1. 03
The thought leadership factory
Duke 9 euros
9 789995 974558
ICBC (Ming Gao)
Growing at
galloping
speed
Page 44
FOCUS
Luxembourg:
land of
empowerment
Page 24
TALKING
BUSINESS
RMB
Page 36

4. PUB À VENIR

5. 9Duke 02
8
CONTENTS
Duke 03
Publisher: Jérôme Bloch (jbloch@360crossmedia.com) – Editor in Chief:
Josée-LyndaDenis–Conception & coordination:360Crossmedia–Headof
production:Anne-SophieThéodore– Sales: care@360crossmedia – Artistic
Director: Franck Widling – Cover Photo: 360Crossmedia – Printed in
Luxembourg/Print run: 5000 copies
www.duke.lu – Phone: (+352) 35 68 77 – contact@360crossmedia.com
SUCCESS
François Valentiny an elegy on departure (and return) 8
GRAND DUKE
The Grand-Ducal Family: give honour where honour is due 12
AMBASSADOR
Interview with H.E. Mr. Zeng Xianqi, Ambassador of China
in Luxembourg 14
TRENDS
360Crossmedia in brief 16
FOCUS
Investing in you, Europe and beyond 18
REGULATION
Three questions for Jean-Marc Goy 20
COMPLIANCE
Interview with Jean-Noël Lequeue, Chairman of ALCO 22
FUNDS
Fund industry looks to the AIFMD and beyond:
Interview with Camille Thommes 24
Antonio Thomas: The emergence of the multijurisdictional,
multi-disciplinary Independent Fund Governance
service provider 26
Schroders: why Luxembourg? 28
Interview with Jean-Philippe Cerutti, a Partner at MEBS 30
Frédéric Perard: The future in action 32
Christophe Cornet: UBS Luxembourg and
the “one-stop shop” approach 36
BANKING
Luc Verbeken: “Bankwide” vision 38
FINANCE
From SGGland with Love 40
LEGAL
Arendt Medernach: Regulation and strategy:
three trends for 2014 42
LUXURY
Jean-Claude Biver: The tourbillon 44
Maserati Ghibli, a new era for the Trident brand 50
REAL ESTATE
Analysis and trends of the real estate market in Luxembourg 52
Donald Trump: Interview 54
GASTRONOMY
The cream of the crop 56
GUIDE
Ceos’ favourite addresses 59
SOCIAL CLUBS
Networking in Luxembourg 60
Dear readers
We are proud to publish the third edition of the
magazine Duke, which has been created to promote
the Grand-Duchy of Luxembourg abroad. The
magazine presents a selection of fast-growing,
innovative and dynamic Luxembourg-based
companies, as well as other articles that for example
highlight interesting aspects of the country and
intriguing locations.
We hope that after reading the magazine, you
will feel inspired to explore opportunities in
this business hub at the heart of Europe. Please
contact us if you’d like to be introduced to the
country’s business leaders.
Enjoy Duke’s third edition!
Josée-Lynda Denis
©LCTO
©DR

6. 10
Elon
Musk
SUCCESS
11Duke 03
Design, Technology
and Business
All in onewww.elonmusk.com
©SPACEX

7. The owner of so many different and successive projects really can do
it all for the cause of humanity, help combat global warming minimize
air pollution and create a more exciting and interesting future. Read
how he manages to combine design, technology and business.
Tesla Motors
The co-founder of Paypal, is a firm
believer in the fact that the world
needs to find a sustainable means of
operating. In several of his interviews
he has admitted, “ it is important
that we have sustainable transport
and sustainable engine production”.
This could explain why today he is
a founder of Tesla Motors, an all-
electric American Car Company.
Musk is certain that an electric car is
60% more efficient when compared to
any other car. According to the CEO
of Tesla Motors, there are 3 levels of
production – expensive cars with low
mass production, medium expense car
with medium volume and a low price
car with high volumes of production.
Today the company is at the 2nd level
of this 3-step production. The business
and sales strategies of the company
have been highly developed in order
to provide their services worldwide.
As a result they have signed a
partnership with Daimler and Toyota,
through which they sell electric
powertrain systems.
Solar City
Not only is Elon Musk an engineer
for cars but he is also a chairman
for a solar energy company, “Solar
City”. According to Musk, the world
is already solar powered. The whole
eco system is powered by the sun.”
Thus comes the belief that in almost
18 years one of the primary means
of power generation will be solar.
However, it is hard to compete with
the resources of natural gas. The
advantages of the solar power are that
once you have it installed there are no
feed or operational costs associated
with it. It will work for decades.
It is truly empowering for the
businesses and homeowners.
Space X
Probably one of the main
achievements of the owner of the two
already mentioned projects has to be
the creation of Space X. The company
was created with the goal of building
the world’s most advanced rockets and
space crafts.
Despite the fact that the company
came very close to failure in 2008,
Elon Musk still has very ambitious
projects in mind. For example, in
future the company wants to be able
to produce reusable rockets, meaning
that after the launch the rocket will
be able to return to the spot where
it started from and then be able to
launch again in a matter of hours.
The first flight is expected in 2015 and
Luxembourg will definitely be hearing
about it.
SUCCESS
13Duke 03
12
“It is important that
we have sustainable
transport and
sustainable engine
production.”
Elon Musk
©DR
©SOLARCITY
©DRTESLAMOTORS
©DR
WATCH AN
INCREDIBLE
VIDEO

8. Communication tools and techniques changed more in the past ten
years than they had in the previous five centuries. This revolution has
been so radical that many are struggling to come to terms with it, let
alone take advantage of it. Let’s try to break it down.
360Crossmedia:
Keep calm and get things done
From Gutenberg to
Zuckerberg
Duringthe Gutenberg era (whichended
onlyrecently at the start of the 21st
century!), publishing a magazine,a
brochure, anewspaper orasimplearticle
wasan expensive businessthattooka
longtimeand required technical
know-howthat wasreserved foran
exclusiveelite.These barriers infact
generally guaranteed that the finalresult
wouldat least meet some basicquality
standards.
Inthe Zuckerberg era,thingshave
changed: everything is fun,fastandfree!
Nowyoucanprint anything youlike,
even withoutacomputer! All youhaveto
doispopinto yourlocal webcafe,usea
remoteversionof asoftware application
likeIndesign and publish yourdocument
ontheinternet or evensend it toaprinter.
Andthanksto digital printing,printers
candeliveradocument inany quantityfor
aridiculouslylow price percopy.Of
course, the quality of the final productis
nolongerguaranteed,but siteslike
www.issuu.com prove that there’splenty
oftalent out there.
The golden rules
While technology has certainly
advanced by leaps and bounds, it seems
humans will never change. For example,
you often see groups of people getting
together to work on a project, but only
one person does the work while all those
people who contributed nothing can
always be counted on to criticise the
results. Also, you find situations where
people have meetings but never get
anything done, not to mention all those
amazing projects that never get off the
ground due to lack of time or money. To
solve this kind of problem,
360Crossmedia has devised a set of very
simple rules that get everybody involved
and give clearly defined criteria and
deadlines. This approach can be used for
a wide range of projects (articles,
magazines, events, websites, brochures
and branding) and is designed to make
people aware of different ways to save
time and money and to be more efficient
while maintaining an ultra-creative and
highly motivating atmosphere. This can
be summed up in a few words:
communicate with your colleagues; from
the very outset, share with them the final
vision of the project; keep it simple; put
yourself in your reader’s or your
customer’s shoes; stick to the deadlines
right from the start! The miracles of the
Zuckerberg era will take care of the rest.
My360Lab: We want it all, we
want it now!
Intoday’sworldeverybodywants
everythingbyyesterday,socompanies
obviouslywantthefastestsolution,and
that’swhereMy360Labcomesin.The
principleofMy360Labistobringtheteam
togetherinoneroomorviaSkypeto
completetheentirejobinonego,withthe
helpofateamleader.OncetheLabisover,
there’snothinglefttodo:noe-mailsto
send,noassignmentsfortheweekend.This
methodhasbeenpopularisedbyhyper-
efficientcompanieslikeFacebookand
Amazon,whohaveveryshortturnaround
timeswhenitcomestoproduct
development.Theprocessistotallyflexible:
everythingcanbedoneinternally,butitis
alwayspossibletorecruitwriters,
photographers,consultantsorgraphic
designersforspecialtasks.Thebudgetis
verylow,andinthecaseofmagazinesand
internetsitesyoucanincludeadvertising
thatcanberesoldintheecosystemofyour
projectpartners!Fun,fastandfree:the
Zuckerbergeraisheretostay!
Visit our new website www.360crossmedia.com
MEDIA
14 Duke 03
15
CAUSES OF STRESS AT WORK
Cite workload Cite people issues
Cite juggling work and
personal life Cite lack of job security
41 % 32 % 18 % 9 %
SOURCES:STRESSPULSESURVEY
“People want everything now,
but without spending
too much. 360Crossmedia
has the solution.”
Jérôme Bloch, CEO
IMPACT OF STRESS ON ATTENDANCEIMPACT OF STRESS ON PRODUCTIVITY
Lose 15-30 min.
per day in
productivity
due to stress
Miss 1 to
2 days
per year due
to stress
Miss 3 to
6 days
per year due
to stress
Miss more
than
6 days per
year
due to stress
Lose 1 hour per
day in productivity
due to stress
Report productivity is
unaffected by stress
42 %
24 %
34 %
54 %
15 %
31 %
DOWNLOAD
THE SOLUTIONS
FINDER

