confederation of European Security Services; LCGB; Statec; Delano calculation
34
“Security has made a huge step forward and it’s a lot more accessible for most of our customers.” Gilbert Reyland Director, Securitec →
Where do they work?
If the Hollywood image of the modern security agent is far from the reality, some would argue the role is getting more interesting. In addition to the agents watching shop customers, checking bags and monitoring screens in control centres, we now have agent-receptionists in offices. Some, like those required by rail operator CFL, are exposed to the elements and potential altercations. CFL outsources its security requirements to Dussmann, whose agents work 3,000 shifts per year. They have two agents on a tenth of trains and patrols in selected stations. According to CFL’s Sandy Nonnweiler, the central station has a minimum of three agents working 24/7. This physical presence, coupled with 424 surveillance cameras in stations and 1,240 cameras on trains, sets CFL back €3m annually--an investment it considers essential for protecting the growing number of passengers and deterring would-be criminals. “We had a 70% increase in the number of passengers over 15 years,” she says. “Because of this, and to give the feeling of security and safety, we added these kinds of solutions.” Airport security
One of the biggest employers of security agents is Lux-Airport, whose 200 full-time agents make up two-thirds of its total workforce. It supplements this pool during peak times with temporary agency staff. “It [security] belongs to aviation, if you want to travel, you want to fly safely,” Lux-Airport CEO René Steinhaus says. Few bat an eyelid at encountering security in an airport. But what has changed is the expectation on agents. “For us, it’s also kind of the business card of the airport,” Steinhaus says. Recruiting the kind of staff who can diffuse passenger stress and speak four or more languages is not easy and much of the time they recruit permanent staff from the experienced pool of agents at companies like G4S. The airport is among the exceptions when it comes to having in-house agents. Most firms requiring 24/7 security coverage today outsource the activity, along with other facility needs like cleaning and catering. “There are fewer and fewer companies organising their own security activities,” says Alain Borguet, who runs facility management confederation Facility Luxembourg. “You have to be sure that the activity is covered. If you organise it yourself, you’ve a human risk: people might not be there for a lot of reasons.” →
HOME SECURITY The national crime prevention team conducts up to 300 free home visits per year to assess and advise on home security systems. Private residents can also request occasional police monitoring of their homes while away on holiday as part of the “départ en vacances” service. According to chief commissioner Marc Ragnacci, the majority of burglars enter a home using a screwdriver to break the glass and then reaching a hand to open the window. ↳ prevention@police.etat.lu
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Cover story
labour agreement signed in August 2019 will help. It comprises a combination of job-related bonuses, an incremental payrise and the obligation for employers to invest the equivalent of 1% of their salaries budget in training. Pierar, who has already revamped his firm’s training to focus on creating agent career trajectories, welcomes the measures. “If I can create a roadmap for staff internally, I won’t have to look for people constantly,” he says. G4S is already invested in upskilling agents to meet the ever-changing demands placed on them, in areas like using mobile phone-scrambling devices and even drone technology, an expertise which can be shared with other players starting in 2020, when G4S Luxembourg opens its education centre to outside parties.
GOVERNMENT ADVICE
US ↓
What foreign authorities tell travellers to Luxembourg about crime, terrorism and road safety.
“There is minimal risk from terrorism in Luxembourg.” “While there are no known indigenous terrorist organizations operating in Luxembourg, the country shares regional concerns with its neighbors: France, Belgium, and Germany. All three of these countries experienced terrorist attacks and major terrorismrelated arrests in recent years, with several arrests occurring only miles from the Luxembourg border. A few Luxembourgish citizens have traveled to Syria and Iraq in support of ISIS. While support for ISIS and other violent ideological groups remains extremely isolated, especially when contrasted with its neighbors, it does exist.”
NOVEMBER/DECEMBER 2019
Canada ↓
“Traffic congestion in urban areas can be a problem... If your vehicle has been hit and you feel your personal safety is at risk, do not leave your vehicle. Call the police or drive immediately to the nearest police station.”
Ireland ↓
“Crime remains relatively low in Luxembourg, but you should take sensible precautions.”
UK ↓
“Foreign visitors and residents can be targeted by scam artists. These can cause great financial loss.”
France ↓
“The transport networks between Luxembourg and neighbouring countries are crowded during the morning and evening commutes. Every day, accidents are recorded on the motorways from France, Belgium and Germany, taken by 200,000 cross-border workers converging on Luxembourg City. Be particularly careful when driving on these routes.”
“Violent crime isn’t common in Luxembourg cities, but incidents of burglaries are on the increase.” “Pickpockets operate on buses and in train stations, particularly the Luxembourg Gare (main train station). Be aware of your immediate surroundings, keep your bags within sight, and avoid displaying high-value items.”
New Zealand ↓
“There is an underlying threat of terrorism in Luxembourg. Terrorist groups, including those based in Syria and Iraq, have made threats to conduct attacks across Europe.”
Source → Government websites
36
37
New players
Criminal activity
Total crimes 3,000
2,500
2,000
1,500
1,000
Security systems
Greater means
If demand for security systems in private homes is slowing in Luxembourg, it still remains stronger than in Germany, suggests chief commissioner for national crime prevention Marc Ragnacci. “I think we have the means to install security systems in Luxembourg that often people in France, Belgium and Germany don’t have,” the commissioner says. Luxembourg has the highest minimum wage in Europe. According to Ragnacci, a home alarm system can cost from €2,500 to €5,000. “I spoke to an installer in Germany who said the alarms there were more expensive than here. Here, anyone can install an alarm.” →
500
0 2011
2012
2013
2014
2015
2016
Property offenses
2017
2018
Other crimes
Offenses against persons
Homicides 120
100
80
60
40
20
0 2011
2012
2013
2014
2015
2016
2017
2018
Attempted murders Premidated and voluntary homicides
Source → Grand Ducal Police, 2012-2018 annual reports; figures as listed
Where there is physical security, there are security systems such as surveillance cameras and alarms. While these have long been a feature of commercial buildings, in Luxembourg there has been a growth in B2C security systems in recent years, largely thanks to new innovation. B2C made up a large proportion of the early customer base of Securitec when it was founded in 2010. “With fast wireless internet and smart devices, security has made a huge step forward and it’s a lot more accessible for most of our customers,” Securitec director Gilbert Reyland says. “Wireless has become a lot more effective and so it’s now possible to install systems in a matter of hours.” The revolution has not always driven down prices--Reyland explains power hungry devices like cameras need to be connected to the mains supply, as opposed to being battery-powered. Wifi may also not be effective in larger buildings. In some instances, installations require cabling, which can add thousands onto the bill. Security growth has helped Securitec expand its team to 30. It installs some 500 systems per year, but Reyland suggests the sector is plateauing. “What works in our favour is there are always more residents, who build and need security,” he says. “But, it’s not enormous growth. In general, we’ve 12,000 more residents per year. It is a lot for a small country, but it’s divided up among installers.”
Personnel 3,000
2,500
2,000
1,500
1,000
500
0 2011
2012
2013
2014
Civilian staff
2015
2016
2017
2018
Police officers
Cover story
The total number of crimes committed in Luxembourg held more or less steady between 2011 and 2018, despite population growth of 17.5% and a 25% increase in the country’s workforce during the same period. That means the overall crime rate has been falling. However, some offences, notably thefts and public drunkenness, have risen notably.
Demand for outsourced services has resulted in the rise of facility multifunctioning services firms like Dussmann, a quarter of whose 3,380-strong workforce is active in security. G4S, which employs 950 agents in Luxembourg, is already working in partnership with facility managers Apleona for its security contracts. “As long as there are companies still coming in, it means there’s still a market,” says Pierar. But it is getting tougher. Luxembourg’s competitive market has kept security costs low until now. Yet, as employers are obliged to invest more in training and salaries, margins are shrinking. Pierar is confident, however, that the customers will accept paying more to ensure a high-quality service. “We’re anticipating that there will be some kind of resistance [with clients], but there will be a breakthrough.”
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NOVEMBER/DECEMBER 2019
“There are fewer and fewer companies organising their own security activities.”
And it’s not just because they can that people do install security systems in the home--devices became more popular as awareness of risk grew, the commissioner explained. “People are focusing more on prevention because it’s talked about more over social media.” What is more, in his view, security systems are an effective deterrent--the commissioner credits the stabilising of burglary numbers and the increase in aborted break-in attempts to greater vigilance and take-up of home security systems. Incentives
Alain Borguet
If the cost of installing a home security system is comparable to that of a holiday for some, it remains a luxury for low-income households. And there are few incentives to change that. In some countries, insurance firms offer discounts on home insurance if policy holders install private security systems. This is not the case for Baloise and Foyer, the two Luxembourg insurers Delano contacted. State subsidies for home security systems, similar to those currently offered for energy saving measures, could offer a possible incentive. This is something that Ragnacci and other industry players are pushing for. It could also help encourage the adoption of a national industry certification requirement for systems, as is the case in France, Germany and Belgium. Currently, Luxembourg relies on European norms which, according to Reyland, are vague. Subsidies could also make installation of security measures a standard for housing under construction, a consideration which is often overlooked, Ragnacci laments.
Founder, Facility Luxembourg →
And the future?
If the private security sector has experienced a major technological revolution, Reyland suggests in future we will see an evolution of existing technology, for instance by integrating security systems into smart homes. It seems unlikely that technology will fully replace the human factor in security any time soon. Even state-of-the-art AI surveillance system Deep Sentinel, which claims to detect potential threats caught on camera, still requires human assessment of findings. “If you look in commercial settings like malls, or the airport, people still need human help to tell them to raise your right arm,” Pierar says. “They [security systems and agents] have to go hand in hand.” But for agents to remain a part of the sector, the profession needs to evolve. Pierar says one important factor that could help would be to ensure future training qualifications are pegged to the European Qualification Framework. Marc Kieffer of the industry confederation Fedil adds that further improvements should also be made for the conditions of agents not covered in the collective labour agreement, such as those working at one-off events. ×
12 As of 16 April 2019, there were 12 firms active in site monitoring in Luxembourg and 17 in people protection.[4]
4,000 The number of security agents active in Luxembourg in 2019.[5]
[1] “The Private Security Industry in International Perspective”, Jaap De Waard, European Journal on Criminal Policy and Research, January 1999. [2] “The tragic quality of contract guards: a discussion of the reach and theory of private security in the world today”, Ronald van Steden and Rick Sarre, The Journal of Criminal Justice Research, Volume I, Number 1. [3] Luxembourg Police. [4] Justice ministry. [5] LCGB.
VER DISCO RY : STO THEIR .lu vos ry.eno mysto
We give you the energy You write the story
Luxembourg energy provider
enovos.lu
40
How dangerous is Luxembourg?
NOVEMBER/DECEMBER 2019
The country’s crime rate is falling, its population is relatively healthy and unprone to accidents, and faces a low risk of natural disaster and terrorist attack. Still, there’s always a chance of bad things happening. interview
Aaron Grunwald
Death rate in Europe
Luxembourg had the fifth lowest number of total deaths per 100,000 inhabitants among EU member states in 2016. Switzerland Spain France Italy Malta Liechtenstein Norway Luxembourg Sweden Austria Iceland Greece Belgium Cyprus Finland Netherlands Ireland UK EU28 Portugal Slovenia Denmark Germany Turkey Estonia Czech Rep. Poland Slovakia Croatia Hungary
Source → Eurostat
Lithuania Romania Latvia Serbia Bulgaria 0
500
1,000
1,500
2,000
H
41
ow much of a chance of misfortune striking and a risk of what, exactly? First, Delano examined national and EU statistics (see charts on previous and following pages). Then, to gain an international view, we spoke with Ben Plane, an intelligence analyst at WorldAware, a risk management and crisis response outfit that works for multinational organisations with staff based and travelling globally. Plane covers western Europe out of the US firm’s London office.
Fatal and nonfatal accidents at work
From your perspective, what are the principal risks for people traveling to and living in, and businesses operating in, the Grand Duchy of Luxembourg? aaron grunwald
As with other low-threat destinations in western Europe, petty crime, such as theft, is the primary security threat faced by both travellers to and residents of Luxembourg. These types of criminals tend to target individuals who appear inattentive or unfamiliar with the area, and as such operate in crowded areas frequented by tourists; as a result, the Quartier Gare area around the central rail station is often referenced as a petty crime hotspot. However, as these crimes are opportunistic in nature and can be easily mitigated by taking basic security precautions, the threat for most people is low. Financial and cyber criminals are likely to see Luxembourg as an attractive target due to the number of high value companies operating in the country, therefore business in Luxembourg should always remain cognisant of threats from sophisticated fraud operations and similar crimes. ben plane
1.8 2.74 0.96
1,950.91
2.74
702.61
6.32
2,055.41
0.5
1,134
0.8
721.87 1,570.84
Germany
3,458.28
France
1,990.4
Belgium
1.69
Fatal accidents Nonfatal accidents at work at work
How does Luxembourg compare to its neighbouring countries and the rest of western Europe in terms of stability and security?
Ireland
Luxembourg
Netherlands
UK
Source → Eurostat
Security threats in Luxembourg are typical of those faced in other countries in the region, though reduced in all regards due to the nation’s relative size and prosperity. Higher than average per capita income, for example, provides some insulation from shocks to the international financial system, and the greater wealth also allows better funding for public services. This coupled with a lower population than its neighbours allows for more effective allocation of public resources, such as law enforcement and health, and acts to reduce crime and limit potentially destabilising sociopolitical issues. Similarly, terrorism is a regionwide issue and transnational Islamist extremist groups have carried out attacks in Luxembourg’s three direct neighbours in recent years. As a Nato and EU member, these armed extremist groups are unlikely to distinguish between Luxembourg and France, for example, though Luxembourg may be lower on the list of targeting priorities. However, similar attacks have not taken place within Luxembourg itself and international agencies generally rate the threat of terrorism as lower than other countries in the region because of conditions associated with Luxembourg’s relatively high income and low population; lower numbers of potentially disenfranchised migrants and effective security services, for example. →
EU28
Cover story
Luxembourg is about as hazardous for workers as Germany and less dangerous than Belgium and France, but the UK, Ireland and the Netherlands are safer, according to EU statistics. This chart reflects the rate of “accidents involving more than three calendar days of absence from work” per 100,000 employees. Luxembourg has a proportionally high number of deaths on the job, EU figures show. This can partially be explained by relatively large size of the construction sector, which is more hazardous in all countries. This chart details the occurrence of accidents leading “to the death of a victim within one year of the accident” per 100,000 people employed.
42 Insurance payouts, 2011-2017
The amount that insurance companies have paid in claims has remained broadly stable in Luxembourg and across continental Europe, according to figures from an umbrella group for European insurers. In Luxembourg’s case, claim payments have risen slower than population growth.
Nonetheless, the EU’s border-free travel area means that, in theory, Luxembourg is susceptible to the same terrorist threats as Belgium, France and Germany. This is reflected in the national government’s terrorism rating of 2 (the second-lowest tier on a four-point scale), indicating a real, but non-specific terrorist threat in the country.
