Luxembourg remains the leading investment fund domicile in Europe, its EUR 3,506.2 billion of assets under management as at December 31 growing by 13.29 percent during the year. The number of investment funds stood at 3,878 and at the end of November, Luxembourg accounted for no less than 42.43 percent of all net sales in Europe.
Investment funds domiciled in Luxembourg and initiated by US and UK asset managers represent the first and second-largest net assets under management, namely EUR 759.8 billion and EUR 581.5 billion, respectively, at the end of 2015.
Luxembourg is also increasingly recognised as a prominent hub for alternative investment fund managers with 211 authorised AIFMs 626 registered AIFMs and 950 limited partnerships. For real estate and private equity funds, Luxembourg is leading the way in Europe, says ALFI.
ALFI chairman Denise Voss comments: “The high net sales that we continue to see demonstrate that the Luxembourg investment fund product remains a preferred choice for the international investor. Likewise, fund promoters from 69 countries around the world continue to use Luxembourg as their platform for marketing their funds internationally.”
2015 also marked further developments with the gradually opening Chinese market, with Luxembourg remaining Europe’s leading financial centre for RMB-denominated investment funds, demonstrated by the fact that:
Chinese asset managers launched investment funds in Europe by selecting Luxembourg as the domicile for their funds, including: Harvest Fund Management, CSOP Asset Management (China Southern AM), China AMC, ARC China, Oriental Patron, Guotai Junan, BOCOM Schroders, GF International, China Universal and E-Fund.
Luxembourg UCITS received permission to participate in the Hong Kong-Shanghai Stock Connect scheme as early as 2014 and, by 2015, 81 Luxembourg-domiciled investment funds were authorised by the CSSF to take advantage of the facility (alongside QFII and RQFII) to invest in China A-shares listed on the Shanghai stock exchange.
In April 2015, the People’s Bank of China announced the granting of a RMB 50 billion RQFII quota to Luxembourg.