Luxembourg domiciled funds reach all-time high
Luxembourg domiciled funds have hit an all-time record high having registered a 7.9 per cent increase since the beginning of this year, due mainly to net sales.
Denise Voss (pictured), Chairman of ALFI, says: “This increase in AUM clearly demonstrates the confidence that asset managers, fund distributors and investors have in our fund centre. Not only have we experienced growth of traditional UCITS funds domiciled in Luxembourg, we have also seen an increase in the AUM of alternative investment funds, especially in the areas of private equity and real estate.”
This increase in assets under management is good news for Luxembourg as well as the European fund and asset management industry as a whole. It clearly shows that people recognise the growing importance of investment funds in providing for their financial future.
Luxembourg has become the undisputed leader in the cross-border distribution of funds and is the second largest fund domicile after the US. Luxembourg funds are distributed in over 70 countries and 4,110 funds are domiciled in Luxembourg. For decades, Luxembourg’s fund industry has known remarkable growth. Between 2007 and 2017, assets under management have more than doubled from EUR 1.6 trillion to more than EUR4 trillion. The increase from EUR3 to EUR4 trillion took merely three years. Moreover, many fund promoters have been consolidating their activities in Luxembourg following the UK’s decision to leave the EU.