NOVEMBER/DECEMBER 2019
What advice do you give your clients about Luxembourg?
The general advice we give is to take basic travel security precautions to minimise the risk of becoming a victim of crime, for example, by avoiding walking in unlit areas at night and being aware of your belongings always. We also advise clients to avoid any political protests or demonstrations, and to remain alert to the terrorist threat and report any suspicious objects or behaviour to the authorities.
Belgium
France
What are the most frequent situations that your firm encounters supporting clients in Luxembourg?
Germany
In general, national security agencies are more than capable of handling any security concerns that are likely to impact travellers and business in Luxembourg. Specific events that we tend to issue alerts for are severe weather warnings, transport disruptions and political protests. These incidents can be caused by domestic events, such as software issues for Luxembourg Airport’s air traffic control systems leading to delays this August, or they can stem from international developments such as the spate of global climate change protests over the last year. Our alerts allow our clients to take action to mitigate the associated disruption to their businesses and employees.
Ireland
Luxembourg
Netherlands
Do you have any other observations about the dangers or risks in Luxembourg?
UK
€0
€5bn
€10bn
€15bn
€20bn €25bn
Situated in a highly developed region and insulated from the worst effects of that region’s typical security issues, Luxembourg is generally considered one of the safest countries in the world. Most visits to Luxembourg are likely to be trouble free, and the remaining threats can be mitigated by basic security measures and prior warning of events such as the occasional non-violent political demonstration. ×
Source → Insurance Europe, online database updated March 2019
WorldAwareIntl
Insurance Europe (trade federation representing insurers and reinsurers in 37 member countries)
€0
€30bn
€60bn
€90bn
€120bn €150bn
General liability claims paid Property claims paid Accident claims paid Motor claims paid
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Luxembourg Stock Exchange (LuxSE) executive committee member and founder of the Luxembourg Green Exchange (LGX), Julie Becker is convinced one day sustainable finance will be embedded across all finance by default, but says transparency is critical for sound investments.
NOVEMBER/DECEMBER 2019
Transparency is key interview
words
G
reen bonds have been spiking, with new issuances reaching $117bn in the first half of 2019, per Forbes. Julie Becker, LuxSE executive committee member and LGX founder, provides insight into the green channel, the performance myth and upcoming EU taxonomy. natalie a. gerhardstein
You initiated the creation of the LGX in 2016. Can you talk about its developments since, particularly in 2019?
In September 2016 we decided to create this platform which was entirely dedicated to green bonds. Best market practices then and now were only voluntary, but we made them mandatory on our platform, asking issuers to provide us with external, third-party review and commit to deliver on their promises. Six months after the launch we extended the platform to social and sustainability bonds, and julie becker
Finance
Natalie A. Gerhardstein
photos
Mike Zenari
a year later we extended the platform to new kinds of financial instruments, socially responsible investment funds, with renewing those for green funds, social funds and ESG [environmental, social and corporate governance] funds. In 2019, we were chosen by the World Bank as their reference platform… We organised a bell-ringing ceremony at the Philharmonie for the display of almost 180 sustainable development bonds of the World Bank on the green platform. At the end of 2018, we were chosen by the International Finance Corporation to display all the thematic bonds on the green exchange. They decided to double list some green or social bonds already listed on other stock exchanges, like London or Milan, because they’re convinced it adds value and brings transparency to investors. As a market operator, we’re convinced that our role is not only to enhance visi-
bility and promote issuers’ efforts, but also to protect investors and bring them maximum information they need to make informed investment decisions. Can you talk more about the Shanghai Stock Exchange cross-border collaboration and what it means for investors?
In September 2017, we signed [a memorandum of understanding] with the SSE to display green bonds listed on SSE on our screens in Luxembourg, with documentation in English to allow the international investor community to access information about Chinese domestic green securities. In June 2018, we signed another agreement with them to launch concretely the green bond channel with green bond index, with quotes that were simultaneously displayed in Luxembourg and Shanghai. In April 2019, an extension of the →
45
Finance
“ The main challenge is to keep [the taxonomy] simple and useable.”
26
29
↑ Countries
↑ Currencies
€195bn ↑ Total value of securities displayed on LGX: 519 bonds and 26 funds
Do you think at some point all investing will be “green” by default, without the need to be specially labelled as such?
I’m quite optimistic. We won’t talk about sustainable finance, it will become completely embedded in finance, as long as finance becomes completely transparent. That’s for me the main shift since the financial crisis: I think investors are asking where their money is going, they want to invest in projects that contribute to sustainable development goals and be sure of the impact they have. It’s not just a question of financial return but also societal impact. We need to get rid of the performance myth. There’s no contradiction between investing sustainably and financial performance--on the contrary--and it has been proven by many surveys now. Millennials in particular are ready to have a bigger impact on society and if needed [would accept] a lower financial return--if needed, but it’s not even the case. In the context of high volatility, it’s proven that responsible investments are much more stable and less risky than traditional investments.
LGX growth since launch
The total issued amount of bonds displayed on LGX on dates indicated
Green Social Sustainable
€200bn
€150bn
€100bn
€50bn
What would you say to young women just starting off a career in finance?
Trust yourself… [you’re] in the first row. Be different, be proud of being different. It’s
€0
Source → Luxembourg Stock Exchange
I can understand if they were convinced from the beginning that this is fad, [but] I’m convinced we have no choice. We have to do more, make sure everyone understands he has to act and change his mind-
↑ Issuers
30/09/19
Some take a cynical view on ESG investing, that it’s simply a marketing tool, like greenwashing. What would you say to the sceptics?
100
31/12/18
I’ve been very actively involved in the high-level group on sustainable finance which released a report for the commission on which it decided to build this action plan. [Then] they released the legislative package with the taxonomy. The LGX was selected to go on with these works through the technical expert groups on sustainable finance. At both the high- level expert and technical expert groups, we were mostly active in the green bond standard working group rather than the taxonomy, per se, but I’m able to talk a bit about the taxonomy too. The taxonomy is a classification of what is green [and] will be built around three pillars. To be considered green, you need to meet one of the six environmental objectives defined by the commission in its action plan and comply with the principle that you don’t harm any other of the environmental objectives which you are not targeting, nor do you breach social international standards, [e.g.] labour laws. What has been recently defined is technical screening criteria, which helps users define whether the nature of the activity is green enough to comply with the taxonomy. So far, it’s a step-by-step approach, with the taxonomy focusing only on climate change mitigation and adaptation, not on the six environmental objectives. It doesn’t mean that it will stop now or be incomplete, but it’ll be a long process because this is extremely complex, based on scientific work [and] different representatives of civil society. The main challenge is to keep it simple and useable. For asset managers in particular, it’s about disclosures, taking those criteria into consideration in their portfolio management strategy and decision-making processes.
LGX IN A NUTSHELL
31/12/17
NOVEMBER/DECEMBER 2019
You’ve been a part of the EU high-level expert group on sustainable finance. Can you tell us more about the EU taxonomy, which will present common standards for defining ESG investment? Will it add pressure on asset managers outside the EU?
set so that the planet will remain viable, especially for the new generations… Of course, we need to ensure integrity and avoid greenwashing. At the exchange, we are convinced that all of this is linked to transparency, making sure investors understand in what kind of projects they are investing, and the issuer reports and delivers on commitments. We can discuss some projects, like oil and gas companies issuing green bonds for specific green projects while at the same time continuing other activities that could be criticised. Is this greenwashing? I would say no, not at all, because a green bond per definition is a bond which finances green projects. We are judging the project and financial instrument, not all the issuer’s activities. For me, greenwashing is linked to non-transparency and misleading information that could lead to investments that are not pursued by investors. Green bonds are booming, and sceptics are asking if these are really green bonds, or if everybody has a right to issue them. Issuers are realising it’s extremely important to be part of the transition, and they are going to have to incorporate ESG into their business model, they have no other choice… Thinking about ESG means also thinking about the planet and community as a whole, and all their stakeholders--beginning with their employees--and in particular millennials.
31/12/16
green bond channel with SSE was signed with the objective to make it mutual, displaying international securities on the Shanghai platform from Luxembourg, really creating a channel between the two exchanges.
30/09/16
46
47
Finance
←
JULIE BECKER Executive committee member of the Luxembourg Stock Exchange, Julie Becker is also the founder of the Luxembourg Green Exchange, a platform dedicated exclusively to green instruments which launched in 2016 and has since received a number of awards and recognitions worldwide. In 2016, Becker was appointed to the EU high-level expert group on sustainable finance. ↳ www.bourse.lu
important to contribute to this diversity that we need--and by saying so, I’m not at all saying that we don’t need men; on the contrary, I think that gender-balanced companies and society are very important. In green finance, in particular, you have more women than men. It happened recently I was on panels with women only-the first time in my life, and it’s because it was green finance. I think women onboard easily to this topic because there’s a sense of purpose in it. It’s also proven in some surveys that women are less inclined to high financial returns without having an impact on something, or without giving a sense of purpose to their investment, and I think that’s the reason why there are so many women in green finance. Also because we are mothers, caring very much about future generations… What developments are most on your radar as we soon head into 2020?
We need to raise awareness and educate people--not only the entire investment chain, but [others], pupils at school and students at university. I think we are going to see more and more master’s in sustaina-
ble finance or sustainability in general. We need to make sure we [speak] the same language--not only in Europe, among different member states trying to agree on this taxonomy, but also worldwide from the US to China, because it’s a global fight for which we really need to understand each other. That doesn’t mean that we need to agree on all the features of taxonomy, but we need to understand what others are talking about. I’m really focusing on transparency, and what’s important as an investor is that you’re able to understand what green means in China, or Europe, or the US if it’s different--but easily. For this, we need labels and standards, like it may exist already in tourism or organic food. It’s exactly the same for financial products. This is also important to fight against greenwashing and ensure the integrity of financial products. And the third element is if the governments at national levels want to put in place incentives to foster green finance to develop [and] to be sure the products they are fostering will not be greenwashed but, on the contrary, to make sure that they are clearly identifiable as green and verified by an independ-
ent third party, for instance, or labelling agencies. We also need to get rid of this performance myth and be sure everyone understands it’s a double impact they will have by investing sustainably, not only financial returns but an impact return. For all of this, we need structured data… we are swimming in ESG data which are different, not harmonised, and for all this we need new technology. We have to face climate and digital, but I’m convinced that they go together. ×
48
NOVEMBER/DECEMBER 2019
If you want peace, prepare for war For Sun Tzu, author of “The Art of War”, “the line between disorder and order lies in logistics”. Thus, to a large extent, the defence of western countries and their interests relies on the work of the Nato Support and Procurement Agency, whose headquarters is based in Capellen. words
Stephen Evans
Photo → Lala La Photo
Military
N
All types of supply
NSPA helps in the acquisition and delivery of everything from food, fuel, spare parts and munitions to armies, navies and air forces working around the world. There is also the provision of infrastructure, transportation and medical services, as well as the maintenance of radars for air defence and GPS systems. For example, they work to support a multinational air-to-air refuelling fleet, a ground surveillance platform and even helping to run major funds to support building and stabilisation efforts in countries like Ukraine and Afghanistan. NSPA supports both Nato and nationally-owned military equipment. Any Nato country or partner can call on their services. Sometimes this is required by political decision makers, “but the vast majority of customers come to us for projects, goods and services where they have different options,” said Dohmen. He explained that NSPA is chosen for reasons of capacity, price, the willingness to continue with long-standing relationships, and other factors. Why Luxembourg?
What is now NSPA was founded in May 1958, before moving to Luxembourg →
NSPA spending, 2013-2018
Source → Nato Support and Procurement Agency, 2018 annual report
The Nato facility in Capellen handled payments of nearly €4bn last year across its four main support areas: operations and exercises, acquisition, lifecycle support and logistic services. The figure for 2017 was raised by exceptional aircraft and related purchases.
€ 5,000,000,000
55,000
€ 4,000,000,000
50,000
€ 3,000,000,000
45,000
€ 2,000,000,000
40,000
€ 1,000,000,000
35,000
30,000
0 2013
Total business volume
2014
2015
2016
2017
2018
Invoices processed by NSPA (figures rounded)
49
Military
apoleon probably didn’t say “an army marches on its stomach”, but like many great generals before him he knew that the best equipped armies are most likely to win. Thus whether Nato members and allies are conducting a training exercise, are engaged in humanitarian work, or are exerting hard power, the Nato Support and Procurement Agency helps them deploy everything from food and bedding to weapon systems and munitions. Or in the words of Peter Dohmen, NSPA general manager: “We support the execution of Nato’s core tasks, enable operations and training exercises, and procure strategic capabilities for Nato, its member nations and partners.” It does this by acquiring, operating and maintaining complete weapon systems, fuel and port services for navies, airfield logistics, base support services and much more. “We are the link between industry and the nations for finding the most cost- effective and efficient solutions,” he added. Working as an international agency through multinational cooperation is often more effective and efficient than individual member states carrying out these tasks individually.
← Peter Dohmen of the Nato Support and Procurement Agency
NOVEMBER/DECEMBER 2019
in 1968. It was originally based in Châteauroux, France, about 250km south of Paris, but it had to relocate after the French president, Charles de Gaulle, decided to take France out of Nato’s integrated military command structure. All non-French military facilities had to leave, and Luxembourg came forward as a handy alternative. As a founding member of Nato and thus the agency, the grand duchy was a good option, much as is the case for other international institutions. Luxembourg being small, relatively inoffensive and centrally located has its advantages. “Luxembourg has proved itself a strong supporter, and a wonderful host nation, and we have enjoyed excellent support from both the government and the military,” said Dohmen. Incidentally, NSPA is not to be confused with the US military logistics operation Warehouses Services Agency, which has been in Sanem since 1949. After originally moving to the capital in 1968, what was then called the Nato Maintenance and Supply Agency eventually located to its current location in a former Luxembourg army base in
→ A Nato naval vessel supported by the NSPA in Capellen
Capellen. The NSPA name was adopted in 2012 following its merger with smaller agencies. It has four main roles divided into business units. These are lifecycle management, support to operations, the Central Europe Pipeline System and Nato Airlift Management Programme. As well there are numerous corporate functions performed out of the headquarters. Lifecycle management, support and HQ
“Our core business is the lifecycle management of equipment and weapon systems,” Dohmen explained. Principally this means the acquisition and management of assets, including carrying out studies of requirements, sourcing material, providing in-service support services and managing equipment upgrades, right through to taking care of the disposal of old kit. The agency currently manages around 30 multinational support partnerships covering over 90 weapon systems. This also extends to providing administrative backup in certain areas to help with purchasing and distribution. For instance, this includes the General Procurement Shared Services or facilities such as the →
↑
WHAT IS NATO DOING IN LUXEMBOURG? Behind the well-guarded walls of its Capellen facility, the Nato Support and Procurement Agency (NSPA) is the main logistics and procurement agency of the 29 member North Atlantic Treaty Organisation. It is the executive branch of the Nato Support and Procurement Organisation (NSPO). NSPO’s board reports directly to the North Atlantic Council, the western alliance’s principal political decision-making body. Capellen hosts this board’s twiceyearly meetings, with all member states represented. With strategy set, the NSPO then oversees the NSPA’s activities and performance. ↳ www.nspa.nato.int
Photo → Nato Support and Procurement Agency
50
Diverse teams and operations
The near 1,200 people working in the headquarters in Capellen are responsible for most of these three lines of activity. As well, there are more than 2,500 contractors deployed around the world. To this can be added a further 200 people who are employed directly, mainly in the Central Europe Pipeline System in Versailles, France, and the Nato Airlift Management Programme based in Pápa, Hungary. CEPS is a good example of the agency’s work. It manages the operation, financing and maintenance of a cross- border fuel pipeline and storage system, supporting all types of Nato requirements, whether during peacetime, crisis or conflict. CEPS operates 5,279km of pipeline running through five nations, with 36 depots connected to 20 airbases and 6 major airports in western Europe. The programme also has to manage relationships with third parties, including 6 sea entry points, 12 refineries, 9 storage facilities and 3 pipeline systems. CEPS
51
Workforce by nationality
NSPA staff represent 26 out of 29 Nato member countries, employed in Luxembourg, France, Hungary, Afghanistan, Kosovo and more.
