Luxembourg Regulated Investment Vehicles - Alfi

3StrategyPromoters/ initiators are conducting avaried range of strategies regarding the useof investment vehicles in Luxembourg. Thestrategies may be retail oriented or dedicatedto professional investors. They are alsoaiming at market segments such as hedgefunds, real estate and private equity.Fund Strategy interms of assets undermanagement2008 20093%3%10 %8 %25 %18 %22 %24 %16 %16 %26 %29 %■ Bond■ Equity■ Balanced■ Money market■ Fund of Funds■ OtherSource: ALFIThe above table confirms the trend thatwas seen in 2009; a rising stock market andsignificant redemptions from funds of funds.In recent years, there were also newstrategies in niche markets, such as Shariafunds, gold fund, microfinance funds andsocially responsible funds. Certain Hedgefund strategies have also been acceptedas UCITS 3 funds and have indeed beenpopular with certain promoters. Howeverthey remain niche markets and none of thesestrategies had any significant impact on theindustry as a whole.Real estate and private equity funds haveproved to be popular as SIFs and SICARsaiming mainly at institutional investors.The niche markets are aimed principally toinstitutional investors as more funds are nowcreated as SIFs rather than the traditionalUCITS 3 funds.