Australian fund manager LM Investment Management Services has selected KMG SICAV-SIF for its Luxmbourg funds.
LM Investment Management has a 13 year track record, distribution in some 60 countries and AUD1 billion under management. To be totally accepted by investors across all European States, however, it still needed that EU feel, structure and presence.
The objective was to provide LM with a cost and time effective solution which did not involve them in having to replicate their existing Australian infrastructure in Europe.
Working with LM, KMG put together feeder funds, linking directly into the existing Australian Master Funds. This gives EU investors the comfort and the extra layer of protection of a Luxembourg investment. Meanwhile for LM their investment approach, combined assets and management all remains undisturbed in Australia.
With an eye to 2013 and the distribution problems that may face non EU funds, KMG sought to ensure that the new Feeders should be in a position to obtain their EU passports.
“The technical challenges for us was to obtain an understanding of Australian Legislation so as to be able to make modifications to the underlying funds to ensure that the new Feeders are AIFMD ready," says Paul Pavli, KMG’s Operations Director.
LM is absorbing any feeder fund costs to ensure that clients will receive the same returns whether investing via Luxembourg or directly into the Australian Master.
LM founder and CEO, Peter Drake says: “Many European investors are looking further afield for growth and returns and Australia is the logical choice. Utilising KMG’s Luxembourg structure for our established income funds will allow European advisors and institutions greater ease of access to the quality Australian investments that we manage. With KMG’s platform all the proven legalisation, legal, custodial, audit and administrative infrastructure required to operate soundly exists.”