Albania Belgium
Military
Bulgaria Canada Croatia Czech Republic Denmark Estonia France Germany Greece Hungary Iceland Italy Source → Nato Support and Procurement Agency
Nato Logistics Stock Exchange, where users can trade surplus goods or services. As for support to operations, this includes base and other support services, infrastructure supply, airfield support and a range of logistics services to military operations. The agency also manages contracts with almost global coverage for fuel, oil supplies and port services for shipping. Another crucial role is ensuring that military personnel and administrators have comfortable, practical places to live and work. NSPA procures, manages, operates and maintains deployable camp infrastructure and associated services. As well as supporting hard power forward defence units, they are also responsible for projects linked to the Nato Trust Fund, which supports initiatives designed to boost stability in global hotspots. These logistics projects require their own supplies of corporate services from HQ. These include ultra high secure IT systems, financial management, human resources, customer liaison, performance management, compliance, infrastructure planning and more. Ensuring efficient procurement is particularly important, being as this is at the heart of NSPA’s role. Given the politics of managing the demands of 29 Nato member states, this process has to be fair and open to all, and seen to be so. NSPA has more than 67,000 registered suppliers, and on average 10,000 of these companies are used annually to supply the western alliance. These contracts have to be managed through an international competitive bidding process.
Lithuania Luxembourg Netherlands Norway Poland Portugal Romania Slovakia Spain Turkey UK US 0
50
can be used for non-military purposes, such as supplying kerosene to major airports, with the understanding that military uses will take priority if necessary. NAMP is there to enable airlifts to happen, whether of a civilian or military nature. These can be Nato run, or be on behalf of the EU and individual nations. It acquires, manages and supports assets, as well as providing financial, logistical and administrative services. This includes the transport aircraft they run out of Pápa Air Base in Hungary. NSPA is also responsible for the Southern Operational Centre based in Taranto, Italy, which specialises in the acquisition and support for ready-to-use expeditionary camps. In addition, there are long-term NSPA outposts in Afghanistan, Kosovo and elsewhere. Now and the future
The agency needs a wide range of talent, and they hire logisticians, many types of technicians, procurement officers, project managers and administrative staff, with support staff in finance, IT, HR and so on. The Capellen facility has room to grow, with space for 1,500 staff in its
100
150
200
250
300
current buildings. In June, NSPA said it would construct a new office building for 400 people, that it expects to be “completed by the end of 2021”. Future directions for Nato and NSPA depend on the evolution of the diplomatic landscape. On the one hand, the world remains a dangerous place and concerted action is required. Yet these structures are being called into question by several influential voices, not least the current resident of the White House. The need for NSPA to demonstrate how it provides good service and value for money has never been greater. ×
BRAND VOICE
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NOVEMBER/DECEMBER 2019 ← Paolo Faraone CEO, Notz Stucki Europe
Funds management
Changing to achieve growth ambitions Some companies don’t hesitate to transform their internal organisation to meet new challenging goals, including when it entails a substantial restructuring of their executive committees. sponsored content by
E
ntrepreneurship has always been a key value at Notz Stucki, the asset management firm founded 55 years ago in Geneva. And it is precisely this type of entrepreneurial thinking that continues to guide and motivate the company’s strategic choices today in Switzerland, in Luxembourg and all around the world. The recent restructuring of the group’s executive committee, formally announced at the end of June, is just another illustration of this mindset, in particular, considering that the company has a collective leadership and the CEO is represented by the committee as a whole. It is a clear signal of the firm’s ambitions and expectations.
Notz Stucki
“Due to the upcoming retirement of Hamon (COO) and Antonio Mira (CFO). Bernard Tracewski, who has served at Notz For their part, Paolo Faraone (NSE CEO) Stucki for more than 30 years, we have de- and Maya Page (Head of Legal & Complicided to transform our executive commit- ance and Human Resources Manager) will tee,” explains Paolo Faraone, CEO of Notz continue to contribute to the Executive Stucki Europe (NSE). In order to bring Committee on a permanent basis. more experience and a wider skillset to the Moving from 10 to 15 billion of committee, the company’s management assets under management team has been strengthened and expanded to six members: Angel Sanz (CIO, Head Based in Geneva, but with offices in Luxemof Asset Management) and Cédric Dingens bourg, Madrid, Milan, London, Zurich, Ber(Head of Investment Solutions & Institu- muda and Mauritius, Notz Stucki intends tional Investors) are the newly appointed to take advantage of the new dynamic members, next to Grégoire Notz (Director, created by the reshaping of its executive Board Member), Damiano Paternó Castello committee to accelerate its development. (Head of Wealth Management), Patrick “The goal is to grow our assets under man-
BRAND VOICE
53
NOTZ STUCKI IN NUMBERS
↑
8
Notz Stucki’s offices around the world
↑
↑
55
100 +
↑
↑
Years in business
Notz Stucki employees around the world
A Super ManCo in Luxembourg
Notz Stucki Europe, the first “Super ManCo” in Luxembourg to be granted with extended licences in 2013, has naturally contributed to the group’s development. Today, four billion euros of assets are managed by the Luxembourg office. “Our goal is to double the size of our White Label funds in three years. To this end, we are leveraging our network, our business partners, the synergies between our three business lines and our knowledgeable and committed team,” explains Paolo Faraone. In order to achieve its objectives, Notz Stucki’s Super ManCo is also reliant on its new private equity licence, which is expected to broaden the offer in a very effective way, and has already made its presence felt in 2019.
10
(Billion Swiss francs) The value of assets currently managed by Notz Stucki
30
White Label funds offered by Notz Stucki
A call to discover talents
One of Notz Stucki’s defining traits since its foundation is its quest for talent. The firm has always sought the world’s best managers, leaders who have the ability to think differently. This strategy has helped make the group one of the largest independent asset management companies in Switzerland. “Our hallmark is to seek out talented individuals who are able to demonstrate independence while sharing our values and our way of working,” explains Paolo Faraone. “We firmly believe that growth cannot be achieved without the support of an experienced, multidisciplinary and fully dedicated team. It is thanks to these qualities that we can achieve complex objectives and meet the challenges posed by a constantly changing regulatory framework.” ×
↑ Executive Committee Grégoire Notz (Director and Executive Committee member), Cédric Dingens (Head of Investment Solutions & Institutional Investors), Paolo Faraone (CEO, Notz Stucki Europe)
For more information, visit our website www.notzstucki.com or contact us luxembourg@notzstucki.com
Funds management
agement from 10 to 15 billion Swiss francs within the space of five to six years,” reveals the CEO of Notz Stucki Europe. Its size, its infrastructure, its management solutions and its human dimension make the company an attractive partner for asset managers wishing to leave the banking sector and join an independent, consolidated, international group. The firm is particularly targeting Luxembourgish and Irish management companies who want to link up with a well-established name. At the same time, following its noteworthy structural investments over recent years, the company is seeking strategic partnerships that correspond to its corporate culture, and is developing new approaches with portfolio managers who have specific knowledge in certain areas. In other words, thanks to its acknowledged investment expertise and its diversification into three complementary business lines (Wealth Management, Asset Management and Management Company) Notz Stucki aims at becoming a consolidator within the market.
get the picture
Pharmacies
The bitterest pill
It’s that time of year when we start heading to the pharmacy more often to pick up prescriptions to help cure colds and flu. words
photo
Duncan Roberts Jan Hanrion/Maison Moderne
NOVEMBER/DECEMBER 2019
% GDP 0.61% of GDP was spent on pharmaceuticals in Luxembourg in 2017. Japan’s equivalent is 2.1%.2 Qualifications Depending on the country of study, it takes 5 or 6 years to get recognised pharmacist qualifications.1
97 The number of pharmacies in the grand duchy, equivalent to one per 6,200 inhabitants.1 Per capita Luxembourg spent $364 per capita on pharmaceuticals in 2016. By comparison, the United States spend is $1,026 per capita.3
Spending In 2017, 11.3% of health spending in the grand duchy was attributed to pharmaceuticals.2
Subsidies 80% of pharmaceuticals spend in Luxembourg is financed by the state, with 6% accounted for by private health insurance schemes and 13% paid for out of pocket by patients.3
Supply Shortages of medicines are not uncommon. In July 2019, the Belgian medicines agency published a list of 497 medicines which had become unavailable. Luxembourg relies on Belgian suppliers for the majority of its medicine supplies.4
On-duty A rotation system ensures pharmacies open for night or weekend duty, listed on www.pharmacie.lu.5
Compensation A study in 2018 found each afterhours duty shift costs a pharmacy around €340. Pharmacies are now receiving additional compensation to make up the shortfall.5
Sources → 1. Syndicat des Pharmaciens Luxembourgeois → 2. OECD → 3. European Commission → 4. Agence Fédérale des Médicaments et des Produits de Santé → 5. Luxembourg ministry of health
54
BRAND VOICE
In this regard, CAR Avenue now represents 15% of the Grand Duchy automobile market, which has traditionally been dominated by German manufacturers. How do you plan to counter this hegemony?
Photo → Maison Moderne
Automobile
Competing with German brands Based in Luxembourg and active throughout the Greater Region, CAR Avenue aims to continue to increase its market share, particularly in Luxembourg where the group relies on its partnership with PSA to compete with German brands. We meet with its CEO for Luxembourg and Belgium, Benjamin Bauquin. sponsored content by
CAR Avenue
From its historic heartland in the Great Est region of France, CAR Avenue has expanded its operation into Luxembourg, and today into Wallonia. What are the group’s ambitions here in the Grand Duchy?
benjamin bauquin Our ambitions in Luxembourg are, first and foremost, to satisfy our customers. For us, it is very important that they are satisfied with our services, happy to visit our showrooms and that they have a positive experience there. This is our primary goal. Then, we want to grow in terms of market share. As a developing group, our mission is to solidify our position in Luxembourg, where we have been representing the NISSAN and TOYOTA brands for 10 years and, for almost a year, the PSA group thanks to the takeover of Etoile Rodenbourg’s PEUGEOT, CITROËN and DS dealerships.
PEUGEOT, CITROËN and DS aside, you also offer other brands, including NISSAN, KIA and TOYOTA. How is such a multibrand dealership an advantage?
I would rather say that we offer “multiple monobrands”! We try to have a portfolio of complementary brands in each of our territories, with distinct teams in terms of marketing, sales and management. In Luxembourg, our PSA teams are simultaneously both colleagues and competitors of the teams dealing with the NISSAN, KIA and TOYOTA brands. The only shared functions or elements where we intend to create synergies are in functions, such as storage and IT management. Sharing such facilities will help us to be more financially efficient, which will allow us to reinvest in people, digital technology and training to enable us to keep pace with all the new technological innovations appearing in our manufacturers’ various product ranges. ×
Discover CAR Avenue by visiting www.caravenue.com
Automobile
← Benjamin Bauquin, CEO Belux
It is true that the Luxembourg market has been dominated by German brands historically. But we have an opportunity to change that by partnering with the PSA group, which has increased the value of their brands by accentuating their move upmarket. In particular the DS, the group’s premium brand, which offers technological innovation, refinement and French luxury that are capable of rivalling any German product. The PEUGEOT brand has stepped up its range in terms of design, comfort and driving pleasure, and CITROËN has also made progress in championing comfort and family cars. We now have vehicles that can easily compete with German brands, especially since the PSA Group has also moved ahead technically in terms of engine design. This is particularly the case for its combustion engines, which produce fewer CO2 emissions than those manufactured on the other side of the Rhine. This provides environmental and fiscal benefits. Finally, by the end of the year, we will be offering new hybrid and full-electric products, such as the future e-208, a range of vehicles that will enable us to meet the transport needs of all.
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special report
Funds industry
NOVEMBER/DECEMBER 2019
Long-term placements
Every nation wants to be a startup nation, and Luxembourg is no exception. Success requires bright ideas and large quantities of investment to bring these innovations to fruition. Can the country’s new growth businesses and wealth management industry work more closely together? Can Luxembourg’s globally focused cross-border financial sector shift its sights to notice the potentially lucrative innovation that is happening on its doorstep? Startup hubs and incubators have proliferated, and with it have come firms developing new, potentially lifechanging ideas. Yet, many lack the financing needed to unlock different levels of innovation and bring products to market. Allying the local wealth management industry with the startup sector is an ambition of the Luxembourg Private Equity and Venture Capital Association’s (LPEA) president, Rajaa MekouarSchneider. “In London, investors go there because they know they will meet entrepreneurs, venture capitalists, like-minded investors, intermediaries, banks, service providers,” she noted. The result is a virtuous circle of innovative businesses attracting global investors and talented staff, which in turn generates more new bright ideas that attract more financial backing. Mekouar-Schneider would like to replicate this model in Luxembourg, although obviously on a smaller scale. LPEA estimates that there are around 80-100 family owned investment businesses in Luxembourg. These single family offices wield considerable financial power, managing portfolios from a few hundred million to several billion euros. Clearly a share of this type of cash could make a serious difference to the fortunes of any startup or growth company. Most family offices manage the assets of people who live outside the grand duchy, but a good proportion of these clients are resident. The LPEA realised that there was sufficient interest to create a forum to facilitate networking inside and outside of Luxembourg. Thus, they founded a single family office section to their association to foster connections between these families and their representatives. It currently has 25 members, with 30 expected for the end of this year. This networking group
57
A key part of this work is boosting awareness of local investment opportunities. “We are planning investor days, where families and their representatives will be invited to meet selected local entrepreneurs who can showcase their work,” said MekouarSchneider. If there is a meeting of minds and financial interests, investments could then be managed locally. Investors could tap into the country’s extensive ecosystem of expertise in wealth management and corporate structuring. Luxembourg has a unique offering, as for some clients it is important that investments be channelled through an onshore jurisdiction in the EU’s eurozone. Although the country is compliant with international tax-information sharing rules, the culture of confidentiality remains a hallmark. Add to that the central location with multilingual servicing, and Luxem bourg could have what it takes to establish a niche innovation-investment nexus. →
Bringing together venture capital and wealth management is MekouarSchneider’s professional speciality. She is head of private equity for a Luxembourgbased single family office, which →
Photo → LPEA
1. Bringing wealth to startups
mobilises and unifies the local scene, helps share best practice, and provides a focus for attracting international players.
