Kelly Anckenmann (Funds Avenue): Distribution, a Paramount Factor in Fund Launch Strategy

In this ever-evolving financial ecosystem, the art and science of fund distribution strategy have become the linchpins of success, underscoring the importance of strategic foresight. Kelly Anckenmann, Executive Director of Funds Avenue, reveals that the perfect fund domicile remains pivotal for global distribution success. Interview

What countries qualify as ideal for fund origination?

Considering the vast landscape of Europe, the spotlight shines on Luxembourg and Ireland, both heralded for their prowess in facilitating cross-border fund distribution. These jurisdictions are the champions for funds aiming at a broad investor reach, thanks to their regulatory frameworks and international appeal. Contrastingly, France and Germany, while robust, cater more to a domestic audience. This division accentuates the essence of aligning domicile selection with the fund's distribution blueprint and overarching goals.

"Understanding the investor's core needs and expectations is the first step in creating a successful fund."

How do managers pinpoint the ideal domicile?

Understanding the investor's core needs and expectations is the first step in creating a successful fund that resonates with its target audience. Grasping the intricacies of investor needs, preferences, origins, and absolute deal-breakers stands as the cornerstone of fund structuring. This initial step is not merely about meeting expectations but sculpting a fund that resonates on a personal level with potential investors. Managers then consider operational costs, timeline efficiencies, and regulatory landscapes, now with a significant focus on environmental, social, and governance (ESG) criteria. The emphasis on ESG in Europe is driving managers to integrate these factors into their strategic planning while providing reliable ESG data and transparent reporting. This holistic view makes it possible for managers to choose the perfect domicile while adhering to the regulations, notably the Sustainable Finance Disclosures Regulation (SFDR). It also enables managers to align with the fund's vision and investor expectations, facilitating a more effective and impactful fund launch.

How does Luxembourg manage to stand out as a preferred domicile?

Beyond its economic stability and legislative clarity, Luxembourg aligns seamlessly with the AIFMD guidelines, which dictate the essence of fund marketing and operational conduct in Europe. This synergy is crucial for appealing to EU professional investors, requiring an adept alternative investment fund manager (AIFM) to navigate the regulatory maze. Luxembourg's commitment to investor protection and a stringent anti-money laundering framework further bolsters its attractiveness. It's not just about regulatory compliance; choosing the right AIFM partner transforms this complex environment into a strategic advantage, enabling effective fund distribution and registration across European borders.