According to figures recently announced by the Association of the Luxembourg Fund Industry (ALFI) at the second day of its Spring Conference on Wednesday, the footprint of Luxembourg-domiciled UCITS has risen from 59% to 61% from 2013 to 2015, this in terms of foreign funds distributed globally.
"In the last three years Luxembourg increased its UCITS' footprint in most European markets, reaching a total of 62% of the total AuM distributed. Moreover, Luxembourg funds collected more new money than all the other individual markets in Europe," said Laurent Denayer, EY partner and leader of Global Fund Distribution.
The figures show the amount of assets in various markets globally, then breaks down those markets to the percentages of Luxembourg UCITS as well as foreign and domestic open-ended funds.
One of the charts presented portrays the volume of assets under management that has been distributed in the respective market at December 2015. Luxembourg UCITS represent 51% of funds distributed in Italy, the same percentage in the Netherlands and 50% of those distributed in Germany. 47% of the AuM in foreign open-ended funds are distributed in Hong Kong, Japan, Singapore, Korea and Taiwan. Regarding Britain, 18% of funds distributed are of Luxembourg UCITS, 22% are foreign funds, distributed AuM of funds domiciled in another country except Luxembourg funds, and 60% are domestic funds, distributed AuM of funds domiciled in the country.
"ALFI works hard to promote the Luxembourg UCITS brand globally and these figures show that this work has paid off. There is clear confidence in the UCITS brand globally based on Luxembourg's governance, approval, risk management and oversight processes, and clear regulatory and taxation framework," said Denise Voss, Chairman of ALFI.
The Undertaking for Collective Investment in Transferable Securities (UCITS) is the result of the EU's sought-after trade agreements and strive for a single market in terms of manufacturing and distribution of asset management products. The UCITS market in Luxembourg is currently the largest outside the US and enables a firm to register an investment product one time and then distribute the product across the EU.
Founded in 1988, ALFI is the representative body for the Luxembourg investment fund community. Today it represents more than 1,500 Luxembourg-domiciled investment funds, asset management companies and a wide variety of service providers including depositary banks, fund administrators, transfer agents, etc.
Luxembourg is the largest fund domicile in Europe and the Luxembourg-domiciled investment structures are distributed in over 70 countries world-wide, with a particular focus on Europe, Asia, Latin America and the Middle East.
Image by ALFI.