Funds industry
In advance of Luxembourg’s big annual alternative fund conference, Delano takes a look at what’s driving debt, real estate and infrastructure funds. Plus, we examine the “stewardship codes” which guide both retail and alternative funds. But we begin with the growing links between private equity funds and family offices.
Rajaa Mekouar-Schneider President Luxembourg Private Equity and Venture Capital Association
↓
“ We are planning investor days."
Family office investment strategy by region 25% of European family offices are looking for growth, which can mean for private equity investments.
Europe
0% 10
% 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10
NOVEMBER/DECEMBER 2019
Emerging markets
Preservation Growth Balanced
involves seeking investment projects from around the world for clients to consider. Having an innovation-private equity hub in Luxembourg could also help with this work, putting Luxembourg more on the map of European and global venture capitalists. × ↳ www.lpea.lu words
Stephen Evans
North America
Source → UBS and Campden Wealth, “The Global Family Office Report 2019”, figures rounded
58
Asia-Pacific
at professional investors, will primarily invest in consumer loans originated by Lendable” in the UK, said Altfi, a trade publication. Lendable hopes to lend £150m “by early next year” and £350m by the end of 2020, it reported. The fund is open to Mifid professional investors, Rory McHugh, Lendable’s chief capital officer, stated on his Linkedin page. Altfi said the minimum investment was £2m.
2. Private debt evolving Loan funds have attracted a relatively stable amount of cash in recent quarters (see chart on page 64), continuing to appeal to many investors. Preqin said that managers seeking better yields continue to plump for debt funds. The data firm said in an October report: “Although returns for the asset class have slowed over the past year, with direct lending funds contributing directly to the slump, private debt has continued to outperform both natural resources and real estate. Amid ongoing economic turbulence, the asset class is proving its ability to provide a sustainable and reliable income stream to investors, and therefore protection on the downside.” That’s been good for the grand duchy. Case in point: Lendable, a London-based fintech lender, started its first Luxembourg-based fund earlier this year. “The fund, aimed
Loan funds will grow by double digits annually over the next five years, according to David Capocci, partner and head of alternative investments at the consultancy KPMG. He moderates the “Private debt--opportunities and challenges” panel at the Association of Luxembourg Fund Industry’s Private Equity and Real Estate Conference in November. The talk will “start with an overview of the current state of the market, based on KPMG and Alfi’s recent market study of debt funds. Our market intelligence covers topics like fund structure, product penetration, breakdown of current debt strategies and management fees,” he says. The market is in good shape. “Assets under management in the loan fund market increased by 23.5% in 2018. Our prediction is that we’ll see this same growth reproduced each year through to 2025, meaning a steady evolution in the market,” Capocci states. “European regulations will also have a significant impact on the →
Photo → KPMG Luxembourg
Double digit outlook
David Capocci Partner KPMG
↓
“ The unregulated market is just as large as the regulated market.”
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NOVEMBER/DECEMBER 2019
development of the loan fund industry in the next five years, especially in key areas like international taxation, sustainable finance and stress testing guidelines. As these regulations evolve in the coming years, we expect the loan fund landscape to evolve along with them.”
closed-ended funds product launched in recent years compared to circa five years ago. We need only look to investment markets to evidence the strong capital flows into the sector and the impact that’s having on yields as well as geographic and asset type allocations,” Smith says.
However, the Preqin report warned: “As increasing levels of capital are being put to work by fund managers, investors are hoping the more experienced managers can guide them through the turbulence. Although the debate continues, the consensus is that we are in the late stage of the market cycle. As a result, fund managers across private capital are bracing themselves for more uncertainty, especially those in the private debt space, an asset class that has not yet faced a true market downturn.”
“2018 proved to be a record year in terms of capital raising for non-listed real estate vehicles,” according to Robert White, a partner at the consultancy EY. “Whilst open-end funds were once predominantly the remit of traditional investment managers, we now see a range of exciting new products coming to market promoted by new entrants to this field, including established PERE houses and leading property developers, many of whom are putting a fresh spin on this product format,” White wrote in Delano’s sister publication Paperjam in October.
Unregulated market
“Two factors may take investors by surprise,” Capocci says of Luxembourgdomiciled loan funds. “First and foremost, even though a new, less regulated and more flexible type of investment fund, the reserved alternative investment fund, was launched in 2016, the specialised investment fund still dominates the regulated market. A second surprise is the size of the unregulated market. Although relevant data is tricky to gather, we estimate that, as of 2017, the unregulated market is just as large as the regulated market. In comparison with regulated vehicles, unregulated vehicles are perceived as extremely flexible--they cost less to set up and operate as [financial regulator] CSSF approval, reporting and supervision are not required.” × words
Aaron Grunwald
3. “Robust” appetite for REIFs The number of grand duchy-based real estate investment funds has held steady in recent years, but Jervis Smith argues the topline figures are a bit misleading. “Whilst the number of funds may have remained consistent in Luxembourg, as ever the devil is in the detail of the data,” states Smith, country managing director at Vistra Luxembourg, a fund administration services provider. “We see a consistent trend toward more open-ended products issued by managers whilst inflows to existing product is very strong. We also see significantly larger
Risk and yield
What types of investors are most attracted to Luxembourg REIFs? Smith says that “the inflow of cash into real estate funds is coming from three principal institutional investment sources: pension funds, insurance companies and sovereign wealth funds”. “The core underlying drivers of this are: a long-term shift in the allocation policies of institutional investors as their approach to liquidity and desire to diversify investment risk has developed; a historically low interest rate environment that’s encouraging investors to seek improved yields from real estate; and short-term currency weaknesses in some markets have encouraged currency exposure diversification through the asset class,” he notes. Smith is on “The future of REIFs” panel at the Association of the Luxembourg Fund Industry’s Private Equity and Real Estate Conference in November, along with Jeff Rupp, director of public affairs at Inrev, the European Association for Investors in Non-Listed Real Estate Vehicles. Rupp reports that “even with significant changes we’re seeing in the political, economic and regulatory landscape, there is robust investor appetite for investment in real estate through funds. The favourable risk adjusted returns that real estate fund investments can deliver and the diversification they can provide remain attractive.” Regulatory environment
Rupp also believes the European regulatory regime is more than satisfactory. He argues that “the regulatory framework →
ALTERNATIVE INVESTMENTS CONFAB The Association of the Luxembourg Fund Industry’s “PE & RE Conference” is an annual summit of private equity and real estate investment fund professionals from across Europe. Tue 26-Wed 27 November European Convention Center ↳ events.alfi.lu
Selected highlights Tuesday 26 November 09:20-09:35 Value creation in private equity Keynote address by Felix Haldner of Partners Group and the Swiss Funds & Asset Management Association 09:35-10:20 Luxembourg as a PE hub: why the trend is accelerating 14:10-14:50 Private debt--opportunities and challenges 16:15-16:55 PE for the greater good Wednesday 27 November 09:30-10:15 The future of REIFs 14:50-15:25 RE regulation and tax alert 15:50-16:30 Putting capital to work in infrastructure
Visit our stand at the ALFI PE & RE Conference 26-27 November 2019 European Convention Center
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Infrastructure fund searches Europe is the region most “targeted by infrastructure investors over the next 12 months”, per Preqin.
Q3 2018
Q3 2019
Source → “Preqin quarterly update: Infrastructure Q3 2019”
100 %
80 %
NOVEMBER/DECEMBER 2019
60 %
40 %
20 %
0 % Global
Europe
North America
Photo → Vistra
for REIFs in the EU and Luxembourg works quite well... the continual dialogue with both EU and Luxembourg regulators have resulted in a workable, mature and market-oriented investment environment.”
Jervis Smith Country managing director Vistra Luxembourg
↓
From the lobby group’s perspective, “there are a limited number of areas where we think the current regulation can be improved. In fact, after the time, energy and money spent embedding requirements under AIFMD since 2013, we are recommending that policy makers in Brussels not make any changes to the AIFM directive in the upcoming review.” Looking ahead to the next five years or so, Rupp reckons: “Luxembourg REIFs have grown considerably in the past few years and are expected to continue growing. This is partly due to Brexit and partly due to tax considerations, together with the fact that Luxembourg is widely considered a centre of excellence for real estate fund tax, legal and advisory services, management and operational support.” × words
Aaron Grunwald
“ A long-term shift in the allo- “4. Missed opportunity” cation policies for infrastructure of institutional investors.”
The European Long-Term Investment Fund, a type of pan-EU alternative fund meant to support infrastructure development, has not exactly enthralled
Asia-Pacific
Rest of the world
Emerging markets
individual investors. Delano spoke with three of the participants on the “Putting capital to work in infrastructure” panel at the Association of the Luxembourg Fund Industry’s Private Equity and Real Estate Conference in November, about the ELTIF and the appeal of the investment class. “Infrastructure funds serve two main purposes,” says Christian Hertz, managing director and general counsel at LIS-Sanne, a provider of fund administration and management company services. “They are an ideal alternative to money market funds for investors looking for long-term regular revenues, especially in the context of low interest rates. They supplement public money in the financing of infrastructure-investment opportunities are therefore meant to continue to increase if we want to meet the Sustainable Development Goals set by the United Nations with 2030 as target date.” “Massive amounts of public money have been injected in blockbuster infrastructure funds in order to attract private money alongside public money. This will continue,” says Hertz. “Pension funds and other institutional investors looking for safe and regular revenues invest in infrastructure funds to diversify their portfolio and boost revenues.” “Retail investors are not present enough in infrastructure. The European Union tried to foster this by adopting the ELTIF → regime back in 2015. Despite some
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Unlisted infrastructure funds
Q1
Q2 2014 Q3
Q4
Q2 2015 Q3
Q4
Q1
Aaron Grunwald
Q2 2016
5. Sustainable stewardship
Q3
As “ESG” (environmental, social and governance) issues move towards the mainstream with investors, many fund firms have introduced stewardship codes. What exactly does this entail?
Q1
Q3
Q4
Q1
Q2 Source → “Preqin quarterly update Q3 2019”
2018 Q3
Q4
Q1
Q2
Q3
$350bn
2019
$300bn
Fidelity International has around 180 analysts who have roughly 16,000 meetings each →
Q2 2017
$250bn
“Stewardship means that the client entrusts us with their capital, and we hence have a fiduciary duty and we need to make sure that the investments of our clients are invested into companies and into assets that are long term, that bring good returns, [and] also consider ESG factors, to make sure that financial returns are met and not put at risk,” says Natalie Westerbarkey, head of EU public policy at Fidelity International, who is based in Kirchberg. That means looking beyond financials to check “other criteria that could potentially impact the company where that money is placed.”
Q4
$200bn
“ Infrastructure funds are about generating long-term impact and value creation.”
Closed-end private real estate funds
$150bn
↓
Private debt funds
Q1
words
Alessia Lorenti Head of business development Edmond de Rothschild
Private equity funds
“It is worth it”
Delaunay tells punters considering this type of fund that “it is worth it. Investing in infrastructure is a powerful long-term investment. The industry is booming and investors should jump on the bandwagon before they are left too far behind.” × Photo → Edmond de Rothschild
NOVEMBER/DECEMBER 2019
Alessia Lorenti, head of business development at Edmond de Rothschild, a private bank and asset manager, agrees. “Today there is a gap between the retail investors’ wish to make meaningful long-term investments, for instance in renewable energy infrastructure, and their ability to access such asset class. The European Long-Term Investment Fund wrapper ticks the boxes in part, but is not extensively utilised today. Hence, the key questions are whether the ELTIF regime, as currently foreseen, is best suited to this investment strategy and the retail distribution framework, if the existing ELTIF framework should undergo certain adaptations, or if a retail infrastructure fund regime should be implemented,” states Lorenti.
Infrastructure funds differ from other types of alternative funds. Lorenti says that “infrastructure funds are about generating long-term impact and value creation. For instance, we are increasingly seeing a focus on renewable energy investment.” She comments that “the life cycle of infrastructure funds is generally longer than other private capital asset classes, such as private equity, real estate or related private debt, particularly whereby the focus is on infrastructure development projects. We are often looking at funds which have a 15-year term. This implies that investors need to understand that their capital commitment and lock-up period in the fund is long-term. This is key in managing their portfolio allocation in respect of their expected returns and future liquidity needs.”
Aggregate capital raised Private equity is by far the largest alternative fund segment in terms of fundraising, attracting an average of roughly $130bn worldwide each quarter since 2014, according to Preqin, a financial data firm. A quarterly average of $35bn flowed into closed-end real estate funds, the second largest class.
$100bn
Retail gap
Nonetheless, the ELTIF sends a “positive message to retail investors to invest in such assets”, reckons Laurianne Delaunay, asset management director at Marguerite, a fund manager.
$50bn
upgrades in the meantime, this regime has largely been a missed opportunity, because it is too complex and too cumbersome. This needs to be fixed because exposure to infrastructure is a must for retail investors pursuing a long-term view,” he says.
0
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> loyensloeff.lu
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Growth of ESG-dedicated funds ESG funds represent less than 2% of global investment fund assets, “but are rising fast,” according to the IMF.
Number of equity and fixed income funds with ESG mandate ESG-listed fund assets
NOVEMBER/DECEMBER 2019
2,000
$1,000bn
1,500
$750bn
1,000
$500bn
500
$250bn
0
0
year with the management and board of companies they invest in, to “verify or challenge the company” on their activities, according to Westerbarkey. “They try to influence the behaviour of the company, and that, in essence, is the core of stewardship.” Risk reduction
Applying a stewardship code, she reckons, “enhances our clients’ long-term returns. They trust us as allocators of their capital and we need to anticipate the headwinds that could compromise these good returns. So, everything that we invest [in] has an impact not just on the company, so the investment, but on society as a whole.” The company says that it and other active investment managers have, for example, helped convince a large European oil and gas company to invest more in renewable energy, influenced a major Chinese textile firm to disclose the labour rights performance of suppliers, and pressured big Singapore banks to stop financing coal power plant construction. She says they are prepared to apply pressure on investee management over the long haul. “There’s always the possibility to divest. But divestment is a means of last resort, because we strongly believe in engagement. So, we would first continue to meet the company and influence [its] behaviour and have an impact through that, rather than divest. Because with a divestment, there is no impact, really. That
2011
2012
2013
2014
is the issue. [That would only work] at a collective level. Therefore, we still prioritise engagement over divestment. That is one of our core beliefs. We also think from the stewardship perspective [that] serves best the interests of our clients.” That said, the firm’s analysts and portfolio managers can always take an “appropriate response” when it comes time to cast proxy votes, including on executive pay issues.
