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The lark mirror

As Kenneth Blanchard said, "Managing only for Profit is like playing tennis with your eye on the scoreboard and not on the ball" (K. Blanchard, The power of Ethical Management. Ballantine, 1988, p. 109).


This is exactly what the CSSF is doing in its latest press release relating to the Global situation of undertakings for collective investment.


As at 30 April 2009, total net assets of undertakings for collective investment and specialised investment funds reached EUR 1,592.932 billion compared to EUR 1,526.563 billion as at 31 March 2009, i.e. a 4.35% growth on a monthly basis

They explain that the positive statements regarding the coordination of macroeconomic policies, made during the G20 summit in London, as well as indications of a mitigation in the deterioration of the economic outlook in April, contributed to the increase of equity prices on almost all equity markets. Thus, most equity UCIs recorded gains in April compared to the previous month.

The Luxembourg UCI industry registered a positive variation amounting to EUR 66.369 billion during April. This positive variation is composed of EUR 59.364 billion resulting from the positive impact of the financial markets and EUR 7.005 billion originating from positive net issues


balle Madoff.jpg

This press release ignore the ”ball” i.e. two facts that occured late May and that weaken the Luxembourg UCI industry in the future:

-         on the one hand the CSSF press release on UBS, where it appeared that the regulator in Luxembourg neither sanctioned the bank, nor took a clear decision in favor of the investors victims of Madoff: it is up to the justice to decide and clarify possible valid and opposable contractual clauses that could limit UBS’s responsibility;-          

-         on the other hand, the day after, Commissioner McCreevy admitted failures in the transposition of the liability of depositories: that “the minimum high level principles of the UCITS Directive have been transposed in very diverging ways by Member States, which means that some EU investors in UCITS funds are better protected than others”.


In order to analyse the situation, with a fair view, the CSSF could ignored the above facts that would have justified a reserve.


Once more it is a misleading communication that ignores pending issues.




05:53 Posted in Luxembourg | Permalink | Comments (0)

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