CFA Society Luxembourg

A Member of the CFA Institute Global Network of Societies

 Added Value of Interaction between Risk and Portfolio Management

​On the evening of 14 October 2015, Dr. Luc Neuberg, CEO of BCEE Asset Management, presented his views on the importance of risk management in portfolio management to CFA Society Luxembourg. He drew upon his extensive experience to passionately demonstrate the importance of this interaction and the benefits of enhanced collaboration. Moving risk management from an activity where limits are checked and reported to one where more active input can be used to shape strategy and portfolios for the future would be highly beneficial. Employing some models used in practice, he illustrated how probabilistic methods generated by risk managers could aide in asset allocation decision-making and called for more use of them, since they aide in establishing a coherent and consistent decisional framework. Reviewing the history of risk management over the past decades, he agrees the activity has come a long way, but has much further to go in order to generate synergies that will give the ultimate clients a better result. CFA Society Luxembourg was grateful to be enlightened by his discussion.

 A discussion of On- and Offshore Renminbi (RMB) Bond Markets

Wednesday, February 11, 2015

in partnership with



Approximately 35 members of the Luxembourg CFA Society gathered at the Sofitel in Kirchberg to listen to an interesting presentation on the Renminbi Bond Market by Prof. Jot Yau (Seattle University), Glenn Ko (UBS), and Bing Li (ICBC).


 Jot Yau and Glenn Ko (pictured left) began with a review of the evolution of the Offshore Renminbi Bond Market (aka Dim Sum Bonds). The market first appeared in 2007 with an issue in Hong Kong, and a total of 5 bonds were issued in 2007. The market has developed significantly since 2007, with 191 issues in 2014, with Hong Kong remaining the leading market. At the same time the market has been diversifying with issuers from industry, and governments. The tenor of the bonds remains short term, with 80% of the bonds being of 2 or 3 years. 38% of the bonds are rated with the interesting anecdote that the funding cost of the rated issues is higher than the non-rated issues. Glenn Ko put forward the theory that this is a result of the more credible issuers feeling that they don’t require a rating, so it is the lower quality issuers that have their bonds rated. Of the bond issues, 51% are listed on exchanges, with the top exchanges being Hong Kong, Singapore, Luxembourg, London and Dublin. Investors in the bonds are mostly in Asia (88%), with the remainder (12%) in Europe.

There is an increasing demand for Renminbi, which has risen to 5th in a ranking of currencies used to settle international payments from 13th one year earlier. With the tightening of the Chinese economy, the offshore market has become more attractive to Chinese issuers. In comparison to the USD bond market there is less liquidity and issuances are smaller – investors tend to buy and hold – however the presenters expect the market to continue to grow.

Bing Li then gave a presentation on the onshore Renminbi bond market, which is the third largest bond market in the world, after the US and Japan – and at USD 5.75tn much larger than the offshore market. The development of the bond market has reduced reliance on banks for financing. A series of reforms starting in 1981 have gradually opened up the bond market, by creating different markets for trading, eventually leading to opening up to individual savers (in 2002) in the OTC market. The interbank market dominates the other markets and commercial banks dominate most of the markets. Of the bonds issued, 60% of the value is rated AAA, with defaults being exceedingly rate in China. The first default occurred in 2014, when an issuer was unable to make payment, however that payment was later rectified. Yields are 3-4.5% for maturities up to 30 years. Questions from the audience followed and further illuminated the potential of this category of investments.


Written by: Iain Hackston, CFA

 10th Anniversary Celebrations




On 10 June 2013, we celebrated our 10th Anniversary during which we were honoured to welcome:
H.E. Mr Luc Frieden
Minister of Finance of the Grand Duchy of Luxembourg
Mr Frederic P. Lebel, CFA 
Board of Governors, CFA Institute
Mr Nitin Mehta, CFA 
Managing Director EMEA, CFA Institute  
Our keynote speakers presented the CFA Institute Future of Finance project, a long-term global effort to shape a trustworthy, forward-thinking financial industry that better serves society.  The project aims to provide the tools to motivate and empower the world of finance to commit to fairness, improved understanding, and personal integrity.
Together with CFA Institute, we will continue to be a driving force working with regulators and other stakeholders to shape an investment industry that serves the interests of investors and society.

 One of the first outputs from the project is the Statement of Investor Rights, a list of principles intended to help buyers of    financial service products demand the conduct they are entitled to expect from financial service providers.
The Future of Finance project is focused on six primary topics of interest for all who rely on finance:


• Financial Knowledge - Empowering investors to make better decisions
• Putting Investors First - The fiduciary duty to protect investor interests
• Regulation & Enforcement - Protecting investors and preserving capital market integrity
• Retirement Security - Sensible solutions to protect pension systems worldwide
• Safeguarding the System - Promoting stability and minimizing systemic risk
• Transparency & Fairness - Standards to promote an open and honest financial system

The cocktail recepetion was Kindly supported by J.P. Morgan Asset Management.


Read about our event in the press:

Ethik ist ein Erfolgsfaktor - Tageblatt

Une charte professionnelle d’excellence - Luxemburger Wort

Doing the right thing - Luxembourg for Finance

L'homme pressé - Journal