Christophe Saint-Mard, Partner for Global Fund Distribution at PwC Luxembourg; Credit: PwC Luxembourg

On Tuesday 25 March 2025, PwC announced the release of its report on cross-border registrations of investment funds, which recorded a steady growth trajectory in 2024, reaching a total of 143,244 registrations by year-end.

According to the report, since 2014, the total number of registrations has almost doubled from 83,505 to 143,244, growing at a compound annual growth rate (CAGR) of 5.5%. However, despite the steady growth in registrations, the number of cross-border funds recorded its first decline since 2014 (14,649 funds), reflecting a 0.5% drop from the previous edition of the report.

Luxembourg-domiciled cross-border investment funds continue to account for more than 52% of all registrations, but the Grand-Duchy is facing growing competition from Ireland, the second largest domicile for cross-border investment funds.

These insights come from PwC Luxembourg's 25th edition of the Global Fund Distribution (GFD) poster 2025, which highlights global fund distribution trends across more than 40 countries. The poster provides a comprehensive breakdown of cross-border fund distribution, key market developments and emerging asset classes shaping the future of fund distribution.

According to PwC, some of the key findings include:

Overall trends
- despite the increase in the number of cross-border registrations (1.9%), the number of cross-border investment funds declined for the first time since 2014 (-0.5% YoY);
- equity funds remain the leading asset class of cross-border funds, making up around 50% of the market, followed by bond funds at 28%;
- exchange traded funds (ETFs) are claiming an increasing market share, representing nearly 32% of the number of cross-border investment funds and accounting for 37% of the overall number of registrations. 

Distribution hot spots 
- new registrations grew by 1.9% in Europe. Hungary led in new registrations (423), followed by Denmark (275), Poland (255), Slovakia (251) and Luxembourg (236);
- in the Asia Pacific, Singapore (43) remains the top market in the region, whereas Japan saw the steepest decline (-62);
- the Middle East recorded the highest relative growth of the regions (28.5% YoY increase). Saudi Arabia led in new registrations (285) and the UAE maintained the highest total registrations (505);
- in the Americas, Mexico saw the highest increase in new registrations (66), while the region overall had a slight decrease in registrations during the year (-0.3%).  
 
Sustainable Finance 
- article 8 funds saw a resurgence during 2024, with inflows of €195.5 billion after two years of net outflows;
- article 9 funds had the second consecutive year of net outflows, amounting to €26.3 billion during 2024 driven by underperformance and regulatory uncertainty;
- article 6 fund inflows more than doubled their 2023 inflows, reaching €289.2 billion.

Christophe Saint-Mard, Partner for Global Fund Distribution at PwC Luxembourg, said: “The global fund distribution landscape is undergoing a structural transformation. While the number of cross-border investment funds declined for the first time since 2014, the 1.9% increase in registrations reflects a trend of fund range rationalisation, where asset managers are prioritising larger, widely distributed funds while consolidating underperforming ones.” He added: “At the same time, private markets continue their impressive growth, with European private market assets surpassing €4 trillion, fuelled by strong investor demand for alternatives. Luxembourg continues to lead in private market AUM, accounting for more than half of Europe's total. As global markets evolve, the industry is responding by consolidating, innovating and strategically positioning itself for long-term stability and growth.”

PwC Luxembourg is a professional services firm in Luxembourg with over 3,800 people employed from 90 different countries.

IK