The Association of the Luxembourg Fund Industry (ALFI) has announced that Luxembourg domiciled funds increased by almost 15% from the beginning of this year to the end of September
Chairman of ALFI, Marc Saluzzi, said a number of factors have contributed to this success, including the region’s focus on the cross-border distribution of funds, the range of investment vehicles, and the flexibility of the legal structures which suit investors and fund promoters from around the globe.
“While volatile markets assets under management may actually drop, it is encouraging that investors have confidence in investment funds generally, and that fund promoters continue to choose Luxembourg as a domicile,” he said.
He added that it is “good news” for the UCITS brand and the European funds industry as a whole, because it indicates that consumers are recognising the importance of funds to provide for their financial future.
“Largest investment fund centre”
With around 100 new fund promoters from around the world choosing Luxembourg to domicile their funds each year and with the funds being distributed to more than 70 countries, Luxembourg continues to be the largest investment fund centre in Europe and the second largest in the world since 2005, serving as a domicile for 3,900 funds.
The number of Luxembourg assets of management has been increasing steadily since September 2013, making the €2.7trn ($3.7trn, £2.2trn) mark in the first quarter of the year.
As well as continued support from the Government, he said Luxembourg has a “comprehensive market infrastructure”, specialising in distribution support, risk management and compliance, which “constitute a further strong backbone of Luxembourg’s fund centre for the future”.
He added: “Our objective now is to help make alternative investment fund managers (AIFM) an equally successful global brand in the years to come.”
