Delano November-December 2018

No. 62 NOVEMBER/DECEMBER 2018

RISKY BUSINESS

30 LUXEMBOURG’S ECONOMY

What if…

The shocks that could put a spanner in the works.

52 SPEAKING UP Tessy Antony wants to empower women and help young people to take action.

EARTHY FLAVOURS Michelin-starred chef Ilario Mosconi talks truffles.

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Politics

Everything’s Gréng? a surprise to many political commentators, and perhaps even to the party leaders themselves. But it is not one that they have shied from.

Emboldened by winning three seats and thereby saving the coalition it enjoyed with the DP and the LSAP, Déi Gréng expects to have even more sway over government policy than during the previous administration.

Their coalition partners, and the opposition CSV, could learn a lesson or two. As the Pirate Party’s Sven Clement pointed out on election night, the electorate appeared to appreciate the Greens for their credibility.

The party’s ministers all managed to implement many of the policies to which they were committed under the 2013 coalition agreement.

The Greens, and François Bausch in particular, endured the wrath of their most vocal opponents in the press and on social media--some commentators went so far as to say that the Greens’ “collectivist” mobility policy was forcing people to use public transport--but they stuck to their guns.

The party also suffered the loss, just six months before polling day, of one of its most respected politicians, Camille Gira. His replacement, the MEP Claude Turmes, was consistently regarded as one of the hardest

No. 62 NOVEMBER/DECEMBER 2018

RISKY BUSINESS

working members of the European Parliament. Honesty, consistency and direct engagement appear to have paid off across the board as the party gained an average of 5% around the grand duchy.

30 LUXEMBOURG’S ECONOMY

What if…

Immediately after the election results were announced, Félix Braz said

The shocks that could put a spanner in the works.

that Déi Gréng had always been treated equally by the other two partners of

52 SPEAKING UP Tessy Antony wants to empower women and help young people to take action.

NOVEMBER/DECEMBER 2018

the so-called Gambia coalition. He may have been playing his cards close

98 EARTHY FLAVOURS Michelin-starred chef Ilario Mosconi talks truffles.

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to his chest because, as an analysis by Laurent Schmit of Reporter.lu suggests,

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ILLUSTRATING DELANO The cover illustration for this edition was created by Doriano Strologo. A native of Numana in Italy, where he still lives and works, Strologo attended the E. Mannucci institute of art.

Working in both traditional and digital formats, he started his career by creating illustrations and portraits for L’Unità, Il Sole 24 Ore, and Italia Oggi. His illustrations are now featured in Il Fatto Quotidiano, Corriere della Sera, Die Welt, Woche, The Boston Globe and Los Angeles Times. He also does covers and illustrations for children for Loescher, Helbling Languages, Alma editions, Gulliver editions and Eli Language.

the DP and the LSAP often conspired to block some of the more environmentally progressive policies Déi Gréng wanted to promote.

With coalition talks likely to extend until the end of November, Luxembourg waits with bated breath to find out the composition of the new government.

Whether Déi Gréng can continue to be credible and push through their agendas under new circumstances, and under even greater scrutiny, remains to be seen.

Duncan Roberts Editor-in-chief

Letter from the editor

The success of Déi Gréng at the parliamentary election in October was

3

corporate finance strategy & sustainability operations & performance entrepreneurial support economic modeling

business advisory arendt.com/advisory

2021

2020 REACHING THE NEXT LEVEL TOGETHER

2019

November/December 2018 Reporting on the community

FEATURES

Analysis of business, the economy and politics

8

THE SOURCE

A guide to culture and lifestyle

80

EXPECTING TO FLY

Interview

ON THE RIGHT TRACK Steph Meyers on steering the Rotondes

9 DISHING ON 5G TECHNOLOGY

84 11

On stage

MUSIC LEGENDS

OUT OF ORDER

12 CULTURAL MIX IS STRENGTH

14 GOSPEL FOR THE AGES

16

30 Cover story

WHAT IF… Luxembourg’s economy is humming along. But here are some of the shocks that could put a spanner in the works.

Community spotlight

ENTREPRENEURIAL SPIRIT South Koreans Amy Sinner-Park and Seungeun Park are adding zest to life in Luxembourg

54 COST IN SPACE Financing Luxembourg’s newspace sector

60 Get the picture

38 THE ALTERNATIVE ROUTE Noel Fessey is repositioning European Fund Administration

42 WILL CALLS FOR ELECTORAL REFORM BE HEEDED?

PLOTTING TRAJECTORY

62

88 Special feature

CHRISTMAS SHOPPING GUIDE Diary dates and where to snap up local products

96

Alternative funds

Restaurant review

CRUISING SPEED FOR REAL ESTATE FUNDS

BACCHUS

64

98 A CHEF FOR ALL SEASONS

TIDYING MANCO RULES

18 Think local

THE LAST MAN STANDING Why Australian Mark Dunstan volunteers for the Bazar International

20 Snapshots

FUNDRAISERS AND ANNIVERSARIES Highlights from Lëtz Go Gold, Femmes développement, Alfi and more events

46 Reportage

SHINE A LIGHT The latest edition of “Luxembourg Portraits”

66 WIDER ALTERNATIVES

72 52 SPEAKING UP Tessy Antony wants to empower women and help young people to take action

100

In my suitcase

KEEPING COSY AND FIT What Jeanne Lindegaard brought when she moved here from Denmark

FINANCIAL DIPLOMACY

106

76 In focus

INKLUSIVITY

Auntie Eleanor

WHAT’S IN A NAME? Our advice columnist has some “great” advice for readers

Contents

THE JOURNAL

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Write to PO Box 728 L-2017 Luxembourg Offices 10 rue des Gaulois, Luxembourg-Bonnevoie ISSN 2220-5535 Web www.maisonmoderne.com Founder and chairman Mike Koedinger CEO Richard Karacian Administrative and financial director Etienne Velasti CONTENTS Phone (+352) 20 70 70-150 Fax (+352) 29 66 19 E-mail news@delano.lu Publisher Richard Karacian Editorial director Matthieu Croissandeau Editor-in-chief Duncan Roberts (duncan.roberts@maisonmoderne.com) Desk editor Aaron Grunwald (aaron.grunwald@maisonmoderne.com) Journalists Jess Bauldry (jessica.bauldry@maisonmoderne.com) Margaret Ferns (margaret.ferns@maisonmoderne.com) Contributors Esther Bechtold, Stephen Evans, Kasia Krzyzanowski, Tonya Stoneman, Sarita Rao, Alix Rassel, Annick Weber Photography Nader Ghavami, Jan Hanrion, Lala La Photo, Patricia Pitsch, Mike Zenari, Matic Zorman Proofreading Pauline Berg, Lisa Cacciatore, Sarah Lambolez, Elena Sebastiani DESIGN Phone (+352) 20 70 70-200 Fax (+352) 27 62 12 62-84 E-mail studio@maisonmoderne.com Agency director Mathieu Mathelin Head of production Stéphanie Poras-Schwickerath Creative director Jeremy Leslie Head of art direction Vinzenz Hölzl Art director José Carsí Layout Tae Eun Kim (coordination) ADVERTISING Phone (+352) 20 70 70-300 Fax (+352) 26 29 66 20 E-mail regie@maisonmoderne.com Partner-director, advertising sales Francis Gasparotto (francis.gasparotto@maisonmoderne.com) Sales manager Luciana Restivo (luciana.restivo@maisonmoderne.com) SUBSCRIPTIONS For subscriptions, please visit www.delano.lu Luxembourg (shipping included) 1 year / 7 issues / 25 euros Europe (shipping included) 1 year / 7 issues / 31 euros Printed by Imprimerie Centrale Distribution by Valora Services Luxembourg

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DELANO LIVE Who’s been naughty and who’s been nice?

To end the year, December’s Delano Live will invite experts in the fields of politics, business and culture for a light-hearted look at the best and worst of 2018, and to look ahead to what we can expect from 2019.

11 December, 18:30 Knokke Out, Rives de Clausen ↳ club.paperjam.lu

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DIGITAL HIGHLIGHT In accordance with article 66 of the law of 08.06.2004 on the freedom of expression in the media: the company that publishes Delano is indirectly held, by a stake exceeding 25%, by Mike Koedinger, an independent editor registered in Luxembourg.

Richard Karacian is chartered with daily management.

Delano™ and Maison Moderne™ are trademarks used under licence by MM Publishing and Media S.A. © MM Publishing and Media S.A. (Luxembourg) NOTE TO OUR READERS Delano’s next print edition comes out 12 December.

For daily news updates, commentary and our weekly what’s on guide, visit www.delano.lu.

Interested in the alternative investment fund trends featured in this edition? More on the sector in the run-up to the Association of the Luxembourg Fund Industry’s PERE Conference in November: ↳ www.delano.lu/business

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PUBLISHER

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The Journal Reporting on the community

NOVEMBER/DECEMBER 2018

Jean Ries bought a ticket in 2008 for the first tourist space flight; he’s still waiting

Expecting to fly Jean Ries says he will never forget the first moment he flew a plane over 30 years ago.

“Once you’re in the air, you almost forget talking to the tower, it’s elating,” he says.

The entrepreneur’s passion for flying has pushed him to some extremes in the intervening years. He attempted to get into the US Air Force and the Royal Air Force, he regularly pilots his own plane and, more recently, was accepted into the Virgin Galactic founders club. As one of 80 people hand-picked by Richard Branson’s team, Ries stumped up $200,000 for a

place on the first passenger space flight, which was expected to launch in 2010.

It didn’t.

“I think there may have been an underestimation of the time and strict requirements by authorities for this aircraft to be ready,” Ries suggests.

A major factor was the tragic in-flight breakup of the VSS Enterprise on 31 October 2014, killing one pilot and injuring another. The experimental Virgin Galactic craft violently broke apart and crashed into the Mojave desert in California.

It was the first fatality on a spacecraft since the 2003 Columbia space shuttle disaster and something Ries doesn’t like to focus on. But it puts into perspective the groundbreaking work of firms like Virgin Galactic. Ries likens commercial space exploration to aviation in the 1930s when fatalities were commonplace. As technology improved with the advent of the pressurised cabin, flights became safer, more comfortable and cheaper.

“In 1949, the Clipper flew from the US → to the UK, it cost $49,000, one-way.

9 Sustainable development

↑ Annick Meiers The architect with Cell was speaking about the ecologically constructed Äerdschëff (Earthship) training and education centre that the NGO hopes to finish building in Redange by 2020.

We went from a $49,000 one-way ticket to today where my children fly to the US for $200.” Ries expects to see a similar evolution in space travel. “They [Virgin Galactic] are building six crafts and the goal is to go up twice a day. I believe that very rapidly prices will go down to less than $5,000 for a ride into space,” he says.

The implications of this technology go further than an adventurous jaunt beyond the clouds.

Once the technology is fully developed, it is expected to dramatically reduce travel time and emissions. Once the aircraft is brought 14,000 metres into the air by a mothership, it is released and rises into space where the pilot can switch off the engines and “theoretically you accelerate because there’s no more air resistance.

You turn around the crust of the Earth and re-enter in Australia or America or the next continent.” It means flights which previously took half a day would be reduced to around two hours.

Ries is delighted to play a part in what will be a major leap in aviation. But he is mostly looking forward to the experience and the awe-inspiring moment he looks out of the aircraft window and sees “our frail little blue planet in this ocean of darkness”.

He strongly believes it will happen, although no-one can say when. Ries was 48 when he joined the Virgin Galactic mission. Now 58, he has to be sure he is fit to fly when it’s time to board. “If I have a medical problem at some point, I back out and get my money back. That’s not what × I want to do. I want to go to space.”

words

photos

Jess Bauldry Mike Zenari

Eva Lagunas wants to speed up the mobile internet

Dishing on 5G technology Telecommunications engineering is a passion that runs in the family for University of

Luxembourg research associate Eva Lagunas. Growing up in Barcelona, Spain, she had a first-hand view of the field through her father, a university professor and telecoms engineer. “His devotion and love to his job was really inspiring; he’s a true believer in science,” explains Lagunas.

Therefore, it was natural that with her aptitude for maths and physics she decided to follow in his footsteps. After finishing her PhD in signal theory and communications at the Polytechnic University of

Catalonia, she accepted a research position that brought her to Luxembourg.

It was the reputation of the director of the Interdisciplinary Centre for Security, Reliability and Trust (SnT), part of the University of Luxembourg, that first attracted Lagunas to the grand duchy.

“Professor Björn Ottersten is doing an incredible job [as head of the] SnT and particularly with the Sigcom group, which has grown from 10 to 50 researchers since I joined in 2014,” she says. Through SnT’s partnership with Luxembourg-based SES, → the world’s largest satellite operator,

The Journal

“The idea was to show different forms of living and construction.”

Integrating network

Satellite signals can reach everywhere in the world, making them useful for bringing internet connectivity to remote communities, as well as for emergency communications. However, satellite links are also slower, which can affect the quality of a live stream or voice call.

Lagunas’ research is focused on the concept of a seamlessly integrated satellite-terrestrial backhaul network which can deliver data using both satellite and terrestrial links depending on the traffic demands, and how best to manage the resources this requires.

Lagunas is excited to play an active role in designing the future. “My dream is to see one of my fundamental techniques and methods standardised and used in real technology.” In the meantime, she is enjoying living and working in Luxembourg. “When I came here, I discovered a beautiful, multilingual and multicultural country,” Lagunas says.

“I work with a very young and international team and sometimes, I stop in a meeting just to admire how well × everyone is getting along together!”

In numbers

Facts & figures about Luxembourg

7,207

0.69

↑

↑

FIRST RESIDENCE PERMITS

HUMAN CAPITAL INDEX

Nearly half (45.5%) of Luxembourg residence

A child born today in Luxembourg will be

permits were granted for family reasons

69% as productive as an adult “if she

and nearly a quarter (24.7%) for

enjoyed complete education and full health,”

employment reasons in 2017.

says the World Bank.

21

25%

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FATAL ACCIDENTS ON THE JOB

STROKES UNDER 65

The number of work-related deaths

Around 1 in 4 stroke patients are younger

in Luxembourg has remained steady

than 65. Roughly 1 in 3 Luxembourg residents

in recent years: 21 in 2017 and

has high blood pressure, one of the main

22 in 2016 and in 2015.

risk factors, says the government.

In context

Humanitarian visit, 30 October

Grand Duchess Maria Teresa holds a child words

Kasia Krzyzanowski photos Mike Zenari

Sources → Eurostat → World Bank → Association d’Assurance Accident → Health Ministry

NOVEMBER/DECEMBER 2018

Lagunas’ research tackles the challenge of integrating satellites into 5G wireless communications, which will be rolled out in Luxembourg within several years.

As online streaming and gaming become ubiquitous, and mobile device use grows alongside the global population, the demands for data traffic are dramatically increasing. 5G will deliver much larger volumes of data at even higher speeds than today’s 4G technology. “In a few years, you may be able to download a full-length HD movie to your phone in a matter of seconds rather than minutes,” states Lagunas. “However, this poses challenges for the upcoming generation of wireless communications.” Her recent “Sansa” project, which was backed by the European Commission and ended earlier this year, looked at how satellites could help free up the existing terrestrial backhaul network (which connects service providers) through their higher data capacity.

at a centre for disabled people in Taanayel, Lebanon, run by Arcenciel, an NGO.

Photo → Cour grand-ducale/Sophie Margue

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The Journal

Expat bullying can make life unbearable

Out of order On the surface, the expat community can appear to be a carefree bubble in which life is about as good as it gets. Scratch the

surface a little and you might discover a different story. Fear of bullies became a reality for three women who shared their stories with Delano.

For “Anne” (not her real name), the bullying started almost five years ago, for “Lisa” three years ago and for “Tina”, it’s a recent phenomenon. A breakdown in a friendship left Tina wondering “is it me they are all talking about?” For Lisa,

it began with verbal abuse but after that, “the bullying happened behind my back.

The problem was I didn’t know what was being said or that lies about me were being told to other people.” Anne heard it on the grapevine, told by “friends who were too scared to stand up to this particular group”.

In all cases, there were one or two perpetrators, but as Tina puts it: “Many of my so-called friends didn’t stand up for me. No one said stop or you’re out of order and what you are saying is not fair.” She believes that their silence condoned the

bullying. Although much of it was via social media, she had a genuine fear that threats would be carried out.

When Anne tried to talk to her bully, it backfired and things got worse: “It was a shock how direct the abuse became, people who I thought were friends were openly attacking me.” Someone she had confided in teamed up with the bully, whilst another friend described the whole situation as very “Lord of the Flies”.

Tina admits she still struggles with it. → “I try to remain dignified in my

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NOVEMBER/DECEMBER 2018

silence, but there are days when it’s bad, it’s tough. I am trying to grow thicker skin,” she says. Lisa found talking to her husband helped put a perspective on the bullying. For Anne, separating herself from it and all those associated was the only solution.

All three cite boredom as the reason behind expat bullying. “You have a group of mainly women who moved away from their family and friends, who are not working or in the role they had in their homeland. It raises insecurities and people act in ways they wouldn’t at home,” says Lisa. “Also for many who don’t plan to stay long-term, Luxembourg isn’t a reality for them, so they behave with less accountability.”

Tina corroborates that Luxembourg’s expat community is indeed cliquey, with too many alphas in a small territory: “Everybody has their place and it’s not so welcoming to new people.” Anne believes there is definitely a schoolyard mentality where bullies prey on weaker members of the expat community. “We live in smaller communities here, everyone knows everyone else, so the situation feels worse.”

Do expat organisations and clubs have a part to play in the bullying? Tina has had no direct evidence of this, but says she imagines they are rife with cliques and dominated by those in charge. Lisa says groups should be neutral as they can “inadvertently exclude the victims of bullying who are already feeling socially isolated”. For Anne, it was clear that the power one bully had in a specific network affected her greatly.

Trust has become a serious issue for all three victims. “I am much more private now. If no one knows what I am doing then information can’t be used against me,” says Tina. Talking to someone you trust is a good first step, advises Lisa, who admits “I find it much harder to trust other people and I have gone from someone who loved making new friends to someone who is happy with a small trusted group of friends”.

Saying it out loud helped Anne immensely: “Since I’ve been able to share my experience, I feel more confident against situations of bullying.”

If you need to talk to someone about × bullying, contact SOS Détresse. ↳ www.454545.lu/en

words

photos

Sarita Rao Mike Zenari

Bardad Sambou brings a unique viewpoint to finance

Cultural mix is strength in Kirchberg Bardad Sambou, head of client service operations at the custodian bank State Street Luxembourg, believes the life of a nomad has helped him shape his approach to financial services. Born in Belgium,

he has worked as a UN intern, been an olive farmer and set up a mineral water export business in Norway with his brother. “I was exposed to different cultures from the very beginning of my life. My parents moved from Morocco to Belgium in the 1960s, where I was born and raised. I was living one culture at home and another outside.

It was not always easy but the more I grew, the more I realised that this is one of my strengths,” says Sambou.

Sambou spent several months in New York City at his first job working for the

UN: “With over 190 countries represented and six official languages, you realise how diverse the world is.” He came to Luxembourg in 1999 and says he has witnessed two decades of constant change. Not only has the country changed, but, he notes, the financial industry has continued to experience phenomenal growth.

Sambou believes his business experiences, particularly the mineral water business that he still runs with his brother, have been extremely valuable.

“It’s a little village with 2,000 inhabitants and 2,000 lakes, so selling water was an obvious thing to try. We have a good export strategy, a good understanding of → different business cultures and a

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NOVEMBER/DECEMBER 2018

good network which is a must for any export business.”

Olive farming is also important to him: “It allows me to step back and think. The financial industry is changing so much and so quickly that you can easily be swallowed into the rhythm. It’s vital to step back, think, and come back stronger.”

Ownership is a value he wants all State Street managers to embrace. “Running your own business is like taking ownership without a safety net. You are in charge, which means that your behaviour and decisions impact the fate of the business,” he says. “In a larger company such as State Street, you are not alone. While you might feel a bit more supported, the ownership behaviour of each individual remains very important.”

Constant change

An MBA graduate, Sambou says that working in financial services, he has “never been bored a single day. Change, speed, intellectual challenge and competition make this industry very exciting.”

In the next ten years, he expects end investors will be more demanding in terms of social responsibility, environmental consciousness, competitive prices and real-time access to information. “The industry will need to invest more in technology, become more efficient and create products that invest in social and environmental projects.”