9. Interview with Lydie Polfer, Mayor of Luxembourg City.
Luxembourg:
an international city
What are your priorities
as mayor?
The challenge facing the city can be
summed up in four facts and figures:
the city takes up 2% of the national
territory. Half of this surface
is covered with woods and green
spaces. The remaining 1% hosts 20%
of the country’s population and 40%
of jobs! This creates accessibility
problems, as the city concentrates
far more jobs than people.
Every morning, more than 100,000
people make their way into the city.
At certain times of the day,
this generates traffic problems.
Projects are underway that will take
the edge off this daily assault: the
TRAM, for example, will make it
possible to reduce the number of
buses in the city, but it implies a
reorganisation of public transport.
Another major project concerns the
2004 law that requires all
municipalities to adopt a general
territorial management plan
according to very specific definitions.
This will allow some areas to be
redefined. The first vote of the
municipal council on this matter is
scheduled for the summer of 2015.
A word about the “Royal
Hamilius”?
Yesterday I signed the building permit
for the Royal Hamilius. Lord Norman
Foster is the architect behind this great
project in the heart of the city.
Comprised of 70 apartments, offices
and shops, it is a landmark
development for Luxembourg City and
is scheduled for completion in 2017.
Furthermore, we are now seeing a drift
from the countryside to the city. People
want to enjoy the superb sports and
leisure facilities. Between the Coque
national sports and leisure centre, the
Philharmonic and the Mudam, we are
spoilt for choice in this respect.
Can you describe Luxembourg’s
real estate fabric?
I must first set the record straight. As
mayor, I do not regulate the market.
Luxembourg has seen its growth
driven by its financial centre over the
past few years. This has brought about
a strong economic boom, and a hike in
real estate prices is a natural
consequence. The city projects are
almost exclusively oriented towards
providing affordable housing for its
citizens. Several special development
projects (the so-called PAPs, editor’s
note) are in the pipeline that will see
5000 housing units being created, in
particular in Bel Air, Merl,
Limpersberg and Cessange. The most
ambitious project - the Ban de
Gasperich - alone will see 600 homes
and many shops and offices spring up.
What would you say to people
who don’t know Luxembourg
City?
It is an international city. 68% of the
inhabitants do not hold Luxembourg
nationality. If you compare us with
recent events in Switzerland with the
famous ‘vote’, here 155 nationalities -
94% European – live side by side in
harmony. The city manages to
combine dynamism, quality of life and
friendliness. Locals and foreigners
come together to celebrate several
times a year: at the octave, the
national holiday or Schuberfouer.
They also mingle on Saturdays at the
market. You see a plethora or cultures
and hear a multitude of languages.
Building on this wide variety of
cultures and backgrounds, we have
managed to carve out quite a unique
way of life.
www.myofficialstory.com/lydiepolfer
“The city manages
to combine
dynamism,
quality of life
and friendliness.”
Lydie Polfer
©DR
1716 Duke 03
SOCIAL

10. SOCIAL
1918
Interest in philanthropy is growing rapidly among wealthy individuals
and families, and the Grand Duchy’s foundation structure helps them
turn their aspirations into reality quickly and easily, according to
Fondation de Luxembourg Director General Tonika Hirdman.
Fondation
de Luxembourg:
A European
gateway to Philanthropy
What challenges do
international philanthropists
face today?
The means of giving is changing. It is
not anymore just about signing a check.
We are seeing people who want to
engage themselves actively in their
giving; making sure the money is used
efficiently and to the right ends, that
correspond to the donor’s pretentions.
This means that the need for support
and guidance is greater than ever.
The problem is that many donors do not
know whom to turn to for assistance,
whether it be their lawyer, their wealth
manager or the tax adviser. Sometimes
they need advice in defining their
giving strategy. Very often they need
support in finding the right project and
in terms of supervising the
implementation of the project. They
may also need help with the logistics of
running their foundation.
This is where Fondation de
Luxembourg comes in. We help them to
identify a project that suits their
interests and we create and manage
their personalized foundation under our
umbrella.
Why is Luxembourg a good
place to set up a foundation?
Since we were created by the
www.myofficialstory.com/tonikahirdman
©DR
Duke 03
Luxembourg state five years ago, 45
foundations have been established in
Luxembourg and many more are in the
pipeline. Some donors are attracted by
the country’s political and economic
stability. They view the commitment to
their foundation as a very long-term
one, so a stable environment is a
priority. Following the financial crisis,
stability is something you can no longer
take for granted in some European
countries.
Others are drawn by the ease of
establishing a foundation here. In
France, for example, it can take up to
three years, compared with just a few
weeks in Luxembourg, thanks to our
straightforward and flexible approach.
Finally, Luxembourg has developed a
unique public-private partnership
combining a fully personalized
philanthropic approach with the
credibility of a state-backed institution.
How does this benefit society
at large?
A good example is Akuo Energy, a
leader in renewable energy in France,
which decided to set up its foundation
in Luxembourg. The Akuo Foundation
has recently launched a project on the
island of Nosy Faly near Madagascar to
assist economic development with
respect for the ecosystem and involving
sustainable agriculture.
Another example is the CVC Capital
Partners Foundation, which applies the
“venture philanthropy” approach to
help disadvantaged young people in the
countries where the firm is active. But
there are also numerous foundations set
up by families. A Finnish family, the
Ehrnrooths, finances scholarships for
postgraduate neurological students who
work closely with one of the world’s best
known professors on neurological
surgery in Finland.
A foundation with more local roots,
Fondation La Violette, established by
the Luxembourg Tesch family has
launched a project providing art
therapy for cancer patients in the Grand
Duchy. This is something that did not
exist in Luxembourg before.
“Following the
financial crisis,
stability is
something you can
no longer take for
granted in some
European countries.”
Tonika Hirdman

11. SOCIAL
2120
Interview with Corinne Cahen, Minister of the Family and Integration.
A look back at her career and her ambitions for the future of
Luxembourg.
Interview:
Corinne Cahen
Do you believe that the
Luxembourg social model is in
danger today?
No, the Luxembourg social model,
based as it is on dialogue, is in good
health. The new government’s
programme also stipulates that the
Government will seek direct dialogue
with citizens, promote dialogue
between all members of society and
revitalise the tripartite system, a
central element of the Luxembourg
model.
What are the challenges of
your mandate?
We are facing a great many challenges:
it is a Ministry with a diverse portfolio:
family policy, volunteering, policy for
the elderly, for the disabled, the
processing of applications from asylum
seekers, the integration of foreigners,
the solidarity policy, the Greater
Region, etc. Among the most important
issues are the revision of the National
Plan of Action for Persons with
Disabilities, the finalisation and
www.myofficialstory.com/corinnecahen
Duke 03
implementation of the action plan for
dementia-related diseases and the
geriatric action plan, the reform of
family benefits, the reform of parental
leave, the integration of foreigners in
Luxembourg society, the revision of the
Law on the Guaranteed Minimum
Income, as well as the fight against
poverty and social exclusion. The
common goal of all these measures is
that they aim to improve quality of life
for everyone, whether the disabled, the
elderly, those at risk of poverty,
foreigners, the unemployed, parents or
singles, and to give them every chance
in life. As for the Greater Region, the
aim is to further strengthen cross-
border cooperation, but also to increase
its visibility.
Your career in a few words?
I was born on the 16th of May 1973 in
Luxembourg. I have a degree in foreign
languages, a master’s degree in applied
foreign languages and a diploma in
French -English bilingual journalism. I
had a wide range of different
experiences in the field of journalism
(particularly with RTL, RTL Télé
Lëtzebuerg, Eldoradio, Radio France
Internationale and Agence France
Presse) before switching to the world of
business, when I took over my father’s
shoe shop. In a few years, I succeeded
in developing this business by tripling
the number of stores. In 2008, I was
elected president of the Commercial
Union of the City of Luxembourg and
in 2009 elected member of the
Chamber of Commerce. Following the
elections of the 20th of October, I was
elected to the Chamber of Deputies.
Since the 4th of December 2013, I am
Minister of the Family, Integration and
the Greater Region.
“Dialogue plays
an essential role
in Luxembourg.”
Corinne Cahen
©DR

12. The highlights of a talk given by Viviane Reding during the Mixcity
evening organised by BGL BNP Paribas on St Valentine’s Day:
14th of February 2014.
Viviane Reding:
the gender mix
Treaty vs Enforcement
Gender diversity is good for society.
Small as it may be, Luxembourg has
understood this message. Only those
who catch on to this reality will make
it in our fast-changing world. The
studies are unanimous: companies
with a diverse management generate
better financial results! Why this
sudden realisation? In politics, it has
been around for a long time... After all,
equality between men and women was
enshrined in the Treaty of Rome in
1957. Generally, EU rules are rooted in
the rules in force in the member
countries. Here, the opposite is true.
But even when laws are passed, it
takes some willpower to enforce them!
Equal pay day
On average, European women still
earn 16% less than men, which is
equivalent to two months of unpaid
wages per year. This spurred me on to
organise “Equal Pay Day” to mark the
time of year when women begin to
earn money. Today, with a 16%
difference in salary, it falls at the end
of February. We have to continue to
fight until we reach the perfect date of
the 1st of January. That is when we
will finally achieve what the Treaty of
Rome first called for: “Equal pay for
equal work”.
MBA
I asked companies: what happens to
your female MBAs? A month later
they came back to me with the results
of their research and said: “It’s
scandalous! Women do the best
MBAs, but men have the best
positions. This observation prompted
the birth of a network of 170
universities that have created a
database with 8700 verified CVs of
women capable of sitting on a Board
one day 62% of university degrees are
obtained by women. But what happens
then? We have invested in training
this talent, but it is lost along the way.
In other words: how to lose your
investment.
Sometimes you just need to roll a
snowball to trigger an avalanche. In
Germany, politicians were against
quotas. But they have signed a charter
in Berlin in favour of the quotas.
Ursula von der Leyen was a big help.
We need to be shouting about this
from the rooftops. We need to bring
on board allies to talk about it, to dig
in their heels, who are able to change
attitudes. Women need role models.
They need to see those female success
stories to think “I’ll get there too!” and
to do away with all that self-doubt. I
saw Christine Ockrent when I was
studying. I wanted to be her so I
became a political journalist. Tell your
daughters they are fantastic. We need
these fantastic people. We need all the
talents. They must think: “I want to do
it, I can do, I will do it”.
Excerpts
“Diversity saves money”
“I create administrations where I have
to have quotas for men”
“Old age is female and poor. We must
be careful about the use made of
part-time work. It’s a taboo issue at the
moment”
“I did not increase maternity leave
because I think it is long enough. A
baby does not always need its
mummy, but sometimes you need to
take time off to get a teenager back on
the straight and narrow”
www.myofficialstory.com/vivianereding
“Companies
with a diverse
management
generate better
financial results !”
Viviane reding
©360CROSSMEDIA/O.M.
2322 Duke 03
SOCIAL

