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Finesti see strong growth in 2011

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Finesti, the Luxembourg agency for European funds information, has reported strong growth in new clients and in its overall fund coverage in 2011.

During the year, the firm pursued a strategy of launching and offering new services that enable the European fund industry to comply with certain requirements of the UCITS IV Directive.

At the end of 2011, the Finesti database contained information on 39,771 share classes of investment funds, an increase of 9% compared to 2010. This growth was from both Luxembourg and non-Luxembourg domiciled funds.

There was also a corresponding increase in the number of documents in the database. The number of prospectuses, simplified prospectuses, annual reports and semi-annual reports grew by 22% to 98,279 from 80,743 in 2010. This does not include new Key Investor Information Documents, or KIIDs, which were introduced at the beginning of July 2011.

Services related to the collection and dissemination of KIIDs were launched throughout 2011. A part of the UCITS IV requirements, Key Investor Information Documents are being phased in during a transition period until 1 July 2012. Finesti KIID services allow all European-domiciled funds to comply with the obligations for distribution and publication of their KIIDs.

These services proved popular with promoters and asset managers and by the end of 2011, there were 19,622 KIIDs in the Finesti database, bringing the total number of documents to 117,901.
Notifications service proves popular

KIIDs form part of the overall package of documents that is used for the notification of cross-border marketing. The UCITS IV directive set out a new procedure for these notifications and by 1 July 2011 Finesti had a system in place that enabled its clients to send notifications under this procedure. This system is a module of its e-file.lu communication platform, which it runs with its parent company, the Luxembourg Stock Exchange. E-file.lu has been used for many years by Luxembourg funds for regulatory and statistical reporting to the authorities and Finesti is broadening the use of this platform.

By the end of the year, more than eighty companies, including fund promoters, law firms and consulting firms, had subscribed to the notification module and they had sent via e-file.lu over 1,600 notifications representing 184 funds and 5,523 share classes. Finesti is one of the few companies in Europe providing such a service and was the first mover in this field.

In conjunction with its notifications and KIID services, it also launched a range of other services focussing primarily on European fund distribution. As at 31 December 2011, Finesti was linked with sixty distribution platforms.

As a result of its expanded range of services, Finesti grew its client base to include new fund industry actors such as major European KIID factories as well as increased numbers of European fund promoters and fund groups.

Speaking about these results, Dominique Valschaerts (pictured), CEO of Finesti, says: “Our raison d’être is to provide the fund industry with a high-quality infrastructure for the collection and dissemination of data and documents. These figures demonstrate that we can offer a truly pan-European solution for fund distribution and for meeting regulatory requirements. We were the first service provider to roll out the new services that the fund industry was waiting for and we will continue to be at the forefront in the future.”

In addition to these activities, Finesti continued to be active in the European Fund Classification, or EFC. This is an initiative of EFAMA, the European Fund and Asset Management Association, and Finesti, together with Danish company FundConnect, is joint classification administrator.

During the year, Finesti was actively involved in expanding the universe of funds that are taking part in the EFC. Based on the latest classifications, there were in the EFC 5,822 funds, incorporating 14,559 share classes, managed by 69 fund groups located throughout Europe.

 

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