State Street Luxembourg is part of the wider group which is responsible for some 10% of the world’s assets. Perhaps a bit like the UN, which Sambou says he would like to have continued working for, the financial company covers a number of geographies and languages. That’s possibly why the Luxembourg operation has 43-year-old Sambou, fluent in French, English, Spanish, Dutch and Berber, heading its client service operations.

It’s a choice he does not regret: “I have been energised working in Luxembourg × and I still am.”

words

photos

Sarita Rao Mike Zenari

Senior citizens have been given a new lease of life by singing with youngsters

Gospel for the ages The “Rhummer Gospel” senior citizens’ choir was back in concert at the Rockhal

Club on 7 November, sharing the stage with 60 youngsters from the Waldorf school. Four years previously, senior citizens from the Op der Rhum retirement home in Luxembourg City had been encouraged by Servior employee Robert Bodja to form the first senior gospel choir in the country. With the administrative and financial support of Servior, a group that manages senior citizen homes, and the EME--Écouter pour Mieux s’Entendre (“Listen, so as to understand each other better”) foundation, the choir has grown considerably.

They showcased their talent in front of an audience of 1,200 at the Philharmonie in November 2017. Although they take their singing seriously, the members of the choir also have a playful nature. In that

spirit, according to the choir’s official website, its members are hoping to record a CD, undertake an international tour with a proper tour bus and autograph signings.

For the November concert, under the musical leadership of Bodja, 30 of the senior choristers teamed up with 60 pupils from the Waldorf school in Limpertsberg aged 8 to 18 for their second major concert. Both the seniors and the youngsters were enthusiastic. “I enjoy singing with the elderly. One can really see that they are having fun, that’s lovely. I’m particularly looking forward to my duet,” said one ten-year-old of her experience.

The duets, in which senior and junior singers are paired up, were also well received among the older students, as one 17-year-old explains: “The younger ones dance while they sing; it’s a joy to watch

words

photos

Esther Bechtold Nader Ghavami

Fact file

15

Useful and random information about Luxembourg

‘De Wilhelmus’, the royal family’s anthem, dates back to a tune published in 1581.

It started being used to herald the arrival of royals in 1890.

Source: Information and Press Service

There were 208 Luxembourg-flagged merchant ships, representing a total of 1,407,240 gross tonnes, as of September 2018.

Source: Luxembourg Maritime Administration

In Luxembourg, 78% of women cook and/or do housework each day, compared to only 39% of men.

Source: Eurostat

The Journal

them, especially when they sing together with the elderly.” 90-year-old MarieLouise welcomed the playful spontaneity which the children bring to the performance. “I might be 90, but I’m still as mischievous as I was when I was ten years old,” she conceded with a hearty laugh.

For many of the retirees, the gospel has become an essential part of life. Henriette, who is 82, explained that the weekly practice has spiced up life in the retirement home. “I might be in pain or in a bad mood, but after rehearsal, I always feel better. I experience a joy that comes from deep within. I couldn’t live without it anymore.” Jeanne, who at 98 is the oldest member of the choir, concurred: “It is a highlight in my life to sing with the choir and the children add a new dimension to the music.” The shared delight in singing seems to bridge the age difference of up to 90 years between the youngest and the oldest members of the choir.

During rehearsals, Robert sings, conducts and choreographs his singers, and plays the drums. The choir members agreed that Robert’s vivacious personality is the driving force behind the project.

“He can be silly, and he makes us laugh,” said Henriette. “But he is very professional before a big performance.” Marie-Louise, who praised his musicality and talent for teaching, said Robert “embodies the music”.

Not every elderly member of the choir understands English, so Robert offers weekly English classes in which he explains the meaning of the lyrics of the gospel songs. For Adrienne, a septuagenarian, navigating a new language is a big achievement. “The joy of singing has helped me in my life and I’m so proud of myself for managing to sing in English!”

The older Waldorf school students have no problem understanding the lyrics but explained that they “are in it for the music rather than the religious meaning of the songs. We enjoy the rhythm, particularly × of the African songs.”

Community spotlight

16

Meet the people who add zest to life in Luxembourg

The South Koreans

Entrepreneurial spirit NOVEMBER/DECEMBER 2018

W

hilst the number of South Koreans who call Luxembourg home is still relatively small, the creative and entrepreneurial spirit associated with South Korea is abundantly prevalent.

Delano spoke with two South Koreans who have learnt to called Luxembourg gajeong (home in Korean).

Amy Sinner-Park was born in New York City, but she comes from a proud heritage of Koreans and regularly takes trips back to Seoul to visit friends and family. “Even though I grew up in the USA, my parents always installed Korean values in our family. I never understood until later in my life why my parents always ate Korean food, despite the abundance of international cuisine in NYC,” she laughs.

“Now, I have the same love of Korean food as they do and need to get my fix,

be it cooking at home or on my travels.”

Amy moved to Luxembourg permanently in 2014 after meeting her Luxembourger husband in Berlin. “We tried living in NYC for a while, but after two years, New York really wasn’t for my husband, and so he convinced me to move here,” she explains.

“At first, it was really tough. I had been a corporate immigration lawyer working all hours of the day and night and suddenly I found myself in sleepy Luxembourg, with few transferrable skills and the need to do ‘something’ meaningful.” Amy had always wanted to be a social entrepreneur and over the years had developed a love of shopping for philanthropic items.

“Shopping just lost interest for me and then I found this whole market where you could purchase items that actually → gave something back to the world.”

↑

AMY SINNER-PARK The former corporate immigration lawyer from New York grew up with Korean values. She now owns and runs the Modu concept shop.

Modu

The Modu Shop

←

SEUNGEUN PARK

Luxko ↳ www.luxko.net

In December 2017, she opened The Modu Shop on côte d’Eich in Luxembourg City.

“Modu means ‘all’ in Korean. I wanted to offer people a different shopping experience, where they can purchase something that ‘gives back’ in some way to society.” Amongst the items Amy sells are socks made by Conscious Step and Article 22 jewellery made by artisans in Laos from undetonated bombs.

Like Amy, Seungeun Park, or Semi to her friends, moved to Luxembourg with her partner. That was in 2007 and she began working in fintech, a popular sector for many South Koreans. Born in Seoul, Semi completed an MBA in Hamburg before moving to Luxembourg.

Unfortunately, due to the financial crisis of 2008, Semi lost her job and found herself in a similar situation to Amy. “I became very depressed and did not know where I belonged or what to do

in Luxembourg,” she explains. “I realised that I was missing that sense of community or belonging that so many expats experience. So, I began my French and Luxembourgish classes with zest, keen to make new friends and build a new life for myself.” The Luxembourg government’s increasing interest in the fintech industry allowed Semi to open her own company Luxko in 2018. It supports Korean businesses coming to Luxembourg or Luxembourg companies wishing to break into the Korean market. South Korea is renowned as one of the world’s most innovative countries and Semi supports this not only from a business perspective but by volunteering at the Korean School of Luxembourg, which meets on Saturday mornings in the premises of the International School of Luxembourg. “At the moment, we only have around 40 members, but we hope

WHERE TO MEET THE SOUTH KOREANS CONSULATE OF SOUTH KOREA IN LUXEMBOURG warulaw@pt.lu

EMBASSY IN BELGIUM Terhulpensesteenweg 173/175, 1170 Watermaal-Bosvoorde, Belgium

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The Journal

Moved to Luxembourg after completing an MBA in Hamburg.

She now has her own company, Luxko, that supports trade between the grand duchy and her native country.

to gain more interest from prospective teachers, students or sponsors, who see the potential in the South Korean market.”

Like Semi, Amy also had the need to build a social network in Luxembourg.

She started the Facebook group, Asian Women’s Network of Luxembourg, hoping to meet a few like-minded individuals; now, they have over 300 members. “It’s nothing official,” Amy explains. “Just a bunch of us meet up once a month, usually for a food-related activity.”

You don’t need to be an Asian woman to join, an interest in Asia is enough.

“One evening, a French lady joined us for a meal at a restaurant asking if she was at the right place for the Asian Women’s Network. You should have seen the look on the waiter’s face when she ordered her menu in perfect Cantonese.”

Both Amy and Semi believe that Luxembourg has an environment ripe for entrepreneurial spirit. “Yes, it’s small,” states Amy, “and there are disadvantages to that. However, the opportunity to create something unique, creative and progressive is definitely here. You just need to find your passion and market.” ×

Alix Rassel Mike Zenari

SHOWCASE LES AMIS DE LA CORÉE AU LUXEMBOURG ↳ www.friendsofkorea.lu

ASIAN WOMEN’S NETWORK OF LUXEMBOURG Asian Women’s Network of Luxembourg

KOREAN SCHOOL OF LUXEMBOURG Korean School of Luxembourg luxecoledecoreen@gmail.com

KOREAN STAND BAZAR INTERNATIONAL Contact Orie Duplay 621 326 339 orie@duplay.com ↳ www.bazar-international.lu

KOREAN CHURCH 71 route de Kayl, Dudelange ↳ www.euroluxchurch.org

KOREAN CUISINE Find Korean restaurants in Luxembourg on the Explorator website ↳ www.explorator.lu

Contemporary K-pop has started to become popular in the west, with artists like boy band sensation BTS selling out shows and charting in the US and Europe

Photo → Kathy Hutchins/Shutterstock

+32 26 75 57 77

Think Local

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Expats who have truly integrated into local life

Mark Dunstan/Australian

The last man standing NOVEMBER/DECEMBER 2018

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ike so many other expats living in Luxembourg, Mark Dunstan came to this small country many years ago intending to stay only a short while.

In 1987, he was a young lawyer in Australia who wanted to experience a bit of travel and fun before digging into the corporate grind. A traineeship in the grand duchy turned into a job, a marriage, a family and, over 31 years, a home away from home.

Today, Mark experiences Australia as a series of snapshots--three visits home a year--and this allows him to see contrasts there with a sharper focus. “I see the economic and political changes more clearly.” Asked why he chose to stay, Mark points to the multicultural environment here that has made working and raising children a uniquely rich experience. “I think Luxembourg makes more of an effort to come to me than I make to come to it,” he says. “Everyone speaks multiple languages.

And there’s a lack of aggressive nationalism.

People who come across the border are not prejudged. Luxembourgers are very welcoming to outsiders.”

One of the challenges of living in such an agile and dynamic culture is that people come and go frequently. You know someone, their contract runs out, and they head off to New York or Zurich or Oslo.

For Mark, manning the Australia booth at the Bazar International has provided comforting consistency. He volunteered in the late 1980s selling T-shirts, boomerangs and stuffed koalas and later expanded to craft wines. This will be his 25th year working the event. He’s made many friends and seen many move away. “The bazaar stays the same,” he says. “I’m the last man standing.”

Mark’s advice to newcomers is to mix as much as possible: join clubs, play tennis, learn salsa. “In a big town, contacts find their way to you, not so in here. Luxembourg is small and so you have to make an effort to break into the social culture.

It pays off in spades though. I used to hang around sports bars looking for friends,” he says wryly. “It took more than × 10 years to get rid of some of them.” words photo

Tonya Stoneman Matic Zorman

↑

“You have to make an effort to break into the social culture.”

BAZAR INTERNATIONAL The 58th edition of this popular expat tradition takes place on 8-9 December at Luxexpo. More than 60 stands and 1,500 volunteers from all over the world will offer arts, crafts, food and more. The Australia stand will sell wine from craft wineries, among other things. ↳ www.bazar-international.lu

EST CONT ory on :

t your s Tell us y.enovos.lu r mysto

We give you the energy You write the story

Luxembourg energy provider

enovos.lu

Snapshots

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Highlights from international community and networking events

Going for gold

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600 runners met at the ponds in Kockelscheuer to raise money and awareness for the Fondatioun NOVEMBER/DECEMBER 2018

Kriibskrank Kanner (helping children with cancer foundation), 29 September. It was the first time the 28-year-old NGO held its “Lëtz Go Gold” charity run. ↳ www.letzgogold.lu

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Alix Rassel Lala La Photo 1 Joëlle Elvinger and Claude Lamberty 2 Lydie Lenz and Veerle Dierick, two of the Lëtz Go Gold charity run organisers 3 The Jonette family: Laurent, Véronique, Myrtille and Thibault 4 A runner nears the finishing line 5 Gold balloons were released during the fundraiser 6 Carole, Nero and Dany

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Find more events Check Delano’s digital agenda for the latest happenings: ↳ www.delano.lu/agenda

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Int’l school from scratch The first 75 students at Mondorf-les-Bains International School (EIMLB) looked thoroughly excited as they toured the new school building with their parents at the “Come Together” event,

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15 September. ↳ www.eimlb.lu

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Sowing seeds

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Kindness, its impact on the world and the benefits for those who show it, was the theme of the “Sowing Selfless Seeds” event at St. George’s International School, 26 September (also see article on page 52). ↳ www.st-georges.lu

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Duncan Roberts Mike Zenari 1 Children’s author Natalie Savvides 2 Former rapper Nimo is spreading his message via song and story 3 The event was the brainchild of Wendi Roberts 4 A rousing sing-along

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Jess Bauldry Lala La Photo

The Journal

and 2 Parents and students Exploring the new classrooms 4 School director Camille Weyrich (left), outgoing DP education minister Claude Meisch and students get ready to cut the inaugural ribbon 1

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Riders for men’s health

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The second edition of the “Luxembourg Distinguished Gentleman’s Ride” saw some 95 riders dressed in tweed and sharp suits, on classic or retro bikes, hit the road en masse, 30 September. The ride ended at Paname in the Gare district. ↳ www.gentlemansride.com 1

NOVEMBER/DECEMBER 2018 1 Riders on the road 2 Lorenzo Ferrara, co-organiser 3 Mark Kitchell, co-organiser

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Africaninspired

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More than 300 guests, who were asked to wear African-inspired dress, attended Luxembourg charity Femmes Développement’s

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13th annual charity gala dinner and ball, held at the Casino 2000’s Chapito, 18 October. ↳ www.femmesdeveloppement.org words

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Jess Bauldry Nader Ghavami

Cross-border hike Citizen rights group British Immigrants Living in Luxembourg (Brill) organised an eight-kilometre walk to “reclaim our right as EU citizens to freedom of movement”,

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30 September.

British Immigrants Living in Luxembourg (Brill Group) 1

1 Performers from Li Marteling’s school of dance 2 Stefan Glober and Lisa McLean 3 Gauthier Destenay, Léa Linster and Abbé Pierre 4 Georges and Zinda Krieger 5 Gabriel Boisante, Luisella Moreschi and Gauthier Destenay

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1 The hike went through Contzles-Bains, France 2 and started in Schengen

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Jess Bauldry Matic Zorman

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Duncan Roberts Claude Piscitelli

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Luxembourg’s “Oscars”

“Ága” wins 2 awards

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The 11th Cineast film festival culminated with an awards ceremony held at the Cinémathèque, 19 October.

The biannual Lëtzebuerger

“Ága” (Bulgaria-Germany-France, 2018), directed by

Filmpräis was held at the

Milko Lazarov, received the Critics’ Prize and the

Grand Théâtre, 22 September.

international jury’s Special Mention.

Successive award winners

↳ www.cineast.lu

pleaded for the next government NOVEMBER/DECEMBER 2018

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to increase funding for Luxembourg’s film sector as it faces a future of being a victim of its own success, with more and more productions seeking a slice of the cake. ↳ www.filmfund.lu

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Duncan Roberts Matic Zorman 1 Gabriel Boisante, Caroline Mart and Donato Rotunno 2 Nora Twomey, director of “The Breadwinner”, the best animated co-production 3 Vicky Krieps won the Best Actor award for her performance in “Gutland” 4 Isabel Wiseler-Lima and Claude Wiseler 5 Claude Waringo, Guy Daleiden, Grand Duchess Maria Teresa, Grand Duke Henri, Xavier Bettel, Lydie Polfer and Tom Leick

1 From left: Radek Lipka, co-organiser; members of the international jury: Govinda Van Maele, Arta Dobroshi, Astrid Roos and Bence Fliegauf; and Hynek Dedecius, the festival’s artistic director 2 Valerie and Eszter, attending the event 3 Meri and Ana

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Alix Rassel Matic Zorman

Kawagoe food & culture Japanese ambassador Shigeji Suzuki hosted a Kawagoe Style Club showcase of culture and gastronomy from the 5

land of the rising sun, 19 September. ↳ www.lu.emb-japan.go.jp 1

1 Makiko Witolla Hayashi (left), the ambassador (centre) and Léa Linster (2nd right) enjoy saké tasting 2 Yoshiharu Hibiki

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Honoured at Mudec 50th

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Like his father and grandfather before him, Crown Prince Guillaume was conferred with an honorary doctorate from Miami University. It was presented during a ceremony NOVEMBER/DECEMBER 2018

marking the 50th anniversary of the university’s European centre in

1 Robin Winchell, John Cook, Jennifer Cook, Stephanie Shaheen, Molly Bain and Adam Bain 2 Graduates of the class of 1968 3 Marisa Polgar Carrozzo, Tracey Prudhoe Polgar and Les Polgar 4 Gregory P. Crawford, Crown Prince Guillaume, Renate Crawford, Lydie Polfer and Thierry Leterre

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Luxembourg, 10 October. ↳ www.miamioh.edu/luxembourg

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Delano Live: regtech There are quite a few regtech startups and established outfits here in Luxembourg, but what exactly do they do? And are they really an important part

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of Luxembourg’s economy?

To find out, Delano asked three local regtech executives at Delano Live, 11 September. ↳ www.delano.lu

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photos 1 Cédric Iggiotti of iDetect (seated, left), Jörg Reinking of Secourriel and Pascal Morosini of i-Hub (speaking) 2 Acia Baghdadi and Philippe Lassine 3 Henry Munster and Antonio Brunacci 4 Jan Hiddema and Vicki Hansen

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Aaron Grunwald Maison Moderne

ALFI PERE CONFERENCE

20-21 November 2018 European Convention Centre Luxembourg

The annual event where leading Private Equity and Real Estate fund professionals, finance, compliance and operations experts get together to discuss an ever-changing business environment, the impact of regulatory developments, operational considerations and industry best practices.

Highlights of the agenda • • • • • •

Structuring expertise: how to accomodate demands from international investors Governing and substance, what’s at stake?

Sustainable PE The future of buildings Operational efficiency: managing scale, managing change PE and RE market overview

More information about the conference: events.alfi.lu/pere18

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Turning 30

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Initially designed to help European households save, three decades later, Ucits is now also a favourite fund vehicle for global institutions.

The mutual fund was feted during the Association of the Luxembourg Fund Industry’s Global Distribution NOVEMBER/DECEMBER 2018

Conference, held at the European Convention Center in Kirchberg,

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25-26 September 2018. ↳ www.alfi.lu

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Stephen Evans Marion Dessard 5

1 David Wright of Eurofi, a financial services thinktank 2 The US ambassador to Luxembourg, Randy Evans, and the UK ambassador to Luxembourg, John Marshall 3 Isabelle Nicks and Sylvie Baijot 4 Max Martias and Julien Bouchez 5 The conference marked Alfi’s 30th anniversary 6 Jürg Alder, Christoph Rohr, Philippe Burgener and Christoph Steiner

Who will win the Paperjam Top 100?

Find out first during the exclusive event on the 19th of December at the Rockhal.

Paperjam Top 100, the ranking of Luxembourg’s most influential economic decision-makers.

Reserve your place on top100.paperjam.lu GOLD SPONSORS

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NOVEMBER/DECEMBER 2018

Radio-Canada

Guillaume Bolduc

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Life in Luxembourg is pretty good.

Unfortunately, there are many ways that it could all go wrong. We could either mess it up ourselves, or be relatively powerless in the face of major external events.

So how can we become more resilient?

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Stephen Evans

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Mike Zenari

Cover story

The shocks that could put a spanner in the works

Source → Statec, Delano calculation

NOVEMBER/DECEMBER 2018

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be vulnerable to structural changes.

GDP growth rate, selected EU countries “The biggest risk we face is the inEuro area France ternational situation,” noted Jang Belgium Luxembourg Germany Netherlands Schiltz, associate professor and di5 rector of the Luxembourg School of Finance. “What the US, Russia or China do is the main concern 4 for the global economy, and we’d just go down with the rest if things 3 went wrong.” → risk factors “Another economic downturn is just a matter of time.

