Alfi confirms 2013 ‘good year’ for Luxembourg industry
Data from the Association of the Luxembourg Fund Industry points to net fund sales of some €193bn through the past year, or about half of all net fund sales across Europe.
The sales took net assets managed by investment funds under Luxemboug law to €2.615trn, up from €2.383trn at the end of 2012.
The number of funds and sub funds increased over the period to 3,902, representing some 13,685 fund units – up from 3,841 and 13,420 respectively at the same time one year previously.
Nearly 100 new promotors have launched products in the jurisdiction over the past year, Alfi added.
Marc Saluzzi, chairman of the Association (pictured), noted however that despite advances in 2013, the industry still faced some significant challenges this year in light of regulatory issues.
One is the AIFMD. In Luxembourg some 90 alternative investment fund managers have applied to local regulator the CSSF for approval under the new regulations. 12 are listed on the official CSSF list of AIFM, with another six receiving approval and currently finalising paperwork.
However, these are still early days for AIFMD and Saluzzi said that “we need to wait until at least the end of July 2014 to see Luxembourg’s role in this sector.”
So far some €500bn of assets are under management in alternative funds in Luxembourg, while Alfi is looking to double these within the next five years.
Fatca, the US Foreign Account Tax Compliance Act, which effectively forces US citizens to report assets of more than $50,000 in value to US tax authorities, has advanced to the stage that the relatively recently installed Luxembourg government is to sign a so-called Model 1 agreement with the US. This is expected “soon” Alfi said.
Meanwhile the proposed Financial Transaction Tax and recently agreed MiFID II could “have a severe negative impact on the European asset management industry,” Saluzzi suggested.