13. What is your agenda?
We have three main priorities: first of all,
an across-the-board reform of family law.
This includes marriage, with the
possibility for same-sex couples to get
married, adoption and the possibility for
all married couples to start adoption
proceedings, divorce – where no
progress has been made for 11 years –
the intention being to do away with the
notion of fault, except in severe cases,
mainly violence. Another reform will
cover filiation and yet another parental
authority.
The second priority is the creation of a
prison administration and reform of the
enforcement of sentences. We want to
ease the transition of inmates back into
society after leaving prison and we are
looking to introduce a judge responsible
for the enforcement of sentences or a
panel of three judges. Finally, the third
reform is the introduction of a National
Council of Justice with greater
autonomy in the management of judges
and investigating magistrates that is
wholly independently of the political
power. I am willing to give up some of
my prerogatives, particularly with
regard to appointments and promotions,
if a National Council of Justice assumes
full responsibility for them.
We are also looking into the possibility
of creating a supreme court in
Luxembourg which would introduce
summary reversals to the administrative
system and replace both the Superior
Court and the Constitutional Court.
Control of constitutionality would
therefore be delegated to all judges.
Reform of abortion will soon be tabled.
Abortion will be decriminalised and the
second consultation will no longer be
mandatory. The nationality law will relax
the linguistic criteria to give the same
chance to all applicants.
What are the current challenges
brought about by the new
regulations in the field of
finance?
Luxembourg’s position is very clear in
this field: we support all progress and
actively participate in discussions within
the OECD. It is essential that all
countries abide by the same rules. By
accepting the automatic exchange of
information on savings income from the
1st of January 2015, Luxembourg has
shown that it is not one of the States
standing in the way of change. Our
financial market has been doing very
well without banking secrecy for a long
time thank you and does not attract
clients because of its sovereignty but
because of its competence. The
exchange of information is not a
problem but it can only work if the same
rules are applied to all financial markets.
Data protection is a hot topic
today.
At national level this is a matter for
Xavier Bettel in his capacity as Minister
of Media. On the other hand, as Minister
of Justice, I deal with these issues at
European level in the JHA Council
(Justice and Home Affairs). A directive
and a regulation are currently under
discussion and have been a long time
coming, given that the last data
protection text dates back to 1995. This
is a text that is progressing at snail’s
pace. Some countries want to set up
protection mechanisms at national level.
Others, such as Luxembourg, believe
that the only possible solution is a
European mechanism that can be rolled
out across all 28 countries. We cannot
have 28 Googles or 28 Facebooks in
Europe. Companies must choose a home
country where the competent national
authority - the CNPD (the National Data
Protection Commission) in Luxembourg
- will be equipped to oversee the
application of the rules. It’s a mistake to
think that only the large countries have
the capacity and that the small States are
lagging behind.
You had the pleasure of meeting
Robert Badinter?
I had the honour and the privilege of
meeting him at his home. He really is a
fascinating character. I am familiar with
his causes, whether the abolition of the
death penalty or his efforts on the
international stage. I am a firm believer
in European construction and listening
to him makes you doubly convinced. He
makes it sound so inevitable, with fair
and lucid arguments. I visited him in my
position as Minister and have taken on
board his arguments. We discussed the
European Public Prosecutor and a
European training institute for judges in
European law. Mr Badinter argues that
the European Union and peace on our
continent are not only a matter for the
big States. He also thought that
Luxembourg should remain the
European capital of justice.
“It’s a mistake
to think that only
large countries
have the capacity
and that the small
States are lagging
behind.”
Félix Braz
©DR
2524 Duke 03
An interview with Félix Braz,
Minister of Justice.
Ministry
of Justice:
reforms
on all fronts
www.myofficialstory.com/felixbraz
www.gouvernement.lu

14. Russia’s ambassador to Luxembourg Mark Entin says the two
countries share strong economic, cultural and financial links,
but there are challenges to overcome to ensure a bright future for
their relationship.
Luxembourg and
Russia: building on strong
ties for the future
A presence in Luxembourg
Most people do not realise how much
Russia has contributed to
Luxembourg’s history, culture and
independence. “Today Russia plays an
important role in safeguarding this
independence,” says Mark Entin, the
ambassador of the Russian Federation
to the Grand Duchy. Russia’s presence
in Luxembourg today encompasses
economic, financial, cultural and
individualties. The Russian
community in the Grand Duchy is
relatively large at around 1% of the
overall population, mostly young and
talented people who make a
substantial contribution to the
country’s wealth and wellbeing.
Earlier this year Vnesheconombank,
one of the four largest financial
institutions in Russia, opened for
business in Luxembourg, which Entin
says represents a kind of visiting card
for the Russian banking system.
Vnesheconombank has also
established an investment foundation
in the Grand Duchy to invest in small
and medium-sized enterprises.
Bright future
Entin argues that the relationship
between the two countries has a bright
future. “Luxembourg has started to
deepen the relationship with countries
outside the EU,” he says. “It has built
economic, trade and financial links
with these countries.”Luxembourg’s
embassy in Russia plays a critical part
in this process, he says, by inviting
businessmen, investors and other
representatives from the financial
world to meet with their counterparts
from the Grand Duchy.
The result is a dynamic process
characterised by the initiation of new
common projects and a steady
increase in the volume of investment.
Beyond the headlines
Entin is critical of the role of polemic in
the mass media in shaping perceptions
of other countries, noting that some
people are unable to see past
sensationalist headlines – a problem
that has affected Russia’s image in
recent months. Nevertheless, he
expresses the hope that the European
Union will remain competitive, resolve
its problems – some of which are
self-inflicted – and remain a strong
and economically successful partner
for the Russian Federation.
Says the ambassador: “Through
economic co-operation, cultural
exchanges and scientific projects,
I believe we can overcome the
problems thrown up by the economic
crisis and strengthen societies
all over Europe.”
www.myofficialstory.com/markentin
“Today Russia plays
an important role
in safeguarding this
independence.”
Mark Entin
©DR
2726 Duke 03
SOCIAL

15. SOCIAL
2928
The founders of the China-Luxembourg
Chamber of Commerce ChinaLux have
declared that the organisation sets out to
give new impetus to commercial and
economic relations between the Grand
Duchy and the emerging global economic
superpower.
Cooperation with
the world’s most dynamic
economy
Making up for lost time
The promoters of the China-Luxembourg
Chamber of Commerce ChinaLux hope
that the new organisation, officially
established on the 31st of May, will
accelerate the development of relations
between the two countries. They point
out that opportunities to develop trade
relations with China are huge and that
the regular exploration of areas of
common interest within the Chamber
will make it possible to reinforce these
opportunities. Chinese institutions are
already a rising force within the
Luxembourg financial community, as six
Chinese banks should operate between
now and 2015 as the hubs of pan-
European investment platforms.
For ten years now, efforts have been
made to establish a forum to support the
interaction between Luxembourg and
China and the new organisation is
considered as an important step in this
direction. According to Dirk Dewitte,
co-founder and newly elected President
of the Chamber, very short lines of
communication between the
Luxembourg government and business,
as well as the flexibility, speed and
pragmatism of the latter in decision-
making, attract Chinese companies
looking for a gateway to Europe.
Official support
The initiative is being enthusiastically
received by official bodies and
representatives, including the
Luxembourg Ministry of Foreign
Trade, the Chinese Embassy and the
Luxembourg Chamber of Commerce,
according to Dirk Dewitte.
The financial sector will be a key
area of cooperation. The new
organisation will be responsible in
Luxembourg for the organisation of
financial trade missions abroad, will
assist businesses organising seminars
and inter-company exchanges, and will
host the Chinese guests – “essential
www.myofficialstory.com/chinaluxchamber
www.china-lux.lu
Duke 03
activities”, says Mr Dewitte. The
presence on the Advisory Council of the
new ChinaLux Chamber of Nicolas
Macker, Luxembourg’s Consul General
in Shanghai, who is soon to take over
from Fernand Grulms as CEO of
Luxembourg for Finance, can only
contribute to the success of these efforts.
The founders and Mikkel Strørup, a
fluent Chinese speaker who is closely
involved in the project, explain that the
ChinaLux Chamber should facilitate the
transition from intergovernmental
relations to direct connections between
entrepreneurs of the two countries,
taking advantage of one of the major
forces of Luxembourg: the
internationalisation and diversity of its
business community.
First members
Among the founding members of the
new Chamber, we should have twenty
organisations that develop or seek to
establish trade relations in China,
including law firms, the “Big Four” in
the financial audit world and several of
Luxembourg’s large commercial and
service companies, who will be joined
by Luxembourg’s residents, members of
the Chinese-speaking community of the
Grand Duchy and other expatriates. The
first members of the Chamber should
help develop a programme of activities
as part of an elected executive
committee composed of 16 Executive
Directors and with the help of an
advisory board of eminent personalities
from the business world. Events on
topics such as introduction to Chinese
culture and the international
competitiveness of Luxembourg are
already scheduled. “We intend to start
at a run,” promised Mr Dewitte.
Moreover, the first event dedicated to
the internationalisation of RMB, held on
the 13th November, was fully attended
and evoked a big interest.
“Six Chinese banks
should start their
operations here
in 2015 as hubs
for Paneuropean
platforms of
investment.”
Dirk Dewitte
©DR
ChinaLux, the China-Luxembourg Chamber of Commerce

16. Carlo Thelen, the new Director General of Luxembourg’s Chamber
of Commerce, is a qualified economist. Interview.
Luxembourg:
a new paradigm!
How would you analyse the
current political and
environmental situation in
Luxembourg?
We have now entered a key phase for
the country’s future: Luxembourg has
all the assets it needs to succeed and
now, more than ever, is the time to
focus on our future development.
Take, for example, inter-generational
equity. Budget consolidation is
finally receiving the attention it
deserves. And with good reason, the
Grand Duchy has real room for
manoeuvre. Public expenditure
currently represents €34,000 per
citizen and per year, i.e. double the
European average. Even if we cut this
contribution by 10%, Luxembourg
will still rank among the most
generous countries. As well as the
budget, we need to ensure that other
projects are not pushed into the
background. For example, the social
model, housing or even
competitiveness. Budgetary balance
is not something that can be decreed.
It is driven by a consistent socio-
economic policy mix. This dynamic
is fuelled by growth, attractiveness
and competitiveness.
What are your priorities as
Director General of the
Chamber of Commerce?
At the end of 2012, together with my
predecessor Pierre Gramegna, (now
Minister of Finance, editor’s note), we
introduced the Chamber of Commerce’s
2020 strategy. I am continuing to
implement this strategy with my team.
The Chamber aims to remain the key
contact for companies, professional
organisations and the government. Our
main objective is defending companies’
general economic interest, beyond
individual interests. We are
maintaining an overall perspective as
part of a long-term approach. We are
continuing to be a critical partner of
policies implemented, refraining from
personal criticism at all times and
instead supporting our arguments
with facts and addressing the
government as a whole.
What threats and opportunities
are on the horizon?
The financial crisis has changed the
paradigm: we no longer have the
growth rates we enjoyed in the past. To
make the Luxembourg model
sustainable, we need to redefine it and
target it more effectively. Our
philosophy revolves around doing
better with less, to further improve our
competitiveness and social cohesion.
Having said this, Luxembourg has
many assets. First and foremost, we
need to look after what exists: by
opening up new markets for our
companies, promoting innovation,
capitalising on the financial market,
industry, trade and tourism. But we also
need to develop new niches. For
example, the RMB platform,
philanthropy, gaming, cloud
computing, eco-technologies and
logistics. We have some great
entrepreneurs and start-ups in these
fields, creating strong foundations for
the future.
What about property?
Corporate property is developing
favourably, recording performance
above the European average and very
low vacancy rates. Our financial market
also supports the structuring of
property funds and even “Sharia
compliant” funds. Home to more than
160 nationalities, Luxembourg is a real
cultural crossroads, a laboratory of ideas
and a smaller scale version of Europe.
www.cc.lu
www.carlothelen.lu
“Our philosophy
is to do better
with less.”
Carlo Thelen
©360CROSSMEDIA/C.O.
3130 Duke 03
SOCIAL