2 It will be harder to fight than the last uxembourg’s prosperity is at risk by definition. “Risk one,” said an article in The Economist is uncertainty,” said Luc Neuberg, president of the on 13 October. What would happen 1 ­Luxembourg Association for Risk Management (Alrim). if a large country were the cause of “If you know the outcome, there is no risk. However, the next euro­zone crisis? Are we 0 this is rarely the case, and the problem comes when sure that Europe’s banks have been 2014 2015 2016 2017 2018* 2019* you have uncertainty about how to achieve your objec- made safe after the last financial critives,” he explained. sis? What if a major trade war breaks out? Only extreme ↑ Successive Luxembourg governments’ policy goal policy measures prevented the 2007/8 crash turning Luxembourg’s economy has grown has been clear for decades: encouraging strong eco- into an economic depression, and there are question about twice nomic growth in order to fund a generous welfare marks whether central bankers and politicians will be as as fast as the eurozone economy state. This objective is at risk from economic perfor- successful at preventing disaster next time. in recent years. mance failing to generate sufficient resources to fund → potential solutions Having a diverse economy serving This has been this policy, or if current policies become too expensive. global markets builds resilience. If one industry or achieved by taking advantage of global Here, we take a look at some of the potential risk fac- market suffers, others can compensate. Encouraging opportunities, tors that could make it harder or impossible to these such an economic model has been government policy and being next to achieve goals over the short and long term. Some of for decades. This has featured state funding for bright fast-growing Germany also helps. these concerns are highly likely, others would be unlucky ideas, investment into high-end research, encourageout-of-the-blue events. Only by understanding these ment for bright people to move here, and promotion risks and building resilience can we reduce the chance of the Luxembourg brand around the globe. As well, the state could build up a crisis fund during the good of things going wrong. times to help cushion the blow during a downturn.

Occasionally domestic planning rules get 1/3 current growth rate Population growth scenarios, in the way of new investment projects, and 2/3 current growth rate in millions Current growth rate Luxembourg’s population has these rules could be reformed. On a Euro1.6 grown by about 2% per year pean level, more needs to be done to make this decade. If this were to 1.4 the euro more resilient. Globally, the trade continue, the population would double by the 2050s. Even at environment needs to be as free and open 1.2 one-third this rate, homes for as possible. an extra 200,000 people would 1.0 → it’ll all work out in the end, won’t it? Hopebe required by this time.

Here are population growth fully. The measures taken after the global 0.8 scenarios based on a continuation financial crisis were unique, so economists of the current rate of growth 0.6 have little data to suggest how this might (about 2% per annum), twothirds this rate (1.3%) and 0.4 turn out long term. That said, it is probable one-third this rate (0.7%).

2018 2028 2038 2048 2058 that the next downturn won’t be as severe as 2007/8. Luxembourg’s economy is diverse with Economy: preparing for next downturn none of the main sectors apparently under short-term existential threat. The country has a knowledge econo→ current situation The economy has been growing at my powered by hundreds of thousands of fairly brainy least more than twice the rate of the rest of the EU people, and clever people are best equipped to eventusince the 1980s. Not only does this mean there are lots ally find ways out of a problem. The Luxembourg state of well-paid jobs to go to, but the tax revenues this gen- has begun creating a sovereign wealth fund, but so far erates gives us the high state spending we enjoy. The it is small. But over the short term, the state has the risk is that this will not continue into the future. ­capacity to borrow to ease the pain of a sharp down- ↑ → how it could go wrong This country is so successful Pierre Gramegna turn. Long term is a different matter of course. economically because it reacts quickly to opportuOn the international stage, a lack of appetite for outgoing minister of finance nities presented by the global economy. Yet because ­eurozone reform in Germany means we will probably go of this, if there is a sustained downturn in Europe, into the next recession relying on the ad hoc measures Luxembourg will be hit hard with few domestic that were used over the last decade. The global trade policy options to ameliorate the situation. Alterna- system appears secure for the moment. The Trump adtively, just as the country’s once-mighty steel indus- ministration’s first steps towards trade war have been try was brought low by changes in global markets, relatively moderate, and are producing counterproducso the current pillars of the modern economy could tive results domestically. Will he press ahead?

“ No reason to panic.”

Source → Eurostat, * forecast

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Public finances: paying for an ageing society One of the delights of living and working in Luxembourg is the high levels of public spending. The health system is well resourced and relatively cheap to use, the roads are in near perfect condition and public transport is well funded, the Estimates of public debt on current trends, % GDP ­social safety net is generous with unemployment benefits akin to one’s working salary, the cultural offering is world class thanks to high levels of state funding, and more.

220% ­Perhaps the biggest challenge is that the average age of retirement is 57, says Luxembourg's 200% statistics bureau, Statec.

180% → how it could go wrong It’s good news that life expectancy is increasing (by about six 160% weeks every year), but this requires more state spending on health, pensions, and 140% old-age care. If current policies and trends ­remain as now, the state would need to 120% ­borrow massively over the long term.

100% Currently, state debt is valued at about one-fifth of the country’s annual economic 80% output (GDP). But on current trends (says the state-run National Council for Public 60% ­Finances) when people now aged in their mid-30s come to retire, national debt would 40% 27% / 27% need to triple. By the time these people reach late old age, the country would need to be 20% borrowing around 150% of national output 0% on current trends.

2020 2025 2030 2035 2040 → risk factors Politicians might be aware of the problem, but they have to persuade voters that ↑ action is needed. For example, during the recent elec- Our population is ageing as life expectancy tion, Pierre Gramegna, the DP finance minister, al- increases. On average, luded to an awareness of the pension problem, but also people are living five seven weeks more each nervousness about addressing the issue. “Luxembourg to year, year-on-year. This is one of the few OECD countries to have not ­taken is costly in terms of much action regarding pensions, other than some funding state pensions, the health system and old­adjustments. We have put a working group in place to age care. The National think about this. However, there is no urgency to act and Council of Public Finances calculated how much the no reason to panic,” he said. state would need to borrow → potential solutions The state needs more money to to fund current policies fund current policies long term. This would require under two population the economy to do even better than it is now, or that growth scenarios. the state spends less. → it’ll all work out in the end, won’t it? Probably, but it might not be a fair solution. “The pension reserves are so high that for the next 20 years, there is not a problem and we have the time to 90 Percentage of residents adjust,” noted Schiltz. One of the in employment 80 advantages of being a small country If more than 80% of residents aged 30-54 is it is hard to ignore big challeng70 were in work in 2016, es for long. Politicians may want this figure was around 60 40% for the 55-64 age to keep borrowing, but would the group. These figures financial market become nervous 50 are increasing and this about lending to a small country has helped to make the social welfare system 40 with a potentially fragile economy? more sustainable.

If the money runs out, the state 30 will have no choice but to change 20 course. “Cutting pensions wouldn’t be popular, but it’s possible to make 10 an adjustment.” This might not be 20-29 30-54 0 fair on future generations, but these 1983 1990 55-64 people don’t have the vote.

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→ current situation

Cover story

Public debt – higher population growth Public debt – lower population growth 210%

2050

2000

2055

2016

2060

Source → Statec

2045

Source → National Council of Public Finances

160%

Nationality and residence of Luxembourg workforce

NOVEMBER/DECEMBER 2018

→ current situation Increasing numbers of people of all skill levels are needed for the economy to thrive. Until Germany residents now, immigration and cross-border commuting has Luxembourg nationals done much of the heavy lifting, but increasing hous11% ing costs and creaking transport infrastructure are 27% putting this under strain. Finding sufficient quality 24% France residents staff is an increasing problem for businesses, as it is across the world.

24% 11% → how it could go wrong The resident population has Luxembourg residents 4% grown particularly strongly this decade, with about from the rest of EU Belgium residents 100,000 arriving since the population reached half a Non-EU residents in Luxembourg million in 2010. However, if the current growth trend continues, there would be a million of us here by the 2040s. With supply of housing failing to keep up with ↑ demand, purchase prices have increased by about Only 27% of the country’s workforce are Luxembourg 50% this decade. Already housing costs are dissuad- nationals, about the ing people at all salary levels from moving, and this same share as residents from other countries and could get worse. commuters from France. The Next year, the number of people crossing the borders proportion of non-residents each day from France, Belgium and Germany to work has risen by around three percentage points over the is set to top 200,000. “Frontaliers” account for around last ten years.

45% of the workforce, meaning the country could not operate without them. Their numbers have doubled this century, but transport infrastructure has struggled to keep pace. If these journeys become too arduous, ­increasing numbers might seek other options. → risk factors Because immigrants and non-residents don’t have the vote, their interests Average apartment prices, € Housing prices could be easy for politicians to igAcquisition prices for dwellings, quarterly % change nore. Around 80% of voters own 5% €500,000 their homes, so many are happy to €471,579.28 see prices rise as the supply of new builds is restricted. Luxembourg’s 4% €400,000 €348,992.79 planning laws give plenty of opportunity for nimbys (local oppo3% €300,000 nents who say to development: “Not in my back yard”) to delay or block new developments.

2% €200,000 As for cross-border transport links, the Belgian, French and German governments have limited 1% €100,000 incentive to provide adequate infrastructure to facilitate growth in 0% €0 Luxembourg. Roads are becoming increasingly busy and jammed at peak times. It is probable that the -1% motorway from Thionville will become a toll road in the coming -2% years, potentially adding to com2013 2014 2015 2016 2017 2018 muting costs and delays. Train links are struggling to keep pace. Worse, the line to and from ↑ The cost of buying a home Belgium ­requires passengers to change at Arlon. in Luxembourg has risen Cross-border working has been facilitated by the an average of 1.3% each quarter, or 5% annually, Schengen agreement, which abolished border checks since 2010. Flat buyers across the EU. However, the migration crisis has seen should be prepared to these reimposed in some countries, and this could spread. spend more than €5,800 per square metre. → potential solutions Extensive housing developments served by train and tram are coming on stream on the Kirchberg and Cloche d’Or. These should serve to slow the rate of increase of housing costs for a while.

It may be necessary for future projects to be bigger in scale if future demand is to be met. Luxembourg has worked with its neighbours to plan and fund

Source → Statec, through 30 June 2018

Workforce: keeping them coming

Source → Statec, second quarter 2018, figures rounded

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“ The biggest risk we face is the international situation.”

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Cover story

cross-border transport schemes and more might be required. → it’ll all work out in the end, won’t it? Probably. Polls before the recent election pointed to housing costs and transport being the two biggest issues concerning voters. Businesses are increasingly expressing their concern about these challenges and recent governments appear alive to the concerns. Nevertheless, they will have to cope with ­restrictive planning laws. For example, it took 15 years to complete the planning process on the new Cloche d’Or development. Also, care must be taken not to over supply, as this could cause prices to fall, leaving some homeowners underwater. Expats and cross-border commuters will continue to come if the economy continues to create many new, well-paid jobs.

The suspension of border-free rules should not persist after concerns about migration across the Mediterranean are addressed by the EU.

← J ang Schiltz director Luxembourg School of Finance

Mean nominal hourly labour cost per employee, selected EU countries, 2016

Financial and insurance activities Total, all sectors

Employment: globalisation & robot workers BELGIUM

The economy has created around 100,000 jobs in the last ten years as the workforce has expanded by nearly one-third. This is largely because average take-home salaries are several hundred euros more than in other countries in the region. → how it could go wrong The economy is quite diverse, but there is only so much a small country can do to spread the risk. Luxembourg relies on an open ­European and global trading system, and if this were to change, even for one sector, it would have serious consequences.

As well as changes to the global ­macro-economic climate, this could result from a change in global or European trading rules, or new technologies could undermine current business models. → risk factors Different sectors face different challenges.

Here are some examples.

Just in direct terms, Luxembourg’s cross-border fund administration and distribution industry creates thousands of jobs and accounts for at least 5% of the state’s annual tax income, according to the Association of the Luxembourg Fund Industry. Add the indirect contribution, and the importance of this sector is clear. This achievement has been facilitated by EU rules that encourage a cross-border model, but every few years, questions are raised about whether this should be r­ ethought.

The country’s manufacturing sector accounts for over 5% of GDP, says Statec, and these industries are part of global supply chains. Disruption to world trade rules and a decline in globalisation would have an ­impact.

International businesses use the grand duchy as a central base from which to structure their cross-border activities. That these arrangements are used to keep tax bills to a legal minimum is controversial, and ­governments around the world are keen to see these loopholes closed.

Technology based on artificial intelligence could sweep away many jobs that require human intervention. → potential solutions There is little the country can do if the big powers decide to reverse the expansion of global trade. → it’ll all work out in the end, won’t it? Probably.

Despite grumbles by pressure groups, media and some ­governments about globalisation and business hubs → current situation

NETHERLANDS

LUXEMBOURG

FRANCE

DENMARK

SWEDEN

IRELAND

UK $0

$20

$40

$60

$80

$100

↑ Labour cost is the total amount incurred by the employer for a worker, including salary, benefits, bonuses, social insurance contributions and training. These figures are presented in US dollars using 2011 purchasing power parity rates. In the financial sector, Belgian and Dutch staff are costlier to employ than those in the grand duchy.

But Luxembourg employees are still more expensive than those in France, Germany, Ireland and the UK. Across all sectors, it’s cheaper to hire in Luxembourg than in Belgium, France, Denmark, Germany and the Netherlands. Sweden, Ireland and the UK are more competitive from the bosses’ perspective.

Source → International Labour Organization

GERMANY

Vix index of global equity market volatility

The Vix index seeks to measure uncertainty in global financial markets. It reached its peak in 2008, during the global financial crisis. It remains to be seen if the current uptick in nervousness will continue.

90 80 70 60 50 40 30 20 10 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source → Chicago Board Options Exchange, figures through 24 October 2018

NOVEMBER/DECEMBER 2018

like Luxembourg, there is substantial evidence that these arrangements are making the world a richer place.

Suggestions for change seem to emerge regularly, but ultimately global decision makers see the potential for substantial negative unintended consequences. For example, recent attempts at EU level to tax multinational technology companies are foundering. There ­remains a chance that states will act against their own self-­ interest, but it would be unlikely to ­arrange a global or European consensus on this basis. That said, there are concerns that an EU without the UK will be less sensitive to the needs of Luxembourg’s financial sector when regulations are being created.

Technology has destroyed jobs in the past, but it has also created new ones and led to different ways of working. Indeed, the country needs to embrace technology if the goods and services produced here are to remain competitive.

Extreme events: disaster out of the blue The imagination can conjure up dozens of freak events which could have major impacts on the economy and society. Here is a non-exhaustive list: × Break-up of the EU. Without easy access to markets and staff, the current economic model is unsustainable. × War/terrorism. We can tend to take peace for granted in western Europe, but what if there were a major upsurge in Europe-based terrorism, political collapse in a major oil supplying country or international cyber warfare? × Environmental disaster. Could climate change disrupt our ability to produce food around the world?

How would we react to sustained drought? The year 1816 is known as the Year Without a Summer after debris from the eruption of a volcano in the Far East prevented sufficient light penetrating for crops to grow. × Transport disruption. Much of Luxembourg business relies on international business travel, but what if a global pandemic restricts air travel. When the Icelandic Eyjafjallajökull volcano erupted in 2010, it disrupted air travel over Europe and the Atlantic for six days. What if something similar lasted for weeks or months? → it’ll all work out in the end, won’t it? If the worst ­happens, we’ll be in the same situation as everyone else.

“ If you know the outcome, there is no risk.”

→ risk factors

Calculated risks required We can’t avoid risk, so we have to find ways to manage it.

Indeed, taking calculated risks is essential if rewards are to accrue. Also rather than talking about “resisting” risk, people, organisations and states need to find ways to be “resilient”. For example, in areas of high wind or seismic activity, buildings are built to absorb the shocks. Overly solid structures are more fragile. An assessment needs to be taken on what’s likely to happen, how damaging it could be and plan accordingly.

Many government policies are directed at building adaptability. For example, investment in public and private research, development, and innovation, as well as seeking to attract skilled people will help. The best way out of a problem is to ask smart people to solve it. Schiltz said: “As long as we continue to be intelligent, we’ll be OK.” ×

← L uc Neuberg president Luxembourg Association for Risk Management

R&D expenditure, € per inhabitant (2016)

Investing in brainpower: Luxembourg is a relatively high spender on research & development (this chart combines both the private and public sectors).

Even adjusting for crossborder commuters (which are not reflected in these figures), the grand duchy still spends proportionally more than the Netherlands, France and the UK.

€1,600 1,504

€1,400 €1,200 1,176

€1,000 €800 €600

618.7

€400 €200 €0 UK

FR

NL

LU

SE

Graphics researched by Stephen Evans and Aaron Grunwald

Source → Eurostat

36

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As one of Luxembourg’s five largest fund-servicing platforms, European Fund Administration continually has to adapt to changing market conditions. Delano spoke to CEO Noel Fessey about the challenges facing the Luxembourg industry and how the firm is responding.

NOVEMBER/DECEMBER 2018

The alternative route interview

words

F

ounded in 1996 by a group of local banks, EFA initially focused on providing outsourcing services for Ucits fund managers.

They subsequently built capacity in private asset services such as private equity, real estate, infrastructure projects, debt funds, hedge funds and more. As well, they offer a range of middle and back office services.

Particular focus has been put on the second of these activities recently, with the creation last year of a dedicated Private Asset Services division. This was accompanied by the recruitment of experienced specialists, and a new push to upgrade IT systems. “We’ve been in the alternative space since the 2000s but we decided we needed to grow faster and become a leader for those services in a high growth part of the market,” Fessey explained.

Plans to double

The Private Asset Services division currently has €18.9bn in assets under administra-

Stephen Evans

Funds

photos

Mike Zenari

tion from 99 structures, mainly investment funds, but also securitisation vehicles, limited partnerships and holding companies.

This equates to 12% of EFA’s total asset volume being generated by a team of about 40 people out of a total workforce of more than 400. “Our expectation over the next five years is to double asset volume without a big increase in headcount. We will invest in people and technology to boost productivity and efficiency,” said Fessey. Growth in the private assets industry has been driven by three themes: active asset managers have been looking for alternatives to public markets, where passive funds have been pushing down fees; institutional investors have been looking for long-term investments beyond public markets, hoping to find less volatile rewards for their patient capital; and these two have met in the space vacated as banks which withdrew from funding the real economy in the years after the financial crisis.

There is broad industry expectation that the private asset investment market will continue to grow, and this has attracted substantial competition. Although a challenge, this pressure is broadly predictable. More uncertain though is how political changes could impact the market and the regulatory environment. Most notably, there are still many question marks around how the UK leaving the EU will affect the industry. Several UK-based fund industry players have opened new offices and expanded operations in Luxembourg as a result, and the country has benefitted short term. But on the whole, the grand duchy does not relish the uncertainty. In particular, there are concerns that Brexit will deprive Luxembourg of an ally at the table when regulations are being created or modified.

An early manifestation of this were the discussions last year led by the EU super-­ regulator, the European Securities and Markets Authority. This talk appeared →

39

Funds

“ If someone is taking money from my investment account, I want to see that accounted for in detail.�

40

to call into question rules on the delegation of investment activities cross-border: just the kind of activity that has made Luxembourg and other European-based funds a global standard.

→ Noel Fessey spoke with Delano at European Fund Administration’s offices in October

Calmed delegation fears

NOVEMBER/DECEMBER 2018

“The calling into question of the delegation model arose not because there was failure of business practice, but probably due to a reaction to Brexit and fear that the UK might try to cherry-pick access to the EU single market,” Fessey commented. While he recognised that European politicians have a right to be concerned that single market rules could be circumvented, he pointed to decades' experience of this system working well with American and Asian managers. “If you want the best investment ideas, you have to go to the financial hubs near to where related economic activity is taking place.” Until now, this has worked on the proviso that non-EU managers running portfolios for EU-domiciled funds comply with the EU rules applicable to those funds.

Fessey is pleased that talk of changing the delegation rules has receded in recent months, but he thinks ongoing vigilance is required and that the industry must keep making the case for current arrangements.

“It appears that the message is being heard.

Esma is understandably cautious about how to protect the EU regulatory environment, but is also thoughtful about how to preserve an operating model that has worked well,” he said.

