Assets In Luxembourg Funds Hit Record €4T+

Oct 31 2017 | 9:15pm ET

Assets under management in Luxembourg-domiciled funds has reached €4.037 trillion, a 7.9% increase through the first nine months of this year due mostly to increased net sales, according to new data from the Association of the Luxembourg Fund Industry (ALFI).

“Luxembourg is the second largest fund domicile after the U.S.” noted Denise Voss, chairman of the Association, said in a statement. “The growth of assets under management has been quite spectacular, with the increase from 3 to 4 trillion taking merely three years.” 

Some 4,110 Luxembourg funds are now distributed in more than 70 countries around the world, Voss added. "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.”

As well as undertaking roadshows in Europe, Asia, Australia, the USA and Latin America, ALFI initiated new initiatives this year to drive growth, including setting up a working group in Singapore to promote increased collaboration. The Association also inked an Australian exemption for financial services providers regulated by the CSSF from the obligation to hold an Australian financial services license. This latter accomplishment provides Australia’s institutional investors with easier access to Luxembourg UCITS.

“This increase in assets under management is good news for Luxembourg but also good news for the UCITS and AIF brands, and the European fund and asset management industry as a whole,” continued Voss. 

The Association of the Luxembourg Fund Industry is the official representative body for the Luxembourg investment fund industry and represents funds, custodian banks, fund managers and administrators, transfer agents, distributors, law firms, consultants and tax advisers, auditors and accounting firms, and IT services companies. It was formed in November 1988.

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