17. Chairman Jean-Noël Lequeue says the Luxembourg Association of
Financial Sector Compliance Officers (ALCO) is adapting its services
to members to meet the challenges of an ever more complex
regulatory environment.
Compliance profession
at full stretch
Last year you highlighted the
scale of the challenges facing
compliance officers. Will 2014
be a bit quieter?
The challenges for compliance officers
in 2014 will be no less daunting than
those of last year. The avalanche of
regulation continues to roll on,
stronger than ever – the EMIR, MiFID
II, market abuse and AIFMD
measures will continue to have a
massive impact in the course of the
year. In many cases we need to put in
place new processes and oversight
mechanisms even before the
authorities have finalised the practical
implementation details. The CSSF’s
circulars and regulations place an
increasing emphasis on the role of
internal oversight functions and
especially that of the compliance
officer. This is helpful in raising the
profile of the compliance function, but
it also represents a steady expansion
of its responsibilities. Even the biggest
institutions are struggling at times to
keep up. That makes it all the more
important for ALCO to be able to help
the compliance officers of all
institutions, large and small.
What trends do you see in the
recruitment of compliance
officers in Luxembourg’s
financial sector?
It’s worth noting that financial
institutions are not the only companies
where compliance functions are being
put in place. A significant range of fund
industry players that have hitherto been
exempt, including accountants, lawyers
and insurance companies, see an
increasing need for a well-qualified
compliance officer. ALCO now has 750
members, which is a huge number given
the size of the country. This growth has
lead to the evolution of an employment
market featuring highly trained and
experienced compliance professionals
that may consider changing institution
or taking on a more specialised role.
Internal recruitment remains highly
important for the sector. The training of
compliance officers may be carried out
through dedicated courses or on the job,
and ALCO certification is increasingly
sought after. Job vacancies can be
posted on ALCO’s website. Another
option is outsourcing, either assignment-
by-assignment or on a full-time basis,
usually for smaller companies.
How will these trends
influence the development of
your association?
ALCO has just completed a survey of
its members that indicates a high
overall level of satisfaction. However,
expectations of the association are
substantial, especially with regard to
disseminating information. The board
of directors has already decided to
review fundamentally the quality,
timeliness and interactivity of our site
and to develop a more up to date and
attractive formula for our newsletter.
We are examining ways to
communicate more rapidly on urgent
regulatory matters and to extend the
scope of such information to a greater
number of members. We are looking to
develop and improve initiatives such
as round-table discussions, other
events and working groups. We will
continue to share our experience of
regulatory compliance issues with
other industry associations such as the
ABBL, ALFI, ILA, IIA and ALRIM, as
well as with the CSSF.
www.myofficialstory.com/jeannoellequeue
“The challenges
for compliance officers
in 2014 will be no less
daunting than those
of last year.”
Jean-Noël Lequeue
©360CROSSMEDIA/M.S.
3332 Duke 03
SOCIAL

18. 3534 Duke 03
SOCIAL
When an association as prestigious as the Rotary
Club lends its name to a cause such as research
into brain-related diseases in Luxembourg the
outcome can be nothing but positive.
Rotary:
Hope ahead thanks
to Espoir en tête
Espoir en tête
“Espoir en tête”, which translates as
Hope Ahead, is a national campaign
initially set up by the French Rotarians
who joined forces with Luxembourg’s
Rotary Clubs in early 2013. This
campaign is in sup-port of brain
research and aims to raise funds
earmarked for a specific research
project at the Uni-versity of
Luxembourg, conducted within the
Faculty of Science, Technology and
Communication. This project
investigates and analyses the
inflammatory reactions of the brain
associated with neuro-degenerative
diseases such as Alzheimer’s or
Parkinson’s with the aim of developing
effective thera-pies. The research team
recently succeeded in identifying a
new feature of these cell types,
repre-senting a considerable
breakthrough in the research into these
diseases.
22,000 euros collected
In 2013, the film “The Fantastic World
of Oz” was premiered in several
Utopolis cinemas with a share of profits
being donated to “Espoir en tête”.
Cinema tickets were sold for 15 euros,
8 euros of which went to Luxembourg
brain research. Following this event,
the Rotary Clubs of Luxembourg
presented a check in the amount of
22,000 made out to “Espoir en tête”.
This will make it possible to fund the
testing and analysis equipment
necessary for its research work.
An on-going campaign...
This campaign was repeated in early
February with the screening of the
premiere of the film “Saving Mr Banks”
in two cinemas of the Utopolis chain, in
Kirchberg and Belval with the much
appreciated support of Walt Disney
Company and Utopolis. In June 2014,
the second cheque will be handed over
for the donations collected in 2014 and
a new campaign will be launched in
2015. The Rotary Clubs are hoping to
bring on board other major sponsors
and thus continue to raise funds for
similar organ-isations.
If you wish to support “Espoir en tête”,
you are welcome to make a donation to
the Association Lux-embourgeoise des
Œuvres du Rotary.
www.espoir-en-tete.lu
“Following this event, the Rotary
Clubs of Luxembourg presented
a check in the amount of 22,000
made out to “Espoir en tête”.”
©ROTARY

19. MixCity Luxembourg is BGL BNP Paribas’ internal professional
network, set up in 2009 when the original BNP Paribas MixCity
Association embarked on its international expansion. This network aims
to promote equal opportunities for men and women in the workplace
and promote values that will serve both the company and the economy
on the whole. The first success stories bear witness to its vitality.
MixCity Luxembourg
investing in diversity
The first success stories
After nursing their project, in 2013, the
seven founding members, including the
Association’s President, Fabienne
Dasnoy, obtained the green light from
their company’s top management. This
was milestone enshrined by the signing
of the “Positive Action” Agreement of
the Ministry of Equal Opportunities,
and the creation of the post of Country
Diversity Officer within the group in
Luxembourg. Some important
landmarks: the statutes of the de facto
association (2013), Board of 10 female
executives, 122 members, including 34%
non-executives. It operates through
different types of networking activities
such as Mixmornings, Mixnetworks ...
www.myofficialstory.com/mixcity
the first Mixconnect attracting no fewer
than 15 networks.
A synergy of consensus values
The network’s vitality is underpinned by
its values, the emphasis being on
respect, sharing, professionalism and
loyalty, along with an open mind: the
opening up of the network to women and
men (17% men, including Vice-President),
to executives and non-executives, but
also an opening to the outside world.
The value of close bonds is very strong,
as illustrated by the chosen logo.
Diversity comes in many shapes and
form, such as equality and integration,
contributing to a work/life balance and
therefore to a certain well-being,
increased accountability of all,
facilitating an internal dynamism and
communication within the framework of
an employer/employee relationship
based on the win/win model.
Prospects
Fabienne Dasnoy is both a visionary and
a realist: “In an ideal world, an
association such as ours should not even
be necessary... But that ideal world is
around 10 years away.” For now, she
wants to see the network grow in
importance and influence and become a
recognised partner for the professional
world. She sees this as the best way to
detect female talent, to work towards a
male/female balance, particularly in key
posts, to nurture ties between the
diversity stakeholders within different
companies, and together create a
diversity lobby in its own right with a
leading role to play in Luxembourg’s
economy.
“In an ideal world, an
association such as
ours should not even
be necessary.”
Fabienne Dasnoy
©360CROSSMEDIA/O.M
3736 Duke 03
SOCIAL

20. Training finance professionals means investing in the future of the
Grand-Duchy. An interview with Fouad Rathle and Werner Eckes,
President and Director respectively of the Luxembourg Institute
for Training in Banking (IFBL).
The Institute (IFBL):
longevity for the economy
You said recently that
the Institute represents
a patriotic challenge.
Why?
Fouad Rathle: The future of
Luxembourg depends on the
economic sustainability of the banks.
Following the lifting of banking
secrecy, banks must reinvent
themselves. In particular, they must
offer their clients excellent service
that rivals the most advanced
competitive markets such as London
or Zurich, in terms of quality and
skills. The Institute offers a range of
450 courses to meet this challenge. In
our opinion, this is the only hope for
assuring the future longevity of the
market, and therefore the country.
Werner Eckes: We mustn’t forget that
the financial sector employs 26,000
people. By developing their skills, we
guarantee that people are employable,
that they will keep their jobs and
ensure the vitality of the economy.
How do you see the future of
the Institute?
W.E.: The Institute benefits from a
unique position at the centre of an
ecosystem consisting of professional
associations, government ministries
and direct links to companies. We
exchange ideas with HR Departments,
Company Chairmen and experts
on a daily basis. This means we can
provide training for a sector that is
in the process of transformation, and
can develop our courses in a very
responsive way. However, we also
play an active role in protecting jobs,
in partnership with the Ministry
of Employment and Adem (the job
centre), via the Fit4job programme.
F.R.: Since 1990, the Institute has
trained around 150,000 professionals,
who are all ambassadors for the
Institute within their companies.
When someone is looking for a job in
the financial market, we often know a
company that will want to hire them.
Next year, you will celebrate
your 25th anniversary. What
assessment do you make of
this watershed?
F.R.: I would say that above all the
Institute owes its success to the
enthusiasm of a united, unconditionally
committed team: 250 trainers and
15 employees who have made IFBL
the benchmark in financial training.
Where other than the Institute can
you take a 5-day course given by the
prestigious Professor Philippe Jorian
for example – an expert in “Risk” based
in California – for less than €3,000 all
included. Our non-profit status means
we can offer cheaper courses.
W.E.: The Institute definitely benefits
from the President’s significant
involvement on a daily basis.
Currently, we issue 23 certifications,
but given the national and
international economic situation, the
Institute has a strategic role to play in
the coming years.
www.ifbl.lu
www.myofficialstory.com/ifbl
©360CROSSMEDIA
“Training is
a patriotic challenge.”
Werner Eckes (left) and Fouad Rathle
3938 Duke 03
SOCIAL

21. THOUGHT
LEADERSHIP
FACTORY
41
For this new edition,
Duke innovates and
gathers the biggest opinion
leaders of Luxembourg.
Together, they brainstorm and
analyze the situation of the
country, under the leadership
of Josée Lynda Denis.