Otherwise, Fessey sees few signs yet that moves towards Brexit are having an influence on the nature of financial services regulation. He also pointed out that even when the UK does leave, the country’s financial services industry will still have a voice in the EU through the subsidiaries of UK firms located in EU member states.

It appears likely that the Luxembourg ­financial regulator CSSF’s decision to issue a circular clarifying delegation and “substance” rules over the summer probably had something to do with the new realities (see page 64). In other words, fund management companies will need sufficient management presence in this country to be able to enforce the rules. Fessey sees this CSSF circular 18/698 as putting firms on notice about conduct of business standards, firming up rules already in place. “This is a restatement and clarification of existing arrangements, and well-­governed firms will have little need to change,” he said. “However, for those who have taken a minimalistic approach to substance, it’s an invitation to upgrade human and technical capabilities.” This document also sends a message to European regulators and lawmakers that Luxembourg is not a soft touch.

↑

QUICK FACTS

Having no other significant new regulation on the horizon means the industry can work to digest recent changes, particularly the monumental Mifid II text. “If I view Mifid II from an investor’s perspective, then I welcome it, because if someone is taking money from my investment account, I want to see that accounted for in detail,” he said with a wry smile. Yet although this major regulation has caused substantial heartache in the industry, and the jury is still out about what benefits will accrue, it is probably here to stay.

Reform required

However, as regards the key investor document (KID) in the Priips regulation, he sees the need for urgent reform. “The move was well meant: to give investors access to clear information. But the result is a bit of a mess,” he said, with some “frankly nonsensical calculations”. When the KID points to negative transaction charges and get-richquick earnings potential, this “can be hard to explain” and potentially misleading. The frustration is that the industry flagged up these concerns before the rules came into force. He called on EU decision makers to “think again”. However, he is not sure this message is getting through, so is keen for the industry to keep making the point. ×

Noel Fessey joined EFA as CEO in November 2017. This followed nearly 18 years with the investment management firm Schroders, of which 13 were as Luxembourg managing director and country head, and a year and a half as COO product for the group. Previously, he worked for 13 years in logistics and IT with the British Army. EFA is one of Luxembourg’s leading providers of outsourced servicing for a wide range of mutual funds and other investment vehicles.

At the end of 2017, they had €126bn assets under administration for 188 clients.

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NOVEMBER/DECEMBER 2018

Politics

Will calls for electoral­ reform be heeded? essay

The 2018 parliamentary election raised a number of questions about the continued decline of Luxembourg’s traditional political parties and the fairness of the electoral system. But will anything change before the next general election in 2023?

words

Duncan Roberts

photos

Matic Zorman and Anthony Dehez

E

very five years, Luxembourg citizens get to vote for a new parliament, and, by extension, a new government. Like many European countries, such as Germany and the United Kingdom despite their having significantly different electoral systems, in the grand duchy, it is the balance of power in parliament that dictates the formation of the government. That distinction is important, because following the 2018 elections, there were voices, though not as numerous or loud as in 2013, that argued the CSV should have the right to form the government merely because it scored the biggest number of votes of any single party. “The will of the people” was being ignored, the argument went.

Yet the coalition that is currently being formed by the DP, the LSAP and Déi Gréng parties won a combined 49.63% of the vote. That is more than any other possible coalition. If the CSV-LSAP (two parties that lost five parliamentary seats between them) had joined forces, they would have only accounted for 45.91% of the popular vote. A CSV-DP government would only have 45.22% of the support of voters. And it was the failure of the CSV to maintain its number of seats from the last parliament that made it impossible for the CSV and Déi Gréng to reach the ­required majority to even entertain the idea of forming a coalition, even though that was the most popular combination among the electorate in a poll published in June.

Parties are still analysing their election results. Those that lost ground at the polls, particularly the LSAP and the CSV, may act to remedy the downward trend at their annual general meetings early next year, when leadership posts are up for grabs.

Modernise or die

There have been calls for the LSAP to ­refresh its image for some time, most recently after the debacle of the 2017 local elections. ­Given the decline of socialist parties across ­Europe, its 2.68% fall in share of the vote on 14 October was not disastrous (even if it was the worst result in the party’s history).

But due to the vagaries of the electoral

system that translated into a loss of three seats, which could certainly have been calamitous for the Gambia coalition, had the Greens not won three seats. Nevertheless, the Jonk Sozialisten youth wing of the party is up in arms and has called for a focus on younger and more female candidates (it looks like not one woman will represent the LSAP in parliament) and for the LSAP to follow the Greens and Pirates by tackling themes such as digitalisation and the environment.

Claude Wiseler has taken responsibility for the CSV’s poor showing, saying it was his decision to campaign “based on facts and not polemic”. Rising star of the party Serge Wilmes, who led the CSV back into power in Luxembourg City in the 2017 local elections, has said he is prepared to take on the responsibility of leading the party as president in the near future.

There is no doubting that the absence of Jean-Claude Juncker hurt the CSV at the polls. His charisma was instrumental in the CSV maintaining power between 1995 and 2013. Wiseler is an intelligent politician with good intentions, but without Juncker at the helm, the CSV seemed to lack drive and concrete ideas during its five years in opposition--and also lost a massive winner of personal votes in the south.

→ The Pirate Party’s Sven Clement, seen here with Xavier Bettel on 14 October, says the current electoral system is a “lottery”

Indeed, many voters who are not particularly aligned to the CSV have voted for Juncker in the past using the so-called “panachage” system. This allows voters to spread their votes (they get as many as there are seats in their constituency) across party lines and to give individual candidates 1 or even 2 votes.

Panachage is outdated

But in 2018, just 36% of voters chose to select individual candidates rather than give all their votes to one party. That is a percentage not seen since 1984. The number of voters choosing a list instead of individual candidates has consistently hovered between 58 and 64% since studies were first recorded in 1974. The exceptions were when it jumped to 68.6% in 1979 (after five years of a DP-LSAP government and the height of the steel crisis) and when it fell to 53.3% in 2004 and 52% in 2009. But at the 2013 election, it rose significantly again, to almost 59%. That it should jump again this year to 64% is significant. There have been calls for the panachage system to be abolished because it does not reflect voter intention on policy, but places the focus too much on how well-known a particular candidate is to each voter. That is why many parties recruit former sports →

43

Politics

← Claude Wiseler casts his vote on 14 October. There have since been calls for major reforms to the way Luxembourg elects its parliament

44

← The LSAP’s Jean Asselborn and Étienne Schneider look on despondently as the results come in on 14 October

NOVEMBER/DECEMBER 2018

stars or TV presenters to their ranks. And it is also why more established politicians get voted in again and again.

But it is not just the panachage system that is being questioned. Several politicians and observers have called for ­doing away with the four constituencies of vastly different size that elect a disproportionate number of MPs. For instance, 36,595 voters chose the seven members of parliament in the east, while 72,986 voters elect 21 deputies in the centre.

One constituency

When the first official constituency result came in, for the east of the country, questions were asked about how the CSV could lose 7.5% of its share of the vote yet retain its 3 seats in that district. By comparison, the Greens gained close to 5% of the vote yet did not win a second seat.

Other anomalies also exist. In the ­centre, the ADR won a seat with just 6.83% of the vote, while the Pirate Party won 7.67% of the vote in the north and just missed out on a seat by some 150 voters. “That’s as close as it gets,” Sven Clement told Delano just two days after the election. “It shows the lottery of our elections system,” he said of the CSV result in the east. “We need to have a discussion about how seats are attributed.”

Many argue that Luxembourg is small enough that a single constituency would be viable. That would also liberate governments from having to choose unsuitable ministers just because they won most votes in a particular district. It might also provide a clearer outcome and end claims from any particular party to be representing “the will of the voters”.

Although voting is obligatory and, in theory, anyone on the electoral list who fails to vote can be fined (though this hasn’t been put into practice since 1964), turnout at the 2018 election was just 89.66%. That is not unusual, with voter participation in the last 30 years varying from 87.6% in 1989 to a high of 91.9% in 2004.

That means that including no-shows, and after blank and spoiled ballots are taken into account, just 35% of the country actually decided on the make-up of parliament. That should be cause for concern.

Even though the DP-LSAP-Déi Gréng coalition, which called the failed referendum in 2015, will continue in government, there is no chance of it calling a fresh referendum on the issue. There are valid arguments from opponents to allowing non-Luxembourgers the vote. For a start, when given the opportunity in local elections, fewer than 20% of those eligible actually take up the option.

They are simply not interested enough, the

argument goes. In addition, following the referendum defeat, the government did make it easier for non-nationals to obtain nationality, and thereby get to vote.

Little appetite

But there is little appetite among the established parties for electoral reform.

Remember that all three questions in the 2015 referendum on reform--giving non-Luxembourgers the vote, lowering voting age to 16 and limiting the number of mandates for ministers--were all soundly defeated. After that triple whammy, it is hardly surprising that the coalition has said it will not undertake any reform before the next election.

Nevertheless, there is a feeling especially among younger voters that a healthy democratic debate on changing the way Luxembourg elects its parliament does need to be started. The election in 2028 has to be fairer and result in a parliament that × truly reflects the “will of the people”.

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reportage

Photography

Shine a light NOVEMBER/DECEMBER 2018 ↑ Former director of the national library and head of the European Commission representation in Luxembourg, Jul Christophory, poses at Galerie Clairefontaine 2 as part of the “Luxembourg Portraits” 2018 project

words

Duncan Roberts

photos

Matic Zorman

47

Photography

Following projects in 1997 and 2002, Marita Ruiter has again asked a photographer to take portraits of the same Luxembourg personalities.

Previous “Luxembourg Portraits” were taken by Ulay, using a giant polaroid, and by Daniel & Geo Fuchs, using thermal imaging. Now, Ruiter has chosen Luxembourg photographer Marc Wilwert for a third book, whose publication will mark the 30th anniversary of Galerie Clairefontaine. Wilwert used a ring light technique to take close-up portraits, which he says gives the subject an intense look. “The viewer should have the feeling the subject is looking back at them,” Wilwert explains. Ruiter and her team managed to get most of the subjects from the previous books to agree to pose again, though not all were fit enough to make it to the gallery and had to be photographed in their home.

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NOVEMBER/DECEMBER 2018 ↑ Photographed at his home, actor Fernand Fox listens to instructions from Marc Wilwert while project initiator Marita Ruiter lends a hand by holding a back screen

→ Former police officer Jean-Marie Ernzer was asked to pose in just his t-shirt for the portrait. Marc Wilwert asked all his subjects to dress in white. So Ernzer half removed his dress shirt for the photo

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Photography

→ Jérôme Guillotin is photographed using a ring light by Marc Wilwert. The photographer previously used the technique for a series of portraits of ordinary people who had saved lives

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NOVEMBER/DECEMBER 2018 ↑ ↑ Adrienne Lentz and Marc Wilwert check the results of the photos he has just taken of her

↑ Jul Christophory’s tie, which he removed for the photo shoot, rests on a page with his 1997 photo, taken with a giant Polaroid camera by German artist Ulay.

From the original “Luxembourg Portraits” book

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52

Delano caught up with Tessy Antony after she addressed students at St. George’s International School. Passionate about empowering women, she also talked about the lessons she has learned and her work in helping young people to engage and take action.

NOVEMBER/DECEMBER 2018

Speaking up to empower change interview

words

Engagement

Duncan Roberts

photos

Mike Zenari

T

duncan roberts Where do you consider home, London or Luxembourg?

They are both very different but they both are home. Home is really where your heart is. So it is obviously always with Luxembourg. It’s where my family is, where I grew up, where a lot of my friends still are and my twin brother… and I adore him. Then London is also my home, because that’s where my children have been most of their lives, where they have their friends. And their happiness is mine. And it’s where I work and have my daily life.

tessy antony

Are you worried at all about Brexit?

Do you think it will have an impact on your life?

I’m worried, of course. We have seen the impact it has on the economy in the UK, with the value of the pound. We do feel that people are confused and scared. I’m from Luxembourg, so I can’t speak for the people of the UK, but people are definitely struggling with it. I hope that the solution they implement will be the right one.

You are an advocate for female empowerment. Did this stem from your time in the army [Tessy was the only female in a Luxembourg army deployment to Kosovo] or even before that?

I think it started very young, actually. I was a little tomboy, I went into the forest and rode my skateboard--lots of things that little girls didn’t usually do. As such, most of my friends were boys. And I really saw the way boys treated girls. I was never a scared child. I learned, and I teach my children, to be strong, always with respect and kindness, but to commit to your actions. If you believe in something, stand up for it.

So, I would always step in straight away if I saw a friend being bullied. I was inspired by a quote from Mae Jemison, the first African American astronaut, who said “don’t ask permission for the work you want to do”.

Being the only woman in my draft in the military was tough--I won’t deny it was so tough. I was twice subjected to sexual

abuse attempts and needed to break a nose.

Now, I know what women in the military and in violent regions go through. That really, really fired up the calling that was inside me already, that maybe I am here to speak up for women who can’t speak up for themselves. I really enjoy what I am doing, I’ve met incredible women all over the world, and I feel blessed.

You are featured in a new season of the “Living the Life” TV series focusing on what the trailer calls “ambitious superwomen”.

Is that how you see yourself?

making millennials understand who these brands and institutions are, and giving them actionable solutions. Vice is a platform bringing everyone together. My department creates campaigns, calls to action, we involve millennials from all over the world--73 million every month. Millennials and also Gen Z, the under 18s like my kids, have an incredible bullshit reader. They know what is wrong with society, with climate change and with brands. And they × want to act. They feel empowered.

Professors Without Borders ↳ www.prowibo.com

No, I see myself as just one person who is part of the community. I would never see myself as a superwoman, because I have my faults, I make mistakes, I am definitely not perfect. I have very little patience-I’m very Italian in that respect, I think.

I am learning every day. I will actually host the next series of “Living the Life”, which will film in the UK and the United States. I am very excited, working with women from all backgrounds and telling their stories. We all learn every day and to call someone a superwoman would just be very inappropriate, for any woman of any age. There are women who inspire us, and we are all extraordinary and unique.

But we are all part of the big puzzle and as such part of the community.

As a co-founder of Professors Without Borders, do you see education as a key to enabling people in less fortunate circumstance all around the world?

I think education gives you different tools to communicate, to interact, to grow and find your skills and confidence. It has had a big part in my life and that of my children.

I wanted to share that experience with as many people as I can, which is why I created Professors Without Borders. Everyone should have the right to experience these opportunities, to feel that they can ­contribute to the growth of their community and society, wherever it might be. A teacher is there to inspire, to listen more than speak.

I feel very privileged to meet all these young people who are full of ideas, drive and ­inspiration who come to see us in their spare time.

Your day job is director of Vice Impact in charge of special projects for the whole Europe, Middle East and Africa region.

What areas are you focusing on right now?

I help brands, institutions and governments understand that having a CSR [corporate social responsibility] paragraph in your annual review is not enough. Real impact requires that extra step, ensuring accountability, transparency, the good will to actually change something. But also

QUICK BIO 28 October 1985: Born in Gilsdorf June 2003: Joined Luxembourg army March-August 2004: UN Mission in Kosovo as part of the BELUKOS 13/15 detachment September 2006: Married Prince Louis of Luxembourg. They have two children, Gabriel and Noah 2011-2014: BA in international relations from American International University, London 2014-2015: MA in international studies and diplomacy from School of Oriental and African Studies, London October 2015: Became UNAids global advocate for young women and girls March 2016: Co-founded Professors Without Borders January 2017: Announced separation from Prince Louis January 2018: Director of Vice Impact EMEA region

53

Engagement

essy Antony has been living in London with her sons, 12-year-old Gabriel and 11-year-old Noah, for just over seven years. While she goes through her divorce from Prince Louis, at which she has been representing herself in court, Tessy has been working for Professors Without Borders (an association that she co-founded) and also as a UNAids advocate. She also recently launched her own website on which the self-described “humanitarian, activist, mother” publishes news about the causes she supports as well as her academic papers.

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NOVEMBER/DECEMBER 2018

Cost in space Newspace finance

The cost of launching satellites and other technology in space has fallen considerably since SES first started in Luxembourg in 1985.

This Luxembourg initiative is considered a major success story, and one leaders want to repeat with the creation of a newspace ecosystem in the grand duchy. words

Jess Bauldry with Aaron Grunwald

photos

Matic Zorman

← Ispace Europe managing director Kyle Acierno with a lunar rover

here were titters in the Mudam auditorium when, at the launch of the Luxembourg Space Agency on 12 September, economy minister Étienne Schneider (LSAP) recalled his first introduction to space mining. Simon “Pete” Worden, then director general of the Nasa Ames research programme, presented what he considered a “science fiction” idea. “I had two questions in mind,” Schneider joked. “Firstly, what did this guy smoke before coming to my office? And second, how do I get rid of him?” Worden’s persistence paid off and today an economic sector is emerging in Luxembourg around commercial space activities, with around 50 companies.

Of that number, around 20 firms have arrived since 2016, the year Luxembourg launched the Spaceresources.lu initiative.

Its goal was to make Luxembourg a major player in mining asteroids. Importantly, it paved the way for this economic diversification, by creating much-needed funding initiatives and developing policy to provide a legal and regulatory framework. €200m for starters

A €200m funding pot dedicated to the sector was a major draw for newspace startups, who have already benefited from €40m through R&D grants, largely for feasibility studies, the ministry says.

The Luximpulse programme, implemented by the European Space Agency, aims to support R&D “where traditional funding doesn’t come in, because it’s used for lower risk activities,” Kleos Space’s Andy Bowyer explains. The procedure, which involves proving the technology and business will work, is “extremely rigid” and it needs to be.

“You’re spending taxpayers’ money. There needs to be an element that this is tangible and worthwhile doing,” adds Bowyer.

Luxembourg Space Fund

The creation of the Luxembourg Space Fund could also help lower the risk for newspace startups. It was initially announced

by Schneider in April 2017 as either a conventional venture capital fund with “a lifecycle of 10 to 15 years, or for a kind of evergreen fund structure”.

It has since been clarified as a €100m venture capital vehicle to be set up between the state and private investors as a reserved alternative investment fund to “invest in early-stage companies, seed stage or series A” rounds, the agency’s director of international affairs and Spaceresources.lu ­Mathias­ Link says.

The fund launch, planned before the 2018 legislative elections, has since been pushed back several months for legal reasons. “It’s clearly a very important part of our initiative,” Dr Link says. “Among those companies that contacted us, we saw many are happy we support them with R&D, but many are looking for equity investment.

Here in Luxembourg, but also in general, there is a lack” of capital.

This state equity model continues something of a trend which began with the creation of SES in 1985, in which the state remains a 33% equity owner, and continued with Planetary Resources, in which the state held a 10% stake until recently.

Risk appetite

Historically, space has been publicly funded for research rather than commercial purposes. The financial risk increases dramatically when it comes to commercial space companies, which at some point need to make money from their schemes. In Luxem- →

LUXEMBOURG SPACE SECTOR 1985: Europe’s first private satellite operator SES is formed in Luxembourg on the initiative of the Luxembourg government as the Société Européenne des Satellites. ↑

3 February 2016: Luxembourg announces a series of measures to position the country as a European hub for space mining through the Spaceresources.lu initiative.

21 June 2016: Luxembourg’s Spaceresources.lu initiative features a dedicated prize in the European Space Agency’s Space Exploration Masters competition.

3 November 2016: The Luxembourg government becomes a key shareholder of US asteroid mining firm Planetary Resources, investing €25m. The government sold its stake in October 2018.

9 February 2017: Luxembourg and the European Investment Bank sign a cooperation agreement to provide advice on financial instruments for private initiatives within the Spaceresources.lu initiative.

13 July 2017: Luxembourg’s parliament adopts the draft law on the exploration and use of space resources, offering a legal framework guaranteeing private operators rights to the resources they extract in space.

5 September 2018: The National Research Fund (FNR) and economy ministry launch a space research programme, providing funding for national public research institutions and Luxembourg-based companies to collaborate.

12 September 2018: Luxembourg Space Agency inaugurated. ↑

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Newspace finance

T

This sense of rigidity is echoed by several newspace startups Delano spoke with.

Some, like Ispace’s Kyle Acierno, even argue that the process with ESA is too slow.

“Luxembourg as a nation is attracting players from all over the world. They can’t depend on the ESA to implement their programmes,” he says. “ESA is a massive space agency that does things in a different way to a small, nimble space agency. It doesn’t make sense for a larger, older organisation to be managing newer, younger, potentially disrupting companies.”