2015
2016
2017
2018
2019*
circular that limited the number of board appointments any individual can have at one time, which makes perfect sense. This is something that should help guide other jurisdictions too, so Luxembourg can play a role-model function.” × words
Aaron Grunwald
Photo → Association of the Luxembourg Fund Industry
2010
Ratings system
Using company reports, information gathered during those analyst meetings and data from external providers, the firm has introduced an internal ESG ratings system, somewhat similar to those issued by credit ratings agencies. Its ESG scores are based on several indicators within the “E”, “S” and “G” categories. “We plan to cover our entire investment universe of 3,000 companies by the end of this year,” she states. This summer, Fidelity used these propriety ratings to introduce a range of five sustainable funds, which invest in firms that score well. The stewardship code and ESG ratings add to the firm’s credibility, Westerbarkey reckons. “I think this is critical for the relationship with clients and to build trust, and to keep and to maintain trust. Ultimately in our industry, it is mostly about trust.” “Luxembourg is also, I believe, a standardsetter,” Westerbarkey says. “I’m thinking of the recent [financial regulator] CSSF
Source → International Monetary Fund, “Global Financial Stability Report: Lower for longer”, October 2019
*as of September 2019
Natalie Westerbarkey Head of EU public policy Fidelity International
↓
“ Influence the behaviour of the company.”
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BRAND VOICE
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NOVEMBER/DECECMBER 2019
Standardisation and digitisation
Marc Lefebvre Cofounder Docunify sponsored content
Perspectives
What trend in the private equity and real estate fund sector will have the biggest impact on Luxembourg in 2020?
The success of Luxembourg as an investment fund hub dates back to 1988, when the EU directive for cross-border distribution was established. In the aftermath of the 2008 financial crisis, we have seen the emergence of a new trend for Luxembourg: a focus on the private equity and real estate sector, which has become the core pillar of Luxembourg’s fund industry. Luxembourg is now the most attractive European country for the private equity and real estate industry. In the field of alternative assets, private equity and real estate projects are the rising stars, with the Luxembourg market expected to grow at least 10% per year from 2020. In a low interest-rate market, it offers institutional players a different source of performance at low risk. The asset growth of the private equity and real estate industry is further driven by the government’s push to shift to individual retirement plans, as well as an increase in sovereign investors and high-net-worth individuals from emerging populations. Globally we expect the sector to reach EUR19.02tn until 2025 (according to the PwC Private Equity Information Brief). Of course, this growth poses a certain number of challenges. The boom is desired, yet unexpected in terms of size, so private equity and real estate funds have to fully get ready for such growth. Luxembourg’s success partly lies in its strong and flexible regulatory framework and there’s now an increased need for standardised practices to match the general financial industry. Anti-money laundering (AML), security and reporting procedures should all be points of focus for the industry on
a day-to-day basis. Another major challenge is to attract and retain highly qualified talents with innovative HR policies – Luxembourg is a small country, so we have to look beyond its borders. As there is an increasing need for standardised practices, it is important to have efficient systems in place to support and maintain asset growth. Industry professionals will need to be trained to handle important business volumes, while actors are expected to optimise and streamline operations by looking at lean solutions. Long-term goals for management are to identify cost-reduction opportunities, stimulate cross-departmental collaboration, implement straight-through processing (STP) for data maintenance and reduce human involvement on less value-added tasks. Though a lot remains to be done in the field, digitisation is a key driver for the industry, helping to optimise operational efficiency. The boom happened so quickly that players did not have the time to rethink IT systems and find the right tools to serve the industry. We created Docunify to remedy the weaknesses and inefficiencies of data management and document collaboration. Digital solutions will become ever more relevant to guarantee efficiency in the future. ×
BRAND VOICE
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Perspectives
Change for better
Full speed ahead for investment funds
The growth of Private Equity market
Jens Hoellermann Managing Partner Intabulis SCSp
Locif Choulak Tax adviser Frank van Kuijk Investment Management and Tax Partner Loyens & Loeff
Arnaud Garel-Galais Group Head of Coverage & Business Development PERES Global Services CACEIS
Most trends are not directly Luxembourg related like ESG, as they concern the industry itself. Asset managers have to accommodate these requirements. However, the Grand Duchy already has a strong track record on ESG matters and provides a leading platform for sustainable finance.
The trend of onshoring alternative investment funds (AIF) to Luxembourg continues to gain traction. This trend is driven by getting access to capital destined to be invested in onshore vehicles, the fund managers’ focus on EU assets and easy access to EU investors through passporting rights.
Another trend is digitalization. Technology and data-informed decision-making will become crucial to drive operational and cost efficiency, which will include tax, compliance, cybersecurity and operational due diligence or even deal sourcing.
When setting up an onshore fund, Luxembourg tops the shortlist. The Luxembourg Special Limited Partnership, without being subject to a specific fund regime (SICAR/SIF/RAIF), is by far the dominant fund vehicle. Product laws and other legal forms are used, but only if they e.g. better support capital raise, come with certain tax benefits, or serve as funds with multiple compartments.
Photos → Intabulis SCSp → Loyens & Loeff → Jan Hanrion / Maison Moderne → CACEIS
A further trend is the demystification of the industry. While it tended to be reclusive, investors and the public ask for a more open dialogue. But it is not only about more openness. Alternatives become more attractive to retail investors. Fund of funds have recently been set up to allow them to invest in private equity. And the text of AIFMD II has now been agreed. Besides amendments to pre-marketing and reverse solicitation, Britain’s withdrawal from the EU might have the biggest impact on Luxembourg. It is thus expected that further asset managers will either relocate, open an office or increase their staff. But alternative firms have to maintain an adequate level of local activity and substance in Luxembourg. Its labor market needs to cope with it and thus calling for more education. LPEA and Sacred Heart University Luxembourg joined forces to create a certificate specifically designed on alternative asset classes to meet the demand for skilled employees. ×
The majority of Luxembourg AIFs use a Luxembourg based third-party provider as their fund manager (AIFM). More sizable managers consider to launch their own Luxembourg AIFM typically building on existing Luxembourg substance dedicated to their investment structures. Other managers make use of non-EU AIFMs, to the extent they do not need the benefit of a marketing passport. The substance in a fund structure is typically concentrated in the fund’s master holding company. The release of the Bill of Law implementing the EU Anti-Tax Avoidance Directive II cleared up most of the concerns raised around the potential adverse tax impact these rules could have on funds and their investment structures. Since then, it is full speed ahead again for the Luxembourg investment management industry. ×
In the past 10 years, global private equity assets under management (AuM) have doubled. Over the same period in Luxembourg, private equity AuMs have quintupled. In a recent survey of 640 Luxembourg-regulated private equity funds conducted by Deloitte and the Association of the Luxembourg Fund Industry, AuMs had reached €88.5bn. The private equity landscape in the Grand Duchy is predominately populated by funds of €100m or less but in recent times, a rise in the number of large funds (i.e. those over €500m) now sees them represent over 4% of the total. Indeed, in terms of fund houses themselves, of the 10 largest worldwide, 9 are doing business out of Luxembourg. And this really is worldwide, not just Europe, as North American private equity houses represent 8% of Luxembourg’s total private equity holdings. Private equity worldwide is clearly in a golden era, and in Luxembourg specifically, all the stars have aligned to place it in a central position as a major global hub. Its private equity market is forecast to reach some €290bn by 2025, growing 10% yearly, driven in part by further Brexit uncertainty, tightening monetary policy in North America and Europe, and the expected boom in the younger Asian private equity market. However, it is the quality of Luxembourg’s comprehensive support environment that will be by far the greatest driver of Luxembourg’s continued private equity success. ×
ADVERTORIAL
Why is Sustainable Finance important for your organisation, and how is it preparing itself in order to meet client/partner needs related to this topic?
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SACHIN VANKALAS LuxFLAG
t Fidelity, we have developed an approach to sustainable investing that is built on three related elements: integrated ESG analysis, corporate engagement and collaboration. Each of these elements is designed to help identify companies which operate with high standards of corporate responsibility. Different funds will have varying levels of focus on sustainability within the investment process, with the strongest application of the approach within our Sustainable Family of Funds. We are convinced that these elements complement each other and increase our likelihood of success in enhancing investment returns for our clients. Through our bottom-up research process we gain in-depth understanding of sustainability issues. Our assessment of companies’ sustainability metrics is integrated throughout the investment process across our key investment teams. We have invested considerably in developing our proprietary Fidelity Sustainability Ratings system, which gives our teams a comprehensive and unique mine of information. The system is expected to cover a universe of over 3,000 issuers by the end of 2019. We believe engagement is key to improving issuer behaviours over the long term. Our CEO, Anne Richards, summarises it well: “Our aim is to encourage companies to think about things which are not yet financial but soon will be.� It is only by collaborating with others that we can deliver improved sustainability outcomes for our investors and for the society as a whole.
SANELA KEVRIC Fidelity International
S
ocial consciousness of sustainability issues is rising and applying pressure to business practices. Public opinion and new regulations will make sustainability considerations unavoidable for business and finance. Reason why sustainability should be at the forefront of finance. Placing ESG considerations at the heart of an organisation is an inevitable step towards more sustainable growth and better performance. Consistently integrating ESG considerations into business decisions is not only an indicator of good business, as shown by recent studies, but a global necessity. The fact is that FIA A.M., part of FARAD Group, has realised at a very early stage that Sustainable Finance was key to a growing future. This value lies within the DNA of FIA A.M, as indicated by being one of the only two certified B-Corp companies in Luxembourg, validating that it has long integrated sustainability into its culture and practices, whether at the level of the company itself, its sustainable investment offering or its impact on the community. Asset managers like FIA A.M., who have a specific focus on Sustainable and Responsible Investing (SRI), have a keen interest in demonstrating the transparency and accountability of their investment process linked to ESG criteria on 100% of their portfolios. Our selection of Best of SRI funds demonstrates this transparency on the methodological approach. Together with our ESG investment strategy, the implementation of strong governance and measurement in detailed reporting to investors allowed our funds to obtain the LuxFLAG ESG label, an internationally recognised label promoted by the Luxembourg Labelling Agency LuxFLAG.
CHARLES LAMOULEN FIA Asset Management
ADVERTORIAL
T
he Luxembourg Institute of Science and Technology (LIST) is a research and technology organisation with a strong interest in environmental research. We see our role as contributing our research on sustainability assessment using a life cycle approach to ongoing efforts by the financial sector to assess the sustainability of financial products. For example, we are evaluating the life cycle greenhouse gas emissions of green bonds and funds and comparing our assessments to current sustainability assessment methodologies, which often lack transparency and robust scientific foundations. Life cycle assessment allows us to take into account not only the greenhouse gases emitted throughout a product’s life cycle (i.e., from production to use and disposal), but also quantify a larger set of environmental impacts on ecosystems and human wellbeing, such as water pollution, metal depletion, and land use. Sometimes not taking into account these impacts can make one project appear more favourable than it actually is, leading to suboptimal investments from a sustainability standpoint. Efficiently and accurately assessing the environmental impact of investments is important to any Sustainable Finance strategy. We hope to continue to address this issue in particular and to increase our involvement in Sustainable Finance, and look forward to transferring our research to the market through partnerships with financial institutions in Luxembourg.
ENRICO BENETTO LIST
A
I
RUDI BELLI Spuerkeess
ROBERT VAN KERKHOFF BNP Paribas Securities Services
centrepiece of the Luxembourgish ecosystem, Spuerkeess plays an important role in the implementation of the Sustainable Development Goals (SDG) set forth by the UN and the Paris Agreement on Climate Change. As a leading financial institution in Luxembourg, Spuerkeess can provide significant input and impulse for long term growth through the promotion of the key principles of Sustainable Finance which are hence becoming crucial ingredients of its business model. This may sound self-explaining, however the reality is often somewhat different as the value perception of a company is sometimes reduced to its mere contribution to the “shareholder value”, meaning that short term perceptions are prevailing over long term considerations. We are however convinced that the value and the benefit of a company for the society will be determined in the future in terms of its contribution to the increase of the “stakeholders’ value”. In order to do so, Spuerkeess is elaborating a Financial Sustainability Roadmap by applying the recently signed guidelines of the “Principles for Responsible Banking” on its business areas which will be assessed internally as having a relevant impact, including the retail loans and the corporate clients financing activity. Moreover, our vision of a sustainable future is shared by our long-time subsidiary and partner “BCEE AM” which signed the “Principles for Responsible Investment” in 2019. Finally, the overall application of ESG criteria by Spuerkeess on its own portfolios as well as on the investment advisory services for its clients is another field of activity which will enter into the remit of Spuerkeess’ future action plan. As a matter of fact, Spuerkeess provides its clients already today with a large variety of products and services such as a special savings account “Etika” or the sustainable investment fund “Lux-Bond Green” launched a few days ago.
n October 2017 BNP Paribas launched a Company Engagement department. The goal is to accelerate our sustainability initiatives, i.e. solutions for clients and communities that have a positive impact on the environment and society. These initiatives are aligned with the 17 UN Sustainable Development Goals. Today, BNP Paribas has a dedicated Sustainable Finance programme to build a better and fairer world by fostering positive impact financing, responsible investing and asset servicing. It relies on the expertise of over 500 employees. The broad range of sustainable finance products that we have developed to meet our clients’ and partners’ needs include: Green/Sustainable bonds where proceeds of bonds are used to finance projects with environmental and/or social benefits ; Green loans – loans dedicated to projects eligible for the Green Loan Framework ; Sustainability Linked Loans – a revolving credit facility (or term loan) with pricing mechanism linked to a company’s overall ESG performance; ESG reporting – data and analytics on the ESG risks held within an investor’s portfolio. Our commitment to sustainability goes beyond the products we are developing for clients. It impacts our culture and our values, not least our own operations and carbon footprint and our movement away from supporting investment practices that run contrary to a sustainable future. For that reason we do not finance companies and infrastructures whose main activities are linked to shale gas and/or shale oil and/or oil sands. Nor do we finance and invest activities related to tobacco. We are extremely proud that BNP Paribas was named World’s Best Bank for Corporate Responsibility by Euromoney earlier this year, as we are of the growing success of the digital voluntary carbon off-setting platform ClimateSeed, BNP Paribas’ first social business.
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A DYNAMIC SPACE
NOVEMBER/DECEMBER 2019
Luxembourg Tech School founder, Sergio Coronado, shown here at the Luxembourg House of Financial Technology. Coronado says the next challenge for the non-profit will be to stabilise funding because “we never planned to be part of the education system 100%, because then we lose this possibility to bridge and be dynamic”. ↳ www.techschool.lu
interview
Technology
Not just a coding school Luxembourg Tech School founder Sergio Coronado is hoping project-based learning--addressing real business problems-will be the solution to developing the digital leaders of tomorrow. words photo
Natalie A. Gerhardstein Matic Zorman
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2017 Eurostat report showed that in Luxembourg, 6 in 10 ICT jobs were hard to fill. “Instead of complaining, myself and three other people decided to do something about it,” says Sergio Coronado, founder of the Luxembourg Tech School. He says he noticed there was a gap in the education system and so began developing a virtual school with a targeted programme, where teenagers in their last three years of high school, aged 15-19, can train to become future digital leaders. Coronado says he quickly received support from the education ministry and Digital Luxembourg.
