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€890,000 in FNR funding for investment fund research

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Published on Wednesday, 19 December 2018

The Luxembourg School of Finance has received €890,000 in funding from the Luxembourg National Research Fund (FNR) under the latter’s CORE scheme, making it one of only 36 projects selected from a total of 136 applications submitted.

The project “Performance and Risk Characteristics of the Alternative Investment Fund Industry” (ALPHA) will be led by the principal investigator, Prof. Roman Kräussl, a renowned expert in the field of alternative investments.

With Luxembourg being one of the leading investment fund centres in the world – first in Europe and second worldwide behind the US – the project will explore two interlinked research topics:

  • Performance of the alternative fund industry
  • Fund structure

The aim will be to provide a unified framework to analyse the risk and return profile of alternative investment vehicles. The project will help reveal the drivers of the Luxembourg fund ecosystem’s competitiveness and thereby help protect its position. Focus areas will be the three prominent sectors of the alternative investment fund industry: hedge funds, venture capital, and infrastructure investments.

The project will thereby deliver crucial insight into the sources of performance and the systematic risk exposure of the diverse class of alternative assets. ALPHA will be conducted in three phases, from January 2019 to the end of 2021, including two conferences.

CORE is the FNR’s central funding programme. For the 2018 call, some 136 applications were received of which 30 projects were funded, with an additional six waitlisted. Project ALPHA received the second-highest grant of the 2018 call.