For Fabrice Testa of the Luxembourg Space Tech Angels, however, this due diligence is essential for analysing business plans often involving highly advanced technology to ascertain whether or not they are realistic. This provides much-needed ­assurances for anyone considering investing in future stages. But it takes time and expertise. “What they want at the end is to create a real business. Not just make research like Nasa or the European Space Agency,” he explains.

56

← Fabrice Testa and Tor Fyksen of the Luxembourg Space Tech Angels

NOVEMBER/DECEMBER 2018

bourg, a large chunk of the newspace firms are working on projects aimed at monetising data and analysis. The dramatic decline in cost of sending cargo into low-Earth orbit thanks to players like SpaceX has helped reduce costs. But because the technology is often so new, there are other risk factors, based around success and competitivity.

Fortunately, there is an appetite for this kind of market and the success of Seraphim Capital’s £70m venture fund in the UK is proof of this. In September 2017, it launched the Seraphim Space Fund to support ­innovative companies developing Earth-­ observation technologies and data-driven applications. “We’re a factory to help build newspace companies and newspace entrepreneurs grow their business,” managing partner Frédéric Rombaut said at a recent conference on space technology intellectual property. He says the fund has built a portfolio of 30 newspace companies, a third through the fund and the remainder through its ecosystem linking accelerators, NGOs and research bodies.

Among the companies it has invested in is Spire, an Earth-observation nanosatellite firm which moved to Luxembourg

in January 2018. Seraphim’s fund formed part of the $150m Spire raised through a number of financing rounds, alongside other institutional and corporate investors such as Bessemer Venture Partners and RRE Ventures in the US, Airbus and Baillie Gifford in Europe, and Japan’s Mitsui.

Further funds in Luxembourg

Speaking on the sidelines of the IP conference, Rombaut told Delano that Seraphim was considering opening operations in Luxembourg as a post-Brexit strategy, notably because of the fund expertise there but also because of its newspace activities.

Acierno believes finance for Luxembourg newspace operators through funds like these will become much more common in the immediate future. “I’ve talked to a number of different people interested in developing different funds here. I think there could be up to €500m by the end of 2019, not just from the Luxembourg Space Fund but from other funds coming to Luxembourg.”

Specialised space funds with a diversified portfolio of complementary companies would prove popular with local investors and business angels. Tor Fyksen,

who created the Space Tech Angels, says that as a private investor, he would prefer to invest through a fund than “take a risk on too many startups. I’m not saying that startups are not interesting, but maybe in a fund setting. […] Take the Luxembourg Space Fund. If that space fund was to open for private investors on tickets down to €5,000 or €10,000, that would be tremendously interesting for private investors.”

Another carrot, he says, could be to offer a tax break for private investors investing in newspace.

Loans & equity investments

Until the Luxembourg Space Fund and others like it are established, there remain several other options in Luxembourg. Link says the newly created Luxembourg Space Agency has a host of financial instruments which it recommends based on the needs of each company applying. “I think from the outside it might look unclear, but the big advantage we have as a small team and a small country is we know each other very well. We know our industry,” Link stresses. Among them are an agreement with the European Investment Bank to offer →

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NOVEMBER/DECEMBER 2018

loans to SMEs, loans and equity investments through Luxembourg’s National Credit and Investment Institution (SNCI) and the European Investment Fund-managed Luxembourg Future Fund. This fund combines €120m from the SNCI with €30m from the EIF and aims to stimulate the diversification and sustainable development of the ­Luxembourg economy. It joined an existing $70m funding round in Spire in ­November 2017.

→ The Luxembourg Space agency’s director of international affairs and spaceresources.lu Mathias Link

Competitions

Outside of loans, a potential revenue channel for newspace startups is competitions.

Luxembourg has its own contest, the Spaceresources Challenge, as part of the Space Exploration Masters. Established by Luxembourg’s economy ministry, the challenge aims to discover solutions which will complement the country’s space ­resources activities. The prize from Luximpulse will be a €5m research grant for a first project in Luxembourg. These sorts of contests, Link says, serve to boost the creation of innovative startups. The Google Lunar X prize, for example, was created by the X Prize Foundation and sponsored by Google as an inducement for engineers to build a commercial lunar lander. Even if no-one succeeded, it led to the creation of around six newspace companies, among them micro-­robotics firm Ispace, which will deploy its first demonstration in 2020.

A less well-trodden route for astropreneurs is to float their newspace companies on a stock market. Earth-observation nano-satellite operator Kleos did just

“ The big advantage we have as a small team and a small country is we know each other very well.” ↑ Mathias Link

that when it raised $11m through an IPO on the Sydney bourse in August 2018.

“The Australian Stock Exchange is a big exchange and has a lot of technology heritage, bringing high-tech companies through and having successful IPOs very early in their development,” Bowyer says, adding that there were few markets with similar mindsets.

Bowyer acknowledges this route comes with its own challenges but on the whole, he recommended it. “I’m sure people will follow the same footsteps. Lots of people have asked me about it. Not in Luxembourg, but around the world.”

Funding gaps

The funding pot for newspace appears to be overflowing but there remain gaps when it comes to funding for later stage newspace firms. Many of the firms Delano spoke to agreed that more needed to be done for the follow-on financing at TRC 7-9, or series C. “I think it’s a recognised challenge and not unique to Luxembourg in that respect,” Bowyer says. Peter Platzer of Spire agrees and warns that if Luxembourg wants to get a return on this

sector, it needs to fill this gap. “The risk I see for Luxembourg is that companies might get started here […] but they might lose companies when they grow […] and they have to go somewhere else for that capital,” he says.

VCs could help fill the funding gap in this later stage growth, but Fyksen said there needs to be a platform for them to do this. “The path you have for normal VC investments has to be built up for space as well,” he says. According to Testa, the interest from VCs to invest in later newspace startups stage has grown dramatically. Like when Schneider first heard Worden’s pitch, he said the investor community was laughing when he first talked about newspace. Testa adds: “Now they were at the Luxembourg Space Agency launch. They’re looking. They see it’s starting to become serious and attract× ing momentum.”

get the picture Space Industry

Plotting trajectory

NOVEMBER/DECEMBER 2018

Space agency Luxembourg inaugurated its space agency on 12 September 2018, two years after the launch of the Spaceresources.lu initiative, providing a legal, regulatory and business ecosystem for private investors and companies to explore and use space resources. [1]

Space studies The University of Luxembourg offers a master’s degree in space, communication and media law, in which 30 students are currently enrolled. In 2019, it will begin an interdisciplinary master’s in space resources. [3]

Space granddaddy Luxembourg’s relationship with space began in 1985 with the establishment of satellite operator SES in Betzdorf. [2]

Newspace companies Today, Luxembourg boasts around 50 commercial companies active in space. Ispace Europe, whose lunar rover is pictured, was established in Luxembourg in 2017. [4]

Luxembourg is making global headlines for its activities in the commercial space sector.

Delano takes a tour of the key developments. words

photo

Jess Bauldry Matic Zorman

GDP The commercial space sector represents 2% of national GDP in Luxembourg, making it six times bigger than agriculture. [2]

Data economy A large chunk of Luxembourg’s newspace companies manufacture or work with satellites or drones to monetise Earth observation data. [5]

Finance Luxembourg will soon launch a €100m publicprivate venture capital vehicle, providing equity funding for newspace companies with innovative ideas and technology.

[6]

Sources → [1] Spaceresources.lu → [2] Economy Ministry → [3] University of Luxembourg → [4] Luxinnovation → [5] Delano analysis → [6] Luxembourg Space Agency

60

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special report

Alternative funds

NOVEMBER/DECEMBER 2018

Growing expectations Alternative funds, designed for professional and savvy investors, are booming in Luxembourg. That’s partially, but not only, due to Brexit. However, that doesn’t mean there aren’t challenges ahead. We start with real estate, which will be the focus of the second day of the Association of the Luxembourg Fund Industry’s PERE Conference in November. words

Stephen Evans

Meeting demand

This is a maturing market, and the principal concern appears to be how to grow fast enough to meet investor need. “Markets are still strong as there has been continued strong demand for long-term investing options for a number of years,” said Keith Burman, a partner with Management Plus and co-chair of the Association of the Luxembourg Fund Industry’s Reif subcommittee. Fund managers find it relatively easy to drum up business, as investors are keen to get involved, but there can be a lack of investment opportunities.

To a large extent, this is down to fund managers creating attractive products and demonstrating a track record.

Brexit is a contributory factor. New funds seeking continued access to investors across the continent need a base in one of the EU27 member states, and Luxembourg or Ireland are obvious choices. But this is far from being the main driver. Rather, it’s a question of fund managers putting more supply on the market to satisfy demand for products that promise attractive investment returns and offer risk diversification.

Increasingly common are “blind-pool funds” in which a fund is located in one jurisdiction with capital from various countries. Increasingly, funds will acquire or identify a property first, and then involve investors, either directly or through an asset manager. No two building projects are identical, and there are many ways to attract investment. Tax and corporate structuring questions need to be taken into account, and a range of regulatory tools are required to match. Of course, this requires knowledge of different countries’ legal environments to correctly structure the investment vehicle.

One disappointment has been that demand for infrastructure funds has not taken off as many in the industry had hoped.

When raising investment for major road, rail, air transport, etc., projects, “most are club deals with a number of big investors who organise a joint venture, rather than through a fund,” Burman noted. Often → managers and investors find these

Reforms have helped

It also helps that Luxembourg has built the necessary expertise, and offers a tried and tested regulatory regime and a welldesigned suite of investment vehicles. It’s been five years since the SCSp (special limited partnership) was introduced, and the global industry has seen this in action, giving managers the same flexibility as they are used to in English-speaking jurisdictions. Then, there is the reserved alternative investment fund (Raif) which, as well as hastening speed to market, has added greater flexibility, enabling changes to be made swiftly over time.

These reforms certainly helped the recent boom in this sector, which gathered pace after the SCSp was introduced in 2013.

Nevertheless, Luxembourg’s original

Keith Burman Partner Management Plus

↓

“ Open-ended core funds used to be rare."

63

Alternative funds

Growth in the Luxembourg real estate investment fund (Reif) sector has already exceeded that seen in all but one of the last 10 years, and could be on course to beat the 2015 record. There are some signs of investor concerns over asset valuations, → but for now, demand remains strong.

alternative vehicles--such as the specialised investment fund (Sif)--are still useful and are facilitating innovation. “Open-ended core funds used to be rare, but we’ve seen a number of these and this is a new trend for Luxembourg,” Burman said. These funds can issue new shares to attract fresh investment over a fund’s lifespan which can extend to several decades. For long-term commitments like these, investors often appreciate a regulated structure like the Sif.

Photo → Marion Dessard (archives)

1.

Cruising speed for real estate funds

Net assets in Luxembourg real estate funds were 19.7% higher in August 2018 than at the end of 2017, says the regulatory agency CSSF. Already, this figure is a couple of points higher than the average annual increase in the five years to 2017, and could challenge the recent record of 26% reported in 2015. The total value of assets under management at 31 August (€69bn) is about three and a half times the 2008 figure. Although this total represents less than 2% of the total for the whole Luxembourg fund industry as a whole at the end of August, this is a significant, high value-adding niche for the country.

64

Luxembourg real estate investment funds

Net assets

€bn 80 69.017

70 60 50

NOVEMBER/DECEMBER 2018

40 30 Source → CSSF

20.926

20 10 0.615 0 2000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*

*Note: As of 31 August 2018

“I don’t see why things should change,” said Burman. “There are concerns about how long the current cycle can continue, but if there is a correction, traders will × react as they always do.”

Europe-focused

The Luxembourg Reif industry is mainly focused in Europe, both in terms of investments and investors. A 2017 survey into the sector conducted by Alfi found 81% of investors in funds surveyed were based in Europe, with the rest from the Americas and Asia-Pacific region. As for projects supported, 79% were in Europe, 6% global and 5% from Asia-Pacific.

As for the strategies, 40% were multisectoral, 15% invested in residential and 10% in office buildings.

The near future looks bright, even if there are increasing concerns that assets are becoming relatively expensive. The analysts Preqin said in their Quarterly Real Estate Update in July that global “private equity real estate deal activity has fallen for a second consecutive quarter in 2018”, but that activity this year is likely to be on a par with that of 2015 and 2016. However, they found that of the fund managers they surveyed, a majority are concerned about property valuations. “In response, fund managers might be shifting towards smaller deals,” Preqin said, adding that they’ve seen a move towards residential real estate which is seen as “currently presenting the best opportunities”.

Given this cautious optimism, Luxembourg growth could indeed beat the recent record for annual growth in this sector.

2.

Tidying manco rules

onsite inspections by the CSSF. It is also a response to questions about regulatory practice received from industry players.

Most of the text concerns requirements related to regulatory compliance and internal control functions. However, there has also been a tidying-up of anti-money laundering, counterterror financing, →

A significant regulatory circular introduced over the summer clarifies how investment fund management companies (mancos) must be governed. While the vast majority of funds will already be broadly compliant with these rules, it is a strong message to laggards to firm up their procedures.

On 23 August, the Financial Sector Supervisory Commission (CSSF) published circular 18/698 on the “authorisation and organisation of Luxembourgish investment management companies”. Most of this relates to the need for sufficient operational “substance” which would enable the Luxembourg entity to properly carry out required regulatory and business activity.

Most not new

“Much of this is not new,” said Marco Zwick, the CSSF’s recently appointed director with responsibility for investment funds, speaking to the Alfi Global Distribution Conference on 25 September.

“Many of these requirements featured in previous circulars, but we had the desire to ensure these covered all types of management company in a consistent fashion,” he added. Much of this text is inspired by experience gleaned from

Photo → Olivier Minaire (archives)

structures to be less complex than a fund structure, not least from a regulatory perspective. There are several major infrastructure funds, but on the whole, they have not taken off in a big way.

Marco Zwick Director CSSF

↓

“ We know from our onsite visits that there are some gaps.”

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and know-your-customer rules. Zwick added that more would follow “in the coming months” when the OECD’s Financial Action Task Force publishes their risk-based guidelines for securities, which will include investment funds.

Onsite inspections will continue, and the CSSF is working towards full compliance by all players by the second half of 2019, Zwick added. “We will have a period of closing the gaps, but from the start 2020, × no gaps will be tolerated any longer.”

NOVEMBER/DECEMBER 2018

There are now clearer definitions on the role of mancos, and how their directors and managers should act. Terms such as “delegate”, “key functions” and “fit and proper” have been firmed up. There is now a limit on the number of mandates a board member can assume (20, for a maximum of 1,920 hours per annum), deadlines are now clearer regarding ongoing and annual regulatory reporting, and risk management rules for alternative funds and Ucits have been aligned. Rules on delegation procedures have been clarified, as has the application of the European Market Infrastructure Regulation and Money Market Fund Regulation.

Discuss transition

Zwick said that there is no official transition phase, but that some can be given time to get up to speed. “We know from our onsite visits that there are some gaps and we want to give different players the opportunity to conduct their own analysis of the situation as soon as possible. If you have any concerns about gaps and how to close them, come to us to discuss. We can then agree on a date when → these gaps will be closed,” he said.

Photo → Association of the Luxembourg Fund Industry

66

Laurent Fessmann Managing partner Baker McKenzie

↓

“ This will involve at least three jurisdictions.”

3.

Wider alternatives Once a necessity as institutional investors hunted for yield, now alternative fund strategies have gone mainstream as investors appreciate the diversification and returns they offer. Luxembourg is facilitating this growth and is reaping the benefits.

We know Luxembourg’s alternative fund sector is growing strongly, but putting figures to this is difficult. The traditional methods of quoting the volume of net assets is tough. How much is a private equity investment worth when the company is not quoted on a stock exchange? What is the value of an apartment block, an office complex or student accommodation held by a real estate investment fund? At the end of June 2018, there were €695bn of assets under management in Luxembourg alternative investment funds (AIFs), according to the European trade association Efama. However, this figure is based on the types of fund vehicle used, and many of these funds also have investments in traditional public assets. Nevertheless, this figure gives an idea of the direction of travel, with average annual growth from 2014-2017 of 9.3%. In the year to date, net assets rose 3.3%.

Evidence of growth

Looking at the different asset classes gives another impression. Over the 2015-2017 period, figures by the CSSF regulatory agency point to assets under management in the real estate sector growing on average by 19.5% per annum, with the figure set to exceed this in 2018. Total assets for Luxembourg real estate funds were €69.2bn at the end of August 2018.

However, putting a figure on the size of Luxembourg’s private equity fund sector has proved elusive as these assets are difficult to value.

Comparison with other countries is also problematic. Luxembourg is fourth in Europe in terms of assets in the Efama figures, behind Germany, France and the Netherlands, and just ahead of its main cross-border competitor Ireland. However, as regards the number of AIFs based here → (4,581 in June), the grand duchy is

WHAT BREXIT EFFECT? It is difficult to quantify the Brexit effect in Luxembourg in general, and for alternative funds in particular. Not all players have announced their plans publicly, much less given accurate information about their hiring.

National statistics office Statec estimated that by September 2018 41 financial services businesses had relocated some activity to Luxembourg from the UK, of which they said 13 companies are in asset management and funds.

All are likely to have some funds with alternative strategies. Statec said around 400 jobs have been created directly by the 41 firms.

Luxembourg is the EU country that has seen the most Brexit-related moves overall, says the consulting firm KPMG: 12 more than Ireland, 25 more than Germany and 27 more than France.

LOAN FUNDS TO THE FORE A burgeoning alternative strategy is loan/credit funds. These grant and restructure loans, often filling the funding gap made vacant by banks which have been less willing to lend since the global financial crisis. Investors are overwhelmingly financial institutions, but some high net worth individuals have also been attracted. Aggregate capital invested in regulated loan funds in mid-2017 was €40bn, said an Association of the Luxembourg Fund Industry survey. There was a 280% increase in the number of these funds from 2015 to June last year.

ALTERNATIVES TALK The Association of the Luxembourg Fund Industry’s PERE (private equity and real estate) Conference will be held at the European Convention Center, in Kirchberg, on 20-21 November 2018. ↳ www.alfi.lu

Straight talking.

Thinking around corners.

Understanding and solving the problem before it becomes a problem.

Performing as a team, no matter where you are.

Delivering clear and practical advice that gets your job done.

2,800 lawyers / 47+ offices / 80+ languages / 100+ years of history

In Luxembourg since 2013 www.hoganlovells.com Hogan Lovells is an international legal practice that includes Hogan Lovells International LLP, Hogan Lovells US LLP and their affiliated businesses.

Images of people may feature current or former lawyers and employees at Hogan Lovells or models not connected with the firm. www.hoganlovells.com Š Hogan Lovells 2018. All rights reserved. 1027916 _0818

68

Luxembourg alternative investment funds

Marketshare (right scale) Net assets (left scale)

% 15

€bn 1,000

12.7% 11.7%

800

12

695

NOVEMBER/DECEMBER 2018

600

9

400

6

200

3

0

0 2014

2015

2016

2017

1H 2018*

*Note: As of 30 June 2018

ranked second highest in Europe, behind France, and with about 40% more funds than Ireland.

Sometimes, it is the more anecdotal evidence that is the most telling. For example, Luxembourg has welcomed around seven new international legal practices in the last two years. Helping firms with their alternative fund strategies are a significant part of why they came.

Strong fundamentals

This growth is thanks mainly to booming alternatives markets globally and in Europe. For example, the analysts Preqin point to venture capital fundraising in Europe reaching €15bn in 2016 and €12bn in 2017. The first seven months of 2018 saw funds targeting the region secure over €11bn from investors, already more than any year in the 2008-2015 period.

Efama figures for AIFs in Europe totalled more than €6trn in July 2018: more than three times the figure seen for 2007.

More growth is in the pipeline. A recent survey by State Street of 250 global asset managers suggested that 83% plan to offer real estate funds and private equity funds, up 13% and 24% in a year.

Brexit is also having an effect (see box on page 66), and there could be more to come.

“Some of the larger players that set up new PE vehicles and raise funds every second or third year have had to move in order to ensure continuity for investors,” said Alain Kinsch, country managing partner of the consultancy EY in Luxembourg

and EMEIA private equity fund leader.

“However, other PE houses, especially smaller ones, still have time as they go to market every four to five years.” These funds only need licences to operate in the EU at the time of fundraising.