“The programmes are built on a business component,” he says. “We’re not a coding school. We give them a context, a business need or problem, and then the technology to solve the problem. It’s very powerful.” What initially started off as a one-year programme in 2016 with 32 graduates has since developed rapidly, in part due to the motivation of the students themselves. Today, LTS has around 110 students, split nearly 50-50 between females and males, with possibility for students to “level up”. Level one focuses on game development, big data and financial tech. Each module lasts about three months, culminating in a competition, tech showcase and fintech hackathon, respectively. Level two gets into space resources and AI for finance, with more to come in 2020. To maintain quality, Coronado says he wants to target a maximum of 150 students in a single year. “A big challenge for us is to revise the content every year because it changes, and we make sure the younger generations get the latest, because by the time we go to the market, it would already be obsolete… we need to keep the content alive.” LTS promotes not only tech and an open, dynamic environment--built on teams, with minimal help from the coaches so students help each other with problem-solving--but it also shows industry that youngsters are ready for such challenges. Coronado is actively trying to address the “chicken and egg” situation, where employers may be reluctant to hire those lacking experience, but youngsters will never be able to prove their worth if not given opportunities. And so LTS also developed “Learn to Work” so that students get support from industry. Coronado says the target in January was to offer 1,000 hours of paid work in total--10 students at 100 hours each--but by summer, they’d already doubled that goal. ×
BRAND VOICE
1st
Photo → Jan Hanrion (Maison Moderne)
← Jérôme Wiwinius, Head of Corporate Sales at LALUX
How can companies best protect themselves from business-related risks?
Whether it’s exposure to fire, water damage, theft or other financial losses, our complete range of customised insurances cover a wide range of business assets, such as buildings, equipment, vehicles and merchandise. The idea is to help company leaders concentrate on their core business deeds without having to worry about the protection of goods. Of course, leading a business also means engaging your personal and your employees’ civil liability. Civil liability insurance covers protect a company and its executives from legal and civil risks. What types of insurance are particularly sought after by self-employed professionals ?
Insurance
Risk-controlled business Whether leading a large company or a small SME, choosing the right insurance partner is crucial for a company’s protection at operational and at staff level. Jérôme Wiwinius, Head of Corporate Sales at LALUX, provides insights into navigating the business insurance market for customised solutions.
sponsored content by
LALUX
Why is business insurance so important in this day and age?
Since 1 January 2019, SME owners and self-employed workers can also sign up for supplementary pension schemes, including coverage of death and invalidity. Already end of last year we put in place a highly flexible, digital product for self-employed workers, where the insurance proposition can be signed remotely (via digital signature). A very complete insurance product is now available to professionals of this type, including fleet and property insurance, civil liability and health management.
Today’s business environ- How has LALUX positioned itself in the ment is exposed to an ever growing number Luxembourgish insurance market? of risks, from extreme weather conditions Our three insurance companies – life, nonto cyber attacks. Our part of the world is life and health – are among the leaders in the becoming more prone to natural disasters, Luxembourg insurance market. Founded making property insurance more vital than in 1920, we are the oldest Luxembourgish ever. Additionally, as many companies are insurance company and to this day construggling to find highly skilled talent, it’s sist (besides the Spuerkeess that helds 40% key to attract and retain staff by offering of the shares) of exclusively Luxembouran extensive range of employee benefits gish and family-owned shareholding. Our 470 employees and 1300 agents are all multirelated to insurance. lingual, with many of them speaking LuxemWhich social security benefits are bourgish. As we are independent from large particularly attractive to employees? international groups, we are less vulnerable to While Luxembourg’s legal pension system the turbulences of the financial market. × is very generous, this might not always be the case in the future, so it will become more and more crucial to have a supplementary pension. Our corporate supplementary pension schemes are tailor-made to match a company’s budget and coverage To find out more about LALUX, visit choice. Besides offering tax optimisation www.lalux.lu of the salary package and tax deductibiljérôme wiwinius
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Insurance
↑ LALUX is the first preferred insurance company and 4th preferred brand in Luxembourg (taking all sectors into consideration), according to a KPMG study on client satisfaction in 2019.
ity of operating expenses, the schemes give employees the possibility to invest in ESG or green funds among others. The health group contract with flexible insurance schemes is another core product of LALUX which we offer through DKV Luxembourg, which belongs entirely to the LALUX group since 2015. Besides this, business travel and accident insurance are also sought after products.
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NOVEMBER/DECEMBER 2019 interview
Employment
Keeping recruitment human Darren Robinson of recruitment firm Anderson Wise, a guest panellist at Delano Live in November, says that technology, while useful, cannot replace the human element when it comes to pinpointing suitable talent. words
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ith new technology and social media at their fingertips, modern recruiters can look up profiles and post jobs, reach candidates much more quickly than they could 15 or 20 years ago. Yet, says Darren Robinson, despite all this aid to productivity, recruiters are placing no more candidates on average into permanent positions than in the 1990s. “In the 90s and even 15 years ago we were in the selection business. Now we are in the rejection, or, as I like to call it, the redirection business,” the founder and director of new recruitment company Anderson Wise explains. “We spend 80% of our time saying no; explaining that people don’t have the right skill set for a job.”
Duncan Roberts
photo
Mike Zenari
Robinson says it is essential in a small place like Luxembourg to get back to candidates. Not that he is complaining. After all, he says, “ten years ago, recruiters, HR, everyone really, would have predicted that by 2020 recruitment companies would no longer exist. Well, 2020 is a few months away, and there are more of us than ever!” Part of the reason for that may be that certain aspects of recruiting, and processes that could have been automated, have not evolved as fast or as far as anticipated. “There is some technology out there that I believe is capable of selecting candidates better and faster than human beings. But they are finding that information from what is a traditional CV. And a traditional
CV is only showing what candidates have done, rather than what they can do.” Getting AI to learn differently
Equally, Robinson argues, recruiters are still, in many cases, using the same methods they did 20 years ago. So, applicant tracking systems that reject a CFO for a CEO role because their CV shows they don’t have particular leadership experience, for example, leads AI to learn that CFOs are not suitable for CEO roles; which is not necessarily the case. “So how do we get the AI to learn differently? Some of the thinking is that candidates can prepare different versions of themselves.” For instance, by creating a CV that highlights the compe-
← Darren Robinson of the recruitment firm Anderson Wise
The retail wine business September’s Delano Live event asked what it takes to run a wine shop, what are the biggest challenges and rewards, and what’s the outlook for the retail wine trade in Luxembourg. Answering the questions posed by Delano’s Aaron Grunwald were Christian Betzen of Amcellars and Guy Tabourin of Vinoteca. ↳ www.delano.lu
1 Delano’s Aaron Grunwald with guest speakers Christian Betzen and Guy Tabourin 2 Daniel Rinaldis, Paula Ringeviciute and Margot Richert 3 DJ Julien Lion 4 Jessica Mero 5 Jacques Montalto and Michelle Barry 6 Gilles Christnach, Noémie Courtois and Sarah Huin
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A new generation
Other technology can scan a recruiting company’s online presence and identify potentially suitable candidates based on their comments on Facebook or Linkedin, for example. “We’re talking about big data here. I believe there is room there to convert that into identifying people for the right companies. But are we prepared to allow AI to select candidates?” Another challenge is that recruitment is still based on the traditional way that companies operate. But the generation that Robinson believes is already here doesn’t necessarily want to work for companies with a traditional hierarchy and structure. They want something different, which sometimes makes it more difficult for a recruiter to identify specific skill sets. “Hiring in the new gig economy, where people want to work on interesting projects for different companies, might be managed through algorithms and technology without any interaction from a recruiter,” Robinson reckons. “But I think we’re still a long, long away from that.” × ↳ www.andersonwise.com
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COMING UP Delano Live
Delano Breakfast Talk
Delano Live, organised by the Paperjam Club and sponsored by ING, features live on-stage interviews with people and on topics covered by Delano magazine, but with a fresh perspective. That’s followed by an open bar and a bit of networking.
Luxembourg for Finance CEO Nicolas Mackel on attracting talent to the grand duchy. Tuesday 26 November, 08:15 Sofitel Luxembourg Europe
Next up: The best of times, the worst of times: a review of 2019 Tuesday 10 December, 18:30 Knokke Out, Rives de Clausen
Win tickets for Delano Live: ↳ www.delano.lu/agenda
Delano events
tences of a CEO and using social media profiling, while also ensuring the more technical CFO skill sets are represented. Robinson is surprised that some of the technology that was being hailed as breakthrough in the last ten years has not been picked up and developed fully. There was, for example, video software that was able to read people’s micro-expressions--the unique ticks that most people don’t observe but that we all have and can be used as a “tell” to reveal certain emotions. “The technology could feed information about these micro-expressions into the interviewer’s ear, maybe prompting them to dig deeper on a particular question.” At Anderson Wise, Robinson managed to implement one of the best applicant tracking systems available. “It has quite a few bells and whistles. Gartner recently rated it the number one system for recruiters. It connects to social media really well. It has some AI learning. It has reverse matching technology. It is one of the best products you can buy, but is it enough? Probably not. It is making us more efficient, but not to the degree I would have expected to see.”
DELANO LIVE
1
Agenda
NOVEMBER/DECEMBER 2019
Luxembourg Chamber of Commerce
Women in Digital Empowerment
The Culture Factor
Women Founders
“Recognising the importance of culture in the business world is an important step toward success in the global marketplace for any business sector.” Friday 15 November, 09:00-17:00
Taina Bofferding, the equality minister, and several female entrepreneurs speak at this event dedicated to “successful women in tech and startup founders”. Wednesday 27 November, 18:00-20:00
House of Entrepreneurship
↳ www.wide.lu
Digitalisation & GDPR
Luxembourg Bankers Association
A two-part workshop on complying with the EU’s General Data Protection Regulation.
Banque Internationale à Luxembourg
Luxembourg Chamber of Commerce ↳ www.cc.lu
Here is a selection of 10 upcoming business, informational and networking events for Luxembourg’s international community.
Fintech speed dating
Tuesday 3-Wednesday 4 December, 17:30-19:30 House of Entrepreneurship ↳ www.houseofentrepreneurship.lu
A chance to network one-to-one about the use of artificial intelligence in the banking sector. For members and prescreened startups only. European Microfinance Platform
European Microfinance Week
Thursday 28 November, 18:00-22:00 La Réserve, Limpertsberg ↳ www.abbl.lu
Laura Hemrika of Credit Suisse speaks at this three-day conference on financial inclusion, which includes the annual European Microfinance Award ceremony. Wednesday 20-Friday 22 November Neumünster Abbey ↳ www.e-mfp.eu
Delano
Work, Live & Luxembourg Nicolas Mackel of the Luxembourg for Finance promotion agency briefs HR and communication professionals on recruiting talent to the financial sector post-Brexit at this Delano Breakfast Talk. Tuesday 26 November, 08:15-09:30 Sofitel Luxembourg Europe, Kirchberg ↳ club.paperjam.lu
UNEP FI & GLF
Breakthroughs in Sustainable Finance Pierre Gramegna, the finance minister, speaks at the UN Environment Programme Finance Initiative and Global Landscapes Forum joint European regional conference on “how capital markets can contribute to a sustainable low-carbon economy”. Thursday 28-Friday 29 November, 09:00-17:00 European Convention Center ↳ www.luxembourgforfinance.com
British Chamber of Commerce
ABBL & Alrim
Workplace of the Future
Risk Management Conference
The BCC’s “people and leadership group” hosts its third (of four) breakfast workshop on the changing nature of workplaces.
The Luxembourg Bankers’ Association and the Luxembourg Association for Risk Management host their fourth summit that will “explore the latest trends in banking risk management”.
Wednesday 4 December, 08:30 To be announced ↳ www.bcc.lu
Wednesday 11 December, 14:00-17:30 BGL BNP Paribas, Kirchberg
Association of the Luxembourg Fund Industry
↳ www.abbl.lu
Tax talk Flora Castellani of the UEL employers’ federation speaks at this conference that “will bring together tax experts and practitioners from across the investment fund industry”. Wednesday 5 December, 08:00-16:25 EY, Kirchberg ↳ events.alfi.lu Find more events Check Delano’s digital agenda for the latest happenings: ↳ www.delano.lu/agenda
Photos → Omar Lopez/Unsplash → Association of the Luxembourg Fund Industry → Matic Zorman → Matthew Henry/Unsplash → Marvin Meyer/Unsplash → Taskin Ashiq/Unsplash
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DATE 10 December 2019
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CONTACTS & APPLICATIONS Julien Delpy julien.delpy@maisonmoderne.com (+352) 20 70 70-415 Magali Larese magali.larese@maisonmoderne.com (+352) 20 70 70-402
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THE NEW “SHOP IN SHOP“ CONCEPT IN OUR CACTUS HOWALD La Belle Etoile SUPERMARKET Bascharage
Bereldange
Echternach
Let yourself be seduced by the irresistible taste of fresh sushi prepared in front of you. Stop choosing between quality and taste, Eathappy brings both together !
Esch-Lallange
Howald
Ingeldorf
The Source A guide to culture and lifestyle
80 Interview
86 Special feature
it Innovation Keeping personal and discovery Rockhal supremo Olivier Toth on how the venue is enhancing the customer experience and encouraging emerging artists
Gifts for that special someone
94 Kids page
Celebrating St. Nicolas A guide to the local tradition; plus other ideas for entertaining the offspring
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80
profile
Music
NOVEMBER/DECEMBER 2019
Innovation and discovery Rockhal supremo Olivier Toth talks about the changing face of the venue, its place in the European scene and the joy of unearthing new acts at the Sonic Visions showcase.
