Luxembourg UCITS will hit a new milestone tomorrow, as it marks the 30th year since its implementation on 30 March 1998.
Since then, Luxembourg has become the global leader for cross-border distribution of investment funds, and as of today 65 percent of UCITS funds distributed internationally are based in Luxembourg.
Luxembourg currently has over €3500 billion assets under management in UCITS investment funds.
Fund initiators choose to set up UCITS in Luxembourg to benefit from the country’s regulatory framework, and political and economic stability.
International asset managers, notably from the US, Germany and Switzerland adopted UCITS early on, choosing Luxembourg as a hub from which to develop their EU business.
Today, asset managers from these markets are still among the top initiators of Luxembourg UCITS.
Luxembourg UCITS are held by investors resident in over 70 countries worldwide, including markets in Europe, Asia, Africa, the Middle East and Latin America.
A growing number of countries in Asia and Latin America have accepted UCITS as a stable, high quality, well-regulated investment product with significant levels of investor protection.
According to the Association of the Luxembourg Fund Industry (ALFI), the EU’s Alternative Investment Fund Managers Directive (AIFMD), which entered into force in 2013, also benefits from the Luxembourg know-how, with Luxembourg private equity and real estate investment products managed under AIFMD experiencing impressive growth rates.
Denise Voss, chairman of ALFI, commented: “Since the very beginning, ALFI has been one of the most fervent promoters of UCITS funds and we continue to promote the benefits of UCITS and alternative investment funds through our busy programme of roadshows and events that cover five continents. Wherever we go, we are pleased to see how well known and appreciated Luxembourg is in this context.”
She added: “ALFI is committed to remaining at the forefront of all changes and improvements to the European investment fund regulatory and operational framework, and to offering state-of-the-art solutions for the evolving needs of the asset management industry and investors worldwide.”
“We wish ‘long life and prosperity’ to the global brand that is UCITS which, with the increasing need for investors to take responsibility for their own long-term financial security, will have an increasingly important role to play going forward.”
