PwC: Luxembourg Remains Key Player with More than 76k Global True Cross-Border Fund Registrations

The PwC Market Research Centre has just released the 24th edition of its annual Global Fund Distribution (GFD) Poster, which shows that Luxembourg remains a key player.

According to this report, Luxembourg remains the leader by far in global cross-border fund registrations with more than 76,000 registrations and a market share of 54.6%, although it experienced a minor decline (0.4%) in fund registrations in 2023.

The total number of global true cross-border funds reached 14,725 in 2023, up from 14,607 in 2022. The number of global cross-border registrations increased by 1.6% to reach 140,635 in 2023, up from 138,467 in 2022.

The GFD Poster offers a comprehensive analysis of global fund distribution trends across more than 40 countries.

The report notably found that Luxembourg and Ireland have maintained significant market share, collectively managing €7.5 trillion in UCITS assets out of the total €13.1 trillion European UCITS market in 2023. Luxembourg's domicile share for cross-border funds remained dominant at 54.6%, while Ireland stood at 36.4%.

Moreover, UCITS funds commanded the majority (91.6%) of global cross-border funds, with Luxembourg in the lead with 54.5%, followed by Ireland with a 32.0% market share.

Within non-UCITS true cross-border fund registrations, both Luxembourg and Ireland gained market share in 2023, increasing by 0.6% and 1.0% respectively.

Robert James Glover, Advisory Partner for Global Fund Distribution at PwC Luxembourg, commented: "The appetite for global diversification is undeniable. We're seeing a surge in new fund registrations, particularly in Spain, as investors seek exposure to international markets. Equity funds remain the clear favourite, holding the majority of cross-border assets. Interestingly, UCITS funds continue their reign supreme, with Luxembourg leading the pack. While Non-UCITS haven't reached critical mass yet, the rising market share in key jurisdictions such as Luxembourg and Ireland suggests a potential shift on the horizon."

"We saw a balanced increase of 0.9% in both cross-border ETFs and mutual funds, and the number of registrations grew by 1.6% compared to last year," he continued. "To that end, the distribution landscape shows remarkable resilience, with growth continuing despite the headwinds of a volatile macroeconomic environment impacting the global cross-border fund distribution."

Further information is available on the PwC GFD Poster webpage.