Substance magnifier

The impact on Luxembourg of these growth fundamentals is magnified by international rules designed to reduce tax evasion. This has affected all international businesses with a base in Luxembourg, as well as funds. Firms have been following the OECD’s base erosion and profit shifting rules for a while, and these requirements are being put into law through the EU’s Anti Tax Avoidance Directive. This will enter fully into force in Luxembourg from 2020, with some provisions applicable from next year.

Most players have responded by increasing back office, middle office and decisionmaking presence in this country. However, some players are using this to make a fundamental strategic reassessment, with them seeking to rationalise their panEuropean operations, including moving substantial front office capability to Luxembourg. For example, the Swedish private equity group EQT relocated a wide range of its operating platform functions to the grand duchy last year.

Nowhere else

Players are coming here because nowhere else offers such expertise into how to structure funds that involve many

jurisdictions. “From the property asset on the ground, through to the property company, then the intermediate holding company, and then to the Luxembourg fund, this will involve at least three jurisdictions,” said Laurent Fessmann, the managing partner of the Luxembourg office of the international law firm Baker McKenzie, describing a common structure in the real estate space. More countries make for more complexity, and then there can be links to feeder funds channelling capital from outside the EU. Operating these structures requires sufficiently flexible investment vehicles and detailed knowledge of the regulatory environment in each jurisdiction.

Luxembourg already had an attractive regulatory environment, and this was reformed in recent years to match the requirements of global alternative fund players. These changes have now bedded down and have become well-known within the industry. The SCSp partnership regime matches strategies seen in the Anglo world, and the Raif enables managers to react quickly to events in the life alternative funds; strategies that require flexibility. This, plus a booming global market, is partly why Luxembourg’s economy and property prices are booming, and why the roads are that little bit more × congested these days.

Source → Efama

517

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Perspectives

What regulatory change is the biggest opportunity for Luxembourg’s alternative funds sector in 2019?

Photo → Hogan Lovells

NOVEMBER/DECEMBER 2018

Photo → Aberdeen Asset Management

70

Market forces, not regulations

Too many options

Steen Foldberg Head of Luxembourg, managing director Aberdeen Asset Management

Pierre Reuter Investment funds partner Hogan Lovells Luxembourg

The recent regulatory developments around alternative investment funds have very much put Luxembourg on the map and the regulatory framework certainly is in place to support further growth.

The introduction of limited partnerships, which provide structuring flexibility, enabling quick time to market, while still being under solid regulatory framework and with high investor protection, has really been very well received and is now taking pace.

In the funds space, Luxembourg is an attractive place to do business for various reasons, such as its pragmatic regulator and its skilled and multilingual workforce.

A further advantage of Luxembourg was its relatively straightforward legal and regulatory framework. Previously, you had the choice between the specialised investment fund, fully regulated by the CSSF, and a nonregulated alternative investment fund.

So with the regulatory framework well positioned for the Luxembourg alternative funds, my view is that the biggest opportunity for the alternative funds for 2019 is not necessarily coming from the regulatory angle, but rather from changes in financial markets and investor appetite.

Most investors have enjoyed a 30-year bond rally, but now it appears that we are in a raising interest rates environment.

For bond holders, this is bad news. So far, many investors have accepted no yield from their fixed income, but in a rising interest environment, bond holders will face losses on their bond positions.

Even if this is basic financial knowledge, I think this will come as a surprise to many and further reinforce a positive effect on alternative investments.

So in summary, the Luxembourg AIF regulation is very supportive for asset managers. With our innovative pipeline of new alternative funds, and not forgetting our Ucits range, I believe we are excellently positioned for growth in EMEA, × Asia-Pacific and Americas.

Then came along the restricted alternative investment fund which, on paper, was the “best of both worlds”. The Raif was created as an answer to the market’s demand for a flexible vehicle with a reduced time-tomarket. The Raif offers features that had only been available to fully regulated AIFs, such as segregated cells and variable capital.

Hence, it should have been a great success.

However, has it been? We think that it created confusion in the mind of fund sponsors as to which is the right choice for them. If your investors require a regulated vehicle, the choice is easy. If they do not, what really is the advantage of using a Raif versus a non-regulated SCSp? On top of that, Luxembourg wants to further enhance its attractiveness with the creation of a Reit. Do we really need an additional vehicle? The once clear offer of the Luxembourg “toolbox” is becoming ever more confusing.

Real opportunities for Luxembourg exist when introducing new technologies in the world of funds, such as blockchain technologies for transfer agency tasks.

These areas should attract all the attention and we should focus all our creativity on × them, to remain ahead of the curve.

Photo → Vistra

Photo → United

Photo → Sacred Heart University

71

Brexit-proofing structures

Future hidden champions

Circular 18/698

Jens Hoellermann Adjunct professor of finance SHU Luxembourg

Claude Crauser Director United International Management

Jan Vanhoutte Managing director and conducting officer Vistra

2019 will provide some regulatory changes to Luxembourg’s alternative funds sector, be it in relation to the European Markets Infrastructure Regulation, which demands attention from compliance managers or Anti Tax Avoidance Directives 1 and 2, which require increased thoughtfulness pertaining to tax compliance and structuring.

Depending on its ratification, the new double taxation treaty between Luxembourg and France requires in particular real estate managers to assess their tax position and to structure their investments differently.

At United, we consider that the recent revision of the EuVECA regulation and the EuSEF regulation will push the growth of Luxembourg’s alternative investment funds in 2019.

In order to future-proof and ensure continuity of distribution arrangements in a hard Brexit scenario, post-March 2019, some UK-based initiators have already decided to establish proprietary alternative investment fund managers in Luxembourg, or, driven by economies of scale, are actively negotiating with third party AIFMs to provide these services for existing and new raise funds, as under a delegation model, even post-Brexit, the fund initiator should still be able to provide portfolio management from the UK or elsewhere.

A significant change was already released on 23 August 2018. Even if “Circular 18/698”, which aims for strengthening substance and operational requirements, came into force immediately, not all asset managers might be compliant yet and would still need a few months to implement it.

Although the European Commission’s market study on the Alternative Investment Fund Managers Directive was considered as a key step towards AIFMD II, it is naturally superseded by Brexit discussions, which represent the biggest opportunity for Luxembourg’s alternative funds sector. A lot of people now think that the chances of a hard Brexit in March 2019 have increased.

Asset managers and their funds have to implement Brexit-proof structures. So far, Luxembourg has been the winner, but other jurisdictions have a lower corporate tax rate, which might be a topic to be tackled by the re-elected government.

Even if increased (tax) compliance and substance provide opportunities, Brexit is considered as the biggest one and could continue to make Luxembourg the number one location for alternative funds in Europe. ×

In our daily practice, we note that both regimes are relatively unknown to smaller fund initiators and deserve more attention.

The regimes provide a solution to one of the key challenges faced by smaller fund initiators: the fragmentation of the legal and regulatory environment in the different fund-raising jurisdictions.

Recurrent queries of prospective initiators turn around private placement, reverse solicitation, inherent risks, etc. The revamp of the regimes should increase their visibility, but also provides for a clarified and harmonised approach of the local supervision authorities with regard to the interpretation of the terms of the European directive. It is essential that the smaller initiators are continuously supported as they, through their personal network, recurrently manage to source deals laying the grounds for future (hidden) champions.

Another element that we consider having an impact on the AIFs is obviously the continuous uncertainty around Brexit and bilateral access to the financial markets.

Whereas we don’t consider that all fund initiators will flee London and settle in Luxembourg, we strongly believe in building bridges allowing the combination of local fund initiators having access to onshore AIFs that enjoy a highly stable and foreseeable political and regulatory × environment.

On 23 August 2018, the regulator CSSF published its Circular 18/698 on the “authorisation and organisation of Luxembourgish investment management companies; specific provisions on the fight against money laundering and terrorist financing applicable to investment fund managers and entities carrying out the function of registrar agent”.

The circular confirms existing practices already applied by the CSSF, as well as some new requirements in relation to AML/KYC, governance, central administration, internal controls and key functions such as delegated activities, marketing, internal administration procedures and valuation.

The combination of a potential hard Brexit scenario and the implementation of the circular might be seen as challenging for fund initiators, but is certainly a great opportunity for Luxembourg to demonstrate its infrastructure, experience and to provide efficient solutions to × address managers’ concerns.

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← Oriane Schoonbroodt says Label R checks the ethical investment claims of alternative funds

Alternative funds

Financial diplomacy Label R is the world’s first certification outfit that covers environmental, social and corporate governance (ESG) practices coupled with business ethics, including anti-money laundering, anti-corruption and ethical financial practices. words

photos

Sarah Pitt Mike Zenari

­ choonbroodt explains that it was natural S to set up Luxembourg, “not least because my project partner Serge Krancenblum, group CEO of SGG, is based here, but also because it is the second largest investment funds hub in the world, and there is a lot of energy behind ethical and impact investing.”

Label R combines Krancenblum’s financial background with Schoonbroodt’s experience in diplomacy. “We noticed many funds didn’t know how to process ESG. According to a survey released by ­Morgan Stanley, 84% of global asset owners claim to pursue or consider ESG investing, whereas in reality, less than 5% implement it. Behaviours have to be scrutinised in order to make the highest ethical standards the norm,” states Schoonbroodt.

Label R has a certification process that goes beyond traditional reporting practices, she says. Its impartial methodology comprises a process audit coupled with an onsite audit, and an independent reputation audit checking funds, management companies, suppliers and subsidiaries.

“Entirely separate from the client, the reputation audit is cross checked with the data obtained from the fund or the company through the process and onsite audits, providing a real verification of the internal audits.”

While many indexes and guidelines exist for public funds, Label R has been recognised by the International Finance Corporation as the only company able to provide ESG methodology for private equity funds.

It takes one to three years for a company to become certified. Label R gives investors the security that risk has been thoroughly measured at all levels. Schoonbroodt states: “No other kind of tool gives this kind of × assurance to investors.”

O

riane Schoonbroodt is co-founder and executive director of Label R, which specifically addresses alternative investment funds (AIFs) with operations in sensitive and emerging zones where the risk is greater for investors.

“Our goal is to provide a strong and harmonised tool for funds to be able to prove that they are effectively implementing ESG, and thereby help them grow by developing good business practices, enhancing their reputation, and ensuring a long-term positive impact.”

The company was established in Luxembourg in October 2017 and has just started integrating its first clients. A former Belgian diplomat and policy advisor to the European Parliament and UN,

ESG SCREENING Label R has partnerships with Sqope, a financial intelligence provider, and SGS, a global inspection and testing company.

Members of Label R’s advisory board include the chief investment officer of the International Finance Corporation, part of the World Bank, and a managing director at BlackRock, the world’s largest asset manager. ↳ www.label-r.org

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Agenda

NOVEMBER/DECEMBER 2018

Hub Dot

Luxembourg Space Agency

Make world better place

Newspace Europe 2018

The event is “an opportunity to create links with associations, philanthropic fundraisers and change makers”. Each ticket includes a €2 donation to the breast cancer awareness group Europa Donna.

Breaking down barriers is the motto of this year’s Newspace Europe, providing a networking platform and launch pad for emerging space actors. Speakers include Steve Collar of SES.

Wed 21 Nov, 18:30 BoConcept, Bertrange

Tue 27-Wed 28 Nov European Convention Center ↳ newspace-europe.spacefrontier.org/2018

↳ www.hubdot.com

A selection of upcoming business, information and networking events for Luxembourg’s international community

British Chamber of Commerce

Leading change Bob Kneip, of Kneip, a data and reporting services provider to financial firms, will “share his experience of change management” during this breakfast workshop.

The Network

Wed 5 Dec, 08:30

Learning from failure Marie Louise Ashworth, president of The Network, presents “Lessons in Life - Failure to Success”.

The women’s networking group says: “She will help us to recognise that encountering our fears and failures prompts necessary changes.”

Wed 21 Nov, 19:00 Hotel Le Royal ↳ www.thenetwork.lu

Badenoch & Clark, Gare district ↳ www.bcc.lu

Level2 Hackerspace

Open Tuesday “This is a place where people interested in computers, science and technologies can hang out together, tinker with technology, hack on projects, socialise, and collaborate.”

Tue 27 Nov, 20:00 Syn2cat, Bonnevoie

Syn2cat asbl

Paperjam Club

Tech talk ACA

Insurance Day The Insurance Companies Association (ACA) hosts its sixth annual industry summit. Speakers include Claude Wirion of the Supervisory Authority for the Insurance Sector (CAA).

Thu 22 Nov, 13:30-20:00 European Convention Center ↳ www.acainsuranceday.lu

Consolidation, expansion and new services all “require a review of current technology and its ongoing suitability”.

The “Adapting your tech strategy to 2019” talk will cover data security, privacy and compliance.

Wed 28 Nov, 18:30 Arendt House ↳ www.club.paperjam.lu

Technoport

Luxembourg-Poland Chamber of Commerce

Startup Weekend

Fintech & regtech

Entrepreneurs: “Meet great people to create a team, build a prototype of your idea, validate your business idea, and receive feedback from experienced entrepreneurs, all in one weekend.”

Networking and pitch event for Polish fintech and regtech startups to connect with Luxembourg fund, banking, insurance and other financial firms.

Fri 7 Dec, 18:30 to Sun 9 Dec, 21:00 Technoport, Esch-Belval

Thu 13 Dec, 17:30 Chamber of Commerce, Kirchberg ↳ www.lpcc.lu

Startup Weekend Luxembourg

American Chamber of Commerce

Christmas lunch At press time, Pierre Gramegna, the outgoing DP finance minister, was expected “to preview the Luxembourg government national budget for the new year and to visit with our members”.

Wed 12 Dec, 12:00 DoubleTree by Hilton ↳ www.amcham.lu

Find more events Check Delano’s digital agenda for the latest happenings: ↳ www.delano.lu/agenda

Photos → Lala La Photo → Mike Zenari → Matic Zorman → Dlanor S on Unsplash → Maison Moderne → Jonas Leupe on Unsplash

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More investment strategies.

One objective.

Yours.

Alternatives Multi-Asset Quantitative Active Equities Fixed Income Real Estate Private Markets

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Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.

Issued in the EU by Aberdeen Asset Managers Limited. Registered in Scotland No.108419. Registered Office: 10 Queen’s Terrace, Aberdeen, AB10 1XL. Authorised and regulated by the Financial Conduct Authority in the United Kingdom. Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL.

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in focus

Style

Inklusivity

NOVEMBER/DECEMBER 2018

The world of tattoos has opened up considerably over the past decade, so much so that today, tattoos are considered by young people like a regular accessory. Once the brand of criminals or bikers, today women especially make up a big section of the market demand and they are increasingly making their mark as artists. “For the last five or six years, women have taken their place in the world of tattoos and left their mark, which is often more refined and detailed than that of a man,” Scylla Pierce says. In Belgium, women make up 35% of the artists; in Luxembourg, the proportion is closer to 10%. He established The Storm Ladies Tattoo Convention in Luxembourg, where this picture was taken in October, to increase their exposure. “Women haven’t always been welcome so they have been less visible,” Pierce says. “It’s a very macho job.

They really have to put themselves out there.”

words photo

Jess Bauldry Mike Zenari

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Style

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The Source A guide to culture and lifestyle

80 Interview

Accessible value Steph Meyers on how the Rotondes manages to balance its resources

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Special feature

Interview

Wish list

Earthy flavours

A brief guide to alternative Christmas shopping and local gift ideas

Two-star chef Ilario Mosconi on truffles and his passion for pure produce

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interview

Culture

NOVEMBER/DECEMBER 2018

Headed along the right track Starting his third year in charge of the Rotondes, Steph Meyers talks about the positive challenges he faces as the culture venue seeks to retain its accessibility as well as its reputation for producing quality projects and hosting scintillating concerts. words

photos

Duncan Roberts Mike Zenari

O

ne of the most mundane, but biggest challenges Steph Meyers has faced since taking charge of the Rotondes has been the human factor. “To be in charge of 27 people is something still very new for me. We have this dynamic and this ambition to make things happen, to create projects,” he says in his office overlooking Rotondes 2, the former railway engine shed that now houses the venue’s Buvette bar and concert hall. “So, I don’t really have a problem motivating them, but on the other hand, I sometimes have to tell them, ‘no, we don’t have the budget’. It’s not a problem, but it’s always difficult to drop one thing to start another. It comes with the job. And it’s positive that the team is still enthusiastic.”

But being in charge of the Rotondes and realising an ambition to have the venue be more and more associated with cultural issues and projects also means having to negotiate “in a lot of diplomatic talks” with public funding and administrative institutions. Not that he was inexperienced. “Roga [Robert Garcia, Meyers’ predecessor] always used to take me to these meetings to take notes, so I would remember how things worked.”

Harmonious programming

Meyers has also succeeded in taking a more general overview of the Rotondes, trying to have the perspective of an outsider. “To see what works and what doesn’t, and what direction we are headed.” That requires someone critical who can apply logic and take decisions, he explains.

The move back to the original site of the Rotondes near the station in 2015, after several years at the Carré Rotondes in Hollerich, has made life easier in many ways for the director. For a start, he has a unique exhibition and reception space and state-of-the-art auditorium at his disposal in Rotondes 1. In addition, programming for the eclectic panoply of events staged by the venue has become more harmonious. Previously, the Carré Rotondes had its “Traffo” programme for children and youngsters, its “Exit07” venue for live music, as well as an exhibition space. “It was not easy to abandon those, because Traffo and Exit07 were pretty much their own brands and very wellknown,” Meyers says. But he admits that one department would often be oblivious to what was happening in the other.

Developing a global communication strategy and trying to build bridges between the venue’s different types of audience poses a long-term challenge.

Meyers recognises, for example, that concert booker Marc Hauser had a tough time when the Exit07 brand, which →

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Culture

“ We have this dynamic and this ambition to make things happen.�

culture. But it was the kind of interaction that wouldn’t even happen at the local playground. Because parents came here to enjoy an aperitif, many of them who didn’t know such a place existed in Luxembourg. I have a very optimistic view.” Many cross-border workers, who might usually catch their train home at 6 p.m. also stopped off for a drink in the early evening during the summer.

The great thing about the Rotondes programme is that it is very accessible.

Again, Meyers thinks this may have to do with the Rotondes having a connection with children. “I always think if something works well for children, then it will also work for adults.” He cites an anecdote that he likes to repeat about a sculpture installation at the old Carré Rotondes called “Diamonds are Forever”. Made from metal tubes, the artwork also served as a theremin--though it was not obvious that it was also a music instrument. “We didn’t even have to put up a sign explaining that visitors should touch it, because the kids immediately experimented and touched the artwork. And, even better, the dogs reacted to the sound.”

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Cool problems

THE ROTONDES First used as a venue in 2007, when Luxembourg--and the Greater Region--was a cultural capital of Europe, the two disused railway roundhouses behind the city’s main station then underwent a major clean-up and renovation.

The Rotondes was permanently installed there again in June 2015. In between, the venue was renamed Carré Rotondes and was housed in a former Paul Wurth industrial building in Hollerich.

The cultural centre now hosts visual arts exhibitions, live performances, conferences and workshops as well as a permanent bar and the Congés Annulés festival in August. ↳ www.rotondes.lu

had built a great reputation on the independent tour circuit, was dropped.

Neighbourhood connection

Does the Rotondes location in Bonnevoie also mean the venue has built closer ties with residents of the local neighbourhood?

“Yes, because we actually have a neighbourhood,” Meyers jokes. “There is still a lot to do with the communities in Bonnevoie.

I think there is an opportunity to have more interaction between communities, between the Gare and Bonnevoie districts and maybe between different social classes. And I think that really happens through the children.”

For example, the fantastic summer of 2018 allowed the courtyard of the Rotondes to become a meeting place, he explains. “Children, and even dogs, played together and that was nice to see. It’s about more than

Next year, the Rotondes will host the second edition of “Multiplica", its biennial exhibition of digital art. Technically, it is complicated to organise and install because many pieces are quite large in scale and require the artist to be on site during the exhibition. In addition, “digital art is still very new and can still be very intellectual,” Meyers explains. “Our challenge is to make it a festival accessible to the whole family.”

