Luxembourg made solutions for international clients

Latin american countries are not only growth countries in macro-economic terms but are also growth countries for Luxembourg’s financial centre in multiple sectors. From 17 to 19 November, Luxembourg showcased its expertise as a global financial center for Brazilian professionals, investors and corporates in the context of a financial mission to Brazil headed by HRH the crown Prince of Luxembourg and led by HE Pierre Gramegna, Luxembourg Minister of Finance.
Joined by more than 70 high-level executives from Luxembourg’s international financial centre, the official delegation was a strong testimony to the good relations between the two countries and the interest from Luxembourg professionals for Brazil.
 
The three-day visit included two financial seminars in São Paulo and Rio de Janeiro for Brazilian bankers, asset managers and financial sector professionals, introducing the Luxembourg financial centre as a leading European hub for international investors and asset managers.
 
In his speech at the kick-off seminar in Sao Paulo attended by more than 220 professionals, HRH crown Prince Guillaume reminded the audience of at the long-established relationship between Brazil and Luxembourg where the presence of major Luxembourg multinationals such as SES and Cargolux goes back a long time. In the case of ArcelorMittal, their presence even goes back to 1921 when Luxembourg’s Arbed founded BelgoMineira in Eastern Brazil.
 
Strong relations also apply to financial services. Finance Minister Pierre Gramegna outlined how Luxembourg’s financial centre offers Brazilian financial professionals an international platform to serve their client’s business activities.
 
« The growing international focus of brazilian investors and entrepreneurs interested in investing in Europe as a stable and mature market has put a greater emphasis on finding transparent and complementary wealth management solutions. As such, Luxembourg has built up a unique long-standing expertise in providing compliant tailor-made solutions to international clients with complex multi-jurisdictional issues who wish to develop and transmit their wealth ».
 
In a panel covering Luxembourg solutions for Brazilian investors and funds managers, Marc Saluzzi, ALFI chairman reminded that the Brazilian market is a primary market alongside China, Australia and Mexico.
 
« Luxembourg funds are a great opportunity for brazilian asset managers to export their expertise throughout the world. Brazil is a big country with a lot of institutional investors, including pension funds. Those investors need to diversify their portfolios, and our funds can be a good way of doing that », he said.
 
As of today, 32 Brazilian funds are domiciled in Luxembourg with a total amount of 1.5bn USD. Three of the major Brazilian banks are present in Luxembourg.
 
Steve Jacoby, Par tner at clifford chance laid out how the Luxembourg Stock Exchange (LuxSE) is a primary market for Latin america while 74 Brazilian issuers such as Vale, Odebrecht, Electrobras and a dozen major Brazilian banks account for 40% of Latin american securities listed and traded in Luxembourg.
 
Philanthropy can play a fundamental role in social development in Brazil while donors are moving away from pure charity to philanthropic giving, which involves a more long term and focused approach. Tonika Hirdman, Director General of the Fondation de Luxembourg explained how Luxembourg can help Brazilians seeking a strategic approach to their philanthropic endeavours.
 
Brazil’s Vice-President Michel Temer received crown Prince Guillaume and Minister of Finance Gramegna for an exchange of view on the latest political and economic developments in Brazil and in Europe as well as to discuss bilateral relations.
 
Communiqué par Luxembourg for Finance // Photos © Rogerio von Kruger