LG_197

Luxembourg reaches new record
in assets under management
With 3,701.076 billion euros of assets under management as at 31 December 2016, an annual
growth of 5,56%, Luxembourg reports another new record of assets under management
in investment funds domiciled in Luxembourg. Luxembourg is well-known as aUCITS
fund hub, however since the introduction of the Alternative Investment Fund Managers
Directive (AIFMD), the Association of the Luxembourg Fund Industry (ALFI) has seen
increasing interest from asset managers of Private Equity, Real Estate and Hedge funds.
“
ALFI has continued
to support the industry in
the face of all this change,
by continuing to promote
the Luxembourg domicile
and global fund hub
”
Commenting on the figures, Denise Voss,
Chairman of ALFI, said: «These record figures
and the strong net sales that we continue
to see demonstrate that Luxembourg
remains a preferred global fund hub. We
were particularly pleased to receive recognition
of this by being awarded “Best
Centre for Fund Administration” in the
Investment Week Fund Services Awards
2016».
She continued: «2016 was a challenging
year in many respects. First the UK vote to
exit the European Union (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. We have already had
confirmation that M&G, one of the largest
UK asset management firms, is seeking permission
from the Luxembourg authorities to
launch a new UCITS fund. We understand
other firms will make public similar plans in
the next weeks and months».
«We are also seeing opportunities brought
by digitalization 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».
ALFI has continued to support the industry
in the face of all this change, by continuing
to promote the Luxembourg domicile and
global fund hub. In 2017 ALFI has another
ambitious schedule of roadshows, in Asia,
Australia, the USA and Latin America. ALFI
is also setting up a working group which
will promote increased collaboration and
closer relationships between the fund
management centres in Luxembourg and
Singapore. In Australia, ALFI has successfully
negotiated an exemption, for financial
services providers regulated by the CSSF,
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LG - Avril 2017