The news that Luxembourg will be the first market to implement the Alternative Investment Fund Managers (AIFM) Directive has been welcomed by AAA.
Boston, MA, May 29, 2012 - The news that Luxembourg will be the first market to implement the Alternative Investment Fund Managers (AIFM) Directive has been welcomed by Alternative Asset Analysis (AAA).
The country’s officials said that legislation’s introduction would be made imminently and that it was hoping that the law will be passed by the government in Luxembourg “by the end of the year”.
AAA, an alternative investment advocacy group, claims that the legislation will help to further improve the reputation of alternative investment products and asset classes at a time when more and more people are opting for these kinds of investments.
“It’s great news that Luxembourg is taking a serious approach to alternatives and that it is doing what’s necessary to ensure that investors can have as much confidence in the alternative investment market as it does in traditional investments,” stated Anthony Johnson.
A legal expert in Luxembourg, Jacque Levinger, told the Financial Times, “If implemented by the end of this year, it will give the industry around six months to fully comply. It is important all participants have time to understand how to comply.”
The legislation is set to increase fund managers’ ability to offer alternative asset classes to investors who may be wanting to diversify their portfolios. “This is very popular at the moment," added Mr Johnson. “People know that equities are very volatile and are keen to invest in tangible assets such as precious metals, real estate and forestry to try to reduce the risk in their investment portfolio.”
AAA supports a range of alternative investments and is a particular advocate of ethical investment options that are socially and/or environmentally responsible. It supports forestry investment through firms like Greenwood Management that run sustainable plantation of non-native species of timber in Brazil, Canada and Costa Rica. Investment in these projects can cost anything from around EUR10,000.
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