Assets under management by Luxembourg-domiciled funds have reached a historic level of 2 383 billion under management, representing an increase of 13.70% since the end of 2011 and a new record for the domicile, according to the Association of the Luxembourg Funds Industry (ALFI).
Net sales for 2012 amounted to $165 billion, representing the bulk of the total $441 billion in Europe with 3 841 investment funds or 13 420 fund units.
Assets under management have not only grown in Luxembourg but in Europe as a whole, partly due to increasing market values, but also thanks to significant new inflows into investment funds, says Marc Saluzzi, chairman of ALFI. We are pleased with this return of confidence in investment funds.
Saluzzi continued: The asset management and investment fund sector continues to play a key role in the European economy. It is ALFIs wish that 2013 will allow asset managers to digest the numerous recent regulations and to concentrate on operational practice to expand their business.
Saluzzi added that it is ALFIs priority to help fund managers and institutional investors to leverage the development of regulated European alternative funds, via the Alternative Investment Fund Management Directive.
ALFI actively contributed to the draft law on the implementation of the AIFMD into Luxembourg law that was submitted to Parliament in August 2012. Two major features of the draft law are likely to be of particular interest to the Alternative Investment Fund community: first, the creation of a Limited Partnership structure, which will add a flexible and secure partnership structure to Luxembourgs fund product offering; secondly, the draft Bill provides for additional clarifications regarding the taxation regime of the carried interest.
In advance of the law entering into force in Luxembourg, ALFI is now working to put in place the necessary operational requirements in compliance with these delegated regulations.
Marc Saluzzi concluded: Based on Luxembourgs current regulatory framework, expertise and the quality of our market infrastructure, Im confident that pragmatic solutions can be found in order to allow alternative asset managers to move into compliance. Details about the specific adjustments to be made will be ready in March.
(JDC)