22. THOUGHT
LEADERSHIP
FACTORY
42 Duke 03
43
360Crossmedia and Gaelle
Vaucher have interviewed
103 talented foreigners
working in Luxembourg.
Here are the results.
“If I need to
use two words
to describe
Luxembourg
than I would
use: Jewelry
box.”
“I loved visiting the “old city”
in Luxembourg guided by
a Luxembourgish friend.”
“Job is really non-
recurring and can be
challenging, but the
spirit in the team is
always really great.”
“As a women I would
say that the safety of
the city is one of the top
advantages for me.”
Would you recommend
Luxembourg to one of your friend ?
What do you like best in Luxembourg ?
“The
smallest
capital
in Europe
is human
Sized.”
11 %89 %
No
Safety
International business
Multiculturalism
Nature
Restaurants
Swimming Pool
Rockhal
Bars
Shops
People
Yes
68 %
57 %
54 %
51 %
49 %
46 %
42 %
38 %
37 %
23 %

23. MingGao
ICBC sets strategy
for European growth
www.myofficialstory.com/gaoming
©360CROSSMEDIA
THOUGHT
LEADERSHIP
FACTORY
44 Duke 03
45

24. Why did ICBC select
Luxembourg as a base for
operation in Europe?
ICBCopenedintheGrand-Duchyin
1998witharepresentativeoffice,which
wasupgradedtoabranchayearlater.
InSeptember2006thegroupsetup
theICBCLuxembourgsubsidiary–
renamedICBCEuropein2011–withthe
goaloffurtherexpandingitsnetwork
usingtheEUsinglebankingpassport.
Soonafter,thebankopenedbranches
simultaneouslyinParis,Amsterdam,
Brussels,MilanandMadrid;Warsaw
andBarcelonafollowedayearlater.
ICBCchoseLuxembourgforitsregional
headquartersbecauseafterhavingbeen
activeinthecountryformorethan15
years,wefinditoffersanattractivelegal
frameworkandbusinessenvironment
withpoliticalandsocialstability,awell-
regulatedfinancialindustry,askilled
multilingualandmulticultural workforce
inthesector,anadvantageoustaxregime,
andaconvenientgeographiclocation.
Notleast,Luxembourgisoneofthefew
remainingEuropeancountrieswithan
AAAsovereigndebtratingfromallthe
majoragencies.SofarICBCEuropeand
itsbrancheshavefoundoperatingfroma
baseherehighlysatisfactory.
How do you manage effectively
all your branches around
Europe?
ICBC (Europe) and its branches benefit
from a single management and operating
team while sharing with each other the
advantages of their various banking
licences, local business resources and a
centralised business processing function.
As the regional headquarters, we act as
a management centre and middle/back
office facility for our branches around
Europe. Last year we established credit
examination, parameter and financial
management centres in Luxembourg.
We plan to consolidate all the financial
reporting to the Luxembourg regulator
and our head office, the IT system and
network management within ICBC
Europe this year or next. Beside the
centralised processing business, we have
three business centres in private banking,
investment banking and global cash
management, which support and guiding
the various underlying branches in these
new business areas.
What are the core elements of
your growth strategy? What is
your vision for the future?
Wewillcontinuetodevelopourexisting
commercialbankingactivitiessuch
astradefinance,projectfinanceand
bilateralandsyndicatedloans,butweare
diversifyingourrangeofservicesinto
areasincludinginvestmentbanking,
privatebankingandassetmanagement,
cross-borderrenminbibusinessand
globalcashmanagement.Fortune500
companieshaveastrongfootprint
inChina,andanincreasingnumber
ofEuropeancompaniesaregrowing
theretoo.Thenumberofmergerand
acquisitiondealsbetweenEuropean
andChinesegroupsisgrowing,and
mostoftheChineseclientscoming
toEuropearemajorclientsofICBCat
home;wewillprovideadvisoryservices
andtailoredfinancialsolutionstohelp
themcompletethedealsirrespectiveof
whethertheyarebuyersorsellers.As
regardstheprivatebankingbusiness,
asEuropeaninstitutionalinvestorsand
highnetworthindividualsincreasingly
seekRMB-denominatedproductsand
investmentproductsfocusingoChina,
weareplanningtolaunchanasset
managementcompanytodistribute
RMBfundsthroughourEuropean
networktomeetthoseclients’needs.As
China’slargestbankweofferatradeand
investmentbridgebetweenthecountry
andEurope.Weattachgreatimportance
tolocalrelationshipsandexpertise,and
areactivelydevelopingourcustomer
baseamongclientsfrombothregions.
Our goal istobe the prime choice ofbank
forcompaniesandinstitutionsdoing
businesswith Chinaor inneedofRMB
solutions.
Comparing with other banks
here, what advantages does
ICBC (Europe) offer?
Firstisthe strength andgrowing
profile ofthe ICBCGroupinthe global
marketplace.ICBCisthe world’slargest
bank intermsoftotal assets,core capital,
customer depositsandprofits,with 4.8
millioncorporateclientsandaround
422 millionretail clients,servedthrough
China’slargestnetwork comprising17,245
branchesandofficesacrossthe country’s
urbanareas.AsChinaprogressively
integrateswith the global economy,our
internationalizationstrategyhaschalked
upremarkable achievementsoverthe
past20 years;our overseasnetwork now
encompassesnearly400 institutions
in40 countries.All thisaddstoour
resources and competitiveness as we
exploreopportunitiesfor development
inEurope.Secondly,we benefitfrom
the constantgrowth inmutual trade
andinvestment.Europe isChina’s
largesttradingpartner,andthe country
isinturnthe secondlargesttrading
partner ofthe EuropeanUnion.The
expansionofbusinessrelationships
offers unprecedented opportunities to
develop both traditional commercial
bankingbusinessandnewareassuch as
investmentbankingandprivatebanking.
Thethirdfactorisinternationalisation
ofthe renminbi,whose accelerationwill
bringhuge newopportunitiesfor overseas
businessdevelopmentfor ICBCasthe
world’slargestbank inRMB business.In
recentyears,we have increasingdemand
forRMBproductsfrombothcorporate
andindividual Europeanclients,andour
financial strength andcapabilitieswill
increase further our competitivenessin
the provisionofcustomisedproductsand
solutions.
“ICBC has
4.8 million corporate
clients and around
422 million retail
clients.”
Ming Gao
©360CROSSMEDIA
Ming Gao, chairwoman of ICBC’s Luxembourg-based European
subsidiary, explains why the Chinese bank chose the grand duchy for
its base and outlines the group’s strategy for the coming years.
46 Duke 03
47

25. “Moreover,
the Grand
Duchy is the
second largest
investment
fund center in
the world.”
Nicolas Mackel,
CEO of Luxembourg
for Finance
©DR
48 Duke 03
49
When in 1979 Bank of China took the decision to open in
Luxembourg its first international presence since the creation of the
People’s Republic, little did anyone expect that tiny Luxembourg
would one day play a prominent role in China’s quest to
internationalise its currency.
Luxembourg plays out
its strengths in renminbi
business
Bank of China was indeed followed
in the nineties by ICBC and more
recently by China Construction Bank,
all operating a network of branches
in other European jurisdictions out of
their Luxembourg hub. These three are
the drivers for renminbi business in
Luxembourg.
Moreover, the Grand Duchy is the
second largest investment fund center
in the world and thus when the world’s
major asset managers started launching
renminbi denominated investment
funds, it came only naturally that
they did so out of their Luxembourg
platforms. With its authorisation of the
first RQFII UCITS to invest in China
A-shares, the Luxembourg regulator
CSSF confirmed its openness towards
renminbi related investment products.
More recently, the Luxembourg Stock
Exchange registered the first listing
of an Dim Sum bond issued by a
Mainland Chinese company outside
China in the Eurozone, the so called
“Schengen Bond”. This is in addition
to the 45 renminbi denominated bonds
listed by other multinationals after the
Luxembourg Stock Exchange premiered
such listings outside Greater China in
May 2011.
Both funds and bonds denominated
in renminbi are addressed to a pool of
international investors who look for
exposure to the Chinese growth and
more particularly to the medium-term
appreciation of the Chinese currency.
Figures show an impressive growth in
volumes since their first evaluation in
2012. Q1 2014 figures will again show
a 20% growth compared to Q4 2013.
Luxembourg can thus claim to show
highest RMB volumes in Europe in
deposits, loans, trade finance, RMB
investment funds, Dim Sum bonds and
RMB securities settlement.
However, helping China in
internationalising its currency is
not the preserve of a single financial
centre. Joining efforts all over Europe
will eventually be for the benefit of the
whole financial world. The soon-to-be
largest economy in the world needs
partners for different activities and
sectors and many financial centres
will each be able to play out their
traditional strengths.
Luxembourg certainly stands ready
to do its part in this new, fascinating
chapter of world economy and show
that, never mind its geographic
minuteness, Luxembourg is a major
player in international finances.
www.rmb-business.com
THOUGHT
LEADERSHIP
FACTORY

26. “We’re taking
nothing for
granted.”
Marc Saluzzi
©ALFI
50 Duke 03
51
Following the renewal of his term of office as Chairman of the ALFI,
Marc Saluzzi gives us an overview of the European investment fund
industry, in which Luxembourg is in pole position.
Initial assessment
outlook
What’s your assessment of your
first term?
The last 2 years have been very
encouraging in terms of volume. In the
wake of the relative setback in 2011, the
assets under management increased
by 120 billion euros in 2012, and in the
first seven months of 2013 the increase
was already 140 billion. [ed: The total
figure for assets under management in
Luxembourg was 2,523 billion euros at
the end of July.]
The volume of assets has increased and
the number of funds is stable, whereas
it has declined in most other countries.
Finally, we are taking on fund managers
from new corners of the world, for
example Africa, China, Latin America
and the Middle East.
I should mention that the industry
stakeholders develop in their own
respective groups. In the past, we had
simple subsidiaries, but today they
often become centres of excellence
within their global network, so it’s
a win-win situation: at a local level,
where companies develop, and at an
international level, where they attract
managers based in other countries.
This all demonstrates Luxembourg’s
maturity as an investment hub.
Luxembourg funds seem to be
immune to the crisis. What’s
your take on this?
Well, I think I ought to mention two
reservations in this regard. First, the
situation is still rather fluid, as we can
see from the highs and lows we’ve been
recording. In June 2013, for example, we
lost assets worth 97 billion euros in the
space of 1 month. We are still very much
tied to the financial markets. And you’ll
be aware that we’re currently faced with
a highly stringent regulatory agenda that
may in fact be damaging to the industry
due to its impact and complexity.
How do you mean to use the AIFM
directive to develop alternative
funds in the Grand Duchy?
This directive is pushing our industry to
adopt the UCITS model. We have what it
takes to make this a success, and we have
a clear objective: Luxembourg UCITS
have a market share of 32%, while non-
UCITS have 15%. We will have to double
the latter figure and get beyond 30%.
But there’s a big difference between the
AIFMD and the UCITS success story.
When UCITS were introduced, there
were no cross-border activities: a French
firm, for example, would invest and
distribute its funds in France. Nobody
saw any advantage in developing what
has become UCITS and the UCITS
passport. But Luxembourg believed in
it, so we gained a first mover advantage.
As regards the alternative fund industry
and the AIFMD, all the stakes were
already global when the directive was
implemented. What matters this time is
not speed of implementation, but rather
how intelligently it can be implemented
in such a way that it gives alternative
fund managers an advantage. For
example, the SIF and SICAR regulations
are affected by the AIFMD. We feel it’s
absolutely essential to update these
specific regulations in step with the
AIFMD. In addition, this might be
what it takes to give Luxembourg a
competitive edge. Another example is
limited partnerships. In this context,
we implemented the Anglo-Saxon
model and thereby further increased
Luxembourg’s European leadership and
appeal. More than ever, the ALFI will
be doing everything it can to help fund
managers and institutional investors
take advantage of the development of
regulated alternative funds within the
framework of the AIFM directive. This is
one of our 5 priorities.
www.www.xxxxxxxxxxx
THOUGHT
LEADERSHIP
FACTORY

