AuM reaches record highs in Luxembourg
20 February 2017 Luxembourg
Image: Shutterstock
Luxembourg has seen a new record for assets under management in investment funds domiciled in the country, reaching €3.74 trillion.
The total, correct as of 31 December 2016, represents a 6.7 percent increase on the €3.51 trillion recorded at the end of 2015.
According to the Association of the Luxembourg Funds Industry (ALFI), the country has seen increasing interest from asset managers of private equity, real estate and hedge funds, as well as its usual interest from UCITS funds.
ALFI has road shows coming up to promote Luxembourg in Asia, Australia, the US and Latin America, and is also in the process of setting up a working group to promote increased collaboration and closer relationships between Luxembourg and Singapore.
The association has also recently gained an exemption from the Australian regulator that will allow Australian institutional investors to gain easier access to Luxembourg UCITS.
Denise Voss, chair of ALFI, said: “2016 was a challenging year in many respects. First the UK vote to exit the EU has brought uncertainty to cross-border distribution in Europe, with the possible loss of both fund and fund manager passports for UK asset managers. Second we have seen the threat of US protectionism with the election of Donald Trump.”
“However, these challenges can bring opportunities. UK asset managers, and those asset managers from other non-EU countries who currently use the UK to access investors in Europe will, once the UK leaves Europe, have to domicile their funds in an EU member country.”
“Luxembourg continues to be one of the most sought after EU countries for setting up investment funds and fund management companies and clearly this will continue throughout the Brexit process.”
She added: “We are also seeing opportunities brought by digitalisation and the growth of fintech companies. Online investment is slowly but surely continuing to grow, robo advice is developing and, as a result, we have to change our way of working, not only to facilitate these new technologies and distribution platforms but to take advantage of the efficiencies digital technologies can offer our industry.”
The total, correct as of 31 December 2016, represents a 6.7 percent increase on the €3.51 trillion recorded at the end of 2015.
According to the Association of the Luxembourg Funds Industry (ALFI), the country has seen increasing interest from asset managers of private equity, real estate and hedge funds, as well as its usual interest from UCITS funds.
ALFI has road shows coming up to promote Luxembourg in Asia, Australia, the US and Latin America, and is also in the process of setting up a working group to promote increased collaboration and closer relationships between Luxembourg and Singapore.
The association has also recently gained an exemption from the Australian regulator that will allow Australian institutional investors to gain easier access to Luxembourg UCITS.
Denise Voss, chair of ALFI, said: “2016 was a challenging year in many respects. First the UK vote to exit the EU has brought uncertainty to cross-border distribution in Europe, with the possible loss of both fund and fund manager passports for UK asset managers. Second we have seen the threat of US protectionism with the election of Donald Trump.”
“However, these challenges can bring opportunities. UK asset managers, and those asset managers from other non-EU countries who currently use the UK to access investors in Europe will, once the UK leaves Europe, have to domicile their funds in an EU member country.”
“Luxembourg continues to be one of the most sought after EU countries for setting up investment funds and fund management companies and clearly this will continue throughout the Brexit process.”
She added: “We are also seeing opportunities brought by digitalisation and the growth of fintech companies. Online investment is slowly but surely continuing to grow, robo advice is developing and, as a result, we have to change our way of working, not only to facilitate these new technologies and distribution platforms but to take advantage of the efficiencies digital technologies can offer our industry.”
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