Fund Services

Our LLB Fund Services AG is one of the leading fund service providers in Liechtenstein and is an important growth driver for the LLB Group. As a member of the Executive Board of the Liechtenstein Investment Fund Association, we actively collaborate in establishing the basic business conditions for the Liechtenstein fund center. As a one-stop shop, LLB Fund Services provides a broad spectrum of services including made-to-measure funds, both in-house and for independent asset managers and other fund promoters, which it structures and administers, as well as ensuring state-of-the-art risk management.

In 2015, we continued to develop our distribution concept, positioned funds as a structuring alternative for large asset portfolios, as well as introducing a new individual pricing model and our new risk management system. In specific surveys we evaluated our clients’ requirements and continued to optimize our services.

LLB as custodian bank

At the end of 2015, the Liechtensteinische Landesbank was serving as a custodian bank for around 230 investment funds with a fund volume of CHF 10.2 billion. Measured against the number of mandates, the LLB is the market leader in Liechtenstein. As a custodian bank for external funds, the LLB has recognised expertise in the management and administration of complex fund mandates having various strategies and investment markets.

Private labelling

LLB Fund Services AG implements made-to-measure structuring solutions for independent asset managers and other fund promoters such as family offices. It has made a name for itself as a specialist particularly in the field of private labelling. Fund Services takes care of the setting up and legal engineering of the fund, as well as the administration and organisation of the custodian bank function. It is also responsible for risk management and reporting.

Private label fund solutions are very individual. Many of our client advisers can call on decades of experience to find solutions for the special requirements of each client. Fund Services offers innovative high-quality, flexible solutions for the most varied of investor needs.

Focused organisational structure

The business area has had a new organisational structure since 2015. By merging the two previous parallel companies, LLB Fondsleitung AG and LLB Fund Services AG, the Liechtensteinische Landesbank has bundled expertise and experience in fund business with professional investors. The consolidated LLB Fund Services AG now manages assets of CHF 7.3 billion and employs 22 staff. The concentration of core competences corresponds to the goals of the Focus2015 strategy of the LLB Group, which was completed in 2015.

Regulatory developments

To sharpen its competitiveness, LLB Fund Services has created a new risk management system; since the end of 2014 it now has its own Fund Risk Management & Reporting Department. This is a reflection of our belief that risk management in fund business is playing an increasingly central role and it can be structured to benefit our clients. In June 2015, LLB Fund Services received a license to operate as alternative investment fund managers.

With a share of 0.34 percent of the funds market, the Liechtenstein funds center is one of Europe’s fund boutiques offering made-to-measure fund solutions, partner-based client care, highly specialized expertise, short approval periods and EU compatibility. A new code of conduct came into effect on 1 January 2016, which complies with the new regulatory provisions of the EU (AIFM and UCITS V). Moreover, the Liechtenstein government decided on 1 September 2015 to modernise the existing, and highly successful, national fund law to further strengthen the funds center. This national law complements, at a national level, the UCITS and AIFM legislation based on European law (see chapter “Regulatory framework and developments”).