27. THOUGHT
LEADERSHIP
FACTORY
52 Duke 03
“Work-life balance is firmly enshrined
in the culture and is reflected in the
country’s broad range of leisure
activities, from golf and shopping
to restaurants and nightlife.”
©DR
Luxembourg’s readiness to accept and absorb people of disparate
cultures and backgrounds has proved a critical asset in attracting talent
from all over the world and harnessing it for the common benefit.
Luxembourg:
Land of empowerment
The minister next door
Luxembourg is a European and global
business capital unlike any other – and
it’s not just that a firm’s offices may
overlook a 16th century fortress or an
idyllic river valley, or that more than
a dozen languages may be spoken
on a daily basis between the firm’s
employees.
The size of the country and its
eponymous capital, together with a
national commitment to its traditions
and history, bring people of authority
and influence within close reach.
Government ministers, regulatory
officials and corporate CEOs are all
readily accessible in a way they would
never be in London or Paris.
European institutions, too, from the EU
Court of Justice and Court of Auditors
to departments of the European
Commission and the headquarters of
the European Investment Bank, are
dotted around Luxembourg’s Kirchberg
plateau, testimony to the grand duchy’s
longstanding commitment to European
co-operation and integration.
A revolving door
Luxembourg’s European vocation is
just one facet of a broader openness
to the outside world, a revolving door
through which the grand duchy carves
out a place in a globalised world while
welcoming and absorbing people and
businesses from abroad.
The absence of barriers to outsiders
and the embrace of diversity in all
its aspects are a key strength of the
country. They create an environment
that draws the best and the brightest
from all over the world and offer the
opportunity to build fascinating and
challenging careers. Logically enough,
Luxembourg’s international community
provide its most enthusiastic
ambassadors.
Keeping a balance
One of the qualities that make
Luxembourg so successful as a
business centre, paradoxically, is the
fact that business is not its be-all and
end-all. Work-life balance is firmly
enshrined in the culture and is reflected
in the country’s broad range of leisure
activities, from golf and shopping to
restaurants and nightlife.
Culture, always an important aspect of
Luxembourg’s national make-up, has
been enhanced by the growth of the
country’s university over the past two
decades, bringing an infusion of talent
and energy in everything from music
to the visual arts. It’s also brought
a breath of fresh air, comprising
entrepreneurship, innovation and
discovery, to the grand duchy’s
economic life.
The global environment in which
Luxembourg operates is in flux, but the
country has long demonstrated a talent
for reacting dynamically to changes
elsewhere. A central part of that is a
readiness to accept individuals without
concern for their background and to
put individual interests aside for the
progress of all.
Freddy Brausch,
Managing Partner, Linklaters LLP
Bob Kneip
CEO, KNEIP
www.myofficialstory.com/freddybrausch
53

28. THOUGHT
LEADERSHIP
FACTORY
54 Duke 03
Investors’ appetite for risk is back and with that shift comes
a change in the investment industry’s philosophy, asset management
and distribution approach.
Alternatives,
a paradigm shift
in the investment industry
Why is the industry changing?
Investors have recovered their
appetite for risk. Strengthening
economic growth in most of the
Eurozone and in the United States has
boosted stock markets in 2013.
Consequently, investors are looking at
new opportunities and sources of
performance. Institutional and retail
investment profiles become more and
more similar: institutional investors’
appetite for alternative vehicles is
currently increasing as institutions
seek to boost their returns and
diversify their asset allocation. They
now account for about half of all
inflows into hedge funds, which are
typically quite large. So much so that
only a small increase in net
allocations represents a significant
inflow of assets.
Retail investors are polarizing their
investments into low-cost passive
vehicles and higher risk vehicles with
better returns. Since 2008, a sustained
period of low interest rates has
encouraged retail investors to invest
in absolute return funds in pursuit of
these higher returns. Listed private
equity funds are also becoming
increasingly popular, demonstrating
the growing appetite for alternative
products besides hedge funds.
This shift in investment patterns
means that the global investment
industry has now to deal with a much
larger range of fund structures and a
growing variety of alternative asset
classes: hedge funds, private
equity,art, venture capital and real
estate.
What is the impact?
As a consequence of that shift, there is
a growing demand for regulated
structures that meet both institutional
and retail investors’ appetite for
alternative investment vehicles.
The traditional aspects of mutual
funds - such as liquidity, risk
management and regulation - are
being combined with alternative
characteristics such innovative
investment approaches, instrument
types and fee structures. The resulting
vehicles are designed to meet the
growing range of investors’ needs.
However, they also present
demanding challenges for the market
players and the industry’s regulators.
The Alternative Investment Fund
Managers Directive (AIFMD) is
www.myofficialstory.com/thoughtleadershipfactory
certainly a catalyst in this process.
The Directive is an attempt to learn
from governance as well as checks
and balances of the well-established
UCITS model which has established
itself as the gold standard for mutual
funds in Europe and much of Asia.
AIFMD aims at applying similar rules
for the management and distribution
of alternative products in a manner
that will protect investors and at the
same time boost the alternative
investment industry.
What part can Luxembourg
play?
The Grand Duchy already is very well
established as the leading domicile for
UCITS funds globally. Going forward,
it aims at leveraging this clear
competitive advantage to build a
similar position in the alternative
space. As a centre for investment,
asset management and
administration, Luxembourg can tap a
wide pool of talent supporting the
fund industry. Luxembourg is also a
world center for the protection of
Intellectual Propriety Rights (IPRs)
which is relevant in venture capital
related funds. A lot of that expertise is
transferable to the world of alternative
fund management.
Luxembourg gets votes of confidence
in its mission to be the centre of
excellence for alternative products but
it cannot take anything for granted.
In 2013, a survey conducted by
Multifonds (*) showed that 89% of
respondents placed Luxembourg in
their list of top three domiciles likely
to be most successful in attracting
new business or funds re-domiciling
under the AIFM Directive. Ireland
came second in the poll, with 73% of
the votes, followed by the UK. Healthy
competition between jurisdictions will
be a powerful driver to foster best
practice and innovation, which will
ultimately benefit investors.
To conclude, a new era begins for the
investment industry. Investor
protection will go hand in hand with
building an innovative and diverse
asset management sector. And
Luxembourg will continue to play a
key role in our industry’s development
by welcoming and serving investors
from around the world, irrespective of
the asset class they wish to invest in.
(*): reference of survey
55
Pierre Antoine Boulat,
CEO, UBS Funds Services
(Luxembourg) S.A.
Keith Hale
Executive VP, Multifunds Services
Yves Speeckaert
Senior VP, Alternative Investment
Funds, Banque de Patrimoines Privés
©DR

29. THOUGHT
LEADERSHIP
FACTORY
56 Duke 03
All that many people know about Luxembourg is its banking and
financial sector. They are missing out on the many captivating secrets
of a country at the heart of Europe with a character all its own.
The secret garden
A bastion of civilisation
As befits a country at the time-
honoured crossroads of northern
Europe, Luxembourg is steeped in
history. Its capital dates back more
than a thousand years, but long
before, the Romans has brought their
civilisation and culture, building villas
and leaving an enduring tradition of
wine-making along the slopes of the
Moselle valley.
The fact that Luxembourg is the
world’s only remaining grand duchy
indicates how it escaped being
swallowed up amid the coalescence
of its neighbouring nations. The
battlements of Luxembourg City, those
that survived the dismantling of its
fortifications nearly 200 years ago, are
part of a spectacular heritage of castles
– equivalent to one for every 10,000
inhabitants.
There are more modern aspects of
civilisation, too: an enjoyment of food
and drink that reflects the country’s
multinational population and has given
Luxembourg more Michelin stars per
head of population than any other
country.
But Luxembourg boasts outstanding
natural beauty, too: its rolling hills,
rivers, valleys and forests. And it’s all
highly accessible – the grand duchy is
within easy reach of Europe’s biggest
capitals by road, rail and air.
Quality of life
The country’s reputation as a bustling
business hub sometimes obscures its
extremely high quality of life, bolstered
by a comprehensive social security
system that ensures the benefits of
affluence are spread around.
Not coincidentally, the crime rate
is among the lowest in Europe.
Luxembourg also enjoys a top-
quality heath care system, enhanced
by international expertise, medical
innovation and a flourishing research
sector focused to biotechnology. Its
education system has an international
flavour too, reflecting the increasing
diversity of the country’s population.
The archetypical melting pot
A combination of a turbulent, much
fought-over history and modern-day
openness to global business and people
has made Luxembourg a genuine
melting pot of cultures, religions, and
nationalities. It has made fluency in
many languages a national gift and
helped instil a spirit of tolerance to
differences rarely matches elsewhere.
That outward-looking attitude has
enabled the grand duchy to flourish in
a globalised world, while preserving
the human qualities of a small country
and the villages that still make up an
important part of the national fabric.
It’s no surprise to find that throughout
the history of the European Union,
Luxembourg has been one of the
most committed advocates of
sinking national differences within
a framework of co-operation and
interdependence.
www.myofficialstory.com/xxxxxxxxxxx
57
Rafik Fischer
Head of Global
Investor
Services of
KBLepb
David Micallef
Managing
Director of The
Bank of New York
Mellon
Peter Meijer
Deputy Director
of Banque
Internationale
à Luxembourg
©360CROSSMEDIA
AD

