Luxembourg-domiciled funds have reached a record €4 trillion of assets under management (AUM), as of 30 September 2017, according to latest figures from The Association of the Luxembourg Fund Industry (ALFI).
The figures represent a 7.9 percent increase since the start of the year, a result that has been attributed mainly to an increase it net asset sales.
According to ALFI, Luxembourg is the second largest fund domicile after the US, and it has taken just three years for funds to increase their AUM from €3 trillion to €4 trillion.
Denise Voss, chair of ALFI, said: “This increase in AUM clearly demonstrates the confidence that asset managers, fund distributors and investors have in our fund centre.”
Luxembourg distributes funds to over 70 countries and has a total of 4,110 funds domiciled in the country.
Voss said: ’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.”
She added: “This increase in AUM is good news for Luxembourg but also good news for the UCITS and alternative investment fund brands, and 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.”