One of the other “cool problems” Meyers faces is what to do with the Rotondes 2, which currently houses the Buvette bar and concert hall, when it finally is renovated. The current thinking is that the old patina on the outside of the building will be retained and not spruced up like Rotondes 1. As for the interior, Meyers says the team has now drafted nine different proposals on how best to use its generous space. “We have to think about doing something different from Rotondes 1, but still keep in line with our programming. To do something really nice in this beautiful but impractical build× ing. It’s very complicated.”

rainy days

Festival de musiques nouvelles Philharmonie Luxembourg 13.–25.11.2018 rainydays.lu

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Premieres and works by Peter Ablinger, Georges Aperghis, Joanna Bailie, Huihui Cheng, Micheline Coulombe SaintMarcoux, Sivan Eldar, Evelyne Gayou, Rama Gottfried, Genoël von Lilienstern, Ursula Mamlok, Yan Maresz, Matilde Meireles, Enno Poppe, Alberto Posadas, Stefan Prins / Daniel Linehan, Éliane Radigue, Rebecca Saunders, Matthew Shlomowitz, Chris Swithinbank, Annette Vande Gorne, Francesca Verunelli entre autres With Einstürzende Neubauten, ensemble mosaik, Ensemble Resonanz, Hiatus, Klangforum Wien, Nadar Ensemble, Noise Watchers, Orchestre Philharmonique du Luxembourg, Phace, Quatuor Diotima, Synergy Vocals, United Instruments of Lucilin, Baldur Brönnimann, Christina Daletska, Florian Hoelscher, Nacho de Paz, Emilio Pomàrico, Heather Roche, Benjamin Vandewalle, Bas Wiegers, Agata Zubel entre autres Exclusive automobile partner

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On stage

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Iconic theatre, a host of music legends and a silent film classic that gets a new soundtrack Indie folk

The Saxophones NOVEMBER/DECEMBER 2018

Electronica

Rone French producer Erwan Castex has established himself as a highly sought-after producer.

He has worked with artists as diverse as The National (on album “Trouble Will Find Me”), JeanMichel Jarre and Étienne Daho.

His own music has seen Rone release three studio albums, the latest of which, 2017’s “Mirapolis”, has recently been reissued as a remix by Laurent Garnier.

Not a hint of brass in their music, duo Alexi Erenkov and Alison Alderdice describe their sound as “minimalist dream pop”. With woodwind elements evocative of Nick Drake, and delightful tremulous guitar from Erenkov, the band’s sound is entrancing.

Inspired by a range of music, from Hawaiian to west coast jazz and Italian songwriter Vittorio Impiglia, the duo perform deeply textural compositions.

1 December Rotondes, Luxembourg-Bonnevoie ↳ www.rotondes.lu

30 November den Atelier, Luxembourg-Gare ↳ www.atelier.lu

Soul

Lauryn Hill

Rock Kraut beat & Thai psych

Sea Moya & Yin Yin A double bill of experimental electronica funk and psychedelia from Germany and the Netherlands promises to provide for a danceable and entertaining frenzy. Sea Moya, whose music showcases a “lysergic haze of electronic funk” and “kraut rhythms”, have been described by The Guardian as “ambitious” and having “twin urges to experiment and entertain”. Dutch duo Yin Yin were inspired by southeast Asian music from the 60s and 70s to create dance tracks that mix world music, disco, funk and electronic music.

29 November De Gudde Wëllen, Luxembourg-Centre ↳ www.deguddewellen.lu

The Breeders Almost 30 years after forming, indie supergroup The Breeders play their first ever gig in Luxembourg. Fronted by Kim Deal (formerly of Pixies), with her twin sister Kelley and British bass player Josephine Wiggs, the group released new album “All Nerve” in March. Recorded at their studio in Ohio, the album was called “one of the band’s finest blends of sugar and swagger…” by AllMusic.

23 November den Atelier, Luxembourg-Gare ↳ www.atelier.lu

words

Duncan Roberts

The former Fugee is on a world tour to mark the 20th anniversary of her iconic solo album “The Miseducation of Lauryn Hill”.

The Rockhal show is the last on the European leg of the tour, so could be a great celebration of the music she made in 1998. The album was lauded with critical acclaim 20 years ago and still resonates with fans today. Part of the ticket receipts go to the MLH Fund that supports community building worldwide.

14 December Rockhal, Esch-Belval ↳ www.rockhal.lu

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Sven Helbig German composer and producer Sven Helbig, who has worked with Pet Shop Boys and Rammstein, is perhaps not a household name, but his music will be familiar to many. He is in tour with the Forrklang Quartet, performing new compositions, including recent string orchestra work “Tres Momentos”, as well as chamber music versions of his well-known pieces.

TOP PICK

On stage

Electronica

Theatre

Abigail’s Party

30 November Philharmonie, Luxembourg-Kirchberg ↳ www.philharmonie.lu Dance

Photos → Claudia Weingart → Jill Furmanovsky → François Darmigny → Mark Sepple → Felix Broede

Nile Rodgers & Chic The dance music pioneer and his band to play at the Rockhal as part of an acclaimed world tour. Sadly missing the deceased Bernard Edwards, Chic is still a great dance band and will play a selection of tracks from the 1970s and more recent album “It’s About Time”.

Rodgers was not only instrumental in creating a unique sound for Chic and Sister Sledge, but also composed and produced iconic albums including “Diana” for Diana Ross, “Like A Virgin” for Madonna and “Let’s Dance” for David Bowie.

A range of VIP packages, including tickets that allow holders on stage to dance with Chic for the last song, are available.

6 December Rockhal, Esch-Belval ↳ www.rockhal.lu

Classical

Sydney Symphony Orchestra David Robertson conducts the Sydney Symphony Orchestra in a programme featuring Australian artist Brett Dean’s “Engelsmusik”. Inspired by hearing the University’s Wind Symphony in full flight, the piece is described by the composer as “quiet, fragile music that only hints momentarily at the latent power within its instrumental line-up”. The orchestra is joined by violinist Renaud Capuçon for a performance of Erich Wolfgang Korngold’s violin concerto and the evening also includes Sergei Prokofiev’s fifth symphony.

7 December Philharmonie, Luxembourg-Kirchberg ↳ www.philharmonie.lu

Doug Rintoul returns to Luxembourg for his production of Mike Leigh’s savage 1977 suburban comedy “Abigail’s Party”. Rintoul has been a regular guest of the Théâtres de la Ville de Luxembourg with his versions of “Design for Living”, “Closer”, “Invisible”, “As You Like It” and “The Crucible”. His latest project takes on Leigh’s acclaimed TV play, in which Alison Steadman gave an iconic performance as the party host Beverly, a social climber who wants to impress her neighbours and will go to incredible lengths to ensure her soirée is perfect. The Guardian has said that the “revival proves the original’s timeless power” and praised lead actress Melanie Gutteridge for finally freeing Beverly “from Alison Steadman’s formidable legacy”.

27-29 November Grand Théâtre, Luxembourg-Limpertsberg ↳ www.theatres.lu

Classical

Concertgebouw Belgian conductor Philippe Herreweghe leads the Amsterdam-based Royal Concertgebouw Orchestra in a concert featuring Franz Schubert’s “Six German dances”, Beethoven’s “Violin Concerto” and Robert Schumann’s “Second Symphony”. Isabelle Faust is the violin soloist for the Beethoven piece. She famously plays the 1704 “Sleeping Beauty” Stradivarius. A 2012 recording of her performing Beethoven’s concerto with the Orchestra Mozart, conducted by Alban Berg, had one reviewer describing her playing as rich, bold and brilliant.

25 November Philharmonie, Luxembourg-Kirchberg ↳ www.philharmonie.lu

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Ciné-concert

The General

British singer-songwriters are a hit at den Atelier, with Scottish wunderkind Lewis Capaldi (29 November) and the everpopular beardo Tom Walker (1 December) both performing at the rue de Hollerich venue.

Jazz bass legend Marcus Miller also returns to the Atelier for a show with Belgian singer Selah Sue (6 December).

The Rockhal has some big names lined up for the next month, starting with Katie Melua and members of the Gori Women’s Choir (23 November) and The Prodigy, the first band to play the venue in September 2005, returning on 8 December.

Over in Dudelange, Belgian icons K’s Choice play opderschmelz as part of their 25th anniversary tour on 29 November.

Rotondes is also hosting some great music, with American poet and multi-instrumentalist Vera Sola on 19 November and local electronic jazz artist Klein releasing an EP on 24 November. ↳ www.atelier.lu ↳ www.rockhal.lu ↳ www.opderschmelz.lu ↳ www.rotondes.lu

5 December Philharmonie, Luxembourg-Kirchberg ↳ www.philharmonie.lu

Opera

Fidelio German theatre icon Achim Freyer directs Beethoven’s opera, performed by the Arnold Schoenberg Chorus and the OPL. The production, which first premiered at the 2016 Wiener Festwochen in Vienna, has been hailed as “visually stunning as well as disturbing production with a carnival and mythical, yet semi-religious atmosphere”.

Marc Minkowski conducts and Christiane Libor and Michael König sing the roles of Leonore and Florestan.

Dance

Sasha Waltz One of the most popular choreographers to regularly have their work performed at the Grand Théâtre, Sasha Waltz presents “Kreatur”.

A collaboration with artist and fashion designer Iris van Herpen, lighting designer Urs Schönebaum and art and music trio Soundwalk Collective, the work examines the phenomena of existence against the background of a disrupted society.

12 & 13 December Grand Théâtre, Luxembourg-Limpertsberg ↳ www.theatres.lu

5 & 7 December Grand Théâtre, Luxembourg-Limpertsberg ↳ www.theatres.lu

Find more events Check Delano’s digital agenda for the latest happenings: ↳ www.delano.lu/agenda

Photos → Monika Rittershaus → Sebastian Bolesch

NOVEMBER/DECEMBER 2018

MUSIC ROUNDUP

Undoubtedly one of the greatest films of the silent era, Buster Keaton’s American civil war comedy “The General” is given a new soundtrack here by Cameron Carpenter. The American organist has often performed at the Phil and is renowned for his innovative, genre-bashing use of the instrument. The film, with its focus on steam engines, steel wheels running over railway tracks and cannon fire should lend itself brilliantly to Carpenter’s unique organ playing.

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special feature

Festive gifts

NOVEMBER/DECEMBER 2018

Christmas shopping guide

While it is an easy option to head online ahead of the festive season, shopping for a truly unique present with a story behind it adds a real personal touch.

Delano provides a guide to three events at which original and local items can be snapped up. And over the next few pages, we list a selection of gift ideas with a real local flavour. words

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Duncan Roberts

1

Photos → Lala La Photo → Tom Weis → VdL/David Laurent

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Festive gifts

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For charity

Bazar International 1

This annual event sees 70 stands representing over 60 countries, manned by some 1,500 volunteers from Luxembourg’s international community. Most visitors go to take a culinary tour of the world, tasting typical food and drink specialities. But it is also a great place to find unusual gift items from the various country stands--everything from South African carved wooden animals to Japanese kimonos, from Venezuelan fashion to German Christmas decorations. Proceeds from the event go to some 75 charities working internationally and in the grand duchy.

This year, the main project that will benefit is a Swedish project that is working in Sierra Leone to help education and health and fight female genital mutilation.

8 & 9 December Luxexpo The Box, Luxembourg-Kirchberg ↳ www.bazar-international.lu

Unique art

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Troc’n’Broll

The freewheeling Troc’n’Broll auction can land you a unique piece of art, for the price of a favour. Visitors get to view the art that is up for sale starting at 6 p.m.

Anyone can make a non-cash bid, of an item or service. In the past, these have included anything from cooking a meal for the artist to donating time to pet grooming or volunteering for a charitable cause.

Each artist will select the winning bid for their own piece. The winning bids are announced at around 11 p.m. This is one way to find a truly original holiday gift, with a real story behind it--because buyers get to meet the artist personally and the fact they have accepted an offer indicates some sort of kinship in way of thinking.

14 December Rotondes, Luxembourg-Bonnevoie ↳ www.rotondes.lu

Designer fare

Shop till you drop

Marché des Créateurs

Sunday openings

Twice a year, Mudam opens its main foyer and hallway to local and international designers and creative talents to sell their wares.

The December edition is labelled “All I Want For Christmas”.

Visitors to the two-day Marché des Créateurs will find designer fashion and textiles, ceramics, illustrations and paintings, jewellery, toys, household goods and books. And they can chat with the designers themselves in what is a very convivial atmosphere. Each year, the artists and companies are chosen by a curator--this year, it is Anne Darin-Jaulin, director of the UCVL city retailers’ association.

The fair is open from 10 a.m. to 6 p.m. on both days.

If your shopping time is limited to the weekends, then help is at hand. From 25 November to 30 December, shops in Luxembourg City will be open on Sundays from 2 to 6 p.m.

What’s more, public transport on city buses and the tram is free of charge on Saturdays and Sundays.

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15 & 16 December Mudam, Luxembourg-Kirchberg ↳ www.mudam.lu

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25 November, 2, 9, 16, 23 & 30 December Luxembourg City ↳ www.vdl.lu

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MUSIC Live performance

A season at the Phil

↳ www.philharmonie.lu Electronic

Sun Glitters But if you do spend your money on things containing local music, then make sure it is “Lo-Fi-Lo-Ve”, the latest release from Sun Glitters. The 13-track album, released in various digital formats on 16 November, has been described as “focused and honest” as Victor Ferreira explores the emotions of joy, pain, remembering, forgetting, loss and love. ↳ www.futurearchiverecordings.com

BOOKS Booze guide

Incider knowledge Self-proclaimed ciderologist Gabe Cook has written what could well be the definitive book on the apple-based tipple.

“Ciderology” provides an essential history of cider and perry, and also takes readers on a tour of Cook’s favourite producers-including Luxembourg’s very own Ramborn.

It is available from online book sellers and locally from Ernster. ↳ www.ernster.com Literature

Local authors Still relatively young, Luxembourg-based English-language publisher Black Fountain Press has a catalogue of three books.

The most recent release, “Fresh from the Fountain”, is an anthology of short stories and poetry that showcases English writing in Luxembourg. Authors include Delano’s very own Jess Bauldry and freelance contributor Wendy Winn. Other titles include Anne-Marie Reuter’s short story collection “On The Edge”, and Lambert Schlecher’s “One Day I Will Write a Poem”. ↳ www.blackfountain.lu

Photos → Krik Edwards → Gabe Cook → Maison Moderne

NOVEMBER/DECEMBER 2018

Do not spend your money on things, but on experiences. That is advice we can only recommend if the experience is attending live performances in the auditorium of the Philharmonie. Now a tradition, the concert hall has put together a range of season tickets available as gifts. Each package includes access to three concerts around a theme--from prestigious classical concerts to celestial voices, from great pianists (like Yuja Wang, pictured) to experimental jazz. There is even a “Petits Princes” subscription aimed at youngsters.

G I F T F I N D I N

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WWW.VINSMOSELLE.LU

DRINK

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Crémant

Arty bubbly

NOVEMBER/DECEMBER 2018

Luxembourg’s most renowned producer of crémant, Bernard-Massard, has unveiled a series of special edition artistic bottles in time for the festive season. The golden “Signature Édition” bottles were designed by five artists--including Luxembourger Nina Ballerini--selected from an original field of 350 by visitors to the producer’s “Golden Talents” website. The signature bottles are available until the end of the year. ↳ www.bernard-massard.lu Wine

Signature bottles Hand-designed labels are the hallmark of Vinsmoselle’s new Vignum range of five grand premier cru wines. Bottled as magnums to make sure the party keeps going, the wines include two riesling, two pinot gris and a pinot blanc. There is also a crémant available. ↳ www.vinsmoselle.lu

DECOR Floor furnishings

Stylish carpets Tapis Hertz is something of a Luxembourg institution. The family business has been importing carpets to the grand duchy for over 60 years. Its range includes authentic Asian carpets, handmade carpets imported directly from India, Nepal, Pakistan and Afghanistan and exclusive nomad carpets from the south of Iran. But it also carries a range of contemporary floor furnishings to suit most budgets. ↳ www.tapishertz.lu Textiles

Kichechef in Mamer is not all about kitchens and furniture for bedrooms or living rooms.

The showroom also has a wide range of textiles from prestigious brands, including tableware, soft furnishings (cushions pictured are from Magma), warm and stylish blankets and bath robes, that make for great gifts. ↳ www.kichechef.lu

ART Souvenir

Stunning landscapes Ben Carter has rightfully earned a reputation for producing unique visions of Luxembourg landscapes. Offset prints of his paintings-familiar views of the old and modern Luxembourg City--make for great gifts and would grace any home. But he has also created a series of stunning sculptures in iron of steelworks images and a city scape (pictured) that showcases iconic landmarks of the capital, including the cathedral and Mudam. ↳ www.bencarter.lu

Photos → Jan Kath → Patrik Osterblad → Magma → Bernard-Massard → Vinsmoselle

Soft and cuddly

FINEST WINES &

SPIRITS

Uncovering the worlds finest wines & spirits selection !

www.weng ler .lu - w w w . w e n gl e rw i n e c l u b. l u - Ro spo rt

BRAND VOICE

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Photos → WW+

NOVEMBER/DECEMBER 2018

Shopping

“Lifestyle Center: a unique customer experience to enjoy in Luxembourg” Operating in Bertrange since 1974, the City Concorde is now becoming a “Lifestyle Center”. This genuine living space offers its visitors unique experiences revolving around six realms of activity: fashion, beauty, gastronomy, sports, leisure and services. Max Koster, CEO of the City Concorde, explains this new concept and his vision for the future. presented by

City Concorde Lifestyle Center

BRAND VOICE

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→ On the rooftop, a private terrace dedicated to fitness group classes, the only one of its kind in Luxembourg

Shopping

Strassen

Bertrange Luxembourg E44 City Concorde

A4 A6

A FAMILY-FRIENDLY ENVIRONMENT In line with the lifestyle habits of Grand Duchy residents, the City Concorde attracts a loyal clientele of all ages. Families with young children find themselves especially spoilt for choice. From the moment they pull into the parking lot, they’ll find dedicated spaces wide enough to be able to take out their strollers and close enough to the entrance to avoid tiring out little legs. An open-air playground as well as a nursery allow for relaxation while, on the shopping front, multiple shops are devoted to clients' needs.

The City Concorde, a long-standing Luxembourg fixture, is becoming a Lifestyle Center. What does that mean for visitors?

The City Concorde is not only a place to do your shopping. Of course, we do have a wide range of shops and restaurants--over 100 in total--but we offer much more than that. In a deliberately urban setting, we deliver unforgettable experiences to individuals, couples, families, friends and colleagues, all under the same roof. The City Concorde brings together a large number of restaurants and bars where guests can share a meal and enjoy a drink. We have a 450 sqm beauty space offering a wide array of services--for men and women--where guests can pamper themselves. We also have a 1,300 sqm fitness center, the only one of its kind in Luxembourg, as it’s located on the rooftop, complete with a private terrace dedicated to group classes. Finally, the Lifestyle Center lays great emphasis on public spaces, gatherings and relaxation thanks to the rooftop space which includes, in addition to the fitness center’s terrace, the bar-restaurant’s private heated terrace,

max koster

set to offer Sunday brunches and weekend events, and a public terrace allowing everyone to enjoy the view in tranquillity.

Is this transformation from shopping center to Lifestyle Center a trend that we’re seeing in other countries?

We are indeed seeing this concept a lot across the Atlantic. But in the United States, for example, the lifestyle center, in bringing together a sports hall, a movie theatre, a cinema, a paintballing venue, etc., is geared more towards leisure. We have our own interpretation of the lifestyle center. We bring together various complementary realms of activity and offer a space for people to meet up and take part. We also pay special attention to let in plenty of natural light so that the walkways become streets and visitors feel as though they are strolling through town. It’s a unique concept in Luxembourg and the Greater Luxembourg area.

As of the 15th of November, the City Concorde has also expanded…

Indeed, after two years of construction, we are welcoming 20 new shopfronts, including

restaurants, a café, a fresh juice bar, a sports retailer, a perfume shop and a space dedicated to Scandinavian fashion. Most importantly, we have clothing, shoes, and accessories boutiques for men, women and children, some of which are unique to Luxembourg. There are both international brands and original concepts alongside local shopkeepers who are opening a second shop in the center. Not to be outdone, the center’s other shops are following suit and renovating their existing premises; they too are an integral part of the new City Concorde Lifestyle Center! This remarkable ensemble of experiences translates to an exclusive offer which sets it apart from other shopping centers in the country. And we haven’t finished yet: 2019 will bring more changes, including the arrival of new brands, like Rituals, Solar, Sichel Loft, and more. ×

From the 28th of November The holiday season is here, and it’s the perfect opportunity to come and visit the new City Concorde Lifestyle Center!

