The Luxembourg Association of Funds Industry (ALFI) announces that the assets under management of funds domiciled in Luxembourg amounted to 4,037.14 billion euros at September 30, 2017. This is an increase of 7.9 % compared to the beginning of the year, mainly due to net sales.
Denise Voss, President of ALFI, explains: “This increase clearly demonstrates the confidence that asset managers, fund distributors and investors place in our management center.” She continues: “Luxembourg is the second largest home of funds after the United States. The growth in assets under management has been quite spectacular, rising from 3 to 4 trillion euros in just three years.
Luxembourg funds are now distributed in more than 70 countries around the world and we now have 4,110 funds domiciled in Luxembourg. “Not only have we seen growth in traditional UCITS domiciled in Luxembourg, but we have also seen an increase in the stock of alternative UCITS, particularly in the private equity and real estate sectors.”
In addition to undertaking an ambitious roadshow program in Europe, Asia, Australia, the United States and Latin America, ALFI has initiated new initiatives this year to contribute to this growth. In Singapore, ALFI has set up a working group to promote increased collaboration and closer relations between the two fund centers.
In Australia, ALFI has negotiated an exemption for financial service providers regulated by the CSSF from the requirement to hold an Australian license to provide financial services, allowing Australian institutional investors, including pension funds, to easier access to Luxembourg UCITS. Denise Voss concludes: “This increase in assets under management is good news for Luxembourg, but also for the UCITS and AIF brands, as well as for the entire European fund and asset management sector. It clearly shows that people recognize the growing importance of investment funds for their financial future. “