30. Luxembourg attracts some of the most highly
talented individuals to move within its borders,
inspiring many people from across the world
to join its dynamic environment.
Luxembourg:
attracting
inspired minds
This isn’t an accident, the open nature of
the locals coupled with a very high-
performing business context, ensures
the centre out-performs in the region.
Most people who live in Luxembourg
are very well-travelled, and speak
several languages, propelling an
worldly mind-set, as well as world-class
working practices. While other cities
have struggled with infrastructure and
resources, Luxembourg has grown.
Back to the future
Luxembourg was first known for its
capabilities in back office, and this has
led to almost every major fund and asset
manager having some form of
establishment here, which has propelled
the industry forwards very quickly. The
centralisation of top global firms has
created a super-performance
environment, where many competitors
in the same area are running side by
side, raising the bar. This has
transformed the local skills base from a
back office to a middle office
environment, as the local expertise
becomes ever more skilled, and its
client-base ever larger.
Technology tapping
the talent pool
Through the use of more flexible ways
of working, VPN connections,
conference calls, and Ipad access to
board packs, technology is helping win
the war for talent. As firms become
ever more demanding, technology is
helping build the bridge to the most
qualified individuals though keeping
more skilled individuals in the
workforce. Skilled managers can
remain in the workforce while raising
children, and leaders can be kept
on-board throughout the most busy
travelling schedule.
Building future leaders
Attracting, developing, and retaining
staff is difficult. This is where
companies struggle the most. Building a
career path amid the crisis isn’t easy.
The model to leadership is changing,
because the world is changing. It all
starts with having the right people on
board, exactly the right ones, those who
‘click’, and who think the same way as
you. Give them the space and room to
grow, with a little guidance, and they
will flourish. Talent leaves when there is
no career path, if talent sees your vision
and it engaged with it, they will create
their own in line with yours.
www.myofficialstory.com/ranaheinhartmann
58 Duke 03
59
THOUGHT
LEADERSHIP
FACTORY
©DR
BGLBNPPARIBASS.A.(50,avenueJ.F.Kennedy,L-2951Luxembourg,R.C.S.Luxembourg:B6481)CommunicationMarketingMai2014
J’aime avoir toujours un temps d’avance,
pour mon patrimoine comme pour moi.
Votre patrimoine est unique. Exprimons ses ambitions
grâce à nos solutions innovantes.
Plus d’informations sur bgl.lu/banqueprivee La banque d’un monde qui change
Meilleure banque privée
au Luxembourg

31. ©SHUTTERSTOCK
60 Duke 03
61
THOUGHT
LEADERSHIP
FACTORY
January 1, 2015 will mark the start of a new era for the information
and communications technology sector in Luxembourg. Despite the
end of the special VAT rate for electronic content, many opportunities
await if all market participants come together to seize them.
ICT in Luxembourg:
Seizing the post-2015
opportunities
The smoke has cleared
Over the past 18 months, the information
and communications technology
industry in Luxembourg has faced
uncertainty resulting from the abolition
of the special reduced VAT rate on
electronic transactions from the
beginning of 2015. There were fears that
high-profile players such as Amazon,
iTunes or Skype would leave the Grand
Duchy. But prime minister Xavier Bettel
has noted: “While many international
companies came to Luxembourg thanks
to its attractive VAT rate, that was not
the only factor.” Now the smoke has
cleared, most of the big players appear
set to keep Luxembourg at the heart
of their European strategy to leverage
the country’s top-class infrastructure,
multilingual capabilities and unique
expertise in areas such as IP and tax.
Pooling Luxembourg’s resources
The main priority is to raising
Luxembourg’s profile on the
international stage. Entrepreneurs from
around the world with promising projects
to launch do not necessarily think of
the Grand Duchy as a hub from where
they can conquer the world. Even for
fundraising, the financial industry is not
internationally recognised as a magnet
for start-ups. Outside the country,
few people remember that Skype was
primarily a Luxembourg venture capital
story. The priority is therefore to mobilise
all the available resources available
to promote Luxembourg, including
FedilICT, APSI and Luxembourg4ICT,
pooling efforts, budgets, networks and
expertise. Events such as ICTSpring
should also be supported as a way to
attract international industry players
to Luxembourg for a day or two. And
as we all know, many people come to
Luxembourg for a short visit and end up
staying for decades.
Innovative players in the spotlight
It is crucial to pay attention to the
foreign companies already established
in Luxembourg – and not just the
big names such Amazon, Big Fish or
Rakuten. A carbon nanotubes company
is established in the Grand Duchy,
ready to conquer the world with a
disruptive technology. Another one
specialises in portable 3D scanners. A
third is investing in gene technology.
Fast growing companies with massive
potential expect to be in the spotlight!
They need a rapid response to their
requests, easy access to the country’s
decision-makers and strong support
when it comes to promotion. In Silicon
Valley, such CEOs are asked daily to
speak at events or to the press. Their
high profile around the world can
help put Luxembourg more firmly
on the international ICT map – faster
response can mean more deals and
more jobs. Together Luxembourg’s
ICT professionals have an opportunity
to create a unique culture where
businessmen, investors and authorities
share big ambitions and achieve them
by accepting higher risks in order to reap
the huge potential rewards.
www.myofficialstory.com/joellehauser
“A carbon nanotubes
company is already
in Luxembourg,
ready to conquer
the world with
a disruptive
technology.”

32. From a 157 years old start up to
delivering 150 years of Chinese expertise
to/from Luxembourg and Hong Kong.
RMB
internationalization
A relative “newbie” on the Luxembourg
financial sector scene, Standard
Chartered Bank, a 157 years old Bank,
recently opened its doors on 6 May
2013. Standard Chartered Bank’
Luxembourg Branch’s main objective
being to handhold and serve new and
existing Asset Manager clients in
their Luxembourg UCITS strategies,
particularly as Luxembourg enters
the RQFII scheme (renminbi qualified
foreign institutional investor) world at
a quick pace, ever since the launch of
the first Luxembourg-domiciled RQFII
in November 2013.
Do you Renminbi?
Standard Chartered has an unbroken
history of 150 years of operation in
China. In 2007, Standard Chartered
Bank (China) Limited) became one of
the first foreign banks to incorporate
officially in China, demonstrating its
commitment and leading position as a
foreign bank in this important market.
Since this local incorporation, all of its
22 branches in China are able to serve
the RMB requirements of clients in and
outside of China.
Building on its long history in China
and Hong Kong, on-the-ground
presence and intimate understanding
of the Chinese currency, Standard
Chartered has been a pioneer in
the RMB business and continues
to lead as the market develops. The
international use of RMB has increased
faster than many had expected. Today,
the currency is poised to become a
major force in global business. As the
offshore RMB market continues to
develop, Standard Chartered assists
to navigate the changes and seize
growing opportunities.
Luxembourg – an International
RMB centre
I strongly believe that Luxembourg
stands a very good chance to succeed
in the RMB space. For instance, the
importance of Luxembourg as an
offshore investment centre for RMB is
a much bigger deal than the UK: as the
home of many UCITS, Luxembourg
serves as a central point for marketing
funds across Europe, Asia, the
Americas and the Middle East –
efficiently using one fund structure.
Today, Luxembourg’s RMB deposits
exceed those in both Paris and London.
More than half of Chinese investment
in Europe gets structured through
Luxembourg. The increasing presence
of Chinese banks will also give this
country an edge.
All this provides a compelling story
on the evolution of Luxembourg as
a recognised International RMB
Centre. Going forward, this can only
lead to success as more Chinese and
other international players target
Luxembourg as their European
centre for their RMB business growth
strategies.
Josee Lynda Denis
CEO Luxembourg
Standard Chartered Bank, Luxembourg
Branch
www.standardchartered.com/en/banking-services/renmimbi/index.html
“I strongly believe
that Luxembourg
stands a very good
chance chance
to succeed in the
RMB space.”
Josée Lynda Denis
62 Duke 03
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©360CROSSMEDIA

33. Frédéric Perard, head of BNP Paribas
Securities Services in Luxembourg,
explains how the organisation is
developing its presence in China and the
opportunities and threats posed by its
emergence on the global stage.
The importance
of being in China
What does the Chinese
market represent for a global
organisation like BNP Paribas
Securities Services?
It is a critical market for development
at the heart of Asia, and one where we
are investing substantial resources, as
befits one of the key areas of focus of
the BNP Paribas Securities Services
“Ambitions 2016” plan.
Our group has had a presence in
China since 1860, when we opened an
office in Shanghai. The Hong Kong
office opened in the 1950s, since when
our business has started to accelerate.
Today we have around 2,000 people
split between Hong Kong, Shanghai
and Beijing, where we opened a
representative office in 2010.
Our presence is set to expand further
given the development of fund
business in the Chinese market.
When UCITS invest in China, a local
presence is preferable for optimum
protection of its assets – and also to
match up to our competitors, who are
also there on the ground.
How do you build up your
relationships with your
Chinese partners?
It helps that BNP Paribas Securities
Services’ business in the Asia-Pacific
region is headed by a Chinese
national, Lawrence Au. Our client
service experts are for the most
part local people or at least speak
Mandarin and Cantonese. Our priority
is to immerse ourselves in the culture –
we have special training for that.
On the other hand, a growing number
of Chinese professionals are studying
in the US or in Europe – they benefit
from a kind of dual culture, which
helps us to communicate in English.
But aside from the human
relationships, the most important
thing is to help our clients to grasp
the benefits of Luxembourg and its
financial industry. For this reason
we offer educational trips – in 2010,
40 senior Chinese managers from
the banking and insurance sectors
took part in the first Sino Euro Asset
Management Forum for Chinese
Senior Executives, which took place in
Luxembourg and in Paris. The second
edition was organised from May 19
to 23 this year, again in partnership
with EY.
How do you see financial
relations developing between
China and Europe over the
coming years?
I see both opportunities and threats!
Opportunities first: Chinese asset
managers want to sell their expertise
and are creating UCITS in Europe
for distribution throughout the world.
The trend began in 2008 through
subsidiaries based in Hong Kong,
although for a time is was dampened
by the financial crisis.
We are now seeing a new wave of
asset managers seeking RQFII
[Renminbi Qualified Foreign
Institutional Investor] scheme quotas
to distribute products in China and
benefit from the emergence of the
country’s middle classes.
As for the risks, they lie mostly in
China’s economic firepower and its
ability to buy companies all over
Europe. One could realistically
imagine a Chinese bank acquiring
service providers to make itself one of
the world’s biggest custodians. To sum
up, everyone wants to be Asia’s funds
champion, but to achieve this, UCITS
and Luxembourg will need to follow
an ambitious strategy.
www.myofficialstory.com/fredericperard
www.securities.bnpparibas.com
“China represents
one of the key areas
of focus of the BNP
Paribas Securities
Services “Ambitions
2016” plan.”
Frédéric Perard
©360CROSSMEDIA/S.M.
64 Duke 03
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FACTORY

