Industry figures published by the Association of the Luxembourg Fund Industry (Alfi) suggest assets of funds domiciled in the Grand Duchy have passed €4trn as of September, an increase of 7.9% since the start of 2017.
The latest month-end total of €4.037trn makes it the second biggest domicile by assets after the US, Alfi notes, with the growth from €3trn to €4trn taking some three years. Some 4,110 funds are domiciled in the jurisdiction, and distributed to some 70 countries, Alfi added. This year’s growth is “mainly due to net sales,” Alfi stated.
Sales also increased for alternative funds, particularly in areas such as private equity and property. Alfi has continued to push the jurisdiction through road shows in other regions including Australia, Asia, Latin America, the US and Australia – the latter has been subject to an exemption deal, which means superannuation funds can more easily access Luxembourg Ucits.
'Excellent growth opportunity'