BÖRSE EXPRESS: You are the managing director of LAFV, the Liechtenstein Investment Fund Association – perhaps as a brief introduction: what is its role for the association. Somewhat comparable to VÖIG, the Association of Austrian Investment Companies?

DAVID GAMPER: It’s basically our counterpart in Austria. With us, because Liechtenstein is a very small home market, we do more marketing abroad for the fund location.

Marketing in the hope that …?

… asset managers who are not as big as the black rocks of this world and want to set up a fund, do this in Liechtenstein.

Why does the focus on smaller companies bring a black rock to an immense volume in one fell swoop?

The Blackrocks have already set up their structures in the cross-border locations in Luxembourg and Ireland. We focus on private label funds. A niche in which we are very successful.

In your opinion, what makes this success?

We take people seriously, even with small volumes … this often results in large companies that we have helped get on their feet. We are also strong when it comes to individual solutions, where a great deal of know-how is required.

The know-how comes from where?

From decades of experience, including through our trustees, structure and manage the foundation’s assets around the world. Our strengths are not standard products – we find the individual solution.

Speed ​​is also seen as a guarantee of success for the financial center – for example when setting up funds. It shouldn’t be much more straightforward than in the rest of Europe, as the same rules apply. What is this speed, the manpower? Or do you interpret the rules a little more gently?

The rules are respected. But here’s a simple example from the UCITS fund area: Whether it’s an equity fund for Europe or America, it is always an equity fund. Normally, the text of these documents hardly differs. We also have sample prospectuses that have already been approved by the Financial Market Authority, in which only a few things are changed. When When, the rest remains standard text. Other locations want to earn more and create a new brochure every time. We are also legally anchored that the approval of a UCITS fund may not take longer than 10 days.

Liechtenstein also benefits from passporting with the EU, which means that Swiss fund providers, for example, use the Liechtenstein detour to the EU. Are we seeing a similar movement from the UK or is something to be expected?

We don’t see that for Liechtenstein. The language is a very important factor because Ireland is closer. And Luxembourg has set up a fast lane for British providers and is also closer.

The guideline “Growth through innovation and sustainability” can be found in the Roadmap 2025 of the Liechtenstein Bankers Association. Do you find yourself in the fund industry?

Absolutely, sustainability is a very big topic: In a study from 2016 on Liechtenstein funds it was found that even then they had a very strong sustainability rating and would not have had any sustainability labels. Sustainability is in the genes of our asset managers.

Are there any figures on the number and volume of sustainable funds?

Currently around 10 percent of the funds are sustainable, but 24 percent of the volume. We feel comfortable with the keyword sustainability. And you have to be part of the innovation. For example, we launched the first token-based fund in Liechtenstein. We can also identify well with this roadmap.

ESG, sustainability is on everyone’s lips and everyone is green. As is well known, there is also greenwashing. In your opinion, how is your industry positioned here and how do you ensure that you can believe a Liechtenstein fund if it says Sustainable?

Greenwashing is a huge issue. However, we are not the fund managers, but the fund administrators and we make sure that the regulations are adhered to. And then classify the funds accordingly.

And: every fund industry in every country has its rules of conduct. However, Liechtenstein is the only country in the EEA where these have been approved by the FMA and are binding. In the event of violations, there is against it. This is additional investor protection. Here we are once again one step closer to protecting customers.

Is there increased interest in fund constructions on the part of the almost 10,000 private foundations in Liechtenstein? I imagine it would be difficult to maintain the cover pool with intentional distributions but zero interest.

Foundations themselves have been investing in funds for many years. The most recent addition is that foundations or family offices are increasingly launching funds that are filled with parts of the cover pool. The reasons for this can be tax or legal.

In summary, what are the opportunities and advantages of the Liechtenstein fund center? And who could / should be interested instead of setting up their funds in Austria?

We are interested in individual solutions, for assets that are more of a niche product. Then Liechtenstein is interesting for an Austrian asset manager. Or for those who would also like to offer cross-border services: we also welcome the small asset manager, while in Luxembourg many providers already need around 50 million euros in assets to start with.

Are the newly launched funds mainly passively or actively managed?

More than 90 percent of the funds offer active management. This is also due to the fact that around 80 percent of the new editions are alternative investment funds, and these are often actively managed.

Does the world still need so many new funds, isn’t there enough already?

With UCITS funds it tends to be less, there is a concentration. However, the AIF area is still new. It only started there in 2013 and we are only at the beginning of development. There are still many strategies that can be implemented as an AIF.

Recently it was said again and again that more money was flowing to Liechtenstein. When you talk to investors, what is the rationale?

Often it is the fear of inflation. Liechtenstein is a politically stable country with no national debt whatsoever. Many find that very attractive.

About LAFV Liechtenstein Investment Fund Association

The LAFV was founded in September 2000 and is the official interest group for the Liechtenstein fund industry. A particular focus is on building and maintaining relationships with government and supervisory authorities, existing associations and associations and interest groups in the financial services sector in order to utilize overarching interests and exploit synergies. More about LAFV here

About David Gamper

Studied at the Leopold-Franzens University Innsbruck, majoring in business administration, specializing in finance and banking. He worked as an asset advisor and manager and later in management positions in financial services companies in Italy, Austria and Liechtenstein. David Gamper has been Managing Director of the LAFV Liechtenstein Investment Fund Association since 2014. Since 2020 he has been a member of the Board of Trustees of the Deposit Protection and Investor Compensation Foundation SV Liechtenstein.