V
isitors to the Rockhal in Esch-Belval recently will have noticed one striking innovation at the venue. The bar in the foyer, once a place swamped by long queues of thirsty punters, is now a state-of-the-art installation with increased capacity and super-fast draught pumps. Olivier Toth explains that venues like the 6,000 capacity Afas Live (formerly the Heineken Music Hall) in Amsterdam have 60 metres of bar. “That is unthinkable inside the Rockhal, so we had to really take a deep look into the possibilities that we have.” The result is a bar with three sides that doesn’t intrude too much into the foyer space and now has 13 points of sale instead of eight and three pouring islands that have the ability to pour four 0.5l beers in around eight seconds. The new bar and new lighting concept also tackles another challenge the venue has faced since it opened, namely that “the foyer must be big enough for the big capacities and must not be too big for the smaller capacities. I think it is now more welcoming.” Customer experience
words
photos
Duncan Roberts Matic Zorman
The upgrade, complete with digital signage that can display different content and
i nformation that will allow the venue “to talk in a better way to our customers”, is all part of what Toth hopes will significantly improve audience hospitality at the Rockhal. After all, he says, efforts have been made constantly since the venue opened in 2006 to ensure that the artists are happy, with new technology allowing more flexibi lity to host shows of pretty much any size and shape--including a memorable 3600 show by Arcade Fire in 2017, or a string of performances by Cirque du Soleil in 2016. But there’s even more in the pipeline for 2021 to enhance what Toth calls the customer experience. “We’re thinking about bringing in a balcony that floats over the floor to offer more flexibility to the music fans that come to the shows. There’s a trend in big venues that for a lot of shows people would like to sit. But if we bring in a bleacher, it takes out a lot of capacity.” Other ideas include extending events with an “after-show” so that those fans who don’t want to rush home after a gig can stay on, relax and enjoy some music, food and drinks. Toth also wants to develop the connection between the Rockhal as a venue and the Rocklab, the third-floor space that →
81
↑ Olivier Toth CEO and general manager, Rockhal
Music
“ We’ve been active for many, many years in different platforms on the European scale.”
NOVEMBER/DECEMBER 2019
houses rehearsal rooms, a recording studio and media library for use by musicians. For example, before playing a show, artists would give masterclasses to musicians and fans. One of the opportunities to showcase this innovation is the upcoming Sonic Visions conference and festival. Now in its 12th year, the conference attracts music professionals from Luxembourg’s neighbouring countries but also further afield in Europe, Toth explains. “We’ve been active for many, many years in different platforms on the European scale.” There’s the Live Europe network of venues committed to promoting up-and-coming European artists, there’s the INES programme for European showcase festivals like Sonic Visions, and there’s Multipistes, which sees players in the Greater Region scout, support and promote bands and artists from these territories. Around 500 professionals descend on the Rockhal, but Toth explains that the event needs to maintain a format that is manageable. “It’s really important for us that at the event, everybody can literally speak to everybody else.” Carte blanche
As for the music festival itself, Toth says he allows his bookers--Arnaud Velvelovich and Paul Bradshaw--carte blanche on picking the line-up. “A few years ago, we decided that we’re not going to go for big headliners for Sonic Visions because we realised that the big names didn’t add to ticket sales. So, we thought, well, let’s just go and focus on emerging artists, but at the same time let’s focus on the trends, let’s look at the market and see where the hot new things are.” The new approach worked with the audience, which has become much younger, says Toth. Often, because artists are booked well in advance, by the time they arrive to play Sonic Visions, they have become household names as happened with Rag’n’Bone Man in 2015. “We’ve seen a lot of hip hop over the last few years and we’ve seen a lot of poppy stuff and electronica emerge.” By contrast, Toth picks out Norwegian virtuoso guitar-drum duo Aiming for Enrike as one of the artists that he has followed since they played Sonic Visions to rapturous acclaim two years ago. “That’s one of the fun things about the festival… discovering artists that maybe you don’t know.” Looking even further ahead to 2022, when Esch will be the cultural capital of Europe, Toth is wary of revealing any details of the discussions he has had with the organising committee but says that the Rockhal will be pushing innovation and creativity. “You know, the Sonic Visions and Rocklab spirit will be out forward. And then, we’re working on some very crazy things.” ×
SONIC VISIONS This year’s Sonic Visions festival features 28 artists performing over two days on four stages. The line-up is a mix of local acts, emerging international talent and two fairly well-established artists in the shape of Irish singersongwriter Dermot Kennedy and Belgian indie pop group Balthazar. Delano’s pick of the bunch includes Berlin’s energetic live techno band Komfortrauschen (photo, top), soulful British experimental artist Eckoes (photo, bottom), Vienna’s hip hop-jazz outfit Sketches on Duality, and London’s wonderfully joyful jazz afrobeat quintet Ezra Collective. 15 & 16 November Rockhal, Esch-Belval ↳ www.sonicvisions.lu
Photos → Komfortrauschen → Eckoes
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Season 19/20
Scala
Sat 21 Dec 14:00 & 20:00
Yoann Bourgeois, prodigy of bodies in balance, created a truly exceptional show of chain reactions in which eight acrobats and dancers challenge fear and gravity.
© Géraldine Aresteanu
At the Rockhal
theatre.esch.lu / +352 27 54 – 5010 ou – 5020 www.rockhal.lu / +352 24 555 1
On stage
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Fascinating theatre and opera, avant-garde music and a jazz legend
Footnotes The latest production from the Independent Little Lies collective is based on a text by Claire Thill and directed by Jenny Beacraft. It explores the “questions, research and sense of responsibility” women have in a “world where the battle for equality is not yet won”. It is, says the company, “a collective cry for protest”. The show stars Thill alongside Frédérique Colling, Damian Diaz, Stephany Ortega and Elsa Rauchs, and features music by the talented Emre Sevindik.
Pop
Chambre Noire
Björk
A multimedia show in English that explores the outrageous personality that was Valerie Jean Solanas--perhaps most famous as the woman who shot Andy Warhol. This “stunning work of art” --as The New York Times puts it-features life-sized marionettes and film projections and has been described as a “raging hallucination”. 22 November Rotondes, Luxembourg-Bonnevoie ↳ www.rotondes.lu
14 & 15 November (also 10 December at TNL) Escher Theater, Esch-sur-Alzette ↳ www.theatre.esch.lu
Jazz
Herbie Hancock The pioneering musician and composer comes to the Philharmonie courtesy of Rockhal. Hancock, now approaching 80, has won an impressive 14 Grammy Awards. He joined the Miles Davis quintet in 1963 and has since played with numerous jazz greats and also veered into electronic pop on acclaimed 1983 album “Future Shock”. His current touring band features James Genus on bass, Lionel Loueke on guitar and vocals, and Justin Tyson drums. 16 November Philharmonie, Luxembourg-Kirchberg ↳ www.philharmonie.lu
words
Duncan Roberts
Find more events Check Delano’s digital agenda for the latest happenings: ↳ www.delano.lu/agenda
The Icelandic pop icon stops off at the Rockhal, courtesy of den Atelier, for a show on her “Cornucopia” tour. The show features a surround-sound installation, a 52-member Icelandic choir, outlandish costumes, theatrics and innovative video projections. It was described by Rolling Stone as a “swirling phantasmagoria”--songs like ‘Venus as a Boy’ have been rendered almost unrecognisable in the context of the abstract multimedia show. 16 November Rockhal, Esch-Belval ↳ www.atelier.lu Photos → ILL → Stas Levshin → Abu Dhabi Festival → Warren Du Preez & Nick Thornton Jones
NOVEMBER/DECEMBER 2019
Theatre
Multimedia theatre
85
On stage
TOP PICK Theatre
Dealing with Clair
Classical
Orchestra Mariinsky Theatre
Electro-indie
Hot Chip
The acclaimed but controversial Valery Gergiev conducts the Orchestra of the Mariinsky Theatre in a concert of works by Sergei Rachmaninoff. It includes the Russian composer’s 1st symphony, a work that was lost following the 1917 revolution but revised after WWII, by which time Rachmaninoff was dead. The “Symphonic Dances”, his last composition, is also on the programme. 18 November Philharmonie, Luxembourg-Kirchberg ↳ www.philharmonie.lu
Luxembourg director Anne Simon takes on an early work by British playwright Martin Crimp. “Dealing with Clair” is set in the yuppie culture of the 1980s and ultimately tackles “the psychological violence of a white-collar world where money talks, the moral ambivalence of the middle classes and (...) men’s abuse and belittlement of women”. A strong cast of Simon alumni almost guarantees this will be as impressive as the director’s last outings at the Capucins, January’s “Stupid Fucking Bird”, 2017’s “Love and Understanding” and 2016’s “All New People”.
London electro-synth quintet Hot Chip has just released seventh studio album, “A Bath Full of Ecstasy”, to critical acclaim. Some reviewers noted the apt title, saying the record had “both heart and soul” and that the band has “seldom sounded as youthful and carefree”. Live performances at festivals over the summer had fans and critics raving alike, so this sounds like a perfect show for a festive end-of-year blow out. 4 December den Atelier, Luxembourg-Gare ↳ www.atelier.lu
26 November-7 December
Photos → Alberto Venzago → Jeffrey Harmann → Nader Ghavami → Dan Aucante → Stara Zagora national theatre
Théâtre des Capucins, Luxembourg-Centre ↳ www.theatres.lu Dance
Visual concert
Reich-Richter-Belz Composer Steve Reich (photo), painter Gerhard Richter and filmmaker Corinna Belz have teamed up for a visual concert in which Reich’s music enters a dialogue with one of Richter’s paintings. The Ensemble Intercontemporain from Paris, conducted by George Jackson, performs 1967’s “Piano Phase”, 1979’s “Eight Lines” and new work “Reich/Richter”. 24 November Philharmonie, Luxembourg-Kirchberg ↳ www.philharmonie.lu
Blanca Li Spanish choreographer Blanca Li plays with the auditory and visual perceptions of her audience in latest work “Elektrik”, which blends electro, baroque and industrial influences. It features eight male dancers and music scored by Tao Gutierrez and has been described as “a joyful and bright performance for the whole family”. 10 & 11 December Grand Théâtre, LuxembourgLimpertsberg ↳ www.theatres.lu
Opera
Love and Jealousy Two one-act operas by Luxembourg-based Bulgarian composer Albena Petrovic feature soloists from the State Opera Stara Zagora and the local contemporary music ensemble United Instruments of Lucilin. “The Lovers”, with a libretto by Svetla Georgieva, and “Jealousy”, with libretto by Peter Thabit Jones, both tackle the overarching theme that love is stronger than reason. 6 & 7 December Théâtre National du Luxembourg, Luxembourg-Merl ↳ www.tnl.lu
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special feature
Gift guide
NOVEMBER/DECEMBER 2019
Keeping it personal With the start of the bustling holiday season upon us, it can be easy to lose focus of what really matters. Delano spoke with three locals who have not only honed their crafts--embroidery, ceramics and photography-but also offer those who may not be as artistically gifted a chance to put a touch of the personal back into gift-giving.
W
words
photos
Natalie A. Gerhardstein Patricia Pitsch/Maison Moderne
hen Delano set out to find personal gifts, word-of-mouth marketing went a long way. Take Les Sûtras, for instance: this company produces high-quality linens and is regularly recommended on social media for those who want to make a personal gift or to mark a special occasion, such as a birth or a wedding. Christophe Van Biesen, a fine art photographer who has made a name for himself locally in landscape photography, also gained traction through social media long before launching his first book this year (he’s also the artist behind the photo exhibition “Home & Away”, taking place at the Am Tunnel art gallery until midApril 2020). And Annika Lofqvist behind
Nordic Stella and its range of ceramics moved to a new space this February-bigger and better for workshops. Not only do all three of these businesses offer a range of personalised products, but their three founders each recognise and appreciate the importance of collaboration, taking time to create a timeless piece, one that can be cherished across the years. We also turned the question around on our designers and photographer, asking each of them about the most personalised gifts they’ve ever received. They provided us with unique individual stories which, coincidentally, also featured gifts similar to their own lines of work. ×
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Gift guide
Annika Lofqvist My favourite personalised gift revealed: “I have two very good friends who used to live in Luxembourg [but] moved back to Denmark. I collect Christmas ornaments--whenever I go travelling, I buy a little piece from all over the world. [My friends] went to a designer market in Denmark and so I got [a] little hand-painted Christmas ornament. Every year when I take it out of the box and hang it on the tree, it reminds me of our friendship.”
Kiln it
Nordic Stella, formerly on the rue du Nord, moved into a custommade workshop space on rue de la Fonderie this February. It’s a space its founder, Annika Lofqvist, says she was lucky to find, even if “it needed a lot of work”. Although Nordic Stella offers ready-made products available for purchase, it also provides a variety of ceramics workshops, plus walk-in hours, where old and young alike can try their hand at decorating premade mugs, plates and other items, be it with special paints, stamps, letters, names, messages--even imprints, such as baby hand- or footprints. Lofqvist says it normally takes between one or two hours to complete a piece, and then it gets glazed
and fired, ready for pickup about one week later. In light of the upcoming holidays, Nordic Stella will be holding extra workshops for kids: “We’ll make sure all the kids make nice presents for their mums and dads.” Whether through these workshops, team building or birthday party events, Nordic Stella offers more than just a creative space for participants to create a personalised work of practical art. It’s also about the experience “for people to just come, be a bit mindful, sit and paint”, says Lofqvist. “It’s taking the time with your friends or children to do something together.” × ↳ www.nordicstella.lu @nordicstella
Threads that bind
88
NOVEMBER/DECEMBER 2019
Les Sûtras has garnered a strong word-of-mouth reputation when it comes to high-quality linens, scarves and embroidery. The company offers readymade products, the bold colour combinations of which founder Zenia Dutta Roy designs and then collaborates with artists--some based locally, some in India. But Dutta Roy equally enjoys helping customers personalise gifts. “We spend a lot of time understanding the person, who’s giving the gift, the intention and feeling behind it.” She’s learned some customers prefer a lot of thread work, others a more minimalist design, but details are hammered out through a collaborative approach (a 4- to 6-week lead time is ideal). Les Sûtras has provided customised
Zenia Dutta Roy My favourite personalised gift revealed: “My sister gave me a simple bag, but it had my name and colours I like. [There was also] a T-shirt with my name and the words ‘spread cheer’. I valued that a lot because every time I wore it, it reminded me to be happy and spread cheer. I’m at a stage in my life where I want to add value with whomsoever I interact. I want to give back to this country… it’s an important part of me.”
hand embroidery for weddings, births, anniversaries--any milestone people may want to cherish--but “it could also be a gift for yourself”, says Dutta Roy. “Everybody has their own style, and a home should also speak about you.” One of the most memorable fabrics she designed was for an individual living in Luxembourg who wanted to create a family tree for their mother living abroad, then turning 70. “They told me the budget and about their mother, and we figured out a circle family tree with the names of children and spouses. It was touching, even for me, that they were thinking about their mother so far away.” × ↳ www.lessutras.org
@Lessutras
Banque et Caisse d’Épargne de l’État, Luxembourg, Établissement Public Autonome, 1, Place de Metz, L - 2954 Luxembourg, R.C.S. Luxembourg B 30775, www.bcee.lu, tél (+352) 4015-1
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Christophe Van Biesen NOVEMBER/DECEMBER 2019
My favourite personalised gift revealed: “A long time ago, I received a gift from my mother for my 18th birthday. It was a photo collage of pictures from the first 18 years of my life which she had framed. Some of the photos were a bit embarrassing, but it was the most unique thing I got.”
