Many management companies are located in the Grand Duchy of Luxembourg.
They offer a practical alternative to banks’ “classical” securities management.
This is because their total independence from financial institutions often enables them to make more objective arbitrages. The profitability objectives of bank-managed portfolios do not always match perfectly the performance customers expect.
The management company operates under a client-entrusted management mandate.
As with private banking, the management of financial assets may be organised as discretionary management mandates this may be organised as discretionary management mandates (the company hedges the investments itself, based on the client’s predefined profile) or as management consultancy (the client makes the decisions, after receiving the company’s advice).
In Luxembourg, the figure of the management company is fully regulated by the supervisory authority, the CSSF (Commission de Surveillance du Secteur Financier).
Abroad’s considerable experience allows it to introduce you to management companies which meet our customers’ expectations.