34. 66 Duke 03
An interview with Joëlle Hauser, Head of the Investment Funds
Department at Clifford Chance Luxembourg.
Looking over
the Great Wall
of China since 1980
Is your firm increasing its
activities in China?
Our firm is already very active in the
People’s Republic of China. Clifford
Chance’s roots go back to 1802, with
our Hong Kong office opening in
the early eighties as our firm. At the
time, our finance practice was driving
the firm’s international expansion,
exporting English law financing to
upcoming financial centres in Asia.
China continues to be one of our key
focal points, which we currently cover
via offices in Hong Kong, Beijing and
Shanghai. We have thus been looking
over the Great Wall of China for over 30
years now.
We are actively developing our
relationship with our Chinese clients
with respect to both Chinese outbound
investments into Europe and European
inbound investments into China. On
the outbound side, our team recently
advised a Chinese policy bank on
setting up the first Chinese sovereign
wealth fund in Europe to make private
equity investments in Central and
Eastern Europe. This fund was one of
Luxembourg’s first AIFM compliant
funds. On the inbound side, we are
seeing major fund promoters setting
up investment schemes that invest
in China under the QFII or RQFII
regimes.
How do Chinese clients
perceive Luxembourg?
PRC managers and investors are very
interested by Luxembourg. Recent
marketing efforts have put Luxembourg
on the map within the Chinese business
community, and my Chinese partners
and I experience a general awareness
and curiosity about our country.
In recent years, Chinese banks have set
up in Luxembourg. This development
has been followed with great interest by
the asset management community. We
note that they tend to consider Europe
as a single market and Luxembourg as
their gateway into this market. Funds
such as our sovereign wealth fund
form a cross-cultural bridge to facilitate
investment co-operation between
China and Europe.
What is your agenda for the
future?
We must now build on the general
awareness and curiosity by informing
the Chinese business community
about Luxembourg. This year is the
Chinese year of the horse, and just
as a horse symbolises travel, we will
be reaching out, visiting our Chinese
clients and continuing to build mutual
understanding.
The future of investment management
lies in tailor-made interdisciplinary
and cross-border structures. We must
offer products that appeal to both sides:
on the one hand solid from a legal and
tax perspective, but on the other hand
also understandable and appealing
from a Chinese perspective. With our
dedicated funds teams, I am confident
that we have the appropriate tools to
continue building this bridge.
www.myofficialstory.com/joellehauser
“Luxembourg funds form
a cross-cultural bridge
to facilitate investment
co-operation between
China and Europe.”
Joëlle Hauser
©360CROSSMEDIA/S.M.
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THOUGHT
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35. “Clients’ rights
must and will
be protected
by the Bank.”
Svetlana Fedotova
©360CROSSMEDIA
Svetlana Fedotova, the managing director of East-West United Bank
says that the bank is ready to provide foreign investors who are
interested in the European market with its expertise and wide network
of partners.
Svetlana Fedotova:
west meets east
Is the current tension over the
situation in Ukraine affecting
the relationship between the
bank and Luxembourg?
Svetlana Fedotova: The Grand Duchy
is an ideal place for a dialogue. It is
a small country with a broad variety
of nationalities and different points
of views. Luxembourg can afford to
have an independent opinion and stay
neutral at the same time. Naturally,
significant discussions concerning
Russia and its role in international
business are taking place here. As
Ukraine is one of our major markets, we
understand what people think, how they
feel, what problems they face and what
their companies have to deal with on a
daily basis. The same applies to other
countries of the former USSR. Current
situation in Ukraine is forcing us to be
even more cautious: we aim to anticipate
the events and the risks associated
with them. On the other hand, such
circumstances create an advantage
for the development of the business.
EWUB has four decades of successful
trading experience in Luxembourg and
thorough knowledge of Russian, CIS
and, in particular, Ukrainian markets.
Consequently, it is becoming the only
possible partner customers can rely
on. Our role as a bank is to provide the
clients with a possibility to work with us,
not to close the doors in front of them.
We welcome all clients, unless they fail
to meet compliance requirements.
What growth opportunities do
you see for the bank and for
Luxembourg?
Svetlana Fedotova: One of the most
important activities for us is the
establishment of closer ties with clients
from countries such as Azerbaijan,
Kazakhstan, China, etc. We are
constantly on the lookout for the
latest services that may be of interest
to our customers. At the same time,
we try to take advantage of all the
existing and emerging opportunities
in Luxembourg. For example, Freeport
- the construction is well underway
and it is to be launched in September
2014. Storing art collections and other
valuables in Luxembourg “free zone”
is sure to attract many more private
banking clients. We always promote
Luxembourg as a market with various
new projects and ideas which we offer
to our clients. EWUB’s small size is its
advantage: it grants us flexibility and
independence in decision-making.
Our goal is not to sell products, but to
provide customers with access to the
widest range of services available and
to find the best solutions and the most
suitable partner for them.
So you see China as an
interesting target market for
the bank?
Svetlana Fedotova: I think that there are
major opportunities both for Russians
investing through our bank and for
Chinese entering the European market.
The trend is easily recognisable as
Chinese banks are establishing their
European headquarters here. We
intend to use the unique platform of
Luxembourg to avoid unnecessary risks
for the clients and to find opportunities
for both sides in terms of investments
and payments. It has already become
clear that Chinese businessmen prefer
to invest into Russia via Luxembourg
to take advantage of its competitive
tax rates. I believe that in the future
there could be settlements between
Russia and Europe in roubles; later
it might be settlements in renminbi
through Luxembourg or settlements
in securities. We are ready to structure
such deals, with both Chinese state and
big private investors.
What specialised expertise can
the bank offer its clients?
Svetlana Fedotova: EWUB can provide
customers with access to the markets
they are interested in, owing to our
team of highly skilled professionals
who have extensive and diverse
international experience and a wide
network of partnerships. We cooperate
with first-class banks such as ING,
UBS, Credit Suisse, Goldman Sachs and
Deutsche Bank. Our French partners,
who have access to European and Asian
markets, and particularly, Singapore,
assist us in finding solutions in the field
of securities. We build our business
on the principles of partnership. We
are looking for professionals who
have expert knowledge of the Russian
business and who understand Russian
mentality. Our bank sees itself as
a two-way bridge between Russian
and Chinese investors that runs
via Luxembourg and has a strong
foundation as our shareholder is the
largest publicly-traded Russian holding
JSFC Sistema.
www.myofficialstory.com/svetlanafedotova
www.ewub.lu
68 Duke 03
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36. THOUGHT
LEADERSHIP
FACTORY
70 Duke 03
At the forefront of the constantly developing Luxembourg financial
market, Marie-Jeanne Chèvremont has worked tirelessly to achieve
recognition for women’s skills and their contribution to that market.
A look at Balance
in the Workplace
Give us a little insight into
your career so far
WhenIjoinedCoopersLybrandin1975,
itwasthefirsttimethatthepartnershad
begunrecruitingwomenasauditassistants.
TherewerefourofusinLuxembourg,where
Istayedfortwoyears.Ithenspenttwoyears
inBrussels,duringwhichtimeIledan
assignmentinZaire.Onmyreturn,in1980,
IbecamethemanageroftheLuxembourg
office,withateamofsixpeopleandavery
clearstrategy:positionthefirminthe
InvestmentFundsmarketinordertoenter
thebankingsector,internationaltaxation
andeventuallymanagementconsulting.
IwaspromotedtoPartnerin1987.After
manymonthsandcountlesshoursas
memberoftheworkgroupthatcreatedthe
UCITSdirective,Irememberwellthe31st
March1988,whenitwasintroducedbythe
IML(LuxembourgMonetaryInstitute).
Twenty-fiveyearslater,UCITSisnowa
globalbrand.WhenCoopersLybrand
mergedwithPriceWaterhousein1998,our
headcountincreasedover500employees.
IwasappointedManagingPartner,with
responsibilityforInvestmentmanagement
inEurope,andthenHumanCapital,where
Iwasjointleaderatworldwidelevel.Atthe
endofmytermofofficein2007,Ibecamea
directoratKNEIP,aconsultantforArendt
Medernach,andthenfortheEdmondde
RothschildPrivateBank.Today,Iworkvia
mycompanyMJCCONSEILasabusiness
advisorandindependentdirector.
How has the role of gender in
business changed over time?
Thetopicwasrarelyacknowledged,let
alonediscussed,untilthe1990s.In2001,
whiledeliveringtheclosingspeechtoover
150seniormanagersatPwC,itoccurred
tomethattherewasaproblem.Thevast
majorityofthemweremen,despitethe
factthatwehadbeenrecruitinganequal
numberofmenandwomenfortheprevious
tenyears.Inanefforttounderstandand
rectifythisimbalancethatclearlyexisted
ataseniorlevel,weputinplaceaworking
groupthatsubsequentlyproposedaseries
ofpracticalactions.Toremaincompetitive,
andbetheindustryleader,wewere
committedtoinvestinginkeepingourbest
talent,regardlessoftheirgender.
ThingshavedevelopedinLuxembourg,
especiallyintermsofinfrastructure,which
makeslifeeasierforfamilies.Forexample,
mydaughterhasachildandhasneverhad
difficultyfindinganursery.However,I’m
notinfavourofon-sitecompanynurseries,
asveryoftenitresultsinthewomanstill
beingdistracted,checkinguprepeatedly
ontheirchildrenthroughouttheworking
day.Womenmustfeelfreetomakechoices
thatallowthemtocombinetheirfamily
withtheircareer,butclearlythesewomen
alsohavetoaccepttheprofessional
ramificationsthatsuchchoicesentail.Ifa
womantakestwoyearsoff,sheshouldn’t
necessarilyexpecttoreturnandbeatthe
samelevelintermsofgrade,experience
andsalaryasthemenorwomenwhoare
stilltherewhenshereturns.
How is gender balance
addressed at KNEIP?
KNEIP’sHRdepartmentmonitors
employees’careersandensuresthatthere
isnodiscriminationonanylevel.However,
theexamplemustalwayscomefrom
aboveandatKNEIP,itdoes.Currently,on
theKNEIPBoardofDirectors—ofwhich
IamtheChairman—thereare2men
and2women.BobKneip,themajority
shareholder,setoneimmutablecondition
whenhefoundedtheBoard:amananda
womanmustbeco-optedintotheboard
atthesametime,wheneverchanges
occurinitscomposition.AsCEO,healso
appointedStéphanieNöeltotheExecutive
BoardasHeadofOperations,after12
yearsofrisingthroughthecompany’s
ranks,helpingtomakeKNEIPwhatitis
todaythroughherbusinessacumenand
exceptionaloperationalexpertise.It’sa
greatexampletofollow.
www.myofficialstory.com/mariejeannechevremont
“Women must feel
free to make
choices that allow
them to combine
their family with
their career.”
Marie-Jeanne Chèvremont
©360CROSSMEDIA/C.O
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37. ©360CROSSMEDIA/M.S
7372 Duke 03
BUSINESS
Venetia Lean and Jean-François Willems
say Luxembourg is the perfect environment
to enable a bank like Havilland to go from
strength to strength.
Banque
Havilland:
by entrepreneurs,
for entrepreneurs
www.myofficialstory.com/banquehavilland
www.banquehavilland.com