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The covid-19 crisis will likely accelerate digital transformation in the investment fund sector, according to Corinne Lamesch of the Association of the Luxembourg Fund Industry. Pictured: Corinne Lamesch is seen speaking at an Alfi conference, 24 September 2019. Image credit: LaLa La Photo 

The Association of the Luxembourg Fund Industry set out five goals for the next five years in a paper published this week.

The objectives covered both retail and institutional investments and spanned from product development to lobbying.

Alfi outlined activities in each of the five areas. These included:

  • Pensions: Luxembourg’s funds industry should take advantage of the EU’s new Pan-European Personal Pension Product. Alfi said it would “support the development of digital solutions for cross-border pension servicing, and help forge the infrastructure for international pension service providers.”
  • ESG: “Sustainable funds remain a top priority” for the trade group. It will push policymakers for favourable regulations and publish best practices for firms to follow.
  • Ucits: The “global reach of Ucits”, the type of retail fund that forms the backbone of Luxembourg’s investment sector, needs to be extended, the outfit argued. Alfi “will drive change and innovation in the digital infrastructure and customer experience, making it easier for investors to buy investment funds and support more streamlined and cost-effective tools. This will benefit everyone in the industry in terms of on-boarding, processing, regulatory compliance and reporting.”
  • Alternative funds: Alfi said that it wants to grow Luxembourg’s alternatives sector, which serve professional and savvy investors, with a particular focus on real estate investment trusts.
  • Fintech: Alfi said that it wants to serve as a clearinghouse for legal, regulatory, product, technology and market issues as the funds industry goes increasingly digital.

Corinne Lamesch, chair of Alfi, stated in a press release:

“While we are not yet certain how the global economy will recover in a post-pandemic world, I believe ALFI’s objectives and ambitions remain relevant. The asset management sector has proved resilient – the ability to quickly switch to smart working models was key. Breakthroughs in technology and innovation often occur at times of disruption and we can expect to see digital transformation picking up speed. Sustainability (ESG) factors have also become more important. Before the pandemic, many were concentrating on environmental aspects (the “E”), but now, social considerations (the “S”) are also at the heart of the discussion. In order to make an impact in this situation, the investment fund industry will continue to channel private funds towards the real economy and sustainable projects and thereby fulfil its role in the recovery.”

Alfi released its “2025 Ambition” paper on 9 June.