Restaurant review

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WHAT’S NEW? Mad About Peru NOVEMBER/DECEMBER 2018

The Dudelange-based South American restaurant has opened a second location in Hollerich. The dishes are superbly balanced with spices and flavours, and include a range of ceviches and meat, seafood or vegetarian main courses. We recommend the typically Peruvian “lomo saltado”. ↳ www.madaboutperu.lu

I Love Milk How did cereals become a thing you go out to eat?

It seems very pretentious and hipster, but actually we like the range of breakfast bowls and the friendly staff at this latest venture on rue de Bonnevoie. There’s also a great choice of milkshakes and other dairy delights. ↳ www.ilovemilk.lu

Bacchus

Pizza in the government canteen words Duncan Roberts

photos Sébastien Goossens

How can something as normal as choosing where to go for pizza

with friends be fraught with so many pitfalls? In Luxembourg, everyone has their favourite pizzeria, more often than not a joint right in their neighbourhood that is so authentic it is packed with Italians.

In the city centre, the choice seems to be between two traditional addresses.

Onesto on rue du Nord opened as Giorgio’s in the 1980s and is rightly popular with the international community and

the sort of hip Italians who seem to have made the nearby Konrad café their home base.

Down near the city history museum, nestled in the government quarter, Bacchus is another familiar venue that also opened in the 1980s-in 1984, to be precise. It is just behind the Michelin-starred Clairefontaine, which for a while was known as the government canteen because cabinet used to retire there after its weekly meeting.

But Bacchus is the real government canteen, its dining spaces littered with huddles of civil servants, breezy MPs and the occasional ebullient minister.

Service here is smart and efficient, and usually helmed by owner and maître d’ Franco.

Lunch for three was executed

in under an hour without feeling rushed. The back room, a tented terrace that is heated in the winter, is probably the best place to be seated. No chance here of the waiters ignoring you just because you are out of sight of the frenetic pass and constantly fed pizza ovens.

Rather than offer a free digestif, as so many Italian restaurants do these days, a free coupe of bubbly is brought to the table for each adult, along with a slice of margherita pizza. Packets of grissini are available, but the bread in the basket is a disappointing and soft baguette rather than the more familiar dense crisp crust Italian bread.

The waiter addresses us in Luxembourgish (which wins brownie points) and the food is very good if not spectacular.

It is also one of the best value dining venues in the city centre, with many of the pizzas under €13. The Contadina has a crisp, thin base and maybe

not enough salami piquant, but the rucola and jambon is topped with a generous serving of the salad leaves and mouthwatering prosciutto.

A lasagne comes piping hot and beautifully browned on top.

It’s all very sincere but modest, just right for family lunch or an unfussy dinner with a group of friends at which conversation, or eavesdropping on state secrets, is more important × than the food.

Delano gives it:

32 rue du Marché-aux-Herbes Luxembourg-Centre 471 397 ↳ www.bacchus.lu

The caterer

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NOVEMBER/DECEMBER 2018 interview

Cuisine

A chef for all seasons Ilario Mosconi likes all seasons, but if he had to choose one, the Italian chef would most likely pick autumn for its wholesome produce and earthy flavours.

words 

photos 

Annick Weber Mike Zenari

← White gold: Ilario Mosconi with Tartufi bianchi di Alba­ in his 2-star Michelin restaurant

and other fresh pasta, homemade with eggs from hens in Lucca. Between ­October and December, diners can ask for their plate of perfectly al dente pasta to be topped with generous shavings of white ­truffle--the ­icing­on the cake for any lover of simple, yet × flavour-packed Italian cuisine.

Mosconi

13 rue Munster, Luxembourg-Grund

546 994 ↳ www.mosconi.lu

Self-taught

E

very year, from October to December, Ilario Mosconi dedicates an entire tasting menu at his restaurant in the Grund district to the white truffle of Alba, one of the season’s most prized delicacies. From the starter through to the dessert, each of the five courses on Mosconi’s Tartufi di Alba menu incorporates the rare ingredient in dishes such as risotto mantecato (see recipe on right) or semifreddo with ricotta sauce, acacia honey, Piedmont hazelnut and white truffle.

“My cooking always highlights the produce in their purest state, and with it, the producers behind them,” explains Mosconi, who is originally from the Brescia province of Lombardy and sources all his ingredients directly from Italy. “We hold very strong ­relationships with our producers and know them all personally, visiting them regularly all around Italy for tastings. This is how we select the freshest, finest and most flavourful produce for our restaurant.”

Michelin stars

Mosconi’s ingredient-driven, honest approach to Italian cuisine won his restaurant a first Michelin star in 1997 and a second one in 2005, which he lost for a couple of years and then regained in 2016.

“The day we found out that we had our second Michelin star back was even more of a celebration for us than when we won

Mosconi is an autodidact who didn’t do any formal training other than an internship in the late 1980s at renowned Italian chef Gualtiero Marchesi’s three-Michelinstarred restaurant. Back then, Ilario and Simonetta Mosconi were already running their own restaurant, Domus, in Esch-surAlzette. “We were both working on the restaurant floor,” he says. “We thought it would make more sense if I took over the kitchen and Simonetta looked after the dining room. I had always been passionate about cooking, so I went to do a stage at Marchesi’s restaurant.” After just a short time, Marchesi, who is widely celebrated as the founder of modern Italian cuisine, had instiled in Mosconi a passion for showcasing high-quality ingredients beyond their traditional boundaries.

Step into the kitchen

Upon returning to Luxembourg a few weeks later, Mosconi decided he was ready to be at the helm in the kitchen of Domus; he was awarded his first Michelin star just a few years later, in 1997. The couple moved the restaurant to its current premises on the banks of the river Alzette in 2000, changing its name to Mosconi.

Today, their two-star restaurant is staffed by a team of around 20 chefs, patissiers and sommeliers, mainly from Italy but also from France and the rest of the world.

Truffles and pasta

The menu at Mosconi changes with the seasons. In autumn, guests have the choice between a regular autumnal tasting menu or the special Tartufi di Alba menu. ­Another now legendary option at Mosconi is the nine-course pasta degustation menu, featuring a selection of conchiglioni, ­pappardelle

ILARIO MOSCONI’S RECIPE FOR RISOTTO MANTECATO Ingredients

(Serves two) → 140g good-quality risotto rice, such as Carnaroli rice → 70g unsalted butter → 5g chopped shallot → 5cl white wine → Chicken or vegetable broth → 1tsp of grated Parmigiano Reggiano parmesan → 30g white truffle of Alba

Method 1

Heat 30g of the butter in a saucepan,

add the chopped shallot and the risotto rice. After a few minutes, pour in the white wine and stir until the wine is fully absorbed. Reduce the heat.

2 Add a ladle of broth to the rice and stir.

When the rice appears almost dry, add another ladle of broth and repeat the process for around 15 minutes.

3 When the risotto rice is tender but firm to the bite, work in the rest of the butter and add a teaspoon of grated parmesan.

4 Serve on two plates and finish off with finely sliced shavings of white truffle.

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Cuisine

it the first time round,” says Simonetta Mosconi, Ilario’s wife and the managing force behind the restaurant. The pressure of retaining his two stars is what drives Mosconi to always push things forward, constantly aiming for more in order to offer his guests the best possible dining experience. His restaurant is now ­Europe’s only two-Michelin-starred Italian restaurant outside of Italy. “Unlike other Michelin-starred Italian restaurants within Italy, I love that I don’t just need to focus on the region that the restaurant is situated in,” explains Mosconi. “I have all of Italy to play with.” This freedom to look everywhere for inspiration translates to an explosion of Italian flavours in ­Mosconi’s cooking, in which sun-ripened Puglia tomatoes, Calabrian olive oil and Sicilian pistachios meet mountain cheeses from the Dolomites and white Alba truffles.

words

NOVEMBER/DECEMBER 2018

In my suitcase

100

Aaron Grunwald Pitsch (Maison Moderne)

photos Patricia

← Candlesticks Danes have the concept of “Hygge” or cosiness.

Candles make things cosy and homely, so “you will find them in almost all Danish homes”.

↙ Swimming cap & goggles She didn’t know how to swim before living in Luxembourg and took it up here. Swimming is “tremendous exercise”, Jeanne says. “When you get older, avoiding illness is not always something you can decide, but if you have the possibility to stay in good shape” then swimming is one good way to do it.

Jeanne Lindegaard, a Danish retiree, shares some of the things that she brought with her when she moved to Luxembourg.

↘

WHAT I REGRET LEAVING BEHIND “The main thing I miss is the sea. I miss the sea and the very fresh air you get when you are close to sea.” She used to go to an aunt’s holiday home close to the Øresund sound (seen here), but now goes to the northern part of the Jutland peninsula.

↑ Backpack & boots Jeanne’s husband bought her first pair of hiking boots for her about 24 years ago, when they were living in Switzerland.

Since moving to Luxembourg, “we’ve done all the circuits in the ‘201 Rambling Routes’ hiking guide. We’ve done all of them. Some many times and all of them at least once.”

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↑ Small Danish flag The “Dannebrog” is said to be one of the oldest flags in the world; legend has it that the flag fell from the sky in 1219.

Jeanne says: “It’s always on the table for birthdays and days of celebration.

That’s very Danish.”

In my suitcase

↑ Little goblin Christmas decorations The Danish gnome Nisse plays a big part in holiday festivities. Traditionally, each farm or household would put out something for the little goblin to eat and drink during the Christmas season, to avoid bad luck.

The Nisse tradition is “taken very seriously” in Denmark. Here we don’t see Lindegaard’s “real” Nisse, which she puts out only for the Christmas season.

These are smaller versions.

Jeanne Lindegaard

KEEPING COSY AND FIT The Danish native lived in Spain for several years as a child before moving back to Denmark with her family. Later, after she married, Jeanne lived in Switzerland, moved back to Denmark again, and then headed for Luxembourg in March 2010 with her husband Mogens. She’s now retired.

↖ Little teapot This teapot used to be in her aunt’s holiday home, close to the beach north of Copenhagen.

↑ Table clothes Typical Danish design from the brand Georg Jensen Damask. “We use them when we have guests.” Danes “typically invite each other over for dinners [and] don’t eat out at restaurants very often”.

Kids page

102

Go for a magical spin

The advent season in Luxembourg

On the big wheel or on the ice, kids will love Winterlights activities words

Duncan Roberts

Spectacular views

ALSO COMING UP

Advent circus

Parade

Christmas theatre

A modern homage to the traditional circus, the annual show under the big top just before Christmas features acrobats, daredevils, clowns, jugglers, strongmen and a rollerblading trapeze artist from Scandinavia and a fire-eating hair-hanging act from Liverpool.

Kleeschen, as Saint Nicholas is known in Luxembourg, arrives at the city train station at around 1:30 p.m. on 2 December for the start of a traditional parade up to the place Guillaume II via the Christmas markets on the place de Paris and place de la Constitution.

He will be accompanied by his wicked sidekick, Housecker, and floats carrying angels. They will distribute sweets and goodies to crowds lining the route.

The Rotondes and the Théâtres de la Ville each year put on a special programme of shows aimed at kids for the Christmas holidays.

Many of the performances in the “Chrëschtdeeg am Theater” programme are dialogue free, so can be enjoyed by anyone regardless of language proficiency.

30 November-16 December Glacis, Luxembourg-Limpertsberg ↳ www.luxemburger-adventscircus.com

2 December at 1:30 p.m.

Luxembourg-Gare and Centre ↳ www.winterlights.lu

A ride on the 32-metre-high Ferris wheel at the place de la Constitution provides passengers with a spectacular view of the city and of the Christmas market stalls below.

The market here offers visitors less “traditional” fare than the stalls on the place d’Armes.

Indeed, it has been marketed as a veritable culinary journey around the world.

Smaller markets are installed on the place de Paris and on the Grand-Rue at the Puits-Rouge. A new addition this year is a market on the freshly renovated place du Théâtre, which will house stalls selling crafts and × regional produce.

22-30 December Rotondes, Luxembourg-Bonnevoie ↳ www.rotondes.lu

Christmas markets 2 3 November to 24 December (Knuedler on Ice until 6 January 2019) Luxembourg City ↳ www.winterlights.lu

Photo → VDL/David Laurent, Illustrations → Jan Hanrion (Maison Moderne)

NOVEMBER/DECEMBER 2018

provides a magical time for children, as well as adults, as the capital is swathed in warm light and hisses to the sound of skates swishing over ice and sausages sizzling on the grill. What used to be a small and intimate Christmas market on the place d’Armes, complete with live music performances mist evenings, has now spread across the boulevard Roosevelt to the place de la Constitution and over the rue Chimay onto the place Guillaume II. It is there that the temporary Knuedler on Ice skating rink is the centrepiece.

An 800-square-metre partly covered rink, it attracts families and courting teens, but is essentially a paradise for young kids--there are even toy animal sleds for those not yet confident enough to brave a solo outing on skates.

City

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Index

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A

F

L

NOVEMBER/DECEMBER 2018

Kyle Acierno

54

Femmes Développement

20

Label R

Tessy Antony

52

Noel Fessey

38

Eva Lagunas

Jean Asselborn

42

R 72 9

Jean Ries Frédéric Rombaut

Laurent Fessmann

66

Adrienne Lentz

46

Rotondes

Association of the Luxembourg

Fondatioun Kriibskrank Kanner

20

Lëtzebuerger Filmpräis

20

Marita Ruiter

Fund Industry

Fernand Fox

46

Jeanne Lindegaard

Tor Fyksen

54

Mathias Link

54

Prince Louis

52

20, 63, 66

Australian Stock Exchange

54

B

Galerie Clairefontaine

46

Baker McKenzie

66

Robert Garcia

80

François Bausch

3, 42

Camille Gira

3

Bazar International de Luxembourg 18

Google 54

Cecile Bens

Pierre Gramegna

30

Green Party

42

Jérôme Guillotin

46

76

Xavier Bettel

16, 42

Robert Bodja

15

Andy Bowyer

54

Félix Braz

3

British Immigrants Living in Luxembourg (Brill)

20

Keith Burman

63

46

Cinéast 20 Sven Clement

3, 42

CSV

3, 42

Carole Dieschbourg

96

18

20 30, 42

66

Kleos 54 KPMG 66

E

Serge Krancenblum

EQT 66 Jean-Marie Ernzer

46

European Fund Administration

38

European Fund and Asset Management Association

66

European Investment Bank

54

European Space Agency

54

EY 66

20

Luxembourg Financial Sector Supervisory Commission (CSSF) 63, 64 Luxembourg School of Finance

30

Luxembourg Space Agency

54

Luxembourg Space Fund

54

Luxembourg Space Tech Angels

54

M

72

46

S Bardad Sambou

12

Jang Schiltz

30

Étienne Schneider

42, 54

Oriane Schoonbroodt

72

Seraphim Capital

54

SES 54 Amy Sinner-Park

16

SOS Détresse

11

Spaceresources.lu 54 Spire 54 St. George’s International School

20, 52

State Street

12, 66

Statec 66 Storm Women’s Tattoo Convention 76

Mad About Peru

96

Management Plus

63

Steph Meyers

80

Miami University

20

Modu Shop

16 20

T Fabrice Testa

54

Théâtres de la Ville de Luxembourg 102 Claude Turmes

3

Mosconi 98 Ilario Mosconi

98

U University of Luxembourg

N

K Alain Kinsch

Gentleman’s Ride

International School (EIMLB)

3, 42 3

30

Luxembourg Distinguished

Mondorf-les-Bains

J Jean-Claude Juncker

DP 42 Mark Dunstan

80

Ispace 54

Japanese Embassy

D Déi Gréng

I Love Milk

for Risk Management (Alrim)

Luxko 16

I

C Jules Christophory

H Marc Hauser

3, 42

Luxembourg Association

Bacchus 96

80, 102

100

LSAP

G

8 54

Nasa 54 National Credit and Investment

V

Institution (SNCI)

54

Vice Impact

Luc Neuberg

30

Ville de Luxembourg Virgin Galactic

O Onesto 96 Björn Ottersten

9

P Seungeun Park

16

Scylla Pierce

76

Pirate Party Peter Platzer Preqin Professors Without Borders

3, 42 54 63, 66 52

9

52 102 8

W Serge Wilmes

42

Marc Wilwert

46

Claude Wiseler

42

Simon “Pete” Worden

54

Z Marco Zwick

64

Iwwerall Iwwerallënnerwee ënnerwee

Autocars AutocarsEmile Emile Frisch Frisch Tél. (+352) Tél. (+352)49 49 61 61 51-1 51-1 www.emile-frisch.lu www.emile-frisch.lu info info@@emile-frisch.lu emile-frisch.lu

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Auntie Eleanor

NOVEMBER/DECEMBER 2018

What’s so “Great” about nation branding?

This month, Delano’s advice columnist answers reader questions on building scams, tiny houses and the spirit of Christmas.

Dear Auntie Eleanor, I think we’ve been scammed by builders that we hired to renovate our home. We paid quite a bit upfront and things started off well. But suddenly, their scaffolding, supplies and tools disappeared, leaving the project rather unfinished.

In fact, our house is currently exposed to the elements with winter setting in. They don’t answer their phone or emails anymore. What should we do?

Benny in Bascharage

Gentle reader, I’m not a lawyer, but I believe the legal term that you’re looking for is “royally screwed”. Hopefully you’ve got a written contract and hopefully the company had proper authorisation to operate. Gather up all the documentation that you received from the firm and take pictures of the current state of affairs. Then file a complaint at your local police station and with the Luxembourg Consumer Protection Association (www.ulc.lu).

For your next contract, only agree to pay in stages, based on the progress of each project.

Dear Auntie Eleanor, I read with interest Delano’s article on the tiny house last month.

Is it only me, or is the dwelling just a glamorous caravan?

Michaela in Mamer

Gentle reader, I haven’t had the pleasure of visiting one of these tiny houses--a name that

conjures up a home for a Kylie Minogue. But the one featured in these pages in our September edition does look cosy, if hardly practical for anyone in Luxembourg with a penchant for hosting dinner parties. I mean, in polite society, we tend not to be so cramped for space that we have to sit on each other’s knees while enjoying our oyster steak and fermented vegetables (they’re all the rage, believe me). That sort of behaviour is reserved for games of charades after the port is served.

original--nobody wants that duty free perfume you bought on the flight home from a business meeting. Listen, if you want to give generously to charity this Christmas, then simply do what everyone else does and over-indulge on sake and Irish coffee at the Bazar International.

Dear Auntie Eleanor, Brexit has got me thinking. Why is Britain called Great Britain when it is relatively small for a “major” country?

Max in Munsbach

Scotland and Wales. (3) The English who settled in Brittany in the 7th century coined the term “Grande Bretagne” to differentiate their former homeland from their new home in “Lesser Britain”.

(4) Look at a 19th-century map of the world; “great” was probably a good description of the size of the British empire.

(5) Overpriced London-based branding consultants have been in business much longer than you thought. Thanks for × the grand question.

Gentle reader, there are several possible explanations: (1) “Great” is a geographic term that signifies the largest island in an archipelago; in this case, the British Isles. (2) In Roman times, “Brittania” referred to what is roughly England today, so the name “Great Britain” → was forged to include

Dear Auntie Eleanor, I have noticed a trend recently on Facebook for people to launch charity collections for their birthday instead of asking for gifts. Wouldn’t it be wonderful if we all did the same at Christmas?

Ebenezer in Oetrange

Gentle reader, are you quite mad? Do you want to create unemployment among the elves? And what would happen to those darling reindeer?

Turned into venison burgers for the hipsters, I suppose?

I will dare to be politically incorrect here and say that the spirit of Christmas is something that unites everyone, and gift giving is part and parcel (pun intended) of the festive season. You just need to make sure you give something

SEND IN YOUR QUESTION Want to know something about Luxembourg?

Contact Auntie Eleanor via AuntieEleanor@delano.lu.

Please indicate if Delano can publish your name or if you wish to remain anonymous.

Illustration → Jan Hanrion (Maison Moderne)

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Nina Ballerini