Get the picture Belgian fine art photographer Christophe Van Biesen arrived in Luxembourg in 2008 and started taking photos in the capital which got the attention of local tourism agencies. His first book, “Luxembourg City Through the Seasons”, was released in summer 2019, in a small enough format so visitors can easily transport it as a souvenir. A personal touch can be added along with his signature: “I had somebody from a Chinese bank who bought a few of them for colleagues leaving Luxembourg, and she wanted a personalised message in each of them.” While he has a range of prints, postcards and acrylic glass blocks with his images ready for sale, Van Biesen has also been commissioned to take photos of locations which hold significant
meaning for others. “Recently I got an interesting request from a person with a particular painting of a view, they wanted the same view in a photo.” His calendars can also be tailormade for businesses--with, for example, the addition of a logo, message or mission statement. He also runs small photography workshops-in the Mullerthal and Hallerbos, Belgium’s bluebell forest, to name a couple--which start “excruciatingly early”, around 5 a.m., to get the “golden hour” of good light. Not everyone likes the early start, but Van Biesen says sunrise and sunset are his favourite times to snap photos. “The sky blows up with pink or orange or red, and then you get those really special moment.” × ↳ www.christophevanbiesen.com @ChristopheVanBiesenPhotography
BRAND VOICE
91
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Automobile
Automobile
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Photos → BMW Group Belux
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erfect travel needs an extraordinary is tailored perfectly to the driver but also vehicle--one that is both fascinat- the well-being of all passengers. Designed ingly luxurious and excitingly dynamic, to arouse emotion, the interior, with its turning every journey into an unforgetta- luxurious aesthetic and equipments, inble event. Designed with maximum com- stills an unparalleled feeling of freedom fort and functionality in mind, the first and security. A Bowers & Wilkins Diamond BMW X7 is the epitome of this type of surround sound system with no less than travel. It is where visionary thinking and 20 speakers creates a 3D sound experience, driving perfection become reality. while the dynamic interior lighting basks With the striking-looking BMW X7, even the inside in an ambient, indirect light. everyday trips become worth remember- A refined interior is the heart and soul of ing. Boasting a powerful vehicle body with any great vehicle. determinedly graphic lines, the BMW X7 No BMW would be complete withbrings together confidence, sportiness and out manifesting the latest technological sophistication. The centrepiece of the front innovations. Available as optional equipdesign is the large kidney grille, which ment are the BMW Personal CoPilot stands in contrast to the very slim, dynami- driver assistance, the Executive Drive Pro cally-contoured headlights. The 22 inch light suspension control system allowing for alloy wheels are both impressive and expres- stability in every situation, as well as the sive, radiating an unmistakable presence. xOffroad package enabling absolute safeMemories are born from spectacular ty on all roads. The Adaptive 2-axle air surroundings. The interior of the BMW X7 suspension makes for unsurpassed com-
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Find out more on www.bmw.lu/X7
Restaurant review
92
SOPHISTICATED COMFORT NOVEMBER/DECEMBER 2019
Chiche! Once a pop-up, Chiche has a new home in Limpertsberg, continuing its range of SyrianLebanese delicacies with grilled meats, baba ghanoush, halloumi and more. Chiche Luxembourg
Mesa Verde A relaxing yet colourful ambience, ideal for a business lunch or romantic dinner. Dishes, mainly vegetarian, tend to be Asian-inspired. ↳ www.mesa.lu/index.html
Mr Mai VietNam Food The best-kept secret in Bonnevoie--don’t let the exterior fool you. A simple menu includes authentic eats, from pho to bo bún. Consistently high quality and service. Mr Mai VietNam Food
Bazaar
Mediterranean comfort words
photos
Natalie A. Gerhardstein Jan Hanrion/Maison Moderne
On its menu, Bazaar explains its concept in a nutshell: “a place of meetings, exchanges and discovery”.
The open interior, with its art nouveau flair, is indeed bustling, if not a bit noisy. Despite the lunch rush, we were greeted swiftly. By the end of our lunch, every table had been seated. Skipping entrées, we went straight for the daily-menu mains, one of us opting for
an open-faced pita with roasted aubergine, falafel and pickled red cabbage, the other for a veal tagine with pumpkin and apricots. The vegetarian dish impressed with its play of texture--the tart cabbage, perfectly crisp falafels, pomegranate seeds bursting with each bite--although the minimal tahini left the dish a tad on the dry side. The tagine was cooked to perfection: the veal and pumpkin were tender, all in a sauce that was warmly spiced--real comfort on that wet, windy autumn day. Both dishes were served with za’atar-topped hummus, and the portions of rice
included fried grains, adding nice texture. The extra pita was ideal for the tagine although superfluous for the vegetarian dish. Despite generous portions, prices are fair. The service was outstanding. For dessert, we tried the “lemonista d’amour”, a bright, tangy celebration of citrus: lemon cream with a grapefruit meringue, balanced out with a short crust biscuit. The “shir berenj”, or rice pudding, included a pistachio crumble that popped with colour, and the use of edible flower petals was a nice touch. At first taste, it seemed it could have been one notch sweeter, but gradually the orange infusion and candied pistachios crept to the surface, making this a truly memorable dessert. It was served in a dainty lidded ceramic pot, and so it felt like being privy to some well-kept secret.
As we were enjoying a cup of coffee and fresh mint infusion, we noticed an elderly man seated alone in the corner, book in hand, laughing himself almost to tears at whatever he was reading. Indeed, it wasn’t just groups surrounding us that seemed to be genuinely enjoying themselves: solo diners will feel at home here as well. And if this is what the owners were going for, then they’ve succeeded. ×
Delano gives it:
46 place Guillaume II, Luxembourg-Centre 28 99 07 07 Bazaar
Kids page
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Celebrate St. Nicolas
While children from the USA and the UK receive their Christmas gifts
In Luxembourg, 6 December is an important day for children. Duncan Roberts
ALSO COMING UP
and many mainland Europeans celebrate Christmas Eve on the 24th, for Luxembourg kids, “Niklosdag” is the most important day of the festive season. Named after the patron saint of children, the 4th-century bishop St. Nicolas, the celebration on 6 December was this year added to the grand duchy’s formal list of national intangible cultural heritage. According to the myth told to local schoolchildren, St. Nicolas, or “Kleeschen” in Luxembourgish, comes down from heaven during the night of 5 to 6 December. He brings sweets and toys to those children who have been good during the year. Those that have been naughty are visited instead by Kleeschen’s wicked sidekick “Housécker”, who in place of treats leaves a broom made of sticks dipped in vinegar with which parents can meet out physical punishment. Traditional parade
Cache-cache
Wunderkammer
Advent circus
The La Guimbarde duo from Charleroi presents an awardwinning show with no dialogue, aimed at kids aged 2 and above. The performance is set at bed time for two youngsters who play a game of hide-and-seek, with all the excitement, anxiety and surprises that involves.
The Philharmonie will be transformed into a “cabinet of curiosities” on 1 December, as artists like Guy Frisch and Hanna Hartman, the Mivos Quartet and Percussion Under Construction perform a series of 20-minute concerts throughout the building, aimed at ages 6 and above as part of the rainy days season.
In what it calls “a modern homage to traditional circus”, the Cirque de Lux presents its traditional advent show under the big top on the Glacis. The show is animal free and focuses on acrobatic spectacle, light shows and slapstick comedy acts, to provide audiences with a contemporary and innovative experience.
14, 16 & 17 November Rotondes, Luxembourg-Bonnevoie ↳ www.rotondes.lu
1 December Philharmonie, Luxembourg-Kirchberg ↳ www.philharmonie.lu
29 November-31 December Champ du Glacis/Allée Scheffer, Luxembourg-Limpertsberg ↳ www.luxemburger-adventscircus.com
Many schools and local communes celebrate the tradition of Kleeschen with parties, and he always makes an appearance at the Red Cross Bazaar (held on Sunday 17 November) and at the Bazar International (over the weekend of 30 November-1 December). But the biggest St. Nicolas celebration is the annual parade organised by the City of Luxembourg on 1 December. The good man arrives by train at 3 p.m. at the main station and is then transported by horse and carriage as part of a paradeto the Christmas markets, where he hands out treats to children. × 1 December Luxembourg city centre ↳ www.winterlights.lu
Photo → Katarzyna Mazurowska/Shutterstock. Illustrations → Jan Hanrion/Maison Moderne
NOVEMBER/DECEMBER 2019
words
on the morning of 25 December,
Index
96
A Anderson Wise
F 74
NOVEMBER/DECEMBER 2019
B
M
Facility Luxembourg
30
Maison du Diabète
Fedil
30
Marguerite
Fidelity International
56
Luca Mathias
8
Anne Simon
84
Rory McHugh
56
Jervis Smith
56
Rajaa Mekouar-Schneider
56
G
Katerina Balta
16
Bazaar
92
Bazar International
94
G4S
30
Julie Becker
44
Grand-Ducal Police
30
Grand Théâtre
84
Roger Behrend
8
Jean-Claude Bostelle
30
Alain Bourguet
30
C 8
David Capocci
56
Janette Clemens
8
Sergio Coronado
72
Meteolux
56
84
Inrev (European Association for Vehicles)
Laurianne Delaunay
56
Den Atelier
84
Peter Dohmen
48
Zenia Dutta Roy
86
E
56
K Marc Kieffer
30
KPMG
56
56
Escher Theater
84
EY
56
48
Sandy Nonnweiler
30 86
Sylvie Paquet Philharmonie
8 84 84, 94
Christian Pierar
30
Ben Plane
30
Preqin
56
Marc Ragnacci
30
Red Cross
94
Gilbert Reyland
30
86
Darren Robinson
56
Rockhal
80, 84
74
Peter Lion
8
Rotondes
84, 94
LIS-Sanne
56
Jeff Rupp
56
Live Europe
80 86 56
Luxembourg Diabetes Association (ALD)
8
Luxembourg House of Fintech (Lhoft)
72
Luxembourg National Railway Company (CFL)
30
Luxembourg Private Equity and Venture Capital Association
56
Luxembourg Stock Exchange
44
Luxembourg Tech School
72
T 3
Théâtre des Capucins
84
Théâtre National du Luxembourg
84
Olivier Toth
8 80
U 8
V Christophe van Biesen
86
Ville de Luxembourg
94
Vistra
56
W
R
Lendable
Alessia Lorenti
30
US Embassy in Luxembourg
Les Sûtras
Annika Lofqvist
30
Securitec
Think Pink Luxembourg
Nordic Stella
Albena Petrovic
L
Edmond de Rothschild
N
P
Investors in Non-Listed Real Estate
D
8 80
Safety Serv
Sam Tanson
Agency
I Independent Little Lies
Multipistes
8 56
Nato Support and Procurement
H Christian Hertz
Carrie Cannon
S
Natalie Westerbarkey
56
Robert White
56
Worldaware
30
RESTCON SA, 5 rue des Mérovingiens L-8070 Bertrange, R.C.S Luxembourg : B105177 - Communication Marketing 2019
PRIVATIZATION restaurant I Catering I Banquet Meeting I Teambuilding I Cocktail Dinner I Corporate Year End Party I Tailor-made offer
Every detail is customizable, that’s the WINDSOR STYLE ! We have two multifunctional rooms, which can be transformed according to your wishes and adapted to receptions up to 350 people. Change your caterer : more information by email catering@windsor.lu or on windsor.lu
THE GASTRONOMIC CATERING SERVICE IN BERTRANGE
Practical info :
- 15 minutes from the city centre, close to the A4 highway & large private and free parking
Auntie Eleanor DIY projects
NOVEMBER/DECEMBER 2019
This month, Delano’s advice columnist answers reader questions on the Battle of the Bulge, John the Blind and the new Fnac.
Dear Auntie Eleanor, I recently learned that Luxembourg was the backdrop for part of Adolf Hitler’s Ardennes counteroffensive 75 years ago. Do you know why he chose this route? And, can you recommend a thought-provoking event to mark the 75th anniversary? Hubert in Hamm
Gentle reader, the way history books tell it, the Ardennes region was chosen for “operation autumn mist” because it was on the way to the Belgian port of Antwerp, which Hitler had his eye on. Plus, it wasn’t so heavily guarded. Of course, it couldn’t happen today. The congested Brussels ring road offers an excellent line of defence and the Belgian potholes might have slowed down a few of those Panzers. And then, there are the armies of tourists in Bastogne who would give any foe a good run for their money. For gatherings, I’m looking forward to Munshausen, a village in the north of Luxembourg, which hosts a special event on 23 November with stands, talks and a Thanksgiving dinner. Dear Auntie Eleanor, why is John the Blind called John the Blind? How did John the Blind go blind? Helen in Heiderscheid
Gentle reader, we assume you mean John of Bohemia, who was count of Luxembourg from 1310 to 1346 (and not John Ryan, the American pop
song writer who’s penned tunes for John Legend, Maroon 5 and One Direction). John of Bohemia is better known for starting the Schueberfouer funfair in 1340. But apparently, he contracted a nasty bug of some sort while crusading in Lithuania, developing ophthalmia, an inflammation of the eyes, which left him visually impaired at around the age of 40. (Common causes of ophthalmia are chlamydia, streptococcus and staphylococcus bacteria and the herpes virus.) Despite being sightless, John the Blind allied himself with the French in the Hundred Years’ War and led his troops in the Battle of Crécy, in northern France, where he died fighting the English. Dear Auntie Eleanor, I was surprised to read in your publication’s esteemed noon briefing of the arrival of French cultural and electronic chain store Fnac in Luxembourg. These French must have big balls to be setting up shop in the home of Amazon. Is it just a stunt or do bricks and mortar stores still have a chance in Luxembourg? Hilary in Holler
Gentle reader, I have fond memories of perusing the aisles of books and records of the early Fnac stores when I was studying in France. Now that I mostly listen to audio books (it keeps me occupied when having my hair set), I do miss the feel and smell of a real book and I’m sure
I’m not alone in admitting that I enjoy having a chat with the nice young people who work in these places. So, we do still need shops. I’m not sure that Fnac has big balls (rather macho), but perhaps it’s more a case that it knows how to play ball in this tough market. According to Reuters, they’re doing well with the numbers and I see they’ve a nice-looking interwebs shop. Perhaps you missed the September Delano edition that found shops are as alive as I am. And I very much hope they’ll have a much longer shelf life than I do. Dear Auntie Eleanor, after reading on Delano’s online news pages that a politician had been forced to resign over unauthorised modifications to his garden house, I was wondering if I need to get planning permission to put up a common-or-garden garden shed? Hank in Hoscheid-Dickt
Gentle reader, the story of how remodelling what was
little more than a luxury shed led to former Green MP and Differdange mayor Roberto Traversini resigning both posts is one of which Luxembourg should be proud. After all, politicians in other countries seem to get away with lies, corruption, using racist and misogynist language, with no danger of losing their jobs. As for building your own shed, may I ask how old you are? Sheds in my mind are for pipe-smoking, cardigan-wearing men of a certain age who want a refuge from their family. And yes, seeing as you even need permission to install awnings you will need to obtain a permit from your commune to build any permanent construction in your garden. ×
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Illustration → Jan Hanrion/Maison Moderne
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